Fundamentals of Management PDF

Introduction to Management A manager‟s task is to solve problems innovatively, and management is thus “the art of getting things done through the efforts of other people.” The principles of management, then, are the means by which you actually manage, that is, get things done through others indiv...

Introduction to Management A manager‟s task is to solve problems innovatively, and management is thus “the art of getting things done through the efforts of other people.” The principles of management, then, are the means by which you actually manage, that is, get things done through others individually, in groups, or in organizations. Formally defined, the principles of management are the activities that, “plan, organize, and control the operations of the basic elements of people, materials, machines, methods, money and markets, providing direction and coordination, and giving leadership to human efforts, so as to achieve the sought objectives of the enterprise.” What is organization? Organisations have a plethora of goals which usually directs their energies and resources to achieve these goals. Organisations possess human as well as nonhuman resources (plant, equipment, land, money, etc.) that are put to use in the accomplishment of target oriented and time bound goals. Management is the force that unifies resources in the service of organisational goals. It is a process of getting results with and through people. Management is needed whenever people work together in an organisation. The managerial functions which includes planning, organizing directing and controlling must be performed by a person who is capable of managing organised efforts, whether it is a business enterprise, religious organisation, military outfit or a social. These functions are performed at all levels in an organisation, regardless of its type or size. The services of management are essential in all cooperative endeavors. Managers work in organizations. So before we can identify who managers are and what they do, we need to define what an organization is: a deliberate arrangement of people brought together to accomplish some specific purpose. Your college or university is an organization. Definition of Management It is not easy to define the term management. There are as many definitions of management for the following reasons:  Management is a vast and extensive subject. It is therefore, not possible to put all the essential features of management in a single formula.  Management is concerned with human beings, who are highly unpredictable in terms of behavior.  Management is a young developing discipline whose concepts are dynamic. Most definitions of the term management emphasize on one common idea: it is concerned with the accomplishment of objectives through the conscious efforts of the people performing certain functions. Let us look into these definitions: Management is the accomplishment of results through the efforts of other people. (Lawrence. A. Appley). Management is the art of getting things done through and with the people in formally organized groups. (Koontz. H). Management as a Science and an Art Management is a wide concept which is not restricted to limited region but plays an important role in our everyday life. It begins with self-arrangement and serves as a mixture 1 of planning organising, controlling, directing as well as coordinating. It involves both science and an art which stands clear among them with several strong constituents. 1. Systematized body of knowledge: Science is a systematic body of knowledge. Its principles are based on a cause-and-effect relationship. 2. Observation and Experiments: All scientific principles are first developed through observations and then tested through repeated experimentation under controlled conditions. 3. Causes and Effect Relationship: Science is based on causes and their effects. For example, if a person eats lots of fast food without any physical activity, he will put on extra weight. 4. Universal Validity: Scientific principles have universal validity and can be applied in all situations and times. basic truths. Management as an Art Now, what do we mean by arts? Arts means the practical application of knowledge and skills to achieve the desired results. It is personal application of knowledge to achieve results. It is attained through study, observation and experience. The essentials features of arts are: 1. Theoretical knowledge: Art comprises the application of theoretical knowledge. A particular art has its basic principles and theory. Some fundamental principles have been derived by the experts which apply to their particular form of art. 2. Personal skills: Every artist has his way of working. The use of basic knowledge varies from individual to individual. Even how they tackle their problems for reaching the result or the goal which they are willing to achieve differs. Applying this basic knowledge with practise, creativity, imagination, initiative, and innovation is a personal skill. 3. Creativity: Art consists of lots of creativity. The theoretical knowledge should be practised and applied differently to become more creative and achieve the ultimate goal. 4. Perfection through Practice: As arts require nonstop practice to gain mastery. By performing the task again and again, the artists gain perfection through practise. For example, a dancer who practices for hours daily will get smooth and perfect with his steps through practise. Management Functions : (POSDC) According to the functions approach, managers perform certain activities or functions as they direct and oversee others’ work. What are these functions? In the early part of the twentieth century, a French industrialist by the name of Henri Fayol proposed that all managers perform five management activities. 1. Planning: Planning is the foremost feature of a management which behaves with plans for future course of action and decides for the most correct course of actions in getting fixed goals. According to Koontz, planning is the advance preparation of action to be taken related to any work. This will link from the starting of a phase to the 2  implementation phase. It is a future direction to be taken which could be worked in problem solving exercises and decision making. It is studied that planning shows related course of action to meet the required goals which involves straight and clear thinking about ways and means for doing fixed goals. Planning serves as a correct usage among human as well as non-human resources. 2. Organising: Organising is related to involvement of physical, financial, human resources as well as development of productive relationships which appears amongst themselves for obtaining organisational criteria‟s. Henry Fayol relates organisation as arranging a business which will give everything required for working and functioning. Practically, organising a business needs finding and showing human and non-human constituents for organisational arrangements. The process of Organising includes:  ◆ Exploring activities  ◆ Classifying activity groups  ◆ Declaration of responsibilities  ◆ Delegating authority and responsibility  ◆ Functioning with authority and coordination 3. Staffing: It involves association of manpower to support an organisation function. With the advent of new technologies and spreading of business avenues, staffing play an important role in catering services rendered by organisations. The idea of staffing is assign right job for right people. Koontz and O‟Donell explained staffing as manpower involvement in an organisation as per desired selection Staffing involves:  ◆ Recruitments after planning  ◆ Processes related to recruitment, selection along with placement ◆ Activities related to Training and development  ◆ Basic remuneration to be offered  ◆ Appraisals  ◆ Promotions and transfers 4. Directing: This is the sector of managerial function which allows organisational methods to work correctly and efficiently in obtaining organisational challenges. This is an inter-personnel concern of a management that influences, guide, supervise and motivate sub-ordinates for obtaining organisational parameters. Direction has the following elements:  ◆ Supervision: Inspecting the work of sub-ordinates with the help of superiors.  3 ◆ Motivation: This involves the work of a superior to inspire, stimulate and encourage with passion to work.  ◆ Leadership: It is the capability which shows the guidance given by mangers to his subordinate to work in certain direction.  ◆ Communications: This involves sharing, communicating and passing of related information from one person to another. This serves as a bridge of understanding. ◆ 5. Controlling: It implies measurement of approach against particular standards with alterations in deflection, if any, will make sure the approach of organisational objectives. The idea behind controlling is to make sure that all will come in conformity with particular standards. A good effective mechanism will handle to think about deflection earlier at times when it actually occurs. Controlling, as per Theo Haimann is basically a mechanism of analysing progress that happens towards particular aims and objectives if required to correct any deflection. Koontz and O‟Donell explained controlling as mechanism that involves correction of activities of subordinates to ensure about enterprise objectives with related plans to get them arrived. Therefore, controlling has the following steps:  ◆ Establishing constant measures  ◆ Measure real performance  ◆ Comparing performances with standards and locating deviations  ◆ Corrective action Levels of Management In an organisation. There are certain levels defined by the management wherein each level is confined with its nature and activities involved. The levels of management can be classified in three broad categories:  Top level / Administrative level  Middle level / Executor level  Low level / Supervisory / Operative / First-line managers. It is seen that different levels has different work area and functions. The role of managers at all the three levels is discussed below 4 Management levels and the Managerial skills Top Management  ◆ Determines objectives and policies. ◆ Designs the basic operating and financial structure of an organisation. ◆ Provides guidance and direction. ◆ Lays down standards of performance. 5 ◆ Maintains good public relations. Middle Management  ◆ Interprets and explains the policies framed by the top. ◆ Issues detailed instructions.  ◆ Participates in operating decisions.  ◆ Trains other managers. Lower Management  ◆ Plans day-to-day operations.  ◆ Assigns jobs to workers.  ◆ Provides supervision and control over work. ◆ Arranges material tools and equipment. ◆ Maintains discipline Define Manger and Role of a Manager Manager most commonly refers to a person who supervises employees in a company or other organization. Managers are typically somewhere in the middle level of an organization—the term most commonly refers to a person who is a boss but also has a boss Henry Mintzberg derived the concept of managerial role after studying the managers in the french mining industry. 1. Interpersonal Role 6 ◆ Figurehead: This includes the traditional role akin to that of the head of a big family; these gestures go a long way in building a rapport with the employees. This role would expect the manager to perform duties of welcoming and felicitating dignitaries, going for business lunches and attending important functions of employees.  ◆ Leader: As a leader, every manager must encourage and persuade his employee to work. He must try to bring together their interpersonal needs with the goal of organisation. He is the sole motivator of the employees working under him which means he must enjoy not just their trust but also their respect.  ◆ Liaison: In his role as a liaison, every manager must develop contacts outside his perpendicular chain of command to collect information for his organisation. 2. Informational Role ◆ Monitor: As a monitor, the manager has to constantly scan his environment for information, debrief his contacts and his subordinates and decide on unsolicited information, where much of it a result of the network of personal contact developed.  ◆ Disseminator: In the role of a disseminator, the manager passes some information openly to his subordinates who would otherwise have no access to it.  ◆ Spokesman: In this role, the manager informs to satisfy various groups and people who influence his organisation. He assures his shareholders of financial performance. He assures consumer groups that the organisation is fulfilling its social responsibilities. He satisfies the government that the organisation is abiding laws. 3.Decision Role ◆ Entrepreneur: In this role, the manager is an idea- seeker who seeks to improve his unit by adapting it to changing conditions in the environment.  ◆ Disturbance Handler: In this role, the manager is expected to seek solutions of various unforeseen problems – for example if there is a strike, lockdown or a major customer goes bankrupt it is the duty of the manager to find a solution. ◆ Resource Allocator: In this role, the manager must divide work and delegate authority among his subordinates. He must decide who will get what.  ◆ Negotiator: The manager has to spend considerable time in negotiation. As a representative of his company it is the duty of the manager to negotiate with the management for the welfare of the workers, he needs to negotiate with the union leader if there is a strike issue, or the foremen may negotiate with the workers on any grievances they may have. A brief history of of managements’ roots 7 EARLY MANAGEMENT : Management has been practiced a long time. Organized endeavors directed by people responsible for planning, organizing, leading, and controlling activities have existed for thousands of years. Regardless of what these individuals were called, someone had to perform those functions. EVOLUTION OF MANAGEMENT THOUGHT The Classical approach -Beginning around the turn of the twentieth century, the discipline of management began to evolve as a unified body of knowledge. Rules and principles were developed that could be taught and used in a variety of settings. These early management proponents were called classical theorists The Behavioural approach -It is studied that behavioural school carries a profound effect on management by covering topics like motivation, communication, leadership, organisational politics and employee behaviour. The Management approach-It is studied that behavioural school carries a profound effect on management by covering topics like motivation, communication, leadership, organisational politics and employee behaviour. 1. THE CLASSICAL APPROACH : A. Scientific Management 1911 -That’s the year Frederick W. Taylor’s Principles of Scientific Management was published. His groundbreaking book described a theory of scientific management—the use of scientific methods to determine the “one best way” for a job to be done. His theories were widely accepted and used by managers around the world and Taylor became known as the “Father” of Scientific Management. The Scientific Management was also known as” Taylorism” It has certain principles such as:  1. Invent science for every workers job which will alter the rules of thumb. 2. Specialised job should be need of every job.  3. Make sure about good selection involving training and construction of workers. 8 4. Planning and scheduling of the work are required.  5. Established Standards related to every method and time for each task.  6. Wage incentives carry internal structure of every job work. B. Administrative Theory It is found that scientific management focused on the productivity of individual workers at the same time, the administrative theory focused on total organisation. The major contributors of such theory is Henry Fayol. 1. Division of labour: The first Henry Fayol principle of management is based on the theory that if an employee is given a specific task to do, they will become more efficient and skilled in it. This is opposed to a multi-tasking culture where an employee is given so many tasks to do at once. In order to implement this principle effectively, look at the current skill sets of each employee and assign them a task that they can become proficient at. This will help them to become more productive, skilled, and efficient in the long run. Example: At a school, every department has a different responsibility, like academics, sports, administration, sanitation, food, beverages, etc. These responsibilities are taken care of by employees specializing in that particular department, increasing efficiency and productivity and making them specialists in their field. 2. Authority: This henry fayol principle of management states that a manager needs to have the necessary authority in order to ensure that his instructions are carried out by the employees. If managers did not have any authority, then they would lack the ability to get any work done. However, this authority should come along with responsibility. According to Henri Fayol, there should be a balance between authority and responsibility. If there is more authority than responsibility, the employees will get frustrated. If there is more responsibility than authority, the manager will feel frustrated. 9 Example: If an employee has been responsible for managing the decor department while planning an event but has no authority to make design decisions or contact the vendors to get the work done, no efficiency or productivity will be achieved. 