MODULE II

1. Organization
Organization is a process which integrates different type of activities to achieve organizational goals and objectives,
to achieve these goals there must be competent management providing them all those factors to perform their job
efficiently and effectively. Organization is nothing but is a process of integrating and coordinating the efforts of men
and material for the accomplishment of set objectives.

2. CHARACTERISTICS OF ORGANISATION
i.Organization is an open system: An open system means open to environment. Organization exists and functions in
environment. Environment compels the organization to acquire right type of people, technology and structure so that
the goals to serve the environment can be attained. The organization is thus greatly influence the environment.
Usually the demands or wants of the people determines the strategies and goals of an organization. What are the
needs in the market and how an organization can bring new and needy products to the market create an interaction
between the organization and the environment. Without interaction, organization cannot fulfil required products or
services to the user’s groups. This way, an organization is an open system, without which it cannot survive.
ii.Organization is goal oriented: Without goal or set of goals, organization is useless. There is nothing for the
organization to do. Therefore, the major characteristic of any organization is its goal. Type of people or technology is
adopted so that the set goal can be achieved. The goal gives line of action; acquire required type of people and uses
type of technology so that the goal is achieved in an anticipated time point. Without goal, organization cannot be
formed.
iii.Organization is a collection of people: People are the main performers in any organization. In other world, all the
elements of any organization are the same except the people. Even with the same age, qualification, experience and
facilities, the output of the people may vary, simply because the needs and wants of all people are not the same.
What makes them work by heart and head is the one that differentiate organizations from one to others.
iv.Organization consists of technology: Technology is the means of doing works. There are various kinds of doing works.
As an organization consists of more people, its performance procedure should be of a fixed type so that each
individual in the organization can exercise them well. This is how technology initiates. Technology eases the work and
shortens the time. Technology originates a certain policy necessary to keep organizational beliefs in doings of the
various people at different structural level. This saves the integrity of the people in achieving goals.
v.Organization has continuity: As the organization involves people, and the people generate different needs, they can
leave the organization or some may die too. This does not affect the organization to stop or decrease in size. Hence,
it is said that every organization has its own continuity. A good manager can leave but other better man can take over
the charge of the organization.
3. The Organizational Process
1. Fixing the objectives of the organization: At the top level, administrative management first fixes the common
objectives of organisation. At the middle level, executive management fix the departmental objectives. Lastly, at the
lower level, supervisory management fix the day-to-day objectives. All the objectives of the organisation must be
specific and realistic
2. Finding activities must for achieving objectives: After fixing the objectives, the top-level management prepares a
list of different activities (or works) which are required to be carried out for achieving these objectives. This list is
prepared at random without following any sequence or order. This is a very important step because it helps to avoid
duplication, overlapping and wastage of efforts.
3. Grouping the similar activities: All similar or related activities having a common purpose are grouped together to
make departments. For e.g. all activities or works which are directly or indirectly connected with purchasing are
grouped together to make the Purchase Department. So various departments such as Purchase, Production,
Marketing, Finance, etc. are made. The grouping of similar activities leads to division of labour and specialisation.
4. Defining responsibilities of each employee: The responsibilities (duties) of each employee are clearly defined. This
will result in the selection of a right person for the right post / job. He / she will know exactly what to do and what
not to do. Therefore, it will result in efficiency.
5. Delegating authority to employees: Each employee is delegated (surrender or given) authority. Without authority,
the employees cannot carry out their responsibilities. Authority is the right to give orders and the power to get
obedience. The authority given to an employee should be equal to the responsibility given to him.
6. Defining authority relationship: When two or more persons work together for a common goal, it becomes
necessary to clearly define the authority relationship between them. Each person should know who is his superior,
from who he should take orders, and to whom he will be answerable. Similarly, each superior should know what
authority he has over his subordinates.
7. Providing employees all required resources: After defining the authority relationships, the employees are provided
with all the material and financial resources, which are required for achieving the objectives of the organisation. So,
in this step, the employees actually start working for a common goal.
8. Coordinating efforts of all to achieve goals: This is the last stage or step in the process of organisation. Here, the
efforts of all the individuals, groups, departments, etc. are brought together and coordinated towards the common
objectives of the organisation.

