BCM107_Principles of Management-converted-converted

▪ Sometimes, a committee may not be able to take the needed decision because of the conflicting views of the members. ▪ Committees take more time in procedural matters before any decision is taken. In some cases, slowness seriously handicaps the administration of the organisation. ▪ Committees are an expensive device both in terms of cost and time. ▪ When the committee findings represent a compromise of different viewpoints, they may be found to be weak and indecisive. ▪ No member of a committee can be individually held responsible for the wrong decision taken by the committee. ▪ It is very difficult to maintain secrecy regarding the deliberations and the decisions taken by a committee, especially when there are many members in the committee. MODERN ORGANIZATION STRUCTURES In modern organizations, structures are developed to be more dynamic to blend individual and organizational skills and expertise holistically. Such structures absorb ideas from different structures to make communication more effective. New designs focus on adaptability. Modern organizational structures are more dependent on employee involvement because authority is distributed based on skills. Modern structures are based on fewer rules and do not have rigid boundaries between positions which makes it more organic structure. Modern organization structures offer many benefits, some of them are: i. Staffs are empowered and more involved ii. The barriers in functional areas are reduced iii. The organizational structure is flexible and dynamic which makes it easier to respond to environmental changes iv. Decision making is fast v. The structure is highly flexible and responsive vi. The model draws talent wherever it is found A few modern organizational structures are provided below. PROJECT ORGANIZATIONAL STRUCTURES A structure developed on a project facilitates co-ordination and implementation of project activities effectively. Project organization’s main reason is to create an environment that fosters interactions among the team members with minimum amount of disruptions, overlaps and conflict. Project based organizational structures are used only in specific projects and has unique characteristics in which it will operate, but within the framework of the organization. The project manager has adequate levels 97 CU IDOL SELF LEARNING MATERIAL (SLM)

of authority to effectively handle the project. A project structure can take on various forms with each form having its own advantages and disadvantages and based on the project’s resources. Projects have many phases and the objective of this structure is to eliminate uncertainty and confusion that is common during the project initiation phase. Project structure defines the roles, interdependencies and relationships between members of the project and relationships with external environment. The structure defines the authority and responsibility of each member involved in the project. To execute a project successfully towards completion a properly designed project organization chart is essential. An organization chart shows where each person is placed in the project structure. A project organizational structure is to represent part of the project but actual implementation and application is one of the major efforts in the project. In project structures formal reporting relationships are explained among the project manager, team members, the organization, project beneficiaries and other external stake holders involved in the project. The project organization is structured to facilitate effective interaction, co-ordination and integration among all the participants and achieve open and effective communication among everyone involved in the project. The project manager will also create the structure to include different project needs at different phases in the project. The structure cannot be designed to be rigid or too lose, since the project organization's purpose is to facilitate the interaction of people to achieve the project ultimate goals within the specified constraints of scope, schedule, budget and quality. The objective in designing a project structure is to provide a formal environment that the project manager can use to influence team members to do their best in completing their assignment and duties. The structure needs to be designed to help develop collaboration among individual team members; all in a cost-effective way with a minimum of duplication of effort and overlaps. MATRIX ORGANIZATION STRUCTURE Matrix organization structure is another type of structure which is adaptive and aims to combine the advantages of autonomous project organization and functional specialization. In the matrix organization structure, there are functional departments with specialized personnel who are deputed to work full time in different projects sometimes in more than one project under the overall guidance and direction of project managers. When a project work is completed, the individuals attached to it go back to their respective functional department to be assigned again to some other project. Matrix structure is most suited in areas when the organization is engaged in project activities that involve contracts. In this structure there can be many project managers like in a large construction company or engineering firm. Matrix organization is a flexible structure and is an ideal structure in projects that require changing conditions. It facilitates pooling of specialized and technical personnel from functional departments 98 CU IDOL SELF LEARNING MATERIAL (SLM)

who can be deputed to a number of projects. They acquire valuable experience of handling varied and complex problems in project work. Information exchange is quick and decision making is rapid because the personnel work under the coordinating authority of project managers. The major drawback of matrix organization is that the personnel drawn from specialized functional departments are subjected to dual authority, that of the functional heads and the project managers. The principles of unity of command are thereby sacrificed. Such rapid changes also develop stress and strain in an individual in project management, because of continuous engagement simultaneously between many projects. FREE FORM STRUCTURE Free form structure organization is formed whenever a need arises to form an organization, for achieving a particular object. This structure is dissolved after achieving the objective for the organization. The free form organization resembles the project and matrix organization and also known as organic or ratio organization. FORMAL VS. INFORMAL ORGANIZATIONS. Relationships determine the classifications of organizations. There are two types of classifications namely formal organization and informal organization. They are explained below: iii. Formal Organization: Formal organizations have well defined jobs, structure and measure of authority and responsibility. It is a conscious determination by which people accomplish goals by adhering to the norms laid down by the structure. Formal organization is an absolute setup in which each individual is responsible for his/her performance. iv. Informal organization: Informal organization refers to the network of personal and social relationships which spontaneously originates within the formal set up. In informal organizations, relationships are developed based on likes, dislikes, feelings and emotions. An example of informal organization is a social network of friends. There is no conscious effort made to have informal organization. In informal setup there are no rules or regulations as in the case of formal organizations. Both these classes of organizations have their own set of characteristics. Formal organization is a result of well-defined organizational structure but, an informal organization has origins to the formal organization. It is important to note that both, formal and informal organizations are required for efficiency and they are two phases of a same concern. Formal organizations are more stable but informal organizations emerge and are dissolved quickly. Therefore, informal organization can be understood as emergent from formal organization. Some of the main differences between formal and informal organization is shown in table 6.1 99 CU IDOL SELF LEARNING MATERIAL (SLM)

Table 6.1: Differentiate between Formal & Informal Organization Formal Organization Informal Organization It is created by the top management. Top management has no role in creation of the organization. The organization arises by itself and associates like-minded people together. Formal organization is created to perform jobs in Informal organizations are developed to fulfil a planned and systematic manner. needs of members which cannot be satisfied by formal organization. It is managed by officially appointed managers. Members of the informal group select someone as their leader to take care of the interests of the group members. Managers of formal organization have formal The authority of the leader of informal group authority. depends upon the combined support of group members. Formal organization is permanent and stable. This organization is temporary in nature. The size and membership can change from time to time. SUMMARY The unit explains the structure of organizations in terms of its functions, tasks and authority of each department, divisions and individual employees along with showing the relationships between them. It is apparent that a well-designed organization structure also shows the line of command, communication and procedures along with describing the number of employees in each division and unit. An organization structure divides departments, divisions and individuals on the basis of tasks, functions and authorities. The unit emphasizes that an organization structure must facilitate different processes in the organization. In organizations, hierarchy, relationships between groups or individuals in the structure and responsibilities play a role in the development of organization structures. The unit explains organizational structure and design for its meaning and importance. The objectives and factors affecting organization design are also provided to support a manager undertaking the exercise of designing organizational structure. 100 CU IDOL SELF LEARNING MATERIAL (SLM)