3 Discipline: This principle states that discipline is required for any organization to run effectively. In order to have disciplined employees, managers need to build a culture of mutual respect. There should be a set of organizational rules, philosophies, and structures in place that should be met by everyone. Bending rules or slacking should not be allowed in any organization. In order to achieve this, there is a need for good supervision and impartial judgment. Example: Every employee must follow certain rules and regulations and keep a disciplined attitude in the workplace for smooth working and efficient results. 4. Unity of command: This principle states that that should be a clear chain of command in the organization. The employees should be clear on whose instructions to follow. According to Fayol, an employee should receive orders from only one manager. If an employee works under two or more managers, then authority, discipline, and stability are threatened. Moreover, this will cause a breakdown in management structure and cause employees to burn out. Example: If in a company, an employee has been given a task to finish within 3 to 4 hours as ordered by their immediate superior. But the head of the department asks them to deliver the task within 1 hour. In this case, no unity of command can create confusion and pressure in the workplace. 5 Unity of direction: This henry fayol principle of management states that the work to be done should be organized in such a way that employees work in harmony towards the same objective, using one plan, under the direction of one manager. For example, if you have a range of marketing activities such as advertising, budgeting, sales promotion, etc., there should be one manager using one plan for all the marketing activities. The different activities can be broken down for different sub-managers, but they should all work towards a common goal under the direction of one main person in charge of the whole thing. Example: Different sets of activities within a department should be managed by different managers to avoid confusion and lesser efficiency within the workflow. 6. Subordination of each interest: Individual interest should not be put in front of interests of an organisation in total.This principle states that the overall interest of the team should take precedence over personal ones. The interest of the organization should not be sabotaged by the interest of an individual. If anyone goes rogue, the organization will collapse. Example: While planning a team outing, the employee making the travel and stay decisions must make arrangements according to comfort and affordability, not just as per their liking. 10  7. Remuneration: This henry fayol principle of management states that employees should be paid fair wages for the work that they carry out. Any organization that underpays its workers will struggle to motivate and keep quality workers. This remuneration should include both financial and non-financial incentives. Also, there should be a structure in place to reward good performance to motivate employees. Example: Any organization must be fair regarding their remuneration policies where all the employees must receive a salary worth their efforts irrespective of their gender, tenure, and other factors. 8.Centralisation: Centralization refers to the concentration of power in the hands of the authority and following a top-bottom approach to management. In decentralization, this authority is distributed to all levels of management. In a modern context, no organization can be completely centralized or decentralized. Complete centralization means that people at the bottom have no authority over their responsibilities. Similarly, complete decentralization means that there will be no superior authority to control the organization. To use this effectively today, there should be a balance of centralization and decentralization. The degree to which this balance is achieved will differ from organization to organization. Example: Centralization is mostly common in small and medium-sized firms where the delegation of work is minimal, and the owners make most of the decisions. 9.Scalar chain: A scalar chain refers to a clear chain of communication between employees and their superiors. Employees should know where they stand in the hierarchy of the organization and who to go to in a chain of command. To implement this in the workplace, Fayol suggests that there should be an organizational chart drawn out for employees to see this structure clearly. Example: Every organization has a specific chain of authority from the highest level of superiors, like the founder or CEO, to the lowest level of subordinates following a hierarchy for maximum productivity. 10.Order: This principle states that there should be an orderly placement of resources (manpower, money, materials, etc.) in the right place at the right time. This ensures the proper use of resources in a structured fashion. Misplacement of any of these resources will lead to misuse and disorder in the organization. Example: Employees should be given a designated space and the right tools or equipment to complete their work efficiently 11. Equity: Equity is a combination of kindness and justice. This principle states that managers should use kindliness and justice towards everyone they manage. This creates loyalty and devotion among the employees towards the organization they work for. Example: All employees, irrespective of gender, religion, race, and sexuality, must feel safe, seen, and heard and be given equal opportunities to grow and flourish in their careers within the organization. 11  12. Stability of personnel: This principle states that an organization should work to minimize staff turnover and maximize efficiency. Any new employee cannot be expected to get used to the culture of an organization right away. They need to be given enough time to settle into their jobs to become efficient. Both old and new employees should also be ensured job security because instability can lead to inefficiency. There should also be a clear and effective method to handle vacancies when they arise because it takes time and expense to train new ones. Example: Every new employee must be given a proper induction of both the technical aspect of the company as well as the work culture and office environment for them to mingle well. Old employees should be given alum awards for completing certain tenures to boost morale. 13. Initiative: This principle states that all employees should be encouraged to show initiative. When employees have a say as to how best they can do their job, they feel motivated and respected. Organizations should listen to the concerns of their employees and encourage them to develop and carry out plans for improvement. Example: Taking suggestions from employees regarding their specific department can make them feel seen in an authoritative position and can give them a sense of achieving something for the team. 14. Esprit de corps: Esprit de Corps means “Team Spirit”. This henry fayol principle of management states that the management should strive to create unity, morale, and co-operation among the employees. Team spirit is a great source of strength in the organization. Happy and motivated employees are more likely to be productive and efficient. Example: While discussing the new plan of action for achieving the next month's targets, using the word 'We' instead of 'I' brings a teamwork spirit to the group. 2. THE BEHAVIORAL APPROACH OR MOTIVATIONAL THEORIES In contrast to scientific management, with its focus on optimizing man as a machine, behavioral management focuses on worker behavior and motivations. Specifically, behavioral management theory is concerned with how to manage productivity by understanding worker motivation, including expectations, needs and interests, and group dynamics. Behavioral management theory is sometimes referred to as the human relations movement due to its focus on the human needs. Let’s look at few theories related to Behavioral Approach; 12 Elton Mayo details on worker productivity known as Hawthorne studies during year 1924 at Western Electric Company 1924 – Mid-1930s. Who was Elton Mayo - Elton Mayo was born in Australia in 1880. Mayo worked from 1926-1949 as a professor of Industrial Research at Harvard University. He is best known for his work based on the Hawthorn Studies, as well as his book, The Human Problems of an Industrialized Civilization. The Hawthorne studies, a series of studies that provided new insights into individual and group behavior, were without question the most important contribution to the behavioral approach to management. Conducted at the Hawthorne (Cicero, Illinois) Works of the Western Electric Company, the studies were initially designed as a scientific management experiment. The very first study that was done concerned workplace lighting. The study sought to understand if changing lighting conditions resulted in increased or decreased productivity. To run the experiment two groups were created. A control group and a group with improved lighting conditions. What happened when the lighting was improved for one group? Well, productivity improved for that group. But, here’s the strange thing. Productivity also improved in the control group! When they reduced lighting for one group productivity also increased! Not only that, but each change (increase or decrease) also lead to increased employee satisfaction. So, what’s going on? He recognized that the worker isn’t a machine and that how they are treated and their environment is important. He recognized that work is a group activity and employees have a need for comradery and recognition. They have a need for a sense of belonging. In a nutshell, productivity has a psychological element to it. And thus he came to the following final conclusions: Individual employees must be seen as members of a group; Salary and good working conditions are less important for employees and a sense of belonging to a group; Informal groups in the workplace have a strong influence on the behaviour of employees in said group; Managers must take social needs, such as belonging to an (informal) group, seriously. 