4. Principles of Organisation
1. Objectives: The objectives of the enterprise influence the organization structure and hence the objectives of the
enterprise should first be clearly defined. Then every part of the organization should be geared to the achievement
of these objectives.
2. Specialisation: Effective organization must promote specialisation. The activities of the enterprise should be divided
according to functions and assigned to persons according to their specialisation.
3. Span of Control: As there is a limit to the number of persons that can be supervised effectively by one boss, the
span of control should be minimum as far as possible, the minimum, that means an executive should be asked to
supervise a reasonable number of subordinates only, say six.
4. Exception: As the executives at the higher level have limited time, only exceptionally complex problems should be
referred to them and routine matters should be dealt with by the lower levels. This will enable the executives at
higher level to devote time to more important and crucial issues.
5. Scalar principle: This principle is sometimes known as the "chain of command". The line of authority from the chief
executive at the top to the front - line supervisor at the bottom, must be clearly defined.
6. Unity of Command: Each subordinate should have only one supervisor whose command he has to obey. Dual
subordination must be avoided, for it causes uneasiness, disorder, indiscipline and undermining of authority.
7. Delegation: Proper authority should be delegated at the lower level of organization also to carry out the work
effectively.
8. Responsibility: The superior should be responsible for the acts of his subordinates.
9. Authority: Authority is a tool by which a manager accomplishes the desired objectives, which should be clearly
defined.
10.Efficiency: The organization structure should help enterprise to function efficiently to accomplish the objectives at
lowest cost.
 11.Simplicity: The organization structure should be simple and the levels should be as minimum as possible.
12.Flexibility: Should be flexible, adaptable to changing circumstances, permit expansion, replacement, without
dislocation and disruption of the basic design.
13.Balance: There should be a reasonable balance in the size of various departments, between centralization and
decentralization, between the principle of span of control and short chain of command and among all types of
factors such as human, technical and financial.
14.Unity of direction: Should be one objective and one plan for a group of activities having same objectives. Unity of
direction facilities unification and coordination of activities at various levels.
15.Personal Ability: As people constitute an organization, there is need for proper selection, placement and training of
staff. Organisation structure must ensure optimum use of human resources and encourage management
development programme.

5. SPAN OF MANAGEMENT
The Span of Management refers to the number of subordinates who can be managed efficiently by a superior. Simply,
the manager having the group of subordinates who report him directly is called as the span of management.
Span of management is Span of control -the number of subordinates a supervisor has—is used as a means of ensuring
proper coordination and a sense of accountability among employees. It determines the number of levels of
management an organization has as well as the number of employees a manager can efficiently and effectively
manage. In the execution of a task, hierarchical organizations usually have different levels of task processes. Workers
at various levels send reports on their progress to the next levels until the work is completed.
In the past it was not uncommon to see average spans of one to four (one manager supervising four employees).
With the development of inexpensive information technology in the 1980s, corporate leaders flattened many
organizational structures and caused average spans to move closer to one to ten. As this technology developed further
and eased many middle-managerial tasks (such as collecting, manipulating, and presenting operational information),
upper management found they could save money by hiring fewer middle managers.
Research Studies of management have found that this number (span) is usually 4-8 subordinates at the upper
levels of organization and 8-15 or more at the lower levels. However this is not definite.

