DONE Paper 1 - Management Process and Perspectives

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(Q10). Explain the contribution of Peter F. Drucker in the development of

management thought.

Answer:

Business Guru Peter Drucker

Investment U E-Letter: Issue # 487

Thursday, November 17, 2005

Business Guru Peter Drucker: Three Lessons and His Contributions to the

Marketplace

by Mark Skousen, Chairman, Investment U

A giant has died. Peter Drucker , the world's #1 financial guru, passed away last

Friday at his home in California at the glorious age of 95 (in keeping with Lin

Yutang's favorite question, "What is your glorious age?").

Drucker was a genius whose ideas can help you be a better money manager,

businessman and citizen.

I met and interviewed Peter Drucker for Forbes in the early 1990s. For years, he

refused me an interview. He was known to be feisty and stubborn. Then one day,

he suddenly changed his mind.

When I arrived at his home in Claremont, CA, I was surprised by his modesty. For

a man who made millions consulting with CEOs of multinational corporations, I

was shocked to see him living in a modest and unpretentious home. He had no

secretary, and never did.

Peter Drucker could be unpredictable and cantankerous. When I asked him a

question, he said, "Who cares? Ask me a better question!" Finally, I said, "Well,

what do you want to talk about?" He then started talking about Japan, and warnedthat the Japanese were headed for trouble and a long slump because they had

become too bureaucratic and arrogant. He was right, as he was on many of his

predictions.

Investors who followed Drucker's wise advice avoided Japan as an investment

(now, Japan is making a comeback after a 15-year slump).



Below, you'll find three more bits of Peter Drucker's wisdom you can apply to your

own investing strategies today…

1. Invest Like Peter Drucker by Investing in Entrepreneurial Companies

Invest in companies that are entrepreneurial, and avoid companies that are too

bureaucratic.

Drucker, an Austrian economist, was a big believer in entrepreneurship, innovation

and capital formation. He favored companies that took big risks and spent lots of

capital on R&D. He hated companies that had nothing better to do than repurchase

their stock, or pay out big dividends.

He was born in Austria in 1909, and his roots stayed with him all his life. His

favorite economist was fellow Austrian Joseph Schumpeter, a believer inentrepreneurship and a dynamic model of capitalism ("creative destruction").

Drucker would probably love our top three candidates for the new "Benny" award -

Steve Jobs at Apple Computers; Pierre Omidyar, founder of eBay; and John

Mackey, CEO of Whole Foods Markets.

2. Spend Less, Save, and Invest More

You can never save and invest too much. Drucker disliked big spenders, heavy

borrowers and governments that couldn't balance budgets. The smart investor always lives within his means, and uses his savings productively - either in

expanding his business, or investing in other people's successful businesses (i.e.,

buying quality stocks).

He blamed Keynesian economics for an unhealthy anti-saving mythology, causing

"under-saving on a massive scale" in the West, both by individuals and

government.

Government, Drucker said, is only good at three things: Inflation, taxation andmaking war! He once bluntly told a U.S. president, "government is obese, muscle-

bound and senile." Yet he wasn't against government, per se. He wanted a strong,

healthy, vigorous government. To accomplish this goal, he recommended

privatization of many state services.



In fact, Peter Drucker and Robert Poole (founder of Reason magazine) invented the

term "privatization." Drucker was a longtime supporter of privatizing pension

plans, both by government and corporations (he preferred defined-contribution

plans like 401k's and IRA's, rather than defined-benefit plans such as Social

Security and corporate pensions).

3. Be an Optimist - Look for Bull Markets Around the World

Be an optimist. Drucker was encouraged by the collapse of the Soviet Marxist

model in the early 1990s, which helped developing countries privatize,

denationalize and open up their domestic economies to foreign capital. He

recommended investing in emerging market economies. Not surprisingly, stock

markets have boomed in Russia, Eastern Europe, Asia and Latin America.

In the U.S., he was a big supporter of tax cuts, especially tax breaks for capitalinvestment and entrepreneurship. The corporate income tax, said Drucker, is the

"most asinine of taxes" and should be abolished.

Business According to Peter Drucker: the Ideal "Social Institution"

Finally, he felt that the private sector - major corporations and nonprofit

institutions - was the only "free, non-revolutionary way" to a stable, prosperous

society. Business and private charities provided a superior alternative to socialism

and big government. According to Drucker, only business could assume the social

responsibilities such as job security, training and educational opportunities, and

social benefits such as health care, retirement, paid vacation, etc.

When he first suggested the private sector as the ideal "social institution" after

World War II, Peter Drucker was considered a renegade. (Even General Motors

thought he was nuts.) But once again, he was proven right.

Read more:

http://wiki.answers.com/Q/What_are_the_contributions_of_Peter_Drucker_to_management_thought#ixzz1frnZybux







(Q6.b) Define coordination. Explain the characteristics, types and principals of

coordination.