Organizational structure is of different types based on the levels, number of employees, units or department and the nature of business. Most standard organizational types are explained for their application in organizations. Discussions on modern organizational structure are also provided in the unit. The section on modern organization introduces the concept of mixed structures for organizations to compete in rapidly changing market scenarios and the need for modern organization structure is highlighted. The types of modern structures such as project, matrix and free form structure is also provided KEY WORDS/ABBREVIATIONS • Formal Organisation: A planned structure which represents the officially established pattern of relationship among individuals, groups, sections, units, departments and divisions. • Informal Organisations: A network of relationship among the participants of an organisation which arises spontaneously on the basis of social and psychological needs. • Functional Structure: The functional structure is the most common type of organizational structure that businesses use, grouping employees by specialty, skill or related roles. It is based on levels of hierarchy that include different departments, under the direction of designated leaders. • Divisional Structure: The divisional structure is a type of organizational structure that groups each organizational function into a division. .... Each division contains all the necessary resources and functions within it to support that product line or geography (for example, its own finance, IT, and marketing departments). • Line and staff : In a line and staff organisation, the work of administration of business units is divided into two broad divisions, viz., the staff which is responsible for planning and the line for the actual execution of the work. • Matrix organization: A matrix organisation is a structure in which there is more than one line of reporting managers. Effectively, it means that the employees of the organisation have more than one boss. LEARNING ACTIVITY 1. Discuss Staff Organizational Structure with relevant examples ……………………………………………………………………………………………………….. ……………………………………………………………………………………………………….. 2.Differentiate between Formal & Informal Organizations ……………………………………………………………………………………………………….. ……………………………………………………………………………………………………….. 101 CU IDOL SELF LEARNING MATERIAL (SLM)

6.16 UNIT END QUESTIONS (MCQ AND DESCRIPTIVE) A. Descriptive Types Questions 1. Identify the different types of organizations? Explain the concept of modern organization design. 2. State the features of Project, Matrix and Form free organization structure 3. \"A committee is made up of the unfit selected by the unwilling to do the unnecessary\". Comment. 4. Why is Organisational structure important? What sort of organisational structure best suited in a stable work environment? 5. List down some of the problems that you have identified from a bad organisational structure. 6. Structural problems can be fixed by redesigning the organization chart - comment. Why are workflows such an important part of improving structure? B. Multiple Choice Questions 1. 1. A structural organization implies a. Organization structure b. Manager and subordinates c. Formal relationships between members d. Good productivity e. None of the above 2. The objective when a manager after creating new departments, need to find a way to combine all the departments together to ensure co-ordination and collaboration across the departments is known as a. Responding to change b. Coordinating the components c. Encouraging flexibility d. Organization design e. None of the above 3. The factor that addresses issues of best fit organizational structure and controls for just in time total quality management is known as a. Value of innovation b. Decentralization c. Customer interaction 102 CU IDOL SELF LEARNING MATERIAL (SLM)

d. Decision making e. None of the above 4. In organization structure, the conflicts in line and staff structure members can be avoided by a. Paying more incentives to everyone b. When there is less interference c. Staff can be relocated d. Providing clarity in relationships e. None of the above 5. Modern organization structure will a. Provide more flexibility b. Draw talent from everywhere c. Remove barriers in operations d. Provide flexible organization design e. All of the above Answer Keys 1. c) 2. b) 3. a) 4. d) 5. e) REFERENCES Koontz, O Donnel and Weirich. (2001). Principles of Management. New Delhi: Tata McGraw Hill Publishing Company. Chopra, R.K. (2005). Principles & Practices of Management. New Delhi: Sun India Publication. Tripathi, P.C., and Reddy, P.N. (2006). Principles & Practices of Management. New Delhi: Tata McGraw Hill Publishing Company Alfred D. Chandler, Strategy and Structure, MIT Press, Cambridge: Mass, 1962. Chris Argyris, Personality and Organisation, Harper and Row, New York, 1959. Douglas M. McGregor, The Human Side of Enterprise, McGraw-Hill, New York, 1967. Earnest Dale, Management: Theory and Practice, McGraw-Hill, New York, 1968. www.about-knowledge.com www.managementstudyguide.com www.noweco.com 103 CU IDOL SELF LEARNING MATERIAL (SLM)

104 CU IDOL SELF LEARNING MATERIAL (SLM)

UNIT–7 DELEGATION, AUTHORITY AND RESPONSIBILITY Structure Learning Objectives Introduction Meaning of Delegation of Authority Characteristics of Delegation Process of delegation Types of Delegation: Benefits And Consequences Of Delegation Benefits of Delegation: Delegation Consequences: Concepts Relationship between Authority and Responsibility Summary Key Words/Abbreviations 7.10.Learning Activity 7.11.Unit End Questions (MCQ and Descriptive) 7.12.References LEARNING OBJECTIVES After studying this unit, you will be able to: • State the meaning of delegation of authority • Analyse the concepts of delegation, authority and responsibility INTRODUCTION All the activities in the organization are not performed by one person when the organization grows and business expands. As more people are employed in the organization due to its growth authority is provided to employees. The process of transferring authority and creation of responsibility between superior and subordinates to accomplish a certain task is called delegation of authority. It can take place without decentralization. It can be withdrawn by delegator at any time. Authority minimizes the burden on managers responsible for the unit, department or plant. Delegation of authority also establishes relationship between subordinates and their immediate manager or supervisor. 105 CU IDOL SELF LEARNING MATERIAL (SLM)

Delegation of authority is a management technique which is used to get the tasks done by involving others. It is confined to manager and subordinates. In delegation of authority, only authority is assigned and not responsibilities. While delegating authority it must be noted that the control remains in the hand of one superior who can supervise the activities of the subordinates. Since, a person has authority, complete control rests with him/her to supervise activities of subordinates, and again this is an art of management. When authority is not given to subordinates there is no performance. Delegation refers to a process where work and power is shared, that is the power is delivered from one person to the other. In this unit, the management technique of delegation of authority is explained. The unit explains the meaning and concept of power, authority and responsibility in the context of managing an enterprise organization. When the organization is small one person can easily control different activities and also supervise people. When the company grows, authority is delegated and authority creates manager-employee relationships. Authority can be centralized in few hands in the case of small business firm. Delegation of authority is needed as the business grows because more and more people have to cope with expansion and hence responsibility is allocated between people. In delegating authority there are different functions to analyse in assuming responsibility. The unit discusses the necessity of delegation and the processes involved in it. MEANING OF DELEGATION OF AUTHORITY In organizations, departments are created to handle various tasks within the firm which the organization operates. The creation of departments creates the need for delegation of authority. Delegation involves sharing of either managerial work or operating tasks between a manager and his subordinates. Delegation of authority is understood as a process where a manager can share his/her tasks with immediate subordinates. These subordinates can further delegate their authority and this continues till the operating level of employees. Some definitions are: “Delegation means in brief the passing on the other of a share in the four elements of the management.” —E. F. L. Brech “Delegation means assigning work to others and giving them authority to do it.” —F. G. Moore “Delegation is an act of comparing authority by some higher source of authority.” “Delegation means conferring authority from one executive or organi­sational unit to another in order to accomplish particular assignment.” —George R. Terry Delegation of authority takes place when a manager assigns a part of his work to others and gives them the authority to perform the assigned tasks. The manager who delegates authority holds his subordinates responsible for proper performance of the assigned tasks. The process of delegation will involve duties being assigned, entrusting authority and enforcing responsibility on subordinates.Theo 106 CU IDOL SELF LEARNING MATERIAL (SLM)

