Q 1 : GROUP A group is any number of people who:• have a common purpose or objective • interact with each other to accomplish their objective • are aware of one another • perceive themselves to be part of the group This is the way Huse and Bowditch (1977) defined a group. You were asked at the beginning as to how many different groups you belong to. You may see, from the above definition that throughout our lives, we belong to many different groups. Families are groups, a cricket team is a group, a club is a group, drama and music organisations are all groups. You can thus apply the concept of group to various examples of religion, politics, consumer, sports, etc. as the case may be. Types of Groups i) Formal Groups : These groups are established by the organisation to accomplish specific tasks. According to Cartwright and Zander (1974) these groups include command groups which consist of managers and their direct subordinates; and committees and task forces which are created to carry out specific organisational assignments or activities. Example: In an educational institution there are three broad formal groups of teachers, students and administration. ii)Informal Groups These groups are formed within the structure of the organisation but by the members themselves rather than by the organisation. Sometimes they do not have the, approval )f the management. Basically, informal groups are formed to satisfy social needs on the job. Sometimes they are formed to perform a task better, sometimes they are formed to hold production at a certain level. In a rigid system of organisation, these informal groups meet fairly regularly to cut short the rigid bureaucratic practices of the management. iii) Primary Groups :Cooley (1911) defined and analysed primary groups as those characterised by intimate, face-to-face association and cooperation. They are primary in several senses, but chiefly in that they are fundamental in forming the social nature and ideals of the individuals. Example of primary group is family and the peer group. Many people use the term small group interchangeably with primary group iv)Membership Groups : These are the ones to which the individual actually belongs. Examples: clubs, cooperative societies, workers unions, etc. v) Reference Groups These are the ones with which an individual identifies or to which he would like to belong. Examples: socially or professionally prestigious groups with which the individual would like to, belong. vi) The In-groups : The in-groups represent a clustering of individuals holding prevailing values in a society or at least having a dominant place in social functioning. Examples: Member of a team, family members. vii) The Out-groups : The out-groups are the conglomerates looked upon as subordinate or marginal in the future, Examples: street performers for an office worker, a hawker for a surgeon. Whenever there is a win-lose situation in a competitive task, members of win or lose group show tremendous in-group feelings within themselves. Their group, in relation to the other group, is also called an out-group. CHARACTERISTICS OF EFFECTIVE WORK GROUPS in managing the organisation, you have to understand how groups can be made into effective work groups. The factors that influence the work group effectiveness are norms, cohesion and leadership. Let us see how each one of them contributes to making the group effective to achieve the objectives of the organisation.i) Group norms When the group functions for a period of time, to attain certain objectives, it develops norms or standards of behaviour. A norm is a rule. This tells the individual how to behave in a particular group. An individual may be a member of a welfare group, a chess club, his family and his work group. You may like to watch his behaviour in various groups. You will see the different kinds of behaviour of the same individual in different groups. You may also notice that sometimes the norm is formal and is accepted by the group that way. For example all members of a particular work group wear safety glasses while operating on a particular machine. All of them would do so by accepting this norm. On the other hand, a norm can be informal arising out of interactions and feelings of the people. All the members of a task group decide to keep their output high by regulating their pace of work. For example, a number of typists decide to attain a target of fifty pages of neat Compiled by Krishna's Page(http://www.krishnababug.com/)
-1-
typing everyday. So they do it. The last characteristic of norms is that they allow possible deviations. An individual who deviates too far gets punished. When the union is on strike, its member attending to work is punished by being boycotted by the group. Ask yourself the following questions in the position of a manager.1.What have you understood about norms when you are a formal leader of a group and when you are a member of other group? 2.Have you understood what the norms of various groups are? 3.Do you know which are the central norms? 4.Do people conform to norms completely? 5.Do people wait for their leader to speak first in a meeting? 6.Do people come in time for meetings? 7. Is disagreement allowed? 8.Do people have a common style of clothing? ii) Group cohesiveness This means the degree to which group members are motivated to remain within the group and consequently behave in similar ways. A cohesive group also helps the members in their satsifaction of needs and attainment of goals. Cohesiveness develops out of the activities, interactions and sentiments of the people. The cohesive group acts as one man to attain its goal. iii) Group leadership As you have studied in unit 13, leadership is the ability to influence the behaviour of others. Any effective work group wanting to accomplish its task gaining some sort of social satisfaction and having some sense of contribution and growth should like to look up to a leader to help reach these goals. Informal leaders often emerge from the activities, interactions, sentiments of the ongoing group. They may help the group to accomplish its task or fulfil its social goals. You will always notice that formal task instruction comes from the supervisor, but informal help comes from the informal leader. Managing Group Productivity In your role as a manager you will do well to remember some useful ways to make your work group effective. As O'Donnel (1961) suggests you must know the following to manage your group of people towards attaining the goal.i) Content While having a meeting with your group members try to understand the subject matter of the task to be performed by the committee. This will help you to see the problem clearly and solve it to:1.decide about the size of the commitee (having about five to fifteen members) and include experts in the committee to solve your problem 2.distribute the agenda before the meeting is held to all the members 3.specify the timings of the meeting 4.encourage persons to present their ideas and do not encourage them to pick up the first feasible solution to a problem. Allow them to think of various alternative solutions 5.periodically summarise the discussion and restate the current position of the committee as to whether the committee has to finally decide on a solution or only recommend a solution to a higher authority/advise the higher authority. ii) Process This involves how the content is handled or discussed by the members. Benne and Sheats (1948) describe three effective ways to approach the group processes. One of the ways the content is handled is by group task activities. You may initiate, orient the group to its goals, coordinate, give and seek information about the problem. Q2 :MANGERIAL VALUES AND ETHOS :Ethos refers to habitual character and values of individuals, groups, races, etc. Managerial ethos is concerned with the character and values of managers as a professional group. Contemporary managers hold some specific values which affect work and some of these are: autonomy, equity, security and opportunity. Equity refers to justice in rewarding performance. Here again, modern managers strongly feel that a person must get a reward proportionate to his input. Another highly rewarded value is security, both economic and emotional. Keeping a person on his toes by making him feel insecure is slowly but steadily getting discredited as a management philosophy. Even the societies which have practised "hire and fire" policy are unmistakably shifting towards providing security of job. Providing enough career advancement opportunities to employees is yet another contemporary managerial value. For several reasons it may not be possible for many organisations to create enough vacancies for everybody to advance in their career. However, modern managers encourage themselves and others to continue growing through various modes of education, although, it does not necessarily lead to career advancement. Besides these Compiled by Krishna's Page(http://www.krishnababug.com/)
-2-
four values which affect a manager's work, the manager may have a strong "Work Value". Work Value refers to the worth a person ascribes to the opportunity of work. If you have a "strong" work value you are going to identify the worth or value of work to you in more ways than one. You may view work as an opportunity to: (a) accept challenges, (b) serve others, (c) earn money, (d) enjoy prestige and status, (e) be creative, or (f) be independent, etc. Managerial Ethos and its characteristics : Apart from these values, the managerial ethos of high order requires certain other characteristics as well. Let us describe these very briefly to you. Action goal orientation: Persons with high sense of adequacy have clear goals about their future and are directed by these goals. They usually do not think their goals in status terms (i.e., what they would like to be) but in activity terms (i.e., what they would like to do). For example, when a junior manager thinks that he would like to be the "Chief of Marketing" he is statusgoal oriented; but when he thinks that he would like to be influenced the marketing policies of the company, he is action-goal oriented. Pro-action: Proactive people do things on their own without having to be told by any one. Such initiative taking behavior leads to a high level of activity and experimentation. As contrasted to these people are reactive persons or conformists who spend most of their lives in doing things that others expect them to do. Reactive people are other-directed, whereas proactive ones are inner-directed. A superior managerial ethos requires more of pro-action than reaction. Internal resources: Managers with high sense of adequacy are aware of their internal 'strength and are guided by these strengths. They are aware of their weaknesses but this awareness does not deter them from acting positively or to look for opportunities for continuous self-improvement. They are open to feedback and ready to learn from experience. Problem-solving attitude: A superior ethos requires that managers view themselves as problem solvers, rather than problem-avoiders. These managers have a positive orientation to problem situations and do not want to run away from problems. They tend to approach problem situations with optimism because they have internal locus of control, i.e., a strong belief that they can change the environment through their own efforts. Q3 : THE PREREQUISITES AND CHARACTERISTICS OF EFFECTIVE CONTROL SYSTEMS The major prerequisites of control are two: a plan and a structure.a) Plan: controls must be based on plan. The more clear and complete the plans are the more effective controls can be; plans become the standards by which the actions are measured. b) Structure: There is need for a structure to know where the responsibility rests for deviations and corrective action, if any needed. As in the case of plans, the more clear and complete the organisation structure is, the more effective control can be. Controls, to he effective, should share the following basic characteristics: Appropriate: Controls should correspond to an organisation's plans. Controls designed for a general manager are inappropriate for a supervisor. Similarly, control systems suitable for a line department may be inappropriate for a staff department. Strategic: Control should serve a stretegic purpose and provide spotlight on positive and negative exceptions at critical points. Acceptable: Controls will not work unless people want them to. They should be acceptable to those to whom they apply. Reliable and objective: Controls should be accurate and unbiased. If they are unreliable and subjective, people will resent them. Cost-effective: The benefit from control should be greater than the costs. Control devices should yield tangible benefits. METHODS OF CONTROL : Arthur Bedeian discusses nine methods of control and classifies them into three categories based on their frequency, of use: Constantly used controls: Selfcontrol, group control and policies, procedures and rules. Periodically used controls: Management Information Systems, External Audits and Budgets. Occasionally used controls: Special reports, personal observation and project control. The nine methods of control mentioned above (see Fig. III) are briefly discussed hereunder. Constant Controls Self-control: Managers need to exercise more selfcontrol to minimise the need for other control methods and making control in the organisation acceptable and effective. Self-control means giving a fair day's work for a fair day's pay, reporting to work on time, discharging duties and responsibility properly and respecting the rights of others in the Compiled by Krishna's Page(http://www.krishnababug.com/)
-3-
organisation. Self-control is more in tune with Theory Y discussed later in the unit on Leadership Styles and Influence Process in Block 5. Respect for self-control in an organisation can be a motivating factor. A sense of appreciation for self-control can be promoted among employees through training in behaviour modification. Group Control: Work groups are a source of control. Group-defined norms exert greater influence in organisations than the norms that managements may choose to set unilaterally and thrust on groups. Group norms and group control can aid or hinder formal authority. Organisations would do well to develop and use group control processes to reinforce formal authority. While in some organisations group control processes helped increase output and improve quality,, in others they resulted in restricting output. For group norms to contribute to organisational goals there should be a climate of trust and openness, a culture of cooperation than confrontation. Quality circle, quality of worklife programmes and work redesign experiments being taken up in some organisations are examples that point to organisational thrust toward reinforcing group control processes for achieving organisational goals through integration of members' interests with those of the organisation. Policies/Procedures/Rules: These are essentially bureaucratic control mechanisms referred to in the discussion on control strategies. They reflect past managerial experience and include a variety of aspects concerning how to make certain decisions, deal with resources, etc.