6. DEPARTMENTALISATION
Departmentalization is the process of grouping individuals into departments and grouping departments into
total organizations.
1. FUNCTIONS
• Each major function of the enterprise is grouped into a department. Various functions are Marketing,
Engineering, Production, Finance, Personnel, Purchase etc.
• Advantages:
o Simple form of grouping activities for small organizations which manufacture only a limited number of products
or render only a limited number of services.
o It promotes excellence in performance.
o It leads to improved planning and control of the key functions.
o It ensures economy, there is only one department related to one function for the entire function.
• Drawbacks
o De-emphases overall company objectives.
o Leads to over specialization of people.
o Reduces coordination between functions.
o Slow adoption to changes in environment.
o Limits development of general managers.
2. PRODUCTS
• This is more suitable for a large organization that manufactures a vast variety of products.
• Under this separate groups or departments are created and each department is controlled by a manager who
will be responsible for all the activities of that sub group.
• Each subgroup will have its own facilities required for manufacture, purchase, marketing and accounting etc.
• Advantages:
o Top management is relieved of operational task enabling them to concentrate more on common goals. Enables
top management to compare the performances of different products and invest more resources in profitable
products.
o Managers of individual products put better effort to improve his area compared to others.
• Drawbacks:
o This form results in duplication of staff and facilities.
o Extra expenditure is incurred in maintaining a sales force for each product line.
o Employment of large number of managerial personnel is required.
o May result in underutilization of facilities and equipment’s.
3. CUSTOMERS
• An enterprise may be divided into a number of departments on the basis of the customers that it services.
• The advantage is it ensures full attention to major customer groups which have a very different set of criteria
governing their decision to purchase.
• The disadvantages of this form are
o It may result in under- utilization of resources and facilities.
o May be duplication of facilities.
4. REGIONS or TERRITORY
• When several production or marketing units of an organization are geographically dispersed in various locations,
it is logical to departmentalize those units on geographical basis.
• Advantages:
o It motivates each regional head to achieve high performance.
o It provides each regional head an opportunity to adapt to his local situation.
o It affords valuable top-management training and experience to middle-level executives.
o It enables Organization to compare Regional Performances & invest more in Profitable Areas & withdraw
Resources from Unprofitable Ones.
• Drawbacks:
o It gives rise to duplication of various activities.
o Various regional units may become so engrossed in short-run competition and forget the overall interest of total
organization.
5. TIME
• In departmentalization by time, activities are grouped on the basis of timing of their performance.
• Advantages:
o Facilitates use of processes that cannot be stopped or interrupted.
o Expensive capital equipment can be better utilized.
o Higher and continuous production per day
• Drawbacks:
o Lacks good end efficient supervision during night shifts.
o Lack of effective coordination and communication from people of one shift to next shift.
o Loss of product or service may increase.
6. PROCESS
• Departmentalization is done on the basis of several discrete process or technologies involved in the manufacture
of a product.
• Advantages:
o It facilitates the use of heavy and costly equipment in an efficient manner.
o It follows the principle of specialization.
• Drawbacks:
o Workers tend to feel less responsible for the whole product.
o It does not provide good training and opportunity for overall development of managerial talent.
o Top management needs to devote extra attention to maintaining inter-department co-operation.
7. TYPES OF COMMITTEES
“A committee is a group of persons performing a group task with the object of solving certain problems”.
1. Ad-Hoc committee – what is an ad-hoc committee? The word ad-hoc is derived from the Latin language, which
means ‘for a specific purpose’. An ad hoc committee is therefore a committee that is set up for the main purpose of
performing a specific task or dealing with a specific situation. Having completed the specific task and submitted its
report, the ad hoc committee is then dissolved. Majority of committees in business organizations and other places
are ad hoc types. For example, an ad hoc committee could be formed by the management of an organization to
investigate into the causes of a particular problem be devilling the organization. After the completion of the task
and submitting a report, the ad hoc committee is dissolved.
2. Executive committee – as the name suggests, this type of committee is made up of people occupying top positions
in an organization who have the powers to administer the day-to-day affairs of the organization. Executive
committees are mainly made up of senior management personnel, and just like any other committee in a business
organization, the executive committee is given the mandate to perform special assignments or tasks.
3. Sub-committee – a sub-committee as the name implies, is basically a subsidiary committee. This means that it is
connected with a larger committee that is more powerful and important than it. A sub-committee is said to be a
child of a parent committee. A large committee can appoint one or more of its members to form another committee
under it in the name of a sub-committee. The large committee underneath which the sub-committee is formed is
the parent committee.
4. Coordinating or Joint committee – this is a type of committee that acts as a link between two committees and joins
or coordinates their actions together. Such a committee would normally be composed of representatives from the
other committees whose activities it is coordinating. Committees are very important in business organizations since
they help in resolving problems and also promotes the exchange of opinions among members for the betterment
of the organization.

• Advantages of Committees
o Committees provide a forum for the pooling of knowledge and experience of many persons of different skills, ages
and backgrounds.
o Committees are excellent means of transmitting information and ideas both upward and downward.
o Committees are impersonal in action and hence their decisions are generally unbiased and are based on facts.
o When departmental heads are members of committee, people get an opportunity to understand each other’s
problems and hence improve coordination.
• Weaknesses of Committees
o In case a wrong decision is taken by committee, no one is held responsible which may result in irresponsibility
among members.
o Committees delay action
o Committees are expensive form of organization.
o Decisions are generally arrived at on the basis of compromise and hence they are not best decision.
o As committee consists of large number of persons, it is difficult to maintain secrecy.