Answer:

Co-ordination is the unification, integration, synchronization of the efforts of groupmembers so as to provide unity of action in the pursuit of common goals. It is a

hidden force which binds all the other functions of management. According to

Mooney and Reelay, “Co-ordination is orderly arrangement of group efforts to

provide unity of action in the pursuit of common goals”. According to CharlesWorth, “Co-ordination is the integration of several parts into an orderly hole to

achieve the purpose of understanding”.

Management seeks to achieve co-ordination through its basic functions of planning,

organizing, staffing, directing and controlling. That is why, co-ordination is not aseparate function of management because achieving of harmony between

individuals efforts towards achievement of group goals is a key to success of

management. Co-ordination is the essence of management and is implicit and

inherent in all functions of management.

A manager can be compared to an orchestra conductor since both of them have to

create rhythm and unity in the activities of group members. Co-ordination is an

integral element or ingredient of all the managerial functions as discussed below: -

a. Co-ordination through Planning - Planning facilitates co-ordination byintegrating the various plans through mutual discussion, exchange of ideas.

e.g. - co-ordination between finance budget and purchases budget.

b. Co-ordination through Organizing - Mooney considers co-ordination as

the very essence of organizing. In fact when a manager groups and assigns

various activities to subordinates, and when he creates department’s co-

ordination uppermost in his mind.

c. Co-ordination through Staffing - A manager should bear in mind that the

right no. of personnel in various positions with right type of education and

skills are taken which will ensure right men on the right job.

d. Co-ordination through Directing - The purpose of giving orders,

instructions & guidance to the subordinates is served only when there is a

harmony between superiors & subordinates.

e. Co-ordination through Controlling - Manager ensures that there should be



co-ordination between actual performance & standard performance to

achieve organizational goals.

From above discussion, we can very much affirm that co-ordination is the very

much essence of management. It is required in each & every function and at each& every stage & therefore it cannot be separated.

Types of co-ordination:

The co-ordination may be divided on different bases, namely;

1. Scope – on the basis of scope or coverage, co-ordination can be.

• Internal – refers to co-ordination between the different units of an

organisation within and is achieved by integrating the goals and activities of

different departments of the enterprise.

• External – refers to co-ordination between an organisation and its external

environment comprising government, community, customers, investors,

suppliers, competitors, research institutions, etc. It requires proper match

between policies and activities of the enterprise and the outside world.

2. Flow – on the basis of flow, co-ordination can classified into:

• Vertical – implies co-ordination between different levels of the organisation

and has to ensure that all the levels in the organisation act in harmony and in

accordance with the goals and policies of the organisation. Vertical co-

ordination is assured by top management through delegation of authority.

• Horizontal or lateral – refers to co-ordination between different

departments and other units at the same level of the management hierarchy.

For instance, co-ordination between production department and marketing

department is horizontal or lateral co-ordination.

Co-ordination may also be:

3. Procedural and substantive – which according to Herbert A. Simon,

procedural co-ordination implies the specification of the organisation in itself, i.e.

the generalised description of the behaviour and relationship of the members of the

organisation. On the other hand, substantive co-ordination is concerned with the



content of the organisation’s activities. For instance, in an automobile plant an

organisation chart is an aspect of procedural co-ordination, while blueprints for the

engine block of the car being manufactured are an aspect of substantive co-

ordination.

Techniques of co-ordination:

The main techniques of effective co-ordination are as follows.

1. Sound planning – unity of purpose is the first essential condition of co-

ordination. Therefore, the goals of the organisation and the goals of its units

must be clearly defined. Planning is the ideal stage for co-ordination. Clear-

cut objectives, harmonised policies and unified procedures and rules ensure

uniformity of action.

2.

Simplified organisation – a simple and sound organisation is an importantmeans of co-ordination. The lines of authority and responsibility from top to

the bottom of the organisation structure should be clearly defined. Clear-cut

authority relationships help to reduce conflicts and to hold people

responsible. Related activities should be grouped together in one

department or unit. Too much specialisation should be avoided as it tends to

make every unit an end in itself.

3. Effective communication – open and regular communication is the key to

co-ordination. Effective interchange of opinions and information helps in

resolving differences and in creating mutual understanding. Personal and

face-to-face contacts are the most effective means of communication and co-ordination. Committees help to promote unity of purpose and uniformity of

action among different departments.

4. Effective leadership and supervision – effective leadership ensures co-

ordination both at the planning and execution stage. A good leader can

guide the activities of his subordinates in the right direction and can inspire

them to pull together for the accomplishment of common objectives. Sound

leadership can persuade subordinates to have identity of interest and to adopt

a common outlook. Personal supervision is an important method of

resolving differences of opinion.5. Chain of command – authority is the supreme co-ordinating power in an

organisation. Exercise of authority through the chain of command or

hierarchy is the traditional means of co-ordination. Co-ordination between

interdependent units can be secured by putting them under one boss.

