Organization and Management Questions and Answers

What is Management?

Management is a universal phenomenon. It is a very popular and widely used term. All organizations – business, political, cultural or social are involved in management because it is the management which helps and directs the various efforts towards a definite purpose.

According to Harold Koontz, “Management is an art of getting things done through and with the people in formally organized groups. It is an art of creating an environment in which people can perform and individuals and can co-operate towards attainment of group goals”.

According to F.W. Taylor,“Management is an art of knowing what to do, when to do and see that it is done in the best and cheapest way”.Management is a purposive activity. It is something that directs group efforts towards the attainment of certain pre – determined goals. It is the process of working with and through others to effectively achieve the goals of the organization, by efficiently using limited resources in the changing world. Of course, these goals may vary from one enterprise to another. E.g.: For one

enterprise it may be launching of new products by conducting market surveys and for other it may be profit maximization by minimizing cost. Management involves creating an internal environment: – It is the management which puts into use the various factors of production. Therefore, it is the responsibility of management to create such conditions which are conducive to maximum efforts so that people are able to perform their task efficiently and effectively. It includes ensuring availability of raw materials, determination of wages and salaries, formulation of rules & regulations etc.

Therefore, we can say that good management includes both being effective and efficient. Being effective means doing the appropriate task i.e, fitting the square pegs in square holes and round pegs in round holes. Being efficient means doing the task correctly, at least possible cost with minimum wastage of resources.

Management can be defined in detail in following categories:

  1. Management as a Process
  2. Management as an Activity
  3. Management as a Discipline
  4. Management as a Group
  5. Management as a Science
  6. Management as an Art
  7. Management as a Profession

Discuss the core function of Management?

Core functions of Management:

Different experts have classified functions of management. According to George & Jerry, “There are four fundamental functions of management i.e. planning, organizing, actuating and controlling”.But the most widely accepted are functions of management given by KOONTZ and O’DONNEL i.e. Planning, Organizing, Staffing, Directing and Controlling.

  1. Planning

It is the basic function of management. It deals with chalking out a future course of action & deciding in advance the most appropriate course of actions for achievement of predetermined goals. According to KOONTZ, “Planning is deciding in advance – what to do, when to do & how to do. It bridges the gap from where we are & where we want to be”. A plan is a future course of actions. It is an exercise in problem solving & decision making. Planning is determination of courses of action to achieve desired goals. Thus, planning is a systematic thinking about ways & means for accomplishment of pre-determined goals. Planning is necessary to ensure proper utilization of human & non-human resources. It is all pervasive, it is an intellectual activity and it also helps in avoiding confusion, uncertainties,

risks, wastages etc.

  1. Organizing

It is the process of bringing together physical, financial and human resources and developing productive relationship amongst them for achievement of organizational goals. According to Henry Fayol, “To organize a business is to provide it with everything useful or its functioning i.e. raw material, tools, capital and personnel’s”. To organize a business


involves determining & providing human and non-human resources to the organizational structure. Organizing as a process involves:

  • Identification of activities.
  • Classification of grouping of activities.
  • Assignment of duties.
  • Delegation of authority and creation of responsibility.
  • Coordinating authority and responsibility relationships.
  1. Staffing

It is the function of manning the organization structure and keeping it manned. Staffing has assumed greater importance in the recent years due to advancement of technology, increase in size of business, complexity of human behavior etc. The main purpose o staffing is to put right man on right job i.e. square pegs in square holes and round pegs in round holes. According to Kootz & O’Donell, “Managerial function of staffing involves manning the organization structure through proper and effective selection, appraisal & development of personnel to fill the roles designed un the structure”. Staffing involves:

  • Manpower Planning (estimating man power in terms of searching, choose the person and giving the right place).
  • Recruitment, selection & placement.
  • Training & development.
  • Remuneration.
  • Performance appraisal.
  • Promotions & transfer.
  1. Directing

It is that part of managerial function which actuates the organizational methods to work efficiently for achievement of organizational purposes. It is considered life-spark of the enterprise which sets it in motion the action of people because planning, organizing and staffing are the mere preparations for doing the work. Direction is that inert-personnel aspect of management which deals directly with influencing, guiding, supervising, motivating sub-ordinate for the achievement of organizational goals. Direction has following elements:

  • Supervision
  • Motivation
  • Leadership
  • Communication

Supervision- implies overseeing the work of subordinates by their superiors. It is the act of watching & directing work & workers.

Motivation- means inspiring, stimulating or encouraging the sub-ordinates with zeal to work. Positive, negative, monetary, non-monetary incentives may be used for this purpose.

Leadership- may be defined as a process by which manager guides and influences the work of subordinates in desired direction.

Communications- is the process of passing information, experience, opinion etc from one person to another. It is a bridge of understanding.

  1. Controlling

It implies measurement of accomplishment against the standards and correction of deviation if any to ensure achievement of organizational goals. The purpose of controlling is to ensure that everything occurs in conformity with the standards. An efficient system of control helps to predict deviations before they actually occur. According to Theo Haimann, “Controlling is the process of checking whether or not proper progress is being made towards the objectives and goals and acting if necessary, to correct any deviation”. According to Koontz & O’Donell “Controlling is the measurement & correction of performance activities of subordinates in order to make sure that the enterprise objectives

and plans desired to obtain them as being accomplished”. Therefore controlling has following steps:

  1. Establishment of standard performance.
  2. Measurement of actual performance.
  3. Comparison of actual performance with the standards and finding out deviation if any.
  4. Corrective action
  5. Division of Labor
  6. Henry Fayol has stressed on the specialization of jobs.
  7. He recommended that work of all kinds must be divided & subdivided and allotted to various persons according to their expertise in a particular area.
  8. Subdivision of work makes it simpler and results in efficiency.
  9. It also helps the individual in acquiring speed, accuracy in his performance.
  10. Specialization leads to efficiency & economy in spheres of business.
  11. Unity of Direction
  12. Fayol advocates one head one plan which means that there should be one plan for a group of activities having similar objectives.
  13. Related activities should be grouped together. There should be one plan of action for them and they should be under the charge of a particular manager.
  14. According to this principle, efforts of all the members of the organization should be directed towards common goal.
  15. Without unity of direction, unity of action cannot be achieved.
  16. In fact, unity of command is not possible without unity of direction.

