PA 203 ORGANIZATION & MANAGEMENT AND HUMAN RESOURCE

MANAGEMENT

INTRODUCTION TO ORGANIZATIONAL MANAGEMENT

Organizational management is the process of leading a company and effectively

using or controlling its assets and resources. Organizational management goes well
beyond a corporate structure; it requires leaders to have methods in place to resolve
issues and develop solutions that help the business move closer to its desired goals
and vision.

What is Organization Management?

 Organization management refers to the art of getting people together on a
common platform to make them work towards a common predefined goal.
 Organization management enables the optimum use of resources through
meticulous planning and control at the workplace.
 Organization management gives a sense of direction to the employees. The
individuals are well aware of their roles and responsibilities and know what they
are supposed to do in the organization.

Need for Organization Management

 Organization management gives a sense of security and oneness to the
employees.
 An effective management is required for better coordination among various
departments.
 Employees accomplish tasks within the stipulated time frame as a result of
effective organization management.
 Employees stay loyal towards their job and do not treat work as a burden.
 Effective organization management leads to a peaceful and positive ambience at
the workplace.
Management levels and skills
The term “Levels of Management” refers to a line of demarcation between various
managerial positions in an organization. The number of levels in management increases
when the size of the business and work force increases and vice versa.
The levels of management can be classified in three broad categories:
1. Top level / Administrative level
2. Middle level / Executory
3. Low level / Supervisory / Operative / First-line managers
Top Level of Management

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It consists of board of directors, chief executive or managing director. The top
management is the ultimate source of authority and it manages goals and policies for an
enterprise. It devotes more time on planning and coordinating functions.

Middle Level of Management

The branch managers and departmental managers constitutes middle level. They are
responsible to the top management for the functioning of their department. They devote
more time to organizational and directional functions.
Lower Level of Management
Lower level is also known as supervisory / operative level of management. It consists of
supervisors, foreman, section officers, superintendent etc. According to R.C. Davis,
“Supervisory management refers to those executives whose work has to be largely with
personal oversight and direction of operative employees”. In other words, they are
concerned with direction and controlling function of management.
Functions of Management
Management has been described as a social process involving responsibility for
economical and effective planning & regulation of operation of an enterprise in the
fulfilment of given purposes.
1. Planning- It is the basic function of management. It deals with chalking out a
future course of action & deciding in advance the most appropriate course
of actions for achievement of pre-determined goals.
2. Organizing - It is the process of bringing together physical, financial and
human resources and developing productive relationship amongst them
for achievement of organizational goals.
3. Staffing - It is the function of manning the organization structure and keeping it
manned. Staffing has assumed greater importance in the recent years due
to advancement of technology, increase in size of business, complexity of
human behavior etc. The main purpose of staffing is to put right man on
right job.
4. Directing - Direction is that inert-personnel aspect of management which deals
directly with influencing, guiding, supervising, motivating sub-ordinate for
the achievement of organizational goals.
5. Controlling - It implies measurement of accomplishment against the standards
and correction of deviation if any to ensure achievement of organizational
goals.

GOALS OF MANAGERS AND MANAGEMENT

Management-is the process of designing and maintaining environment in the
individuals working together in groups, efficiently effective ways.
Manager- is an expert in his or her field and is a support system for employees.
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 External environment-is composed of all
outside factors or influences that impact of
the operation of business. The business
must act or react to keep up its flow of
operations. The external environment can be
breaking down into two types: The micro
environment or the macro environment.
Social responsibility of Management
Managers regularly face decisions
that have dimensions of social responsibility.

Example: employee relations,

philosophy, pricing, resource
conservation, product quality, and doing
business in countries that violate human
rights.

SOCIAL RESPONSIBILITY
Two opposing views of social
responsibility are presented:
Classical view-is the view that
management’s only social responsibility
is to maximize profits.
Socioeconomic view-is the view that
management’s social responsibility responsibilities go beyond the making of profits and
improving society’s welfare.
Values-based management- is an approach to managing in which managers are
guided by organization’s share value in management practices. Purpose of sharing
values:
1. They act as guidepost for managerial and decision making.
2. Shared values serve to shape employee behavior and to communicate what the
organization expect of its member.
3. Shared corporate values can influence an organization’ marketing effort.
4. Shared values are a way to build team spirit in organization.

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MANAGERIAL ETHICS
The term ethics refers to principles, values, and belief s that defined what is right and
wrong behavior.
Factors That Affect the Employee Ethics
1. Stages of moral development
2. Individual characteristic
3. Structural variable
4. Organization’s culture
5. Intensity of an issue

Social entrepreneurship: a social entrepreneurship is an individual or organization

who seek out opportunities to improve society by using practical, innovative and
sustainable approach.
Social impact management: managers are increasingly expected to act responsibly in
the way they conduct business. Managers using a social impact management approach
examine the social impacts of their decisions and actions.

TRADITIONAL THEORIES

 Scientific Management
 Administrative Management
 Bureaucracy Management

1. Scientific Management Theory

 Performing the work in a scientific manner. (Frederick W. Taylor
& Frank and Lillian Gilbreth)
Principles of Scientific Management
 Science, not rule of thumb;
 Scientific selection of the worker
 Management and labour cooperation rather than conflict
 Scientific training of workers
Administrative Management theory
 Focuses on principles that can be used by managers and
carrying out activities efficiently.
Principles of Administrative Management
 Division of work (Specialization)
 Authority and Responsibility
 Discipline
 Unity of Command
 Unity of direction

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  Subordination of individual interest
 Remuneration of personnel
 Centralization
 Scalar chain
 Order
 Equity
 Stability of tenure of personnel
 Initiative
 Esprit de corps
 The concept of lime and staff
 Committees
 function of Management
- Planning
- Organizing
- Training
- Commanding
- Coordinating

Bureaucracy Management Theory

(Max Weber)
 The organizational structure with highly routine operating tasks
Performed under formalized rules and regulations with task
assigned to various departments.
Elements of Bureaucracy
 Structure
 Specialization
 Predictability and stability
 Rationality
 Democracy

SYSTEM APPROACH, CONTINGENCY THEORY, AND PETER SENGE’S SYSTEM

THINKING
Systems theory is one of the most prominent theories in management today. In this
lesson, you will learn about the theory and its key components. You will also be given
an opportunity to reinforce your knowledge with a short quiz.
What is Systems Theory?
Systems theory treats an organization as a system. A system can be either
closed or open, but most approaches treat an organization as an open system. An open
system interacts with its environment by way of inputs, throughputs, and outputs.

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Key Concepts of Systems Theory
In order to understand the theory, you must first get a firm understanding of a
system. A system is any set of distinct parts that interact to form a complex whole. Think
of the universe. Its parts are as small as a subatomic particle and as large as galactic
clusters. Each part is distinct but interacts to form the universe. An organization is also a
system with parts such as employees, assets, products, resources, and information that
form a complex system.
An open system consists of three essential elements. An organization receives
resources such as equipment, natural resources, and the work of employees, referred
to as inputs. The inputs are transformed, called throughputs, and then yield products or
services called outputs. Outputs are released into the environment.
Systems Theory Approach
The view of organizations as open social systems that must interact with their
environments in order to survive is known as the systems theory approach.
Organizations depend on their environments for several essential resources: customers
who purchase the product or service, suppliers who provide materials, employees who
provide labor or management, shareholders who invest, and governments that regulate.

The open-systems approach was first applied by Katz and Kahn, who adapted
General Systems Theory to organizational behavior.Katz and Kahn (1966); Bertalanffy
(1951), pp. 303–361. This approach identifies organizational behavior by mapping the
repeated cycles of input, throughput, output, and feedback between an organization and
its external environment. Systems receive input from the environment either as
information or in the form of resources.

Theoretically, systems can be considered either open or closed. Open organizations

exchange information, energy, or resources with their environments, whereas closed
systems do not. In reality, because no social systems can be completely closed or
open, they are usually identified as relatively closed or relatively open. The distinction
between closed and open systems is determined by the level of sensitivity to the
external environment. Closed systems are insensitive to environmental deviations,
whereas open systems are responsive to changes in the environment.

The systems approach is an external standard that measures effectiveness based on

long-term growth or sustainability. Effective systems are characterized by a steady state
that systems theorists call homeostasis in order to “avoid the static connotations of
equilibrium and to bring out the dynamic, processual, potential-maintaining properties of
basically unstable… systems.”Buckley (1967),

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Organizations then organize and process this information to formulate solutions or
responses to these changes. As Cutlip, Center, and Broom noted, open systems use
information to respond to environmental changes and adjust accordingly.

This theory can also be useful in understanding the role of research and feedback in
creating a thoroughly analyzed and consistent strategy (the throughput stage of
information in systems theory).

Systems theory, however, is not without some shortcomings. The first shortcoming
relates to measurement, and the second is the issue of whether the means by which an
organization survives really matter. Robbins noted that one criticism of this approach is
that its focus is on “the means necessary to achieve effectiveness rather than on
organizational effectiveness itself.”Robbins (1990), Measuring the means, or process, of
an organization can be very difficult when compared to measuring specific end goals of
the goal-attainment approach.
A contingency theory is an organizational theory that claims that there is no best way
to organize a corporation, to lead a company, or to make decisions. Instead, the optimal
course of action is contingent (dependent) upon the internal and external situation.
History
The contingency approach to leadership was influenced by two earlier research
programs endeavoring to pinpoint effective leadership behavior. Although multiple sets
of leadership behaviors were originally identified based on these questionnaires, two
types of behaviors proved to be especially typical of effective leaders: (1)
consideration leader behaviors that include building good rapport and interpersonal
relationships and showing support and concern for subordinates and (2) initiating
structure leader behaviors that provided structure (e.g., role assignment, planning,
scheduling) to ensure task completion and goal attainment.
They suggested that previous theories such as Weber's bureaucracy and Taylor's
scientific management had failed because they neglected that management style and
organizational structure were influenced by various aspects of the environment: the
contingency factors. There could not be "one best way" for leadership or organization.
Contingency approaches
Gareth Morgan in his book Images of Organization describes the main ideas underlying
contingency in a nutshell:
 Organizations are open systems that need careful management to satisfy and
balance internal needs and to adapt to environmental circumstances
 There is not one best way of organizing. The appropriate form depends on the
kind of task or environment one is dealing with.
 Management must be concerned, above all else, with achieving alignments and
good fits

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  Different types or species of organizations are needed in different types of
environments
Fred Fiedler's contingency model focused on a contingency model of leadership in
organizations. This model contains the relationship between leadership style and the
favorable-ness of the situation. Fielder developed a metric to measure a leader's style
called the Least Preferred Co-worker. A high score indicates the test taker is relational
in style and a low score indicates the test taker is more task orientated in style.
Situational favorable-ness was described by Fiedler in terms of three empirically derived
dimensions:
1. Leader-member relationship – high if the leader is generally accepted and
respected by followers
2. Degree of task structure – high if the task is very structured
3. Leader's position power – high if a great deal of authority and power are formally
attributed to the leader's position
Situations are favorable to the leader if all three of these dimensions are high.
William Richard Scott describes contingency theory in the following manner: "The best
way to organize depends on the nature of the environment to which the organization
must relate". Pennings carried out an empirical study on a sample of retail brokerage
offices in which aspects of their market environment such as competitiveness, change
and munificence, versus organizational arrangements such as decision making
templates, power distribution were juxtaposed for possible implications for performance.

Contingency theory by Brian Harney

Contingency theory suggests that in order to be effective, HRM must be consistent with
other aspects of the organization and/or external environment. Whereas universalistic
theory suggests that HRM will have a direct impact on organizational performance,
contingency theory implies interactions rather than simple linear relationships.
According to contingency theory, a one-size-fitsall approach is inappropriate, as the
effectiveness of HR practices is dependent on the context in which they are applied.
Contingency decisions within HRM have largely been understood on the basis of
external and internal fit. External fit, also termed vertical alignment, requires that the
HRM practices of the organization must match the organizational strategy or
environmental conditions faced by the organization. The main emphasis in HRM has
been on ‘best fit’ or ‘matching models’ whereby HRM practices are required to be
consistent with a firm’s organizational strategy (e.g., cost, quality, innovation). However,
external fit has also been understood as matching HRM to the stage of growth in the
organizational lifecycle (e.g. start-up, growth, maturity). In addition, and also reflecting
the logic of contingency theory, it is important that HRM practices exhibit internal fit
(also termed horizontal alignment) so that they work together to communicate the same
message and deliver the same desired outcome.
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The logic of contingency theory underpins much research on HRM. The functional
imperative of aligning HRM with strategy served as one of the key factors differentiating
HRM from personnel management, while a current stream of research examines
industry, firm size and environmental intensity as the moderating or boundary conditions
informing the HRM–performance relationship. Attention has also turned to differentiating
HRM within firms so that, contingent on the value and uniqueness of employee groups
in realizing strategy, certain types of HR practices are said to be more optimal than
others (Lepak and Snell, 1999). The limits of contingency theory, however, is that it risks
proposing a limited range of options which takes things as a given and thereby narrows
the role of choice and the agency of HR managers to do things differently.

Systems Thinking
Peter M. Senge

Introduction
System dynamics is the study of complex systems, including such human systems as
families, organizations, cities, and nations. If you look deeply into any system and
analyses the relationships between members, you will find infinite complexity.

In a systems approach to a problem, you start by realizing that there is no inherent end
to a system. There is no such thing as a complete theory. The quest is to look at a
problem more comprehensively. The resolutions come from rethinking how we deal with
complexity. We all deal quite effectively with many highly complex tasks, like driving our
cars.

Even a great pianist will often begin playing a new piece at a slow tempo. Gradually he
picks up the tempo as he "grasps" the piece as a whole. When the time to perform the
piece comes, the pianist no longer requires any "self-conscious," waking awareness to
concentrate on where his fingers go. He frees that part of his awareness to focus purely
on the aesthetic.
That process is analogous to how we deal with complexity generally. It suggests that
parts of our mind deal with complexity much better than our normal, self-conscious,
waking awareness. The key to educating people in systems thinking is to use a
developmental process -- to replicate what the pianist goes through. Eventually the
concert pianist can simply look at a piece of music, which to our eyes is hopelessly
complex, and absorb it with his self-conscious awareness. He may still have to practice
it, but his ability to deal with complexity has expanded.

In fact, people who succeed in handling complexity are working in an intuitive domain
we don't even consider in our educational theories. Simply accepting the complexity is a
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major step toward developing that intuitive sense. But it is very difficult for business
executives to accept that complexity because many of them need to see themselves as
being in control. To accept it means they must recognize two things at a gut level: 1)
that everything is interconnected, and 2) that they are never going to figure out that
interconnectedness.

One implication of that realization is very liberating, because not only are you never
going to figure it out, but neither is anybody else. It creates an inherent equality.

Dismantling these beliefs is critical to piercing through the hierarchical mentalities that
dominate most organizations. Most people have grown up in an authoritarian
environment where their parents, teachers, or bosses provided the answers. They are
absolutely convinced, deep down, that people above them know what is going on. That
mentality weakens them as individuals and weakens the organization as a whole.

When a group of people collectively recognize that nobody has the answer, it
transforms the quality of that organization in a remarkable way. We learn to live with
uncertainty, because no matter how smart or successful you are, a fundamental
uncertainty will always be present in your life. That fact creates a philosophic
communality between people in an organization, which is usually accompanied by an
enthusiasm for experimentation. If you are never going to get the answer, all you can do
is experiment. When something goes wrong, it's no longer necessary to blame someone
for screwing up -- mistakes are simply part of the experiment.

At a deeper level, most people know that's not happening, but the illusion has to be
chipped away. Only then is the soil fertile to grow empowered people. Only then can
you start to find out how people create. They don't create by figuring things out and by
controlling.

Ideas about Causability

Most people only look at events and talk about cause in a social system as "who did
what to whom."
Our present notion of causality is like the billiard balls of Newton, but we're beginning to
see that this is far too oversimplified for most situations.
System dynamics looks for the causality that underlies the longer-term patterns of
change in complex systems. We assume there are underlying interrelationships at
deeper levels in systems and that once one understands this level, one has unique
abilities to influence change.

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Different companies work at this in different ways, but it comes down primarily to telling
the truth rather than blindly accepting traditional values. It is true that in many ways the
contribution of the chief engineer is more valued, but that person who screws in the bolt
has to do his or her job right or the whole system can fall apart. At the level of
performance, of final results, reality imposes a fundamental equality on things.
PLANNING
is a commitment to a particular course of action undertaken to achieve specific
results. It consists of several components or derivative plans that are generally bound
together. These components are known as plans. There can be several types of plans.
It is easy to see a major plan such as establishing a new enterprise but some future
courses of actions are also planning. Any course of future action is a plan.

Purpose or Mission:
The mission or purpose identifies the basic
function or task of an enterprise. Every
organization has or should have a purpose
so that its working becomes meaningful. The
purpose or mission is assigned to every
organization by the society. The purpose of
a business is to produce and distribute
goods or services, the purpose of public
works department is to construct and
maintain roads, the purpose of courts is to interpret and apply laws and so on. The
purpose is a standing plan in a business organization which defines its basic purpose in
the light of which other actions are designed.

Objectives:
Objectives or goals are the ends towards which every activity is aimed-they are the
results to be achieved. Objectives are a prerequisite for planning. No planning is
possible without setting up of objectives. While enterprise objectives are the basic plan
of the firm, a department may also have its own objectives.
Enterprise objectives influence the management philosophy and practice. Objectives
have greater influence on the working of an organization. All other types of plans such
as policies, strategies, procedures, rules, budgets etc. assist in the attainment of stated
enterprise objectives in an economical and efficient manner. Objectives are related to
the future and are an essential part of the planning process.

Policies:
Policies are general statements or understandings which provide guidance in decision-
making to various managers. These are standing plans providing guidance to
management in the conduct of managerial operations. Policies define boundaries within
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which decisions can be made and decisions are directed towards the achievement of
objectives. Managers can delegate authority within the given parameters and can still
retain control over what their subordinates do. In the words of Koontz and Weihrich.
“Policy is a means of encouraging discretion and initiative, but within limits.”

Strategies:
The word ‘strategy’ has long been used in the content of military action plans. It was
used to state the grand plans made in the light of what it is believed an adversely might
or might not do. Managers now use strategies in the broader areas of business
operations. A strategy is a comprehensive and integrated plan designed to assure that
business objectives are accomplished. The long-term objectives of the enterprise are
determined and requisite resources are allocated and deployed to achieve the desired
results.

Rules:
A rule is a plan that lays down a required course of action with regard to a situation. A
rule is in the nature of a decision made by management regarding what is to be done
and what is not to be done in a particular situation. A rule is definite and rigid and allows
no deviation or discretion to the subordinates. Like procedures, rules do not prescribe a
chronological sequence of steps to be taken to achieve a given objective. A rule may or
may not be a part of the procedure. A rule such as ‘No smoking in the factory’ will not
form a part of the procedure. On the other, a rule to make payment within 21 days will
be the part of a procedure.
“Rules prescribe the limits of acceptable behaviour of the members of the organization.
Rules will enable managers to predict the behaviour of their subordinates, how will they
act in a given situation. Rules channel the behaviour of workers in a desired direction.
Workers sometimes resent rules for stifling their actions. The problem does not lie with
the rules, but the manner in which they are put to the workers. Management should try
to frame only those rules which are necessary and those too should also be explained
properly to the employees.