Haimann stated that it is a means of granting authority to subordinates by which they can operate within determined limits. Koontz and O’Donnell explained that, when a superior feels the need to provide power to a subordinate using his/her discretion within the organizational framework, authority is delegated. Delegation by definition is the transfer of authority to make decisions and complete specific tasks. Learning how to delegate is one of the most important skills for managers and leaders to possess. Managers can save time, motivate and keep subordinates inspired, provide training and also take on new opportunities when delegation techniques are followed strongly and systematically. A manager can be over-worked when delegation practices followed leave people frustrated, or unmotivated. Delegation is a skill that enables managers to achieve more without burning themselves out. Managers can innovate, develop themselves and capitalize on new opportunities through delegation, because much of his/her time is freed. In many organizations, successors are elected by first delegating tasks and responsibilities to an individual. Delegating authority allows the individual to learn the job of management and subsequently move to higher positions. This practice can be found in many organizations and hence to develop high quality leaders, effective delegation is highly essential. By delegating authority, the management provides opportunities for subordinates to elevate themselves within the organization and demonstrate their competencies. All of these reasons emphasize the positive outcomes associated with delegation. Contrary to positive outcomes, delegation of authority is also a big challenge because of the following questions that arises while delegating subordinates with more responsibilities and authority. Some of the questions that arise while delegating authority include, i. What are my tasks and responsibility? ii. What tasks can I delegate? iii. Within my team, who is the most effective person for this task? iv. What are the expectations while completing this task? v. How to monitor the person for correctness with whom the job is delegated? vi. How will I measure performance of this person? Many people follow the famous saying, “if you want it done right, do it yourself.” Often managers face an uphill task to identify a right person for a delegated task. After the person is identified, the manager must also find time to coach and train the person on doing the job correctly and effectively. This hurdle is faced by almost all managers and this hurdle must be overcome in order to delegate effectively. Modern organizations have grown in size and complexities, and this has necessitated the division of an organisation into different segments. Organizations are internally separated by defining divisions or segments. Segments and divisions are made for the purpose of executing objectives, policies and operations more effectively. It is important to note that mere divisions by nature of work and 107 CU IDOL SELF LEARNING MATERIAL (SLM)

assigning a departmental head will not serve the purpose. The departmental heads and also the subordinates would need authority to perform assigned tasks efficiently. Such process of parting with authority is known as Delegation. Further, delegating authority is required because one single person cannot handle all tasks all by self. Therefore, the superiors have to part with part of the authority that they possess. CHARACTERISTICS OF DELEGATION A manager alone cannot perform all the tasks assigned to him. In order to meet the targets, the manager should delegate some tasks or duties to subordinates, since management means getting work done through others. Delegation of Authority means division of authority and powers downwards to the subordinate. Delegation is about entrusting someone else to do parts of your job. Delegation of authority can be defined as subdivision and sub-allocation of powers to the subordinates in order to achieve effective results. Some of the important characteristics of delegation may be listed thus: 1. A co-operative relationship: Delegation is a co-operative relationship. It is a demanding function; it requires sacrifices from both, the delegator and the one to whom the responsibility/task has been delegated to. 2. Act of mutual reliance: Delegation is an act of mutual reliance, an expression of dependence and trust on another person's abilities. This also involves an assumption on the part of the one who is delegating the authority that the individual to whom duties have been delegated possesses the necessary skill and strength to be able to discharge those tasks or duties. 3. Freedom of thought and action: Delegation means freedom of action sufficient to get the tasks accomplished. It means freedom to make decisions, permission to make mistakes and freedom to use one's full capacities. This does not mean that the manager leaves the subordinate on his own to sink or swim. It simply means that the one who has delegated the authority guides the one to whom the delegation has been done, so as to let the latter learn the nuances and succeed by trial and error method. 4. A courageous act: Delegation of authority or responsibilities is quite a challenging act. The fear of being ultimately responsible compels many managers to indulge in under- delegation. 5. Forward-thinking principle: Delegation, from a behavioural point of view, is the 'most forward-thinking principle'. It opens a new chapter in superior subordinate relationships. The granting of freedom to act by the superior is evidence of confidence in the subordinate. The subordinate responds by developing a constructive sense of responsibility. He is cognizant of the fact that he is an end in himself, and not simply a means towards the ends of his superior. The acceptance of responsibility by the subordinate means changed responsibilities for the superior, and each finds himself playing a new dynamic role. 108 CU IDOL SELF LEARNING MATERIAL (SLM)

PROCESS OF DELEGATION The process of delegation of authority involves the following steps: Determining expected results: The first step in delegation process is the determination of results expected from a position or subordinate. Delegation can be meaningful, if the subordinate has clarity and understanding on what results must be achieved. Moreover, it helps in deciding adequate amount of authority to be delegated to a subordinate. The results to be achieved must be determined if delegation needs to be effective. Assignment of tasks: In organizations people are allocated with tasks or duties i.e., the superior indicates what the subordinates are required to do exactly. A duty refers to a function, or goal or results. Let us assume Mr. Y’s duty is to operate a machine for producing a particular product this is expressed in terms of function. If Y’s duty is to produce 5 pieces in a machine in his/her 8 hours of work this duty is expressed in terms of a target or goal. When a duty is expressed in terms of goals, it provides satisfaction to subordinates because they can measure their achievement by themselves. Grant of authority: A subordinate must be granted with proper authority if the duty assigned to him/her needs to be discharged correctly. As the total work of the manager cannot be delegated, delegation of authority also need not be full in any situation. Besides, a manager can exercise his authority and delegate it only within the limits set by the company policies and established procedures. Therefore, when the question of delegation arises the manager should be clear as to what rights are associated with the task that is to be delegated. Creation of Obligation or Accountability: Delegation implies accountability from subordinates to the superior. In the creation of obligation or accountability, the supervisor is responsible to measure the performance of the subordinate and appraise regularly. In this case, the subordinate also promises to do his/her best in fulfilling the obligation. Duty can be delegated; authority can be delegated but it is not the same with accountability. As seen earlier, the flow of authority is from top to bottom, but in the case of accountability the flow is from bottom to top. Because of this accountability the manager must keep for himself some reserved authority and duties for regulating and controlling the course of work undertaken by his subordinates. Accountability is conferred upon an individual only up to the extent the person has delegated authority. For example, the responsibility of a sales manager is to sell the company’s product. Likewise, the personnel department has the responsibility to provide training the salesmen which again is authority given by the sales manager in sales department. The sales manager cannot be held accountable for the selling techniques or proficiency of his salesmen. Each subordinate can be held accountable only to one superior for delegated authority. Delegation of authority is a four-stage process which also illustrates effective delegation. This is shown in figure 7.1. 109 CU IDOL SELF LEARNING MATERIAL (SLM)

A. Stage 1: Assignment of Tasks to Subordinates R B. Stage 2: Transfer of Authority e j C. Stage 3: Assignment Acceptance e D. Stage 4: Responsibility is created c t Figure 7.1 :The stages in the process of delegation of authority The stages include, i. Assigning subordinates with duties: The manager before assigning duties or delegating responsibility must clearly and precisely decide on the duties which are to be assigned with an employee or a group of subordinates. The authority is delegated accordingly and the subordinate is told what is expected from him. Normally, the practice of listing the functions to be performed by the subordinate is done along with targets to achieve. Subordinates may be assigned tasks either in terms of activities or in terms of results. While assigning duties with subordinates the manager must communicate clearly ensure to explain his/her expectations. The manager must also ensure that employees who are competent and responsible are provided with general guidelines on accomplishments, and their less competent members must be explained more specifically on their roles and targets. ii. Transfer of authority to perform duty: In this principle of delegation process, the authority is granted by the delegator to his subordinate (delegate). To perform the assigned duty authority is delegated strictly. The performance of duties suffers serious setback when required authority is not delegated along with the duty. In brief, the transfer of authority should be adequate considering the duties assigned to the subordinate. iii. Acceptance of assignment: In this step the subordinate can decide to either accept or reject the task assigned to him/her. If the subordinate will reject the assignment, the duties to be performed and the authority provided in the assignment will also become null for the 110 CU IDOL SELF LEARNING MATERIAL (SLM)

subordinate. If the delegates refuse, the delegator has to make fresh plan of delegation or may consider some other subordinate who is capable and is willing to accept the assignment. iv. Creation of obligation, accountability and responsibility: In this step, delegation of authority creates an obligation for the subordinate. The subordinate will perform the duties assigned in a satisfactory manner by using the given authority. The subordinate is accountable for completing the assigned work. The subordinate is held answerable to a superior for the satisfactory performance of that work assigned. The manager who delegates responsibility has the accountability to support his/her subordinates whenever required. 7.4.1 Types of Delegation: Delegation may be of the following types: General or Specific Delegation: When authority is given to perform general managerial functions like planning, organizing, directing etc., the subordinate managers perform these functions and enjoy the authority required to carry out these responsibilities. The chief executive exercises overall control and guides the subordinates from time to time. The specific delegation may relate to a particular function or an assigned task. The authority delegated to the production manager for carrying out this function will be a specific delegation. Various departmental managers get specific authority to undertake their departmental duties. Formal or Informal Delegation: Formal delegation of authority is the part of organizational structure. Whenever a task is assigned to a person then the required authority is also given to him. This type of delegation is part of the normal functioning of the organization. Every person is automatically given authority as per his duties. When production manager gets powers to increase production then it is a formal delegation of authority. Informal delegation does not arise due to position but according to circumstances. A person may undertake a particular task not because he has been assigned it but it is necessary to do his normal work. Lateral Delegation: When a person is delegated an authority to accomplish a task, he may need the assistance of a number of persons. It may take time to formally get assistance from these persons. He may indirectly contact the persons to get their help for taking up the work by cutting short time of formal delegation. When the authority is delegated informally it is called lateral delegation. Reserved Authority and Delegated Authority: 111 CU IDOL SELF LEARNING MATERIAL (SLM)

