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Unit-6: Organising Lesson 1: Nature, Purpose, Structure, Process and Logic


of Organising, Organisational Level and the Span of Management Now
answer Below question. Essay type questions 1. Briefly discuss the nature
and purpose of organising. 2. How would you distinguish between formal
and informal organisation? 3. What do you mean by structure and process
of organising? Can you explain the logic of organising? 4. Do you think
there is any relationship between organisational levels and span of
management? 5. What do you mean by effective span? Briefly discuss the
factors determining an effective span.

1. Nature and Purpose of Organising: Organising is a critical function of


management that involves the arrangement of resources, people, and
activities in a coordinated manner to achieve the organisational
goals. The nature of organising can be characterized as an ongoing,
dynamic process that involves identifying and grouping activities,
delegating authority, assigning responsibilities, and establishing
relationships. The purpose of organising is to create a framework that
supports effective communication, collaboration, and efficient use of
resources.
2. Formal and Informal Organisation: Formal organisation refers to the
structured arrangement of activities and people based on the
organisational goals, policies, and procedures. It includes a clear
hierarchy of authority, well-defined roles and responsibilities, and
formal communication channels. On the other hand, informal
organisation refers to the social network that develops spontaneously
among employees outside the formal organisational structure. It
includes informal communication, social groups, and personal
relationships.
3. Structure and Process of Organising and Logic of Organising: The
structure of organising involves the arrangement of activities, people,
and resources into a formal framework that supports the
achievement of organisational goals. It includes the hierarchy of
authority, job design, and the allocation of resources. The process of
organising involves the steps taken to establish the organisational
structure, including delegation of authority, job analysis, and the
establishment of policies and procedures. The logic of organising is
to create an efficient and effective structure that supports the
achievement of organisational goals by facilitating communication,
coordination, and control.
4. Relationship between Organisational Levels and Span of
Management: The organisational level refers to the level of the
hierarchy at which decisions are made. The span of management
refers to the number of subordinates that a manager can effectively
supervise. There is a direct relationship between organisational levels
and the span of management. As the number of organisational levels
increases, the span of management decreases. This is because there
are more layers of hierarchy, which increases the distance between
the top and bottom of the organisation.
5. Effective Span and Factors Determining it: Effective span refers to the
optimal number of subordinates that a manager can effectively
supervise. The factors that determine an effective span include the
nature of the work, the complexity of the tasks, the degree of
standardisation, the level of employee training and experience, and
the quality of communication systems. An effective span can vary
depending on these factors, and managers must assess and adjust
the span accordingly to ensure efficient and effective performance.
Essay type questions 1. What is departmentation? Identify the basic
organisation units. 2. Discuss the chief means of departmentation. 3. What
is your idea about departmentation by process? How does it work? 4. What
do you understand by matrix departmentation? Elaborate on the problems
that can affect matrix departmentation.

1. Departmentation and Basic Organisational Units: Departmentation


refers to the process of grouping activities and resources into
functional units to facilitate the achievement of organisational goals.
The basic organisational units include functional departments,
product or service departments, geographic departments, customer
departments, and process departments.
2. Chief Means of Departmentation: The chief means of
departmentation include functional departmentation, product or
service departmentation, geographic departmentation, customer
departmentation, and process departmentation. Functional
departmentation groups activities based on functional expertise, such
as finance, marketing, operations, and human resources. Product or
service departmentation groups activities based on products or
services, such as a product line or a specific service. Geographic
departmentation groups activities based on geographic locations,
such as regional offices or international divisions. Customer
departmentation groups activities based on customer needs, such as
consumer or business customers. Process departmentation groups
activities based on the specific processes involved in producing a
product or service.
3. Departmentation by Process: Departmentation by process involves
grouping activities based on the specific processes involved in
producing a product or service. This approach is useful when a
product or service requires a complex set of interrelated processes
that must be coordinated to achieve the desired outcome. For
example, a manufacturing company may use process
departmentation to group activities involved in the production
process, such as casting, machining, assembly, and finishing. This
approach helps to ensure that each step in the process is performed
efficiently and effectively.
4. Matrix Departmentation and Problems: Matrix departmentation
involves a dual reporting system in which employees report to both a
functional manager and a project or product manager. This approach
is useful when there is a need for cross-functional collaboration and
coordination, such as in research and development or new product
development. However, matrix departmentation can create several
problems, such as role ambiguity, conflicting priorities, and
communication breakdowns. Employees may struggle to balance the
demands of multiple managers, and conflicts may arise between
functional and project managers over resource allocation and
priorities. To minimize these problems, organizations must establish
clear roles and responsibilities, effective communication channels,
and mechanisms for conflict resolution.

Essay type questions 1. How would you distinguish between authority and
power? 2. Discuss the various sources of power with examples. 3. What do
you understand by line and staff concepts? Discuss the nature of line and
staff relationship. 4. What is functional authority? How can it be delegated?

1. Authority vs Power: Authority refers to the legitimate right to make


decisions and give orders, based on the position or role within the
organization. It is vested in the position rather than the individual.
Power, on the other hand, refers to the ability to influence the
behavior of others, regardless of the position or role. Power can be
based on personal characteristics, expertise, social networks, or
access to resources.
2. Sources of Power: The various sources of power include legitimate
power, reward power, coercive power, expert power, referent power,
information power, and connection power. Legitimate power is based
on the position or role within the organization, such as a CEO or a
manager. Reward power is based on the ability to give rewards, such
as bonuses or promotions. Coercive power is based on the ability to
punish, such as demotions or termination. Expert power is based on
expertise and knowledge, such as a specialist in a particular field.
Referent power is based on admiration and respect, such as a
charismatic leader. Information power is based on access to
important information. Connection power is based on social networks
and relationships, such as a person with influential contacts.
3. Line and Staff Concepts and Relationship: The line and staff concepts
refer to the two types of functional authority within an organization.
The line refers to the direct chain of command that is responsible for
achieving the primary objectives of the organization. Staff, on the
other hand, refers to the support functions that assist the line in
achieving its objectives. The nature of the line and staff relationship is
one of interdependence, where the staff provides support and advice
to the line, while the line provides direction and resources to the staff.
The line has the ultimate authority, while the staff has functional
authority.
4. Functional Authority and Delegation: Functional authority refers to
the authority to make decisions and give orders within a specific
functional area or activity. It is derived from the line authority and is
used to ensure that a particular function or activity is carried out
effectively. Functional authority can be delegated to employees
within the functional area, such as a supervisor or a team leader. To
delegate functional authority, the manager must clearly define the
scope of the authority, the responsibilities and limitations, and the
reporting requirements. The delegated authority must be
accompanied by the necessary resources and support to ensure that
the delegated function or activity is carried out effectively.

Essay type questions 1. What is your idea about delegation? How is


authority delegated? 2. How can clarity of delegation of authority be
ensured? 3. In short, discuss the principles of delegation of authority. 4.
What are the guides for overcoming weak delegation? 5. What factors are
to be considered in determining the degree of decentralisation of
authority? 6. Differentiate between decentralisation and participative
management. How can the desired degree of decentralisation be obtained?
8. Do you think that a proper balance in decentralisation can be
maintained? Explain.

1. Delegation and Authority: Delegation is the process of assigning


responsibility and authority to another person to carry out a specific
task or activity. Authority can be delegated by the manager to the
subordinate, based on the level of responsibility and decision-making
required for the task. Delegation involves assigning the task,
providing the necessary resources and support, setting expectations,
and monitoring the progress.
2. Clarity of Delegation: To ensure clarity of delegation, the manager
must clearly define the scope of authority, the responsibilities, and
limitations of the delegated task, the desired outcomes, and the
reporting requirements. The manager must also ensure that the
delegated authority is within the competence and capability of the
subordinate.
3. Principles of Delegation: The principles of delegation include the
identification of the task, selection of the right person for the task,
clear definition of the authority and responsibilities, establishment of
goals and objectives, provision of resources and support, setting of
performance standards, monitoring of progress, and feedback and
evaluation.
4. Overcoming Weak Delegation: The guides for overcoming weak
delegation include proper identification of the task, clear definition of
the authority and responsibilities, selection of the right person,
setting of expectations and standards, provision of resources and
support, monitoring and feedback, and evaluation of performance.
5. Factors in Decentralisation: The factors to be considered in
determining the degree of decentralisation of authority include the
size and complexity of the organization, the nature of the tasks and
activities, the competence and capability of the subordinates, the
availability of resources, the culture and values of the organization,
and the external environment.
6. Decentralisation vs Participative Management: Decentralisation refers
to the distribution of authority and decision-making to the lower
levels of the organization, while participative management refers to
involving the employees in the decision-making process. The desired
degree of decentralisation can be obtained by defining the level of
authority and responsibility, establishing the decision-making
process, providing the necessary resources and support, and
monitoring the progress.
7. Maintaining Balance in Decentralisation: Maintaining a proper
balance in decentralisation requires the manager to consider the
advantages and disadvantages of decentralisation, the level of
control required, the nature of the tasks and activities, the
competence and capability of the subordinates, and the external
environment. The manager must also establish clear communication
channels, provide support and resources, and monitor and evaluate
the performance of the subordinates.