Programmes:
A programme is a sequence of activities designed to implement policies and accomplish
objectives. It is devised to meet a particular situation. Programme may be taken as a
combination of policies, procedures, rules, budgets, task assignments, etc. developed
for the specific purpose of carrying out a particular course of action. Separate
programmes are prepared for accomplishing different tasks. The same programme may
not be used for achieving other goals. It is a single use plan laid down for new and non-
repetitive activities.
In the words of Koontz and O’Donnell, “Programmes are complexes of goals, policies,
procedures, rules, task assignment, steps to be taken, resources to be employed and
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other elements necessary to carry out a given course of action.” To quote George Terry,
“A programme can be defined as a comprehensive plan that includes future use of
different resources in an integrated pattern and establishes a sequence of required
actions and time schedules for each in order to achieve the standard objectives.
Budgets:
A budget is the monetary or/and quantitative expression of business plans and policies
to be pursued in the future period of time. The term budgeting is used for preparing
budgets and other procedures for planning, co-ordination and control of business
enterprise.
According to Institute of Cost and Works Accountants, London, “A budget is a financial
statement and /or quantitative statement prepared prior to a defined period of time, of
the policy to be pursued during that period for the purpose of attaining a given
objective.” In the words of George R. Terry, “A budget is an estimate of future needs,
arranged according to an orderly bases, covering some or all of the activities of an
enterprise for a definite period of time.” In the words of Crown and Howard a budget has
been defined as, “A pre-determined statement of management policy during a given
period which provides a standard for comparison with the results actually achieved.”
Plans commit the various resources in an organization to specific outcomes for the
fulfillment of future goals. Many different types of plans are adopted by management to
monitor and control organizational activities. Three such most commonly used plans are
hierarchical, frequency-of-use (repetitiveness) and contingency plans.
Strategic Plans
Strategic plans define the framework of the organization’s vision and how the
organization intends to
make its vision a reality.
 It is the
determination of
the long-term
objectives of an
enterprise, the
action plan to be
adopted and the
resources to be
mobilized to
achieve these goals.
 Since it is planning the direction of the company’s progress, it is done by the top
management of an organization.
 It essentially focuses on planning for the coming years to take the organization
from where it stands today to where it intends to be.
 The strategic plan must be forward looking, effective and flexible, with a focus on
accommodating future growth.
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  These plans provide the framework and direction for lower level planning.
Tactical Plans
Tactical plans describe the tactics that the managers plan to adopt to achieve the
objectives set in the strategic plan.
 Tactical plans span a short time frame (usually less than 3 years) and are
usually developed by middle level managers.
 It details specific means or action plans to implement the strategic plan by units
within each division.
 Tactical plans entail detailing resource and work allocation among the subunits
within each division.
Operational Plans
Operational plans are short-term (less than a year) plans developed to create specific
action steps that support the strategic and tactical plans.
 They are usually developed by the manager to fulfill his or her job
responsibilities.
 They are developed by supervisors, team leaders, and facilitators to support
tactical plans.
 They govern the day-to-day operations of an organization.
 Operational plans can be −
o Standing plans − Drawn to cover issues that managers face repeatedly,
e.g. policies, procedures, rules.
Ongoing plans − Prepared for single or exceptional situations or problems and are
normally discarded or replaced after one use, e.g. programs, projects, and budgets.

OBJECTIVES: NATURE, HIERARCHY OF OBJECTIVES, KEY RESULT AREAS,

HOW TO SET OBJECTIVES
I. INTRODUCTION
Objective defined as the important ends toward which organizational and individual
activities are directed. Since writers and practitioners make no clear distinction between the
term’s “goals” and “objectives,” they are used interchangeably. Within the context of the
discussion it will become clear whether they are long-term or short-term. The emphasis that
is, at the end of the period it should be possible to determine whether or not the objective has
been achieved. The goal of every manager is to create a surplus (in business organizations
this means profits).
Objectives state and results, and overall objectives need to be supported by sub-
objectives. Thus, objectives from hierarchy. Moreover, organizations and managers have
multiple goals that are sometimes incompatible and may lead to conflicts within the
organization, within the group, and even within individuals. A manager may have to choose
between short-term and long-term performance, and personal interest may have to be
subordinate to organizational objectives.

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 Attaining goals/objectives brings into play strategy and planning, for which you
need imagination, a sense of reality, power of analysis and what has been described as
helicopter vision (the ability to see matters in detail, but from a higher perspective). The
plan should detail all the steps required to complete those tasks which are needed to be
done in order to meet the objectives set. Time spent on planning is crucial in the
thinking, the brainstorming and the sharing of ideas, the definition of purpose, the
identification of obstacles and the ways and means of overcoming them and of meeting
objectives. (John Adair, 2004).

Objectives define strategies or implementation steps to attain the identified goals.

Unlike goals, objectives are specific, measurable, and have a defined completion date.
They are more specific and outline the “who, what, when, where, and how” of reaching
the goals. Objectives are developed to help achieve goals by dividing them into
manageable components. Successful completion of multiple objectives is needed for
each individual goal. Some objectives may themselves have components that can be
expressed as "action steps," but it is vital to eventually identify in the plan all the details
that will guide and encourage concrete actions to be taken.

Thus, Objectives of the organization (business goals) are stated by management

before any planning or decision-making activities. Every organization is structured using
all available resources in order to achieve objectives set by managers. They are an
expression of associations and feedback with the environment. Objectives have a
strong influence on the interaction with the environment. Environment affects the
determination of the organization's objectives. Objectives should satisfy all the
participants of the organization. Managers determine the basic objectives of the
organization (one single direction of the organization), promote proper planning, they
are a source of motivation for the members of the organization, provide an effective
mechanism for monitoring and evaluation (provide a basis for the formulation of
standards).

II. NATURE OF OBJECTIVES

A. Multiplicity of Objectives
Aims are of course, numerous. Even the mission and broad major objectives of
an enterprise are normally multiple. Likewise, at every level in the hierarchy of
objectives, goals are likely to be multiple. Some people think that a manager cannot
effectively pursue more than a few objectives, perhaps two or five. The argument is
that too many objectives tend to dilute the drive needed for their accomplishment and
may unduly highlight minor objectives to the detriment of major ones.
There is something to that position, but two to five objectives seem too arbitrary
and too few. It is true that minor goals should not be given that status of important
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 objectives unless a lower level job is involved. It would hardly be useful for an upper-
level manager to occupy his or her time with such lesser objectives as greeting callers,
attending meetings, and answering correspondence. There are certain things that any
manager is expected to do, and they need not be made into specific and special
objectives. Goals are not conceived of as dealing with every facet of a person’s job;
they should not be confused with activities.

B. Business Objective
In order to bring harmony in the organization, management has to integrate
personal goals with the organizational goals. Business objective may be
classified into organizational objectives, social objectives and personal or
individual objectives:
1. Organizational Objectives
The organizational objectives of management refer to the main objectives
required to fulfill the economic goals of any business organization. The chief aim
of management is to utilize the human and material resources in such a manner
as should give maximum advantage to the organization.

These objectives of every organization are survival, profit and growth:

(a) Survival
The basic objective of every business is to survive for a long period in the
market. The management must ensure the survival of the organization by
earning enough revenue to cover its costs.
(b) Profit
Only survival is not sufficient for business. Profit earning is essential for
meeting the expenses and for successful continuity of the business. Thus,
management must ensure earning of sufficient profits for the organization.
(c) Growth
The next important organizational objective of the management is to
ensure future growth and development of the business which can be measured
in terms of increased sales, increase in number of products, segments etc. The
growth potential of the organization must be fully exploited by the management.
2. Social Objectives
Every organization is a part of the society. Thus, it has certain social
obligations to fulfill. The main social objectives are:
(i) Pollution free methods of production.
(ii) Increasing employment opportunities especially for the
economically weaker sections of the society and backward classes.
(iii) Providing basic facilities to the employees like schools &
crèches for their children, medical facilities etc.
(iv) To supply quality goods and services at reasonable prices.
16
 (v) To provide financial support to society by donating for noble
causes.
(vi) To organize educational, health and vocational training
programs.
(vii) To participate in social service projects of Government and
Non- Government Organizations (NGOs).
3. Personal Objectives
Personal objectives refer to the objectives which are related to the
employees of an organization. Different people with different values, experiences
and objectives become part of the organization to satisfy their different needs.
These needs include:
(i) Financial needs like salaries, incentives and other monetary
benefits.
(ii) Social needs like recognition in the organization.
(iii) Higher level needs which include personal growth and
development.

C. Short, Medium, and Long-term Objectives

The difference between short, medium, and long-term objectives is the time frame
of each, and the implication this has on the nature of the objectives.

Short-term objectives
are generally those relating to that financial year, in a time frame from now to
the end of the year (i.e. up to a year away). An example might be to raise turnover by
8 per cent and profit by 9 per cent by the end of the financial year.
Medium-term objectives
are generally those that relate to a period from 18 months to three years
or sometimes five years (whichever is appropriate for the organization and
people setting the objectives). These objectives will therefore be broader, can be
reviewed and may need to be amended with time. An example might be to
relocate to brand new premises of 20,000 sq. ft by March 2021. Of course, the
medium-term will become short-term with the passage of time and should be
reviewed and updated with this in mind.

Long-term objectives
are generally more aspirational and so tend to relate to a period of five
years plus. Often for owners and/or managers, these can tie closely in with
personal goals and work-life balance. An example might be to sell the business
for £5 million before the owner/manager turns 60.
The Nature of Long-term Objectives:

17
 1. Objectives should be quantitative, measurable, realistic, challenging,
hierarchical, obtainable and congruent among organizational units.
2. Each objective should be associated with a time line.
3. Objectives are commonly stated in terms of such as growth in assets,
growth in sales, profitability, market share, degree and nature of
diversification.
4. Clearly established objectives offer many benefits. They provide
direction, allow synergy, aid in evaluation, establish priorities, minimize
conflicts and aid in allocation of resources and the job designs.
5. Long term objectives are needed at the corporate, divisional and
functional levels of an organization.
6. Without long-term objectives, an organization would drift aimlessly
toward some unknown end.
7. It is hard to imagine an organization an organization or individual being
successful without clear objectives.

III. HIERARCHY OF OBJECTIVES

A. Hierarchy of Objectives: How It Works in An Organization
As figure III-A shows below, objectives from a hierarchy, ranging from the broad
aim to specific individual objectives. The zenith of the hierarchy is the socioeconomic
purpose of society, such as requiring the organization to contribute to the welfare of
the people by providing goods and services at a reasonable cost. Then there is the
mission or the purpose of the business, which might be to furnish convenient, low-
cost transportation for the average person. The stated mission might be to produce,
market, and service automobiles. As you will notice, the distinction between purpose
and mission is a fine one, and therefore many writers and practitioners do not
differentiate between the two terms. At any rate, these aims are in turn, translated
into general overall objectives and strategies, such as designing, producing and
marketing reliable, low-cost fuel-efficient automobiles.
The next level of the hierarchy contains more specific objectives, such as those
in the key results areas. These are the areas in which performance is essential for
the success of the enterprise. Some examples of objectives for key result areas are
the following to obtain a 10 percent return on investment by the end of calendar year
1993 n(profitability); to increase
the number of units of product
X by 7 percent without an
increase in cost or a reduction
of the current quality level by
June 30, 1993 (productivity).
The objectives have to be

18
further translated into division, department and unit objectives down to the lowest
level of the organization.
B. The Relationship of Objectives and The Managerial Hierarchy

As the figure above indicates, managers at different levels in the hierarchy are
concerned with different kinds of objectives. The directors and managers at the top
level are involved in determining the purpose, the mission and the overall objectives
of the company, as well. Middle-level managers are involved in the setting of key-
result-area objectives and division objectives. The concern of lower-level managers is
setting objectives of departments and units as well as of their subordinates (i.e.,
individual objectives).
There is a controversy about whether the top down or the bottom-up approach in
setting objectives should be followed. Proponents of the top-down approach suggest
that the total organization needs direction through corporate objectives provided by
the top-level managers. Advocates of the bottom-up approach, on the other hand,
argue that top management needs to have information, from lower levels in the form
of objectives.
In addition, subordinates are likely to be highly motivated by and committed to,
goals that they initiate. However, the approach to be followed depends on the
situation, the size of the organization, the organizational culture, and the leadership
style followed.

C. Corporate, Business, And Function Level Objectives

Objective have a hierarchy. They can be set at different levels of organization. It
can be at following levels:
1. Corporate level Objectives: They are strategic objective set by top
management. It defined long-term desired outcomes. They consist of
Vision, Mission and Strategy. They are stated broadly.
Vision: It states the reason for the existence of the organization. They defend
the scope and boundaries of the present business of organization. It is the
purpose of the organization.
Strategy: It is a broad action plan for achieving objectives. It provides long-
term direction and scope to an organization.
2. Business units level Objectives: They are set for each strategic business
unit (SBU). They defined the business of the Organization. They are
desired outcomes for each SBU over long term in particular markets. They
are set for key result areas, such as Profit, Market share, Sales. They
follow from corporate level organization.
SBU level objectives deal with the following aspects for each SBU:

19
  Long-term profanity
 Market share growth
 Product category scope: Product line and items
 Positioning among competitive
 Now Business Opportunity, etc.
3. Function level Objective: They set specific targets for each function of SBU.
The function can be Operation, Marketing, Finance, Human Resources, Research
and Development. They follow from SBU objectives.
 Lowering cost of production
 Market coverage in the chosen segment
 Level of customer satisfaction
 Fund generation
 Programs for human resources development
 New products to be launched
 Advertising and Sales Promotion Targets, etc.
4. Individuals level Objectives: They are related to daily or weekly perforation of
each employee. They follow from functional objectives. They deal with:
 Level of output per employee
 Reject and waste
 Sales per salesperson
 Career planning and development, etc.

D. The Process of Setting Objectives and The Organizational Hierarchy

As figure above indicates, managers at different levels in the organizational

hierarchy are concerned with different kinds of objectives. The board of directors
and top-level managers are very much involved in determining the purpose, the
mission, and the overall objectives of the firm, as well as the more specific overall
objectives in the key result areas. Middle-level managers such as the vice president
or manager or manager of marketing or the production manager, are involved in the
setting of key-result area objectives, division objectives, and department objectives.
The primary concern of lower level manager is setting objectives, consisting of
performance and development goals, are shown at the bottom of the hierarchy,
managers at higher levels also should set objectives for their own performance and
development.
There is some controversy about whether an organization should use the top-
down or the bottom-up approach is setting objectives, as indicated by the arrows in
the above figure. In the top-down approach upper-level managers determine the

20
 objectives for sub-ordinates, while in the bottom-up approach subordinates initiate
the setting of objectives for their positions and present them to their superior.
Proponents of the top-down approach suggest that the total organization needs
direction through corporate objectives provided by the chief executive officer (in
conjunction with the board of directors). Proponents of the bottom-up approach on
the other hand, argue that top management needs to have information from lower
levels in the form of objectives.

In addition, subordinates are likely to be highly motivated by, and committed to,
goals that they initiate. Personal experience has shown that the bottom-up
approach is underutilized by that either approach alone is insufficient. Both are
essential, but the emphasis should depend on the situation, including such factors
as the size of the organization, the organizational culture, the preferred leadership
style of the executive, and the urgency of the plan.

IV. KEY RESULT AREAS

A. Key Result Areas of a Business

Although there is no complete agreement on what the key result areas of a business
should be-and they may differ for various enterprises, as Peter F. Drucker suggests
the following:

1. Market Standing - the position of an organization relative to its competitors

2. Innovation - any change made to improve the methods of conducting
organizational business.
3. Productivity - the level of goods and services produced by an organization.
4. Physical and Financial Resources - the relative amount of resources held by
an organization such as inventory, equipment and cash.
5. Profitability - the ability of organization revenue dollars beyond the expenses
necessary to generate the revenue.
6. Manager Performance and Development - the quality of managerial
performance and the rate at which managers are developing personally.
7. Worker Performance and Attitude - the quality of non-managers performance
and such employee’s feeling about their work.
8. Public Responsibility - the obligation of business to help improve the welfare
of society while it strives to reach organizational objectives.
9. Service and Quality – the ability to provide work performed in an expert
manner by an individual or team for the benefit of its customers.

B. Results-Based Management: Developing One’s Key Result Areas

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 The Key Result Areas (KRAs) or key performance indicators (KPIs) are the
targets or goals set by an individual or the department in his/her or its operational
(day-to-day) or strategic (long-term) plans. Although used synonymously, there is a fine
difference between these two terms. KRAs refer to general areas of outcome or output
for which the institute or the department’s role is responsible. About 80% of the
department’s work role is captured by KRAs.

The remaining role of the department is devoted to areas of shared responsibility

(e.g., helping team members, participating in joint activities, etc.). To manage KRAs,
KPIs are set. KPIs are indicators that help in assessing to what extent the role was
achieved by an individual.2 Simply said, these are the duties and responsibilities that
are defined (by the individual himself or his/her boss) ahead of time (e.g., at the
beginning of a year), which need to be evaluated in a fixed time frame (again by either
the individual or his/her boss).
KPIs (Key Performance Indicators) constitute the primary responsibilities of an
individual or the core area for which he/she is accountable. These focus on results
rather than activities, help prioritize the activities, and communicate the activities to the
concerned individual or to others.

Once one has determined the KRAs, the next step for him/her is to grade
himself/herself on a scale of 1-10 in each of those areas in the middle or the end of the
term. What are his/her strong areas and weak areas? In which area is the individual
getting excellent results and in which areas is he/she underperforming? A simple rule
can be followed: one’s weakest KRA sets the maximum extent to which one can use all
his/her other skills and abilities. One should refuse to rationalize, justify, or defend one’s
areas of weakness. Rather, one should identify and manage these clearly. If one
defines his/her KRAs, then he/she will be clear in his/her thoughts (about what needs to
be done). Similarly, after defining the KRAs for a year, one shall try to split the KRAs
into smaller workable areas. In this way, one shall be able to define KRAs for a month
and even on a weekly basis. This in turn would sharpen the focus of the individual and
s/he could be called as an effective manager. It has been said that 3% betterment is
needed in each of the KRAs of one’s job to develop the winning edge, which will enable
one to move to the front in the race of life.

C. MBO (Management by Objectives)

Management by Objectives (MBO) - focus on achievable goals and to

attain the best possible results from available resources free Business. According
to Drucker, managers should "avoid the activity trap", getting so involved in their
22
 day to day activities that they forget their main purpose or objective. Instead of
just a few top managers, all managers should participate in the strategic planning
process, in order to improve the implementation of the plan, and implement a
range of performance systems, designed to help the organization stay on the
right track.

MBO aims to increase organizational performance by aligning goals and

subordinate objectives throughout the organization. Ideally, employees get strong
input to identify their objectives, time lines for completion, etc.

MBO managers focus on the result, not the activity. They delegate tasks
by "negotiating a contract of goals" with their subordinates without dictating a
detailed roadmap for implementation. Management by Objectives (MBO) is about
setting yourself objectives and then breaking these down into more specific goals
or key results.

The principle behind Management by Objectives (MBO) is to make sure

that everybody within the organization has a clear understanding of the aims, or
objectives, of that organization, as well as awareness of their own roles and
responsibilities in achieving those aims. The complete MBO system is to get
managers and empowered employees acting to implement and achieve their
plans, which automatically achieve those of the organization.

V. HOW TO SET OBJECTIVES

A. Quantitative and Qualitative Objectives

Without clear objectives, managing is haphazard. No individual and no group can

expect to perform effectively and efficiently unless there is a clear aim. To be
measurable, objectives must be verifiable. This means that one must be able to answer
the following question. At the end of the period, how do I know if the objective has been
accomplished? For example, the objective of making a reasonable profit can at best
indicate whether the company made a profit or had a loss, but it does not state how
much profit is to be made. In contrast, a return on investment of 12 percent at the end of
the current fiscal year can be measured; it answers these questions: How much or
what? When?

At times it is more difficult to state results in verifiable terms. This is especially

true for staff personnel and also in government. For example, installing a computer
system is an important task, but to “to install a computer system” is not a verifiable goal.
But suppose the objective is “to install a computerized control system (with certain
23
specifications) in the production department by December 31, 1994, with an expenditure
of not more than 500 working hours.” Then, goal accomplishment can be measured.
Moreover, quality can also be specified (in terms of computer downtime).