A delegator may not like to delegate every authority to the subordinates. The authority which he keeps with him is called reserved authority and the authority which is assigned to the subordinates is delegated authority. Pre-Requisites for Delegation: Every superior tries to retain as much authority as possible. The load of work or circumstances may compel delegation downwards. If the authority is not willingly delegated then it will not bring desired results. It is important that appropriate authority should go downwards so that work is undertaken smoothly and efficiently. The process of delegation will be complete only if following prerequisites are fulfilled. Willingness to Delegate: The first prerequisite to delegation is the willingness of the superior to part with his authority. Unless the superior is psychologically prepared to leave his authority, delegation will not be effective. If a superior is forced to delegate authority downward without his sweet will, he will try to devise methods to interfere with the subordinate’s working. He may over shadow the subordinate to such an extent that every decision is implemented with the approval of the boss or performance may pass through him with his close scrutiny. It will be better not to delegate authority unless the superior is mentally prepared to do so. Climate of Trust and Confidence: There should be a climate of trust and confidence among superiors and subordinates. The subordinates should be given enough opportunities or real job situations where they use their talent and experience. In case they make some mistakes then superiors should guide and correct them. The superiors should trust their subordinates and should not take them as their competitors. The climate of trust and confidence will help the subordinates to learn and grow and this will help the process of delegation. Faith in Subordinates: Sometimes the superiors do not delegate authority with the fear that subordinates will not be able to handle the job independently. They are not confident of the qualities of subordinates and do not want to take risks. The superior may be over conscious of his skill and competence with the result that he is hesitant to delegate authority. The superiors should avoid this type of thinking and attitude. They should have faith in their subordinates and should rather help them in learning the job properly. After all the superiors also learnt many things from their superiors and present subordinates are also to take up higher responsibilities. The climate of faith will help the subordinates to learn the things faster and take up more responsibilities. Fear of Supervisors: 112 CU IDOL SELF LEARNING MATERIAL (SLM)

There is often a fear among superiors that their subordinates may not over take them, once they are given higher responsibility. This is a case of inferiority complex. The superiors may give many logics for delegating authority but this fear is one of the important causes. The superiors should avoid this type of thinking and have positive attitude towards subordinates. The subordinates should be encouraged to take up more responsibilities and they will have more respect for the superiors and their ability have faith in their subordinates and should rather help them in learning the Job properly. After all the superiors also learnt many things from their superiors and present subordinates are also to take up higher responsibilities. The climate of faith will help the subordinates to learn the things faster and take up more responsibilities. BENEFITS AND CONSEQUENCES OF DELEGATION Benefits of Delegation: Delegation has multiple effects since not only the one delegating benefits, even the staff and the company. The one delegating reduces his workload and can focus his efforts and energy into something that needs his/her skills more. The manager delegating is giving himself more time to analyse business trends, anticipate issues, plan and be in tuned with the vision of the company. These are just some of the aspect’s worth of every manager's focus to be effective as a leader. The first and most obvious is that the more tasks managers are able to delegate, the more opportunities they have to seek and accept increased responsibilities from higher level managers. Thus, managers will try to delegate not only routine matters but also tasks requiring thought and initiative, so that they will be free to function with maximum effectiveness for their organisations. In addition, delegation causes employees to accept accountability and exercise judgment. This not only helps train them – an important advantage of delegation – but also improves their self-confidence and willingness to take initiative. Another advantage of delegation is that it frequently leads to better decisions, because employees closest to 'where the action' is are likely to have a clearer view of the facts. For example, a West Coast sales manager would be in a better position to allocate California sales territories than a New York based vice president of sales. Effective delegation also speeds up decision making. Valuable time can be lost when employee must check with their managers (who then may have to check with their managers) before making a decision. This delay is eliminated when employees are authorized to make the necessary decision on the spot. 113 CU IDOL SELF LEARNING MATERIAL (SLM)

7.5.2 Delegation Consequences: Delegation of tasks or responsibilities or even authority is never an easy job. It is quite challenging a task and requires handling a lot of issues. The following present the main issues presenting hurdle in the process of delegation. 1. What to delegate and what not to delegate: By virtue of his position in the hierarchy, a superior is usually in a position to handle tasks better than a subordinate. There is a natural tendency for managers to resist delegating adequate authority and do everything themselves. After a time, the manager is certain to find himself buried in detail and busy 'fighting fires' instead of concentrating on key issues. What to delegate, in fact, is not a simple question to answer. Before trying to solve the puzzle, a manager needs a realistic picture of his personal strengths and weaknesses so that he can avoid the temptation to transfer his mistakes and limitations to others. 2. To whom should authority be delegated: Clearly, delegation should be directed toward those who have the capacity for accomplishment, the talents and abilities needed, the practical experience of meeting responsibilities and the courage to face challenges. As a matter of fact, managers delegate to those they trust and respect, and whose performance they have observed. 3. Reluctance to delegate: Managers offer numerous explanations in support of their conservative outlook: i. Better performance ii. No trust iii. Subordinate may get credit iv. Continuous guidance difficult v. Who will face the music? 4. Reluctance to accept delegation: Delegation may prove to be a futile exercise, in situations where the boss is ready to delegate but the subordinate is unwilling to accept the delegation. Normally, the following of the delegate attitudes hinder the delegation process: i. Easy to ask ii. Fear of criticism iii. Lack of information resources iv. Too heavy v. Lack of self-confidence 7.6 CONCEPTS The main concepts in delegation of authority are three namely responsibility, authority and accountability. These concepts are described below: 114 CU IDOL SELF LEARNING MATERIAL (SLM)