CASE 6-1 RESTRUCTURING AT KOREA'S DAEWOO Daewoo was founded in


1967 by its hardworking, sentlessly driven chairman, Kim (surname) Woo-
Chong. After its initial success in exporting textiles, be company expanded
into trade, autos, machinery, consumer electronics, construction, heavy
shipping, computers, telephones, and financial services, becoming Korea's
fourth largest business group. The company became, for example, a textile
supplier for Sears, Cristian Dior, Calvin Klein, and London Fog. Daewoo also
engaged in a joint venture with General Motors to build the Le Mans car.
However, labor and their problems limited the car shipments. Chairman
Kim's philosophy of hard work and to value placed in people were
important factors in firm's success. However, in the late 1980s and early
1990s, the company faced several problems. for the, Kim was concerned
that with the increasing prosperity of Koreans, the work force might lose
the spirit of hard work. Moreover, there was a growing discontent among
the younger workers and a lessening of convention. Through Kim's hands-
off approach to manage some of the companies in the Daewoo business
went out of control. For example, in the unfitable heavy shipping industry,
he noticed many necessary expenses. The elimination of company
sponsored barbershops saved the company $8 million year. In general,
Daewoo's work force is young and educated. In contrast to similar positions
in many Korean companies, top positions at Daewoo are supplied by
managers with no family ties. Although Daewoo is a manor company with
its 91,000 employees, it is not dominant in any one industry. The strategy of
being a supplier for major foreign companies, such as Caterpillar, General
Motors, and Boeing, may have led to bypassing opportunities for becoming
a major marketer of its own brands. Now, in the 1990s, Kim is also looking
at opportunities in Europe; for example, he formed a joint venture with a
distribution company in France. The massive restructuring has already had
some positive effects. Kim sold some steel, financial, and real estate units.
The hands-off managerial style has been replaced by a hands-on style,
resulting in recentralization. Managers were "retired" or otherwise let go.
Thousands of positions were also eliminated. Things were looking better in
1991. The company lost money in 1988 and 1989 but made some profit in
1990 partly because of the sale of some major assets. The joint venture with
GM registered a healthy growth. The company was also optimistic about
the future of the new compact car Espero. Still, in the early 1990s, Daewoo
has had to cope with the strong Korean currency, its labor costs, Japanese
competition, and recessions in various countries in which it operates.
Questions 1. What are the advantages and disadvantages of a hands-off,
decentralized management approach? 2. How can Daewoo stay competitive
with the Japanese? 3. What are some of the controllable and uncontrollable
factors in this case? How should Mr. Kim respond to those factors?

1. Advantages of a hands-off, decentralized management approach


include allowing for more flexibility and creativity among employees,
quicker decision-making processes, and the ability to delegate tasks
and responsibilities effectively. This approach also allows for better
use of local knowledge and expertise, which can lead to more
effective operations in specific regions or markets. However, a hands-
off approach can also result in lack of consistency in decision-making
and communication, leading to confusion and potential conflicts
among departments or units. In addition, it can lead to issues with
accountability and responsibility, as employees may not feel as
though they have clear guidance or support from their superiors.
2. To stay competitive with the Japanese, Daewoo may need to focus on
improving quality control, developing more innovative products, and
investing in research and development. They may also need to
explore new markets or partnerships to expand their reach and
customer base. Additionally, they could consider implementing lean
manufacturing principles to streamline their operations and reduce
costs.
3. Some controllable factors in this case include management style,
company strategy, and employee productivity. Mr. Kim can respond
to these factors by implementing more effective management
practices, such as centralized decision-making and performance
evaluations, to ensure that the company is operating efficiently and
effectively. He can also consider revising the company's strategy to
focus on developing and marketing their own brands, rather than
solely being a supplier for other companies.
Uncontrollable factors in this case include fluctuations in currency exchange
rates, changes in consumer preferences, and economic conditions in
various markets. To respond to these factors, Mr. Kim may need to
implement risk management strategies, such as diversifying the company's
operations and investing in multiple markets, to mitigate potential losses
from external factors beyond their control.
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Staffing and Planning.

Unit-7 : Staffing Lesson 1: Nature of Staffing Function, Human Resource


Planning, Systems Approach to Staffing Essay type questions 1. What do
you understand by staffing? Discuss in brief the nature of staffing function.
2. What is Human Resource Planning? Discuss the Systems Approach to
Planning with the help of a diagram. 3. How would you (a) assess the
current needs and (b) forecast future needs of employees.

1. Staffing refers to the process of acquiring, deploying, and retaining a


workforce that is capable of achieving organizational objectives. The
nature of the staffing function is complex and multidimensional. It
involves identifying the requirements of the organization, sourcing
the right candidates, assessing their capabilities, and providing them
with the necessary training and development opportunities to ensure
their continued growth and success within the organization.

Staffing is a continuous process that is critical to the success of an


organization. It involves managing the recruitment, selection, deployment,
and development of employees. The nature of staffing is dynamic, and it
requires a proactive approach to stay ahead of the competition. Staffing
involves a range of activities, including job analysis, human resource
planning, recruitment, selection, training, and development.

2. Human Resource Planning (HRP) is the process of forecasting an


organization's future human resource needs and developing plans to
meet those needs. It involves determining the number of employees
needed, their skills and abilities, and the timing of their recruitment
and deployment. The systems approach to planning is a systematic
and structured approach to HRP that involves the following steps:

Step 1: Environmental scanning: This involves scanning the internal and


external environments to identify the factors that will impact the
organization's staffing needs.

Step 2: Organizational analysis: This involves analyzing the organization's


goals, structure, culture, and resources to determine its staffing
requirements.

Step 3: Job analysis: This involves analyzing the requirements of each job to
determine the skills, knowledge, and abilities required for successful job
performance.

Step 4: HR inventory: This involves conducting an inventory of the


organization's current human resources, including their skills, knowledge,
and abilities.

Step 5: Forecasting HR demand: This involves forecasting the organization's


future staffing needs based on its strategic plans, growth projections, and
environmental factors.

Step 6: Forecasting HR supply: This involves forecasting the availability of


human resources, including internal and external sources of recruitment.

Step 7: Gap analysis: This involves comparing the forecasted demand and
supply of human resources to identify any gaps and develop plans to
address them.

Step 8: Action planning: This involves developing plans to address the gaps
identified in the gap analysis, including recruitment, training, and
development plans.

3. (a) To assess the current needs of employees, the following steps can
be taken:

Step 1: Conduct a job analysis to determine the requirements of each job in


the organization.
Step 2: Review the organization's strategic plan and goals to determine the
skills and abilities required to achieve them.

Step 3: Conduct a workforce analysis to determine the current skills and


abilities of the workforce.

Step 4: Review the performance of each employee to determine their


strengths and weaknesses.

(b) To forecast future needs of employees, the following steps can be taken:

Step 1: Conduct an environmental scan to identify the factors that will


impact the organization's future staffing needs.

Step 2: Conduct a workforce analysis to determine the skills and abilities


that will be required in the future.

Step 3: Review the organization's strategic plan and goals to determine the
skills and abilities required to achieve them.

Step 4: Forecast the organization's future staffing needs based on its


growth projections, strategic plans, and environmental factors.

Essay type questions 1. What do you understand by recruitment? How


would you distinguish it from selection? Describe the procedure of
selection. 2. What are the devices of selection? Can you tell us when an
upper-level managerial position should be filled up by promoting someone
from within? 3. When should managers be hired from outside the
organisation? Why is manager selection considered important? 4. What do
you understand by job design? Discuss in brief the procedure of manager
selection used in our country.

1. Recruitment refers to the process of identifying and attracting


potential candidates to apply for job vacancies within an
organization. It involves creating job descriptions, advertising
vacancies, and receiving applications. Selection, on the other hand, is
the process of choosing the most suitable candidate from the pool of
applicants. It involves screening, testing, and interviewing candidates
to determine their suitability for the job. The procedure of selection
typically includes the following steps:

Step 1: Application screening - Reviewing resumes and application forms to


determine the most suitable candidates.

Step 2: Preliminary interview - Conducting a brief interview to determine


the candidate's suitability for the job.

Step 3: Employment tests - Administering tests to evaluate the candidate's


skills, knowledge, and abilities.

Step 4: In-depth interview - Conducting a more detailed interview to


evaluate the candidate's fit with the job and organization.

Step 5: Reference checks - Contacting the candidate's references to gather


information about their work history and performance.

Step 6: Job offer - Making a job offer to the most suitable candidate.

2. The devices of selection include various techniques used to assess a


candidate's suitability for a job, such as employment tests, interviews,
and reference checks. An upper-level managerial position should be
filled up by promoting someone from within if the candidate has the
required skills, knowledge, and experience to perform the job
effectively. This approach can be beneficial as it provides an
opportunity for career growth and development for existing
employees, and it also ensures continuity and stability within the
organization. However, if a suitable candidate is not available from
within the organization, external hiring may be necessary.
3. Managers should be hired from outside the organization when the
required skills, knowledge, and experience are not available within
the organization. External hiring can bring in fresh perspectives, new
ideas, and specialized expertise that may not be available within the
organization. Manager selection is considered important as it directly
impacts the success and performance of the organization. A good
manager can motivate and lead employees, manage resources
effectively, and achieve organizational goals.
4. Job design refers to the process of structuring jobs to meet the needs
of both the organization and employees. The procedure of manager
selection used in our country typically involves the following steps:

Step 1: Identify the requirements of the job - Determine the skills,


knowledge, and experience required for the job.

Step 2: Advertise the vacancy - Advertise the vacancy to attract potential


candidates.

Step 3: Application screening - Review resumes and application forms to


determine the most suitable candidates.

Step 4: Preliminary interview - Conduct a brief interview to determine the


candidate's suitability for the job.

Step 5: Employment tests - Administer tests to evaluate the candidate's


skills, knowledge, and abilities.

Step 6: In-depth interview - Conduct a more detailed interview to evaluate


the candidate's fit with the job and organization.

Step 7: Reference checks - Contact the candidate's references to gather


information about their work history and performance.

Step 8: Job offer - Make a job offer to the most suitable candidate.

Essay type questions 1. What do you understand by training? How can a


manager identify the training needs of employees? 2. Briefly discuss the
methods of training usually followed by managers to enhance the efficiency
of their employees. 3. Elaborate on the major formal management
development methods – both on- the-job and off-the-job.

1. Training refers to the process of teaching employees specific skills


and knowledge to perform their job more effectively. A manager can
identify the training needs of employees by analyzing job
requirements and comparing them to the employee's current skills
and performance. Feedback from supervisors, colleagues, and
customers can also help identify areas where employees need
training. Employee performance appraisals can provide valuable
insights into the training needs of employees.
2. Managers typically use various methods of training to enhance the
efficiency of their employees, such as:

On-the-job training: This involves training employees while they are


performing their job. This method can include coaching, mentoring, job
shadowing, and job rotation.