8. CENTRALIZATION VS DECENTRALIZATION OF AUTHORITY AND RESPONSIBILITY

• AUTHORITY
It is the formal right given to an individual to command (the action of others). According to Koontz, it is the tool by
which a manager is able to exercise discretion and to create an environment for individual performance. An authority
may be defined as the "right to act". It may also be referred to as the power to take necessary steps or decisions in
order to achieve organization's goals.
• RESPONSIBILITY
It is also called as Accountability or Answerability. It may be considered as the obligation of a subordinate to his
superior to do a work assigned to him.
• Centralization refers to systematic reservation of authority at central points within the organization.
• Centralization means retention or concentration of managerial authority in few key managerial positions at the nerve
center of an organization i.e., at the top level.
• Everything that goes to reduce the subordinate’s role in decision making is centralization. Decentralization means
dispersal of decision-making power to lower levels of the organization.
• In decentralized setup, ultimate authority to command and ultimate responsibility for the results is localized as far
down in the organization.
• “Decentralization refers to the systematic effort to delegate to the lower levels all authority except that which can
only be exercised at central points”.
• In decentralized setup large number of decisions, important decisions in large number of areas are made consulting
few people.
• Advantages in decentralization
o It eases the burden of top-level managers.
o Decentralization permits quicker and better decision making.
o With decentralization capable managers can be developed
o Promotes participation in decision making and improves morale and motivation.
o Decentralization facilitates diversification of products.
• Disadvantages of decentralization
o It increases administrative expenses.
o It may create problems in bringing coordination among various units.
o It may bring about inconsistencies in the company, because uniform procedures may not be followed for the
same type of work in various divisions.
9. NATURE AND IMPORTANCE OF STAFFING
Staffing is defined as "filling and keeping filled, positions in the organization structure". It is also known as "human
resource management". This includes identifying the requirement of work-force, taking inventory of people available,
recruiting, selecting, placing, promoting, appraising, planning the employee's careers, training them to suit the job,
developing the staff to carry out the defined job effectively and efficiently.

• Staffing is filling and keeping filled, positions in the organization structure. It is human resource management.
• The staffing is important because
o It helps in discovering talented and competent workers and developing them to move the organizational ladder.
o Staffing is important to put the right person at right job which results in increased production.
o It avoids sudden disruption of the production due to shortage of workers, since it plans and fills the positions.
o It maintains harmony and creates healthy atmosphere.
o It plans the requirement of man power at various time and levels of project.
• Elements of staffing
o Proper placement of people.
o Rational recruitment and selection.
o Proper positioning and fixation of salaries.
o Providing necessary training for the people to carry out job.
o Good promotional policies and retirement scheme.
• Functions of staffing
o Man power planning: The first function of staffing is to plan the requirement of man power in various levels of
organization to achieve the objectives of the organization. Man power planning involves short term and long term.
Short term is the immediate requirement of man power to reach the targets where as long-term planning involves
the requirement of people for future proposed projects.
o Development: Development means preparing the people of an organization to develop required skills to perform
their tasks. This involves training of people.
o Fixing employment standards: The staffing defines and fixes the responsibilities of people. The specification and
qualifications of people to be put on a particular job are prepared.
o Sources of selection: The staffing identifies and specifies sources of selection like internal or external sources. A
position may be filled by people from internal source available with in the organization either by transfer or
promotion. External sources may be considered for filling a position from outside organizations.
o Selection: After having identified the sources of selection, next function is selection process. People are selected
as per specifications and qualifications set earlier and recruited. The selected people are placed on the job.
 o Training: If required, the selected people are given necessary training to carry out the specific job.
o Routine functions: In addition to the above functions, the staffing also involves in promotion, transfer,
punishment, motivation, welfare, coordination, retirement etc.