B. Setting Objectives in Government

The need of managing by objectives in government has been recognized by
Frederic V. Malek, a former special assistant to the President and one of the driving
forces in the implementation of MBO in the federal government. He stated “If the
executive branch of government is to be managed effectively, it clearly needs a system
for setting priorities, pinpointing responsibility for their achievement, requiring follow-
through, and generating enough feedback that programs can be monitored and
evaluated from the top.”
To be sure, the management of government has some special problems. Many
expenditures are uncontrollable because they are mandated by law.

C. Guidelines for Setting Objectives

Setting objectives is indeed a difficult task. It requires intelligent coaching by the
superior and extensive practice by the subordinate. The guidelines shown on Checklist
below will help managers in setting their objectives. The list of objectives should not be
too long, yet it should cover the main features of the job. This emphasized, objectives
should be verifiable and should state what is to be accomplished and when. If
possible, the quality desired and the projected cost of achieving the objectives should
be indicated. Testing objectives against the criteria shown in the checklist is a good
exercise for managers and aspiring managers. Below are Checklist for Manager
Objectives.
 Do the objectives cover the main features of my job?
 Is the list of objectives too long? If so, can I combine some objectives?
 Are the objectives verifiable; that is, will I know at the end of the period
whether or not they have been achieved?
 Do the objectives indicate:
a. Quantity (how much)?
b. Quality (how well, or specific characteristics)?
c. Time (when)?
d. Cost (at what cost)?
 Are the objectives challenging, yet reasonable?
 Are priorities assigned to the objectives (ranking, weighing, etc.)?
 Does the set of objectives also include?’
a. Improvement objectives?
b. Personal development objectives?

24
  Are the objectives coordinated with those of other managers and
organizational units? Are they consistent with objectives of my superior,
my department, the company?
 Have I communicated the objectives consistent to all who need to be
informed?
 Are the short-term objectives consistent with long-term aims?
 Are the assumptions underlying the objectives clearly identified?
 Are the objectives expressed clearly, and are they in writing?
 Do the objectives provide for timely feedback so that I can take any
necessary corrective steps?
 Are my resources and authority sufficient for achieving the objectives?
 Have I given the individuals who are expected to accomplish objectives a
chance to suggest their objectives?
 Do my subordinates have control over aspects for which they are
assigned responsibility?

D. S.M.A.R.T. Objectives
The establishment of all objectives should be created using the S.M.A.R.T.
philosophy. What do we mean by a S.M.A.R.T. objective? S.M.A.R.T. is an acronym to
Specific, Measurable, Achievable, Relevant, Time Oriented that is used to guide the
development of measurable goals. Each objective should be:
1. Specific
It answers the questions "what is to be done?" "how will you know it is done?"
and describes the results (end product) of the work to be done. The description is
written in such a way that anyone reading the objective will most likely interpret it the
same way.
To ensure that an objective is specific is to make sure that the way it is described
is observable. Observable means that somebody can see or hear (physically observe)
someone doing something.
2. Measurable
It answers the question "how will you know it meets expectations?" and defines
the objective using assessable terms (quantity, quality, frequency, costs, deadlines,
etc.). It refers to the extent to which something can be evaluated against some
standard. An objective with a quantity measurement uses terms of amount,
percentages, etc.
A frequency measurement could be daily, weekly, 1 in 3. An objective with a
quality measurement would describe a requirement in terms of accuracy, format, within
university guidelines.
3. Achievable

25
 It answers the questions "can the person do it?" "Can the measurable objective
be achieved by the person?" "Does he/she have the experience, knowledge or
capability of fulfilling the expectation?" It also answers the question "Can it be done
giving the time frame, opportunity and resources?" These items should be included in
the SMART objective if they will be a factor in the achievement.
4. Relevant
It answers the questions, "should it be done?", "why?" and "what will be the
impact?" Is the objective aligned with the S/C/D’s implementation plan and the
university’s strategic plan?
5. Time-oriented
It answers the question, "when will it be done?" It refers to the fact that an
objective has end points and check points built into it. Sometimes a task may only
have an end point or due date. Sometimes that end point or due date is the actual
end of the task, or sometimes the end point of one task is the start point of another.

STRATEGIES, POLICIES, AND PLANNING PREMISES-NATURE & PURPOSE OF

STRATEGIES AND POLICIES, STRATEGIC PLANNING PROCESS, TECHNIQUES
IN DETERMINING STRATEGIES (SWOT ANALYSIS OR TOWS ANALYSIS, AND
PORTFOLIO MATRIX), MATCHING STRUCTURE AND STRATEGY, PREMISING
AND FORECASTING

Nature and Purpose of Strategies and Policies

Strategy-refers to the determination of the long-term objectives of an enterprise and the

adoption of courses of action to achieve these aims.

The term “strategy” (which is derived from the Greek word strategies, meaning
“general”) has been used in different ways.

Policies-are concepts that guide the thought processes and behavior of managers
when they make decisions.

Policies are guides to thinking in decision making. They reflect and interpret objectives
and guide decisions to achieve the objectives. They establish the framework for
planning programs. They establish limits or boundaries to plan whereas planning
premises provide the operational background.
Policies themselves are plans. They are also the result of planning and decision
making.
Policies can be categorized as originated policy, appealed policy, implied policy, and
externally imposed policy.

26
Guidelines for Effective Policies
Policies should reflect objectives and plans
Policies should be consistent
Policies should be flexible
Policies should be distinguished from rules and procedures
Policies should be in writing
Policies should be taught
Policies should be controlled

Strategies and policies are closely related. They provide direction for the organization
and form the basis of operational plans.

Steps for successful Implementation Strategies

1. Communicating strategies to all key decision-making managers.

2. Developing and communicating planning premises
3. Ensure that action plans contribute to and reflect major objectives and strategies.
4. Reviewing strategies regularly.
5. Developing contingency strategies and programs.
6. Making organization structure fir strategic needs
7. Continuing to emphasize planning and implementing strategy.
8. Creating a company climate that forces planning.

Strategic Planning Process

Strategic Planning is an organization’s process of defining its strategy, or direction, and
making decisions on allocating its resources to pursue this strategy. It may also extend
to control mechanisms for guiding the implementation of the strategy.

7 Steps to Kick-Start your Strategic Planning Process

1. Identify your mission statement

2. Create a vision of the future
3. Develop core values and guiding principles
4. Create long-term goals and smart objectives
5. Establish an action roadmap with timelines
6. Build a communication plan
7. Establish an implementation and monitoring plan
MAJOR KINDS OF STRATEGIES AND POLICIES
For a business enterprise (and, with some modification, for the kinds of
organizations as well), the major strategies and policies that give an direction to
operations are likely to be in the following areas.
27
Growth
Growth strategies give answers to such questions as how much growth should occur,
and how fast, where, and how it should occur.

Finance
Every business enterprise and, for the matter, any nonbusiness enterprise may have a
clear strategy for financing its operations. There are various ways doing this and usually
many serious limitations.

Organization
Organizational strategy has to do with the type of organizational patterns enterprise will
use. It answers such practical questions as how centralized decentralized decision-
making authority should be, what kinds of department patterns are most suitable, and
how to design staff positions.
Personnel
There can be many major strategies in the area of human resources and relationships.
They deal with such topics as union relations.

Public Relations
Strategies in this area can hardly be independent but must support other major
strategies and efforts. They must also be designed in the light of the company’s type of
business, its closeness to the public, and its susceptibility to regulation by government
agencies.
Product or Services
A business exists to furnish products or services. In a very real sense, profits are merely
a measure-although an important one-of how well a company serves its customers.

Marketing
Marketing strategies are designed to guide managers in getting products or services to
customers and encouraging customers to buy. Marketing strategies are closely related
to product strategies; they must be interrelated and mutually supportive.

Techniques in determining strategies

SWOT Analysis or TOWS Matrix

External opportunities and threats and internal strengths and weaknesses are to be
evaluated by organizations as a part of strategic planning process. If an opportunity and
strength match, the organization can exploit the opportunity with confidence. If there is a
threat and company seem to be weak in the area, retrenchment can be an alternative.

28
SWOT Analysis (or SWOT matrix) is a strategic planning technique used to help a
person or organization identify strengthens, weaknesses, opportunities, and threats
related to business competition or project planning.

 Strengths: characteristics of the business or project that give it an advantage

over others.
 Weaknesses: characteristics of the business that place the business or project
at disadvantage relative to others.
 Opportunities: elements in the environment that the business or project could
exploit to its advantage.
 Threats: elements in the environment that could cause trouble for the business
or project.

SWOT ANALYSIS
Helpful
Internal Origin Harmful

Strengths Weaknesses

External Original

Opportunities Theaths

Strengths and Weaknesses (Internal Factors within an Organization)

 Human Resources-staff, volunteers, board members, target population
 Physical Resources-your location, building, equipmet
 Financial-grants, funding agencies, other sources of income
 Activities and Processes-programs you run, systems you employ
 Past Experiences-building blocks for learning and success, your
reputation in the community.
Opportunities and Threats (external factors stemming from community or socieatal
forces)
 Future trends in your field or the culture
 The economy-local, national or international

29
  Funding Sources-foundations, donors, legislatures
 Demographics-changes in the age, race gender, culture of those you
serve or in your area.
 The physical environment-is your building in growing part of town? Is the
bus company cutting routes?
 Legislation-do new federal requirements make your job harder or easier?
 Local, national, or international events

Key Points
SWOT Analysis is a simple but useful framework for analyzing your organization’s
strengths and weaknesses, and the opportunities and threats that you face. It helps you
focus on your strengths, minimize threats, and take the greatest possible advantage of
opportunities available to you.
TOWS ANALYSIS-is derived from the SWOT Analysis model, which stands for the
internal Strength and Weaknesses of an organization and the external
Opportunities and Threats that the business is confronted with

Figure 2
INTERNAL FACTORS
STRENGTH WEAKNESSES
EXTERNAL FACTORS

OPPORTUNITIES
Strengths/Opportunities Weaknesses/Opportunities
(SO) (WO)

THREATS Strengths/Threats (ST) Weaknesses/Threats

Internal strengths (S) e.g., Internal weaknesses (W)

Internal Factors
strengths in management, e.g., weaknesses in areas
External Factors operations, finance, shown in the box of
marketing, R&D, “strengths”
engineering
External Opportunities (O) SO Strategy: Maxi-Maxi WO Strategy: Mini-Maxi
(Consider risks also) e.g., Potentially the most e.g., developmental
current and future successful strategy, strategy to overcome
economic conditions; utilizing the organization’s weaknesses in order to

30
political and social strengths to take take advantage of
changes, new products, advantage of opportunities. opportunities.
service and technology
External threats (T): e.g., ST Strategy: Maxi-Mini WT Strategy: Mini-Mini
lack of energy, e.g., use of strengths to e.g., retrenchment
competition, and areas cope with threats or to liquidation or joint venture
similar to those shown in avoid threats
the “opportunities” box
above

Four Alternative Strategies

1. The WT strategy (see the lower right-hand quadrant) is to minimize both weaknesses
and threats and may require the company, for example, to form a joint venture,
retrench, or even liquidate.

2. The WO strategy attempts to minimize the weaknesses and maximize opportunities.

Thus, a firm with certain weaknesses in some areas may either develop those area
within the enterprise or acquire those needed competencies from the outside (such as
technology or persons with needed skills) making it possible to take advantage of
opportunities in the external environment.

3. The ST strategy is based on the organization’s strengths to deal with threats in the
environment. The aim is to maximize the former while minimizing the latter. Thus, a
company may use its technological, financial, managerial, or marketing strengths to
cope with the threats of a new product introduced by its competitor.

4. The most desirable position is when a company can use its strengths to advantage of
opportunities (SO strategy). Indeed, it is the aim of entries to move from other positions
in the matrix to this situation.

Portfolio Matrix is a chart used to define products in terms of both the growth in their
industry and their specific market share. To create a portfolio matrix, first draw a
diagram with four squares. The vertical axis of the chart is for growth in the industry,
and the horizontal axis is for the market share of the specific product within that
industry.

Product Portfolio Matrix

It classifies the products based on two dimensions: Business growth rate and relative
market position

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Premising and Forecasting

Planning Premises are defined as the anticipated environment which plans are
expected to operate. They include assumptions or forecasting of the future known
conditions that will affect the operation of the plans.

Strategies
- the determination of long-term goals and objectives of an organization, the
adoption of the course of action and the allocation of resources necessary to
carry out these goals.

Policies
- are plans which are general statements or undertaking which guide or channel
thinking and action in decision making of subordinates and being guides it must
allow for some direction.

32
Strategies & Policies are closely related. They provide direction for the organization
and form the basis of operational plans.

Strategic Planning Process

The structure shows the TWOS (Threats, Weakness, Opportunity, and Strength
matrix which is a tool for situational analysis).
Strategic Planning is deceptively simple: Analyse the current and expected future
situation, determine the direction of the firm and develop means for achieving the
mission on the other hand, Planning is done in an environment of uncertainty.

Basic Principles
1. In all levels managers carry the managerial functions
2. Management applies to any kind of organization
3. The aim of managers: to create surplus, efficiency & economy.

What is management level?

Managerial levels – hierarchy/bureaucratic organization/pyramid

33
 Strategic

(corporate strategies)

Coordinative Level

Operational level

a.) Strategic – responsible for formulation of general policies, Laws; setting the
direction of Organization.
 Organization direction– mission, mission, corporate strategies and goal.
b.) Coordinative level – Secretaries, Commissioners, Heads, Regional Coordinator
& etc.
- they may set the guidelines
- after they comply their task, they forward it to the operational level.
c.) Operational level – Operational plans
- the objective here is doable, implementable.

The plans must be:

S - Specific
M- Measurable
A - Attainable
R - Realistic
T - Time bounded

34
 6. Assess 1. Understand
and adjust the global
the plan as environment
an ongoing and emerging
process. trends.

5. Execute Strategic 2. Assess the

strengths,
and manage
the strategy Planning Cycle weaknesses,
opportunities
action.
and threats.

4. Develop 3. validate
goals, or modify
strategies the
and actions organization
's mission
and vision.

The Principle of the Strategy & Policy Framework

- The more strategies and policies are clearly understood and implemented in
practice, the more consistent and effective will be the framework for enterprise
plans.

35
The PORTFOLIO MATRIX: A tool for Allocating Resources

BUSINESS GROWTH RATE High

STARS QUESTION
MARKS

Low
CASH DOGS

COWS
S
trong Weak
Relative competitive position (market share)
Stars – strong market share
- high growth rate

Question Marks – weak market share& a high growth rate

- need cash investment to become star.

Cash cows – strong market share but lower in growth rate established in the
market.
- low market price

Dogs – low growth rate

- not profitable

Major kinds of Strategies & Policies

 Growth
 Finance
 Organization
 Personnel
 Public Relations
 Products or Services
36
  Marketing

Successful Implementation of Strategies

1.) Communicating strategies to all key decision-making managers.

2.) Developing and communicating planning premises.
3.) Ensuring that action plans contribute to and reflect major objectives & strategies.
4.) Reviewing strategies regularly.
5.) Developing contingency strategies and programs.
6.) Making the organization structure fit planning needs.
7.) Continuing to emphasize planning and implementing strategy.
8.) Creating a company climate that forces planning.
ORGANIZING
Meaning:

 Is a function of management which follows planning. It is a function in

which the synchronization and combination of human, physical and
financial resources takes place. All the three resources are important to
get results.
 According to Chester Barnard, “Organizing is a function by which the concern is
able to define the role positions, the jobs related and the co-ordination between
authority and responsibility.
 It is the process of bringing together physical, financial and human resources and
developing productive relationship amongst them for achievement of
organizational goals. According to Henry Fayol, “To organize a business is to
provide it with everything useful or its functioning i.e. raw material, tools, capital
and personnel’s”. To organize a business involves determining & providing
human and non-human resources to the organizational structure.

 “It is a process that refers to identifying and grouping of activities to be

performed, defining and delegating authority, specifying responsibility and
establishing relationships to enable people to work together effectively in
accomplishing objectives.”

Structure:
Organizing is a set of relationships that defines vertical and horizontal
relationships amongst people who perform various tasks and duties. The organizational
task is divided into units, people in each unit (departments) are assigned specific tasks
and their relationship is defined in a way that maximizes organizational welfare and
individual goals. The relationship amongst people is both vertical and horizontal.

37
  As vertical relationships, the authority-responsibility structure of people at
different levels in the same department is defined.
 As horizontal relationships, authority-responsibility structure of people working
in different departments at same levels is defined.

Organization structure specifies division of work and shows how different

functions or activities are linked; to some extent it also shows the level of specialization
of work activities. It also indicates the organization’s hierarchy and authority structure,
and shows its reporting relationships. — Robert H. Miles
Organizing as a structure is a network of relationships (authority-responsibility
structure) amongst all those who are part of the organization, working at any level in any
department. It defines relationships between jobs at various levels and people working
at those jobs. It emphasizes more on positions than people.
Process of organizing:
Organizing, like planning, is a process which is to be carefully worked out and
applied. This process involves determining what work is needed, assigning those tasks,
and arranging them in a decision-making framework (organizational structure). If this
process is not conducted well, the results may be confusion, frustration, loss of
efficiency, and limited effectiveness. The process of organizing consists of the following
five steps:
1. Identification of activities – Each organization exists for fulfilling a specific
purpose. This purpose identifies the activities which are performed by the
organization. For example, in a manufacturing organization, production of the
goods and their selling are the major activities in addition to the routine activities.
And these activities are in variance with the activities of a service organization or
an organization involved in the trading activities.
2. Grouping of Activities – Once the activities have been identified, then there is a
necessity that they are grouped. The activities are grouped in various ways. The
activities which are similar in nature can be grouped as one and a separate
department can be created.
3. Assignment of Responsibilities – Having completed the exercise of identifying,
grouping and classifying of all activities into specific jobs, the individual
employees comes into picture since the employees are to be assign with the
responsibilities to take care of activities related to the specific jobs.
4. Granting Authority – On the basis of specific responsibilities given to individual
employees, they are to be provided with the necessary authority for the
discharge of the assigned responsibilities in order to ensure their effective
performance and in turn the performance of the organization.
5. Establishing Relationship – This is a very important part of the organizing
function since each employee in the organization is to know as to whom to report
and which are the employee who are to work with him. This establishes a
38
 structure of relationships in the organization which helps to ensure that the
organization has clear relationships. This structure of relationships also facilitates
the delegation.

Types of Organizational
Structure:
1. Functional
-If you’ve had a job, you
likely worked in a functional
organizational structure.
The functional structure
is based on an organization
being divided up into smaller
groups with specific tasks or
roles. For example, a company
could have a group working in
information technology, another
in marketing and another in
finance.
Each department has a manager or director who answers to an executive a level
up in the hierarchy who may oversee multiple departments. One such example is a
director of marketing who supervises the marketing department and answers to a vice
president who is in charge of the marketing, finance and IT divisions.
An advantage of this structure is employees are grouped by skill set and function,
allowing them to focus their collective energies on executing their roles as a
department.
One of the challenges this structure presents is a lack of inter-departmental
communication, with most issues and discussions taking place at the managerial level
among individual departments. For example, one department working with another on a
project may have different expectations or details for its specific job, which could lead to
issues down the road.
In addition, with groups paired by job function, there’s the possibility employees
can develop “tunnel vision” — seeing the
company solely through the lens of the
employee’s job function.

2. Divisional
Larger companies that operate
across several horizontal objectives
sometimes use a divisional organizational
structure.
39
 This structure allows for much more autonomy among groups within the
organization. One example of this is a company like General Electric. GE has many
different divisions including aviation, transportation, currents, digital and renewable
energy, among others.
Under this structure, each division essentially operates as its own company,
controlling its own resources and how
much money it spends on certain projects
or aspects of the division.

Additionally, within this structure,

divisions could also be created
geographically, with a company having
divisions in North America, Europe, East
Asia, etc.
This type of structure offers greater
flexibility to a large company with many
divisions, allowing each one to operate as
its own company with one or two people
reporting to the parent company’s chief
executive officer or upper management staff.
A downside to this type of
organizational structure is that by focusing
on divisions, employees working in the
same function in different divisions may be
unable to communicate well between
divisions. This structure also raises issues
with accounting practices and may have
tax implications.