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.

My company uses human resource development to train employees in new skills so that we can promote individuals from within the company to positions of increased responsibility.

The resource that resides in the knowledge, skills, and motivation of people. Human resource is the least mobile of the four factors of production, and (under right conditions) it improves with age and experience, which no other resource can do. It is therefore regarded as the scarcest and most crucial productive resource that creates the largest and longest lasting advantage for an organization.

Discuss briefly the HRD evaluation steps?

HRD Evaluation Steps:

  • Analyzing the current manpower inventory
  • Making future manpower forecasts
  • Developing employment programmes
  • Design training programmes

Discuss the ethical issues involved in conducting HRD evaluation?

Ethical Issues in HR

Of all the organisational issues or problems, ethical issues are the most difficult ones to handle or deal with. Issues arise in employment,

remuneration and benefits, industrial relations and health and safety.

Diagrammatic representation of HR Ethical Issues

Cash and Compensation Plans

There are ethical issues pertaining to the salaries, executive perquisites and the annual incentive plans etc. The HR manager is often under pressure to raise the band of base salaries. There is increased pressure upon the HR function to pay out more incentives to the top management and the justification for the same is put as the need to retain the latter. Further ethical issues crop in HR when long term compensation and incentive plans are designed in consultation with the CEO or an external consultant. While deciding upon the payout there is pressure on favouring the interests of the top management in comparison to that of other employees and stakeholders.

Race, gender and Disability

In many organisations till recently the employees were differentiated on the basis of their race, gender, origin and their disability. Not anymore ever since the evolution of laws and a regulatory framework that has standardised employee behaviours towards each other. In good organisations the only differentiating factor is performance! In addition the power of filing litigation has made put organisations on the back foot. Managers are trained for aligning behaviour and avoiding discriminatory practices.

Employment Issues

Human resource practitioners face bigger dilemmas in employee hiring. One dilemma stems from the pressure of hiring someone who has been recommended by a friend, someone from your family or a top executive.

Yet another dilemma arises when you have already hired someone and he/she is later found to have presented fake documents. Two cases may arise and both are critical. In the first case the person has been trained and the position is critical. In the second case the person has been highly appreciated for his work during his short stint or he/she has a unique blend of skills with the right kind of attitude. Both the situations are sufficiently dilemmatic to leave even a seasoned HR campaigner in a fix.

Privacy Issues

Any person working with any organisation is an individual and has a personal side to his existence which he demands should be respected and not intruded. The employee wants the organisation to protect his/her personal life. This personal life may encompass things like his religious, political and social beliefs etc. However certain situations may arise that mandate snooping behaviours on the part of the employer. For example, mail scanning is one of the activities used to track the activities of an employee who is believed to be engaged in activities that are not in the larger benefit of the organisation.

Similarly there are ethical issues in HR that pertain to health and safety, restructuring and layoffs and employee responsibilities. There is still a debate going on whether such activities are ethically permitted or not. Layoffs, for example, are no more considered as unethical as they were thought of in the past.

Discuss the ethical issues in Information Technology (IT)?

Ethical Issues in Information Technology

There are a great variety of ethical issues in I.T.:

1.Ethical dilemmas

There are various ethical dilemmas in relation to I.T. that need to be addressed. What are and are not ethical issuesin I.T.? In regard to hackers, for example, are they testing the system or performing an immoral action? Will genetic engineering improve the quality of peoples’ lives or start to destroy it? How do we recognise when an ethical dilemma exists? There are, indeed, many grey ethical areas.

2 Plagiarism :Plagiarism is where the work of others is copied, but the author presents it as his or her own work. This is a highly unethical practice, but happens quite frequently, and with all the information that is now available on the In ternet it is much easier to do and is happening more often.

3 Piracy: Piracy, the illegal copying of software, is a very serious problem, and it is estimated that approximately 50% of all programs on PCs are pirated copies. Programmers spend hours and hours designing programs, using elaborate code, and surely need to be protected. Although some might argue that some pirating at least should be  permitted as it can help to lead to a more computer literate population. But, for corporations, in particular, this is a very serious issue, and can significantly damage profit margins.

  1. Hacking: Hackers break into, or ‘hack’ into a system. Hacking can be undertaken for a variety of reasons, such as the wish to damage a system or the wish to understand how a system works, so that money can be made out of it. Alternatively, there might be a desire to alert people to the fact that a system is insecure and needs improving. Due to this some argue that there are ‘hacker ethics’. Hacking can present a moral dilemma. This is because ‘reformed hackers’ sometimes offer their expertise to help organisations protect themselves against other hackers. Hackers cannot just wander into a system, as they could into an unlocked door. Instead, it requires a lot of skill. With this skill hackers can demonstrate that a system is insecure and needs improving. In this way, it could be argued that hackers play a valuable role. Many argue that hacking might lead to some improvements, but that it causes such a lot of disruption that it is not worth it in the long-run.