Periodic Controls : Management Information Systems: A Management Information System is a mechanism designed to collect, combine, compare, analyse and disseminate data in the form of information. External Audits: The annual financial audit by an outside accounting firm is one form of external audit, mainly of the finances of an organisation. In the case of public sector units, such an audit is performed by Comptroller and Auditor General also. Budgets: Budgets are plans that deal with the future allocation and utilisation of various resources to different enterprise activities over a given period of time. Occasional Controls : Special Reports: These have a special role. Special reports can be commissioned by an organisation when its normal control systems point to the need for detailed investigation or study of a particular operational aspect. When major policy decisions of strategic importance are taken, special reports may be commissioned. These include situations where the organisations find the need for overcoming the existing difficulties, modernisation, expansion, diversification, merger, acquisition etc. Personal Observation: Managers can know what is happening Compiled by Krishna's Page(http://www.krishnababug.com/)
-4-
in an organisation by relying on information provided by others as also by finding out for them. First hand knowledge has to be critical to be effective. Project Controls: Various methods have been developed for controlling specific enterprise projects. The best example is the network analysis using the PERT tool. PERT is an acronym for Programme Evaluation and Review Technique. Q4 :Book 1 – Unit 4. MANAGEMENT SKILLS Planning skills: * being able to think ahead;* ability to forecast future environmental trends affecting the organization; * ability to state organizational objectives;* ability to choose strategies that will help in attaining these objectives with respect to future trends; * ability to arrive at performance standards or yardsticks for monitoring the implementation of these strategies.Use computer to plan. Organizing skills: * Ability to analyses and describe various organizational jobs. * Ability to select, train and induct people in jobs. * ability to draw working links i.e define authority and span of control amongst people. * ability to change these working links when ever there are major changes in the environment and technology or strategy in the organization. Leading skills:(PIC)Leading people requires that the leader must understand the values, personality, perception and attitudes of these people. As an individual you act differently from another individual because of your values, personality, perception and attitudes. This is a very important factor to be understood in relation to the other person who may be your superior or subordinate. Let us carry out the following activity in order to understand each of these factors. Controlling skills:The skill of controlling consists of actions and decisions which managers undertake to ensure that the actual results are consistent with desired results. Decision making skills:Decision-making skills are present in the planning process. They pervade all other areas such as organizing, leading and controlling. Whether it is a routine or nonroutine decision you have to (1) identify and define the problem (2) develop alternative decision (3) select the decision which will solve the problem and (4) implement that decision.
Book 1 – Unit 4. MANAGEMENT SKILLS AT Various Levels(PIC) These skills refer to the personal ability put to use by the manager in specific position that he or she Compiled by Krishna's Page(http://www.krishnababug.com/)
-5-
holds in the organizational hierarchy. Katz (1974) talks of three types of skills that are recognized by all managers. These are the technical, the human and the conceptual skills. The use of these skills differs for various levels of managers. Let us understand the skills first and then see how much each skill is used at various levels of managerial hierarchy and what importance each has in the career growth of a manager. 1.Technical skills:It is the ability to work with resources in a particular area of expertise. A surgeon. Technical skill implies an understanding of, and proficiency in, a specific kind of activity particularly the one involving methods, processes, procedures or techniques 2.Human Skills:Human skill is the manager's ability to work effectively as a group member and to build cooperative effort within the team he leads. Every managerial level requires managers to interact with other people, whereas technical skill is primarily concerned with working with things (processes or physical objects). The human skill can be developed without any formalized training for some. Many others to be individually aided by their immediate superiors who themselves should possess the human skill in order to be able to impart that. An important part of the procedure is the self-examination of the individual's own concepts and values which may enable him to develop more useful attitudes about himself and about others. With this change in attitude, there may also develop some active skill in dealing with human problems. 3.Conceptual Skills:This skill means the ability to see the organization as a whole and it includes recognizing how the various functions of the organization depend on one another. It also makes the individual aware how changes in any one part of the organization affect all the others. It extends to visualizing the relationship of the individual business to the industry, the community and the political, social and economic forces of the nation as a whole. Thus the manager gains insight into improving the overall welfare of the total organization. Like human skill, conceptual skill must be a part of the executive's make-up of the personality. Conceptual skill compared to technical and human skills is more important at the top level of management. At the first level, one has relatively few factors to consider. Technical skill is responsible for many of the great advances of modem industry. It is indispensable to efficient operation. It has the greatest importance at the lower level of administration.
Compiled by Krishna's Page(http://www.krishnababug.com/)
-6-
Q5 : Book 2 – Unit 5 - TECHNIQUES USED IN DIFFERENT STEPS OF DECISION MAKING In the models of decision making, you must have observed that any systematic approach to decision making starts with a proper definition of the problem. You will often experience that a problem well defined is a problem half-solved because the proper definition helped you to search at relevant place for promising alternatives. You would also agree that a "fair" approach to decision-making demands that parameters (for judging alternatives which are sometimes referred to as "criteria", "level of aspiration", "decision rules", etc.) should be explicitly developed before the alternatives are generated and not after. Identification of Alternatives :Generation' of a reasonable number of good alternatives is usually no problem. Occasionally, however, developing a variety of good alternatives can be a complex matter requiring creativity, thought, and study. Three means for generating alternatives are particularly wellknown. These are brainstorming, syntactics, and nominal grouping. Brainstorming: Developed by Alex F. Osborn, brainstorming is the oldest and best known technique for stimulating creative thinking. A group process, where the members are presented with a problem and are asked to develop as many solutions as possible in a free environment. Brainstorming is governed by four important rules: 1.Freewheeling' is welcome. The wilder the idea the better. It is easier to `tame down' than to `think up' ideas. 2.Quantity is wanted. The greater the number of ideas, the greater the likelihood of an outstanding solution. 3.Combination and improvement are sought. In addition to contributing ideas of their own, group members suggest how ideas of others can be improved, or how two or more ideas can be combined into still another idea. Brainstorming, however, is not without limitations. It is usually most effective when a problem is simple and specific. In addition, brainstorming sessions are time-consuming and, therefore, can be costly. Finally, brainstorming often produces superficial solutions. This latter limitation, of course, can be overcome by selecting group members who are familiar with at least one aspect of the problem being considered. Synectics: Developed by William J.J. Gordon, synectics is a more recent and formalised creativity technique for the generation of alternative solutions. A method of generating alternatives by combining diverse and apparently irrelevant ideas. The term synectics is derived from a Greek word meaning "the fitting together of diverse elements." The basic intent of synectics is to stimulate novel and even bizarre alternatives through the joining together of distinct and apparently irrelevant ideas. Nominal Grouping: Developed by Andre Dellbecq and Andrew-Van de Ven, nominal grouping differs from both brainstorming and synectics in two important ways. Nominal grouping does not rely on free association of ideas, and it purposely attempts to reduce verbal interaction. From this latter characteristic a nominal group derives its name; it is a group "in name only". Stage 1: Seven to ten individuals 'with different backgrounds and training are brought together and familiarised with a selected problem such as, "What alternatives are available for achieving a set of of ,objectives?"Stage 2: Each group member is asked to prepare a list of ideas in response to the identified problem, working silently and alone. Stage 3: After a period of ten to fifteen minutes, group members share their ideas, one at a time, in a round-robin manner. A group facilitator records the ideas on a blackboard or flip chart for all to see. The round-robin process continues until all ideas are presented and recorded. Stage 4: A period of structured interaction follows in which group members openly discuss and evaluate each recorded idea. At this point ideas may be reworded, combined, deleted, or added.Stage 5: Each group member votes by privately ranking the presented ideas in order of their perceived importance. Following a brief discussion of the vote, a final secret ballot is conducted. The group's preference is the arithmetical outcome of the individual votes. This concludes the meeting. Compiled by Krishna's Page(http://www.krishnababug.com/)
-7-
Creative Thinking: There are many ways of searching for information and alternatives in problem solving. Effective managers use all of their capacities-analytic and creative, conscious and subconscious-and seek both individual and group involvement in this stage of decision making process. Like the decision' making process itself, the creative process also has three stages .