3. Matrix
A hybrid organizational structure, the
matrix structure is a blend of the functional
organizational structure and the projectized
organizational structure.

40
 In the matrix structure, employees may report to two or more bosses depending
on the situation or project. For example, under normal functional circumstances, an
engineer at a large engineering firm could work for one boss, but a new project may
arise where that engineer’s expertise is needed.
The matrix structure is challenging because it can be tough reporting to multiple
bosses and knowing what to communicate to them. That’s why it’s very important for the
employees to know their roles, responsibilities and work priorities.
Advantages of this structure is that employees can share their knowledge across
the different functional divisions, allowing for better communication and understanding
of each function’s role. And by working across functions, employees can broaden their
skills and knowledge, leading to professional growth within the company.
4. Flatarchy
While the previous three types of organizational structures may work for some
organizations, another hybrid organizational structure may be better for startups or
small companies.
Blending a functional structure and a flat structure results in a flatarchy
organizational structure, which allows for more decision making among the levels of an
organization and, overall, flattens out the vertical appearance of a hierarchy.
The best example of this structure within a company is if the organization has an
internal incubator or innovation program. Within this system, the company can operate
in an existing structure, but employees at any level are encouraged to suggest ideas
and run with them, potentially creating new flat teams. Lockheed Martin, according to
Forbes, was famous for its skunkworks project, which helped develop the design of a
spy plane.

AUTHORITY AND POWER

Authority is often used interchangeably with power; however, their meanings differ:
• Power is the ability to order or accomplish a goal or to instruct others
• Authority refers to a claim of legitimacy, the justification and right to exercise that
power.

Authority may be seen as institutionalized power. For example, a police officer has
authority to `stop' a motorist. The motorist is legally obliged to comply. Similarly,
managers are said to possess a `right to manage'. Employees are obliged to obey the
employer's instructions provided these are lawful and within the scope of the contract of
employment.
Types of Power
As previously stated, authority is a manifestation of the use of power. Social
psychologists John French and Bertram Raven conducted studies on power in 19595
which identified five bases of personal power:

41
 1. Positional Power. (Also: Formal, Legitimate, and Authoritative.) This is
associated with having status or formal job authority. This comes from the belief
of the person’s subordinates that the person has the right to make demands, and
expect compliance and obedience from others.

2. Reward Power. This derives from having the capacity to provide rewards to
others, resulting from one person's ability to compensate another for compliance.
Whilst finical ‘rewards’ are rarely available to project leaders; rewards by way of
praise, recognition and opportunity are equally effective.

3. Expert Power. This is based on a person's own experiences, superior skills and
knowledge; or more precisely it is based on the followers’ perceptions of the
leader’s competence – generally this has to be demonstrated.

4. Referent Power refers to the ability of a person to influence others because of

the follower's loyalty, respect, friendship, admiration, affection, desire to gain
approval from, or desire to be associated with the person.

5. Coercive (or Punitive) Power is exercised through fear. This power is derived
from having the perceived capacity to penalise or punish others for noncompliance.

There are two groups of power in the French and Raven model:
 One group is about the person: expert power and referent power. Most people
carry these with them from job to job but a new team may take time to appreciate
these abilities – these are most closely associated with leadership and
motivation.
 The other group is about the context: legitimate power, reward power and
coercive power which are more job specific (but are available immediately on
appointment to a new role). These are more closely associated with
management and hierarchy.

Other forms or sources of power that fit within these five include:
 Informational – power derived from controlling the flow of information;
 Situational – power taken or assumed due to a ‘situation’ typically a crisis where
someone need to provide direction;
 Charismatic/Personal – power derived from the leader's exceptional personal
qualities (charm, communication skills) or accomplishments;
 Relational – power gained from being influential and connected within networks
of people;

42
  Manipulative – power gained by creating or changing the perceptions of others,
this can include: persuasion and oratory (the effective use of argument),
ingratiation (using flattery or similar to gain cooperation), pressure-based (limiting
choices or options), guilt-based (imposing an obligation or sense of duty).

Sources of Power

The characteristics of a situation affect or determine power. Important structural sources

of power include knowledge, resources, decision making and networks.

Knowledge as Power: Organizations are information processors that must use

knowledge to produce goods and services. Intellectual capital represents the
knowledge, know-how, and competency that exist in the organisation which can provide
an organisation with a competitive edge in the marketplace. Outside the organisation,
the situation is reversed; protecting the organisations intellectual property is vital to
maintaining its competitive power in the market.

Control of Resources as Power: Organisations need a variety of resources, including

money, human resources, equipment, materials, and customers to survive. The
importance of specific resources to an organisation's success and the difficulty in
obtaining them vary from situation to situation. Resources (goods) can be:
 Material: physical things or people others need;
 Positional: geographical or other ‘positions’ that can restrict or allow transactions
between two other parties, eg, the Panama Canal or a person controlling access
and timing of meetings;
 Ideational: goods of a virtual nature that only exist as long as there is a need for
them; eg, a facilitator or mediator is only needed whilst there is a dispute.

Decision making as Power: The decision-making process in an organisation creates

more or less power differences among individuals or groups. Managers exercise
considerable power in an organisation simply because of their decision-making ability.

Networks as Power: The existence of structural and situational power depends not
only on access to information, resources and decision making, but also on the ability to
get cooperation in carrying out tasks.

Bases of Power
(Amitai Etzioni identified three types of organizational power: coercive, utilization,
and normative.)

43
  Coercive power forces people to do something through threat, intimidation or
violence. It is appropriate for use in situations where other options are not viable
but violence should only be used within the parameters of legal authority.

 Utilitarian power influences people by providing them with rewards and benefits.
Managers prefer this form of power if it is available, and it is appropriate for
businesses and other organisations.

 Normative power influences members through peer pressure, or by letting the

individuals know that they are expected to act according to the overall wishes of
the group. It is the appropriate form of power for an organisation with moral or
‘connected’ membership.

Authority

The effective use of authority is a key part of any management role, including project
management, and an element of leadership. Within organisations, management
authority is defined as the power or right to give orders, instructions or directions, make
decisions, and enforce obedience; but this is rarely an absolute power; a person has a
greater or lesser degree of authority depending on a range of circumstances including
their personal attributes, the management position held, the culture of the organisation
and the willingness of subordinates and others being directed to accept the person’s
authority.

Max Weber’s 1922 essay, The Three Types of Legitimate Rule (Die drei reinen Typen
der legitimen
Herrschaft) discusses the basis of the authority used by rulers. The term ‘rule’ in the title
was changed to ‘authority’ in later English translations of his work.

Weber’s essay focused on state political power (the power to rule), but is also relevant
to understanding the sources of management power and authority. He defines three
categories of legitimation (which he calls pure types) used to justify the right of rulers to
rule, and managers to manage:

• Legal authority is based on a system of rules that is applied administratively

and judicially in accordance with known principles. The persons who administer
those rules are appointed or elected by legal procedures.
• Traditional authority is based on a system in which authority is legitimate
because ‘it has always existed’.

44
 • Charismatic authority is based on the charisma of a leader who shows that
he or she possesses the right to lead by virtue of their personal attributes.

Summary
The relationship between Weber’s three types of authority and the five types of personal
power is set out below.

STAFFING/HUMAN RESOURCE MANAGEMENT

The success of any organization doesn’t depend upon the physical and financial
resources but it depends upon the utilization of these resources by human resources.
So, hardworking efficient people are the most important asset of an organization for its
success. Staffing function is concerned with the bringing right and efficient people in the
organization
After an organization's structural design is in place, it needs people with the right skills,
knowledge, and abilities to fill in that structure. People are an organization's most
important resource, because people either create or undermine an organization's
reputation for quality in both products and service.

Staffing is a managerial function of filling and keeping filled positions in the organization
structure which is achieved by identifying number of employees required followed by
recruitment, selection, placement, promotion, appraisal and development of personnel.

Need and Importance of staffing

Staffing function gives more emphasis on the human elements such as attitude,
aptitude, commitment, loyalty while selecting the right person for the right job.
Researches on various aspects of staffing such as recruitment, selection,
compensation, incentives, training and development are utilized for better results.
Staffing function has been assumed on greater importance these days because of rapid

45
development of technology, increasing size of organization and complicated behavior of
human beings.
Need and Importance of staffing - It avoids disruption of work by indicating in advance
the shortage of personnel. This function improves the job satisfaction and morale of the
employees through objective performance appraisal and fair rewarding system. All other
resources will become waste if there is no right kind of personnel working in the
organization.
Staffing as part of Human Resource Management - In small organization, no doubt,
the number of personnel will be less as well as the volume of staffing activities and its
complexity will be limited to certain extend (i.e. confined to recruitment, selection,
compensation and welfare). So, it will be possible for all the line mangers to perform all
duties related to employees in small organizations.
Staffing as part of Human Resource Management - But, as organizations grow into
large size and number of persons employed increases, the duties related to human
resources will become more complex and the volume of human resource activities will
extended to large extend such as Estimation of human resource requirement,
Recruitment, Selection, Training, Development, Maintenance, Compensation, Incentive
plans, Protecting health and physical conditions, Liaison with government and trade
unions, Providing social security, welfare activities, Review and audit of personnel
policies etc.
Evolution of Human Resource Management - The evolution of human resource
management can be understood from the following points. Due to the emergence of
industrial revolution, trade union activities became very active.

Human resource management (HRM), or staffing, is the management function

devoted to acquiring, training, appraising, and compensating employees. Solid HRM
practices can mold a company's workforce into a motivated and committed team
capable of managing change effectively and achieving the organizational objectives.

46
47
RECRUITMENT- refers to the overall process of attracting, shortening, selecting and
appointing suitable candidates for jobs within the organization Can also refers to process
involve in choosing individual for unpaid role (Wikipedia)

JOB DESCRIPTION – is a written narrative that describe the general tasks, or other related
duties and responsibilities of a position it may specify the functionary to whom the position
reports specification such as the qualification or skills needed by the person in the job
(Wikipedia)

POSITION DESCRIPTION - is a structured documents assigning week to a given position

as it is expected to be performed after customary orientation and training it will tell the reader
what the worker is responsible for doing how it is done and how it is relates to other position
within and outside the work (Wikipedia)

Ex. Eligibility and master degree

JOB SPECIFIACATION – the knowledge, skills and abilities that are required to perform a job in
an organization jobs specification covers aspects like education, work experience, managerial
experience etc. which can help accomplish the goals related to the job (Wikipedia)

ex. Educational qualification , experience, skill and knowledge , personality traits and
characteristics

JOB ANALYSIS

JOB DESCRIPTION JOB

SPECIFICATION

-JOBS TITILE -
QUALIFICATION

-JOBS LOCATION -EXPERIENCE

48
and appointing suitable candidates for jobs within the organization Can also refers to
process involve in choosing individual for unpaid role (Wikipedia)
JOB DESCRIPTION – is a written narrative that describe the general tasks, or other
related duties and responsibilities of a position it may specify the functionary to whom
the position reports specification such as the qualification or skills needed by the person
in the job (Wikipedia)
POSITION DESCRIPTION - is a structured document assigning week to a given
position as it is expected to be performed after customary orientation and training it will
tell the reader what the worker is responsible for doing how it is done and how it is
relates to other position within and outside the work (Wikipedia)
Ex. Eligibility and master degree
JOB SPECIFIACATION – the knowledge, skills and abilities that are required to
perform a job in an organization jobs specification covers aspects like education, work
experience, managerial experience etc. which can help accomplish the goals related to
the job (Wikipedia)
ex. Educational qualification, experience, skill and knowledge, personality traits
and characteristics
JOB ANALYSIS

JOB DESCRIPTION JOB

SPECIFICATION
-JOBS TITILE QUALIFICATION
-JOBS LOCATION EXPERIENCE
-JOBS SUMMARY TRAINING
-REPORTING TO SKILLS
-WORKING CONDITION RESONSIBILITIES
-JOB DUTIES EMOTIONAL CHARACTERISTICS
-MACHINE TO BE USE SENSORY DEMAND
-HAZARD

SEARCH
49
 REQUIRMENTS

CANDIDATE
RECRUITMENT

HIRING SKILL

INTERVIEW

JOB REQUIREMENTS
Job requirements are “must haves” that an employer is looking for in a candidate
for a certain job position. Job requirements aren’t just a list of specific qualifications,
education, knowledge and skills needed for a particular position.

Job requirements are qualifications and skills necessary for a certain position.

Job requirements are usually written in form of a list that contains the most
important qualifications that a candidate must possess in order to be able to perform
certain job duties.
These qualifications include:
 Work experience - types and amounts (years) of work experience
 Skills (soft skills and/or technical skills)
 Specific knowledge
 Education level and type
 Professional licenses, accreditations and certifications
 Personal qualities and attributes
 Languages
 Physical abilities.
Importance of job requirements
Job requirements are a crucial part of both job descriptions and job postings. They
are equally important for both employers and job seekers.

50
For employers
Employer use job requirements as a way of preselecting potential candidates.
Job requirements are used to communicate employer’s expectations from job seekers.
By laying out clearly defined job requirements, employers can attract the right type of
candidates. Over or under qualified candidates will be turned away from applying,
thus saving employers a lot of time and money in the long run.
For job seekers
For job seekers, job requirements are the crucial part of job postings. Job
requirements section of the job ads clearly states what an employer is looking for. That
way, potential candidates can know what is required of them before applying. If
they match all the job requirements criteria, it means they are a good fit for a job.

Job Design -is the process of defining how work will be performed and what task will be
required in a given job. (Noe/Hollenbeck/Gerhart/wright, 2009)
Job redesign – a similar process that involves changing an existing job design
Purpose: to improve quality, work efficiency and productivity

POSTION REQUIREMENTS AND JOB DESIGN

Selecting a manager effectively requires a clear understanding of the nature and
purpose of the position which is to be filled. An objective analysis of position
requirements must be made, and, as far as possible, the job must be designed to meet
organizational and individual needs. In addition, positions must be evaluated and
compared so that the incumbents can be treated equitably. Among other factors to
consider are the skills required — technical, human, conceptual, and design — since
these vary with the level in the organizational hierarchy and the personal characteristics
needed by managers.
Identifying Job requirements:
In identifying job requirements, firms must answer question such as these: What
has to be done in this job? What background knowledge, attitudes, and skills are
required? Since positions are not static, additional questions may have to be
considered: Can the job be done differently? It so, what are the new requirements?
Finding answer to these and similar questions requires that the job be analyzed.
This can be done through observation, interviews, questionnaires, or even a system
analysis. Thus, a job description, based on job analysis, usually lists important duties,
authority- responsibility, and the relationship to other positions. More recently, some
firms have also included objectives and expected results in job descriptions.
There is, of course, no foolproof rule for designing managerial jobs. Nevertheless, firms
can avoid mistakes be following some guidelines.
Appropriate scope of the job:
A job narrowly defined provides no challenge, no opportunity for growth, and no sense
of accomplishment. Consequently, good managers will be bored and dissatisfied.
51
Full-time challenge of the job:
Sometimes managers are given a job that does not require their full time and effort.
They are not challenged by their task and they feel underutilized. Consequently, they
often meddle in the work of their subordinates, who then also feel that they do not have
sufficient authority and discretion to do their jobs. Some time ago, when a utility
company asked for help in solving organizational conflicts, it was found that people did
not have each other’s way.
Managerial skills required by job design:
Generally, the design of the job should start with the tasks to be accomplished. The
design is usually broad enough to accommodate people’s needs and desires. But
writers on management suggest that it may be necessary to design the job to fit the
leadership style of a particular person.
MATCHING QUALIFICATION WITH JOB REQUIREMNETS
Employers will usually only spend a few seconds deciding if you are a good
enough fit for a job to warrant a more thorough review of your resume and cover letter,
so you need to make sure that it is immediately obvious that you have many of the
skills, experiences, and qualities that they value most highly.
Analyze the Job Listing
Job postings are typically broken out into several sections. Expect to see information
about the company, details on the desired qualifications of applicants, and a description
of the responsibilities involved in the role. Some are brief, while others include more
details about the job and the company..
Make a List
If the job is a good match, the next step is to make a connection between your skills and
the employer's requirements by creating a list of the preferred qualifications for the ideal
candidate for your target job. If a job advertisement is well-written and detailed, you
might be able to assemble much of your list right from the ad.
Extract any of the keywords describing skills, qualities, or experiences which the
employer has listed as required or preferred.
Get More Information
Sometimes ads for jobs are very short and don't reveal much about the employer's
expectations. Try looking on the company's website, since there might be a longer
description in the human resources section of their site than in the ad you saw.
Need Skills to Include?
When you're not sure about what skills or qualities to include, check this list of skills for
resumes, cover letters, and interviews. It includes lists of general skills most wanted by
employers, plus skills for a variety of occupations. Include the most relevant skills in
your resume and cover letter.
Make a Match
Once you have assembled a detailed list of the qualifications for your target job, review
each item on the list and try to think of how you might prove that you possess that
52
asset. Write a sentence about as many of the qualifications as possible, detailing how
you used that skill or exhibited that quality in a work, volunteer, academic, or co-
curricular role.
Prioritize Your Qualifications in Your Cover Letter
Prioritize the sentences about your qualifications and incorporate the hardest-hitting
statements into your cover letter. Compose a thesis statement for the beginning of
your cover letter which references 2-4 assets which make you an excellent fit for the
job.
Review Your Resume
Review your existing resume and make sure that you have incorporated as many
statements about the preferred qualifications for the job as possible. List the highest
priority phrases at the beginning of your descriptions to get the most attention.
During Job Interviews
Prior to interviewing, review the list of qualifications you created when working on your
job application. Be prepared to discuss the specific skills and assets you have during
job interviews. You can also reiterate what qualifies you to be selected in your job
interview thank-you notes.

CSC SELECTION PROCESS AND RULES, SELECTION TECHNIQUES, AND

TOOLS, ORIENTATION OF NEW EMOLOYEES
The Civil Service Commission (CSC) reminded government agencies to strictly abide by
the rules on publication and posting of vacancies to ensure transparency and equal
opportunities in the recruitment and hiring of government workers.

The CSC said that vacant positions authorized to be filled should be published and
posted in at least three (3) conspicuous places for a period of at least 10 calendar days
for national government agencies, government owned or controlled corporations, and
state universities and colleges (per Republic Act No. 7041 or An Act Requiring Regular
Publication of Existing Vacant Positions in Government Offices, Appropriating Funds
Therefore, And For Other Purposes), and at least 15 calendar days for local
government units (per Republic Act No. 7160 or the Local Government Code of 1991).
It added that, under the new 2017 Omnibus Rules on Appointments and Other Human
Resource Actions (ORAOHRA), which took effect on August 17, the screening,
evaluation, and deliberation of applicants by the agency’s Human Resource Merit
Promotion and Selection Board (HRMPSB) should begin only after the mandatory
publication period.
The certification on the publication and posting of the vacant position, including the date
the deliberation was conducted by the HRMPSB, should be duly signed by the
authorized Human Resource Management Officer at the back of the appointment form.

53
“We included this new provision in the ORAOHRA in light of reports that some agencies
post their vacancy in compliance with the publication requirement, but they tell
interested applicants that the position has already been filled up,” the CSC said.
The CSC added that “this practice runs opposite to the intent of the law, that is, to give
both internal and external applicants equal opportunity to vie for vacancies and to
ensure fairness and transparency in the recruitment and selection process in
government.”
The ORAOHRA has also extended the validity of a publication from six months to nine
months, and in case no appointment is issued within the nine-month period, the agency
has to re-publish and re-post the vacancy. The CSC said that applications arising from a
re-published vacancy should be assessed according to the agency’s standard
recruitment procedures.
Another requirement in the ORAOHRA is the submission of a certification, signed by the
Chairperson of the HRMPSB at the back of the appointment, which specifies that the
majority of the HRMPSB members was present during the deliberation. Alternatively, a
copy of the proceedings or minutes of the HRMPSB deliberation may be submitted
together with the appointment.
The CSC said that this new provision places the responsibility on the agency’s
HRMPSB to undertake a fair and impartial assessment of candidates, thus ensuring that
appointees in government are hired based on merit and fitness, not on personal whim or
political favor.