10. RECRUITMENT
• Recruitment is the process of identifying the sources for prospective candidates and to stimulate them to apply for
the jobs.
• It is a linking activity that brings together those offering jobs and those seeking jobs.
• Recruitment refers to the attempt of getting interested applicants and providing a pool of prospective employees so
that the management can select the right person for the right job from this pool.
• The various sources of recruitment are divided into two categories:
o Internal Sources.
o External Sources.
• Internal sources
o Internal sources involve transfer and promotion.
o Transfer involves the shifting of an employee from one job to another.
o Many companies follow the practice of filling higher jobs by promoting employees who are considered fit for
such positions.
o Filling higher positions by promotion motivates employees, boots employee’s morale.
• External Sources
o Direct recruitment
o Unsolicited applications
o Advertising
o Employment agencies
o Educational institutions
o Labour contractor
o Recommendations

11. SELECTION PROCESS

• The process of selection leads to employment of persons having the ability and qualifications to perform the jobs
which have fallen vacant in an organization.
• It divides the candidates into two categories; those will be offered employment and those who will not be.
• The basic purpose of the selection process is choosing right type of candidates to man various positions in the
organization.
Selection process:
o Receipt of applications
o Screening of applications
o Employment tests
o Interviews
o Background investigation and medical examination
o Final selection
 MODULE II B
1. MEANING OF DIRECTION
Direction means issuing of orders, leading and motivating subordinates as they go about executing orders. It is also
defined as the process and techniques used for issuing instructions to carry out a job and making sure that the
operations are carried out as per the plan. Directing is the interpersonal aspect of managing by which subordinates
are led to understand and contribute effectively and efficiently to the attainment of enterprise objectives. The
direction has two major activities namely
1. Giving orders to employees
2. Leading and motivating them to accomplish the goals.

2. REQUIREMENTS OF DIRECTION
1. Harmony of objectives: For an organization to function well, it the goals of company and goals of individuals are in
complete harmony. It is very uncommon for such a situation to exist in any organization. Individual goals may differ
from the goals of the organization. The manager should coordinate the individual goals to be in harmony with the
goals of the organization.
2. Unit direction of command: This principle implies that an employee should receive orders and instructions only from
one supervisor or boss. Otherwise, there may be indiscipline and confusion leading to conflicting orders, divided
loyalties and reduced results.
3. Efficiency: If the superior consults with the subordinates in decision-making, then there would be a sense of
commitment. This makes the direction easy and improves the efficiency of subordinates.
4. Direct supervision: Managers should have direct face-to-face contact with the subordinates. Personal touch with
subordinates will ensure successful direction.
5. Effective communication: The supervisor must have good communication skills. He must clearly communicate the
plans, goals, policies, responsibilities and the duties to the subordinates. In communication, comprehension is more
important than the content.
6. Effective control: The management should monitor the behavior and performance of subordinates to exercise
effective control over subordinates.
7. Follow-through: Direction is a continuous process. Having given the directions may not ensure carrying out them.
Hence a manager should follow-through the performance of his subordinates. Follow up is very important function
of direction.