Evaluation of Alternatives :Evaluation of various identified possible courses of action constitutes the second step of decision-making. Having identified a `reasonable' number of alternatives as a manager you should now be in a position to judge the different courses of action which have been isolated. Each alternative must be evaluated in terms of its strengths and weaknesses, benefits and costs, advantages and disadvantages in achieving organisational goals. Since there are usually both positive and negative aspects of every alternative, most evaluations involve a balancing or trade-off of anticipated consequences. Needless to say, such assessments should be as objective as possible. Selection of an Alternative :Once appropriate alternatives have been identified and evaluated, you must select the one alternative with the greatest perceived probability of meeting organizational objectives. Of course, it is entirely possible that the decision maker may be made to go back and identify other alternatives if none are judged to be acceptable. Implementation of Decision :Once a plan (course of action) has been selected, appropriate actions must be taken to assure that it is implemented. Implementation is crucial to success of an enterprise. Indeed, it is considered by some to be the key to effective planning. The best plans in the world are absolutely worthless if they cannot be implemented. The activities necessary to put plans into operation must be skillfully initiated. In this respect, no plan is better than the actions taken to make it a reality. With selection of a course of action, you must make detailed provisions for its execution. You must communicate the chosen course of action, gather support for it, and assign resources to see that it is carried out. Development of a sound means of implementation is every bit as important as the decision as to which course of action to pursue. All too often, even the best plans fail as a result of being improperly implemented. INDIVIDUAL VERSUS GROUP DECISION MAKING You are perhaps aware that in recent times most of the decisions in any large organisation are usually taken by a group of people (e.g., Board of Directors, Committees, Task-force, etc.) rather than by a single individual manager, however, brilliant, bright or powerful the manager may be. Perhaps from your own experience, you are also aware of some of the obvious advantages and disadvantages of group decision making like the one given below: (PIC)However, what we know about the impact of the groups in decision making process has been Compiled by Krishna's Page(http://www.krishnababug.com/)
-8-
summarised by Harrison (1975) in the following way: In establishing objectives, groups are typically superior to individuals in that they possess greater cumulative knowledge to bring to bear on problems. In identifying alternatives, individual efforts are important to ensure that different and perhaps unique solutions are identified from various functional areas that later can be considered by the group. In evaluating alternatives, group judgement is often superior to individual judgement because it brings into play a wider range of viewpoints. In choosing an alternative, involving group members often leads to greater acceptance of the final outcome. In implementing the choice, individual responsibility is generally superior to group responsibility, Regardless of whether decisions are made individually or collectively, individuals perform better in carrying out the decision than groups do.
Based on a series of studies on managerial decisions making behaviour, Vroom and Yetton (1973) found evidence in support of the following propositions: Managers tend to be more participative when the quality of the decision is important. Managers tend to be more participative when subordinate acceptance of the decision is critical for its effective implementation. Managers tend to be more participative when they trust their subordinates to focus on organisational rather than personal goals and when conflict among subordinates is minimal. Managers tend to be less participative when they have all the necessary information to make a high quality decision. Managers tend to be less participative when the immediate problem is well structured or where there is a common solution that has been applied in similar situations in the past. Managers tend to be less participative when time is limited and immediate action is required. Risky Shift Phenomenon:Contrary to the popular belief that groups are usually more conservative than individuals there is abundant evidence to support the proposition that groups make riskier decisions than individuals do. There are four possible reasons. First, risk takers are persuasive in getting more cautious companions to shift their position. Second, as members of a group familiarise themselves with the issues and arguments they seem to feel more confident about taking, risks. Third, the responsibility for decision making can be diffused across members of the group. Fourth, there is the suggestion that in our culture people do not like to appear cautious in a public context. Compiled by Krishna's Page(http://www.krishnababug.com/)
-9-
Groupthink:Closely related to the risky-shift, but more serious, is the phenomenon known as `groupthink'. This phenomenon, first discussed by Janis (1971), refers to a mode of thinking in a group in which the seeking of concurrence among members becomes so dominant that it over-rides any realistic appraisal of alternative course of action. The concept emerged from Janis' studies of high level policy decisions by government and business leaders. By analysing the decision process leading up to each action, Janis found numerous indications pointing to the development of group norms that improved morale at the expense of critical thinking. One of the most common norms was the tendency to remain loyal to the group by continuing to adhere to policies and decisions to which the group was already committed, even when the decisions proved to be in error. OVERCOMING BARRIERS TO EFFECTIVE DECISION MAKING Elbing (1978) has identified several roadblocks that can impede managerial effectiveness in arriving at the most suitable decision:1.The tendency to evaluate before one investigates. Early evaluation precludes inquiry into a fuller understanding of the situation.2.The tendency to equate new and old experiences. This often causes managers to look for what is similar rather than what is unique in a new problem.3.The tendency to use available solutions, rather than consider new or innovative ones.4.The tendency to deal with problems at face value, rather than ask questions that might illuminate reasons behind the more obvious aspects of the problem.5.The tendency to direct decisions toward a single goal. Most problems involve multiple goals that must be handled simultaneously.6.The tendency to confuse symptoms and problems.7.The tendency to overlook unsolvable problems and instead concentrate on simpler concerns.8.The tendency to respond automatically or to act before thinking. In case you are a member or leader of any decision making group, you would like to overcome the emergence of a groupthink mentality in groups and organisations. Taking your cue from Janis you can now formulate several strategies to overcome the barriers:1.Group leaders can encourage each member to be a critical evaluator of various proposals. 2.When groups are given a problem to solve, leaders can refrain from stating their own position and instead encourage open enquiry and impartial probing of a wide range of alternatives. 3.The organization can give the same problem to two different independent groups and compare the resulting solutions. 4.Before the group reaches a final decision, members can be required to take a respite at intervals and seek advice from other wings of the organization before returning to make a decision. 5.Outside experts can be invited to group meetings and encouraged to challenge the views of group members. 6.At every group meeting, one member could be appointed as a devil's advocate to challenge the testimony of those advocating the majority position: 7.When considering the feasibility and effectiveness of various alternatives, divide the group into two sections for independent discussions and compare results. 8.After deciding on a preliminary consensus on the first choice for a course of action, schedule a second meeting during which members of the group express their residual doubts and rethink the entire issue prior to finalizing the decision and initiating action. -In other words, if groups are aware of the problems of groupthink, several specific and relatively simple steps can be taken to minimise the likelihood of falling victim to this problem. As you already know, recognising the problem represents half the battle in the effort to make more effective decisions in organizational settings. Q6 : MANAGEMENT OF ORGANIZATIONAL CONFLLICTS: Conflict is a theme that has occupied the thinking of man more than any other with the exception of God and love. Conflict has always been widespread in society but it is only recently that it has generated a lot of interest and has been the focus of research and stud We are living in the age of conflict. Everyday the choices available to us regarding any decision are increasing in number. You may have wanted to become a manager, an entrepreneur or a computer scientist. On the other hand, your father might have wanted you to become a doctor, a lawyer or a chartered accountant. Thus you Compiled by Krishna's Page(http://www.krishnababug.com/)
-10-
faced a conflict not only at an intra personal level, in terms of the various choices confronting you, but also at an interpersonal level-your choice vs. your father's choice of a career for you. Types of Conflicts : Conflict within an Individual : You can locate conflict at various levels. There could be conflict within oneself-the intrapersonal conflict. Basically, there are three types of such conflicts. You may have an excellent job offer in a city you are not willing to go to. Conflict between Individuals : Conflict can also take an interpersonal form. Conflict between individuals takes place owing to several factors, but most common are personal dislikes or personality differences. When there are only differences of opinion between individuals about task-related matters, it can be construed as technical conflict rather than interpersonal conflict. Conflict between an Individual and a Group : These types of intragroup conflicts arise frequently due to an individual's inability to conform to the group norms. For example, most groups have an idea of a "fair day's work" and may pressurise an individual if he exceeds or falls short of the group's productivity norms. If the individual resents any such pressure or punishment, he -could come into conflict with other group members. Conflict between Groups within an Organisation Intergroup conflicts are one of the most important types of conflict to understand, as typically, an organisation is structured in the form of several interdependent task-groups. Some of the usually chronic conflicts in most of the organisations are found at this level, e.g., Union vs. Management, one Union vs. another Union; one functional area like production vs. another functional area like maintenance; direct recruits vs. promotees, etc. Conflict between Organisations Conflict between organisations is considered desirable if limited to the economic context only. The laissez-faire economy is based on this concept. It is assumed that conflict between organisations leads to innovative and new products, technological advancement, and better services at lower prices. IMPACT OF CONFLICTS : conflict can have both positive and negative impact on individuals, groups and organisations. Edgar Schein (1980) who has compiled a list of changes on the basis of research findings. As a result of intergroup conflict some changes that may occur within the groups
Compiled by Krishna's Page(http://www.krishnababug.com/)
-11-
involved are: 1 Group cohesiveness increases. The group becomes more closely knit; its members show greater loyalty. 2 The group becomes task-oriented. Group climate changes from informal to task-oriented in order to deal with the external threat. 3 Leadership becomes more directive. As the group becomes more task-oriented, the leader becomes more authoritarian. 4 Organisational structure becomes more rigid. Authority and responsibility relationships among and between members become more clearly defined. 5 Group unity is stressed. The group demands increasing loyalty and conformity from its members. Prolonged group conflicts cause the following changes in relationship between groups: 1 Groups become antagonistic toward each other. Each group sees the other as an enemy who interferes with its goal-oriented behaviour. 2 Perceptions are distorted. Each group develops positive perceptions about its own group and negative perceptions toward the other. 3 Communication ceases to exist. When in conflict members of one group avoid interaction with members of the other. If they are forced to interact, they tend to show hostility and aggression towards each other. 4 Groups apply a double standard. Each group clearly sees all the vicious acts of the other party while remaining blind to the same acts performed by their own group. From the above two lists of changes within and between groups in conflict, you can spot a number of negative effects. What about some potential benefits of intergroup conflicts? Here is such a list: 1 Conflict clarifies the real issue. When people of groups express their concerns and differences, it helps sharpen the real issue involved in a problem. Without conflict, many organisational problems go unnoticed and remain unresolved. 2 Conflict increases innovation. Conflict generates a greater diversity of ideas and viewpoints. Such a diversity can stimulate innovation in organisational practices. 3 Intergroup conflict solidifies the group. When members of a group are faced with an external enemy, they tend to work together more closely to deal with it. A manager may use this new cohesion to reduce internal conflicts. 4 Conflict serves as a catharsis. Conflict can provide an outlet through which organisational members can ventilate their feelings without damaging organisational functioning. 5 Conflict resolution solidifies intergroup relationships. Once group conflict is successfully resolved, it can solidify the relationships between groups and it may even make the groups feel closer to each other. Looking into some of the effects of conflicts you can take a balanced view to conclude that conflict is inherently neither good nor bad but simply has the potential to improve or impair an organisation's performance through its consequences. Conflicts that result in increased organisation performance and help an organisation to attain its goals may be termed as Functional. On the other hand, conflict that hinders an organisation's growth and prevents it from achieving its goals can be termed as Dysfunctional. Thus conflict in certain forms can be functional or dysfunctional depending upon its nature, intensity, duration and the manner in which it is handled. MODES OF CONFLICT MANAGEMENT : We can now move on to examine the modes through which conflict can be handled so as to result in optimal unit performance. You have already seen that when conflict level is too low, the unit performance is also likely to be low and there is a scope for a perceptive manager to stimulate conflict in order to enhance the performance of the group. Stimulating Productive Conflict Most of us since childhood have been taught to avoid conflict and even disagreement, How many times have you heard the statements "Don't Argue", "Stop fighting" or "It's better to turn the other cheek"? However, this tendency to avoid conflict is not always productive and there are times when there is a need to stimulate conflict. The presence of one or more of these signs is usually an indication of the need for conflict stimulation. Once the need has been identified you may adopt one or more of the following techniques:1 Manipulate Communication Channels a) Deviate messages from traditional channels b) Repress information c) Transmit too much information d) Transmit ambiguous or threatening information 2 Alter the Organisation's Structure (redefine jobs, alter tasks, reform units or activities) Compiled by Krishna's Page(http://www.krishnababug.com/)