6. Indoctrination and incentives – indoctrinating organisational members

with the goals and mission of the organisation can transform a neutral body



into a committed body. Similarly incentives may be used to create mutuality

of interest and to reduce conflicts. For instance, profit-sharing is helpful in

promoting team-spirit and co-operation between employers and workers.

7. Liaison departments – where frequent contacts between different

organisational units are necessary, liaison officers may be employed. For

instance, a liaison department may ensure that the production department is

meeting the delivery dates and specifications promised by the sales

department. Special co-ordinators may be appointed in certain cases. For

instance, a project co-ordinator is appointed to co-ordinate the activities of

various functionaries in a project which is to be completed within a specified

period of time.

8. General staff – in large organisations, a centralised pool of staff experts is

used for co-ordination. A common staff group serves as the clearing house

of information and specialised advice to all department of the enterprise.

Such general staff is very helpful in achieving inter-departmental or horizontal co-ordination. Task forces and projects teams are also useful in

co-ordination.

9. Voluntary co-ordination – when every organisational unit appreciates the

workings of related units and modifies its own functioning to suit them,

there is self-co-ordination. Self-co-ordination or voluntary co-ordination is

possible in a climate of dedication and mutual co-operation. It results from

mutual consultation and team-spirit among the members of the organisation.

However, it cannot be a substitute for the co-coordinative efforts of

managers.

Principles of co-ordination (requisites for effective co-ordination)

Mary Parker Follett has laid out four principles for effective co-ordination;

• Direct personal contact – according to this principle co-ordination is best

achieved through direct personal contact with people concerned. Direct

face-to-face communication is the most effective way to convey ideas and

information and to remove misunderstanding.

•

Early beginning – co-ordination can be achieved more easily in early stagesof planning and policy-making. Therefore, plans should be based on mutual

consultation or participation. Integration of efforts becomes more difficult

once the unco-ordinated plans are put into operation. Early co-ordination

also improves the quality of plans.

• Reciprocity – this principle states that all factors in a given situation are

interdependent and interrelated. For instance, in a group every person



influences all others and is in turn influenced by others. When people

appreciate the reciprocity of relations, they avoid unilateral action and co-

ordination becomes easier.

• Continuity – co-ordination is an on-going or never-ending process rather

than a once-for-all activity. It cannot be left to chance, but management has

to strive constantly. Sound co-ordination is not fire-fighting, i.e., resolving

conflicts as they arise.

(Q1.b) What is Communication? Discuss the barriers to effective Communication.

Answer:

Many theories have been proposed to describe, predict, and understand the behaviors and phenomena of which communication consists. When it comes to

communicating in business, we are often less interested in theory than in making

sure our communications generate the desired results. But in order to achieve

results, it can be valuable to understand what communication is and how it works.

Defining Communication

The root of the word “communication” in Latin is communicare, which means to

share, or to make common Communication is defined as the process of

understanding and sharing meaning.

At the center of our study of communication is the relationship that involves

interaction between participants. This definition serves us well with its emphasis

on the process, which we’ll examine in depth across this text, of coming to

understand and share another’s point of view effectively.

The first key word in this definition is process. A process is a dynamic activity that

is hard to describe because it changes. Imagine you are alone in your kitchen

thinking. Someone you know (say, your mother) enters the kitchen and you talk

briefly. What has changed? Now, imagine that your mother is joined by someoneelse, someone you haven’t met before—and this stranger listens intently as you

speak, almost as if you were giving a speech. What has changed? Your perspective

might change, and you might watch your words more closely. The feedback or

response from your mother and the stranger (who are, in essence, your audience)

may cause you to reevaluate what you are saying. When we interact, all these

factors—and many more—influence the process of communication.



The second key word is understanding: “To understand is to perceive, to interpret,

and to relate our perception and interpretation to what we already know.” If a

friend tells you a story about falling off a bike, what image comes to mind? Now

your friend points out the window and you see a motorcycle lying on the ground.

Understanding the words and the concepts or objects they refer to is an important

part of the communication process.

Next comes the word sharing. Sharing means doing something together with one or

more people. You may share a joint activity, as when you share in compiling a

report; or you may benefit jointly from a resource, as when you and several

coworkers share a pizza. In communication, sharing occurs when you convey

thoughts, feelings, ideas, or insights to others. You can also share with yourself (a

process called intrapersonal communication) when you bring ideas to

consciousness, ponder how you feel about something, or figure out the solution to

a problem and have a classic “Aha!” moment when something becomes clear.

Finally, meaning is what we share through communication. The word “bike”

represents both a bicycle and a short name for a motorcycle. By looking at the

context the word is used in and by asking questions, we can discover the shared

meaning of the word and understand the message.