5: Computer crime Many different computer crimes are committed, which clearly poses ethical questions for society. Various illegal acts are performed on computers, such as fraud and embezzlement. This includes, for example, using imaging and desktop publishing to create, copy or alter official documents and graphic images. There are also various ethical dilemmas, such as whether copying such files is as bad as stealing something.

6 Viruses: Clearly writing and spreading virus programs are unethical acts; they have very serious consequences, and cause systems to crash and organisations to cease operating for certain periods. One of the most concerning consequences of such actions is when viruses interrupt the smooth functioning of an organisation such as a hospital, which could in extreme cases even cause people to die. Logic bombs are also sometimes planted. There is obviously a lot of anti-virus software on the market now though that helps to deal with this ever-growing problem. Software Development 2010

7 Ergonomics/health issuesThere are many ergonomic/health issues related to I.T. Responsible/ethically-minded employers will, hopefully, give due consideration to this, as indeed should all employers. This includes issues such as the importance of taking adequate breaks from using the computer and ensuring that the screens comply with the regulations. Also, ensuring that the positioning of the chair and the computer is appropriate for the user and providing foot rests, when required. Some organisations will give special advice to their employees on these matters. When I worked at Clifford Chance, an international law company, for example, they had specialised staff who would come round to each employee individually, and discuss their ergonomic needs, if the employee requested this. Having enough light and having plants in the room can also be important factors. Without such ethical/moral awareness and taking the necessary action, many workers will suffer health problems directly from I.T., such as back problems, eyestrain and eye infections and repetitive strain injury (RSI).

8 Job displacement/work pressures imposed on computer professionals Computers are changing the face of the work scene. For some people, their jobs are becoming redundant or they have to play quite different roles, and others are suffering increasing levels of stress from work pressures. Others are, obviously, reaping the benefits of having more rewarding jobs, and there is certainly more emphasis on knowledge, information and I.T. skills than ever before. However, this all clearly poses various ethical issues. Should those that lose their jobs be compensated? How can the pressure be eased on those that are suffering stress? Is it acceptable for computer programmers to be made redundant ‘on the spot’ etc? There are many ethical issues that need to be addressed here.

9.Digital divide:The digital divide poses a serious problem today. A new breed of haves’ and ‘have nots’ are being created, between those that have access and can use a computer and the Internet, and those that do not have such access. There are clearly serious ethical implications here. Those that do not have such access may well be discriminated against, feel ‘socially excluded’ and miss out on many life opportunities.

10.Gender:There are also ethical issues in regard to gender and computers, given the fact that females are often discriminated against in various ways in this new I.T. age. The number of females in computing academia is low. Furthermore, when females do work closely with computers, it is often in the lower level of work.Also, computer screens and layouts are frequently designed and programmed by men, and they might not be ideally suited to women, which could affect the quality of the work that women produce. Men tend to obtain the better quality I.T. jobs, earn more money, and make far more of the important decisions in relation to I.T. Basically, men are driving the I.T. age forward, whereas females are playing more passive roles, confined to working with the systems that men have already created, but which might not be ideally suited to them. These are all ethical issues that people should be made more aware of, and efforts need to be made to try to remedy the situation. Software Development 2010

11.Nanotechnology:Nanotechnology presents a new set of ethical dilemmas. Nanotechnology could help humankind and help to provide adequate food and shelter. On the other hand, it could be very dangerous. There are also various environmental issues to consider, such as the effectthat nanomaterials have on living systems. There is a relatively low investment in environmental nanotechnology, which must surely give us cause for concern. These are all very serious ethical issues that need to be confronted sooner rather than later. If it appears to be the case that advanced aspects of I.T. are seriously threatening our way of life, then something surely needs to be done about it as soon as possible.

  1. Expert systems: Expert systems are a body of information in a specific field that is held in an electronic format, such as a ‘doctor expert system’, that houses detailed medical information on a database. Various questions can be posed in regard to expert systems, such as what is the basis of ownership? Is it the different elements that comprise the total system or the total package? These issues are related to intellectual property rights and the moral aspects in regard to this. There are also wider ethical issues in regard to expert systems that need to be explored. In regard to a ‘doctor expert system’, for example, such a system can provide accurate information, but the face-to-face contact is missing. Such face-to-face contact might prove to be essential in order to ensure that the right diagnosis is made, and it is possible that some individuals could even die as a result of a wrong diagnosis given through this lack of face-to-face contact. In other ways expert systems could help to save lives. The patient might, for example, be given a speedier response. All these ethical issues need to be considered further.
  2. Genetic engineering and the patenting of life-forms Many ethical issues are raised in regard to genetic engineering and the patenting of life forms. Is such behaviour morally acceptable? Such debates can sit alongside debates on subjects such as euthanasia and abortion.
  3. Netiquette: There are also ethical/moral codes that should be adhered to, in the use of networks and email correspondence. As already indicated, the setting up of such codes has become necessary as people have not always addressed each other in an appropriate manner through this means of communication, and in this way they have behaved unethically. For example, not wasting peoples’ time and not taking up network storage with large files. Furthermore, not looking at other peoples’ files or using other systems without permission and not using capital letters, as this denotes shouting (unless one does actually want to shout at someone through email!). Also, people that become too obnoxious can be bannedor ignored. A ‘kill file’ can be set-up, which will automatically, erases messages from that person.

15 Intellectual property rights: the moral rights There are moral rights embedded within much intellectual property rights legislation, agreements and directives, for the benefit of creators of works and copyright holders. Furthermore, there are penalties for those that violate such legislation, (such as violating copyright legislation), although this can sometimes be difficult to enforce in practice. The legislation, though, is often complex and difficult to understand, which means that some creators of works do not obtain the moral rights that they are entitled to. However, sometimes, moral rights are actually excluded from agreements.