-12-
a) Increase a unit's size b) Increase specialisation or standardisation c) Add, delete or transfer organisational members d) Increase interdependence between units 3 Alter Personal Behaviour Factors a) Change personality characteristics of leader b) Create role conflict c) Develop role incongruence These are only a few of the suggestions possible. Depending upon your values and the organisation's value-system, some of the suggestions may even sound unethical as you may feel that a desirable end-state does not always justify the questionable means (like transmitting threatening information). Resolving Interparty Conflict: How and When ? You have seen that stimulating conflict is a required mode of conflict management when groups are characterised by apathy, complacency, non-responsiveness to needed change, lack of enthusiasm for generating alternatives, etc. Though these symptoms are very much present in a number of work-units in Indian organisations (and hence calls for appropriate conflict stimulation interventions), the more commonplace are heightened manifest conflicts. So, for most practical purposes, you should not only possess the knowledge of different strategies of conflict-resolution hut should also know when to use which strategy. The primary dimension along which intergroup conflict-resolution strategies vary is how openly you as a manager should address the conflict. CONFLICT-AVOIDANCE STRATEGIES : Ignoring the Conflict This strategy is represented by the absence of action. You, as a manager, have often avoided dealing with dysfunctional aspects of conflict. Unfortunately, when you avoid searching for the causes of the conflict, the situation usually continues or becomes worse over time. Although ignoring the conflict generally is ineffective for resolving important policy issues, there are some circumstances in which it is at least a reasonable way of dealing with problems. Imposing a Solution This strategy consists of forcing the conflicting parties to accept a solution devised by a higher-level manager. Imposing a solution does not allow much conflict to surface, nor does it leave room for the participants to air their grievances, so it also generally is an ineffective conflict-resolution strategy. Any peace that it does achieve is likely to be short-lived. CONFLICT-DEFUSION STRATEGIES : Smoothing One way you can deal with conflict is to try to "smooth it over" by playing down its extent or importance. You may try to persuade the groups that they are not so far apart in their viewpoints as they think they are, point out the similarities in their positions, try to "pat" group members whose feelings have been hurt, or play down the importance of the issue. By smoothing the conflict, you can hope to decrease its intensity and avoid escalation or open hostility. Like forcing a solution, smoothing generally is ineffective because it does not address the key points of conflict. Appealing to Superordinate Goals You can defuse conflicts by focusing attention on the higher goals that the groups share or the longrange aims that they have in common. This tends to make the current problem seem insignificant beside the more important mutual goals. Finding superordinate goals that are important to both groups is not easy. Conflict-containment Strategies : Using Representatives : One of the strategies you can use to contain conflict is the use of representatives. In order to decide an issue, you can meet with representatives of the opposing groups rather than deal with the groups in their entirety. Structuring the Interaction Some managers assume that one way to decrease conflict is to increase the amount of contact between the groups (if the groups interacted more, they would like each other better and fight less). In reality, increased interaction can merely add fuel to the fire; the two groups spend their time looking for additional reasons to reinforce their negative stereotypes of each other:There are many ways to structure the interaction between groups to deal with conflict; some of the most effective strategies include: (a) decreasing the amount of direct interaction between the groups in the early stages of conflict resolution; (b) decreasing the amount of time between problem-solving meetings; (c) decreasing the formality of the presentation of issues; (d) limiting the recitation of historic events and precedents and focusing instead on current issues and goals and (e) using third-party mediators. All these strategies allow some conflict to surface but prevent it from getting out of hand and reduce hardening of the groups' positions. Bargaining :Bargaining is the process of exchanging concessions Compiled by Krishna's Page(http://www.krishnababug.com/)
-13-
until a compromise solution is reached. Bargaining can lead to the resolution of a conflict, but usually without much openness on the part of the groups involved and without much real problem solving. Typically, in bargaining each side begins by demanding more than it really expects to get. Q7 : Book 2 – Unit 8 – MBO Processes : The term MBO was coined by Peter Drucker more than 25 years ago. Drucker used the term. in a very broad sense to connote not just a specific tool, but rather an approach or philosophy of management. There are three steps involved in the MBO process. These are setting objectives in each key result area, action planning, and performance review. Setting Objectives : Key result areas are usually more durable than objectives. While KRAs delineate the' broad areas within which the organisation must focus its. attention, the objectives represent the specific results expected to be' achieved within these KRAs. Thus the first step is to identify the KRAs and pin responsibility for results with specific managerial positions. Making people responsible for KRAs is a very critical step for translating MBO theory into practice. KRAs and the persons responsible for them must be identified at the level of the entire organisation as well as each functional area. Having identified KRAs, the next step is to set objectives within them. At the organisational level, these will be the corporate objectives. Action Planning: Planning enables the objectives to be turned into reality. If objectives describe the `what', plans describe the `how' or the way in which the objectives are to be achieved. Managers are paid to achieve certain objectives. The objectives can be achieved only if the manager converts them into specific action plans spelling out the various steps or activities to be performed and the specific time within which these must be performed. 1.There are four broad steps involved in every action plan: 2 Choosing strategies which are appropriate to the objectives 3. Assigning responsibility for achieving the objectives 4. Allocating resources for achieving the objectives 5. Scheduling specific activities to achieve maximum utilisation of resources. There are many techniques which are extremely useful in planning. Some of the more common ones are Activity Networks, Decision Trees, Milestone Charts, Programme Evaluation and Review Technique (PERT), and Critical Path Method (CPM). Depending on the specifics of your plan you can use the appropriate technique to make them more useful. Performance Review : Regular performance review is one of the main features of MHO. In the absence of a review system the MBO system cannot function. In the MBO process, the focus of the performance review is on: 1. performance 2. improvement 3. future corrective 4.action 5. frequency of reviews 6. self-appraisal.(PIC)
ENSURING SUCCESSFUL IMPLEMENTATION of MBO:MBO is not a managerial technique which can simply be introduced at a moment's notice. MBO involves people who have their own fixed ideas, attitudes, values and perception which can make the MBO implementation a very complex affair. The prerequisites of a successful MBO are:• Evaluation:[The first step is to evaluate what you expect from MBO. The most commonly made mistake is that MBO is visualised either very narrowly as a just another appraisal system or as merely another way of tackling the problem of writing job descriptions or it is visualised as a solution to all problems. This leads to unrealistic expectation from MBO. To avoid this, it is best, first of all, to evaluate the existing organisational performance, culture, management style, systems of planning, controlling and monitoring and then decide upon the specific Compiled by Krishna's Page(http://www.krishnababug.com/)
-14-
needs which can be fulfilled by MBO. It must be remembered that MBO is a powerful tool which can be used for improving the entire organisational performance, provided there is clarity about the expected results. ]• Preparation:[The next step is to prepare the people for accepting MBO. Human nature always resists change. The best way to overcome this resistance is to disseminate maximum information about M130 and educate the concerned key people about its expected benefits. ]• Top management support[For MBO to be successfully implemented it is important that it has the full backing and support of the top management. In the process of implementation, there may be some redefining of objectives which in turn may lead to jobs being redefined, restructured or even totally scrapped in some cases.]• Time horizon and[MBO means change which implies upheaval and disturbances. Just as some people can accept and adapt to change quicker than others; similarly one organisation's adaptability to change is different from that of another. Depending on its personality and attitude towards change (whether it is resistant or highly flexible) each organisation has to decide upon the rate of change which it can withstand ]• Proper entry point The benefits of MBO : accruing from MBO can be discussed in terms of the specific benefits to the subordinate, the superior and the organisation:i) Benefits to subordinates include greater role clarity, measurement of performance and increased job satisfaction. W hen specific objectives have been agreed upon, the subordinate knows exactly what he has to achieve and can plan his various activities towards this end. Role and goal clarity ensure that there is no wastage of scarce organisational resources, on the one hand and single minded dedication to achievement of objectives on the other." Job satisfaction emanates from the feelings of having done a job well to the best of your capability as well as public recognition and approval for it. The former is possible only when there are specific objectives while the latter can occur only if there is a system of review and reward. A worker or manager who derives satisfaction from his job will work harder in order to improve his performance while a dissatisfied, discontented manager will make a negative contribution. Thus MBO can serve to bring about a change and put people on the self-propelling cycle of role clarity, increased job satisfaction and increased productivity. ii)Benefits to Superiors: The benefits accruing to the subordinate will, of course, also accrue to the superiors. But besides these, the other specific benefits for superiors are that MBO motivates subordinates, strengthens superior-subordinate relationship, and provides an objective appraisal method. MBO is based on the concept of participation and this leads to greater motivation. Setting objectives implies that both the superior and the subordinate have to sit across the table and openly discuss their respective roles, work, obstacles and competencies. Such candid discussion always leads to increased mutual trust and confidence in each other and provides an enduring bond to the relationship. The only thing that matters is results. People are retained by organisations to produce results and not because they are sociable, soft spoken, introverted or possess any other such personality characteristic which has no bearing on their competence or capability. iii) Benefits to the organisation: MBO focuses on managerial effectiveness as a central value in the entire organisation. And this emphasis permeates down to the lowest level, influencing each manager and worker. This shows up in all the decisions which each manager makes and the overall performance of the organization is improved. Secondly, MBO with its focus on objectives improves concentration and coordination of managerial effort. There is maximum utilisation of resources and conflicting pulls in opposite directions are avoided. Thirdly, the periodic review in MBO helps identify advancement potential of workers and managers. It also helps in identifying workers-who are under-utilised or not making the full contribution. Lastly, MBO creates many centres of accountability as against one centralized accountability point. It is not only the managing director or proprietor who is accountable for producing the desired results but each manager is responsible for achieving the agreed-upon objectives. Thus MBO leads to greater decentralization in terms of setting and achieving objectives. Compiled by Krishna's Page(http://www.krishnababug.com/)