Recognizing barriers to effective communication is a first step in improving

communication style. Do you recognize these barriers from your own personaland professional experience?

Encoding Barriers. The process of selecting and organizing symbols to

represent a message requires skill and knowledge. Obstacles listed below can

interfere with an effective message.

1. Lack of Sensitivity to Receiver. A breakdown in communication may result

when a message is not adapted to its receiver. Recognizing the receiver’s needs,

status, knowledge of the subject, and language skills assists the sender in

preparing a successful message. If a customer is angry, for example, an effective

response may be just to listen to the person vent for a while.



2. Lack of Basic Communication Skills. The receiver is less likely to

understand the message if the sender has trouble choosing the precise words

needed and arranging those words in a grammatically-correct sentence.

3. Insufficient Knowledge of the Subject. If the sender lacks specific

information about something, the receiver will likely receive an unclear or mixed

message. Have you shopped for an item such as a computer, and experienced

how some salespeople can explain complicated terms and ideas in a simple way?

Others cannot.

4. Information Overload. If you receive a message with too much information,

you may tend to put up a barrier because the amount of information is coming so

fast that you may have difficulty comfortably interpreting that information. If

you are selling an item with twenty-five terrific features, pick two or three

important features to emphasize instead of overwhelming your receiver (ho-hum)

with an information avalanche.

5. Emotional Interference. An emotional individual may not be able to

communicate well. If someone is angry, hostile, resentful, joyful, or fearful, that

person may be too preoccupied with emotions to receive the intended message.

If you don’t like someone, for example, you may have trouble “hearing” them.

Transmitting Barriers: Things that get in the way of message transmission are

sometimes called “noise.” Communication may be difficult because of noise and

some of these problems:

1. Physical Distractions. A bad cellular phone line or a noisy restaurant can

destroy communication. If an E-mail message or letter is not formatted properly,

or if it contains grammatical and spelling errors, the receiver may not be able to



concentrate on the message because the physical appearance of the letter or E-

mail is sloppy and unprofessional.

2. Conflicting Messages. Messages that cause a conflict in perception for thereceiver may result in incomplete communication. For example, if a person

constantly uses jargon or slang to communicate with someone from another

country who has never heard such expressions, mixed messages are sure to

result. Another example of conflicting messages might be if a supervisor

requests a report immediately without giving the report writer enough time to

gather the proper information. Does the report writer emphasize speed in writing

the report, or accuracy in gathering the data?

3. Channel Barriers. If the sender chooses an inappropriate channel of

communication, communication may cease. Detailed instructions presented over

the telephone, for example, may be frustrating for both communicators. If you

are on a computer technical support help line discussing a problem, it would be

helpful for you to be sitting in front of a computer, as opposed to taking notes

from the support staff and then returning to your computer station.

4. Long Communication Chain. The longer the communication chain, the

greater the chance for error. If a message is passed through too many receivers, themessage often becomes distorted. If a person starts a message at one end of a

communication chain of ten people, for example, the message that eventually

returns is usually liberally altered.

Decoding Barriers. The communication cycle may break down at the receiving

end for some of these reasons:

1. Lack of Interest. If a message reaches a reader who is not interested in the

message, the reader may read the message hurriedly or listen to the message

carelessly. Miscommunication may result in both cases.



2. Lack of Knowledge. If a receiver is unable to understand a message filled with

technical information, communication will break down. Unless a computer user

knows something about the Windows environment, for example, the user may have

difficulty organizing files if given technical instructions.

3. Lack of Communication Skills. Those who have weak reading and listening

skills make ineffective receivers. On the other hand, those who have a good

professional vocabulary and who concentrate on listening, have less trouble

hearing and interpreting good communication. Many people tune out who is

talking and mentally rehearse what they are going to say in return. We’ll see some

techniques for improving listening skills in Chapter 2.

4. Emotional Distractions. If emotions interfere with the creation and

transmission of a message, they can also disrupt reception. If you receive a report

from your supervisor regarding proposed changes in work procedures and you do

not particularly like your supervisor, you may have trouble even reading the report

objectively. You may read, not objectively, but to find fault. You may

misinterpret words and read negative impressions between the lines.

Consequently, you are likely to misunderstand part or all of the report.

5. Physical Distractions. If a receiver of a communication works in an area with

bright lights, glare on computer screens, loud noises, excessively hot or cold work

spaces, or physical ailments, that receiver will probably experience communication

breakdowns on a regular basis.

Responding Barriers — The communication cycle may be broken if feedback is

unsuccessful.

1. No Provision for Feedback. Since communication is a two-way process, the

sender must search for a means of getting a response from the receiver. If a team

leader does not permit any interruptions nor questions while discussing projects, he



may find that team members may not completely understand what they are to do.