3. GIVING ORDERS
The order is a devise employed by a line manager in directing his immediate subordinates to start an activity, stop it
and modify it.
Mary Parker Follett lays down the following principles which should be followed in giving orders:
1. The attitude necessary for the carrying out of an order should be prepared in advance. People will obey an order only
if it appeals to their habit patterns. Therefore, before giving orders, it should be considered how to form the habits
which will ensure their execution.
2. Face-to-face suggestions are preferable to long distance orders.
3. An order should be depersonalized and made an integral part of a given situation so that the question of someone
giving and someone receiving does not come up. Thus, the task of the manager is to make the subordinates perceive
the need of the hour so that the situation communicates its own message to them.
Chester Barnard lays down four conditions which make an order acceptable. These are:
1. Order should be clear and complete;
2. Order should be compatible with the purpose of the organization;
3. Order should be compatible with the employee's personal interest; and
4. Order should be operationally feasible.
Orders may be communicated verbally or in writing. Written orders are appropriate when
1. the subject is important
2. many details are involved
3. there is geographical distance between the order giver and the recipient.
A manager may follow four types of methods to ensure compliance to his orders:
1. Force 2. Paternalism 3. Bargain 4. Harmony of objectives.
5. NATURE OF MOTIVATION
1. Individuals Differ in Their Motives
People are driven by different things, and it’s unrealistic to think one motive, like money, drives everyone. A story
illustrates this well: Three men were cutting stones near a cathedral. When asked what they were doing, the first man
said, “I’m earning 10 shillings a day.” The second replied, “I’m making sure this stone is perfectly shaped.” The third
proudly said, “I’m helping build a cathedral.”
The first was motivated by money, the second by the quality of his work, and the third by contributing to something
bigger. This shows that people find satisfaction in different ways, and no single strategy can keep everyone equally
motivated. Managers must recognize these differences to effectively lead their teams.
2. Sometimes the Individual Himself is Unaware of His Motive
People aren’t always aware of what truly drives them. Freud compared the human mind to an iceberg—what’s visible
is only a small part, with much more hidden beneath the surface.
In the famous Hawthorne experiments, a worker disliked her foreman. It later emerged that he reminded her of her
stepfather, whom she feared. She wasn’t consciously aware of this connection, but it shaped her feelings and actions.
This unconscious motivation often makes it hard for people to explain their own behavior.
3. Motives Change
Motivations aren’t fixed; they shift over time. A temporary worker may initially work hard to secure a permanent
position. Once they achieve that, their focus might change to earning a promotion or learning new skills.
Leaders need to stay attuned to these evolving motivations. What drives an employee today may not be what drives
them tomorrow, even if their behavior remains the same.
4. Motives Are Expressed Differently
People with the same motive may express it in different ways. Take job security, for example. One employee might
avoid taking risks to protect their job, while another might take on more responsibility to prove their value and ensure
they stay employed.
Even the same person might express their motives differently at different times. An employee initially motivated by a
promotion may, if frustrated, channel that energy into union activities to push for change. Recognizing these varied
expressions helps managers avoid being misled by surface behavior.
5. Motives Are Complex
Human behavior isn’t always predictable. A seemingly positive change can lead to unexpected outcomes.
In one factory, blue-green lighting was introduced to reduce eye strain. While the male workers’ productivity
increased, the female workers’ productivity dropped. Why? They felt the lighting made them look unattractive.
This example shows how intertwined and complex motives can be. Even a well-meaning change can have different
effects on different people.
6. Multiple Motives Make the Choice of Goals Difficult for an Individual
People rarely have just one motive at a time. Often, they’re juggling several, and these can conflict with one another,
making decision-making tough. These conflicts usually fall into three categories:
• Approach-Approach Conflict: When someone must choose between two equally desirable options. For instance,
staying in a current job they like or moving to a new one with better pay.
• Avoidance-Avoidance Conflict: When both choices are undesirable, like staying in a dissatisfying job or facing
unemployment.
• Approach-Avoidance Conflict: When a choice has both positives and negatives. For example, working overtime might
mean extra income but less time with family.
6. MOTIVATION THEORIES
There is no shortage of motivation theories. We can classify them under three broad- heads:
1. Content theories
2. Process theories
3. Reinforcement theory
The content theories tell us what motivates an individual. They throw light on the various needs and incentives which
cause behavior. The process theories, on the other hand, answer the question how behavior is caused. Reinforcement
theory explains the ways in which behavior is learned, shaped or modified.
1. MASLOW'S HIERARCHY OF NEEDS THEORY
Maslow's theory suggests that humans have various needs, and motivation arises from the desire to satisfy an
unsatisfied need. Once a need is identified, a person sets a goal and takes action to fulfill it. Maslow categorizes these
needs into five levels:
1. Physiological Needs: These are basic survival needs such as food, water, and air. Without partial satisfaction of these
needs, survival is threatened.
2. Security Needs: These include both economic security (protection from layoffs, disasters) and psychological security
(confidence in handling future challenges).
3. Social Needs: These are the need to associate with others, to love and be loved, and to feel accepted. Humans
experience satisfaction through social connections and feel deprived without them.
4. Esteem Needs: These relate to respect and recognition, both from oneself and from others. They include self-esteem
(feeling worthy) and esteem from others (being valued).
5. Self-Fulfillment Needs: Also known as self-actualization, these involve realizing one’s potential and becoming what
one is capable of. For instance, a musician must create music to achieve fulfillment.
Maslow believes people prioritize needs in a hierarchical order. Physiological needs are addressed first. Once satisfied,
they lose their motivational power, and security needs take over. This progression continues up the hierarchy, with
each level becoming dominant only after the previous one is reasonably satisfied.
Characteristics of Human Needs
Human needs are often divided into:
• Lower-Order Needs: Physiological and security needs.
• Higher-Order Needs: Social, esteem, and self-fulfillment needs.
Criticism of the Theory
1. Hierarchy Is Not Fixed: The order of needs can vary. For instance, creative individuals may prioritize self-actualization
even before their basic needs are met. On the other hand, individuals facing repeated failures in higher-level needs
might regress to lower-level needs. Sometimes, multiple needs operate simultaneously, such as being hungry while
needing love and affection.
2. Complexity of Human Behavior: Behavior is often driven by multiple motives rather than a single one. Understanding
the true motivation behind an individual's actions is challenging because various motives can influence behavior at
the same time, making it multi-motivated and complex.
2. HERZBERG'S MOTIVATION-HYGIENE THEORY (TWO-FACTOR THEORY)
Proposed by Frederick Herzberg in 1959, the Motivation-Hygiene Theory is based on a study of 200 engineers and
accountants. Herzberg concluded that two distinct sets of factors influence workplace behavior: Hygiene factors and
Motivators.
1. Hygiene Factors
These factors prevent dissatisfaction but do not motivate employees when present. Their absence, however, causes
dissatisfaction. They are also called maintenance factors or dissatisfiers and include:
• Company policy and administration
• Supervision
• Working conditions
• Salary and status
• Job and personal security
• Interpersonal relationships with superiors, peers, and subordinates
Herzberg emphasized that the opposite of satisfaction is not dissatisfaction, but "no satisfaction," and vice versa.
2. Motivators
Motivators, or satisfiers, enhance job satisfaction and drive employees to perform better. These include:
• Challenging work
• Responsibility
• Recognition
• Promotion opportunities
• Achievement
• Job content
Motivators increase satisfaction but their absence leads to "no satisfaction," not dissatisfaction.
Summary
• Hygiene Factors:
o Absent → Increase dissatisfaction
o Present → Prevent dissatisfaction
• Motivators:
o Absent → Prevent satisfaction
o Present → Increase satisfaction
Criticisms of Herzberg's Theory
1. People may not accurately report what satisfies or dissatisfies them.
2. What dissatisfies one person may satisfy another.
3. People tend to credit themselves for successes and blame external factors for failures.
4. The theory does not measure levels of satisfaction or dissatisfaction.
5. It oversimplifies complex workplace dynamics.