-15-
Q 8 : Mangerial processes Book 1 – Unit 3.MANAGEMENT PROCESSES Planning :1.Making choices 2.Committing resources 3. A time horizon .Planning is the most basic and pervasive process involved in managing. It means deciding in advance what actions to take and when and how to take them.Planning is needed, firstly for committing and allocating the organisation's limited resources towards achieving its objectives in the best possible manner and, secondly for anticipating the future opportunities and problems. To ensure that a plan is effective and succeeds in achieving its objectives, it must have the following components: 1.Planning must start from the top. 2.Planning must be flexible. 3.In the short-run 4.Plans are good Organizing :Organizing refers to the formal grouping of people and activities to facilitate achievement of the firm's objectives. Issues for discussion here are the types of organization structure[Structure refers to the specific manner in which people are grouped. An organisation can group its people on the basis of the various functions (such as production, personnel, finance, marketing), geographical territories or around specific products or product lines (such as detergents, toiletries, basic chemicals, agro-products, as in case of Hindustan Lever Limited) ], degree of centralization[Centralisation refers to the point or level where all decision-making authority is concentrated. One-man enterprises; such as a small bread and butter stores, vegetable vendor, ], levels of management, span of control, delegation of authority, unity of command, line and staff relationship, and staffing. Staffing: Directing: Co-Ordinating: Motivating and Leading : Decision Making Controlling:Planning and controlling go hand in hand. There can be no control without a plan and plans cannot be successfully implemented in the absence of controls. Controls provide a means of checking the progress of the plans and correcting any deviations that may occur along the way. There are three basic steps involved in designing a control process. 1.Establishment of standards: 2.Measurement of performance: 3.Correcting deviation is a traditional and widely used control process. Apart from this a company may use historical statistical data, or break-even analysis to control its operations. By the use of mathematics, many sophisticated control techniques are also possible. These pertain to implementing control for inventory management, distribution logistics and project or programme management. Some of these such as Programme Evaluation and Review Technique (PERT), Critical Path Method (CPM) will be dealt with in detail in the subsequent units. Q 9: UNDERSTANDING THE DETERMINANTS OF INTERPERSONAL BEHAVIOUR Self-Concept: What am I? Mankind is unique because only a human being has the capacity for thinking about hi or her behaviour and appearance. Each person has an attitude toward himself or herself and this attitude comprises the self or self-concept. The self-concept has three aspects-beliefs, feelings and behaviours. The belief component represents the content of the self. This is illustrated by such thoughts as "I am intelligent, sociable, sincere, overweight" etc. The feeling component about one's self is reflected in feelings of self-worth or in general as `I'm O.K.' or `I'm not O.K.' Finally, the behavioural component is the tendency to act toward one's self in a self-deprecating c self-enhancing manner. you achieve a stable interpersonal environment by maintaining a consistent relationship between your self-concept and your beliefs about how others behave and feel toward you with regard to your self-concept. In order to maintain your interpersonal environment and to maximise congruence or harmony, you (like any other individual) actively use certain mechanisms to stabilise interactions:1.Misperception: When the actual expectations of others are not congruent with your selfconcept or behaviour, you may simply misperceive how others see you.2.Selective Interaction: You may choose to interact with those persons with whom you can most readily establish a congruent state. 3.Selective Evaluation of the Other Person: You maximise congruency by favourably evaluating those who behave congruently towards you and devaluate those who do not. 4.Selective Evaluation of Compiled by Krishna's Page(http://www.krishnababug.com/)
-16-
Self: You maximise congruency by altering the values placed on various aspects of your self-concept so that the aspects that are in agreement with the perception of your own behaviour and those of others arc most highly evaluated. 5.Response Evocation: You, intentionally or unintentionally, behave in a way that results in others' behaving toward you in a congruent fashion. A person in interaction controls the cues provided to others to ensure that he or she will be categorised in certain ways and not in any unexpected way. The mechanisms, mentioned above, are some of the means used by any person to protect one's self-concept and maintain an interpersonal environment. Interpersonal Needs: What do you want from me? People need people, but for what? Schutz (1966) maintains that there are three interpersonal needs-inclusion, control and affection-that cause one, to establish and maintain relations with others. These needs are defined as follows: Inclusion--the need for interaction and association. 1.Control --the need for control and power. 2.Affection--the need for love and affection. Individuals differ, however, in the strength of their interpersonal needs. For each interpersonal need, there are two behavioural aspects--expressed and wanted. Expressed behaviour is the behaviour that we initiate toward others., whereas wanted behaviour is the behaviour we want or prefer from others toward us. DEVELOPINGINTERPERSONAL RELATIONSHIP The development of successful working relationships takes time. No one can cultivate such a relationship with another person without going through a long arduous process that usually takes months or years to develop. The development of a working relationship occurs in the following sequences:1.The initial contact produces a set of impressions and attitudes in each towards the other. A favourable mutual impression is needed to develop a long-term relationship. 2.A positive impression opens the door for a long-term working relationship. When this occurs, the interacting parties develop a set of mutually agreeable expectations regarding their roles, performance and relationships. 3.The interacting parties make continuous attempts to meet each other's expectations. Failure to carry out this psychological contract will probably terminate the relationship. 4.Mutual trust and influence develop as a result of meeting the psychological contract, and these ensure the continuation of the relationship. four stages of developing interpersonal relationship: 1. Forming first impressions 2. Developing mutual expectations 3. Honouring psychological contracts 4. Developing trust and influence. Forming First Impressions First impressions, though often inaccurate, are lasting impressions. First impressions are lasting because they influence the way in which people see subsequent data about the perceived object or person. So, whether or not first impressions are correct, it is important for us to make favourable impressions on other people. Initial impressions do not guarantee long-term relationships, but they are essential for entering into enduring relationship with others. Many studies have shown that much of the groundwork for subsequent relationships with others is laid in the very first stage of socialisation 1.Poise: One should maintain composure by being diplomatic and personable. Nervousness disturbs one's poise. 2.Articulation: One should speak naturally and fluently, use proper language and add deep tones in the voice to create an impression of maturity. 3.Conservative Dress: Conservative dress in classic styles are appropriate for a business engagement such as job interview. Extremes in fashion should be avoided. 4.Positive Attitude: Without being a naive optimist, one should show a positive outlook towards life, for people generally prefer a prudent optimist to a pessimist. 5.Knowledgeability: Learning something about the organisation and its products, services and people before an interview demonstrates one's interest. 6.Thoughtfulness: One should be alert and responsive, yet weigh each question before responding. A hasty response can be seen as indicative of immaturity or lack of wisdom. 7.Self-confidence: In order to make other people have confidence in him or her, the person needs to appear self-confident. An erect posture, head held high and an assertive tone of voice can help show self-confidence with requisite humility. Developing Mutual Expectations : When people are mutually impressed, they are more likely to enter into a longterm relationship.' When this happens, they develop certain expectations about each other. In work Compiled by Krishna's Page(http://www.krishnababug.com/)
-17-
organisations, managers may expect new employees to be competent, productive, reliable and loyal and to conform to organisational norms. New employees, on the other hand, expect their superiors to be fair, supportive and considerate of their needs. Honouring Psychological Contracts : An effective interpersonal or work relationship cannot develop and be maintained unless the participants are willing to honour their psychological contracts. Each party expects the other to be faithful in the relationship, not to take arbitrary actions and to be honest with him or her. The character-based expectations include: 1.Integrity: Maintaining personal and moral honesty in the relationship. 2. Motive: Having good intentions and acting in good faith. 3.Consistency: Showing consistency in behaviour. 4. Openness: Levelling and being honest with another person. 5.Discretion: Maintaining confidences. -The competence-based expectations include: 1. Technical competence: Having the ability to perform the assigned task. 2. Interpersonal competence: Being able to maintain effective interpersonal relationships. The judgment-based expectations include: 1. Business sense: Making good business judgment. 2. Interpersonal judgment: Making an accurate perceptual judgment of other people. Developing Trust and Influence :The result of meeting the psychological contract is an increased level of trust and influence. When the parties to the contract are able to meet their mutual expectations, the relationship produces mutual trust and favourable sentiment. The more satisfactory the association becomes, the greater the influence the parties have on each other. Since the relationship is fulfilling, the parties will continually rely on it to satisfy their needs. This dependency permits them to exert influence on each other. Q 10 : THE PROBLEMS IN DELEGATION We shall examine here four key problems in delegation: • What to delegate?• How much to delegate? • How far down to delegate? • How to deal with employees resistance to accept delegation? What to Delegate? If a manager does not delegate, he will end up doing what his subordinates must be doing. If he delegates what he should be doing himself, his leadership position would be in jeopardy and there would be conflict among subordinates. The first step in effective delegation is for the manager to analyse his job and to determine, in principle, what he should or should not delegate.A large part of the work in every. management position consists of activities that are routine and repetitive. These lend themselves readily to delegation. Once delegated these form the main tasks that the subordinates perform. How much to Delegate? Usually the dilemma is how much authority to delegate than that of responsibility. A salesman appointed to sell the products of the company should have the authority to approach customers in the name of the company, offer them the products for sale at certain price and assure growth and delivery. There is a popular misconception that "authority should always be delegated equal to responsibility". But people with responsibility for coordination and control, usually withhold a part of the authority and delegate only such authority as is commensurate with responsibility. How far down to Delegate? To what levels in a hierarchy can responsibility and authority be delegated? People who do the work should have the responsibility. Those with responsibility should have commensurate authority. Taken together, it means that it is necessary to delegate authority to all those who do the work at the operating levels. How to deal with Employee Resistance? Employee may resist accepting delegated authority for a variety of reasons: 1.lack of proper job information 2 .lack of skills, training, supportive tools and equipment or self-confidence 3. uncertain about the authority vis-a-vis responsibility 4.lack of proper reward or sense of personal gain for the individual 5. inertia and avoidance . PREREQUISITES FOR EFFECTIVE DELEGATION Delegation is an art, not a science. It depends on the personality, skills and attitudes concerning two actors: delegator (one who delegates) and delegatee (one who was delegated). The following are some of the essential prerequisites for effective delegation. a) Climate of openness, trust and confidence among employees at all levels and a culture of team work Compiled by Krishna's Page(http://www.krishnababug.com/)
-18-