Off-the-job training: This involves training employees away from their


workplace. This method can include classroom training, workshops,
seminars, and conferences.

Computer-based training: This involves using computer-based tools such as


e-learning, video conferencing, and webinars to deliver training.

Simulation training: This involves using simulations to mimic real-life


scenarios that employees may encounter on the job.

3. The major formal management development methods include both


on-the-job and off-the-job methods. Some of these methods are:

On-the-job methods:

Coaching: In this method, a senior manager provides guidance, feedback,


and support to a junior manager.

Mentoring: In this method, a senior manager guides and advises a junior


manager on various aspects of the job.

Job rotation: This involves rotating an employee through different job roles
within the organization to develop their skills and knowledge.

Job enlargement: This involves adding new responsibilities to an


employee's current job to develop their skills and knowledge.

Off-the-job methods:
Classroom training: This involves attending formal training programs or
workshops conducted by external trainers or institutions.

Case studies: This involves analyzing real-life business scenarios and


discussing them in a group setting to develop problem-solving skills.

Role-playing: This involves practicing skills in a simulated environment to


develop communication and problem-solving skills.

Management games: This involves participating in simulated business


games to develop strategic thinking and decision-making skills.

In-basket exercise: This involves simulating a realistic work environment


and providing the employee with a set of tasks to complete to develop
their time management and prioritization skills.

Essay type questions 1. What do you mean by performance appraisal? How


is it important in management? 2. How would you distinguish between
formal and informal performance appraisal? Discuss the frequently used
approaches to formal systematic performance appraisal of employees. 3.
How can the appropriate method of appraising managers be identified?
Explain the importance of appraising performance of managers.

1. Performance appraisal refers to the process of evaluating an


employee's job performance and providing feedback. It is an essential
tool for management as it helps in identifying the strengths and
weaknesses of employees, providing them with feedback and
coaching to improve their performance, and making decisions
regarding promotions, transfers, and termination.
2. Formal performance appraisal is a structured process that involves
predefined standards, criteria, and methods of evaluation. Informal
performance appraisal, on the other hand, is a non-structured
process that involves feedback given spontaneously without any set
standards or criteria. Some frequently used approaches to formal
systematic performance appraisal include:

Graphic rating scales: This approach involves evaluating employees on a set


of predetermined criteria using a numerical or descriptive rating scale.
Behaviorally anchored rating scales (BARS): This approach combines the
advantages of a narrative description with the specific behaviors that define
performance.

Management by objectives (MBO): This approach involves setting specific


goals and objectives for employees and evaluating their performance based
on how well they achieve those goals.

360-degree feedback: This approach involves gathering feedback from


multiple sources, including supervisors, peers, subordinates, and customers,
to provide a more comprehensive evaluation of an employee's
performance.

3. The appropriate method of appraising managers can be identified by


considering the job requirements and the competencies necessary for
success in that role. The importance of appraising the performance of
managers lies in identifying areas where they need to improve and
providing them with feedback and coaching to enhance their skills
and knowledge. It also helps in making decisions regarding
promotions, transfers, and training and development opportunities
for managers. Additionally, it helps to ensure that managers are held
accountable for their performance and are aligned with the
organization's goals and objectives.

1. How would you define promotion? What are its types? Discuss each of
them in brief with its significance. 2. Do you think that a sound promotion
policy is necessary? Discuss the bases of promotion with their relative
merits and demerits. 3. What is transfer? What are its goals? 4. What is
demotion? Identify the circumstances under which demotion becomes
necessary.

1. Promotion refers to the advancement of an employee to a higher


position or job with increased responsibilities, authority, and salary.
There are three types of promotion:

Vertical promotion: It refers to the promotion of an employee to a higher-


level position within the same department or organization. It offers
employees an opportunity for career growth and development, as well as a
higher salary and better benefits.

Horizontal promotion: It refers to the promotion of an employee to a job


that is of the same level as their previous job but offers different
responsibilities and opportunities. It helps employees develop new skills
and experiences and provides opportunities for learning and growth.

Dry promotion: It refers to a promotion that offers no increase in salary or


benefits, but provides employees with additional responsibilities and job
duties. Its significance lies in the fact that it provides employees with
opportunities for development and growth within the organization.

2. Yes, a sound promotion policy is necessary as it helps in ensuring that


promotions are based on merit and not favoritism or nepotism. The
bases of promotion include seniority, merit, potential, and a
combination of these. The relative merits and demerits of each base
are as follows:

Seniority: It is based on the length of service of an employee in the


organization. The merit of this base is that it is objective and easy to
measure, and it rewards employees for their loyalty to the organization.
However, its demerit is that it may not always be fair, as seniority may not
reflect an employee's ability, potential, or contribution to the organization.

Merit: It is based on an employee's performance, abilities, and potential.


The merit of this base is that it rewards employees for their hard work and
contributions to the organization, and it helps in ensuring that the best
employees are promoted. However, its demerit is that it may be subjective
and open to bias, as performance evaluation can be influenced by factors
such as personal relationships, individual preferences, and prejudices.

Potential: It is based on an employee's ability to perform in a higher-level


position or job. The merit of this base is that it identifies employees who
have the potential to grow and develop within the organization and
rewards them accordingly. However, its demerit is that it may not always be
accurate, as potential assessment can be influenced by factors such as
personal bias and stereotyping.
3. Transfer refers to the movement of an employee from one job or
department to another within the same organization. The goals of
transfer include providing employees with new challenges and
opportunities for growth and development, meeting the
organization's staffing needs, and improving employee motivation
and job satisfaction.
4. Demotion refers to the reduction of an employee's job status, rank, or
pay level due to poor performance, misconduct, or a change in job
requirements. The circumstances under which demotion becomes
necessary include a decline in an employee's performance, inability to
perform job duties, violation of company policies, or changes in the
organization's structure or requirements. Demotion can be a difficult
and sensitive issue for employees and must be handled carefully by
management to minimize its negative impact on employee morale
and motivation.

CASE 7-1 WOMAN CEO MANAGES BY THE TEXTBOOK The demand for
managers with an international backgound is great. Consider Marisa
Bellisario, one of the most sought-after executives in Europe in 1984. She
was the first woman to head a major industrial firm in Italy, the state-
controlled ITALTEL Societa Italiana. This company is the biggest Italian firm
making telecommunications equipment. Bellisario's background, however,
is international. After receiving her degree in economics and business
administration from Turin University, she worked at Olivetti in the
electronics division. When Olivetti sold its data processing unit to General
Electric, she spent time in Miami working on GE's worldwide marketing
strategy for computers. She left GE to head corporate planning at Olivetti.
As the CEO at ITALTEL, she turned the company around, showing a small
profit. (The firm had experienced huge losses in the past). Her managerial
approach has been characterized as "straight out of the textbook", and
companies such as GTE Corporation, IBM, AT &T, and other European and
Japanese firms are interested in recruiting her. 1. Why was Ms. Bellisario a
much-sought-after CEOP? What was her career path? 2. What special
problems may she have encountered as a woman heading a major
company in Italy? 3. If she was successful managing by the textbook why do
some managers still think that management cannot be taught?

1. Ms. Bellisario was a much-sought-after CEO because of her


international background and successful track record in turning
around a major industrial firm in Italy, ITALTEL. Her career path
included working at Olivetti in the electronics division, then General
Electric in Miami on worldwide marketing strategy for computers, and
then heading corporate planning at Olivetti before becoming CEO at
ITALTEL. Her diverse experience and proven success in different roles
and companies made her an attractive candidate for companies
seeking international executives.
2. As a woman heading a major company in Italy, Ms. Bellisario may
have encountered special problems such as gender bias and
stereotypes that may have hindered her career advancement or
caused her to be underestimated. She may have also faced
challenges in managing a predominantly male workforce in a
traditionally patriarchal society. However, her success in turning
around ITALTEL and her managerial approach being characterized as
"straight out of the textbook" suggest that she was able to overcome
these challenges.
3. Despite Ms. Bellisario's success in managing by the textbook, some
managers still think that management cannot be taught because they
believe that effective management requires innate qualities or skills
that cannot be acquired through education or training. However, this
view is becoming less common as evidence shows that management
education and training can enhance managerial skills and
effectiveness. Ms. Bellisario's success and her appeal to companies
seeking international executives suggest that her management skills
were valued and recognized by others in the business world.
Management and Motivation Factors

Unit-8 : Human Factors in Management and Motivation


Lesson 1: Human Factors in Management, Motivation, Motivation Process, Motivators, Motivating
and Satisfaction

1. How would you describe the human factors that affect management?
2. What do you mean by motivation? Explain the motivation process with the
help of a diagram.
3. Can you distinguish between motivation, motivator and motivating?
4. What is satisfaction? Describe the need-want-satisfaction chain with the help of a diagram.

Human factors that affect management include the behavior, attitudes, beliefs, and values of
individuals within an organization. This can include factors such as communication, decision-making,
leadership style, teamwork, and employee engagement. Effective management requires
understanding these factors and how they impact the overall success of the organization.

Motivation refers to the driving force or inner desire that compels an individual to take action
towards achieving a particular goal. The motivation process involves a series of steps that an
individual goes through in order to achieve a goal. These steps include recognizing a need or desire,
setting a goal, developing a plan, taking action, and achieving the goal.

A diagram of the motivation process can be represented as follows:

Need/Desire --> Goal Setting --> Planning --> Action --> Goal Achievement

Motivation refers to the driving force behind an individual's behavior, while motivators are the
factors that influence an individual's motivation. Motivating, on the other hand, refers to the act of
encouraging or inspiring someone to take action towards achieving a goal.