New rules
The 2017 ORAOHRA, which the CSC launched to the public on August 30, 2017 in its
central office in Quezon City, updates and consolidates the various issuances on
appointments and other human resource (HR) actions in the civil service. It took effect
on August 17, 2017.
The Omnibus Rules contains clear definitions and guidelines on the different types of
employment status (e.g., permanent, temporary, substitute, coterminous, fixed term,
contractual, casual); nature of appointment (e.g., original, promotion, transfer,
reemployment, reappointment, reinstatement, demotion, reclassification); and other HR
actions (e.g., reassignment, detail, designation).
It devotes entire sections to rules on probationary period, effectivity and submission of
appointments, qualification standards, resignation, and prohibited acts, among others.
Highlights of the 2017 ORAOHRA include the following:
• Serves as ready guide for the entire appointment process in the first and second level
including executive/managerial positions
• Aligns the rules on appointments with the Program to Institutionalize Meritocracy and
Excellence in Human Resource Management (PRIME-HRM) standards particularly in
the area of recruitment, selection and placement

54
• Empowers and clarifies roles of appointing officers and Human Resource
Management Officers (HRMOs) in the recruitment and selection process
• Protects the interests of the appointees by providing clear guidelines on the nature
and status of appointments and other human resource actions such as reappointment
and reassignment
• Renames Promotion and Selection Board (PSB) to Human Resource Merit Promotion
and Selection Board (HRMPSB) with corresponding shift in role from assistorial to
recommending body for appointment
• Incorporates common and specific requirements for each type of appointment
• Prescribes user-friendly and simplified forms for the HRMOs and the CSC
• Supports maintenance of electronic database of agency human resource information
The CSC aims to integrate competencies in human resource systems of government
agencies, starting with recruitment. Thus, the Competency-Based Recruitment and
Qualifications Standards (CBRQS) was born. With this program, the CSC recognizes
that hiring and retaining the best employees will lay the foundation for developing high
performing, competent, and credible civil servants.
A competency is often defined as a set of observable, measurable, and vital skills,
knowledge, and attitudes that are translations of capabilities deemed essential for
organizational success.
Qualification Standards + Competencies
The current recruitment system in the Philippine civil service is based on Qualification
Standards (QS), a minimum set of requirements comprised of education, eligibility,
training, and experience.
The CBRQS adds competencies to the minimum QS requirements to improve accuracy
in assessing a candidate’s fitness to a particular job.
Moreover, the competency framework or model is aligned to the agency’s strategic
thrusts, ensuring that each employee is able to contribute to organization-wide goals.
Why Competency-Based Recruitment?
Competencies serve as objective guide in the assessment of candidates; hence it
improves accuracy in assessing candidate’s fitness to a particular job.
Competency-based recruitment minimizes hiring errors as it helps prevent interviewers
and selectors from assessing interviewees on the basis of characteristics that are not
relevant to the job or from making hasty decisions.
Competency-based recruitment leads to a standardized or structured selection process
since the same metrics are used to assess all applicants to the same position.
Competency-based recruitment provides clarity for the recruiters and candidates as well
about the requirements for the vacant position to be filled.
Status of the Program
At present, the CSC has begun applying competencies to its own recruitment process
as it hopes to be a model in competency-based human resource management for other
government agencies.
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Orientation Policy
Managers orient employees to help them achieve a satisfactory performance level in
their newly assigned duties as quickly as possible while being integrated into the civil
service.
An orientation program helps the employee understand their assigned duties, terms and
conditions of employment as well as the organizational culture. It provides the following
information:
• assigned duties and responsibilities documented in a position description
• performance standards
• employment terms and conditions, including the Oath of Office and the Conflict of
Interest Policy
• where to find policies related to human resource management and development,
staffing, labour relations, compensation & classification and employee health
• employee benefits, payroll and benefit deductions
• introduction to the people in the work unit and other key stakeholders
• introduction to payroll and human resources staff
• conditions of employment. If the employee is included in the MGEU bargaining unit, a
Union representative shall be provided with the opportunity to meet with the newly hired
employee for up to 15 minutes during regular working hours. If the employee is
excluded from a bargaining unit, provide information on rights and responsibilities under
The Civil Service Act and Regulations.

PROMOTION, TRANSFER, AND SEPARATION

- A movement to a position in which responsibility and presumably, prestige is

increased.

 Upward movement Program Officer

 Shifting
 Vertical Movement
 Advancement Volunteer

- A Promotion involves a change from one job to another that is better in terms of
status and responsibility E.B. Flippo
- A Promotion is the transfer of an employee to a job that pays more money or that
enjoys some preferred status. Scott and Spreigal

Examples of Promotion:
HR Generalist HR Generalist and Employee Coordinator

56
Dual Role
HR Assistant HR Assistant

HR Manage HR Manager of Human Resource and Administration

HR Generalist HR Manager

HR Director

HR Manager

Purpose and Objectives of Promotion:

 To reorganized an individual performance and reward him for his work.
 To put the employee in a position where he will be of greater value to the
company/organization.
 To promote job satisfaction among the employee and give them an
opportunity for unbroken continuous service.
 To build up morale, loyalty and sense of belonging on the part of the
employees.
 To demonstrate effective career development plans.
 To attract among employees a feeling of contentment with their present
conditions and encourage them to succeed in the company/Organization.
Types of Promotion:
 Open Promotion – an Organization or Company consider all
individual/employee.
 Close Promotion – an Organization or Company in which the candidate
for higher position or vacancies is restricted and not open for all the
individual.
 Multiple chain Promotions – which provides for systematic linkage of each
position to several others.
 Dry Promotion – are those are given in lieu of increase in compensation.
 Horizontal promotion – promotions have similar kind of work.
 Vertical promotion – those which change the nature of the work.

Promotion Program:
- It must provide for a uniform distribution of promotional opportunities throughout
the organization.

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  A sound promotion program is that it must tell employees on advance
what avenues for advancement exist.
 There should be some definite system for the selection of employees who
are to be promoted from within the promotion zone.
 Finally, all sanction must be approved by the concerned line heads.
 A sound promotion policy must provide for suitable system of follow up
and review.
Promotion Policy
Each organization should strike a balance between the internal source of personal
promotion and external source of recruitment on one hand and between merit and
ability as against length of service on the other.
Characteristics of a sound promotion policy:
1. It should have consistency and be correlated to the career planning.
2. It should be fair and impartial
3. It should be planned activity, so that there are no phenomena of bunching or no
period of promotional drought.

Bases of Promotion
Seniority
- Length of recognized service in an organization
- The calculation of time from when an employee served for how many years in the
company
- Person in the lower grade shall be promoted as and when there is an opening in
the higher position
- Seniority is suggested as the criteria for the promotion on the plea that there is
positive correlation between length of the service and talent
Merit
- Means ability to work
- It denotes an individual employee’s skill, knowledge, ability efficiency and
aptitude as measured from educational, training and past record
- if the merit is adopted as basis of promotion then the person in the lower grade,
no matter his junior most in the company, shall be promoted.
- It encourages all employee to improve their efficiency
Seniority Merit

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 Advantages - Easy to measure the length of - It implies the knowledge,
service skills and performance
- Trade union generally record of an employee.
emphasis in seniority - It motivated competent
- Security and certainty is also employees to work hard
plus point and helps acquire new
- Minimize the scope of skills.
grievances and conflict - It helps maintain the
- Reducing labour turnover efficiency of the
- It provides a sense of organization by
satisfaction to senior reorganizing talent and
employees performance
- It helps to attract and
retain young and
promising employees in
the organization
Disadvantages - The assumption that the length - Measuring Merit is not
of the service indicates talent is easy, subjective
not valid because beyond a judgment may involve.
certain age of a person may not - Many Employee,
learn particularly Trade unions
- Performance and potential of distrust the
an individual in not recognized management’s integrity
- It demotivates and demoralize in judging merit.
the young employees who are - When younger
talented employees are promoted
- Kills the zeal and interest for over the older one, the
self-development older one employees
may feel insecure.
- They may leave the
organization as well.

Transfer
- A transfer is a horizontal or lateral movement of an employee from one job,
section, department, shift plant or position to another at some other place where
salary, status and responsibility are the same.
Purpose of Transfer
- To meet organizational needs
- To meet employees, own request.

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 - To utilize properly service of an employee Swhen he is not performing and
management feels he may be useful elsewhere.
- To increase versatility of the employee
- To adjust the workforce
- To replace new employee by an employee who has been in the organization for
a sufficiently long time.
- To penalize employee or due to avoid trade union pertaining issues.
Policy for Transfer
- The policy must be impartial and known to each employee.
- The basis of the transfer should be indicated
- Decide the rate of pay to e given to the transferee
- Intimate the fact of transfer to the person concerned well in advance.
- Should be in writing and duly communicated to all concerned.
- Locate the authority in some officer who may initiate and implement transfers.
- Transfer cannot be made frequently and not for the sake of transfer only.
- Facilities such as leave, special allowance for shifting, etc. should be clearly
prescribed to the transferee

Types of Transfer

 Intradepartmental transfers
o Within same section of the same department and effected without the
issue of any transfer order to the employee.
 Interdepartmental Transfer
o From one department to another are decided by mutual consultations
among the departmental heads when such transfers are of the
permanent nature of long duration.
Benefits of Transfer
 Increase in productivity and effectiveness of the organization
 Greater job satisfaction to employees.
 Stabilize fluctuating job needs.
 Improve employee skills.
 Remedy for wrong placement
 Improve labour relationships
 Develop employees for future promotions
 Avoid monotony and boredom

DEMOTION

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  Demotion has been defined as the assignment of an individual to a job of
lower rank and pay usually involving lower level of difficulty and responsibility.
 Demotions serve as a useful purpose in the sense that they keep the
employees alert and alive to their responsibility and duties.
Couse of Demotion
 When department are combined, bosses are often required to accept lower
level position since jobs are eliminated
 Inadequacy on the part of the employee in terms of job performance, attitude
and capability
 When older employees are unable to adjust as per change in technology.
 Ill health or personal reasons.
 Demotion is also used as disciplinary measure.
SEPARATION
- Means cessation of service with the organization for one or other reason
The employee may be separated from HR payroll due to:
 Resignation
 Discharge and dismissal
 Suspension and retrenchment
 Lay off
RESIGNATION: Resignation may be put in voluntary by the employees on the ground
of health, better opportunity elsewhere or maladjustment with the company policy and
officer or for reasons of marriage.
DISCHARGE: A discharge permanent separation of an employee from the pay roll for
violation of company rules or for inadequate reasons.
DISMISAL: A dismissal is the termination of service of an employee by the way of
punishment for some misconduct or for some unauthorized and prolonged absence
from duty.
SUSPENSION: it may be awarded during inquiry is being conducted. During
suspension employees gets subsistence allowance.
RETRECHMENT: Permanent termination for economic reasons of the organization. in
the industries Disputes ACT 1947, define retrenchment as termination by the employer
of the service of workmen for any reason.

LEADING

Leading is proceeding or going in advance; showing the way. Leading can be thought
as a process of guiding, directing or influencing a group of people towards a common
goal in the capacity of a formal or informal leader.

A. Authority gradient—Review it and ask, is anyone on a pedestal and why? Who's

61
driving decisions through on dubious ground? Who always gets their way? Then use the
findings to help update responsibilities, and remind team members about expectations
for them to intervene.
Basic assumptions of motivation by Abraham Maslow
(1) the whole organism is motivated at any one time;
(2) motivation is complex, and unconscious motives often underlie behavior;
(3) people are continually motivated by one need or another;
(4) people in different cultures are all motivated by the same basic needs;
(5) needs can be arranged on a hierarchy.
Motivation Theories
A. Need Theory
(1) The Need for Achievement: the drive to excel, achieve in relation to a set of
standards, strive to succeed.
(2) The Need for Power: The need to make others behave in a way that they would
not have behaved otherwise.
(3) The Need for Affiliation: The desire for friendly and close interpersonal
relationships.

B. Theory X & Theory Y

Theory X (Negative) - The assumption that employees dislike work, are lazy, dislike
responsibility, and must be coerced to perform. (Lower order needs dominate)
Theory Y (Positive) - The assumption that employees like work, are creative, seek
responsibility, and can exercise self-direction. (Higher order needs dominate)

C. Hierarchy of Needs
Maslow held that lower level needs have prepotency over higher level needs; that is, they
must be satisfied before higher needs become motivators.
1.      Physiological Needs
Before people can become motivated by any other needs, they must have their
physiological needs relatively well satisfied; that is, they must have oxygen, food,
water, and so forth. Physiological needs have prepotency over all other needs.

2.      Safety Needs
The second level of Maslow’s hierarchy is the safety needs, including physical
security, stability, dependency, protection, and freedom from danger. Children and
neurotic adults often have difficulty satisfying safety needs and thus suffer from basic
anxiety.
3.      Love and Belongingness Needs
Most people in first world countries are able to satisfy physiological and safety needs
most of the time, but many people are only partially able to satisfy love and

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 belongingness needs. These needs include the desire for friendship, the wish for a
mate and children, and the need to belong. People who have these needs only
partially satisfied are very strongly motivated by them, whereas people who have
them nearly completely satisfied or who have never had them satisfied are only
weakly motivated by love and belongingness.
4.      Esteem Needs
Satisfaction of love needs fosters self-esteem, self-confidence, and the recognition
that one has a positive reputation. Because people are dependent on others for the
satisfaction of love needs, they must also rely on others for the initial satisfaction of
esteem needs.
5.      Self-Actualization Needs
The highest level on Maslow’s hierarchy consists of self-actualization needs. Unlike
other needs that automatically are activated when lower needs are met, self-
actualization needs do not inevitably follow the satisfaction of esteem needs. Only
psychologically healthy people who embrace the B-values achieve self-actualization.
The five needs comprising the hierarchy are conative needs, but other needs exist
as well.

D. Reinforcement Theory
A counterpoint to the goal-setting theory. In
reinforcement theory, a behavioristic approach,
which argues that reinforcement conditions
behavior. Reinforcement theorists see behavior
as being behaviorally caused. Reinforcement
theory ignores the inner state of the individual
and concentrates solely on what happens to a
person when he or she takes some action.
Because it does not concern itself with what
initiates behavior, it is not, strictly speaking, a theory of motivation. It does however
provide a powerful means of analysis of what controls behavior.

E. Two-Factor Theory
• Intrinsic factors are related to job satisfaction, while extrinsic factors are related to
job dissatisfaction.
• Hygiene factors = when these are adequate, workers “feel OK” (i.e. they are NOT
dissatisfied).  Examples include quality of supervision, company policies and
administration.
• Motivators = examines factors contributing to job satisfaction.  Thus, there are
factors which lead to job satisfaction and things that don’t (i.e. notice there is a
difference between “non-satisfying” and “dissatisfying factors”)

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F. Expectancy Theory
The strength of a tendency to act in a certain way depends on the strength of an
expectation that the act will be followed by a given outcome and on the attractiveness
of that outcome to the individual. The theory focuses on three relationships:
a. Effort-performance relationship or the probability perceived by the individual that
exerting a given amount of effort will lead to performance.
b. Performance-reward relationship or the degree to which the individual believes
that performing at a particular level will lead to the attainment of a desired outcome.
c. Rewards-personal goals relationship or the degree to which organizational
rewards satisfy an individual’s personal goals or needs and the attractiveness of
those potential rewards for the individual
H. Equity Theory
Individuals compare their job inputs and outcomes with those of others and then
respond so as to eliminate any inequities. Equity theory recognizes that individuals
are concerned not only with the absolute amount of rewards for their efforts, but also
with the relationship of this amount to what others receive. Historically, equity theory
focused on: Distributive justice or the perceived fairness of the amount and
allocation of rewards among individuals. However, equity should also
consider procedural justice or the perceived fairness of the process used to
determine the distribution of rewards. Inter-actional justice is also important.
*Question: So, what happens when your pay is “inequitable”?

I. Special Motivational Techniques

1. Management by Objective (MBO) and goal setting: MBO is a process of
collaborative goal-setting between a manager and a subordinate with the4
understanding that the degree of goal attainment by the subordinate will be a major
factor in evaluating and rewarding the subordinate’s performance. When the manager
sits with the subordinates, jointly established goals for them and agree that the future
rewards will be based on goal attainment then he or she is expected to be more
motivated to work toward the goals that merit them.

2. Participation in management: Subordinates are likely to be motivated the most

when they are not only consulted but are also allowed to participate in decision-making.
In fact the right kind of participation yields both motivation and knowledge valuable for
enterprise success. Participation appeals to the need for affiliation and acceptance. It is
a means of recognition and thus enhances subordinate’s eagerness to work harder.
3. Monetary Incentives: Money can never be overlooked as a motivator. It can also
mean power or status.
In order to use money as a motivator, a manager has to remember the following:

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  An enterprise can make its wages and salaries competitive within their industry
and their geographic area to attract and hold people.
 People usually evaluate their compensation in the light of what their equals are
receiving.
 Unless bonuses for mangers are based to a major extent on individual
performance, an enterprise is not buying much motivation with them. In so far as
possible, compensation has to be based on performance.
 Money can motivate only when the prospective payment is large relative to a
person’s income.
4. Modified work week/flexible working hours: There is considerable interest among
employees in altering the work week to suit their convenience better. The primary
motivational implications of the modified work week are that modification in their routine
helps them satisfy their higher-level needs and provides them with an opportunity to
fulfill several of their needs simultaneously.
5. Quality of working life (QWL): This is an important motivational technique, use by
managers in western societies. QWL is not only a very broad approach to job
enrichment but also an interdisciplinary field of enquiry and action combining industrial
relations, industrial engineering, industrial psychology and sociology, organization
theory and development, leadership theory and motivation, etc.
6. Effective criticism: This can be a springboard for improving an employee’s behavior
and performance. Adopting a positive approach makes criticism less difficult as well as
more effective. The manager should examine his or her own motives before criticizing.
The manager should plan the presentation of his criticism in the best possible form with
a view to motivating rather than rebuking him or her Criticism should apply to the use of
personal efforts for improvement now, not next week or next month. Specific time
schedules for improvements are also to be set up.
7. Job enrichment: Making jobs challenging and meaningful is an accepted way of
motivating employees greatly. In job enrichment, the attempt is to build into jobs a
higher sense of challenge and achievement. Jobs may be enriched by variety. But they
also may be enriched by
a) giving workers more freedom at workplace:
b) giving subordinates a feeling of personal responsibility for their tasks;
c) encouraging participation of workers and interaction between them;
d) giving subordinates feedback on their job performance; and
e) involving workers in the analysis and change of physical aspects of the work
environment, such as cleanliness, layout temperature, lighting, etc.
Job enrichment has certain limitations also. Cost factor, very often, comes to hinder job
enrichment. Jobs requiring hi-tech specialization, special machinery and technology
may also suffer from being too meaningful to workers. It merits mention that the
limitations of job enrichment apply mainly to jobs requiring low skill levels. In order to
make job enrichment effective, the following approaches can be used:
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  manger should have a better understanding of what sub-ordinates want;
 if productivity increases are the main goal of enrichment, the program must show
how workers will benefit;
 it has to be recognized that people like to be consulted, to be involved, and to be
given an opportunity to offer suggestions;
 People like to feel that their managers are truly concerned with their welfare.
They like to know what they are doing and why. They like to be appreciated and
recognized for their work.
Job enrichment is effectively done when the programs of the enterprise are
anticipatively drawn, and appear beneficial to the employees.

LEADERSHIP: ITS THEORIES AND PROCESSES

Leadership – the ability to influence a group toward the achievement of goals.
Theories of Leadership:
1. Trait Theories of Leadership
2. Behavioral Theories of Leadership
3. Situational and Contingency Theories of Leadership

Trait Theories of Leadership

Theories that sought personality, social, physical, or intellectual traits that differentiated
leaders from non-leaders.