and cooperation.b) The two psychological hurdles in delegation, namely lack of faith in the competence of subordinates and fear that the subordinates may outshine them deter managers from delegating. The managers should not have any feeling of insecurity that by delegating they would be making themselves redundant. c) Goals should be established and made clear: Every person in an organisation should know what his contribution to the organisation is. In accomplishing his goals, he can formulate the objectives of delegation too so that delegation is done with a purpose and becomes effective. The machine operator may not be happy with running the machine. He would be happy to know how the outcome of his effort contributes to organisational purpose. d) People who carry out work should have clearly defined responsibility and authority: Job descriptions or position guides should clearly state the objectives, responsibilities, relationships and limits of authority of each position. Clear definition of responsibility and authority at each position eliminates the scope for confusion that duplication and overlap in entrustment of duties would cause. e) Motivation is important because the manager who wants to delegate should be able to motivate people to do what he wants done, willingly and enthusiastically. As Louis Allen puts it, "Motivation is the moving force in delegation". f) Make delegation complete: Delegation is supposed to reduce a manager's workload. But, if not properly done, it may increase the workload. There are often problems as to whether, at what stage and how often should the subordinate check back with his boss. The problem can be resolved if (i) the assignment is clear cut, (ii) subordinate is told how the assignment will be coordinated and motivated by the boss, (iii) the boss specifies to the subordinate at what stage, in what form and how often he should provide him with feedback on the progress and (iv) the boss provides counselling and guidance. Once an assignment is delegated the boss should intervene only to provide guidance but not withhold his approval for specific actions involved in completing the task. To delegate complete assignment or task requires certain sense of faith and self-control on the part of boss in not intervening but giving counsel and advice. Likewise, the subordinate should exercise discipline in making choice of a course of action in carrying out the task. Delegating complete tasks relieves managers from detail and provides opportunities to subordinates to learn to be independent and feel a sense of fulfilment in work.g) Train: Managers should help in preparing their subordinates to accept delegation. Such' need is all the more felt in case of subordinates who show a tendency to depend on the bosses than be independent. Managers should, therefore, carefully identify the weaknesses; develop potential and attitudes conducive to accepting and making a success of delegated authority. Training in delegation should include appraisal of current performance, counselling for improvement and coaching on the job. h) Establishment controls: Even after delegation the manager continues to be accountable. So there is need for him to control without limiting the effectiveness of delegation. The more complete is the delegation the more comprehensive should the system of control be. Q 11 : LEADERSHIP STYLES : The word style is the way in which the leader influences followers. Let us have a look at the various studies that help us to understand the leadership styles. Hawthorne Studies :Mayo and Roethlisberger did a series of studies from 1924 to 1932 in an electricity company, at Illinois, in USA. These studies are known as Hawthorne Studies. One phase of these studies aimed at finding out if changes in illumination, rest period and lunch breaks can affect the productivity of the workers. It was found to the surprise of the researchers that less light, shorter and fewer rest periods and shorter lunch breaks resulted in increased productivity. And once all these changes; were eliminated and the normal working conditions were resumed, it was also seen that the workers' productivity and the feeling of being together went up. Theory X and Y : McGregor (1960) categorised leadership styles into two broad categories having two different beliefs and assumptions about subordinates. He called these Theory X and Theory Y. The Theory X style of leaders believe that most people dislike work and will avoid it wherever possible. Such leaders feel they themselves are a small but important group, who want to lead Compiled by Krishna's Page(http://www.krishnababug.com/)
-19-
and take responsibility, but a large majority of people want to be directed and avoid responsibility. Therefore, this style of leadership exercises strong controls and direction and wherever necessary punish people if they do not do the work. If people do the work as desired, they may even get monetary or other rewards. Theory Y leaders assume that people will work hard. and assume responsibility if they can satisfy their personal needs and the objectives or goals of their organisation. Iowa Leadership Studies In 1939 Lippitt and White under the direction of Lewin, did a study on three different styles of leadership in the task performance of ten-year old boys in three groups. The authoritarian leader of the group was very directive. He did not allow any participation. He was concerned about the task and told the followers what to do and how to do it. He was friendly while praising the performance of the individual member and was impersonal while criticising the individual member. In the other group, the democratic leader encouraged discussion with the group and allowed participation in making decisions. Michigan Studies on Leadership Styles : Likert (1961) at University of Michigan Survey Research Centre identified two major styles of leadership orientations-employee orientation and production orientation. The employee oriented style of the leader emphasises the relationship aspect of the jobs of the individual. Such a leader takes interest in every one and accepts the individuality and personal needs of the individual. He has complete confidence and trust in all matters in his subordinates. His subordinates feel free to discuss things about their jobs with their superior. He always asks subordinates for ideas and opinions and always tries to make constructive use of them. Ohio State Studies on Leadership Styles : Stogdill (1957) at the Bureau of Business Research at Ohio State University initiated ‘a series of researches on leadership in 1945. He, along with his colleagues, studied leader behaviour in numerous types of groups and situations by using a Leader Behaviour Description Questionnaire (LBDQ). The studies were conducted on Air Force Commanders and members of bomber crews, officers, non-commissioned opersonnel, civilian administrators in the Navy Department, manufacturing supervisors, executives, teachers, principals and school superintendents and leaders of various civilian groups. They did not have any satisfactory definition of leadership. They also did not think leadership is synonymous with `good' leadership. The LBDQ was administered in a wide variety of situations and surprisingly two dimensions of, leadership continually emerged from the study: one is `consideration' and the other is ‘initiating structure’. Scientific Manager's Style : Taylor (1911) stressed the best way of doing a job. He emphasised the importance of having management and labour work in harmony to maximise profits. The basis of his scientific management was technological in nature. It was felt that the best way to increase output was to improve the techniques or methods used by workers. Therefore, profit can be maximised by using a systematic and scientifically based approach to the study of jobs. Taylor was not trained as a manager He relied on scientific study of time and movement spent and used for a job to improve the performance of the worker. According to the scientific managerial style, management of a work organisation must be divorced from human affairs and emotions and people have to adjust to the management and not management to the people. Various studies reflecting different styles of functioning of a leader have been stated above, which highlight how the leader simultaneously pays attention to the: a) task to be accomplished by the group, and b) needs and expectations of the group and its individual members. Q 12 : Channels of communications and controll systems: CHANNELS OF COMMUNICATION : An organisation structure provides channels for the flow of information on which the decisions of the organisation will be based. As such an organisation can be described as the network of communication channels. These channels can be either intentionally designed, or they may develop of their own accord. When a channel is intentionally prescribed for the flow of communication in the organisation, we call it a formal channel, and the communication passing Compiled by Krishna's Page(http://www.krishnababug.com/)
-20-
through that channel as formal communication. Formal Communication An organisation chart shows the direction of formal communication flow in an organisation. It identifies the various transmitters and receivers, and the channels through which they must communicate. The authority relationships indicate the direction of communication flow in an organisation. Networks in Formal Communication (PIC : Wheel , Y , chain and circle): You have seen earlier how the formal organisational structure prescribes the channels through which communication flows take place. These channels are designed to keep the flow of information in an orderly manner and to protect the higher level managers from an overload of unnecessary information. However, the way in which these channels are designed and work can affect the speed and accuracy of information as well as the task performance and satisfaction of members of the group. As such, managers have to think of how best to design the organisational structure and the communication network which meets the requirements of the situation. Informal communication : Communication that takes place without following the formal lines of communication is said to be informal communication. This channel is not created by management and is usually not under the control of management. An informal system of communication is generally referred to as the `grapevine' because it spreads throughout the organisation with its branches going out in all directions in utter disregard of the levels of authority and linking members of the organisation in any direction. The informal communication arises as a result of employee needs for information which are not met by the formal channels. It has been observed that problems relating to work and unfavourable reactions to various organisational practices are transmitted through informal communication. Since the channels are flexible and establish contacts at personal levels among members of organisation at different hierarchical levels, the grapevine spreads information faster than the formal system of communication. The characteristics of grapevine have been summarised by Keith Davis as follows: a) People talk most when the news is recent. b) People talk about things that affect their work. c) People talk about people they know. d) People working near each other are likely to be on the same grapevine. e) People who contact each other in the chain of procedure tend to be on the same grapevine. THE PREREQUISITES AND CHARACTERISTICS OF EFFECTIVE CONTROL SYSTEMS The major prerequisites of control are two: a plan and a structure.a) Plan: controls must be based on plan. The more clear and complete the plans are the more effective controls can be; plans become the standards by which the actions are measured. b) Structure: There is need for a structure to know where the responsibility rests for deviations and corrective action, if any needed. As in the case of plans, the more clear and complete the organisation structure is, the more effective control can be. Controls, to he effective, should share the following basic characteristics: Appropriate: Controls should correspond to an organisation's plans. Controls designed for a general manager are inappropriate for a supervisor. Similarly, control systems suitable for a line department may be inappropriate for a staff department. Strategic: Control should serve a stretegic purpose and provide spotlight on positive and negative exceptions at critical points. Acceptable: Controls will not work unless people want them to. They should be acceptable to those to whom they apply. Reliable and objective: Controls should be accurate and unbiased. If they are unreliable and subjective, people will resent them. Cost-effective: The benefit from control should be greater than the costs. Control devices should yield tangible benefits. METHODS OF CONTROL : Arthur Bedeian discusses nine methods of control and classifies them into three categories based on their frequency, of use: Constantly used controls: Self-control, group control and policies, procedures and rules. Periodically used controls: Management Information Systems, External Audits and Budgets. Occasionally used controls: Special reports, personal observation and project control. The nine methods of control mentioned above (see Fig. III) are briefly discussed hereunder. Constant Controls Self-control: Managers need to exercise more self-control to Compiled by Krishna's Page(http://www.krishnababug.com/)
-21-
minimise the need for other control methods and making control in the organisation acceptable and effective. Self-control means giving a fair day's work for a fair day's pay, reporting to work on time, discharging duties and responsibility properly and respecting the rights of others in the organisation. Self-control is more in tune with Theory Y discussed later in the unit on Leadership Styles and Influence Process in Block 5. Respect for self-control in an organisation can be a motivating factor. A sense of appreciation for self-control can be promoted among employees through training in behaviour modification. Group Control: Work groups are a source of control. Group-defined norms exert greater influence in organisations than the norms that managements may choose to set unilaterally and thrust on groups. Group norms and group control can aid or hinder formal authority. Organisations would do well to develop and use group control processes to reinforce formal authority. While in some organisations group control processes helped increase output and improve quality,, in others they resulted in restricting output. For group norms to contribute to organisational goals there should be a climate of trust and openness, a culture of cooperation than confrontation. Quality circle, quality of worklife programmes and work redesign experiments being taken up in some organisations are examples that point to organisational thrust toward reinforcing group control processes for achieving organisational goals through integration of members' interests with those of the organisation. Policies/Procedures/Rules: These are essentially bureaucratic control mechanisms referred to in the discussion on control strategies. They reflect past managerial experience and include a variety of aspects concerning how to make certain decisions, deal with resources, etc.