What is meant by mobile banking? State its merits & demerits?

Mobile Banking

Mobile banking (also known as M-Banking, mbanking) is a term used for performing balance checks, account transactions, payments, credit applications and other banking transactions through a mobile device such as a mobile phone or Personal Digital Assistant (PDA). Mobile banking and Mobile payments are often, incorrectly, used interchangeably. The two terms are differentiated by their service provider-to-consumer relationship; financial institution-to-consumer versus commercial institution-to-consumer for mobile banking and payments, respectively. Mobile Banking involves using mobile devices gain to access financial services. Mobile payments on the other hand may be defined as the use of mobile devices to pay for goods or services either at the point of purchase or remotely. Bill payment is not considered a form of mobile payment because it does not occur in real time.

The following services are provided by a bank to its customers through mobile banking:

  1. Pull services
  2. Account balance inquiry
  3. Last three transactions

III. Cheque leaf status

  1. Profit/interest rate on deposit
  2. Foreign currency exchange rate
  3. Branch location/ phone number

VII. ATM booths location

VII. SMS registration information

VIII. Help list for key words to send SMS

  1. Help message format to send SMS
  2. Request services
  3. Fund transfer
  4. Mobile bill payment

III. Cheque book request

  1. Account statement print request
  2. Account statement request by courier/e-mail
  3. Execution services:
  4. Stop payment
  5. Stopped cheque leaf reactivation

III. PIN change

  1. Alert services
  2. Debit alert
  3. Clearing cheque return alert

III. Loan expiry

  1. Scheme deposit maturity alert

Mobile Banking-Advantage and Disadvantage.

Advantage of Mobile Banking

1:-Mobile Banking uses the network of service provider and it doesn’t need internet connection.In a developing countries like India where their is no internet connection in the interiors their is the presence of mobile connectivity.

2:-Mobile Banking is available round the clock 24/7/365 and is easy and Convenient mode for many Mobile users in the rural areas.

3:-Mobile Banking is said to be more secured and risk free than online/internet Banking.

4:-With the help of Mobile Banking you can pay you bills,transfer funds,check account balance,review your recent transaction,block your ATM card etc.

5:-Mobile Banking is cost effective and Banks offer this service at very low cost to the customers.

Disadvantage of Mobile Banking.

1:-Though the security threat is less than Internet Banking, Mobile Banking has to security issues.One of the great threat to Mobile Banking is “Smishing” which is similar to “phishing”..In “Smishing” users receives fake message asking for their Bank details.Many users have fallen to this trap.

2:-Mobile Banking is not available on all mobile phone.Some time it requires you to install apps on your phone to use the Mobile Banking feature which is available on high end smartphone.If you don’t have a smartphone than the use of Mobile Banking becomes limited. Transaction like transfer of funds are only available on high end phones.

3:-Regular use of Mobile Banking may lead to extra charges levied by the bank for providing the services.

4:-Mobile phones are limited in processing speeds,screen size and battery life.This act as a barrier in Mobile Banking.

Like all other technology Mobile Banking has got it advantage and disadvantage and its up to you how you use the technology.But their is no doubt that Mobile Banking is the future of banking.

Q: ‘Business and Government influence each other’ Discuss with example?

How Business Organizations Influences the Government

Organizations try to force the government to act in ways that benefits the business activities. Of Course for that an organization must go through in a legitimate way. But sometimes we see that organizations try to go over the line.

Any ways, these are the common methods that business organizations us to influence government policies.

·         Personal Conducts and Lobbying

The corporate executives and political leaders and government officials are in the same social class. This creates a personal relationship between both parties. Also organizations formally forms group to present its issues to government bodies.

·         Forming Trade Unions And Chamber Of Commerce

Trade unions and chamber of commerce are associations of business organizations with common interest. They work to find the common issues of organizations and present reports, holds dialogue to discuss on them with government bodies.

·         Political Action Committees

Recently in the 2012 US elections, the term “super PACs” was a common topic in many discussions. Political action committees (PACs) or are special organizations formed to solicit money and distribute to political candidates. Most times the rich executives donate money to the political candidates whose political views are similar to them.

·         Large Investment

The companies if can make a very large investment in industries or projects, them could somehow effect the government policies. We see these very often in developing countries where foreign corporate wants to invest in these countries. These works in other way around, where government tries to implement polices to attract foreign investment.

How Government Influences the Business Organizations

The government attempts to shape the business practices through both directly and indirectly implementing rules and regulations. The government most often directly influences organizations through establishing regulations, laws and rules that dictate what organizations can and cannot do.

To implement legislation, the government generally creates special agencies to monitor and control certain aspects of business activity.

For example, environment protection agency handles Central Bank, Food and Drug Administration, Labor Commission, Securities and Exchange Commission and many more. These agencies directly creates, implements laws and monitors its application in organization.

Governments sometimes take an indirect approach to shape the activities of business organizations. These are also done by implementing laws or regulations but they are not always mandatory.

For instance, the government sometimes tries to change organizations polices by their tax codes. Government could give tax incentives to companies that have an environment friendly waste management system in production factory.

Or, tax incentives could be provided to companies that has established its production facilities in a less developed region in the country. As a result, more often the businesses would probably do so. However these regulation and its implementation must be at a optimal degree.

What is Motivation? What are the primary and secondary needa?