Authority: The term authority is commonly understood as the right of full power or the right to command. It is the link between a superior and his/her subordinate. Authority creates and develops superior-subordinates relationship. Authority always follows the top-down approach that is the flow is from the top to bottom. Authority must be understood by everyone involved with the organization. Every employee must be aware of its scope. Managers by virtue of their legitimate positions have rights or authority to decide, direct and to influence the behaviour of subordinates towards pursuing organizational goals. According to Henri Fayol, authority is “the right to give orders and power to exact obedience.” Chester Barnard explained that the character of communication is involved in authority. Beech stated that authority is the power to offer valid instructions for subordinates to act in the right direction. Given below are some of the features of authority: i. Authority refers to right to take decision due to your managerial position ii. Authority determines superior subordinate relationship. When a supervisor communicates his/her instructions or decision to a subordinate, the supervisor expects compliance on the part of the subordinate. iii. Authority has limitations and restrictions which are defined by the law and rules and regulations of the organisation iv. Authority is developed from scalar chain which links various job positions v. Authority flows upward as we go higher up in management hierarchy the scope of authority increases vi. Authority and Responsibility are equal. i.e., Authority = Responsibility Responsibility: Responsibility develops due to the relationship between superior and subordinate in an organization. Responsibility creates obligation which is an aspect of delegation of authority. Here, the employee who has responsibility has the obligation to perform the assigned duties correctly. When a manager or a subordinate has an obligation to achieve a task, he/she is assigned the responsibility. In the normal functioning of an enterprise, the nature of responsibility is in continuing obligation which means that the subordinate has an obligation to discharge assigned functions as required by the superior continuously. In special assignment, like the engagement of a consultant on a particular issue by the management, his obligation will cease when the assignment is completed. Hence, responsibility leads to obligation and the source of responsibility lies within the individual. Responsibility has the following features in general, i. Responsibility is the obligation of a subordinate to properly perform the assigned duty 115 CU IDOL SELF LEARNING MATERIAL (SLM)

ii. It arises from superior subordinate relationship because subordinate is bound to perform the duty assigned by supervisor iii. Responsibility flows upward because subordinate will always be responsible to his superior Accountability: If the employees or subordinates perform their responsibilities in their expected manner, the accountability is created. Accountability is followed by responsibility, which means the person or subordinate is answerable for his/her responsibility. Accountability is the final step in delegation. Unlike responsibility and delegation accountability cannot be passed to others. It can only be shared with the subordinates which means even after delegating responsibility and authority the managers will be accountable for non-completion of task. For example, if a production manager is given the target of producing 20 machines in one month’s time and he divides this target between four foremen working under him, i.e., each foreman will produce 5 machines but a single foreman will not be able to achieve the target. At the end of the month only 17 machines are manufactured. In this case the manager responsible for production will be held accountable for non-completion of target as accountability cannot be transferred or shared. Accountability is an absolute term. The features of accountability are: i. Accountability refers to answerable for the final output ii. It cannot be delegated or passed iii. It enforced through regular feedback on the extent of work accomplished iv. It flows upward, i.e., subordinate will be accountable to his superior and so on RELATIONSHIP BETWEEN AUTHORITY AND RESPONSIBILITY Authority is the legal right of person or superior to command his subordinates while accountability is the obligation of individual to carry out his duties as per standards of performance Authority flows from the superiors to subordinates, in which orders and instructions are given to subordinates to complete the task. It is only through authority, a manager exercises control. In a way through exercising the control the superior is demanding accountability from subordinates. If the marketing manager directs the sales supervisor for 50 units of sale to be undertaken in a month. If the above standards are not accomplished, it is the marketing manager who will be accountable to the chief executive officer. Therefore, we can say that authority flows from top to bottom and responsibility flows from bottom to top. Accountability is a result of responsibility and responsibility is result of authority. Therefore, for every authority an equal accountability is attached. Differences between Authority and Responsibility 116 CU IDOL SELF LEARNING MATERIAL (SLM)

Authority Responsibility It is the legal right of a person or a It is the obligation of subordinate to perform the work superior to command his subordinates. assigned to him. Authority is attached to the position of Responsibility arises out of superior-subordinate a superior in concern. relationship in which subordinate agrees to carry out duty given to him. Authority can be delegated by a Responsibility cannot be shifted and is absolute superior to a subordinate It flows from top to bottom. It flows from bottom to top. SUMMARY The unit emphasizes that delegation of authority is a technique of management used to get the things done through others. Delegation and authority are confined to manager and subordinates. When a manager delegates authority, the control remains in the hand of the manager in order to supervise the activities of subordinates. Also, performance has an effect in the process of delegation of authority. The management technique of delegation of authority is explained for its meaning and few definitions are provided. The unit explains the meaning and concept of authority, responsibility and accountability which are important in managing an organization. KEY WORDS/ABBREVIATIONS • Authority: The term authority is commonly understood as the right of full power or the right to command. It is the link between a superior and his/her subordinate. Authority creates and develops superior-subordinates relationship. • Responsibility: Responsibility is the obligation of an individual to carry out assigned activities to the best of his or her ability” 117 CU IDOL SELF LEARNING MATERIAL (SLM)

• Delegation: Delegation means assigning work to others and giving them authority to do it. Comment [WU1]: Needs to be changed to • Lateral Delegation: Delegation means assigning work to others and giving them authority to Authority,Responsibility, Delegation,Lateral Delegation. do it. LEARNING ACTIVITY 1. State definition of delegation function of management ………………………………………………………………………………………………………………………… ………………………………………………………………………………………………………………………… 2 State the concepts in delegation of authority ………………………………………………………………………………………………………………………… ………………………………………………………………………………………………………………………… UNIT END QUESTIONS (MCQ AND DESCRIPTIVE) A. Descriptive Types Questions 1. Explain concept of delegating authority? 2. Differentiate between Authority & responsibility. 3. What is your viewpoint on delegation of operating duties or delegation of authorities and why? 4. Delegation as an alone functions beneficial? If not, suggest some ways to turn those demerits into merits. 5. What do you think leads to the other – authority/accountability and why? 6. List down characteristics of delegation. Explain benefits and issues related to delegation. B. Multiple Choice Questions 118 1. Delegation of authority is confined to a. Stakeholders and the organization b. Top management and low-level employees c. Managers and customers d. Managers and employees e. All of the above 2. Authority based on skills, knowledge and competence is known as a. Authority based on position b. Competence theory c. Formal source of authority d. Environmental sources of authority e. All of the above CU IDOL SELF LEARNING MATERIAL (SLM)

3. The obligation of a subordinate to properly perform the assigned duty a. Responsibility b. Accountability c. Power d. Knowledge e. All of the above 4. In organizations the flow of authority is always a. Bottom to top b. Top to bottom c. Lateral (among peers) d. Decided by CEO e. All of the above 5. In order to take delegation of authority effective the manager must, a. Choose the right task for delegating b. Assess the skills of subordinates c. Provide clear directions d. Monitor the work in progress e. All of the above Answer 1. d) 2. b) 3. a) 4. b) 5. e) REFERENCES Koontz, O Donnel and Weirich. (2001). Principles of Management. New Delhi: Tata McGraw Hill Publishing Company. Chopra, R.K. (2005). Principles & Practices of Management. New Delhi: Sun India Publication. Tripathi, P.C., and Reddy, P.N. (2006). Principles & Practices of Management. New Delhi: Tata McGraw Hill Publishing Company Elhance D.N. and Agarwal R.D., Delegation of Authority, Bombay, Progressive, 138,1975. Kakar S, Authority Pattern and Subordinate Behaviour in Indian Organisations, Administrative Science Quarterly, September, 1971. 119 CU IDOL SELF LEARNING MATERIAL (SLM)

Lotia Chandrakant, Management Problems of Public Sector in India, Bombay, Manaktalas, P: 60, 1967. Manjula V Malimath, Dynamics of Power in Organisational Effectiveness, Manak Publications. Mintzberg, Henry, The Structuring of Organisations, Englewood Cliffs, New Jersey: Prentice- Hall, Incorporated, 1979. Peters, Thomas J., and Waterman, Robert H. Jr., In Search of Excellence: Lessons from America's Best-Run Companies, New York: Harper & Row Publishers, 1982. http://ezinearticles.com/?Authority-Vs-Power&id=3784778 http://humanresources.about.com/cs/manageperformance/a/delegation.htm http://www.mindtools.com/pages/article/newLDR_98.htm 120 CU IDOL SELF LEARNING MATERIAL (SLM)