COMPARISON OF MASLOW AND HERZBERG THEORIES

Both theories focus on factors that motivate employees. Maslow's theory is based on a hierarchy of needs, while
Herzberg's is centered on two-factor groups without hierarchy. Maslow considered all needs as motivators, whereas
Herzberg emphasized that only higher-order needs motivate. Maslow’s lower-level needs (physiological, safety, and
social) align with Herzberg’s hygiene factors, while Maslow’s higher-level needs (esteem and self-actualization)
correspond to Herzberg’s motivators, which drive job satisfaction and performance.
7. IMPORTANCE OF COMMUNICATION
Communication means the process of passing information and understanding from one person to another
1. Communication is fundamental to accomplish work
Managers spend most of their time communicating—reading, writing, speaking, or listening. Communication helps
persuade, inform, motivate, and lead employees toward organizational goals. Without communication, work cannot
be accomplished.
2. Communication facilitates planning
Planning, a critical function of management, requires communication among all levels of the organization. It
involves gathering input from key executives and personnel to create effective plans.
3. Communication helps in decision-making
Managers depend on communication to gather the right information for decision-making. It helps them weigh pros
and cons thoroughly before making informed choices.
4. Communication is the basis of coordination
Effective communication is essential for coordination across departments to achieve common goals. A good
communication system enables people to align their efforts and cooperate towards organizational objectives.
5. Communication improves relationships between employees
Communication fosters better relationships among employees, creating a sense of unity and purpose. It enables the
exchange of work-related and personal information, improving understanding and teamwork.
6. Communication improves morale and motivation
When managers listen to employees' grievances and take action, morale and motivation improve. Effective
communication addresses issues, ensuring employees feel heard and valued.
7. Communication is key to managerial efficiency
For managers, good communication skills are crucial to success. Their ability to effectively communicate influences
their effectiveness and the growth of the organization.