Motivation is the word derived from the word ’motive’ which means needs, desires, wants or drives

within the individuals. It is the process of stimulating people to actions to accomplish the goals. In

the work goal context the psychological factors stimulating the people’s behaviour can be –

  • desire for money
  • success
  • recognition
  • job-satisfaction
  • team work, etc

One of the most important functions of management is to create willingness amongst the employees

to perform in the best of their abilities. Therefore the role of a leader is to arouse interest in

performance of employees in their jobs. The process of motivation consists of three stages:-

  1. A felt need or drive
  2. A stimulus in which needs have to be aroused
  3. When needs are satisfied, the satisfaction or accomplishment of goals.

Therefore, we can say that motivation is a psychological phenomenon which means needs and

wants of the individuals have to be tackled by framing an incentive plan.


The first stage in Abraham Maslow’s hierarchy of needs is, of course, the very basic needs that human beings require everyday: food, clothing and shelter. These daily needs of humans are called primary or physiological needs, and consist of the physical requirements for the human body to work properly, including air, water and sleep. To eat, have clothes on, and live somewhere are likewise fundamental needs of human beings, necessary for their survival. These things people need constantly in order to keep alive. Hence, human beings need to meet their primary needs always, no matter how much they had met these basic needs previously, unlike the secondary set of human needs in the hierarchy of needs by Maslow.Safety includes comfort and peace of mind.


Secondary needs are the higher needs of individuals that they desire strongly only as primary needs are relatively satisfied. While primary needs are constant, human beings graduate through their secondary needs.  Secondary needs consist of four human needs, each of which people transcend after having satisfied it, and hence move further up the triangle of human needs.

Maslow’s Hierarchy of Needs Theory

Abraham Maslow is well renowned for proposing the Hierarchy of Needs Theory in 1943. This theory is a classical depiction of human motivation. This theory is based on the assumption that there is a hierarchy of five needs within each individual. The urgency of these needs varies. These five needs are as follows-

  1. Physiological needs- These are the basic needs of air, water, food, clothing and shelter. In other words, physiological needs are the needs for basic amenities of life.
  2. Safety needs- Safety needs include physical, environmental and emotional safety and protection. For instance- Job

security, financial security, protection from animals, family security, health security, etc.

  1. Social needs- Social needs include the need for love, affection, care, belongingness, and friendship.
  2. Esteem needs- Esteem needs are of two types: internal esteem needs (self- respect, confidence, competence, achievement and freedom) and external esteem needs (recognition, power, status, attention and admiration).
  3. Self-actualization need- This include the urge to become what you are capable of becoming / what you have the potential to become. It includes the need for growth and selfcontentment. It also includes desire for gaining more knowledge, social- service, creativity and being aesthetic. The self- actualization needs are never fully satiable. As an individual grows psychologically, opportunities keep cropping up to continue growing. According to Maslow, individuals are motivated by unsatisfied needs. As each of these needs is significantly satisfied, it drives and forces the next need to emerge. Maslow grouped the five needs into two categories – Higher-order needs and Lower-order needs. The physiological and the safety needs constituted the lower-order needs. These lower-order needs are mainly satisfied externally. The social, esteem, and self-actualization needs constituted the higher-order needs.These higher-order needs are generally satisfied internally, i.e., within an individual. Thus, we can conclude that during boom period, the employees lower-order needs are significantly met.

Q: Discuss the relationship between motivation and job satisfaction?

Relationships between employee motivation and job satisfaction The basis upon which relationships between employee motivation and job satisfaction and corporate culture are observed is provided by the notion that people’s perceptions and behavior in the workplace are driven by a set of personal, innate needs (Maslow, 1968), and by their perceptions of numerous job-related and organisation-related aspects (Du Toit, 1990; Gouws, 1995; Rothmann & Coetzer, 2002). From Vroom’s (1964) expectancy theory perspective, people’s motivational needs may be transformed into expectancies which drive behaviour at work, if the behaviour is believed to lead to a certain outcome, and that particular outcome is considered desirable. Observation of relationships between employee motivation and job satisfaction in the workplace specifically is important, since several aspects of the work environment serve as powerful motivators to employee performance (Herzberg, 1966), and performance is inextricably linked to the success or failure of the organisation. Agreement on several of the major research findings, which are discussed below, exists between researchers. This is indicative of the availability of solid empirical research evidence that organisational practice may be informed by. The aspects affecting people’s motivation at work may be grouped into different dimensions, for example, their energy and dynamism, their synergy with the work environment, as well as their intrinsic and extrinsic motives. These dimensions cover, and are based on, the well-researched theoretical dimensions of employee motivation, which were discussed in Chapter 2. For example, certain needs or motives experienced by employees are indicative of their energy and dynamism while at work, such as their need for achievement and power, their level of activity under pressure, and the extent to which they are motivated by a competitive environment. imilarly, several employee needs and motives portray the nature and level of synergy or harmony between their motivation profiles and their work environments. These include, for example, the extent to which people are motivated by opportunities for interaction at work, by praise and tangible recognition, by the synergy between their own and the company’s values and principles, by their need for job security, and by their need for opportunities for continual personal growth and development. Employees’ intrinsic motivation dimension is reflected by aspects 77 such as their need for meaningful and stimulating work, for flexible structures and procedures surrounding their tasks, and for an adequate level of autonomy in their jobs. The extrinsic dimension of employees’ motivation profiles is represented by aspects such as their need for financial reward, positive promotion prospects, and position and status in the firm. A number of studies have shown that the extent to which people are motivated by challenging tasks (Du Plessis, 2003; Maslow, 1968; Rothmann & Coetzer, 2002; Stinson & Johnson, 1977) and by the sense that their abilities are being stretched, directly impact on the job satisfaction they experience. According to goal-setting theory, people are motivated by their internal intentions, objectives and goals (Spector, 2003). In a study aimed at assessing the effect of perceived quality of work life on job satisfaction, Coster (1992), for example, found a positive correlation between goal involvement inthe execution of tasks and job satisfaction. Corroborating results came from the work of Bellenger atal. (1984) and Strydom and Meyer (2002), who rated the experience of success through goal attainment as the most important source of job satisfaction. Although the sample in the latter study consisted of only 29 middle-level managers, support for its findings was provided by the former study, where the sample was considerably larger and more representative of a broader spectrum of employee categories. These results are easily explained by the significant contribution that success and achievement make towards a person’s self-esteem Beach,1980), and which also reinforce his or her sense of making a positive contribution towards the organisation. People with a need for achievement and who experience success in this regard acquire a stronger belief