1. Abraham Maslow’s Theory – Hierarchy of Needs According to Maslow (1943, 1954), human needs were arranged in a hierarchy, with physiological (survival) needs at the bottom, and the more creative and intellectually oriented ‘self-actualization’ needs at the top. 13  1. Physiological needs are biological requirements for human survival, e.g., air, food, drink, shelter, clothing, warmth, sex, and sleep. Our most basic need is for physical survival, and this will be the first thing that motivates our behavior. Once that level is fulfilled, the next level up is what motivates us, and so on. The human body cannot function optimally if physiological needs are not satisfied. Maslow considered physiological needs the most important as all the other needs become secondary until these needs are met. 2. Safety needs – people want to experience order, predictability, and control in their lives. Safety needs can be fulfilled by the family and society (e.g., police, schools, business, and medical care).For example, emotional security, financial security (e.g., employment, social welfare), law and order, freedom from fear, social stability, property, health, and well-being (e.g., safety against accidents and injury). 3. Love and belongingness needs refers to a human emotional need for interpersonal relationships, affiliating, connectedness, and being part of a group. Examples of belongingness needs include friendship, intimacy, trust, acceptance, receiving and giving affection, and love. This need is especially strong in childhood and can override the need for safety, as witnessed in children who cling to abusive parents. 14 4. Esteem needs are the fourth level in Maslow’s hierarchy and include self-worth, accomplishment, and respect. Bottom of Form Maslow classified esteem needs into two categories: (i) esteem for oneself (dignity, achievement, mastery, independence) and (ii) the desire for reputation or respect from others (e.g., status, prestige). Esteem is the typical human desire to be accepted and valued by others. People often engage in a profession or hobby to gain recognition, which gives them a sense of contribution or value. Low self-esteem or an inferiority complex may result from imbalances during this level in the hierarchy. Maslow indicated that the need for respect or reputation is most important for children and adolescents and precedes real self-esteem or dignity. 5. Self-actualization needs are the highest level in Maslow’s hierarchy, and refer to the realization of a person’s potential, self-fulfillment, seeking personal growth, and peak experiences. This level of need refers to what a person’s full potential is and the realization of that potential. Maslow describes this level as the desire to accomplish everything that one can, and “to become everything one is capable of becoming”. Individuals may perceive or focus on this need very specifically. For example, one individual may have a strong desire to become an ideal parent. In another, the desire may be expressed athletically. For others, it may be expressed in paintings, pictures, or inventions. Although Maslow did not believe that many of us could achieve true self-actualization, he did believe that all of us experience transitory moments (known as ‘peak experiences’) of self-actualization. Key Takeaways Maslow’s hierarchy of needs is a motivational theory in psychology comprising a five-tier model of human needs, often depicted as hierarchical levels within a pyramid. The five levels of the hierarchy are physiological, safety, love/belonging, esteem, and self-actualization. Lower-level basic needs like food, water, and safety must be met first before higher needs can be fulfilled. Few people are believed to reach the level of self-actualization, but we can all have moments of peak experiences. The order of the levels is not completely fixed. For some, esteem outweighs love, while others may self-actualize despite poverty. Our behaviors are usually motivated by multiple needs simultaneously. 15  Applications include workplace motivation, education, counseling, and nursing. 3. Theory X and Theory Y In the 1960s, social psychologist Douglas McGregor developed two contrasting theories that explained how managers' beliefs about what motivates their people can affect their management style. He labeled these Theory X and Theory Y. These theories continue to be important even today Theory X Theory X managers tend to take a pessimistic view of their people, and assume that they are naturally unmotivated and dislike work. Work in organizations that are managed like this can be repetitive, and people are often motivated with a "carrot and stick" approach. Performance appraisals and remuneration are usually based on tangible results, such as sales figures or product output, and are used to control and "keep tabs" on staff. This style of management assumes that workers: Dislike their work. Avoid responsibility and need constant direction. Have to be controlled, forced and threatened to deliver work. Need to be supervised at every step. Have no incentive to work or ambition, and therefore need to be enticed by rewards to achieve goals. According to McGregor, organizations with a Theory X approach tend to have several tiers of managers and supervisors to oversee and direct workers. Authority is rarely delegated, and control remains firmly centralized. Theory Y Theory Y managers have an optimistic opinion of their people, and they use a decentralized, participative management style. This encourages a more collaborative, trust-based relationship between managers and their team members. People have greater responsibility, and managers encourage them to develop their skills and suggest improvements. Appraisals are regular but, unlike in Theory X organizations, they are used to encourage open communication rather than to control staff. Theory Y organizations also give employees frequent opportunities for promotion. This style of management assumes that workers are: Happy to work on their own initiative. More involved in decision making Self-motivated to complete their tasks. Enjoy taking ownership of their work. Seek and accept responsibility, and need little direction. View work as fulfillling and challenging. Solve problems creatively and imaginatively. Theory Y has become more popular among organizations. This reflects workers' increasing desire for more meaningful careers that provide them with more than just money. It's also 16 viewed by McGregor as superior to Theory X, which, he says, reduces workers to "cogs in a machine," and likely demotivates people in the long term. When to Use Theory X and Theory Y ? Most managers will likely use a mixture of Theory X and Theory Y. You may, however, find that you naturally favor one over the other. You might, for instance, have a tendency to micromanage or, conversely, you may prefer to take a more hands-off approach. Although both styles of management can motivate people, the success of each will largely depend on your team's needs and wants and your organizational objectives. You may use a Theory X style of management for new starters who will likely need a lot of guidance, or in a situation that requires you to take control such as a crisis. But you wouldn't use it when managing a team of experts, who are used to working under their own initiative, and need little direction. If you did, it would likely have a demotivating effect and may even damage your relationship. Circumstance can also affect your management style. Theory X, for instance, is generally more prevalent in larger organizations, or in teams where work can be repetitive and target-driven. 