6 Traits of a Leader:
1. Ambition and energy
2. The desire to lead
3. Honesty and integrity
4. Self-confidence
5. Intelligence
6. Job-relevant knowledge

Behavioral Theories of Leadership

Theories proposing that specific behaviors differentiate leaders from nonleaders.

Ohio State University Leadership Theory

Researchers from this University sought to identify independent dimensions of leader’s
behavior. Beginning with over a thousand dimensions, they eventually narrowed the list
into two categories that substantially accounted for most of the leadership behavior
described by employees. These two dimensions are:
1. Initiating Structure – the extent to which a leader is likely to define and
structure his or her role and roles of subordinates in the search for goal
attainment.
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 2. Consideration – the extent to which a leader is likely to have job
relationships characterized by mutual trust, respect for subordinates’ ideas,
and regard for their feelings.

Based on the definitions, leaders that high in initiating structure and consideration (a
“high-high” leader) tended to achieve high employee performance and satisfaction
more frequently than those who rated low on either initiating structure, consideration, or
both.
1,9 9,9
Managerial Grid
A nine by nine matrix outlining 81 different
leadership styles. It is based on the styles of
5,
“concern for people” and “concern for
5
production”, which represent the Ohio
State University Leadership Theory, the
initiating structure and consideration.
1,1 9,1
The Managerial Grid
9
8
7
6
5
4
3
2
1
1 2 3 4 5 6 7 8 9
Low ←Concern for production → High

Contingency and Situational Theories of Leadership

Fred Fiedler’s Contingency Model
The first comprehensive contingency model for leadership was developed by Fred
Fiedler. This theory proposes that effective groups depend upon a proper match
between a leader’s style of interacting with subordinates and the degree to which the
situation gives control and influence to the leader.
1. Identifying Leadership Style – Fiedler believes a key factor in leadership
success is the individual’s basic leadership style. He created the least preferred
co-worker (LPC) questionnaire which is an instrument that purports to measure
whether a person is task or relationship oriented.
2. Defining the Situation – after an individual’s basic leadership style has been
assessed through LPC, it is necessary to match the leader with the situation.
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 Fiedler has identified three contingency dimensions that define the key situational
factors that determine leadership effectiveness. These are:
a. Leader-member relations – the degree of confidence, trust, and
respect members have in their leader.
b. Task structure – the degree to which job assignments are procedure.
c. Position power – the degree of influence a leader has over power
variables such as hiring, firing, discipline, promotions, and salary
increases.
3. Matching Leaders and Situations – with knowledge of an individual’s LPC and
an assessment of the three contingency variables, the Fiedler model proposes
matching them up to achieve maximum leadership effectiveness.
4. Evaluation – as a whole, reviews of the major studies that tested the overall
validity of the Fiedler model lead to a generally positive conclusion. That is, there
is considerable evidence to support at least substantial parts of the model.

Hersey and Blanchard’s Situational Theory

Paul Hersey and Ken Blanchard have developed the Situational Leadership Theory. It
is a contingency theory that focuses on the followers’ readiness. The emphasis on the
followers in the leadership effectiveness reflects the reality that it is the followers who
accept or reject the leader. Regardless of what the leader does, effectiveness depends
on the actions of his or her followers.

Other Theories

Transformational Leadership – leaders who provide individualized consideration and

intellectual stimulation, and who possess charisma. They pay attention to the concerns
and developmental needs of individual followers.

Servant Leadership – this theory argues that most effective leaders are servants of
their people. Servant leaders get results for their organization through whole-hearted
attention to their followers and followers’ needs.

Relational Leadership – refers to a model or perspective on leadership that focuses on

the idea that leadership effectiveness has to do with the ability of the leader to create
positive relationships within the organization.

Public Leadership – generally described as “a role where persons holds office and
serves and guides the community as a whole”
COMMUNICATION
a process by which information is exchanged between individuals through a
common system of symbols, signs, or behavior.
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Purposes of Communication
 To form and maintain relationship.
 To convey feelings.
 To solve problems.
 To pursuance.
 To make decision.
 To give information.
 To reduce stress.
COMMUNICATION PROCESS
1. Sender
The sender or the communicator generates the
message and conveys it to the receiver. He is the
source and the one who starts the communication
2. Message
It is the idea, information, view, fact, feeling, etc. that is
generated by the sender and is then intended to be
communicated further.
3. Encoding
The message generated by the sender is encoded
symbolically such as in the form of words, pictures,
gestures, etc. before it is being conveyed
4. Media
It is the manner in which the encoded message is transmitted. The message may be
transmitted orally or in writing. The medium of communication includes telephone, internet,
post, fax, e-mail, etc. The choice of medium is decided by the sender.
5. Decoding
It is the process of converting the symbols encoded by the sender. After decoding the
message is received by the receiver.

6. Receiver
He is the person who is last in the chain and for whom the message was sent by the
sender. Once the receiver receives the message and understands it in proper perspective
and acts according to the message, only then the purpose of communication is successful.
7. Feedback
Once the receiver confirms to the sender that he has received the message and
understood it, the process of communication is complete.

8. Noise

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It refers to any obstruction that is caused by the sender, message or receiver during
the process of communication. For example, bad telephone connection, faulty encoding,
faulty decoding, inattentive receiver, poor understanding of message due to prejudice or
inappropriate gestures, etc.

Organizational communication
-is a broad field that encompasses all forms of communication that allow organizations
such as companies, government agencies, and non-profits to function, grow, connect
with stakeholders, and contribute to society.
TYPES OF COMMUNICATION FLOW
 Downward flow- when company leaders and managers share information with
lower level employees.
 Upward communication- flows from a lower level of the organization’s hierarchy
to higher level.
 Horizontal communication- takes place when the employees of the same
level interact with each other.
 Diagonal or Multi-directional communication- uses the different approaches
of information mentioned above.
BARRIERS OF ORGANIZATONAL COMMUNICATION

1. Semantic Barriers
These are concerned with the problems and obstructions in the process of encoding and
decoding of a message into words or impressions. Normally, such barriers result due to
use of wrong words, faulty translations, different interpretations, etc.

2. Psychological Barriers
Emotional or psychological factors also act as barriers to communication. The state of
mind of both sender and receiver of communication reflects in effective communication. A
worried person cannot communicate properly and an angry recipient cannot understand
the message properly.

3. Organizational Barriers
The factors related to organizational structure, rules and regulations authority
relationships, etc. may sometimes act as barriers to effective communication. In an
organization with a highly centralized pattern, people may not be encouraged to have free
communication.

4. Personal Barriers

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The personal factors of both sender and receiver may act as a barrier to effective
communication. If a superior think that a particular communication may adversely affect
his authority, he may suppress such communication.

WAYS TO IMPROVE COMMUNICATION AT WORK

 Be an Active Listener
Actively listening to suggestions, concerns and progress is important for making each
employee feel valued within your organization. Managers should remember that no
employee wants to work in a job where they will be overlooked ignored or insignificant
at work. By actively listening to your employees, managers can help subordinates feel
liked and respected.
 Follow Up
Continuously following up with employees is crucial for tracking progress and keeping
communication flowing within your organization. Don’t micromanage, but follow up
enough to determine how best to delegate future tasks and to stay on track of the work
being done within your organization.
Make all Relevant Documents Easily Accessible
By utilizing a CRM or ERP system like Microsoft Dynamics CRM or AX, users can stay
in sync and up to date with all business activities related to their line of work. Having
access to real time analytics and documents will make it easier for the flow of
communication to grow and for all employees to feel like they are a part of the same
team.
 Implement an Open-Door Policy
Often times, employees aren’t quite sure how to access or communicate with upper
levels of management, making it difficult for important topics to be brought up into the
flow of communication. By implementing an open-door policy, you can start to ensure
that employees feel comfortable with bringing anything to management’s attention and
increasing productivity and communication within the workplace.
 Internal Newsletter
It’s easy for individual departments to build a sense of community with consistently
flowing communication, however for many organizations cross-departmental
communication is difficult. Ensuring that your entire company is communicating and
begins to feel a sense of community is important for improving workplace culture.
 Company Outings
Employees work best when they feel a sense of community within their organization and
are in an environment that they genuinely want to be a part of. Company outings and
activities allow all departments and individuals to get to know one another on a more
personal level so that they will begin to feel a sense of community within your
organization and a positive work environment.

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  Meet Face to Face
Checking in with employees and co-workers face to face is essential for workplace
success. Meeting regularly in person to discuss projects, tasks and the organization as
a whole will make employees not only feel valued, but will help managers have a better
understanding of how-to best delegate tasks to maximize productivity with everyone’s
time.

CONTROL
It is an important function because it helps to check the errors and to take the corrective
action so that deviation from standards are minimized and stated goals of the
organization are achieved in a desired manner.
According to modern concepts, control is a foreseeing action whereas earlier
concept of control was used only when errors were detected. Control in management
means setting standards, measuring actual performance and taking corrective action.
In 1916, Henri Fayol formulated one of the first definitions of control as it pertains to
management: Definition Control of an undertaking consists of seeing that everything is
being carried out in accordance with the plan
Controlling is the measurement and correction of performance in order to make sure
that enterprise objectives and the plans devised to attain them are accomplished.
Robert J. Mockler presented a more comprehensive definition of managerial control:
Management is the profession of control.
Management control can be defined as a systematic effort by business management to
compare performance to predetermined standards, plans, or objectives in order to
determine whether performance

The four basic elements in a control system:

1. the characteristic or condition to be controlled 2. the sensor 3. the comparator 4. the
activator occurs in the same sequence and maintain a consistent relationship to each
other in every system.

Elements
The first element is the characteristic or condition of the operating system which is to be
measured. We select a specific characteristic because a correlation exists between it
and how the system is performing. The characteristic can be the output of the system
during any stage of processing or it may be a condition that is the result of the system.

The second element of control, the sensor, is a means for measuring the characteristic
or condition.

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The third element of control, the comparator, determines the need for correction by
comparing what is occurring with what has been planned. Some deviation from the plan
is usual and expected, but when variations are beyond those considered acceptable,
corrective action is required. It involves a sort of preventative action which indicates that
good control is being achieved.

The fourth element of control, the activator, is the corrective action taken to return the
system to its expected output. The actual person, device, or method used to direct
corrective inputs into the operating system may take a variety of forms.

Relationship between the elements of control and real time information Controlled
characteristic or condition

The activator unit responds to the information received from the comparator and
initiates corrective action. If the system is a machine-to-machine system, the corrective
inputs (decision rules) are designed into the network. When the control relates to a
man-to-machine or man-to-man system, however, the individual(s) in charge must
evaluate (1) the accuracy of the feedback information, (2) the significance of the
variation, and (3) what corrective inputs will restore the system to a reasonable degree
of stability. Once the decision has been made to direct new inputs into the system, the
actual process may be relatively easy.

Step 1. Establishment of Standard.

Standards are the criteria against which actual performance will be measured.
Standards are set in both quantitative and qualitative terms.
Step 2. Measurement of actual performance Process
Performance is measured in an objective and reliable manner. It should be checked in
the same unit in which the standards are set.
Step 3. Comparing actual performance with standards.
This step involves comparing the actual performance with standards laid down in order
to find the deviations. For example, performance of a salesman in terms of unit sold in a
week can be easily measured against the standard output for the week.
Step 4. Analysis the cause of deviations.
Managers must determine why standards were not met. This step also involves
determining whether more control is necessary or if the standard should be changed.

Step 5. Taking corrective action.

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After the reasons for deviations have been determined, managers can then develop
solutions for issues with meeting the standards and make changes to processes or
behaviors.
Kinds
Control may be grouped according to three general classifications:
1. the nature of the information flow designed into the system (open- or closed-loop
control) 2. the kind of components included in the design (man or machine control
systems) 3. the relationship of control to the decision process (organizational or
operational control). Open- and closed-loop control
A street-lighting system controlled by a timing device is an example of an open
loop system. At a certain time, each evening, a mechanical device closes the circuit and
energy flows through the electric lines to light the lamps. Note, however, that the timing
mechanism is an independent unit and is not measuring the objective function of the
lighting system.
An essential part of a closed-loop system is feedback; that is, the output of the system
is measured continually through the item controlled, and the input is modified to reduce
any difference or error toward zero. Many of the patterns of information flow in
organizations are found to have the nature of closed loops, which use feedback. The
reason for such a condition is apparent when one recognizes that any system, if it is to
achieve a predetermined goal, must have available to it at all times an indication of its
degree of attainment. In general, every goal seeking system employs feedback.
Machine systems can be complex because of the sophisticated technology, whereas
control of people is complex because the elements of control are di fficult to determine.
In human control systems, the relationship between objectives and associated
characteristics is often vague; the measurement of the characteristic may be extremely
subjective; the expected standard is difficult to define; and the amount of new
inputs required is impossible to quantify. To illustrate, let us refer once more to a
formalized social system in which deviant behavior is controlled through a process of
observed violation of the existing law (sensing), court hearings and trials (comparison
with standard), incarceration when the accused is found guilty (correction), and release
from custody after rehabilitation of the individual has occurred.

Organizational and operational control

The concept of organizational control is implicit in the bureaucratic theory of Max
Weber. Associated with this theory are such concepts as "span of control", "closeness
of supervision", and "hierarchical authority". Weber's view tends to include all levels or
types of organizational control as being the same. More recently, writers have tended to
differentiate the control process between that which emphasizes the nature of the
organizational or systems design and that which deals with daily operations. To
illustrate the difference, we "evaluate" the performance of a system to see how effective
and efficient the design proved to be or to discover why it failed. In contrast, we operate
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and "control" the system with respect to the daily inputs of material, information, and
energy. In both instances, the elements of feedback are present, but organizational
control tends to review and evaluate the nature and arrangement of components in the
system, whereas operational control tends to adjust the daily inputs.

The objective of the system is to perform some specified function. The objective of
organizational control is to see that the specified function is achieved. The objective of
operational control is to ensure that variations in daily output are maintained within
prescribed limits.

Information flow
Oscillation and Feedback
Another problem of control relates to the improper timing of information introduced into
the feedback channel. Improper timing can occur in both computerized and human
control systems, either by mistakes in measurement or in judgment.
The more rapid the system's response to an error signal, the more likely it is that the
system could over adjust; yet the need for prompt action is important because any delay
in providing corrective input could also be crucial. A system generating feedback
inconsistent with current need will tend to fluctuate and will not adjust in the desired
manner.

Setting standards
Setting the proper standards or control limits is a problem in many systems. Parents are
confronted with this dilemma in expressing what they expect of their children, and
business managers face the same issue in establishing standards that will be
acceptable to employees. Some theorists have proposed that workers be allowed to set
their own standards, on the assumption that when people establish their own goals,
they are more apt to accept and achieve them.
There is a danger, however, that we may measure
characteristics that do not represent effective performance (as in the case of the
speaker who requested that all of the people who could not hear what he was saying
should raise their hands), or that improper information may be communicated.

Importance of control
1. Increasing size of business 2. Motivation for e fficient employees 3. For complete
discipline 4. Helpful in future planning 5. Aids e fficiency 6. Decrease in risk
7. Helpful in coordination 8. Helpful in decentralization
Business valuation Command hierarchy Control freak Control premium Management
control system Management cybernetics Mergers and acquisitions Performance
paradox Power (social and political) See also
Viable system model
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MANAGEMENT OF CHANGE AND INNOVATION
As complexity increases, managing change and innovation becomes increasingly
difficult. Despite easy availability of information, the ability to project future outcomes
has moved from an environment of manageable risk to risking degrees of uncertainty.
The speed of which information is transformed into actionable knowledge is not keeping
pace with changes in the business environment.
 TECHNIQUES IN INITIATING CHANGE

Change is an alteration of an organization’s environment, structure, technology, or

people. Because change is an organizational reality, handling it is an integral part of
every manager’s job.
 Changing structure
 Changing technology
 Changing people

 MANAGING CONFLICT

The primary aim of conflict management is to promote the positive effects and reduce
the negative effects that disputes can have on team performance without necessary
fully resolving the conflict itself. Teams use one of the three main tactics to manage
conflict: smoothing, yielding and avoiding.

Smoothing approach - attempts to minimize the differences among the people who are
in conflict with each other.

Yielding approach – describes the choice some team members make to simply give in
when others disagree with them rather than engage in conflict.

Avoiding approach – team members may choose to simply ignore all but most
contentious disagreements.

 ORGANIZATIONAL DEVELOPMENT
The term organizational development refers to a collection of techniques for
understanding, changing and developing work force effectiveness process
consultation, survey feedback, team building and intergroup development.

Intergroup development can change attitudes, stereotypes, and perceptions

that groups have of each other. One method emphasizes problem solving. Once

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problem have been identified, team members can move to the integration phase of
working together to develop solutions to improve intergroup relations.
In process consultation, outside consultants help managers to perceive,
understand, and act upon events with which they must deal. Consultants are not there
to solve problems. Rather, they act as coaches to help managers diagnose which
internal processes need improvement.
Management can use the survey feedback approach to assess the attitudes of
organizational members in order to identify and address the discrepancies among their
perceptions.
Also, the team building activities promote trust and openness between team
members. These activities may be goal setting, interpersonal development, role
analysis, and team process analysis.
MANAGEMENT TECHNIQUES
1. Linear Programming
- it is a mathematical method for determining a way to achieve the best
outcome (such as maximum profit or lowest cost) in a given mathematical
model for some list of requirements represented as linear relationships.
- Industries that use linear programming models include transportation, energy,
telecommunications, and manufacturing. It has proved useful in modeling
diverse types of problems in planning, routing, scheduling, assignment, and
design.
2. Decision Tree Analysis
- it is a decision support tool that uses a tree-like graph or model of decisions
and their possible consequences, including chance event outcomes, resource
costs, and utility. It is one way to display an algorithm.
- Decision trees are commonly used in operations research, specifically in
decision analysis, to help identify a strategy most likely to reach a goal.
3. PERT-CPM
- The Program (or Project) Evaluation and Review Technique, commonly
abbreviated PERT, is a statistical tool, used in project management, that is
designed to analyze and represent the tasks involved in completing a given
project.
- PERT-CPM is a method to analyze the involve tasks in completing a given
project, especially the time needed to complete each task, and to identify the
minimum time needed to complete the total project.

4. Cost-benefit Analysis
- It is sometimes called benefit-cost analysis (BCA), is a systematic process
for calculating and comparing benefits and cost of a project, decision or
government policy (hereafter, “project”)

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 - Cost-benefit analysis is often used by governments and other organizations,
such as private sector businesses, to evaluate the desirability of a given
policy.
5. Simulation Method
- It is the imitation of the operation of a real-world process or system over time.
The act of simulating something first requires that a model be developed; this
model represents the key characteristics or behaviors/functions of the
selected physical or abstract system itself, whereas the simulation represents
the operation of the system over time.
6. Queue Management System
- It is used to control queues. Queues of people form in various situations and
locations in a queue area. The process of queue formation and propagation is
defined as queuing theory.
- Under the structure queue type, people form a queue in a fixed, predictable
position, such as at supermarket checkouts, some other retail locations such
as banks, aiport security and so on.
- Structure queue types are applied where people form a queue in
unpredictable and varying locations and directions. This is often the case in
some forms of retail, taxi queue, ATMs.
7. Management Information Systems (MIS)
- It represents the entire portfolio of computer-based and their complementary
manual procedures.
- It is an integrated computer-based, user machine system that provides
information for supporting operations and decision-making functions.
- It is the development and use of effective information systems in organization.