Face-to-face oral communication is considered the best type of communication

since feedback can be both verbal and nonverbal. When two communicators are

separated, care must be taken to ask for meaningful feedback.

2. Inadequate Feedback . Delayed or judgmental feedback can interfere with

good communication. If your supervisor gives you instructions in long,

compound-complex sentences without giving you a chance to speak, you may

pretend to understand the instructions just so you can leave the stress of the

conversation. Because you may have not fully understood the intended

instructions, your performance may suffer.

(Q5.a) What is Motivation? Discuss the different theories of motivation.

Answer:

Motivation is the force that initiates, guides and maintains goal-oriented behaviors.

It is what causes us to take action, whether to grab a snack to reduce hunger or

enroll in college to earn a degree. The forces that lie beneath motivation can be

biological, social, emotional or cognitive in nature.

Researchers have developed a number of different theories to explain motivation.

Each individual theory tends to be rather limited in scope. However, by looking at

the key ideas behind each theory, you can gain a better understanding of

motivation as a whole.

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 isinstead an inborn pattern of behavior.

William James created a list of human instincts that included such things as

attachment, play, shame, anger, fear, shyness, modesty and love. The main

problem with this theory is that it did not really explain behavior, it just described

it. By the 1920s, instinct theories were pushed aside in favor of other motivational



theories, but contemporary evolutionary psychologists still study the influence of

genetics and heredity on human behavior.

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 theinternal 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 inAbraham 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.



Does money motivate people effectively? In part 1 of this series on HR theories of

motivation, we answered that question. No.

Well, if not money, how do we create an environment where people are motivated?

Check part 2. The key: create productive work relationships.

But people are different; so how do we build productive work relationships with all

types of people? In this last installment on workplace motivation, we’ll cover some

of the main theories for how various people motivate themselves.

Of the many different types of motivation theories, I would like to highlight three

that are of particular use:

1. David Merrill and Roger Reid’s work on the four personal styles

2. David McClelland’s theory of motivation involving three basic needs:

achievement, power, and affiliation

3. Fredrick Herzberg’s work on money as a demotivator at work

There are many more good motivation theories – Maslow, Myers-Briggs, etc. – but

I’ve found these three to be most useful in managing groups.

The Power of Intrinsic Motivation

The starting point for all three different types of motivation theories is that they are

built on the concept that intrinsic motivation is much stronger than extrinsic. This

bedrock fundamental is perhaps the most powerful concept to apply in your work;

see my post on top employee motivators for a more thorough review of incentive

plans.

Briefly, it means that to get great results, you need people to be intrinsically

interested in their work. Your efforts to control, set expectations, and reward

people are all methods of extrinsic motivation, which helps explain why managers

are often disappointed with employee results when relying on those motivation

tools.



So, to help you get better results, here are three methods of intrinsic motivation

that all build on that intrinsic bedrock.

Employee Motivation Theory 1: Personal Styles

In their theory on motivating different types of people, Merrill and Reid identify

four personal styles:

Style Major Drivers Prefers to

Driver Action Oriented: Focus is on present time frame, direct action.

Minimum concern for caution in relationships. Tends to reject inaction.

Control,

Tell

Expressive Intuition Oriented: Focus is on involving others, future time frame.

Minimum concern for routine. Tends to reject isolation.

Emote, Tell

Amiable Relationship Oriented: Focus is on relating, supporting; present time

frame. Minimum concern for affecting change. Tends to reject conflict.

Emote, Ask

Analytical Thinking Oriented: Focus is on cautious action, “getting it right”,

historical time frame, cautious action. Minimum concern for

relationships. Tends to reject being wrong.

Control,

Ask

* Information adapted from their book, Personal Styles & Effective Performance.

Application: To help people feel connected intrinsically with their work, structure

their work so these personal style needs are met.

Examples:

Style More Effective Less Effective



Driver • When you want to make a point, ask, as in, “What do you

think of this idea?”

• Get things done quickly that are going to be effective, even if

they aren’t perfected.

• When you want to make a

point, lecturing them, as in,

“Here’s how it is."

• Spending time in reflection

and consideration, in an

attempt to perfect.

Expressive • Make work a party while you’re getting stuff done; breathe

life into work.

• Make use of their good gut instincts.

• Spend 3 hours in a room

sequentially creating a step-

by-step checklist.

• Don’t trust them until they

can “prove it.”

Amiable • Include effectively when a group tackles a project, and not

just the “amiable” coworker; they’ll feel others’ “pain” if their

input is excluded.

• Act trustworthy, and trust them.

• Try to get results through

intimidation and application

of stress.

• Divide and conquer; use

conflict – of ideas, of

emotions – to try to get best

results

Analytical • Give them space to get grounded – to get it “right” – beforethey proceed to action.

• Assign complex problems where you need absolute

confidence in the details.

• Use conflict to try to get best results.