3. THE MANAGEMENT APPROACH: Contingency Approach The contingency approach is a management theory that suggests there’s no single best way to manage an organization. Instead, the most effective management style or organizational structure depends on the specific circumstances or context in which a company operates. This approach takes into account factors like the external environment, nature of each task, workforce, and organizational culture, and it tailors management practices to fit these variables. Often referred to as contingency theory or contingency approach to management, this concept recognizes the dynamic and ever-changing nature of the workplace. It emphasizes the need to adapt HR practices to suit an organization’s unique circumstances, ultimately leading to more effective decision-making and problem-solving. What are the 4 contingency approaches? The contingency approach encompasses various theories, offering a distinct perspective on managing organizations. These theories are: 17  1. Fiedler’s Contingency Theory Fiedler’s Contingency Theory posits that a leader’s effectiveness is determined by the match between their leadership style (task-oriented or relationship-oriented) and the specific situation. The situation is assessed based on three factors: leader-member relations, task structure, and the leader’s positional power. Fiedler’s Contingency Theory example A task-oriented manager excels in a structured production environment but struggles when transferred to a less structured, relationship-driven customer service role. Their effectiveness depends on the fit between their style and the environment. 2. Situational Leadership Theory The Situational Leadership Theory, developed by Paul Hersey and Ken Blanchard, suggests leaders should adapt their style based on the readiness or maturity of their followers. The theory identifies four leadership styles — Telling, Selling, Participating, and Delegating — each suited to different levels of employee competence and commitment. Situational Leadership Theory example A manager uses a directive approach (Telling) with a new, inexperienced team member and gradually shifts to a more hands-off style (Delegating) as they become more skilled and confident. 3. Path-Goal Theory The Path-Goal Theory, developed by Robert House, focuses on how leaders can motivate their followers to achieve goals by clarifying the path to success, removing obstacles, and providing support. The theory suggests leaders can adapt their behavior to fit their team’s needs using directive, supportive, participative, or achievement-oriented styles. Path-Goal Theory example A sales manager clarifies goals and provides additional training to help the team overcome challenges, while also offering incentives to boost motivation. This approach helps the team achieve their targets by ensuring they have a clear path and the necessary support. 4. Decision-Making Theory The Decision-Making Theory in management proposes that managers tailor their decision-making approach based on the situation. Depending on the problem’s complexity and urgency, managers might choose autocratic, consultative, or participative decision-making styles. Decision-Making Theory example A startup CEO uses an autocratic leadership style for technical decisions requiring quick action, a participative leadership style for decisions affecting company culture, and a 18 consultative approach for routine decisions, adapting her style to the specific needs of each situation. 2. Systems Approach to Management The theory emphasizes that a system is not simply a collection of individual parts but rather an organized whole, where the interdependence of its parts contributes to the unique characteristics of the entire system. Every system, including organisations, is composed of interdependent subsystems, which themselves can consist of smaller subsystems. This recognition highlights the complexity and interconnectedness of organisations as open systems. Unlike closed systems, open systems interact with their external environment, relying on it for energy, information, and materials. Features of Systems Approach to Management Some of the features of the systems approach are: 1. Interconnected Sub-systems: An organisation is like a big puzzle made up of smaller pieces that work together. These pieces, called sub-systems, interact and depend on each other for the organisation to function properly. 2. No Isolation: We can’t understand the sub-systems by looking at them individually. Instead, we need to see how they relate to each other and to the organisation as a whole. It’s like understanding how each puzzle piece fits into the larger picture. 3. Boundary: An organisation has a boundary that sets it apart from other systems. It helps us identify which parts are inside (like employees) and which parts are outside (like customers). This boundary defines the organisation’s scope and limits. 4. Changing Environment: Organisations are dynamic systems because they are affected by their environment. They can be influenced by things, like power cuts, strikes, or shifts in customer preferences. That’s why management needs to keep an eye on what’s happening outside and make adjustments when needed. 5. Sensitivity to the Environment: Because organisations are influenced by their environment, they need to be sensitive to changes. Just like we react when 19  something unexpected happens, organisations must be responsive and adapt to external factors that may affect their operations. 6. Monitoring and Taking Action: To ensure a healthy organisation, it’s crucial to constantly monitor its well-being. Management needs to pay attention to signs of problems and take corrective action promptly. It’s like regularly checking the pulse of the organisation to make sure everything is running smoothly. Meaning and Definition of Planning Planning is deciding in advance what to do, how to do it, when to do it and who is to do it. (Koontz and O‟Donnell). Planning is a thinking process, an organised foresight, a vision based on fact and experience that is required for intelligent action. (Alford and Beatt) Features of Planning Planning has a number of characteristics: 1. Planning is goal-oriented. o Planning is the core of business. o Goals established should be worked out to make. o Planning locates action which leads to goals quickly and economically. o Planning shows a sense of direction to various activities. 2. Planning is looking ahead. o It is done for future. o It requires peeping in future, analyzing it and predicting it. o It is based on forecasting. o It is a synthesis of forecast. o It is a mental predisposition for things to happen in future. 3. Planning is an intellectual process. o It is a mental exercise which includes lucrative thinking, judgment and imagination. o It involves not mere guesswork but rotational thinking. o It depends on goals, facts and considered estimates. 4. Planning involves choice and informed decision-making. o It basically involves selecting from various alternatives. o It is not applicable in single course of action as it attains no choice. o The decision-making involves an integral part of planning. o It gives more options to managers to select the best as per needs. o It basically involves selecting from various alternatives. 8 o It is not applicable in single course of action as it attains no choice. o The decision-making involves an integral part of planning. o It gives more options to managers to select the best as per needs. 5. Planning is the primary function of management / Primacy of Planning 20  o It lays the foundation for other functions of management. o It serves as guide for organizing, staffing, directing and controlling. o It carries complete functions of management inside a framework. o It is the main function of management. 6. Planning is a continuous process. o It serves as never-ending process due to dynamic business environment. o It is prepared for particular time and is subject to revaluation and review. o It remains continuous. 7. Planning is all-pervasive. o It is needed at every level of management and everywhere in enterprise. o It varies with scope of work. o Top level involves in planning, middle level involves in departmental plans while lower level will implement the same plan. 8. Planning is designed for efficiency. o It leads to complete objectives at lowest cost. o It avoids wastage of resources and ensures good use of resources. o It is worth or useless till it results in value of cost which occurs. o It results in saving time, effort and money. o It leads to correct use of men, money, materials, methods and machines. 