Satisfaction refers to the feeling of pleasure or contentment that an individual experiences as a


result of achieving a particular goal or need. The need-want-satisfaction chain refers to the process
by which an individual's needs are transformed into wants, and then ultimately into satisfaction. This
chain involves three stages:

Need: The first stage is recognizing a need or desire, which can be physical, social, or psychological in
nature.
Want: The second stage is the desire to fulfill that need or desire, which can be influenced by various
factors such as culture, values, and beliefs.
Satisfaction: The third stage is the feeling of pleasure or contentment that an individual experiences
as a result of fulfilling their need or desire.
A diagram of the need-want-satisfaction chain can be represented as follows:
Need --> Want --> Satisfaction

1. Explain the assumptions about motivation


2. What are the assumptions about people under Theory X and theory Y?
3. How would you clarify the assumptions of Theory X and Theory Y?

The assumptions about motivation are the underlying beliefs and ideas that guide the study and
practice of motivation. These assumptions include:
Motivation is a driving force that energizes behavior and directs it towards a particular goal.
Motivation is influenced by both internal and external factors, such as needs, values, rewards, and
feedback.
Motivation is a dynamic process that changes over time, and is influenced by a variety of factors
such as experience, environment, and personal goals.
Theory X and Theory Y are two contrasting assumptions about human nature and behavior in the
workplace. Under Theory X, people are assumed to be lazy, lack motivation, and need to be
controlled and directed through punishment and reward. Under Theory Y, people are assumed to be
self-motivated, creative, and seek opportunities for growth and development.

The assumptions of Theory X and Theory Y can be clarified as follows:

Theory X assumes that people are inherently lazy and require strict control and direction to motivate
them to work. This assumption sees punishment and reward as the primary motivators, and
assumes that people lack ambition and creativity.
Theory Y assumes that people are inherently motivated and seek opportunities for growth and
development. This assumption sees empowerment and participation as the primary motivators, and
assumes that people have the potential to be creative and innovative.
In summary, Theory X is based on a negative view of human nature, while Theory Y is based on a
positive view. The assumptions of each theory can have a significant impact on how managers
approach motivation and leadership in the workplace.

1. Name the need theories of motivation. Elaborate with critical appreciation


Maslow's Hierarchy of Needs theory.
2. Critically discuss McClelland's Need Theory of Motivation
3. What do you understand by the "Two-factor (Motivation-Hygience) Theory of Motivation"?
4. What do you mean by "Expectancy Theory"? Critically discuss the "Porter
and Lawler Model" based on Expectancy Theory.
5. Write a critical appreciation of the "Equity Theory" developed by J. Stacy
Adams.
6. What do you understand by the "Reinforcement Theory of Motivation"?
7. Do you agree that motivation and commitment are higher when employees
participate in the setting of goals? Discuss.
8. Name the different theories of motivation. Discuss the one which you consider most suitable for
motivating our managers.

The need theories of motivation include Maslow's Hierarchy of Needs theory, Alderfer's ERG theory,
and Herzberg's Two-Factor theory.
Maslow's Hierarchy of Needs theory proposes that human needs are arranged in a hierarchical
order, and that people are motivated to fulfill their needs in a particular sequence. The five levels of
needs in Maslow's hierarchy are physiological, safety, belongingness and love, esteem, and self-
actualization.

Critically, the theory has been questioned for its universal application, as research has shown that
the hierarchy of needs may differ across cultures and individuals. Additionally, the theory has been
criticized for its lack of empirical evidence and its oversimplification of human needs.

McClelland's Need Theory of Motivation proposes that people are motivated by three primary
needs: achievement, affiliation, and power. Achievement-driven individuals seek to excel and
achieve challenging goals, while affiliation-driven individuals seek to build positive relationships with
others. Power-driven individuals seek to influence and control others.
Critically, the theory has been praised for its empirical support and its ability to explain individual
differences in motivation. However, the theory has been criticized for its oversimplification of
human needs and its failure to account for other important factors that influence motivation, such
as personality traits and situational factors.

The Two-factor (Motivation-Hygiene) Theory of Motivation, proposed by Herzberg, suggests that


there are two types of factors that influence job satisfaction and motivation. Motivation factors,
such as recognition and achievement, are related to the job content and can lead to job satisfaction.
Hygiene factors, such as salary and working conditions, are related to the job context and can
prevent job dissatisfaction.
Critically, the theory has been praised for its practical application in the workplace and its ability to
identify key factors that influence job satisfaction and motivation. However, the theory has been
criticized for its oversimplification of job satisfaction and its lack of attention to individual
differences in motivation.

The Expectancy Theory proposes that motivation is based on an individual's beliefs about the
relationship between effort, performance, and outcomes. The Porter and Lawler Model, based on
Expectancy Theory, adds the idea of valence, which refers to an individual's preference for a
particular outcome.
Critically, the theory has been praised for its focus on individual perceptions and its ability to explain
individual differences in motivation. However, the theory has been criticized for its lack of attention
to social and cultural factors that may influence motivation.

The Equity Theory proposes that people are motivated by the perception of fairness in the
workplace. Individuals compare their inputs (e.g. effort, skills, experience) and outputs (e.g. salary,
recognition, benefits) to those of others, and if they perceive an inequity, they will be motivated to
restore balance.
Critically, the theory has been praised for its ability to explain how perceptions of fairness influence
motivation and behavior in the workplace. However, the theory has been criticized for its lack of
attention to individual differences in perceptions of fairness and its inability to account for the role
of power in the workplace.

The Reinforcement Theory of Motivation proposes that behavior is shaped by the consequences that
follow it. Positive reinforcement (e.g. rewards) and negative reinforcement (e.g. removing negative
consequences) increase the likelihood of behavior, while punishment decreases the likelihood of
behavior.
Critically, the theory has been praised for its practical application in the workplace and its ability to
shape behavior through rewards and consequences. However, the theory has been criticized for its
lack of attention to internal factors that influence motivation, such as needs and beliefs.

Research has shown that participation in goal-setting can increase motivation and commitment
among employees. When employees are involved in the goal-setting

8. Name the different theories of motivation. Discuss the one which you consider most suitable for
motivating our managers.

There are several different theories of motivation, including:

Maslow's Hierarchy of Needs theory


Herzberg's Two-Factor theory
McClelland's Need Theory of Motivation
Expectancy Theory
Equity Theory
Reinforcement Theory
The most suitable theory of motivation for motivating managers depends on the specific context of
the organization and the individual characteristics of the managers. However, one theory that has
gained widespread popularity in recent years is Self-Determination Theory (SDT).

Self-Determination Theory proposes that individuals are motivated by three basic psychological
needs: autonomy, competence, and relatedness. Autonomy refers to the need to feel in control of
one's own behavior and choices. Competence refers to the need to feel capable and effective in
one's actions. Relatedness refers to the need to feel connected and supported by others.

SDT suggests that individuals are more motivated when they feel their basic psychological needs are
being met, and that environments that support autonomy, competence, and relatedness are more
likely to foster motivation and well-being.

For managers, this theory suggests that providing opportunities for autonomy (such as decision-
making and creativity), fostering a sense of competence through feedback and training, and
promoting social connections and relationships in the workplace may enhance motivation and job
satisfaction.

Overall, Self-Determination Theory offers a holistic approach to motivation that recognizes the
importance of individual differences and the role of social and environmental factors in shaping
motivation and behavior.

1. Describe the special motivational techniques used for the purpose of


motivating employees.
2. What do you mean by monetary incentive? Which factors should a manager
remember in order to use money as an incentive?
3. Elaborate on the non-monetary motivational techniques that are suitable for
industrial workers in Bangladesh.

Special motivational techniques are designed to engage and motivate employees in unique ways.
Here are some examples:
Job Enrichment: This involves giving employees more responsibilities and opportunities for personal
and professional growth. It can include adding new tasks, expanding roles, and providing more
decision-making power.
Job Rotation: This technique involves moving employees through different jobs and departments to
expose them to a variety of experiences and challenges.
Flexibility: This involves offering flexible schedules or work arrangements, such as remote work or
compressed work weeks, to improve work-life balance and reduce stress.
Recognition and Rewards: This involves acknowledging and rewarding employees for their
achievements and contributions, such as through bonuses, awards, or public recognition.
Training and Development: This involves providing opportunities for employees to learn new skills
and knowledge, through workshops, conferences, or other professional development activities.
Employee Involvement: This involves involving employees in decision-making and problem-solving
processes, such as through employee suggestion programs or team-based problem-solving
initiatives.
A monetary incentive is a form of reward or compensation given to employees in the form of cash or
other financial benefits. Money can be a powerful motivator, but managers should keep the
following factors in mind when using money as an incentive:
Fairness: Employees should perceive that the incentives are fairly distributed based on their
performance.
Transparency: Employees should understand how the incentives are calculated and awarded.
Frequency: Incentives should be given regularly to maintain motivation and avoid a sense of
entitlement.
Size: The amount of the incentive should be large enough to be meaningful, but not so large that it
distorts the employee's behavior or creates resentment.
Alignment: Incentives should be aligned with the organization's goals and values, and encourage
behaviors that support those goals.
In Bangladesh, non-monetary motivational techniques may be more effective than monetary
incentives due to economic factors. Here are some non-monetary techniques that may be suitable
for industrial workers in Bangladesh:
Job security: Offering job security and stability can be a powerful motivator for workers in uncertain
economic conditions.
Opportunities for advancement: Providing opportunities for promotion and career advancement can
motivate employees to work harder and improve their skills.
Positive work environment: Creating a positive work environment through good management
practices, positive reinforcement, and open communication can improve job satisfaction and
motivate employees to perform better.
Flexibility: Offering flexible schedules, work arrangements, or other benefits can improve work-life
balance and reduce stress, which can improve motivation and job satisfaction.
Training and development: Providing opportunities for employees to learn new skills and knowledge
through training and development programs can improve job satisfaction and motivate employees
to improve their performance.