• Push, push, push, especially

if towards an outcome that

favors your self-interest.

• Ask them to “wing it”, to

bet the company on their

“hunch.”

Employee Motivation Theory 2: McClelland’s Theory of Motivation

Style More Effective Less Effective

Achievement

nAch

Seek: To excel; may avoid both low- and high-risks as a

result, in order to pursue meaningful success.

Work alone or with

other high



achievers

Power

nPow

Seek: Either personal or institutional power. Either way they

want to direct others, but the institutional power is in service

to the institution’s success, so those with that focus tend tomake better managers.

Direct others

Affiliation

nAff

Seek: Harmonious work relationships, to accept, to be

accepted, and to include others. They can be more comfortable

conforming to group norms.

Work in settings

with significant

personal interaction

Application: To help people connect intrinsically with their work, structure their

work so their major need is met. The “Power” need correlates to the “Driver”above; “Affiliation” to the “Amiable” above.

What’s new here is the “Achievement” need. It can cut across all the Merrill and

Reid personal motivation styles. The key here is to surround high achievers with

other high achievers. To be their best, they need to know they’re on a team capable

of pulling off a worthwhile, attainable mission.

Employee Motivation Theory 3: Money as a De-Motivator

Frederick Herzberg was a clinical psychologist and pioneer of “job enrichment.”

He proposed the Motivation-Hygiene Theory, also known as the two factor theory

of job satisfaction. According to his theory, people are influenced by two sets of

factors:

MotivatorFactors

Hygiene Factors

• Work itself

• Responsibility

• Promotion

• Pay and benefits

• Company policy and

administration



• Growth

• Achievement

• Recognition

• Relationships with co-workers

• Physical environment

• Supervision

• Status

• Job security

• Salary

Application: To create an environment where people motivate themselves, you

must adequately take care of the hygiene factors. If you don’t, demotivated

employees will likely result. The key here is that “adequate” is enough; you don’t

need an outstanding physical environment because it won’t increase employee

motivation noticeably. In sum, the “hygiene factors” have a downside if not done

well, but not much of an upside potential impact on employees, even if they’redone very well.

Then, allow the “motivator factors” to work for you – these are the factors that

have the real upside and can make a strong contribution to your results. And note,

they are almost all methods of intrinsic motivation.

The one “extrinsic” item on the list, recognition, can be made intrinsic if it’s in the

form of encouragement, rather than as a reward. For example, in Soul of a New

Machine, Tracey Kidder writes that the “reward” for successful hi tech engineers

is…the chance to tackle the next cool project! “Congratulations on the greatresults. I’m not at all surprised. Now let’s figure out how you can make that kind

of an impact again,” is more powerful than “Atta boy/girl” in whatever form,

whether bonus, plaque, employee of the month award, etc.

(Q4.a) What is staffing? Discuss the factors affecting staffing. Define Job Analysis

and Design.

Answer:

Staffing means filling and keeping filled, positions in the organisation structure.

The term Staffing in management consists of:-



1. Selecting the right person for the right post.

2. Training and development.

3. Giving proper remuneration and motivation.

4. Performance appraisal of employees.

5. Proper promotions, transfers, etc.

The internal factors affecting staffing are :-

1. Promotion policy : Staffing is affected by the promotion policy of the

organisation. If the organisation has a good promotion policy with prospects

to career growth and development, only then efficient people will be

attracted to the organisation. Internal promotions are better for lower and

middle-level jobs. This is because it increases the morale and motivation of

the staff. However, for top level jobs, the RIGHT person must be selected.

The right person may be from within the organisation, or he / she may beselected from outside.

2. Future growth plans of organisation : Staffing is also affected by the

future growth plans of the organisation. If the organisation wants to grow

and expand then it will need many talented people. In order to grow and

expand, the organisation must select experts and give them continuous

training and development.

3. Technology used : Staffing is also affected by the technology used by the

organisation. If the organisation uses modern technologies then it must have

a continuous training programme to update the technical knowledge of their

staff.4. Support from Top Mangement : Staffing is also affected by the support

from Top Management. If the top management gives full support to staffing

then the organisation can have scientific selection procedures, scientific

promotion and transfer policies, continuous training programmes, career

development programmes, etc.

5. Image of the organisation : Staffing is also affected by the image of the

organisation in the job market. If it has a good image then it will attract the

best employees and managers. An organisation earns a good image only if it

maintains good staffing policies and practices. This includes job security,training and development, promotion, good working environment, work

culture, etc.

The external factors affecting staffing are :-



1. Labour Laws : Labour Laws of the government also affect the staffing

policy of the organisation. For e.g. The organisation has to support Social

equality and upliftment policies of the government by giving job

Reservations to candidates coming from depressed classes like scheduled

castes (SC), scheduled tribes (ST), other backward classes (OBC), etc., and

even to those who are physically handicapped (PH). It is mandatory for an

organisation not to recruit children in their workforce and stop child labour.