9. Planning is Flexible. o It should give enough room to cope with changes occurs with customer demand, competition, government policies, etc. o The original plan should keep on updating if if any circumstance for change occurs. Advantages and Disadvantages of Planning Advantages a) Planning forces the manager to generate a blueprint of line of action for doing objectives. b) With planning, there exists order and reasonableness in an organization. c) It encourages the employees to deliver best which led to earning of reward. This will develop healthy attitude in work, which further boost the morale and efficiency of employees. d) It leads to pre-determined goals that will helped to compare actual performance. It is seen that planning and controlling are opposite sides of a coin. e) With planning, best use of resources, good quality production and aggressive strength of enterprise can be enhanced. Disadvantages a) With planning the administration becomes inflexible. 21  b) It requires progressive policies, procedures and programmes. c) It is circumscribed to individual freedom. d) It is restricted to individual interests not for an enterprise. e) Due to assemblage of data, it is a time consuming process. f) It does not work at time of emergency or crisis when faster decisions are needed. g) Planning depends on thought which is not accurate as a result of future stability. h) Planning is not cost effective as lot of time and money spends on collection, analysis and evaluation of information. Management by Objective (MBO) It is a type of management which is popular and result oriented technique for any organisation. It is a systematic and organized way which focuses on achievement of goals. It allows management to alter organisation learning to be more result oriented. It has certain objectives for employees as:∙ ∙ ∙ ∙ ∙ In this the management dumps the organisational goals and gives chunks to senior managers. It is the work of senior managers to obtain objectives to achieve as per organisational goals. It chunks down operational management goals and find activities needed for getting such objectives. After giving objectives and activities, management releases input to find objectives in a particular time with certain tracking features. In this all objectives are tracked and certain feedbacks related to objective were delivered to objective owner. 22 23 Meaning and Definition of Organising Where two or more persons work together for achieving a common goal, their activities have to be organised. Organising is a process of integrating, coordinating and mobilising the activities of members of a group for seeking common goals. It implies establishment of working relationships, which is done by assigning activities and delegating authority. “Organising involves the establishment of an internal structure of roles, by identifying and listing the activities required to achieve the purpose of a enterprise, the grouping of these activities, the assignment of such group of activities to manager, the delegation of authority to carry out and provision for coordination of authority relationship horizontally and vertically in the organisation structure.”-Koontz and O‟Donnell Principles of Organising Introduction of organisation discusses those well-established and accepted general statements, which are used in the process of organising to prepare a sound 38 organisationl structure. These principles serve as general guidelines for managers for developing sound and more effective pattern of relationship in designing the organisation. Most of these principles have classical flavour; early management writers, including F. W.Taylor, HenriFayol, Lyndall, Urwick and others have established them. With the passage of time, these principles have been refined and extended by many modem management scientists to make them more efficacious and relevant in the modem context. Some of these principles are outlined below. 1.Principle of Division of Labour: This is the basic principle of organising, which represents division of work and activities into small tasks and jobs necessary for achieving a set of objectives. 2.Principle of Functional Definition: In order to exonerate assumed responsibility by concluding the job assigned to the employee, he has to perform many functions. According to this principle, the tasks to be performed by an individual employee or by a department must be well defined. 3.Principle of Scalar Chain: This principle is known as scalar chain or line of authority or chain of command. It states that there exists an unbroken line of authority or sealer chain from the top to the lowest level. 4.Principle of Span of Control: This principle refers to the number of subordinates to be placed under the command of the manager so that he can manage their work efficiently. 5.Principle of Unity of Command: The principle of unity of command implies oneness of command and single source of authority over a subordinate. 6.Principle of Objective: The organisation and each of its components or sub-systems should be directed towards the accomplishment of predetermined objectives. 24 7. Principle of Balance: According to this principle, all techniques and principles applied to particular structure of the organisation must be properly balanced to ensure that one principle does not contradict with another or benefits of one are not countered by the benefits of the other. 8.Principle of Flexibility: It proposes that the structure of an organisation should be designed to permit growth and diversification. Organising and Organisation Structure 9.Principle of Absoluteness of Responsibility: According to this principle, responsibility once assumed by the manager cannot be shifted to subordinates. 10.Principle of Delegation by Result Expected: For creating the structure of an administration, authority should be delegated in such a way as to elucidate performance potentials in terms of cost, volume, time and efforts. 11.Principle of Parity between Authority and Responsibility: The principle suggests that there should be complete balance or parity between authority and responsibility; only that much authority should be delegated which is needed for carrying out the assigned job. 12.Principle of Efficiency: According to this principle, the organisational structure should be designed in such a way as to facilitate efficient accomplishment of objectives. 13.Principle of Continuity: The principle of continuity states that while designing the structure of the organisation, due care should be taken to maintain continuity in respect of its existence and functioning. 14a.Principle of Cooperation: According-to this principle, an organisation is considered as a team aimed at achieving objectives. Therefore, all members should achieve the allotted work in co-operation with each other. Organisational Chart An organisational chart (often called organisation chart/ org chart/ organigram/ organogram) is a diagram that shows the structure of an organisation and the relationships and relative ranks of its parts and positions/jobs. The term is also used for similar illustrations, for example ones showing the different rudiments of a field of knowledge or a group of languages. An organisational chart of a company usually shows the managers and sub workers who make up an organisation. It also shows the relationships between directors: managing director, chief executive officer and various departments. In many large companies, the 25 organisation chart can be outsized and extremely complicated and is therefore sometimes divided into smaller charts for each individual department within the organisation. Types of Organisational Charts The structure of an organisation can be graphically presented in the following manner: 1. Vertical chart: Vertical chart Vertical organisation chart This is the conventional way of preparing the organisational chart. It specifies the position of chief executive on the top, to which succeeding managerial positions are attached. As the chain of command action moves downwards, at every 26 following stage, contents of authority tend to decrease. Vertical charts take the shape of a pyramid with fewer managerial positions on the higher side and more positions on the lower sides. 2. Horizontal chart: Organisation of Forest Department There is just a minor distinction between vertical and horizontal charts. Firstly, the pyramid line remains in horizontal position in place of the vertical position. Second, the line of authority begins from left to right in the horizontal chart. The position of chief executive lies on acute left side and as it moves to right side, it represents lower level of managerial chain of command. Since horizontal charts complicate the diagram, they are less common in practice. 