CASE 8-1
MANAGING THE HEWLETT-PACKARD WAY
William R. Hewlett and David Packard, two organisational leaders who
demonstrated a unique managerial style, began their operation with $538 in 1939,
in a one-car garage. Eventually they built a very successful company that now
produces more than 10,000 products, such as computers, peripheral equipment,
test and measuring instruments, and handheld calculators. Perhaps even better
known than its products is the distinct managerial style preached and practiced at
Hewlett-Packard (HP). It is known as the HP way.
The values of the founders - who withdrew from active management in
1978 - still permeate the organization. The HP way emphasizes honesty, a strong
belief in the value of people, and customer satisfaction. The managerial style also
emphasizes an open-door policy, which promotes team effort. Informality in
personal relationships is illustrated by the use of first names. Management by
objectives is supplemented by what is known as managing by wandering around.
By strolling through the organization, top managers keep in touch with what is
really going on in the company.
This informal organizational climate does not mean that the organization
structure has not changed. Indeed, the organizational changes in the 1980s in
response to environmental changes were quite painful. However, these changes
resulted in extraordinary company growth during the 1980s.
Questions
1. Is the Hewlett-Packard way of managing creating a climate in which employees are
motivated to contribute to the aims of the organization? What is unique abot the HP way?
2. Would the HP managerial style work in any organization? Why, or why not? What are the
conditions for such a style to work?

The Hewlett-Packard (HP) way of managing does create a climate in which employees are motivated
to contribute to the aims of the organization. The HP way emphasizes honesty, a strong belief in the
value of people, and customer satisfaction, which instills a sense of purpose and belonging among
employees. The open-door policy and emphasis on team effort also promote a collaborative and
supportive work environment. Additionally, the use of managing by wandering around allows top
managers to stay connected with the employees and the organization's day-to-day operations,
which helps to identify and address any issues and concerns that may arise. Overall, the HP way
promotes a culture of empowerment, trust, and accountability, which can be very motivating for
employees.
What is unique about the HP way is its focus on people and customer satisfaction. The founders of
HP believed that their success was not only dependent on their products but also on the people who
designed, manufactured, and sold them. They believed that by creating an environment in which
employees felt valued and empowered, they would be more motivated to perform at their best and
contribute to the success of the company.

The HP managerial style may not work in every organization, as its success depends on several
conditions. Firstly, the organization must have a culture that values honesty, collaboration, and
customer satisfaction. Secondly, the organization's leadership must be committed to the HP way and
lead by example. Thirdly, the organization must have a flat organizational structure that emphasizes
communication and teamwork. Finally, the organization must be willing to embrace change and
adapt to new challenges.
While the HP way may not work for every organization, it can be a highly effective management
approach in the right circumstances. Its emphasis on people and customer satisfaction can create a
highly motivated workforce and foster a culture of innovation and success.

Unit-9 : Leadership
Lesson 1 : Definition and Nature of Leadership, Qualities/ Ingredients of Leadership
Read and answer Below question
1. Define leadership and state the nature of leadership.
2. Describe in brief the qualities/ingredients of leadership.
3. What do you mean by leadership? Can you distinguish it from management?
Discuss the types of power a manager may have.

2/2

Leadership can be defined as the process of influencing and directing the behavior of people
towards the achievement of specific goals. The nature of leadership is multi-dimensional, dynamic,
and complex. It involves traits, behaviors, situational factors, and the relationship between leaders
and followers. Leadership is also goal-oriented, and its effectiveness is measured by the degree of
achievement of those goals.

The qualities/ingredients of leadership include:

Vision: the ability to see the big picture and create a compelling vision of the future.
Integrity: being honest, trustworthy, and ethical.
Decisiveness: the ability to make timely and effective decisions.
Empathy: the ability to understand and empathize with others.
Confidence: self-assurance and belief in one's abilities.
Communication skills: the ability to communicate effectively with others.
Creativity: the ability to think outside the box and come up with innovative solutions.
Flexibility: the ability to adapt to changing circumstances.
Emotional intelligence: the ability to manage one's emotions and the emotions of others.
Courage: the willingness to take risks and stand up for what is right.
Leadership is the process of influencing and directing the behavior of people towards the
achievement of specific goals, while management is the process of planning, organizing, and
controlling resources to achieve organizational goals. Leadership and management are
complementary, but distinct, functions. A manager may have different types of power, including:
Legitimate power: the power that comes from the position held by the manager.
Coercive power: the power to punish or withhold rewards.
Reward power: the power to give rewards or incentives.
Expert power: the power that comes from the manager's knowledge or expertise.
Referent power: the power that comes from the manager's personal characteristics, such as
charisma or likability.

1. Describe in short the various styles of management you have studied in this
lesson.
2. What are the styles of leadership based on authority? Discuss them in brief.
3. What do you understand by leadership continuum developed by Tanenbaum
and Schmidt? Give diagrammatic representation of the continuum.
4. Elaborate the leadership styles described by Blake and Mouton in Managerial
Grid. Which style is the best?
5. Discuss the systems of management suggested by Rensis Likert.
6. What do you understand by participative management? Why is it important?

The various styles of leadership/management that have been studied in this lesson are:
Autocratic/Authoritarian style
Democratic/Participative style
Laissez-faire/Free-rein style
The styles of leadership based on authority are:
Charismatic leadership: This is where the leader's personality and charisma inspire followers to
support their vision and mission.
Transformational leadership: This is where the leader motivates and inspires followers to go beyond
their self-interest for the sake of the organization.
Transactional leadership: This is where the leader provides rewards or punishments to motivate
followers to achieve the organization's goals.
The leadership continuum developed by Tanenbaum and Schmidt shows the range of leadership
styles from authoritative to participative. It consists of seven levels:
Tell: The leader makes the decision and communicates it to the team.
Sell: The leader makes the decision and tries to convince the team to accept it.
Consult: The leader consults with the team before making the decision.
Join: The leader joins the team to make the decision together.
Delegate: The leader delegates the decision-making authority to the team.
Abdicate: The leader leaves the decision entirely to the team.
Observe: The leader monitors the decision made by the team.
The leadership styles described by Blake and Mouton in Managerial Grid are:
Impoverished management: Low concern for people and production.
Country club management: High concern for people, low concern for production.
Authority-compliance management: High concern for production, low concern for people.
Middle-of-the-road management: Balancing concern for people and production.
Team management: High concern for people and production.
The best style is team management, as it balances both concern for people and production.

Rensis Likert suggested four systems of management:


Exploitative-authoritative: The manager uses fear and threats to control employees.
Benevolent-authoritative: The manager uses rewards to control employees.
Consultative: The manager consults with employees before making decisions.
Participative: The manager involves employees in decision-making and goal-setting.
Participative management is where managers involve employees in decision-making and goal-
setting. It is important because it increases employee motivation, commitment, and job satisfaction.
It also helps in problem-solving and decision-making by tapping into the collective knowledge and
experience of the employees.

1. Name the leadership theories you know of. Critically discuss the Trait
Theory of Leadership.
2. What are the Contingency Theories of Leadership? Discuss critically
Fiedler's Contingency Theory of Leadership.
3. Describe the Contingency Leadership Theory by Hersey and Blanchard.
Elaborate the three critical dimensions of the leadership situation that help
determine the most effective style of leadership.
4. Can you distinguish between Trait Theory and Contingency Theory of
Leadership?
5. What do you understand by LPC? Discuss the LPC approach described by
Fiedler in his Contingency Approach of Leadership.

The leadership theories include Trait Theory, Contingency Theories, Situational Theories,
Transformational Leadership Theory, Path-Goal Theory, and Leader-Member Exchange Theory. The
Trait Theory of Leadership proposes that leaders possess certain innate traits or characteristics that
distinguish them from non-leaders. These traits include intelligence, integrity, confidence, creativity,
and sociability. Critics argue that this theory overlooks situational factors and does not take into
account the role of followers in leadership.

The leadership styles based on authority include autocratic, democratic, and laissez-faire. In
autocratic leadership, the leader makes decisions without involving the subordinates. In democratic
leadership, the leader involves the subordinates in decision-making. In laissez-faire leadership, the
leader gives complete freedom to subordinates to make decisions.

The leadership continuum developed by Tanenbaum and Schmidt suggests that leadership styles
range from authoritarian to participative, with varying levels of involvement from subordinates. The
continuum includes seven leadership styles, ranging from telling to delegating. The diagrammatic
representation of the continuum shows the degree of authority used by the leader and the degree
of freedom available to the subordinates.
Trait Theory proposes that leaders possess certain innate traits that distinguish them from non-
leaders, while Contingency Theory argues that the effectiveness of a leader depends on the
situation. Trait Theory assumes that leaders are born, while Contingency Theory suggests that
leaders are made.

The Least Preferred Coworker (LPC) approach described by Fiedler in his Contingency Approach of
Leadership is a measure of leadership style. It involves asking the leader to think of the person they
least enjoyed working with and rate them on a scale of 1-8 based on how friendly or unfriendly they
were towards the leader. A high LPC score indicates a relationship-oriented leader, while a low LPC
score indicates a task-oriented leader. Fiedler argues that the effectiveness of a leader depends on
the match between their LPC score and the favorableness of the situation.

CASE 9-1
WHO ARE THE EFFECTIVE LEADERS?
In a search for effective leaders, 206 CEO respondents from Fortune 500 and
Service 500 companies identified as the three top leaders Don Petersen (No. 1) at
Ford, Lee Iacocca at Chrysler, and Jack Welch at General Electric. The
overwhelming majority of those questioned felt that there is no leadership crisis
in the United States. On the other hand, those holding another view pointed to the
ineffectiveness of managers in competing in the global market; the excessive
focus on short-term results, often at the expense of long-term company health;
and the lack of investment in plants.
About two-thirds of the respondents thought that leadership can be taught,
especially through job rotation, in-company training, and delegation of authority.
But there was also the realization that latent leadership qualities have to be the
foundation of leadership.
Althought not on the basis of the survey, Fortune identified the following
factors for successful business leadership:
• Trust in subordinates is the foundation for delegating authority. A manager gets
things done through people.
• Leaders must provide a vision for the enterprise and inspire others to commit
themselves to this vision.
• Leaders must take command in times of crisis. Even those who subscribe to
participative management realize that at critical times they have to take charge.
• Taking risks is a part of business - not careless risk, but calculated ones. Probably
those who have never failed (who played it safe) may not have managed well.
• Leaders need to be very competent in their fields and command the respect of
employees.
• A top executive surrounded by "yes-sayers" will get an incorrect view of what is
really going on within and outside the organization. Thus, executives should invite
dissenting views.
• Effective leaders see and understand the big picture. They simplify
complex situations and problems so that they can be understood.
Questions
1. Who were the leaders identified in the survey? Why do you think they have been
effective?
2. What were the leadership characteristics identified by Fortune? Do you agree with
the seven statements about the characteristics? Should other factors be taken into
account?
3. Do you think that leadership can be taught? Explain.
4. How do the leadership characteristics relate to the managerial functions?