UNIT–8 STAFFING Structure Learning Objectives Introduction Meaning Nature of Staffing Process Importance of Staffing Staffing Process: Introduction to training and development Assessment of Training Needs: Training and Development Methods Evaluation of Training and Development: Summary Key Words/Abbreviations Learning Activity Unit End Questions (MCQ and Descriptive) 8.10.References LEARNING OBJECTIVES After studying this unit, you will be able to: • State the meaning of staffing • Explain nature of staffing • Discuss importance of staffing INTRODUCTION Every organization requires a number of persons for taking up different positions. The positions are created through the process of organization and their occupants help in achieving the business objectives. The persons occupying different positions should have the ability to meet their requirements. Staffing basically involves matching jobs and individuals. It may be defined as filling and keeping filled positions in the organization structure. This may require functions like manpower planning, recruitment, selection, training, development, performance appraisal, transfers, promotions etc. It is clear that staffing must be closely linked to organizing, that is, the setting up of intentional 121 CU IDOL SELF LEARNING MATERIAL (SLM)

structures of roles and positions. Staffing involves making people suitable to jobs while organizing involves creation of job. Staffing is considered to be the management of managers while personnel management involves plans, policies and procedures for operative positions. It is taken to be a separate function of management. Staffing involves specialized knowledge and approach and allows more emphasis on human resource and its proper selection, training and development. Staffing refers to the managerial function of attracting, acquiring, activating, developing and maintaining human resources for achieving organizational goals efficiently. MEANING \"Staffing may be defined as the managerial function of employing and developing human resources for carrying out the various managerial and non-managerial activities in the Stalling and Directing organisation. The function is concerned with attracting, acquiring and activating the human resources for achieving organisational goals. Staffing also involves upgrading the quality and usefulness of members of the organisation with a view to get higher performance from them. The staffing function includes such activities as manpower or human resources planning, ' recruitment, selection, placement, training and development, remuneration, performance appraisal, promotion, transfers and so on. In many organisations, most of the above activities are handled by the personnel management or human resources management department. The basic responsibility for staffing decisions and initiatives is that of line managers. However, the personnel management department provides the needed expert advisory services to line managers in order to enable them to do their function more effectively. Often, the personnel management department also handles the administrative aspects of staffing. Staffing is a continuous function of managers. This is because the organisation's need to retain and maintain its personnel is a never-ending process. Managers have to keep a regular watch on the size and composition of personnel needed by the organisation. They have also to take care of the staffing needs as the organisation expands its activities and as new departments and work units are added. The on-going nature of the staffing function is self-evident to the extent that the nurturing and development of people is a constant concern of managers. Also, at any point of time, some people will be leaving, retiring, getting promotions or transferred. The vacancies thus caused have to be filled up. NATURE OF STAFFING 1. Staffing is an important managerial function- Staffing function is the most important managerial act along with planning, organizing, directing and controlling. The operations of these four functions depend upon the manpower which is available through staffing function. 2. Staffing is a pervasive activity- As staffing function is carried out by all mangers and in all types of concerns where business activities are carried out. 122 CU IDOL SELF LEARNING MATERIAL (SLM)

3. Staffing is a continuous activity- This is because staffing function continues throughout the life of an organization due to the transfers and promotions that take place. 4. The basis of staffing function is efficient management of personnel’s- Human resources can be efficiently managed by a system or proper procedure, that is, recruitment, selection, placement, training and development, providing remuneration, etc. 5. Staffing helps in placing right men at the right job. It can be done effectively through proper recruitment procedures and then finally selecting the most suitable candidate as per the job requirements. 6. Staffing is performed by all managers depending upon the nature of business, size of the company, qualifications and skills of managers, etc. In small companies, the top management generally performs this function. In medium and small-scale enterprise, it is performed especially by the personnel department of that concern. 8.3.1 Process The purpose of staffing is to employ most suitable and competent persons as per the requirements of the organization. With this aim in view the following staff process is followed: 1. Estimating manpower needs: The first thing in staffing process is to estimate manpower needs. These needs are influenced by the type and size of the organization. Total manpower requirements are properly assessed. The requirements for human beings are compared with that of the persons already available in the organization. 2. Recruitment and selection of staff: Recruitment is the process of searching prospective employees and persuading them to apply in the organization. Selection is the procedure of spotting most suitable candidates out of those who are interested to get employment in the enterprise. The purpose of recruitment and selection is to employing right man for the right job. 3. Training and development: Training is meant to improve the skill and knowledge of employees. It is beneficial to both employer and employees. A well-trained worker improves his efficiency. A formal training will avoid the risk of trial and error and will also minimize the cost and wastage involved in training. Development refers to the training of managerial staff. Through development, managerial staff does not increase its capabilities to perform the present work but also enhances their ability to meet challenges in future. 4. Promotion and transfer: Employees are promoted to higher ranks on the basis of their merit and seniority. Staffing also involves transfer of persons from one job to another, from one place to another place to another on the basis of their ability, competence and ability. Remuneration: Remuneration is paid for the services of labour. Employee motivation mainly depends upon the wage and salary structure prevalent in an organization. Employees should be paid fair remuneration so that they feel encouraged to contribute maximum in their efforts. 6. Performance appraisal: After selecting and training an employer for a particular job, management would like to see how he performs high work. Performance appraisal is a systematic evaluation of employee’s contribution to 123 CU IDOL SELF LEARNING MATERIAL (SLM)

the organization in performance of their jobs. Not only qualities but deficiencies are also evaluated to improve the performance of employees. IMPORTANCE OF STAFFING The importance of the staffing function stems from its relationship with other functions, without people or personnel, organisations are empty entities which cannot move a bit in the achievement of their objectives. The function of planning, organising, direction and control become non-starters without managers and other members of the organisation. The effectiveness of the other managerial functions depends on the efficiency with which staffing function is done. In organisation which is in a position to hire, retain and develop the right quality of people will be in a position to take full advantage of opportunities of growth and verification. An organization is strong to the extent that its members are strong in their abilities, skills and efforts to do things and to get things done. It’s a well- recognised fact that all the physical, financial and other resources of the organisation have to be efficiently allocated and utilised by the managers and others who form part of its staff. Indeed, human resources of an organisation are its most valuable assets and give it a distinct advantage over other organisations. The staffing function takes care of the need for building a sound organisation. Organisations greatly differ in the quality and competence of their members. This reality is to be traced to the swing function. It is the staffing function which injects life and action into the organisation and makes its functioning possible. Some organisations may somehow be able to attract right talent because of such factors as high remuneration, perquisites, security of tenure and so on. But the talent so attracted has to - be properly 'preserved and developed through the staffing function. Otherwise, human assets \" will turn into liabilities and burdens on the organisation. Staffing Process: Just like the other managerial functions, the function of staffing may also be viewed as a process consisting of certain well recognised activities. These activities (also called elements) include human resource planning, recruitment, selection, placement, orientation, training and development, promotions and transfers, remuneration, performance evaluation and so on. All these elements, when arranged sequentially may be regarded as the steps or phases of the staffing process. 1. Manpower requirements- The very first step in staffing is to plan the manpower inventory required by a concern in order to match them with the job requirements and demands. Therefore, it involves forecasting and determining the future manpower needs of the concern. 2. Recruitment- Once the requirements are notified, the concern invites and solicits applications according to the invitations made to the desirable candidates. 3. Selection- This is the screening step of staffing in which the solicited applications are screened out and suitable candidates are appointed as per the requirements. 124 CU IDOL SELF LEARNING MATERIAL (SLM)