27 3. Circular chart: The concentric chart indicates the top managerial position at the centre and other middle and lower managerial positions revolve from centre in concentric circles. Beside top position, the lowest managerial position lies on the outermost circle. Circular charts plainly show scope of each manager‟s responsibility and authority and eliminate status implications which are intrinsic from top to lower levels. It takes minimal space for presenting different managerial positions. But it is inundated with a weakness; it is very challenging to draw and it officially creates a lot of confusion regarding managerial positions. Informal Organisation Meaning Informal organisation endures as a relationship which survives between people in an organisation on the basis of their attitudes, emotions, prejudices, likes and dislikes etc. Such type of relation does not exist as per the standards and processing rules which ensues in a formal organisation. Normally, it is seen that a large formal groups will escalate small informal groups that are not planned earlier but will originate automatically in an organisation. Characteristics The characteristics of an informal organisation are: 28  An informal organisation is flexible and unplanned depending on its structure. It carries no defined relationship. It carries two or more than two people. There exists a natural relationship. It carries volunteered membership. ∙ In this, there is no compulsion of groups as people have right to join any numbers of groups at the same time. Importance The importance of informal organisation in terms of Employees is: Sense of Belonging Safety valve for emotional problems Aid on the Job Innovation and Originality Important Channel of Communication Social Control Limitations Limitations In an informal organisation, people sometimes conveyed wrong things to other person that result in horrible results. In such type of organisation, the changes are resisted and stress occurs when olden procedures are adopted. With negative thinking of leaders, the personal interest satisfies group interests then such organisation tends to function against formal organisational goals that could be dangerous. In this, when role in a group differs from formal goals then under such members conflict occurs in formal and informal roles. 29 Difference between Formal and Informal Organisation Meaning of Controlling According to Brech, “Controlling is a systematic exercise which is called as a process of checking actual performance against the standards or plans with a view to ensure adequate progress and also recording such experience as is gained as a contribution to possible future needs.” According to Donnell, “Just as a navigator continually takes reading to ensure whether he is relative to a planned action, so should a business manager continually take reading to assure himself that his enterprise is on right course”. Controlling has got two basic purposes: It facilitates Co-ordination It helps in planning Importance of Control Control is an indispensable part of every organisation. The management process is incomplete and sometimes rendered meaningless without control function. Targets remain on paper, where people tend to use resources recklessly and managers find everything chaotic. The absence of control could be very costly and unproductive. A good system of control, however, puts an end to all of these and offers the following advantages: 30 1. Achievement of Goals: Controlling is a goal-oriented process. It keeps activities on the right track. Whenever things go off the rails, remedial steps are undertaken immediately. Every attempt is made to confirm events, to set targets and thereby achieve results efficiently and effectively. 2. Execution and Revision of Plans: It is through controlling that suitable steps are taken to ensure that each plan is implemented in a predetermined way. Controlling measures progress, uncovers deviations, indicates corrective steps and thus, keeps everything on track. Of course, when conditions change dramatically, controlling helps to review, revise and update the plan. It offers valuable feedback information, reveals shortcomings in plans and thereby helps in preparing other plans for future use. 3. Brings Order and Discipline: In an organisation, while pursuing goals managers and their subordinates often commit mistakes. For example, problems are diagnosed incorrectly, lesser quality inputs are ordered, wrong products are introduced, and poor designs are followed. A control system helps check such tendencies before they turn into serious problems. It has a healthy impact on the behaviour of subordinates. They become cautious while discharging their duties since they are aware (that their actions are observed at every stage) 4. Facilitates Decentralisation of Authority: When managers delegate work to lower levels, they must also ensure that the subordinates do not deviate from a predetermined course of action. A defined system of control ensures this by forcing subordinates to conform to plans. The feedback information helps managers check whether actions taken at lower levels are in line with what has been planned or not. It helps measure progress, check deviations and adjust operations from time to time. This leads to a dynamic set up with achievable goals. 5. Promotes Co-ordination: Control facilitates Co-ordination between different departments and divisions by providing them unity of direction. Individuals and their activities are tied to a set of common objectives. Such a unified focus ensures accomplishment of results, efficiently and effectively. 6. Cope with Uncertainty and Change: The business environ is dynamic and expects the organisations to be ever prepared for a new wave of science or innovation to hit them. New products emerge, innovations come up and new regulations are passed and so on. The organisation needs to keep a watchful eye on such developments and respond intelligently. A control system helps in checking whether the diversified product lines are giving healthy margins, the sales from each region are improving, the products are accepted in the market place or not. Constant monitoring of key areas helps management encash opportunities that are thrown open from time to time. Timely actions can also be initiated to prevent mistakes from becoming serious threats. 31  Co-ordination The concept of Co-ordination is viewed as one of the important functions of management. If every level in an organisation works independent of each other it will lead to a mess. With specialised jobs, it does not enable an organisation to attain the desired result. An organisation is not a one man army which can plan, execute and achieve everything alone. When it comes to organisational units, Co ordination becomes necessary. Co-ordination is the management of interdependence in work situations; it is the orderly synchronization or fitting together of the inter-dependent efforts of individuals, in order to attain a common goal. For example, in a ballet performance, all the efforts of team must be well coordinated, right from the first to the last lady in the row. This makes it worth the watch. Similarly, in a contemporary enterprise, which consists of a number of departments, such as production, purchase, sales, finance and personnel etc., there is need for all of them to properly time their mutually supporting activities and to ably reunite the sub–divided work. Lack of proper Co-ordination results in inefficient operations and waste of time. To coordinate is to keep expenditure proportionate to financial resources, equipment and tools to production needs, stocks to rate of consumption, sales to production and so on. It is to build the project perfectly without flaws, neither too broad nor too narrow a road it is in brief a word to accord things and actions their rightful proportions and to adapt means to ends. Figure: Co-ordination Types of Co-ordination Co-ordination can be broadly classified into one of the following four types: 1. Internal Co-ordination: Co-ordination among the employees of the same department or section, among workers and managers at different levels, among branch offices, plants and departments and sections is called internal Co-ordination. 32  2. External Co-ordination: Co-ordination with customers, suppliers, government and outsiders with whom the enterprise has business connections is called external Co-ordination. 