8. PURPOSES OF COMMUNICATION
1. Communication in Recruitment
Communication is essential in the recruitment process, where it informs potential employees about the company’s
structure, policies, and practices, persuading them of the benefits of joining the organization.
2. Communication in Orientation
Orientation involves communicating rules, regulations, and introductions to colleagues, ensuring smooth
integration of new employees into the workplace.
3. Communication for Effective Performance
Employees need clear communication to understand how their roles fit into the larger organizational goals. Knowing
the purpose behind their work, like a nurse understanding the connection between patient procedures and therapy,
fosters greater commitment and performance.
4. Communication for Performance Evaluation
Feedback on performance through communication helps employees understand their strengths and areas for
improvement. Regular evaluation boosts morale and motivates employees, encouraging career growth.
5. Communication for Safety
Communication regarding safety procedures is vital to reduce workplace accidents. It helps prevent legal costs,
decreases compensation claims, and minimizes the need for recruiting and training replacements.
6. Communication for Projecting the Enterprise’s Image
Effective communication shapes the public image of the organization. Informing the public about company goals
and actions can enhance reputation. For example, ONGC’s clear communication during the 1982 Bombay High
blowout contrasted with Union Carbide’s poor handling of the Bhopal Gas leak incident.
7. Communication in Decision-Making
Managers depend on communication for the information needed to make informed decisions. By filtering relevant
data, they can make choices that contribute to the success of the organization.
8. Communication for Coordination
In large organizations, coordination across specialized departments is key. A good communication system ensures
that all departments are informed about each other’s activities, fostering cooperation. As March and Simon noted,
effective communication increases tolerance for interdependence.
9. Communication for Cooperation and Industrial Peace
Many workplace disputes arise from communication breakdowns. By ensuring open communication, both
management and employees can better understand each other’s needs, leading to cooperation, goodwill, and a
peaceful work environment.
10. Communication to Increase Managerial Efficiency
Managers spend a significant portion of their time communicating. Strong communication skills are essential for
managerial success, as effective communication directly influences performance and decision-making.

9. DIFFERENCE BETWEEN A LEADER AND A MANAGER

Leadership is an important aspect of managing. Leadership is defined as "Influence, that is, the art or process of
influencing people so that they will strive willingly and enthusiastically towards the achievement of group goals".
(Koontz and Weihrich) In other words, people should be encouraged to develop not only willingness to work but also
willingness to work with zeal and confidence
Here is a reduced version of the text with 170 words:
DIFFERENCE BETWEEN A LEADER AND A MANAGER
1. A leader emerges based on situational factors, while a manager is appointed to the position.
2. A leader possesses personal power, allowing them to influence, but may not have positional power. A manager,
however, always holds positional power, whether or not they have personal power.
3. A leader focuses on people and aligns objectives with their followers. In contrast, a manager focuses on systems and
structures, often pursuing objectives that their subordinates do not regard as their own.
4. A leader is forward-thinking, innovative, and challenges the status quo, believing in doing the right things. A manager
typically follows rules, accepts the status quo, and focuses on doing things right to handle complexity.
Despite these differences, in today’s dynamic business environment, managers often take on leadership roles.
Therefore, the terms ‘leaders’ and ‘managers’ are sometimes used interchangeably.

10. CHARACTERISTICS OF LEADERSHIP

1. Leadership implies the existence of followers
Leadership quality is assessed by the followers' commitment. The leader’s effectiveness is reflected in how many
followers they have, the strength of their commitment, and how long it lasts. Even leaders in organizations are also
followers of someone higher up the hierarchy, so they must balance leadership with being accountable to others.
2. Leadership involves a community of interest
Leadership is about a shared purpose. The leader and the followers must have mutual objectives. If a leader's goals
are different from those of their team, effective leadership cannot exist. As G.R. Terry said, “Leadership is the
activity of influencing people to strive willingly for mutual objectives.”
3. Leadership involves an unequal distribution of authority
Leaders hold authority over their followers, directing their activities. While group members influence the leader,
they cannot direct the leader's actions in return. The unequal power structure is essential for leadership.
4. Leadership implies the ability to influence followers
Leaders not only give directions but also influence their followers through their actions and behavior. Command
alone brings temporary change, while influence creates lasting behavioral and attitudinal change. Effective
leadership is characterized by influencing followers beyond just giving commands.

11. BEHAVIOURAL APPROACH OF LEADERSHIP

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