4. Orientation and Placement- Once screening takes place, the appointed candidates are made familiar to the work units and work environment through the orientation programmes. Placement takes place by putting right man on the right job. 5. Training and Development- Training is a part of incentives given to the workers in order to develop and grow them within the concern. Training is generally given according to the nature of activities and scope of expansion in it. Along with it, the workers are developed by providing them extra benefits of in-depth knowledge of their functional areas. Development also includes giving them key and important jobs as a test or examination in order to analyse their performances. 6. Remuneration- It is a kind of compensation provided monetarily to the employees for their work performances. This is given according to the nature of job- skilled or unskilled, physical or mental, etc. Remuneration forms an important monetary incentive for the employees. 7. Performance Evaluation- In order to keep a track or record of the behaviour, attitudes as well as opinions of the workers towards their jobs. For this regular assessment is done to evaluate and supervise different work units in a concern. It is basically concerning to know the development cycle and growth patterns of the employees in a concern. 8. Promotion and transfer- Promotion is said to be a non- monetary incentive in which the worker is shifted from a higher job demanding bigger responsibilities as well as shifting the workers and transferring them to different work units and branches of the same organization. INTRODUCTION TO TRAINING & DEVELOPMENT Training is an integral part of the staffing function. It refers to improving a person’s ability to do a particular job and to contribute to organisational goals. After selecting a candidate, managers have to assess the new person’s ability to do the job. In other words, after an individual is chosen for hiring or promotion, the next step is often some form of training. In human resource management, the term ‘training’ usually refers to teaching operational or technical employees how to do the job for which they were hired. Development refers to teaching managers and professionals the skills needed for both present and future jobs. Most organisations provide regular development pro•grammes for managers. Assessment of Training Needs: It is of paramount importance to determine whether a need for training or development exists and then to plan an appropriate programme if it is needed. Various problems arise at the workplace which are due to low labour productivity such as lack of motivation, ageing equipment, poor supervision, inefficient work design, or a deficiency of skills and knowledge. Only the last could be remedied by training the office workers. 125 CU IDOL SELF LEARNING MATERIAL (SLM)

If, after careful investigation, the problem does seem to require training, the personnel manager should thoroughly assess the present level of skill and knowledge and then define the desired level of skill and knowledge in concrete, measurable form. After the training is completed, trainee performance can be assessed against the objectives that were set prior to training. Training programmes should always be evaluated, because they are costly and should be modified or discontin•ued if they are not effective. Training and Development Methods A person can be trained in class room and then asked to join the work force. So, during the training period he is off the job and does not make any direct contribution to the company. However, the most celebrated method is on-the-job training (OJT). It is perhaps the most widely used method. In this case the person is trained while the job is being performed; one learns about the job by watching a fellow-worker. The trainee is taken to the job site and instructed in work methods by the manager or by skilled (experience) employees. Such training is quite appropriate for relatively unskilled jobs but is not that satisfactory when mistakes can damage machinery, hold up other operations, or cause anger to customers. Most of these problems can be eliminated by making on-the-job training more systematic. The job instruction training (JFT) system, developed during World War II and refined and modified later, attempts to do this. Basically, it involves training managers and supervisors, who, in their turn, train the people at the shop floor level (i.e., people doing the work). OJT also works well for technical specialists like the computer programmers. The various types of skills needed by these jobs require the application, of techniques to specialised problems and training in best imparted by doing the actual work. Another method is vestibule training, also known as simulation training. It seeks to improve a person’s skills under controlled (artificial) conditions that simulate actual work: a simulated work environment is created; the trainee is placed in the environment to train without any pressure (e.g., the need to meet production figures). For many service jobs where a number of people doing the same kind of work need to be trained such as those of bank tellers or insurance claim adjusters, programmed instruction methods are used. This method is directed toward improving a person’s skills through a step-by-step sequence that is designed to build gradually the necessary work skills by teaching one part of the job at a time. The final training method is modelling training. It is a form of OJT. It refers to coaching of the employee by the supervisor. It has achieved considerable success in recent years. Coaching has the following basic steps: 1. Discussion of the process by the supervisor. 126 CU IDOL SELF LEARNING MATERIAL (SLM)

2. Demonstration of the task by the supervisor. 3. Individual performance by the trainee. 4. Feedback following the performance. People are trained by observing and practising the correct skills with their immediate supervisor in a controlled experiment, getting insights into the behaviour that lead to improved performance. It is an informal, one-to-one teaching correspondence (relationship) between the manager and the employee. Modelling training is used extensively to train managers and to correct poor work habits on the job. In other words, it has twin goals: (1) To identify and encourage a positive performance and (2) To identify and remove barriers to negative performance. Modelling training is perhaps the most effective training method used in the world today. In a typical modelling training session, a common problem is placed before a group of people. They briefly discuss why the problem is to be treated as important and how it affects their performance. The training actually involves learning how to solve the problems. The most important point to be said in favour of modelling training is that it incorporates all of the ideas an effective training programme should have. The following quote from C. R. Anderson is quite relevant in this context: “It deals with specific work problems and puts much of the responsibility for training directly on the people who must learn. In a sense, managers train themselves, but with guidance. It also gives trainers the tools and techniques needed for teaching. The skills that are learned can be directly applied to the job. Finally, modelling training can help determine whether new people are suited to their jobs. Although training can never be a substitute for good selection (getting people with good potential is always necessary), effective training programmes like modelling should help determine where that potential is best directed.” To sum up: Training and development programmes seek to meet the organisation’s need for people. Both are directed toward improving the performance of individuals and, through it, that of organisations. They reward ambition and act as incentives for a greater security, to reach a higher level of job satisfaction and to enhance confidence and self-esteem. Organisations that spend the time, money and effort to develop and sponsor (or conduct) training and development programmes stand a strong chance of being rewarded with a growing pool of talent available for greater responsibilities and capable of better achievements. While training is job-specific, development is career-specific. In this section we describe various types of career development programmes and effective developmental interviews. 127 CU IDOL SELF LEARNING MATERIAL (SLM)

Career counselling, advising the individual about his career possibilities and career progression is the first major type of career development programme. It can occur at various times, including the employment hiring interview, a career-counselling training programme and the performance appraisal interview. This counselling is used not only with employees whose potential is high but also with those who are likely to be devoted. A career path is a series of jobs through which an individual will proceed if performance remains high and organisational positions open up. Sometimes career paths involve job rotation, moving an individual through a series of jobs temporarily so that he becomes acquainted with the overall activities of major subsystems or the entire organisation. Whatever the approach, the use of career paths allows the individual to acquire the necessary experience for future jobs. Many large organisations now employ a human resources file, a computerized inventory of backgrounds and skills that management uses to identify individuals capable of performing the activities in a vacated position. Many training programmes focus on development activities. They address issues such as career management for women and minority group members and refresher courses for mid-career managers. Several organisations even sponsor placement programmes for managers who are leaving the organi•sation. In most instances these terminations occur not because of poor performance but because of organisational constraints. In our placement programmes the company provides not only career counselling but an office and salary for a specified time while manager seeks a new position. A distinctive training programme with developmental trappings is the intern programme. Typically, a recent graduate is hired as a management trainee and for one or two years he receives specific training, some involving classroom instruction, in the various activities performed by the organisation. Intern programmes can, in fact, be more helpful for career development than a graduate degree in some fields. At present, perhaps the most popular programme that can be used for selection or development is the assessment centre, in order to help management, evaluate candidates’ managerial potential. The concept of an assessment centre was drawn from the procedures of the elite Schutzstaffel (SS) guard in Germany during the 1930s. To select the best applicants for this military force, management put the candidates through a series of simulated exercises, group discussion sessions and extended psychological interviews. Psychologists then evaluated a person’s overall potential as an SS officer. In recent years management has used the assessment centre both as a selection technique and a developmental programme, as its major objective is to realize person’s full potential within a specific organisation. Each centre should be tailored to the needs of the organisation sponsoring it. Ronald Burke, William Weitzel and Tamara Weir have focused on a related issue — the charac•teristics of successful appraisal and developmental interviews. Their empirical studies have 128 CU IDOL SELF LEARNING MATERIAL (SLM)