FEASIBILITY STUDY
- The word ‘feasibility ‘means the degree or state of being easily, conveniently,
or reasonably done. If something is ‘feasible,’ it means that we can do it,
make it, or achieve it. In other words, it is ‘doable’ and also ‘viable.’
A viable business, for example, is one we expect will make a profit every year
for a long time.
- A feasibility study is an analysis of the viability of an idea.
- As the name implies, a feasibility analysis is used to determine the viability of
an idea, such as ensuring a project is legally and technically feasible as well
as economically justifiable. It tells us whether a project is worth the
investment—in some cases, a project may not be doable.
FIVE AREAS OF PROJECT FEASIBILITY
1. Technical Feasibility

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This assessment focuses on the technical resources available to the organization. It
helps organizations determine whether the technical resources meet capacity and
whether the technical team is capable of converting the ideas into working systems.
Technical feasibility also involves evaluation of the hardware, software, and other
technical requirements of the proposed system.

2. Economic Feasibility
This assessment typically involves a cost/ benefits analysis of the project, helping
organizations determine the viability, cost, and benefits associated with a project before
financial resources are allocated. It also serves as an independent project assessment
and enhances project credibility—helping decision-makers determine the positive
economic benefits to the organization that the proposed project will provide.
3. Legal Feasibility
This assessment investigates whether any aspect of the proposed project conflicts with
legal requirements like zoning laws, data protection acts or social media laws. Let’s say
an organization wants to construct a new office building in a specific location.

Operational Feasibility
This assessment involves undertaking a study to analyze and determine whether—and
how well—the organization’s needs can be met by completing the project. Operational
feasibility studies also examine how a project plan satisfies the requirements identified
in the requirements analysis phase of system development.
4. Scheduling Feasibility
This assessment is the most important for project success; after all, a project will fail if
not completed on time. In scheduling feasibility, an organization estimates how much
time the project will take to complete.
COMMITTEES AND TASK FORCES TEAM AND TEAM WORK
THE LEARNING ORGANIZATION (PETER SENGE’S FIFTH DISCIPLINE)

COMMITTEES AND TASK FORCES

 Committees, the most formal of these types of work groups, are groups of
persons appointed or selected to perform a function on behalf of a larger group.
In a sense, the larger body entrusts a smaller subset of members to do
something for them. Often defined in organizational by-laws or statutes,
committees serve very specific functions within organizations.
 Task Forces Task forces are work groups typically comprising experts in
specified areas of knowledge or practice. Task forces are small groups of people
—and resources—brought together to accomplish a specific objective, with the
expectation that the group will disband when the objective has been completed.

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  Teams A team is a group of persons linked together for a common purpose. For
the most part, teams consist of persons with complementary skills organized to
function cooperatively as a group. Katzenbach and Smith have written
extensively about teams and offer the following definition: A team is a small
number of people with complementary skills who are committed to a common
purpose, performance goals, and approach for which they are mutually
accountable.
TEAM AND TEAM WORK

TEAM
A group of people with different skills and different tasks, who work together on a
common project, service, or goal, with a meshing of functions and mutual support.
COMMON CHARACTERISTICS OF EFFECTIVE TEAMS

1. The purpose, mission, or main objective is known and understood by all team
members.
2. Communication in the team is open, direct and honest.
3. Sufficient leadership is available in the team.
4. There is regular review of how well the team is performing toward achieving its
purpose.
5. There is an agreed organizational structure to the team.
6. Adequate resources are available to permit the team to perform its function,
including skills, tools, facilities, and budgets.
7. Synergy exists, so the team performs in a way that is greater than the sum of its
parts.
ON-THE-JOB ACTIONS OF SUCCESSFUL TEAMS (1)

1. Seeking opinions and input before finalizing decisions or plans.

2. Being available to help teammates.
3. Volunteering information to teammates who need it.
4. Providing contributions on time.
5. Acknowledging other team members’ contributions to those outside the
team.
6. Being non-defensive and receptive to ideas, opinions, and needs of
teammates.
7. Considering the impact of the team’s plans on the rest of the organization
(administration, accounting, etc.).
8. Not criticizing teammates when they are not present.
9. Coming to meetings prepared.
10. Expressing appreciation for helpful teamwork extended by another.

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 11. Identifying and helping with loose ends, even in someone else’s area of
responsibility.
12. Keeping teammates advised of changes, developments and new
information.
13. Being supportive of the team’s objectives, once they are set.
14. Pitching in when the whole team needs help in meeting a deadline, even if
it is outside of your area of responsibility.
15. Trusting the team to be able to develop consensus, even though it takes
extra time.

WHY USE TEAMS

1. More knowledge and skill is brought to the problem
2. Information flow is more effective.
3. More people are aware of the full breadth of the problem.
4. Meetings are more productive and goal-oriented
5. Better decisions are made
6. Team problems are identified sooner and more clearly
7. Team members learn from each other.
8. The team becomes more cohesive and develops a stronger sense of
belonging to the organization.
9. Overall morale improves.
10. More is accomplished than is possible by equivalent individual efforts.
11. Productivity and time savings are achieved by eliminating duplication of
efforts
12. Absenteeism and missed deadlines are reduced
13. Team members understand organizational issues better
14. Management work is shared.
15. Teams set and achieve tougher goals than individuals.
COMMON MISCONCEPTIONS
1. Teams don’t need leadership.
2. Teams must have a say in all decisions.
3. Some groups cannot be teams.
4. “Talking teamwork” will make it happen.
5. Managing teams is more difficult than traditional management.

TEAM DEVELOPMENT STAGES

A. Forming
B. Storming
C. Norming
D. Performing
A. FORMING
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 1. People are cautious, guarded, wondering.
1. Little visible disagreement.
2. Lack of identity.
3. Little investment in the group.
4. Watching to see what is expected of team members and what is acceptable from
team members.
B. STORMING
1. Conflict occurs.
2. Work is in fits and starts and not very productive.
3. High level of frustration and/or confusion.
4. Pairing and cliques develop.
5. Beginning development of identity, purpose, and interest.
6. People take risks and get to know one another.

C. NORMING
1. Developing goals, roles, and relationships.
2. Learning to appreciate differences in people.
3. Conflict is about issues, not egos or people.
4. Communication is open and clear.
5. Sense of belonging develops.
6. Progress is beginning to be made.
7. Work becomes enjoyable.

D. PERFORMING

1. Team acts on common goals, with synergy, high morale, and high productivity.
2. Easy shifting of roles from one to another.
3. Differences are valued.
4. Team members look out for one another’s interests.
5. Spontaneous, collaborative efforts.
6. Sharing of all relevant information.
7. Conflict is frequent, but leads to problem solving.
TEAM DEVELOPMENT DON’TS
1. Over talk
2. Brag
3. Power plays
4. Use authoritarian communication
5. Public criticism
6. Preoccupied with the pyramid
TEAM DEVELOPMENT DO’S
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 1. Straight talk
2. Manage conflict
3. Honor commitments
4. Permeable work boundaries
5. Affirm and celebrate
6. Apply collective wisdom
7. Appreciate differences
TEAM MEETING GROUND RULES
1. Start on time.
2. Only one conversation at a time.
3. Listen for understanding.
4. Be open to new ideas.
5. Ask “Why?”
6. Don’t repeat points already made.
7. Everyone participates.
8. No rank.
9. Only process owners vote.
10. Have fun!!

THE LEARNING ORGANIZATION (PETER SENGE’S FIFTH DISCIPLINE)

An Executive Book Summary
By Miles MacFarlane

Peter Senge’s The Fifth Discipline describes how sustainably competitive organizations
comprehend the interconnectedness of people, ideas, and their operating context, can
identify and treat causal, rather than the symptomatic barriers to learning, and can
nurture ongoing reflective practice and open communication throughout the
organization. Called “Systems Thinking”, Senge describes the practices through a
series of understandings, or “laws” focused on seeing wholes rather than parts. He
describes how feedback loops can obscure big-picture structures with small-picture
details. Senge illuminates four core disciplines which, when integrated into a cohesive
whole using systems thinking, contribute to effective organizational learning. Senge’s
work promotes a vision of organizations as dynamic systems that can grow, respond,
and lead change because individuals are learning and contributing to a body of
knowledge and wisdom in response to the needs of the organization. The Fifth
Discipline describes how to understand and manage the ecosystem’s elements on a
way that creates effective learning organizations.

 Barriers to Organizational Learning

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Tearing apart issues into their component pieces is a common strategy for addressing
complex challenges. The problem, Senge suggests, is that we end up looking at, and
fixing parts without necessarily appreciating the effect on the whole. Such segmented
thinking inclines people to treating symptoms rather than the underlying issues. In the
book, Senge identifies some of the challenges and barriers to becoming an effective
learning organization.
 Four Core Discipline
Senge identifies four necessary practices or disciplines that, when integrated; contribute
to an effective learning organization.

 Personal Mastery: On-going processes of honest personal reflection and inquiry

serve to bring reality into sharper focus and build both individual and
organizational capacity.
 Personal mastery can be promoted but not forced; it is best shared by example
and upheld as an important value. Creative tension arises when there is a gap
between where we are and where we want to be.
- Mental Models: Awareness our own biases and assumptions contributes to
more honest and (Continued on page 3) The Fifth of the disciplines is Systems
Thinking: appreciating that individuals, policies, organizations, decisions,
relationships, etc, are interconnected elements in a larger context. Systems
thinking also recognizes that the four core disciplines are integrated and
essential parts of a larger approach to organizational learning.
- System thinking is a framework for seeing interrelationship rather than things, for
seeing pattern of change rather than static “Snapshots”.

 Four Core Discipline

Personal Mastery
Team Learning
Mental Models
Shared Vision

Organizations that will truly excel in the future will be the organizations that
discover how to tap people’s commitment and capacity to learn at all levels in an
organization”.

DECISION-MAKING
Every organization needs to make decisions at one point or other as part of
managerial process. Decisions are made in the best interest of the organization. For
that matter, decisions made by the organization are to lighten the way forward. Be it

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strategic, business activities or HR matters, processes of making decisions is complex,
involves professionals of different genre.

Decisions are taken to support organizational growth.

Top notch companies, as evidenced by their functions, effective communication
tools are utilized in addition to normal consultation process to make decisions that
would have large scale implications on the company’s prospects.
Discussions and consultations are two main tools that support and eventually
bring out decisions.
Decision taken by strategic managers is to push new and innovative business
line or initiative.
Thus, the final decision to roll out a product or service is through cumulative
interim decisions taken by various internal and external parties. And also, the final
decision is reflective and founded on researches and consultations.

What is Decision Making?

Decision-making is an integral part of modern management. Essentially, Rational
or sound decision making is taken as primary function of management. Every manager
takes hundreds and hundreds of decisions subconsciously or consciously making it as
the key component in the role of a manager. A decision can be defined as a course of
action purposely chosen from a set of alternatives to achieve organizational or
managerial objectives or goals. Decision making process is continuous and
indispensable component of managing any organization or business activities.
Decisions are made to sustain the activities of all business activities and organizational
functioning.
Decisions are made at every level of management to ensure organizational or
business goals are achieved. Further, the decisions make up one of core functional
values that every organization adopts and implements to ensure optimum growth and
drivability in terms of services and or products offered.
As such, decision making process can be further exemplified in the backdrop of
the following definitions.
Definition of Decision Making
According to the Oxford Advanced Learner’s Dictionary the term decision making
means - the process of deciding about something important, especially in a group of
people or in an organization.
Trewatha & Newport defines decision making process as follows: “Decision-
making involves the selection of a course of action from among two or more
possible alternatives in order to arrive at a solution for a given problem”.
As evidenced by the foregone definitions, decision making process is a
consultative affair done by a comity of professionals to drive better functioning of any
organization. Thereby, it is a continuous and dynamic activity that pervades all other
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activities pertaining to the organization. Since it is an ongoing activity, decision making
process plays vital importance in the functioning of an organization.
Further, decision making process can be regarded as check and balance
system that keeps the organization growing both in vertical and linear directions.
It means that decision making process seeks a goal. The goals are pre-set business
objectives, company missions and its vision. To achieve these goals, company may
face lot of obstacles in administrative, operational, marketing wings and operational
domains. Such problems are sorted out through comprehensive decision-making
process.
General decision-making style (GDMS)
In the general decision-making style (GDMS) test developed by Suzanne Scott and
Reginald Bruce, there are five decision-making styles: rational, intuitive, dependent,
avoidant, and spontaneous. These five different decision-making styles change
depending on the context and situation, and one style is not necessarily better than any
other.
 The rational style is an in-depth search for, and a strong consideration of, other
options and/or information prior to making a decision.
 The intuitive style is confidence in one's initial feelings and gut reactions.
 The dependent style is asking for other people's input and instructions on what
decision should be made.
 The avoidant style is averting the responsibility of making a decision.
 The spontaneous style is a need to make a decision as soon as possible rather
than waiting to make a decision.

The Decision-Making Process in an Organization

Decision making is the process of making choices by identifying a decision,

gathering information, and assessing alternative resolutions.
Using a step-by-step decision-making process can help you make more
deliberate, thoughtful decisions by organizing relevant information and defining
alternatives. This approach increases the chances that you will choose the most
satisfying alternative possible.

Step 1: Identify the decision

You realize that you need to make a decision. Try to clearly define the nature of the
decision you must make. This first step is very important.

Step 2: Gather relevant information

Collect some pertinent information before you make your decision: what information is
needed, the best sources of information, and how to get it. This step involves both

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internal and external “work.” Some information is internal: you’ll seek it through a
process of self-assessment.

Step 3: Identify the alternatives

As you collect information, you will probably identify several possible paths of action, or
alternatives. You can also use your imagination and additional information to construct
new alternatives. In this step, you will list all possible and desirable alternatives.

Step 4: Weigh the evidence

Draw on your information and emotions to imagine what it would be like if you carried
out each of the alternatives to the end. Evaluate whether the need identified in Step 1
would be met or resolved through the use of each alternative. As you go through this
difficult internal process, you’ll begin to favor certain alternatives: those that seem to
have a higher potential for reaching your goal.

Step 5: Choose among alternatives

Once you have weighed all the evidence, you are ready to select the alternative that
seems to be the best one for you. You may even choose a combination of alternatives.
Your choice in Step 5 may very likely be the same or similar to the alternative you
placed at the top of your list at the end of Step 4.

Step 6: Take action

You’re now ready to take some positive action by beginning to implement the alternative
you chose in Step 5.
Step 7: Review your decision & its consequences
In this final step, consider the results of your decision and evaluate whether or not it has
resolved the need you identified in Step 1. If the decision has not met the identified
need, you may want to repeat certain steps of the process to make a new decision.

Decision Making in an Organizational Context

Decision making is part of everyone’s life and all of us have to make decisions
every moment. Right from choosing what to wear to what to eat to where we live and
work and extending to whom we marry, decisions are an integral part of our lives. In an
organizational context, it is worthwhile to note that decision making needs the
right kind of information, the complete information and the ability to synthesize
and make sense of the information. While the first two attributes depend on external
sources, the ability to make informed decisions is a personality trait.
In Economics, there is a term called “asymmetries of information” that indicates
how incomplete and insufficient information leads to poor decisions and wrong choices.
What this concept means is that having partial information or faulty information often
leads to “analysis paralysis” which is another term for poor decision-making abilities.
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PERFORMANCE APPRAISAL AND EVALUATION
I. The Introduction
Employees are the backbone, the most valuable assets & living part of an organization
that can make things happen, the practice of performance evaluation is an
inherent and organizational objectives largely depends on the motivation of employees
to work and to their good perception of the effective or ineffective is mainly
dependent on its human resource management in general and employees
performance appraisal in particular. (Mullins,2007).

Performance appraisal, as an important evaluation system, has its roots in the early20th
century, stemming from Taylor's pioneering time and motion studies. Performance
appraisal, as a distinct and formal management procedure, which really dates from the
time of the Second World War, not more than 60 years ago, is used in the evaluation of
work performance appraisal. It is a basic human tendency to make judgments about
those one is working with, as well as about oneself (Dulewicz, 1989).

What is a Performance Appraisal?

“Performance Appraisal i the systematic, periodic and impartial rating of an employee's

excellence, in matters pertaining to his present job and his
potential for a better job” according to Edwin Flippo.

Performance Appraisal is the systematic, periodic and impartial rating of an employee’s

excellence, in matters pertaining to his present job and his potential for a better
job. Performance appraisal is "the systematic description of an employee"s strengths
and weaknesses. While Performance refers to “the outcome, result, or accomplishment”
(Rothwell, 2005)
Performance refers to “outcomes, results or accomplishments”
A performance appraisal is a regular review of an employee's job performance
and overall contribution to a company. Also known as an "annual review," "performance
review or evaluation," or "employee appraisal," a performance appraisal evaluates an
employee’s skills, achievements and growth, or lack thereof. Companies use
performance appraisals to give employees big-picture feedback on their work and to
justify pay increases and bonuses, as well as termination decisions. They can be
conducted at any given time but tend to be annual, semi-annual or quarterly.
It is the systematic evaluation of the performance of employees and to
understand the abilities of a person for further growth and development. Performance
appraisal is generally done in systematic ways which are as follows: First, the
supervisors measure the pay of employees and compare it with targets and plans.
Second, he supervisor analyses the factors behind work performances of employees.
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And lastly, the employers are in position to guide the employees for a better
performance.
II. The Body
Unclear performance standards are one problem. An appraisal system that is to
open to interpretation, instead include descriptive phases that define each trait and
what is meant by ways to rectify this problems. That’s why we need to be clear when
doing this Performance appraisal and evaluation and its aims, objectives and purposes.

Aims of Performance Appraisal

 Give Employees Feedback
 Identify Employee training need
 Document criteria
 Form a basis for personal: Salary Increase, Promotion, disciplinary actions,
Bonuses
 Provide Opportunity for Organizational diagnosis and development
 Facilitate communication
 Validate selection techniques and Human Resource policies.
Purpose of Performance Appraisal
to review the performance of the employees
to judge the gap between the actual and the desired performance
To help the management in exercising organizational control.
To diagnose the training and development needs of the future.
Provide information to assist in the HR decision like promotions, transfer, etc.
Provide clarity of the expectations and Responsibilities of the functions to be
performed by the employees.
To judge the effectiveness of the other human resources functions.
To reduce the grievances of the employees.
To help to strengthen the relationship and communication between superior-
subordinates and management- Employee.
standards like‟‟ good‟‟ or‟‟. For example, deferent supervisor
would probably define “good performance‟‟ and “fair
performance” and so on differently. The same is true for trait
such as „‟quality „‟of work or „‟creativity‟‟. There are several
form specified what was meant by “GOOD‟‟,
“OUTSTANDING‟‟,‟‟SUPERIOR‟‟ quality of work? This
The following are the Objectives of Performance Appraisal.
1. To maintain records in order to determine compensation packages, wage
structure, salaries raises, etc.
2. To identify the strengths and weaknesses of employees to place right men on
right job.

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 3. To maintain and assess the potential present in a person for further growth and
development.
4. To provide a feedback to employees regarding their performance and related
status.
5. To provide a feedback to employees regarding their performance and related
status.
6. It serves as a basis for influencing working habits of the employees.
7. To review and retain the promotional and other training programmers.
Advantages of Performance Appraisal
It is said that performance appraisal is an investment for the company which can be
justified by following advantages:
1. Promotion: Performance Appraisal helps the supervisors to chalk out the
promotion programmes for efficient employees. In this regards, inefficient
workers can be dismissed or demoted in case.
2. Compensation: Performance Appraisal helps in chalking out compensation
packages for employees. Merit rating is possible through performance appraisal.
Performance Appraisal tries to give worth to a performance. Compensation
packages which includes bonus, high salary rates, extra benefits, allowances and
pre-requisites are dependent on performance appraisal. The criteria should be
merit rather than seniority.
3. Employees Development: The systematic procedure of performance appraisal
helps the supervisors to frame training policies and programmes. It helps to
analyze strengths and weaknesses of employees so that new jobs can be
designed for efficient employees. It also helps in framing future development
programmes.
4. Selection Validation: Performance Appraisal helps the supervisors to
understand the validity and importance of the selection procedure. The
supervisors come to know the validity and thereby the strengths and weaknesses
of selection procedure. Future changes in selection methods can be made in this
regard.
5. Communication: For an organization, effective communication between
employees and employers is very important. Through performance appraisal,
communication can be sought for in the following ways:
a. Through performance appraisal, the employers can understand and
accept skills of subordinates.
b. The subordinates can also understand and create a trust and confidence
in superiors.
c. It also helps in maintaining cordial and congenial labour management
relationship.
d. It develops the spirit of work and boosts the morale of employees.
All the above factors ensure effective communication.
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 6. Motivation: Performance appraisal serves as a motivation tool. Through
evaluating performance of employees, a person’s efficiency can be determined if
the targets are achieved. This very well motivates a person for better job and
helps him to improve his performance in the future.