The provisions of Minimum Wages Act guide an organisation to fix

minimum salaries of employees and stop their economic exploitation.

2. Pressure from Socio-Political Groups : Staffing is also affected by

activities of socio-political groups and parties. These groups and parties put

pressure on the organisation to grant jobs only to local people. The concept

of Sons of Soil is becoming popular in India.

3. Competition : In India, there is a huge demand for highly qualified and

experienced staff. This has resulted in competition between differentorganisations to attract and hire efficient staff. Organisations often change

their staffing policies, offer attractive salaries and other job benefits in order

to add the best minds in their workforce.

4. Educational standards : Staffing is also affected by the educational

standards of an area. If the educational standard of a place is very high then

the organisation will only select qualified and experienced staff for all job

positions. For e.g. Some I.T. companies in India, only prefer skilled

candidates with computer or I.T. Engineering degree for the post of Software

Developer.

5. Other External Factors : Staffing is also affected by other external factors

such as trade unions, social attitude towards work, etc.

Job analysis is the term used to describe the process of analyzing a job or

occupation into its various components, that is, organizational structure, work activities, and informational content . The process results in a relevant, timely and

tailored database of job-related information that can be used in a variety of ways:

to develop conventional, individualized, computer-based and/or critical incident(discussed below) education and training programs and materials; to create and

classify job titles; to write job descriptions; to prepare organization charts; to

conduct time and motion studies; to determine quality assurance standards; and to

write both knowledge-and performance-related employee evaluation measures.

Also, job analyses are basic to the preparation of such government publications as

the Occupational Information Network (O'Net), Standard Industrial Classification



(SIC), Standard Occupational Classification (SOC), Occupational Outlook

Handbook , and other informational resources describing the job situation (See

Figure 1).

Two terms often used interchangeably with job analysis are occupational analysisand task analysis. In the literature, job and occupational analysis most often are

viewed as the same.

Figure 1

The process focuses on the analysis of a job into its occupational structure, work

activities, and informational content . Later, the data provided by the analysis

guides the organization and development of the occupational training program.

In contrast, task analysis is an integral part of the job analysis process. More

specifically, task analysis addresses the process of analyzing a particular task into

its various elements, that is, performance steps; performance step details; technical

information topics; career and occupational guidance information topics; standards

of performance; frequency, importance, and complexity; and tools, equipment,

materials, supplies and technical references. The information resulting from the

task analysis provides a basis for developing the knowledge-and performance-

based learning activities of the training program.

PROCESS

A number of individual authors and organizations have detailed the process of

conducting job analyses (American Society For Quality, 1996; Blank, 1982; Bortz,

1981; DACUM, 1985; Finch and Crunkilton, 1979; Fryklund, 1956; Mager and



Beach, 1967; Mager and Piper, 1976; U.S. Department of the Air Force, 1998-99;

U.S. Department of the Army 1990; U.S. Department of Labor, 1987; U.S.

Department of the Navy, 1997). The analytical approaches of the various authors

and groups differ somewhat in organization and procedural logic. Nonetheless,

each analyzes a job or occupation with the intent of identifying its components and

incorporating the findings into the development of related "products," that is,

training programs and materials, job descriptions, job classifications, and so forth.

Three questions seem to be basic to the majority of the authors. These questions

address the issues of organization, activity, and informational content:

• What is the structure of the occupation?

• What does the worker do?

• What does the worker need to know?

ORGANIZATIONAL STRUCTURE

The first question concerns the structure or framework of the occupation being

analyzed (Bortz, 1981; DACUM, 1985). If the data derived from the job analysis

are used in a situation where organizational structure is important to the "product"

being developed, then the structure of the occupation can serve as a basis from

which the organizational structure of the product is developed. For example, the

hierarchical order of occupational titles in a functionally related family of

occupations can serve as a basis for ordering and naming the units and courses of

the training program resulting from the job analysis.

WORK ACTIVITIES

The second question addresses the activities of the worker in terms of both tasksand performance steps. Once identified, the tasks,— that is, completed units of

work,—serve in various capacities ranging from the writing of learning objectives

of a yet-to-be-developed competency-based training program to the classification

of job titles and writing of job descriptions.

The performance steps for completing each task also will be used in the

development of a variety of related materials. Whenever procedure is an issue, the

performance steps of the tasks come into play. To use an example from the training

of employees in psychomotor skills, the sequence of performance steps guides the

instructor through a demonstration of the steps of the learning objective, to the

student's practice of the procedural steps, to a final determination of the student's



ability to perform the process on a performance test . In each of the three

performance-related learning activities, procedure is fundamental to their

identification and development.

INFORMATION CONTENT

The third question involves identifying the knowledge or informational component

of the occupation. Depending on the author, the three types of information most

often referred to are technical information, general information, and career and

occupational guidance information.