and confidence in themselves, which encourages them to contribute towards the goals and objectives of the organisation. A need for achievement is often linked to a need for power in the workplace. Many employees are motivated by opportunities for exercising authority, taking responsibility, negotiating, and being in a position to influence others. This follows from the thinking of theorists like McClelland (1987), who postulated through the theory of learned needs that achievement-oriented people tend to be driven by the need for power more than others. A relationship between this motivational 78 dimension and job satisfaction has been shown by authors such as Becherer, Morgan and Richard (1982), who demonstrated

that the stronger the experience of responsibility, or the ability to control and influence others, and therefore power, was in the workplace, the higher the level of job satisfaction tended to be. Similar findings were produced by Coster (1992), and by Hoole and Vermeulen (2003), who found that the authority to take action and to exercise the accompanying responsibility, resulted in enhanced job satisfaction. Together these findings lend credence to the concept that power is a significant predictor of job satisfaction in those workers who are motivated by it. Certain needs or motives on the part of

employees determine the level of synergy between their motivational drive system and the characteristics of their work environment. From the work of Cohen-Rosenthal and Cairnes (1991), Hoole and Vermeulen (2003), Strydom and Meyer (2002), Van Vuuren (1990) and Visser et al. (1997) it was deduced that many employees experience job satisfaction because their need for interaction with others at work is being satisfied to some extent. Hoole and Vermeulen (2003) found, for example, that pilots who enjoyed more social interaction with colleagues, staff and clients experienced significantly higher levels of job satisfaction than those who did not have much social contact with others at work. Social relations with clients and subordinates were also found to elevate the job satisfaction of a small group of managers from a variety of industries (Strydom & Meyer, 2002). An impressive finding in this regard was that, next to the experience of success, the affiliation motive was found tobe a significant contributor towards job satisfaction. This result came from a large study (Visser et al., 1997) that measured several dimensions of job satisfaction in the workplace. The needstheories (Alderfer, 1969; Herzberg, 1966; Maslow, 1968; Mc Gregor, 1960) emphasise that people need and appreciate the support they receive from those they share their work environment with, and that this support and interaction make them feel much happier at work. Once their more basic needs have been met, employees are often driven more strongly by egostical needs (Maslow, 1968). Bellenger et al. (1984) and Guppy and Rick (1996) explored people’s need for praise and other outward signs of recognition 79 for their achievements. In their investigation of characteristics of the work environment that may potentially impact on job satisfaction, they concluded that recognition of performance is a significant predictor of job satisfaction. Employees experience their jobs as far more pleasant and rewarding when they receive appropriate recognition for their accomplishments (Beach, 1980; Van Vuuren, 1990). The personal values people hold, compel many employees to uphold their ideals and conform to high ethical and quality standards, even in the workplace. Hoole and Vermeulen (2003) found that having to compromise these principles at work, for example by not adhering to adequate safety standards, or producing work of inferior quality, diminishes the satisfaction experience of such employees. Viswesvaran and Deshpande (1996) and Deshpande (1996) concurred with this notion by showing that an instrumental climate,i.e. where people protected their own interests at the expense of their personal principles, had a significantly negative effect on job satisfaction. The need for security is one of the most basic needs, according to Alderfer’s (1969), Maslow’s (1968), and McGregor’s (1960) theories. According to Davy, Kinicki and Scheck (1997) job security refers to one’s expectations about continuity in a job situation, and extends to concern over loss of desirable job features such as promotion opportunities and working conditions. The extent to which people are motivated by contextual factors, such as pleasant working conditions and job security has a bearing on their job satisfaction. This was found by authors such as Cohen-Rosenthal and Cairnes (1991), Davy et al. (1997), Hoole and Vermeulen (2003), and Ritter and Anker (2002), who emphasised that job security is an important predictor of job satisfaction. Moon (2000) also posited a relationship between these variables. Visser et al. (1997) demonstrated that a lack of job security impacts negatively on job satisfaction. Their result was based on the perceptions of a large group of marketing personnel from the South African motor manufacturing industry, who linked their job security fears to a number of external issues primarily, notably the prevailing political situation in the country and the related future of the motor manufacturing industry. A number of internal practices were also linked to their concerns, for example, appointments made from outside 80 autonomy a person experiences at work and his or her level of job satisfaction (Agho, Mueller & Price, 1993; Becherer etal., 1982; Coster, 1992; Fried & Ferris, 1987; Guppy & Rick, 1996; Jernigan et al., 2002; Orpen, 1994; Stinson & Johnson, 1977; Tyagi, 1985; Weaver, 1988). Interesting auxiliary findings included that compromised satisfaction with aspects relating to work autonomy exerted a significant impact on an employee’s alienative commitment (or intention to withdraw support from the organisation) towards the organisation (Jernigan et al., 2002). An employee’s perceived control over his or her own work was also found to moderate the relationship between the levels of motivation and job satisfaction experienced (Orpen, 1994). The literature showed that the nature of the relationship between motivation and job satisfaction is determined to a large extent by people’s perceptions of the amount of control they have over their own work. Together the results of the mentioned studies allow adequate generalisability, as the samples were generally large, and represented a multitude of occupations, industries and respondent demographics. The extrinsic dimension of employee motivation is concerned with the premium placed on material reward at work. Material, or extrinsic,rewards are those provided by the organisation, that are tangible and visible to others (Bellenger et al., 1984). Research on issues surrounding material reward for work performance reported a significant positive correlation between the extent to which people are motivated by financial reward and their level of satisfaction with their work (Agho et al., 1993; Bellenger et al., 1984; Hoole & Vermeulen, 2003; Mol, 1990; Strydom & Meyer, 2002; Thomson, 2003; Visser et al., 1997). However, Bellenger et al. (1984) added that pay appeared to be significantly less important to more senior employees, who valued higher-order rewards more highly, for example, recognition and respect from colleagues. As with praise and recognition, material reward represents a visible means by which an employee’s contribution towards the interests of the company, and as such also his or her value to the organisation, may be affirmed. For many, it also represents affirmation of their self-worth, and successful pursuit of their self-actualisation aspirations. 83Status also represents an avenue for enhancing a sense of self-worth. Hoole and Vermeulen (2003) found that the extent to which people are motivated by outward signs of position, status and due regard for rank, is positively related to their experience of job satisfaction. Jernigan et al. (2002) agreed,and added that a low level of satisfaction with an employee’s status at work is likely to lead to an increased level of alienative commitment towards the organisation. Many employees, especially highly achievement-orientated people, are strongly motivated by having encouraging promotion prospects in their jobs, as these offer opportunity for advancement in their careers and in the companies they work for (Bellenger et al., 1984; Sylvia& Sylvia, 1986; Van Deventer, 1987). In this vein, it has been shown that promising promotion prospects significantly enhance an employee’s job satisfaction (Coster, 1992; Hoole & Vermeulen, 2003) and that negative promotion practices, for example,prolonged temporary status, bring about a decrease in job satisfaction (Visser et al., 1997). With the exception of the study by Visseret al. (1997) which followed a triangular approach, the predominant research methodology employed in all of the relational studies mentioned in the previous section was quantitative correlation analysis, supported by regression analysis in the cases where any measure of predictive value in the particular relationship between employee motivation and job satisfaction was pursued. The previous section reviewed a number of selected studies on the relationship between employee motivation and job satisfaction. Several major findings that were reported on repeatedly dominate the work done in this field. Overall it appears that most employees are happy at work when theyare able to realise their occupational goals and ambitions, and when theycan take control of their work environments, and often the people in it too. By doing so, their needs for affirmation of their self-worth and value to the company, as well as their ability to control their own destiny to some extent, are satisfied. At the same time employees derive satisfaction from a sense of belonging to the community at work and sharing important values and principles with them, and from growing and developing alongside them for the betterment of 84 themselves and the organisation as a whole. Employees also need to be recognised for their achievements and contribution to the company’s prosperity, and to feel secure in their jobs in order to experience job satisfaction. Fears about losing their jobs have an especially adverse effect on their satisfaction with their work situation. For many employees it is also important to be able to uphold their personal principles and values at work. Employees are intrinsically motivated by stimulating job content and the autonomy to organise it as they see fit. Job satisfaction follows when these matters meet employees’ expectations. A number of extrinsic motives such as financial reward, status and career advancement also contribute towards an employee’s job satisfaction. From a certain perspective it is believed that these represent nothing more than visible, and often tangible, evidence of an employee’s self-worth and value, and his or her ability to earn well. In other words, a substantial relationship is believed to exist between a worker’s need for extrinsic modes of reward and the need for affirmation of achievement and power, which is often expressed more subtly.