Periodic Controls : Management Information Systems: A Management Information System is a mechanism designed to collect, combine, compare, analyse and disseminate data in the form of information. External Audits: The annual financial audit by an outside accounting firm is one form of external audit, mainly of the finances of an organisation. In the case of public sector units, such an audit is performed by Comptroller and Auditor General also. Budgets: Budgets are plans that deal with the future allocation and utilisation of various resources to different enterprise activities over a given period of time. Occasional Controls : Special Reports: These have a special role. Special reports can be commissioned by an organisation when its normal control systems point to the need for detailed investigation or study of a particular operational aspect. When major policy decisions of strategic Compiled by Krishna's Page(http://www.krishnababug.com/)
-22-
importance are taken, special reports may be commissioned. These include situations where the organisations find the need for overcoming the existing difficulties, modernisation, expansion, diversification, merger, acquisition etc. Personal Observation: Managers can know what is happening in an organisation by relying on information provided by others as also by finding out for them. First hand knowledge has to be critical to be effective. Project Controls: Various methods have been developed for controlling specific enterprise projects. The best example is the network analysis using the PERT tool. PERT is an acronym for Programme Evaluation and Review Technique. Q 13 : Johari Window and Bounded Rationality : A Johari window is a cognitive psychological tool created by Joseph Luft and Harry Ingham in 1955[1] in the United States, used to help people better understand their interpersonal communication and relationships. It is used primarily in self-help groups and corporate settings as a heuristic exercise.When performing the exercise, subjects are given a list of 56 adjectives and pick five or six that they feel describe their own personality. Peers of the subject are then given the same list, and each pick five or six adjectives that describe the subject. These adjectives are then mapped onto a grid.Charles Handy calls this concept the Johari House with four rooms. Room 1 is the part of ourselves that we see and others see. Room 2 is the aspects that others see but we are not aware of. Room 3 is the most mysterious room in that the unconscious or subconscious part of us is seen by neither ourselves nor others. Room 4 is our private space, which we know but keep from others. The concept is clearly related to the ideas propounded in the Myers-Briggs Type Indicator program, which in turn derive from theories about the personality first explored by psychologist Carl Jung.
BOUNDED RATIONALITY: A decision-maker has neither the time and space nor the ability to arrive at an optimal solution and many individuals may not seek to optimize at all. The idea of bounded rationality is that individuals strive to be rational having first greatly simplified the choices available. Thus, instead of choosing from every location, the decision-maker chooses between a small number. The result may be that decision-makers become satisficers; they accept a satisfactory solution which is good enough for their purposes rather than finding the optimum answer. Early work on the theory of bounded rationality is associated with H. A. Simon (1956). Bounded rationality is a school of thought about decision making that developed from dissatisfaction with the “comprehensively rational” economic and decision theory models of choice. Those models assume that preferences are defined over outcomes, that those outcomes are known and fixed, and that decision makers maximize their net benefits, or utilities, by choosing the alternative that yields the highest level of benefits (discounted by Compiled by Krishna's Page(http://www.krishnababug.com/)
-23-
costs). The subjective expected-utility variant of rational choice integrates risk and uncertainty into the model by associating a probability distribution, estimated by the decision maker, with outcomes. The decision maker maximizes expected utility. Choices among competing goals are handled by indifference curves— generally postulated to be smooth (twice differentiable)—that specify substitutability among goals. A major implication of the approach is that behavior is determined by the mix of incentives facing the decision maker. A second implication is that adjustment to these incentives is instantaneous; truemaximizers have no learning curves. Like comprehensive rationality, bounded rationality assumes that actors are goal-oriented, but bounded rationality takes into account the cognitive limitations of decision makers in attempting to achieve those goals. Q 14 : Culture and climate : Book 3 – CULTURE or CLIMATE Every organisation has some characteristics which are common with any other organisation. At the same time, each organisation has its unique set of characteristics and properties. This psychological structure of organisation and their sub-units is usually referred to as Organisational Culture. For a layman, culture is a commonly experienced phenomenon and many words like, climate, atmosphere, environment and milieu are often used interchangeably to describe it. In fact, most of the studies which have tried to measure an organisation's "Culture" have operationalised it in terms of "Organisation Climate". A couple of formal definitions of organisation climate are given below for your perusal: Organisational climate is a relatively enduring quality of the internal environment that is experienced by the members, influences their behaviour, and can be described in terms of values of a particular set of characteristics of the organisation (Renato Tagiuri, 1968). Organisational climate is the set of characteristics that describe an organisation and that (a) distinguish one organisation from other organisations; (b) are relatively enduring over time and (c) influence the behaviour of the people in the organisation (Forehand & Gilmer, 1964). Just as any culture has some do's and don'ts in the form of totems and taboos which dictate how each member should behave with a fellow member or an outsider, similarly each organisation has a culture that influences the behavior of employees towards clients, competitors, colleagues, supervisors, subordinates and strangers. In this Unit, we shall be concerned with this relatively stable perceived internal environment of an organisation, called Organisational Climate or Organisational Culture (OC).It should be noted that Organisational Culture or Organisational Climate (OC) is the perceived aspects of an organisation's internal environment, but within the same organisation there may be very different OCs. ANTECEDENTS OF ORGANISATIONAL CHANGE Changing Forces in Internal and External Environment. An organisation changes its structure and practices as a result of the forces from internal origins as well as from external pressures arising in the environment. There are two primary aspects of organisational structure-differentiation and integration. Differentiation is the division of the organisation into subsystems, e.g. research, sales, production etc. Each differentiated subsystem develops particular attributes in responding to the requirements posed by its relevant external environment. However, differentiation requires the integration of these subsystems to achieve unity of effort and the accomplishment of the organisation's goals. The more turbulent environment would be associated with a higher degree of differentiation among the organisation's sub-parts and also a correspondingly high degree of integrative effort. Similarly, an organisation faced with a stable environment would have less differentiated subsystems and require fewer integrative procedures. The success of an organisation depends upon an appropriate amount of differentiation to cope with the environment and also the right amount of integrative or coordinating effort. Researches by Lawrence and Lorsch (1967) provide evidence for such a generalisation. They represent the external environment forces which influence organisations. Organisations face the need for both to adapt internally to external forces and to initiate changes in the external environment. Compiled by Krishna's Page(http://www.krishnababug.com/)
-24-
These needs explain, for example, why companies engage in lobbying for legislation they favour (external influence, proactive change), but comply when laws not favoured are passed (internal adaptation, reactive change). Growth and Decay : You have seen that an organisation's growth presents many problems and opportunities for change. Decay too poses change problems. It leads to defensive, restorative changes aimed at survival and the es; ntial resumption of growth. When growth occurs through internal vigour of pro' 'act lines, services or market penetration, change is gradual. Change is more extensive when growth occurs from mergers, acquisitions or exceptionally rapid success of organizational activities. New Personnel : Some change is inevitable because of internal factors such as death, retirement, transfer, promotion, discharge, or resignation and constantly changing elements in the external environment. No two managers, you will agree, have the same styles, skills, or managerial philosophies, or the same personal needs. Managerial behaviour is always selective, so that a newly appointed manager may favour different organisational designs, objectives, tasks, procedures and policies than a predecessor. The new, executive will not be exactly like the previous one, nor even like those already present. Change Agents :Change Agent is the technical term for an organisational member whose role involves the strategies and procedures for bringing about change. Any individual can be a change agent at one time or another, but many people have positions, tasks, or formal roles in which their main assignments involve dealing with change. A change agent's formal role is primarily to plan and initiate changes rather than to implement them. Barometers of Declining Effectiveness :Organisations have a number of ways of "taking their pulse" by looking at indicators from their own information systems. A business firm monitors data on sales, absenteeism, turnover, scrap rates, manufacturing costs and numerous ratios of financial measures. Change in Corporate Strategy : An organisation may undertake comprehensive changes even when no indicators would suggest immediate problems in its performance. However, current and past performance have been based on conditions that organisation officials believe to be changing. Forecasts of long run trend may prompt a decisions to enter new markets, to pursue a strategy of growth, to become less dependent on government, to switch from a centralised to a decentralised structure, or to adopt new technologies. Crises : Not infrequently, the occasion for organisational change is an unforeseen crisis which makes continuation of the status quo unthinkable. The sudden death of a Chief Executive Officer, the resignation of key members of a top management team, a strike by a critically important group of specialised workers, loss of major client or suppliers on whom the company has been dependent, a drastic cutback in budget, even spontaneous civil disturbances directed against an organisation force a reorientation of the corporate posture and initiate a total revamping of policy, practice and behaviour. Personal Goals : Leaders, interest groups and coalitions have their own goals: to see the company become more aggressive, to shape the organisation around some distinctive theme, to cast a particular corporate image, to further some ideology or philosophy. Seldom are these goals stated in precisely those forms, at least for the record or for public consumption. THE DOMINO EFFECT : The last main source of change is change itself. There is often a domino effect in which one change touches off a sequence of related and supporting changes, e.g., creating a new department may cause the creation of a new managerial or non-managerial positions or change in assignments within other departments, budgeting reallocations and office space. Other departments may need to realign their missions, structure, tasks and staffing. It is quite common for people to fail to consider the domino effect. Such an oversight Task refers to the job, which can vary in several ways or dimensions such as variety, autonomy, task identity, feedback, and significance. People includes individuals who perform or fill various jobs within the organisation. Individuals vary in their attitudes, motivations and values which influence their perception and evaluation of change. This can complicate the implementation of change.
