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.
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 anException Reportto summon the board for such meetings.
Consultative/ParticipativeManagement
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
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 macro environment 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
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 organization 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.
JobAnalysis
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 samplejob descriptionsonline or offline highlighting similar jobs, analyzing the work duties, tasks, and responsibilities that need to be accomplished by the employee fillingthe 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 personalfactors, such asqualificationsandskillsrequired. 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 accurateand reliable as the other in ranking and pricing different jobs. Job evaluationformsthe basis forwageandsalarynegotiations. 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, but some may instead comprise a simple list of competencies; for instance, strategic human resource planningmethodologies 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 theirorganization.
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 aninsured'slossrecord.
The main objectivesfor 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.
E-Commerce
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 automateddata collectionsystems. 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 technologiessuch as e-mail,mobile devicessocial 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 ofdemographic 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-businessbuying 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 ecommerce 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 BankingMobile 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, 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
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 -
o viewing account balances
o viewing recent transactions
o downloading bank statements, for example in PDF format
o viewing images of paid cheques
o ordering cheque books
o download periodic account statements
o Downloading applications for M-banking, E-banking etc.
Bank customers can transact banking tasks through online banking, including -
o Funds transfers between the customer's linked accounts
o Paying third parties, including bill payments (see, e.g., BPAY) and telegraphic/wire transfers
o Investment purchase or sale
o Loan applications and transactions, such as repayments of enrollments
o 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.
Figure: Communication model
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
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. 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.
Departmentation
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:
(i) Greater specialized customer service.
(ii) Where marketing channels are considerably different for various types of customers, this type of
structure is very useful.
Some disadvantages of this type are:
(iii) May not be enough work for certain types of customers. Hence, under employment of facilities and
manpower specialized in terms of customer groups.
(iv) Problems of co-ordination might pose difficulties.
(v) Unequal development of customer groups.
Centralization
Centralization, or centralization (see spelling differences), is the process by which the activities of an
organization, 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, centralization refers to the
concentration of a government's power – both geographically and politically – into a centralized government.
In neuroscience, centralization refers to the evolutionary trend of the nervous system to be partitioned into a
central nervous system and peripheral nervous system. In business studies, centralization and decentralization
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
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
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 selfcontrol.
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.
Q “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.
Q 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..."
Q.Explain the Maslow’s Need Hierarchy 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.
Q.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.
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