Q:To what extent and how is MONEY an effective motivator in an organization?


Best Answer:  Money is the prime and end target for any professional in an organization. Many people says they do not work for money. For most of the people says so – its a lie. Everyone works in an professional organization are working for money. Otherwise they would have been working in charitable or non-profit organization. There are other aims too like Respect, Accomplishment, Authority etc. however all comes after money.
Now for motivation money is not a good one. Whenever there is a award given in form of MONEY the person may feel motivated, but for one or two days only. With the awarded money he/she would buy something. As soon the thing becomes old the effect of money as motivator vanishes.
If the money is awarded in continuous basis like monthly increment in allowances, the motivation effect remains alive for few months. As soon as he/she gets use to that money the effect of motivation vanishes.
For motivation best and longest lasting award is “Giving importance” and “Publicly appreciation”.
All the good employees loves to work, otherwise he would not have been chosen for award. I personally like to award him the most prestigious project responsibility with end to end authority. All the employees like to have some authority for himself.
My second award for motivation is awarding the person in a public gathering like weekly floor meet or monthly performance meet. Here i use the Kenneth Blanchard way very much – “Reprimand in private, appreciate in public”.

Q: What is Strategy:


 1.A method or plan chosen to bring about a desired future, such as achievement of a goal or solution to a problem.

2.The art and science of planning and marshalling resources for their most efficient and effective use. The term is derived from the Greek word for generalship or leading an army. See also tactics.

The company defined a new strategy where it would reduce the price of its products that had been in market for more than 90 days to reduce their inventory.

The intelligent young woman’s strategy was simple and concise; she would devise a plan to make money and then implement that plan over the course of the next month.

Q:State the nature of Strategy?