Compiled by Krishna's Page(http://www.krishnababug.com/)
-25-
THE PROCESS OF ORGANISATIONAL CHANGE : People change their knowledge, attitude and behaviour when they become dissatisfied with status quo or when there is a more desirable substitute. A successful change involves (1) recognising the need for it. (2) learning a new behaviour or substitute and, (3) feeling comfortable with the "new situation". This change process was best described by Kurt Lewin when he described the three stages of change-Unfreezing, Moving and Refreezing (PIC).
The three stages of changes will be described shortly, but before you proceed to look into the phases, you need to become familiar with three more terms which Kurt Lewin gave us to understand the Compiled by Krishna's Page(http://www.krishnababug.com/)
-26-
processof change. These are the concepts of quasi-static equilibrium, driving forces and restraining forces. At any given point of time, any pattern of behavior is a result of equilibrium between two sets of forces-driving and resisting. The "Present" position is achieved because the strength of driving forces and resisting forces is equal. A clear analysis of what are the driving ("Push forward") or resisting ("Pull backward") forces will help you manage a change better. Unfreezing : As a practical matter, change does not occur in a vacuum of no prior perspective. To the extent the new is different from the old and the old-had value to the individuals, the old patterns of perspective implies a questioning and doubting of existing assumptions and feelings. Recognizing the Driving Forces : Recognizing major changes in the environment and problems within the organisation is the first step toward organisational change. Institute managers may recognise these pressures for change and take corrective action. Increasing the Driving Forces Once the need for change is identified, it has to he communicated to people who w he involved in the changing process. As noted earlier, if members know why the change is needed, they are more likely to adopt it. You can employ the following strategies to increase the - acceptance of a change. 1.Express the need for change People who will be affected by the change have to y the change is needed. If they do not, they will hesitate to cooperate in the change process. 2. Communicate the potential benefit People have a tendency to ask, "what's in it for me?" Unless they feel that the change will benefit them or that failure to change will hurt them substantially, they are less likely to cooperate. If no benefits can be identified, the costs of not changing must at least be understood. 3. Protect the interest of concerned people People fear change because it may cause them to lose their jobs, income or status. Assurances of job security, income protection and maintenance of status can increase the acceptance of change. 4. Get people involved in the process Participation can help people accept change. Some individuals have a positive outlook on change and when they participate, the progress of change is facilitated. 5 Communicate the progress of change In order to minimise fear of the unknown, the content and progress of change must be communicated to employees. It is often difficult to know all the potential consequences and influences of a given change, but, by keeping employees informed of its progress, management can at least maintain a climate of trust. 6. Use a respected change agent The credibility and power of the change agent can facilitate the process of change. The change agent must be familiar with the technical and behavioural aspects of a given change and must be someone with an influence on organisational functioning. 7.Reinforce earlier changes When an organisation undertakes a large scale change involving a series of continual modification, it is important for people to see that earlier changes have been successful. 8. Managing the Resisting Forces Most of the strategies designed to increase the driving forces are equally applicable for reducing resisting forces to change. Moving :In the moving or changing phase the individual is ready for new behaviour and a change in perspective. It is important that he or she have an opportunity to build by experimentation new patterns of behaviour and new assumptions, perceptions and feelings. Refreezing : The final phase involves the establishment of a new perspective compatible with and leading to the new desirable behaviour. In effect, the new part of one's total perspective is now established and integrated so that it fits the whole. This makes it possible for the new behaviour to be accomplished as a matter of course. This is the period in which the individual or group begins to enjoy the rewards for the new behaviour, either extrinsically in the form of social approval, monetary reward and the like or intrinsically in the form of ego satisfaction, sense of mastery and self-fulfillment. FORMAL AND INFORMAL ORGANISATIONS : If you and your colleagues decide to meet every Saturday evening for one hour and form a recreation club to play chess and carrom, you are meeting in an informal organisation. However, when the same group of your colleagues meets to review tilt last quarter's performance and plan for the next three months it is in the context of a formal organisation. Thus, while the informal organisation is spontaneous, the formal organisation is the result of a Compiled by Krishna's Page(http://www.krishnababug.com/)
-27-
deliberate and planned effort to pattern activities and relationships in a specific manner to facilitate achieving the specified objectives. A formal organisation is the result of explicit decision-making, deciding how people and activities should be related to one another. However, there is no such decision-making involved in an informal organisation which may simply evolve over time. In the context of a business organisation, both the formal and the informal organisations operate together to form the total organisation. The formal structure delineates specific departments, activities, people and their reporting relationships. The informal structure refers to the social groups or friendships which people working together may form. A most important aspect of the informal organisation is the informal communication network or `grapevine' as it is more commonly known. Similarly, you would find informality evolved values operating within the parameters of the formal organisation. These values may relate to dress, employment of women, employment of members of a minority community, etc., In understanding the structure of an organisation, you must understand the important role played by the informal organisation within the formal organisation. MATRIX STRUCTURE : The matrix structure is a combination of the product and functional organisation and is usually created for executing a project which requires the skilled services of a functional man as well as the specialised knowledge of a product man. Large turnkey projects in specialised fields require a matrix structure. Figure IX illustrates a matrix structure. The distinguishing characteristic of a matrix structure is that it operates under a dual authority. A person is accountable to two bosses at the same time, one his usual boss and the other his boss for the duration of the project. Obviously the problems emanating from this type of structure relate to conflicting roles and authority arising out of an ambiguous demarcation of authority and responsibility. COMMUNICATION PROCESS The simplest model of the communication process can be:Sender ……… > Message………………..> Receive. The model indicates the essential elements of communication, viz., the sender and 1 receiver, and the message that is exchanged between them. If any one of the three elements is missing, communication does not take place.However, the process of communication is a much more complex phenomenon consisting of at least five elements which are subject to various influences. The mod can be put as follows: Source : In this model the first element is the source of the communication from where the communication originates. The source or sender can be a person, a number of persons, or even a machine. The sender initiates communication because he has sc need, thought, idea or information that he wishes to convey to the other person, persons or machine. If, for example, an accidental fire has broken out in a part of godown of the factory, the security officer (source) will need to convey the messaee immediately to the fire station, (receiver). Fire alarm (machine) will do the same ur place of the security officer. Encoding Message : The next element in the process is that of encoding the information to be transmitted Encoding enables the thoughts to be put in the form of symbols. Normally language provides the symbols that are used in the transmission of thoughts to another person. However language is not the only means to convey the thoughts, needs or information. Channel : The next element in the process of communication is the channel through which the communication is transmitted. It is the link that joins the sender and the receiver. The most commonly used channels are sight and sound. In the organisational environment, the channel could take the form of face-to-face conversation, written memos, telephonic exchanges, group meetings, etc. Decoding : Decoding and understanding the message constitute the last two elements in the process of communicating from sender to receiver. The receiver in the first instance receives the message and decodes it, that is to say, interprets and translates it into thoughts, understanding and desired response. A successful communication occurs when the receiver decodes the message and attaches a meaning to Compiled by Krishna's Page(http://www.krishnababug.com/)
-28-
it which very nearly approximates the idea, thoughts or information the sender wished to transmit. Feedback : Response and feedback complete the two-way process of communication. It is through the feedback that the source (sender) comes to know if his message was correctly received and understood. In case it is found that the message has been received incorrectly, it is possible to make corrections subsequently if response is timely. Noise : Surrounding the entire spectrum of communication is the noise that affects the accuracy and fidelity of the message communicated. Noise is any factor that disturbs, confuses or otherwise interferes with communication. It can arise at any stage in the communication process. The sender may not be able to encode the message properly or he may not be properly audible. Book 2 – Unit 5 – MISSION AND OBJECTIVES Mission:The mission is the very reason and justification for the existence of a firm. Mission is always defined in terms of the benefits the firm provides to its customers and not in terms of any physical dimensions of the firm or its products. If there were no customers there would be no firm. Thus the starting point for, defining the mission of any business is its customer. Since the customer exists outside the business, the mission must be defined from the outside. The firm must ask the questions "What is our business?" and "What should it be?" but seek the answer from the customer's viewpoint. The important thing is to identify the not-so-obvious, but the perceived benefit or value which the customer is actually seeking when buying the product. Correct identification of the real benefit or value to the customer will help the firm to answer the question "What is our business?"However, long a definition of mission may remain valid without any change, it must be remarked that the concept of mission is dynamic and not static. It must change over time with changes occurring in the environment. These may relate to changes in technology, social structure, tastes, fashion, etc. Objectives:Once the mission and scope of a firm have been defined by the top management the next logical step is to translate them into action. This can be done by breaking down the business mission into smaller, workable objectives for managers down the line. These objectives relate to the long-run and are described as open ended attributes (described in terms of maximizing or optimizing or minimizing rather than in any specific quantitative terms) which a firm seeks to fulfill in pursuance of its mission. Objectives reflect the `action' orientation of the mission which, in contrast, is expressed in relatively abstract terms. Objectives form the basis for work and provide a yardstick for measuring performance. Objectives may be set for different levels: for the corporate level, business level, divisional level and individual level. Obviously, objectives set for one level will not be identical with those set for another level, but they must certainly be compatible .with each other and seek the fulfillment of the firm's mission. In certain government and public sector undertakings, profit is sometimes ignored and the emphasis is laid on providing an essential service at a subsidized rate. Most transport corporations providing bus and train facilities within a city usually run at a loss.
Compiled by Krishna's Page(http://www.krishnababug.com/)
-29-