3. Vertical Co-ordination: Vertical Co-ordination is what exists in a department where the departmental head is called upon to coordinate the activities of all those placed below him. 4. Horizontal Co-ordination: Horizontal Co-ordination takes place sideways. It exists between different departments such as production, sales, purchasing, finance, personnel etc. Definition of Directing In the words of Urwick and Brech, “directing is the guidance, the inspiration, the leadership of those men and women that constitutes the real core of the responsibility of management.” According to Haiman, “Directing consists of a process or technique by which instruction can be issued and operations can be carried out as originally planned.” Broadly, the process of directing involves the following elements: Issuing orders and instructions to the subordinates regarding the work being performed by them. Guiding, counselling and educating the subordinates and telling them the way of doing the given job. Supervising the work being performed by them on the regular basis to ensure that they have been working according to the plan. Maintaining and inspiring the subordinates for following given orders and instructions and working in the given direction. Leadership Definition and Meaning of Leadership “Leadership is a process of giving purpose (meaningful direction) to collective effort and causing willing effort to be expended to achieve purpose.” (Jacobs and Jaques) “Leadership is the process of influencing the activities of an individual or a group in efforts toward goal achievement in a given situation.” (Hersey and Blanchard) Leadership Styles : 33 Leadership style is the manner and approach of providing direction, implementing plans and motivating people. Kurt Lewin (1939) led a group of researchers to identify different styles of leadership. This early study has been very influential and established three major leadership styles. The three major styles of leadership are: 1. Authoritarian or autocratic 2. Participative democratic 3. Delegated or free reign Although good leaders use all three styles, with one of them normally dominant, bad leaders tend to stick with one style. 1. Authoritarian leadership This style is used when leaders tell their employees what they want done and how they want it accomplished, without getting the advice of their followers. Some of the appropriate conditions to use it include the times when you have all the information to solve the problem, you are short on time and your employees are well motivated. Some people are of the wrong opinion that using demeaning language and leading by threats and abusing their power will get the work done. This is not the authoritarian style, rather it is an abusive, unprofessional style called “bossing people around.” It has no place in a leader's repertoire. The authoritarian style should normally only be used on rare occasions. If you have the time and want to gain more commitment and motivation from your employees, then you should use the participative style. 2. Participative (democratic) This style involves the leader including one or more employees in the decision making process which is a heady combination of the suggestions the juniors give employing the leader‟s acumen). However, the leader maintains the final decision making authority. Using this style is not a sign of weakness; rather it is a sign of strength that your employees will respect. This is normally used when you have part of the information and your employees have other parts. Note that a leader is not expected to know everything - this is why you employ knowledgeable and skillful employees. Using this style is of mutual benefit - it allows them to become part of the team and allows you to make better decisions. 34 3.Delegative (free reign) In this style, the leader allows the employees to make the decisions. However, the leader is still responsible for the decisions that are made. This is used when employees are able to analyzes situations and determine what needs to be done and how to do it. A single person cannot do everything, so the leader must set priorities and delegate certain tasks. This is not a style to use so that the leader can blame others when things go wrong, rather this is a style to be used when he fully trust and confidence in the people below him. The leader should not be afraid to use it, however, use it wisely. Communication Definition of Communication The American Society of Training Directors states, „The interchange of thought or information to bring about mutual understanding and confidence or global human relation. ‟ Brown: 'Communication is the transmission and interchange of facts, ideas, feelings or course of action.‟ Alien Louis A: ‘Communication is the sum of all the things one person does when he wants to create understanding in the mind of another. It involves a systematic and continuous process of telling, listening and understanding‟ Types of Communication We can divide communication under three categories: 35 1. Oral/ verbal Communication Words Articulation 2. Written Communication Reports Illustrations Memos Telegrams Facsimiles (FAX) E-mails Tenders Letters Others 3. Non- verbal Body language Signs and symbols Territory /Zone Object language. 1. Verbal/Oral Communication: Anything spoken by mouth is oral communication. Whatever is uttered from the mouth contains words and manner of pronouncing words. The manner of pronouncing words is called as articulation. Words both connote and denote meaning. 2. Written Communication: Written communication takes on a number of forms. It is the most formal of all types of communication. It is also the safest as it leaves little space for miscommunication. Although the manner and style may change according to typical manner of company. It is also bound by the dictates of the organisation. 3. Non Verbal Communication: This is an important part of communication. The medium of communication other than oral and written communication is non-verbal communications. Non-verbal communication includes the way an individual positions himself holds his hands, tilts his head, etc. Even the sender in 36  this case maybe as clueless about his behaviour as the receiver. It is sometimes a natural behaviour. A receiver observes non-verbal communication 55% of the time. Effective and simultaneous use of oral and non-verbal communication is the most effective method of communication. Non-verbal communication may include the gestures, postures, signs, etc. Communication Process The main components of communication process are as follows: 1. Context: Communication is affected by various factors one of them being the context in which it takes place. This context may be physical, social, chronological or cultural. Every communication ensues within context. The sender chooses the message to communicate within a context. 2. Sender / Encoder: Sender / Encoder are a person who sends the message. A sender makes use of symbols (words or graphic or visual aids) to convey the message and produce the required response. 3. Message: Message is a key idea that the sender wants to communicate. It is a sign that elicits the response of recipient. Communication process begins with deciding about the message to be conveyed. Medium: Medium is a means used to exchange / transmit the message. The sender must choose an appropriate medium for transmitting the message else the message might not be conveyed to the desired recipients. 4. Recipient / Decoder: Recipient / Decoder are a person for whom the message is intended / aimed / targeted. 37  5. Feedback: Feedback is the main component of communication process as it permits the sender to analyse the efficacy of the message. Communication, Motivation and Leadership Meaning and Definition of Motivation The term motivation has been defined by management authors as “a general inspirational process which gets the members of the team to pull their weight effectively, to give their loyalty to the group, to carry out properly the tasks that they accepted and generally to play an effective part in the job that the group has undertaken”-Brech. “Any emotion or desire which so conditions one‟s will that the individual is propelled in to action.” Stanley Vence. “The complex of forces starting and keeping a person at work in an organisation”: Robert‟s Encyclopaedia of Management Theories of Motivation 1. Abraham Maslows -Hierarchy of needs- (refer to page number 13 for detailed explanation) 2. Herzberg's Two-Factor Theory 2.Herzberg's Two-Factor Theory Is the brainchild of Frederick Herzberg. This is a type of motivation theory based on content motivation. It is a theory which motivates individual by means of finding and satisfying of individual requirements, desires and further works to satisfy individual expectations. According to Frederick Herzberg, who studied clinical psychology in Pittsburgh, believed that the theory is related to work which motivates several employees. The theory was published under Motivation to Work during the year 1959. 38 This theory is based upon notion that motivation can be split into hygiene factors and motivation factors. He concluded that there were two types of motivation: ∙ Hygiene factor Motivation Factors Hygiene factor shows dissatisfaction level which is the real creators of job satisfaction which covers: Supervision Interpersonal relations Physical working conditions Salary Motivation Factors will cover motivation aspect in case of Job which includes: Achievement Advancement Recognition Responsibility Such factors are basically the requirements that will avoid nasty goings-on and uneasiness while motivational scale is the requirement for personal development. ******************************************END ************************** 39