Nature of strategy

In 1985, Professor Ellen Earle-Chaffee summarized what she thought were the main elements of strategic management theory where consensus generally existed as of the 1970s, writing that strategic management:

  • Involves adapting the organization to its business environment;
  • Is fluid and complex. Change creates novel combinations of circumstances requiring unstructured non-repetitive responses;
  • Affects the entire organization by providing direction;
  • Involves both strategy formulation processes and also implementation of the content of the strategy;
  • May be planned (intended) and unplanned (emergent);
  • Is done at several levels: overall corporate strategy, and individual business strategies; and
  • Involves both conceptual and analytical thought processes.

Chaffee further wrote that research up to that point covered three models of strategy, which were not mutually exclusive:

  1. Linear strategy: A planned determination of goals, initiatives, and allocation of resources, along the lines of the Chandler definition above. This is most consistent with strategic planning approaches and may have a long planning horizon. The strategist “deals with” the environment but it is not the central concern.
  2. Adaptive strategy: In this model, the organization’s goals and activities are primarily concerned with adaptation to the environment, analogous to a biological organism. The need for continuous adaption reduces or eliminates the planning window. There is more focus on means (resource mobilization to address the environment) rather than ends (goals). Strategy is less centralized than in the linear model.
  3. Interpretive strategy: A more recent and less developed model than the linear and adaptive models, interpretive strategy is concerned with “orienting metaphors constructed for the purpose of conceptualizing and guiding individual attitudes or organizational participants.” The aim of interpretive strategy is legitimacy or credibility in the mind of stakeholders. It places emphasis on symbols and language to influence the minds of customers, rather than the physical product of the organization.[8]

Q: What are the difference between Strategy & Policy:

Comparison Chart

Basis for Comparison Strategy Policy
Meaning Strategy is a comprehensive plan, made to accomplish the organizational goals. Policy is the guiding principle, that helps the organization to take logical decisions.
What is it? Action plan Action principle
Nature Flexible Fixed, but they allow exceptional situations
Orientation Action Decision
Formulation Top Level Management and Middle Level Management Top Level Management
Approach Extroverted Introverted

Key Differences Between Strategy and Policy

The following are the major differences between strategy and policy

  1. Strategy is the best plan opted from a number of plans, in order to achieve the organizational goals and objectives. Policy is a set of common rules and regulations, which forms as a base to take day to day decisions.
  2. Strategy is a plan of action while the policy is a principle of action.
  3. Strategies can be modified as per the situation, so they are dynamic in nature. Conversely, Policies are uniform in nature, however relaxations can be made for unexpected situations.
  4. Strategies are concentrated toward actions, whereas Policies are decision oriented.
  5. Strategies are always framed by the top management but sub strategies are formulated at the middle level. In contrast to Policy, they are, in general made by the top management.
  6. Strategies deals with external environmental factors. On the other hand, Policies are made for internal environment of business.

Q: Management is based on environment?

Environmental management system (EMS) refers to the management of an organization’s environmental programs in a comprehensive, systematic, planned and documented manner. It includes the organizational structure, planning and resources for developing, implementing and maintaining policy for environmental protection.

More formally, EMS is “a system and database which integrates procedures and processes for training of personnel, monitoring, summarizing, and reporting of specialized environmental performance information to internal and external stakeholders of a firm.”

The most widely used standard on which an EMS is based is International Organization for Standardization (ISO) 14001.[2] Alternatives include the EMAS.

An environmental management information system (EMIS) is an information technology solution for tracking environmental data for a company as part of their overall environmental management system.

An environmental management system (EMS):

  • Serves as a tool, or process, to improve environmental performance and information mainly “design, pollution control and waste minimization, training, reporting to top management, and the setting of goals”
  • Provides a systematic way of managing an organization’s environmental affairs
  • Is the aspect of the organization’s overall management structure that addresses immediate and long-term impacts of its products, services and processes on the environment. EMS assists with planning, controlling and monitoring policies in an organization.
  • Gives order and consistency for organizations to address environmental concerns through the allocation of resources, assignment of responsibility and ongoing evaluation of practices, procedures and processes
  • Creates environmental buy-in from management and employees and assigns accountability and responsibility.
  • Sets framework for training to achieve objectives and desired performance.
  • Helps understand legislative requirements to better determine a product or service’s impact, significance, priorities and objectives.
  • Focuses on continual improvement of the system and a way to implement policies and objectives to meet a desired result. This also helps with reviewing and auditing the EMS to find future opportunities.
  • Encourages contractors and suppliers to establish their own EMS.

An organization must have the ability to examine and make changes based on internal and external environmental factors that affect its performance. The use of tools to analyze these environmental factors is the key to a successful organization.

Q: Discuss the elements of internal & external environment of an organization?

If there is anything that is steadfast and unchanging, it is change itself. Change is inevitable, and organizations that don’t accept change and that make adjustments to their business model based on changes are doomed to fail. There are events or situations that occur that affect the way a business operates, in a positive or negative way. These events or situations can have either a positive or a negative impact on a business and are called ‘environmental factors.’

There are two types of environmental factors: internal environmental factors and external environmental factors. Internal environmental factors are events that occur within an organization. Generally speaking, internal environmental factors are easier to control than external environmental factors. Some examples of internal environmental factors are as follows:

  • Management changes
  • Employee morale
  • Culture changes
  • Financial changes and/or issues

External environmental factors are events that take place outside of the organization and are harder to predict and control. External environmental factors can be more dangerous for an organization given the fact they are unpredictable, hard to prepare for, and often bewildering. Some examples of external environmental factors are noted below:

  • Changes to the economy
  • Threats from competition
  • Political factors
  • Government regulations
  • The industry itself

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