The three top leaders identified in the survey were Don Petersen at Ford, Lee Iacocca at Chrysler,
and Jack Welch at General Electric. They were considered effective leaders because of their success
in their respective companies and industries. Petersen was recognized for turning around Ford's
financial performance, Iacocca for rescuing Chrysler from bankruptcy, and Welch for transforming
General Electric into a global corporation.

The leadership characteristics identified by Fortune are:

Trust in subordinates
Provide a vision for the enterprise
Take command in times of crisis
Taking calculated risks
Competence in their fields and respect of employees
Invite dissenting views
Understand the big picture and simplify complex situations
These characteristics are important for effective leadership, but other factors such as
communication skills, emotional intelligence, and adaptability should also be taken into account.

"Open sidebar
Committee Definition and Reasons.

Unit-10 : Committees and Group Decision Making


Lesson 1: Definition, Nature and Reasons for using Committees
1. Can you define committee? State the nature of committee.
2. What do you mean by committee? What are the reasons for using
committee?
3. What does committee mean? Why committees are used?

A committee is a group of individuals who are appointed or elected to perform a specific task or
function, often on a temporary basis. The nature of committees can vary depending on their
purpose and scope, but they typically involve a group of people working together to make decisions,
solve problems, or provide recommendations.

A committee is a group of people appointed or elected to perform a specific task or function. There
are several reasons for using committees, including:

To provide a forum for discussion and debate on important issues


To bring together individuals with different perspectives and expertise
To distribute workload and responsibility among a group of people
To increase participation and involvement in decision-making processes
To promote transparency and accountability in decision-making
A committee is a group of people appointed or elected to perform a specific task or function.
Committees are used for various reasons, including facilitating discussion and debate, bringing
together people with different perspectives and expertise, distributing workload and responsibility,
increasing participation and involvement in decision-making processes, and promoting transparency
and accountability.

1. What do you mean by a plural executive? Discuss the role of the plural
executive in both decision-making and execution of decisions.
2. Define plural executive. Can a board of directors be called a plural
executive?
3. How can committees be made successful? Explain the drawbacks/
disadvantages of committee.
4. What are the drawbacks of committee? What abuses are to be avoided in the
use of committee?

A plural executive is a form of government or organizational structure in which executive power is


shared among multiple individuals or entities rather than being concentrated in a single person or
office. In such a system, decision-making is typically a collaborative process involving the various
members of the executive group. The role of the plural executive is to both participate in the
decision-making process and to execute the decisions that are made.

A plural executive is a form of government or organizational structure in which executive power is


shared among multiple individuals or entities rather than being concentrated in a single person or
office. A board of directors can be considered a plural executive if it shares executive power and
decision-making authority among its members.

Committees can be made successful by:

Clearly defining the purpose, scope, and goals of the committee


Selecting members with diverse perspectives and expertise
Establishing clear roles and responsibilities for each member
Providing sufficient resources and support for the committee's work
Encouraging open communication and collaboration among members
Holding members accountable for their contributions and actions
The drawbacks/disadvantages of committees include:

Slow decision-making process due to the need for consensus building


Dominance of certain members or factions within the committee
Risk of groupthink or conformity bias
Lack of accountability and responsibility for the committee's decisions
Potential for conflicts of interest or bias among members
The drawbacks of committees include slow decision-making, dominance of certain members or
factions, risk of groupthink, lack of accountability, and potential conflicts of interest. Abuses to be
avoided in the use of committees include using them as a means of avoiding responsibility or
accountability, appointing members based on personal or political connections rather than
qualifications, and allowing committees to become overly bureaucratic or politicized.

CASE 10-1
COMMITTEE MANAGEMENT AT THE UNIVERSITY OF
CALIFORNIA
Many universities, notably the larger ones, operate extensively through
committee management, especially in the appointment and promotion of persons
to tenured associate and full professorships. One example of a university where
committees are extensively used in this area is the University of California (its
various campuses.)
For appointment or promotion to the position of associate professor or full
professor (each carries tenure), the University of California uses the following
steps:
• A candidate is reviewed thoroughly by the staffing committee of his or her
department or school.
• If the candidate passes there, the action is sent to the chairperson or dean for
review and then to the office of the executive Vice-Chancellor of the campus,
where it is referred to the campus budget and promotion committee.
• The budget and promotion committee immediately refers the case to a
specially appointed ad hoc committee of five faculty members, of whom only
one or two may be from the candidate's department or school.
• The ad hoc committee reviews the case and make a recommendation to the
budget and promotion committee.
• The budget and promotion committee reviews the case and makes
recommendations to the executive Vice-Chancellor and Chancellor of the
campus.
• The executive Vice-Chancellor and Chancellor review the case, and after this
review, the case is sent to the academic Vice President of the university with
recommendations.
The university's academic Vice President and President review the case and, if
their decision is favorable, send it with recommendations to the regents of the
university for final action.
Questions
1. How would you like to be reviewed for appointment or promotion by this
hierarchy of committees?
2. What strengths or weaknesses do you see in this procedure?
3. Assuming that you see certain weaknesses and perhaps dangers in this kind
of committee management, what do you suggest be done?

As an AI language model, I don't have personal preferences. However, I can assume that being
reviewed by a hierarchy of committees can be a lengthy and challenging process for candidates. The
process involves multiple levels of review, which can be time-consuming and stressful for the
candidate. Additionally, the candidate's fate lies in the hands of multiple committees, which could
increase the risk of bias or subjectivity.

The strengths of this procedure include the thorough review process and the involvement of various
committees with different perspectives. This approach can reduce the risk of bias and subjectivity in
decision-making. However, the weaknesses include the lengthy process and the potential for
bureaucracy, which could delay the appointment or promotion of a deserving candidate. Moreover,
the involvement of multiple committees can lead to unnecessary paperwork, which could be a waste
of time and resources.

To address the weaknesses of this procedure, the University of California could streamline the
process by reducing the number of committees involved in the appointment and promotion process.
They could also introduce technology-based solutions such as online application systems to reduce
paperwork and speed up the review process. Additionally, the University could include more
external members in the committees to reduce the risk of internal bias or subjectivity. The University
could also establish clear timelines for each committee's review process to reduce delays and ensure
that deserving candidates receive timely appointments and promotions.

Unit-11 : Communication in Organisations


Lesson 1: Definition, Process and Purpose of
Communication
1. Define communication. What conditions are necessary for communication to
take place?
2. Explain the communication process with the help of a diagram.
3. Elaborate on the purposes of communication?
4. How can communication relate an enterprise to its organisation? Write a note
on the role of communication in management.

Communication can be defined as the process of transmitting information, ideas, thoughts, or


feelings from one person to another, through a medium or channel. For communication to take
place, the following conditions are necessary: sender, receiver, message, medium, feedback, and
understanding. The sender must encode the message in a way that the receiver can understand, and
the receiver must decode the message accurately.

The communication process can be explained through the following diagram:

The sender encodes the message and sends it through a medium or channel. The receiver decodes
the message and provides feedback to the sender. The process involves the transmission of
information, ideas, thoughts, or feelings from one person to another.

The purposes of communication in an organization can be to:


Share information
Provide instructions
Express ideas or opinions
Build relationships
Resolve conflicts
Influence behavior or attitudes
Facilitate decision-making
Achieve organizational goals
Promote teamwork and collaboration
Communication can relate an enterprise to its organization by ensuring that all employees are aware
of the organization's vision, mission, goals, and objectives. Communication plays a crucial role in
management by providing a means of conveying information, instructions, and feedback. Effective
communication can enhance employee motivation, increase productivity, and promote job
satisfaction. Communication also helps in building strong relationships with employees, customers,
and stakeholders, which can contribute to the success of the organization.

1. What do you mean by flow of communication? Can you discuss the


directions in which communication flows?
2. Elaborate on the different forms of communication with their advantages and
disadvantages.
3. Do you think communication is important in an organisation? Discuss.

The flow of communication refers to the movement of information, ideas, thoughts, or feelings
between individuals or groups within an organization. Communication can flow in different
directions, including:
Downward communication: This type of communication flows from higher-level managers or
supervisors to lower-level employees. It includes instructions, feedback, announcements, and
performance evaluations.
Upward communication: This type of communication flows from lower-level employees to higher-
level managers or supervisors. It includes suggestions, feedback, and performance reports.
Horizontal/lateral communication: This type of communication flows between employees at the
same level or in different departments or units. It includes sharing information, ideas, or
coordination on tasks or projects.
Diagonal communication: This type of communication flows between individuals or groups at
different levels and in different departments or units. It includes the exchange of information, ideas,
or coordination on tasks or projects.
There are several forms of communication, including:
Oral communication: This includes face-to-face conversations, meetings, phone calls, and video
conferencing. It allows for immediate feedback and clarification but can be affected by noise or
distractions.
Written communication: This includes emails, memos, reports, and letters. It provides a permanent
record of information but can be time-consuming and may not allow for immediate feedback.
Nonverbal communication: This includes body language, facial expressions, and tone of voice. It can
convey emotions and attitudes but can be misinterpreted or ambiguous.
Visual communication: This includes charts, graphs, and diagrams. It can make complex information
easier to understand but can be affected by cultural or language barriers.
Advantages and disadvantages of each form of communication depend on the context in which they
are used.
Yes, communication is essential in an organization. Effective communication can improve
collaboration, promote understanding, and increase productivity. It can also enhance employee
motivation and job satisfaction. Poor communication, on the other hand, can lead to
misunderstandings, conflicts, and reduced productivity. In summary, communication is a critical
component of successful organizations, and it is necessary to ensure that information flows
effectively in all directions.