Technical information is that information the worker must know to perform a

specific task or group of tasks. Technical information gives the worker the

judgment-forming, decision-making ability to perform the task(s) in a safe and

correct manner. It is the knowledge base from which the worker can makeinformed decisions affecting and controlling his/her on-the-job performance.

General information, although related to the job itself or to the individual tasks

comprising the job, does not have direct bearing on the performance of either the

job or its component tasks. General information complements the activities of the

workers but is not crucial to their outcome. For example, detailed knowledge about

the manufacture of computer chips has no direct bearing on the performance of a

computer programmer or systems analyst.

Career and occupational guidance information allows workers to make decisionsabout themselves and the workplace. It includes information on such topics as the

short-, intermediate-, and long-range employment needs of the community; the

career interests and abilities of individuals; work, work roles and responsibilities;

job-seeking skills; the employment outlook; and local, state, national, and global

economic trends.

APPLICATION

Each of the following are specific applications of the information gained from a

completed job analysis. In some cases, most or all of the information is used in the

development of the final product, in other cases, only a portion of the job analysis

data is used. (See Figure 1.)

Training Program Development The organizational structure, work activities,

and informational content identified in a job analysis serve as the basis for



developing both the structure and content of a training program. The structure of

the occupation determines the organization of the curricular components of the

training program. The content of the training program depends on the activities and

information needed to perform in the occupation. In a competency based training

program, the titles of the tasks become the titles of the corresponding learning

objectives. The technical information topics and performance steps of the tasks,

respectively, serve as the basis for identifying and organizing the knowledge- and

performance-related learning activities of the learning objectives.

"Critical incident" training is the result of applying the activities and content of a

job analysis in a specific training situation. As discussed by Davies (1981), the

critical incident method of instruction "focuses upon collecting information on key

tasks, particularly on those where problems occur" (p. 131). For these tasks, special

training can be devised using the activities and informational content first

identified in the job analysis and later, translated into learning objectives, curriculaand instructional materials.

Job Classification A job classification is used to group occupations by functionlevel or ability. To classify jobs by function means to categorize them by similarity

of function or activity. For example, titles such as "marketing," "accounting,"

"production," "management," and "human resources development" imply that all

people working in the one of these defined areas are performing a similar type of

activity. Functional job classifications are regularly used in organizational

development and in the preparation of organization charts.

In contrast, to classify occupations by ability level involves using terms that

designate amount of on-the-job experience, skill level, and types of education and

training. Terms such as "apprentice," "journeyman," "master," "entry-level,"

"technician," and "specialist" all reflect a classification of jobs by ability level. The

classification of employees by ability levels also guides organizational

management in establishing the wage and salary schedules of employees.

Job Descriptions/Job Titles A job description is a narrative statement defining a

job, that is, what the employer expects of the employee in terms of on-the-job

performance. As stated by Winning(1996), " A job description [or position

description] is a list of responsibilities and functions … required in a particular

position" (p. 1). A job description categorizes and defines the activities of a worker

in more general terms then those used in a job analysis. The description is intended

to provide a profile of the job rather than describe the occupation in the detail

found in most job analyses. The entries in a well-written job description are



introduced by a descriptive verb and closed by a noun defining the activity, for

example, "maintains bank records."

Complementing the job description is the job title. Job titles are general in nature,

in that they reflect all the activities contained in a job description. In one sense, a

job title is more an extension of the job description than of a completed job

analysis.

Organization Charts Organization charts visually depict the line/staff

relationships and responsibilities of departments/units and individuals working in

an organization. The information gleaned from a job description, together with that

found in the accompanying job classification, serves as the basis for determining

the final configuration and content of a completed organization chart.

Time and Motion Studies Time and motion studies address the issues of industrial production and efficiency, since they attempt to measure time on task,

product quality, and worker safety. These studies are conducted in the workplace

under normal working conditions. A completed job analysis provides the

researcher with the necessary list of tasks and performance steps, that is, work

activities performed by employees in the completion of their jobs. The focus of a

time and motion study is to eliminate wasted motion and determine the most

efficient way of performing a particular task.

Quality Assurance Standards As defined by Peach (1997), "Quality assurance

includes all the planned and systematic activities implemented within the qualitysystem" (p. 38). A job description provides the quality assurance professional with

the list of tasks performed in a particular job and the performance steps

(procedures) required to perform each of the tasks. Also, in a comprehensive job

analysis, standards of performance for both the tasks and performance steps are

included. The two sets of criteria assist in determining the quality outcomes of both

the task (product) and procedural steps (process).

The same two sets of quality standards are also applicable in the education and

training of people for the workplace. Again, the content of the completed job

analysis would provide in structors with the standards used in preparing students

for employment.

DONE Paper 1 - Management Process and Perspectives

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