Performance Appraisal Tools and Techniques

There are tools and techniques to be used by different companies. Some of them is
mentioned below.
1.Ranking Method
The ranking system requires the rater to rank his subordinates on overall
performance. This consists in simply putting a man in a rank order. Under this
method, the ranking of an employee in a work group is done against that of
another employee. The relative position of each employee is tested in terms of
his numerical rank. It may also be done by ranking a person on his job
performance against another member of the competitive group.
Advantages of Ranking Method
i. Employees are ranked according to their performance levels.
ii. It is easier to rank the best and the worst employee.

Limitations of Ranking Method

iii. The “whole man” is compared with another “whole man” in this method. In
practice, it is very difficult to compare individuals possessing various
individual traits.
iv. This method speaks only of the position where an employee stands in his
group. It does not test anything about how much better or how much
worse an employee is when compared to another employee.
v. When a large number of employees are working, ranking of individuals
become a difficult issue.
vi. There is no systematic procedure for ranking individuals in the
organization. The ranking system does not eliminate the possibility of snap
judgements.
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2. Forced Distribution method
This is a ranking technique where raters are required to allocate a certain
percentage of rates to certain categories (eg: superior, above average, average)
or percentiles (eg: top 10 percent, bottom 20 percent etc). Both the number of
categories and percentage of employees to be allotted to each category are a
function of performance appraisal design and format. The workers of outstanding
merit may be placed at top 10 percent of the scale, the rest may be placed as 20
% good, 40 % outstanding, 20 % fair and 10 % fair.
Advantages of Forced Distribution
i. This method tends to eliminate raters bias
ii. By forcing the distribution according to pre-determined percentages, the
problem of making use of different raters with different scales is avoided.

Limitations of Forced Distribution

iii. The limitation of using this method in salary administration, however, is
that it may lead low morale, low productivity and high absenteeism.

Employees who feel that they are productive, but find themselves in lower
grade (than expected) feel frustrated and exhibit over a period of time
reluctance to work.

3. Critical Incident techniques

Under this method, the manager prepares lists of statements of very effective
and ineffective behaviour of an employee. These critical incidents or events
represent the outstanding or poor behaviour of employees or the job. The
manager maintains logs of each employee, whereby he periodically records
critical incidents of the workers behaviour. At the end of the rating period, these
recorded critical incidents are used in the evaluation of the worker’s performance.

Advantages of Critical Incident techniques

i. This method provides an objective basis for conducting a thorough
discussion of an employee’s performance.
ii. This method avoids recency bias (most recent incidents are too much
emphasized)
Limitations of Critical Incident techniques
iii. Negative incidents may be more noticeable than positive incidents.
iv. The supervisors have a tendency to unload a series of complaints about
the incidents during an annual performance review session.
v. It results in very close supervision which may not be liked by an employee.

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 vi. The recording of incidents may be a chore for the manager concerned,
who may be too busy or may forget to do it.

4. Checklists and Weighted Checklists

In this system, a large number of statements that describe a specific job are
given. Each statement has a weight or scale value attached to it. While rating an
employee the supervisor checks all those statements that most closely describe
the behavior of the individual under assessment. The rating sheet is then scored
by averaging the weights of all the statements checked by the rater.

Advantages of Checklists and Weighted Checklists

i. Most frequently used method in evaluation of the employees performance.
Limitations of Checklists and Weighted Checklists
ii. This method is very expensive and time consuming
iii. Rater may be biased in distinguishing the positive and negative questions.
iv. It becomes difficult for the manager to assemble, analyze and weigh a
number of statements about the employee’s characteristics, contributions
and behaviors.
Performance Appraisal Biases
Managers commit mistakes while evaluating employees and their performance. Biases
and judgment errors of various kinds may spoil the performance appraisal process. Bias
here refers to inaccurate distortion of a measurement. These are:
1. First Impression (primacy effect): Raters form an overall impression about the
ratee on the basis of some particular characteristics of the ratee identified by
them. The identified qualities and features may not provide adequate base for
appraisal.
2. Halo Effect: The individual’s performance is completely appraised on the basis
of a perceived positive quality, feature or trait. In other words, this is the tendency
to rate a man uniformly high or low in other traits if he is extra-ordinarily high or
low in one particular trait. If a worker has few absences, his supervisor might give
him a high rating in all other areas of work.
3. Horn Effect: The individual’s performance is completely appraised on the basis
of a negative quality or feature perceived. This results in an overall lower rating
than may be warranted. “He is not formally dressed up in the office. He may be
casual at work too!”.
4. Excessive Stiffness or Lenience: Depending upon the raters own standards,
values and physical and mental makeup at the time of appraisal, ratees may be
rated very strictly or leniently. Some of the managers are likely to take the line of
least resistance and rate people high, whereas others, by nature, believe in the
tyranny of exact assessment, considering more particularly the drawbacks of the
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 individual and thus making the assessment excessively severe. The leniency
error can render a system ineffective. If everyone is to be rated high, the system
has not done anything to differentiate among the employees.
5. Central Tendency: Appraisers rate all employees as average performers. That
is, it is an attitude to rate people as neither high nor low and follow the middle
path. For example, a professor, with a view to play it safe, might give a class
grade near the equal to B, regardless of the differences in individual
performances.
6. Personal Biases: The way a supervisor feels about each of the individuals
working under him - whether he likes or dislikes them - as a tremendous effect on
the rating of their performances. Personal Bias can stem from various sources as
a result of information obtained from colleagues, considerations of faith and
thinking, social and family background.
7. Spillover Effect: The present performance is evaluated much on the basis of
past performance. “The person who was a good performer in distant past is
assured to be okay at present also”.
8. Recency Effect: Rating is influenced by the most recent behavior ignoring the
commonly demonstrated behaviors during the entire appraisal period.
Disadvantages of Performance Appraisal
1. If the factors being used in the performance appraisal are incorrect or not relevant,
the appraisal will fail to provide any useful or effective data.
2. Sometimes, equal weightage is not given to important factors when performing an
appraisal.
3. Some objective factors are very vague and difficult to gauge like attitude and
initiative. There is no scientific method to measure these factors.
4. Managers are sometimes not qualified enough to correctly assess the employees
and their abilities. Thus, these mistakes can be very detrimental to the growth of the
company.
Solved Question on Performance Appraisal
List three ways performance appraisal helps an organization.
Answer – Three ways performance appraisal helps an organization mention as follows:
 A systematic performance appraisal system helps the managers to properly identify
the performance of employees in a systematic manner and their areas of talent and
areas where they are lacking.
 Performance appraisal helps employees identify the areas in which they need to
improve. Furthermore, the managers can also use this information to provide
constructive criticism of the way employees perform their work.
 It helps the management to place the right employees for the perfect jobs
depending on their skills in particular areas.
It helps the managers place the right employees for the right jobs, depending on their
skills. Often, employees are often curious to know about their performance details and
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compare it with their fellow colleagues and how they can improve upon it. So every
company needs a good performance appraisal system.

MANAGEMENT APPROACHES
There are three major classifications for management approaches
1. Classical Management Theory
2.Behavioral Management Theory
3.Modern Management Theory.
Classical Management approach centers around execution and maximizing
production. Behavioral Management approach focuses increasingly on human elements
and viewing the workplace as a social environment. Modern Management
approach builds on the previous two theories, while incorporating modern scientific
methods and systems thinking.
Classical Management Approach
The classical writers thought of the organization in terms of its purpose and formal
structure. They placed emphasis on the planning of work, the technical requirements of
the organization, principles of management, and the assumption of rational and logical
behavior. The analysis of organization in this manner is associated with work carried out
initially in the early part of the last century, by such writers as Taylor, Fayol, Urwick,
Mooney and Reiley, and Brech. Such writers were laying the foundation for a
comprehensive theory of management
Classical Management Theory is the oldest management theory. Classical Management
Theory focuses on operations and the creation of standards to increase production
output. In Classical Management Theory, compensation is considered the primary
motivation for employees. A manager practicing Classical Management Theory would
be focused on improving output and rewarding high-performing employees through
wages or bonuses.
Most classical writers had their own set of principles but among the most publicized are
those of Fayol and Urwick . Fayol recognized there was no limit to the principles of
management but in his writing advocated. Urwick originally specified eight principles,
but these were revised to ten in his later writing. Mooney and Reiley set out a number of
common principles which relate to all types of organizations. They place particular
attention on:
■ the principle of co-ordination – the need for people to act together with unity of action,
the exercise of authority and the need for discipline;
■ the scalar principle – the hierarchy of organization, the grading of duties and the
process of delegation; and
■ the functional principle – specialization and the distinction between different kinds of
duties There are three primary theories that comprise the Classical Management
Theory:

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  Scientific Management Approach
Many of the classical writers were concerned with the improvement of management as
a means of increasing productivity. At this time, emphasis was on the problem of
obtaining increased productivity from individual workers through the technical
structuring of the work organization and the provision of monetary incentives as the
motivator for higher levels of output. A major contributor to this approach was F. W.
Taylor (1856–1917), the ‘father’ of scientific management.14
Taylor believed that in the same way that there is a best machine for each job, so there
is a best working method by which people should undertake their jobs.

Principles to guide management

Taylor was a believer in the rational–economic needs concept of motivation. He
believed that if management acted on his ideas, work would become more satisfying
and profitable for all concerned. Workers would be motivated by obtaining the highest
possible wages through working in the most efficient and productive way. Taylor was
concerned with finding more efficient methods and procedures for co-ordination and
control of work. He set out a number of principles to guide management. These
principles are usually summarized as:
■ the development of a true science for each person’s work;
■ the scientific selection, training and development of the workers;
■ co-operation with the workers to ensure work is carried out in the prescribed way;
■ the division of work and responsibility between management and the workers.
 Administrative Management Approach
Administrative Management Theory was developed by Henri Fayol, who is considered
to be a founder of management theory. This theory considers all of the many activities
that a business must conduct. Management is considered a primary business activity
and this theory provides detailed guidelines for managers.
The administrative theory and bureaucracy are closely related. In very many respects,
they are identical. For example, both are largely deductive and view the organization in
normative sense -that is, an abstract or a mental assembling or synthesis. Both streams
propose hierarchy, rationality, certainty professionalism and objectivity.
The bureaucracy also focuses on the organization while the Administrative theory
focuses on management - a component of the organization.

Fayol's 14 Principles of Management

1. Division of Work
2. Authority
3. Discipline
4. Unity of Command

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 5. Unity of Direction
6. Subordination of Individual Interests to the General Interest
7. Remuneration
8. Centralization
9. Scalar Chain
10. Order
11. Equity
12. Stability of Tenure of Personnel
13. Initiative
14. Esprit de Corps

 Bureaucracy approach
Bureaucracy Theory promotes reason to guide management decisions, rather than
charisma or nepotism. Developed by sociologist Max Weber, this theory emphasizes
formal authority systems. Unity and the authority of organizational hierarchies are
central to Bureaucracy Theory.
A form of structure to be found in many large-scale organizations is bureaucracy. Its
importance in the development of organization theory means that it is often regarded as
a sub-division under the classical heading and studied as a separate approach to
management and the organization of work.
Behavioral Management Approach
Increasingly complex industries and organizations gave rise to more human interests in
the workplace. Management theories began to include more people-oriented methods.
Human behavior and satisfying the interpersonal needs of employees became more
central to management. A manager practicing Behavioral Management Theory might
motivate teamwork through fostering a collaborative atmosphere.
There are two major theories that make up Behavioral Management approach:
 Human Relations Theory
The main emphasis of the classical writers was on structure and the formal
organization, but during the 1920s, the years of the Great Depression, greater attention
began to be paid to the social factors at work and to the behavior of employees within
an organization – that is, to human relations.
The Hawthorne experiments
The turning point in the development of the human relations movement (‘behavioral’ and
‘informal’ are alternative headings sometimes given to this approach) came with the
famous experiments at the Hawthorne plant of the Western Electric Company near
Chicago, America (1924–32) and the subsequent publication of the research findings.41
Among the people who wrote about the Hawthorne experiments was Elton Mayo (1880–
1949), who is often quoted as having been a leader of the researchers. However, there

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appears to be some doubt as to the extent to which Mayo was actually involved in
conducting the experiments and his exact contribution to the human relations movement
 Behavioral Science Theory
Behavioral Science Theory combines elements of psychology, sociology, and
anthropology to provide a scientific basis. It examines why employees are motivated by
specific factors, such as social needs, conflicts and self-actualization. This theory
recognizes individuality and the need for managers to be sociable.
The work of Maslow
A major impetus for the neo-human relations approach was the work of Maslow who, in
1943, put forward a theoretical framework of individual personality development and
motivation based on a hierarchy of human needs. The hierarchy ranges through five
levels from, at the lowest level, physiological needs, through safety needs, love needs
and esteem needs, to the need for self-actualization at the highest level. Individuals
advance up the hierarchy only as each lower-level need is satisfied. Although Maslow
did not originally intend this need hierarchy to be applied necessarily to the work
situation it has, nevertheless, had a significant impact on management approaches to
motivation and the design of work organization to meet individual needs. The work of
Maslow provides a link with the earlier human relations approach.
Some leading contributors

McGregor argued that the style of management adopted is a function of the manager’s
attitudes towards human nature and behavior at work. He put forward two suppositions
called Theory X and Theory Y which are based on popular assumptions about work and
people

Modern Management Approach

Modern organizations must navigate constant change and exponential complexities.
Technology is an element that can change and upend businesses very rapidly. Modern
Management Theory seeks to incorporate these elements with human and traditional
theories. A manager practicing Modern Management Theory might use statistics to
measure performance and encourage cross-functional cooperation.
Three major modern theories comprise Modern Management Theory:
 Quantitative Approach
Quantitative Theory arose out of the need for managerial efficiency during World War II.
It was developed using experts from multiple scientific disciplines to solve the issues
around integrating systems of people, materials and systems. This theory was
developed primarily to enhance and support military decision-making.
Evolving from the Decision Theory School, the Mathematical School gives a quantitative
basis for decision-making and considers management as a system of mathematical
models and processes. This school is also sometimes called, ‘Operations Research” or

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“Management Science School’. The main feature of this school is the use of mixed
teams of scientists from several disciplines. It uses scientific techniques for providing
quantitative base for managerial decisions. The exponents of this school view
management as a system of logical process.
 Systems Approach
Systems Theory views management as an interrelated component of the organization.
Instead of viewing the organization as a series of silos, each department is part of an
overall system or organism. Management must support goals and process flows that
serve the overall organizational health.
In the 1960, an approach to management appeared which tried to unify the prior
schools of thought. This approach is commonly known as ‘Systems Approach’. Its early
contributors include Ludwing Von Bertalanffy, Lawrence J. Henderson, W.G. Scott,
Deniel Katz, Robert L. Kahn, W. Buckley and J.D. Thompson.They viewed organization
as an organic and open system, which is composed of interacting and interdependent
parts, called subsystems. The system approach is to look upon management as a
system or as “an organized whole” made up of subsystems integrated into a unity or
orderly totality.
The basic features of systems approach are as under:
(i) A system consists of interacting elements. It is set of inter related and interdependent
parts arranged in a manner that produces a unified whole.
(ii) The various sub-systems should be studied in their inter- relationships rather, than in
isolation from each other.
(iii) An organizational system has a boundary that determines which parts are internal
and which are external.
(iv) A system does not exist in a vacuum. It receives information, material and energy
from other systems as inputs. These inputs undergo a transformation process within the
system and leave the system as output to other systems.
(v) An organization is a dynamic system as it is responsive to its environment. It is
vulnerable to change in its environment.
The systems approach is considered both general and specialized systems. The
general systems approach to management is mainly concerned with formal
organizations and the concepts are relating to technique of sociology, psychology and
philosophy. The specific management system includes the analysis of organizational
structure, information, planning and control mechanism and job design, etc.
Systems theory is useful to management because it aims at achieving the objectives
and it views organization as an open system. Chester Barnard was the first person to
utilize the systems approach in the field of management.
 Contingency Theory
The contingency approach is the latest approach to the existing management
approaches. During the 1970’s, contingency theory was developed by J.W. Lorsch and

99
P.R. Lawrence, who were critical of other approaches presupposing one best way to
manage. Management problems are different under different situations and require to
be tackled as per the demand of the situation.

This approach calls for an identification of the internal and external variables that
critically influence managerial revolution and organizational performance. According to
this, internal and external environment of the organization is made up of the
organizational sub-systems. Thus, the contingency approach provides a pragmatic
method of analyzing organizational sub-systems and tries to integrate these with the
environment.

Features of Contingency Approach:

Firstly, the contingency approach does not accept the universality of management
theory. It stresses that there is no one best way of doing things. Management is
situation, and managers should explain objectives, design organizations and prepare
strategies, policies and plans according to prevailing circumstances.
Secondly, managerial policies and practices to be effective, must adjust to changes in
environment.

CIVIL SERVICE COMMISSION

“Competency-Based Recruitment and Qualifications Standards”

The CSC aims to integrate competencies in human resource systems of government

agencies, starting with recruitment. Thus, the Competency-Based Recruitment and
Qualifications Standards (CBRQS) was born. With this program, the CSC recognizes
that hiring and retaining the best employees will lay the foundation for developing high
performing, competent, and credible civil servants.
A competency is often defined as a set of observable, measurable, and vital skills,
knowledge, and attitudes that are translations of capabilities deemed essential for
organizational success.

Qualification Standards + Competencies

The current recruitment system in the Philippine civil service is based on Qualification
Standards (QS), a minimum set of requirements comprised of education, eligibility,
training, and experience.

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The CBRQS adds competencies to the minimum QS requirements to improve accuracy
in assessing a candidate’s fitness to a particular job.

Moreover, the competency framework or model is aligned to the agency’s strategic

thrusts, ensuring that each employee is able to contribute to organization-wide goals.

Why Competency-Based Recruitment?

Competencies serve as objective guide in the assessment of candidates; hence it
improves accuracy in assessing candidate’s fitness to a particular job.

Competency-based recruitment minimizes hiring errors as it helps prevent interviewers

and selectors from assessing interviewees on the basis of characteristics that are not
relevant to the job or from making hasty decisions.
Competency-based recruitment leads to a standardized or structured selection process
since the same metrics are used to assess all applicants to the same position.
Competency-based recruitment provides clarity for the recruiters and candidates as well
about the requirements for the vacant position to be filled.

Status of the Program

At present, the CSC has begun applying competencies to its own recruitment process
as it hopes to be a model in competency-based human resource management for other
government agencies.

Principles & Policies for Managing Human Resources

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POLICY STATEMENT
Selection criteria are the reasonable and bona fide requirements for the safe, efficient
and effective performance of assigned work.

INTENT
Selection criteria are the reasonable and bona fide occupational requirements to ensure
that work is performed safely, efficiently and effectively. They are measurable and
reflect the needs of the organization articulated in terms of an individual's set of
competencies, not limited to: qualifications, knowledge, skills, experience and abilities.
The selection criteria must reflect the staffing principles of merit, fairness and equity.

POLICY APPLICATION
Every staffing action, including direct appointments, must be based on selection criteria.
Selection criteria are measurable and may include both essential and desired criteria.

PRACTICES
Selection criteria are used for many purposes in the staffing process:
 To develop screening criteria
 To prepare the job advertisement
 To design assessment methods
 For rating and ranking candidates
 To guide the selection board in making an objective selection decision
 To conduct reference checks
 To provide reasons for non-selection to candidates

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 REFERENCES

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