1. What do you understand by communication problems? Can you discuss their


causes?
2. What is effective communication? How can communication effectiveness be
improved?
3. Discuss the electronic media that are being used in communication.
4. What is teleconferencing? What are its benefits?

Communication problems refer to barriers or obstacles that hinder effective communication


between individuals or groups within an organization. The causes of communication problems
include language barriers, lack of trust between parties, differences in communication styles, noise
or distractions, conflicting goals or interests, and lack of feedback.

Effective communication refers to the ability to convey information or ideas in a clear, concise, and
meaningful way that is understood by the receiver. Communication effectiveness can be improved
by using simple language, active listening, asking for feedback, being mindful of nonverbal cues,
using appropriate channels, and being sensitive to cultural differences.

Electronic media refers to the various forms of communication technology that organizations use to
convey information. Examples include email, social media platforms, instant messaging, video
conferencing, and collaboration software. Electronic media offer many advantages, such as
increased speed and efficiency, ease of use, accessibility, and the ability to store and retrieve
information.

Teleconferencing is a form of electronic communication that enables people in different locations to


communicate in real-time through audio and video transmission. Benefits of teleconferencing
include reduced travel costs and time, increased productivity, improved collaboration, and the
ability to connect with people from diverse locations and backgrounds. Teleconferencing can also
enhance communication by providing nonverbal cues and visual aids, leading to more effective
communication.

CASE 11-1
HAYNES FASHION STORES, INCORPORATED
After graduating from college, Joyce Haynes went to work for her father, Dudley
Haynes, who was president of Haynes Fashion Stores Incorporated, a chain of
women's apparel stores. The company had been founded by Ms. Haynes's
grandfather over 50 years before. With her father's drive and knowledge of
women's fashions and of how to buy and sell them, the company had developed
from a single store in Harford, Connecticut, to a fairly large and highly profitable
chain of thirty stores in the New England area. Dudley Haynes was much like his
father. He knew what he was doing and how to do it, and he prided himself onbeing able to keep his
hands on details in buying, advertising, and store
management. Every one of his store managers, as well as his top vice presidents
and headquarters staff people, met with him every 2 weeks in Hartford. Between
these meetings, Mr. Haynes spent 2 or 3 days each week visiting the stores and
working with store managers.
His major worries were communication and motivation. Although he felt
that all his managers and staff people listened carefully at the conferences he
held, their subsequent actions made him wonder whether they had heard him at
all. He observed that many of his policies were not being strictly followed in the
stores; he often had to rewrite advertising copy; and in some of the stores the
employees had joined the clerks union. He increasingly heard things he did not
like, such as reports that many employees and even some managers felt they did
not know the company's goals and believed they could do better if they had a
chance to communicate with the executives at headquarters. He also had a strong
feeling that many of his managers and most of the store clerks were merely
doing their jobs without showing any real imagination or drive. An additional
concern was the fact that some of his best people had quit and took positions with
a competitor.
When his daughter walked into his office to begin work as his special
assistant, he said: "Joyed I'm worried about how things are going. Apparently my
two problems are communication and motivation. Now, I know that you took
some courses in management in school. I've heard you talk of the problem
barriers, and techniques of communication, and you've mentioned some fellows -
Maslow, Herzberg, Vroom, McClelland, and others - who knew a great deal
about motivation. While I doubt that these Psychologists knew much about
business and I feel that I know what motivates people - primarily money, good
bosses, and a good place to work - I wonder you've learned anything that will
help me communicate better. What do you suggest?"
Questions
1. If you were Ms. Haynes, what would you say to your father?
2. How would you go about analyzing the communication problem, and what
difficulties do you see already from the case?
3. Suggest ways that the motivation and communication theories you have
studied might be applied to Haynes Fashion Stores. Is there anything else
you would want to know?
4. How would you apply the Rogers and Roethlisbeger experiment discussed
in this chapter to the case?

If I were Ms. Haynes, I would suggest that we need to assess the current communication channels
and practices in the organization. I would also recommend that we conduct surveys and focus
groups to gather feedback from employees at all levels of the organization. Additionally, I would
suggest that we analyze the current motivation levels of employees and the factors that contribute
to employee satisfaction and dissatisfaction.

To analyze the communication problem, I would conduct a communication audit to identify gaps in
communication channels and processes. I would also assess the communication skills of managers
and employees to determine if there is a need for training. The difficulties that may arise from the
case include resistance to change, lack of buy-in from employees, and lack of resources to
implement new communication practices.

The motivation and communication theories that could be applied to Haynes Fashion Stores include
Maslow's hierarchy of needs, Herzberg's two-factor theory, and Vroom's expectancy theory.
Maslow's theory suggests that employees have different levels of needs, and a manager should
focus on satisfying those needs in order to motivate employees. Herzberg's theory proposes that
there are two types of factors that influence motivation: hygiene factors (e.g. working conditions,
salary) and motivators (e.g. recognition, achievement). Vroom's theory suggests that employees are
motivated by the belief that their effort will result in a certain level of performance, and that their
performance will be rewarded. To apply these theories, we could conduct surveys and focus groups
to identify the needs and motivators of employees, and develop strategies to satisfy those needs
and motivators. We could also implement training programs to improve communication skills of
managers and employees.

The Rogers and Roethlisberger experiment discussed in the chapter could be applied to the case by
conducting a study to identify the communication patterns in the organization. The study could
involve observing communication patterns between managers and employees and identifying the
factors that contribute to effective communication. This would help us to understand the barriers to
effective communication and develop strategies to overcome those barriers.

Unit-12 : Controlling
Lesson 1: Controlling Defined, Steps in the Control
Process, Importance of Control in Management
1. What is controlling? Discuss the steps involved in the control process.
2. State the importance of controlling in management.

Controlling is the process of monitoring and regulating organizational activities to ensure that they
are proceeding in accordance with plans and goals. The following are the steps involved in the
control process:
Setting performance standards: This involves establishing specific, measurable targets or
benchmarks against which performance can be evaluated.
Measuring actual performance: This involves collecting and analyzing data on the actual
performance of organizational activities in relation to the established standards.
Comparing actual performance to standards: This involves comparing the actual performance to the
established standards to determine whether there are any deviations.
Analyzing deviations: This involves identifying the reasons for any deviations from the established
standards.
Taking corrective action: This involves taking steps to correct any deviations and bring performance
back in line with established standards.
Controlling is important in management for several reasons:
It helps to ensure that organizational activities are aligned with the goals and objectives of the
organization.
It helps to identify and correct deviations from established standards, thereby improving
organizational efficiency and effectiveness.
It provides feedback on organizational performance, which can be used to identify areas for
improvement and to make better decisions in the future.
It helps to coordinate and integrate organizational activities, ensuring that different parts of the
organization are working together towards common goals.
It helps to ensure compliance with legal and regulatory requirements, reducing the risk of legal or
financial penalties.

1. How can an effective control system be designed? Discuss.


2. Should control be treated as a feedback system? Do you think that control
should be feedforward rather than feedback in order to be effective?
3. Explain the requirements for feedforward control. What are the techniques
of future- directed control?

An effective control system can be designed by following these steps:


Establishing standards: The first step is to establish the standards against which the actual
performance will be measured.
Measuring actual performance: The second step is to measure the actual performance against the
established standards. This can be done through various methods such as observation, sampling,
testing, etc.
Comparing actual performance with the standards: The third step is to compare the actual
performance with the established standards. Any deviations should be identified and analyzed.
Taking corrective action: The fourth step is to take corrective action to bring the actual performance
in line with the established standards. This may involve changing the processes, procedures, or
resources used in the organization.
Control can be treated as a feedback system or a feedforward system. In a feedback system,
performance is measured after it has occurred, and corrective action is taken to bring it in line with
the standards. In a feedforward system, potential problems are identified before they occur, and
action is taken to prevent them from happening.
Both feedback and feedforward control have their advantages and disadvantages. Feedback control
is reactive and may result in delays before problems are identified and corrected. However, it is
useful for managing processes that are stable and predictable. Feedforward control, on the other
hand, is proactive and can prevent problems from occurring. However, it requires accurate
predictions of future events and can be difficult to implement in dynamic environments.

The requirements for feedforward control are:


Accurate predictions: Feedforward control requires accurate predictions of future events. This can
be challenging in dynamic environments where there are many variables that can affect outcomes.
Early warning systems: Early warning systems can help identify potential problems before they
occur. These can be in the form of performance metrics, statistical analysis, or other tools.
Action plans: Action plans should be developed to address potential problems identified through the
early warning systems. These plans should be flexible and responsive to changing circumstances.
Communication: Effective communication is essential for feedforward control to work. Information
must be shared between different levels of the organization to ensure that everyone is working
towards the same goals.
The techniques of future-directed control include:

Forecasting: Forecasting involves making predictions about future events based on past trends and
other data.
Benchmarking: Benchmarking involves comparing the organization's performance with that of other
organizations to identify areas for improvement.
Scenario planning: Scenario planning involves creating different scenarios to anticipate potential
problems and identify appropriate solutions.
Risk management: Risk management involves identifying potential risks and developing plans to
mitigate them.

Essay type questions


1. How can control be made effective?
2. What is budgetary control? Discuss different types of budgets that can be
used as control devices.
3. What do you mean by Zero Base Budgeting? Discuss the advantages and
disadvantages of budgeting.
4. What are fixed and variable budgets? How can budgetary control be made
effective?
5. Describe the non-budgetary control devices, specially PERT with its
advantages and disadvantages.
6. Briefly discuss PERT and MIS as non-budgetary control devices.

How can control be made effective?


Effective control can be achieved through the following ways:
a) Setting up clear objectives: Clear objectives help to identify the standards and expectations to be
met by the employees.

b) Developing appropriate standards: Standards provide a basis for evaluating the performance of
the employees. They should be specific, measurable, achievable, relevant, and time-bound.

c) Establishing a sound feedback system: A feedback system helps to provide information about the
performance of employees and the extent to which the objectives have been achieved.

d) Developing effective communication channels: Good communication channels ensure that the
relevant information is available to the right people at the right time.

e) Taking corrective action: Corrective action needs to be taken when actual performance deviates
from the planned performance.
f) Periodic review: Regular review ensures that the control system is effective and helps to identify
areas where improvements can be made.

What is budgetary control? Discuss different types of budgets that can be used as control devices.
Budgetary control is a process of using budgets to monitor and control the activities of an
organization. The main purpose of budgetary control is to ensure that the organization operates
within the budgetary limits and achieves its objectives.
Different types of budgets that can be used as control devices are as follows:

a) Sales budget: This budget forecasts the expected sales for the budget period and provides the
basis for other budgets.

b) Production budget: This budget translates the sales budget into a production plan that specifies
the quantities of goods to be produced.

c) Cash budget: This budget shows the expected cash inflows and outflows during the budget period
and helps to identify the cash requirements of the organization.

d) Capital budget: This budget details the planned capital expenditures for the budget period and
helps to ensure that the organization invests its resources in the most profitable projects.

e) Operating budget: This budget includes the sales, production, and cash budgets, as well as other
budgets that relate to the operating activities of the organization.

What do you mean by Zero Base Budgeting? Discuss the advantages and disadvantages of
budgeting.
Zero Base Budgeting (ZBB) is a budgeting process that involves starting from scratch every year and
justifying all expenses, regardless of whether they are carried over from the previous year. This
approach helps to identify unnecessary expenses and encourages managers to consider alternative
courses of action.
Advantages of ZBB:

a) Improved cost control: ZBB helps to identify areas where costs can be reduced and eliminates
unnecessary expenses.

b) Improved resource allocation: ZBB ensures that resources are allocated to the most important
activities and projects.

c) Encourages innovation: ZBB encourages managers to consider new and innovative ways of doing
things.

Disadvantages of ZBB:

a) Time-consuming: ZBB is a time-consuming process that requires a lot of effort and resources.

b) High administrative costs: ZBB requires a large amount of administrative work and
documentation.
c) Difficult to implement: ZBB may be difficult to implement in organizations that have complex and
decentralized structures.

What are fixed and variable budgets? How can budgetary control be made effective?
Fixed budgets are budgets that remain constant regardless of the level of activity. Variable budgets
are budgets that change in relation to the level of activity. Fixed budgets are more suitable for stable
environments where the level of activity is predictable, while variable budgets are more suitable for
dynamic environments where the level of activity is uncertain.
Budgetary control can be made effective by following the steps below:

a) Setting clear objectives and standards.

b) Developing appropriate budgets that are based on realistic assumptions.

c) Ensuring that the budgets are communicated effectively to the relevant people.

d) Establishing a sound feedback system that provides regular information about the actual
performance of the organization.

"Open sidebar
Comparative Management Models.

1. What has given rise to the development of comparative management?


2. Do you have any idea about comparative management? Of what importance
is it to managers?
3. What do you understand by comparative management? State in brief the
nature of comparative management.
4. Explain the importance of understanding comparative management. Do you
think our managers can be benefitted by studying comparative management?
5. Critically discuss the comparative management models and state why one
should study them?
6. What do you understand by multinational company? Explain the reasons for
the development of such companies.

The development of comparative management has been driven by the increasing globalization of
business operations and the need for organizations to understand and manage their operations in
different cultural and institutional contexts.

Yes, comparative management is the study and analysis of different management practices and
systems across countries and cultures. It is important to managers because it helps them to
understand the differences and similarities in management practices across different regions and to
develop effective strategies for managing diverse workforces and operations in different cultural
contexts.
Comparative management is a field of study that involves the analysis and comparison of
management practices, systems, and approaches across different countries and cultures. The nature
of comparative management is interdisciplinary, as it draws on concepts and theories from
management, sociology, psychology, and other social sciences.

Understanding comparative management is important for managers because it helps them to


develop the skills and knowledge needed to operate effectively in different cultural and institutional
contexts. By studying comparative management, managers can learn about different management
practices and systems, as well as the cultural and institutional factors that shape these practices.
This can help them to develop more effective strategies for managing their operations and
workforces in different parts of the world.

Comparative management models are frameworks for analyzing and comparing management
practices across different countries and cultures. There are several different models, including the
cultural dimensions model, the institutional model, and the contingency model. One should study
these models because they provide a systematic and structured approach to analyzing and
understanding management practices across different cultural and institutional contexts.

A multinational company is a business organization that operates in more than one country. The
development of multinational companies has been driven by a range of factors, including
globalization, technological advances, and changes in trade and investment policies. Multinational
companies are able to take advantage of economies of scale and scope, access new markets, and tap
into new sources of talent and expertise. However, they also face challenges such as managing
diverse workforces and navigating complex legal and regulatory environments.

Essay type questions


1. Is it true that Japan has a unique system of management? Narrate.
2. State in brief the gradual evolution of the Japanese System of Management.
3. Give a diagramatical representation of the organisation structure and
management of corporations in Japan. Can you distinguish between the
organisation structure of corporations in Japan with that of Bangladesh?
4. What are the special features of Japanese management? Can we have any
lesson from Japanese management?
5. It is often said that the post-war recovery of Japan owes a great deal to its
system of management, which is unique in the world. Do you agree? Justify,
6. (a) "Japanese System of Management is unique" - Do you agree with this
statement? Explain.
(b) What lessons we can learn from Japanese System of Management?

Japan is often regarded as having a unique system of management, known as the "Japanese
management system." This system is characterized by its emphasis on teamwork, quality,
continuous improvement, and long-term orientation. Japanese management also places a strong
emphasis on employee development and training, and has a relatively flat organizational structure.
The Japanese system of management evolved gradually over time, beginning in the Meiji period
(1868-1912) when Japan began to modernize and industrialize. The system was influenced by a
range of factors, including traditional Japanese values, the teachings of Confucianism and Buddhism,
and the influence of Western management practices. During the post-war period, the Japanese
government played a significant role in promoting the development of Japanese management
through policies such as the "Employment Stabilization Law" and the "Industrial Rationalization
Law."

The organizational structure and management of corporations in Japan are typically represented in a
hierarchical diagram, with the CEO at the top, followed by senior executives, middle managers, and
front-line employees. The structure is characterized by a high degree of formalization and
standardization, with well-defined roles and responsibilities for each level of the organization. In
comparison to Bangladesh, the organizational structure of corporations in Japan tends to be more
centralized and hierarchical, with a greater emphasis on teamwork and collective decision-making.

The special features of Japanese management include a focus on quality, continuous improvement,
teamwork, and long-term orientation. Japanese management also places a strong emphasis on
employee development and training, with a view to building a loyal and committed workforce. Other
features include a relatively flat organizational structure, a focus on consensus-building and
collective decision-making, and a close relationship between firms and their suppliers. We can learn
many lessons from Japanese management, including the importance of employee development and
training, the benefits of teamwork and collective decision-making, and the value of a long-term
orientation.

It is true that the post-war recovery of Japan owes a great deal to its system of management, which
is unique in the world. Japanese management played a significant role in the success of Japanese
firms in the post-war period, helping to drive innovation, productivity, and competitiveness. The
system also contributed to Japan's economic growth and development, helping to transform the
country from a war-torn nation into a major economic power.

(a) I agree with the statement that the Japanese system of management is unique. Japanese
management is characterized by a range of features that set it apart from other management
systems, including its emphasis on teamwork, quality, continuous improvement, and long-term
orientation. These features have helped Japanese firms to achieve high levels of productivity and
competitiveness, and have contributed to Japan's economic success.

(b) There are several lessons that we can learn from the Japanese system of management. These
include the importance of employee development and training, the benefits of teamwork and
collective decision-making, and the value of a long-term orientation. Other lessons include the
importance of quality and continuous improvement, the benefits of a flat organizational structure,
and the value of strong relationships with suppliers. By learning from the Japanese system of
management, managers in other countries can improve their own practices and enhance their
competitiveness.
Essay type questions
1. Is it true that the industrial management in Bangladesh is backward? Justify.
2. Give a brief description of the management levels of Bangladesh industries.
3. Critically discuss the features of management in Bangladesh.
4. State in brief the present status and future prospects of management in
Bangladesh.

The industrial management in Bangladesh has been criticized as being backward, particularly in
comparison to more developed countries. This is due to a range of factors, including limited access
to education and training, a lack of investment in infrastructure and technology, and a limited pool
of skilled labor. Additionally, there are challenges related to corruption, bureaucracy, and political
instability, which can hinder the growth and development of the industrial sector. However, it
should be noted that there are also examples of successful management practices in Bangladesh,
particularly in the garment and textile industries.

The management levels of industries in Bangladesh typically include top-level management, middle-
level management, and operational-level management. Top-level management is responsible for
overall strategy and decision-making, while middle-level management focuses on implementation
and coordination. Operational-level management is responsible for day-to-day operations and is
typically the largest group within the organization.

The features of management in Bangladesh include a range of strengths and weaknesses. Some of
the strengths of management in Bangladesh include a strong work ethic, a focus on personal
relationships and networking, and a willingness to work hard and adapt to changing circumstances.
However, there are also challenges related to a lack of investment in education and training, a
limited pool of skilled labor, and a lack of infrastructure and technology. There are also challenges
related to corruption, bureaucracy, and political instability, which can hinder the growth and
development of the industrial sector.

The present status of management in Bangladesh is characterized by a range of challenges, including


limited access to education and training, a lack of investment in infrastructure and technology, and a
limited pool of skilled labor. However, there are also examples of successful management practices
in Bangladesh, particularly in the garment and textile industries. Future prospects for management
in Bangladesh depend on a range of factors, including continued investment in education and
training, improvements in infrastructure and technology, and efforts to address corruption,
bureaucracy, and political instability. With the right policies and investments, there is potential for
Bangladesh to become a more competitive player in the global economy.

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