com•pared successful and unsuccessful interviews and they indicate that the following characteristics are important if the subordinate is to benefit from the appraisal or developmental interview: • A significant amount of employee participation in the programme through joint setting of goals between the superior and subordinate. • A helpful supervisor genuinely interested in the subordinates. • The removal of job problems hampering the employee’s performance. • The setting of future performance targets. • The involvement of the subordinate in planning self-development activities. • An unthreatening atmosphere. Evaluation of Training and Development: Training and development programmes should always be evaluated. Trainees may say they enjoyed the training and learned a lot, but the true test is whether their job performance is better after their training than before. SUMMARY Staffing refers to the managed function of employing and developing human resources for carrying out the various managerial and non-managerial activities in an organisation. Staffing also involves upgrading the quality and usefulness of members of the organisation with a view to get higher performance from them. The function includes such activities as human resource planning, recruitment, selection, placement and orientation training and development, remuneration, performance appraisal, promotion and transfer. The importance of the staffing function stems from its relationship with other functions. Without people or personnel organisations are empty entities which cannot move a bit in the achievement of their objectives. The staffing function, like other managerial functions, may be viewed as process consisting of certain well recognised steps or activities. These include manpower planning, recruitment, selection, placement and orientation, training and development, promotion, transfer, remuneration, performance evaluation, etc. KEY WORDS/ABBREVIATIONS • Staffing: is an operation of recruiting the employees by evaluating their skills, knowledge and then offering them specific job roles accordingly. • On the Job Training: The On-the-Job Training is a technique wherein the workers, i.e., operative staff, is given the direct instructions to perform their jobs on the actual work floor. • Remuneration: Remuneration is payment or compensation received for services or employment. This includes a base salary and any bonuses or other economic benefits that an employee or executive receives during employment. 129 CU IDOL SELF LEARNING MATERIAL (SLM)

• Training : Training refers to the teaching and learning activities carried on for the primary purpose of helping members of an organization acquire and apply the knowledge, skills, abilities, and attitudes needed by a particular job and organization. • Orientation : Orientation is the planned introduction of new employees to their jobs, coworkers, and the organization. • Placement: Placement is a process of assigning a specific job to each of the selected candidates. It involves assigning a specific rank and responsibility to an individual. It implies matching the requirements of a job with the qualifications of the candidate. 8.8 LEARNING ACTIVITY 1. There is no more important resource than human resources. Do you agree? Why? ……………………………………………………………………………………………………….… ……………………………………………………………………………………………..................... 2. Which of the following statements are True and which are False. 1) Staffing means recruitment, selection and placement of staffing ii) Staffing decisions are time responsibility of line managers. iii) All staffing activities are carried out in the personnel management division. iv) The staffing process involves a number of sequential activities. V) Staffing is a one-time function. ……………………………………………………………………………………………………….… ……………………………………………………………………………………………..................... 8.9 UNIT END QUESTIONS (MCQ AND DESCRIPTIVE) A. Descriptive Types Question 1. What is Staffing? 2. State nature of staffing. 3. Describe the importance of staffing function in an organisation. 4. Explain staffing process. 5. “Training is an integral part of staffing function” Comment. B. Multiple Choice Questions 130 1. Personnel Management Department provides ....................... to line managers a. Export, advisory, services b. Recruitment, selection, planning CU IDOL SELF LEARNING MATERIAL (SLM)

c. Resources, plan, budget d. None of these 2. The staffing function takes care of the need for building a sound organisation. a. Business b. Human resource c. Process oriented d. None of these 3. The human resources of an organisation are its most valuable .................... a. Possession b. resource c. Assets d. None of these 4. The staffing function is concerned with ........................ and ...........................human resources. a. Attracting, acquiring activating b. Evolving, recruiting c. Selection, Training development d. None of these 5. Staffing is a ..........................function of managers a. formal b. informal c. fixed d. Continuous Answer 1. a) 2. b) 3. c) 4. a) 5. d) REFERENCES Koontz, O Donnel and Weirich. (2001). Principles of Management. New Delhi: Tata McGraw Hill Publishing Company. Chopra, R.K. (2005). Principles & Practices of Management. New Delhi: Sun India Publication. 131 CU IDOL SELF LEARNING MATERIAL (SLM)

Tripathi, P.C., and Reddy, P.N. (2006). Principles & Practices of Management. New Delhi: Tata McGraw Hill Publishing Company G.R. Terry, Principles of Management, R. D. Irwin, NY, 1960. https://www.managementstudyguide.com/staffing-function.htm https://www.businessmanagementideas.com/organisation/staffing/13180 UNIT-9 MOTIVATION Structure Learning Objectives Introduction Meaning Of Motivation Importance of motivation Theories of Motivation Maslow’s Hierarchy of Needs Theory Herzberg’s Two-Factor Theory of Motivation Modern Theories of Motivation Goal Setting Theory of Motivation TYPES OF MOTIVATION Summary Key Words/Abbreviations Learning Activity Unit End Questions (MCQ and Descriptive) References LEARNING OBJECTIVES After studying this unit, you will be able to: • Explain the concept of motivation and the process of motivation • Describe the significance of motivation in present day organisation • Analyse some of the theories of motivation compare Maslow's Need Hierarchy Theory with Herzberg's Motivation Hygiene Theory • Explain the importance of job enrichment and its limitations in work motivation 132 CU IDOL SELF LEARNING MATERIAL (SLM)

INTRODUCTION In any organisation, all employees do not perform their work with equal efficiency. Some are found to be more efficient than others. The difference in their performance can be attributed either to differences in their abilities or in their urge or willingness to perform as best as possible. Given the ability and skill, it is the motive of employees which determines whether they will be more or less efficient. Employee motivation i.e. bringing about an inner urge or desire in employees to work to the best of their ability is an important function of management. In this unit we shall deal with the concept and process of motivation its importance, theories of motivation and the types of incentives which may be provided to motivate people. MEANING OF MOTIVATION Definition: Some of the widely quoted definitions are given below: According to Gray Starke, \"Motivation is the result of processes, internal or external to the individual, that arouse enthusiasm and persistence to pursue a certain course of action.\" According to Stephen P Robbins, \"We define motivation as the willingness to exert high levels of effort toward organisational goals, conditioned by the effort's ability to satisfy some individual needs.\" According to S. Zedeck and M. Blood, \" Motivation is a predisposition to act in a specific goal- directed way.\" According to Atkinson J.W, \"(Motivation is) the immediate influences on the direction, vigour and persistence of action.\" According to S.W Gellerman, \"(Motivation is) steering one's actions toward certain goals and committing a certain part of one's energies to reach them.\" According to M.R. Jones, \"(Motivation is) how behaviour gets started, is energized, is sustained, is directed, is stopped and what kind of subjective reaction is present in the organism while all these are going on.\" Meaning: Motivation may be defined as the complex of forces inspiring a person at work to intensify his willingness to use his maximum capabilities for the achievement of certain objectives. Motivation is something that motivates a person into action and induces him to continue in the course of action enthusiastically. It determines the behaviour of a person at work. According to Dalton E. McFarland \"Motivation refers to the way in which urges, drives, desires, aspirations, striving, or needs direct, control or explain the behaviour of human being.\" The term 'motivation' is derived from the word 133 CU IDOL SELF LEARNING MATERIAL (SLM)

'motive'. Motive may be defined as needs, wants, drives or impulses within the individual. Motives are expressions of a person's needs and hence they are personal and internal. In this context, the term 'need' should not be associated with urgency or any pressing desire for something. It simply means something within an individual that prompts him to action. Motives or needs are 'whys' of behaviour. They start and maintain activity and determine the general direction of the person. Motives give direction to human behaviour because they are directed towards certain 'goals' which may be conscious or sub-conscious. Motives or needs of a person are the starting point in the motivation process. Motives are directed towards the achievement of certain goals which in turn determine the behaviour of individuals, this behaviour ultimately leads to goal directed activities such as preparing food and a goal activity such as eating food. In other words, unsatisfied needs result in tension within an individual and engage him in search for the way to relieve this tension. He will develop certain goals for himself and try to achieve them. If he is successful in his attempt, certain other needs will emerge which will lead to setting a new goal. But if he is unsuccessful be will engage himself in either constructive or defensive behaviour. This process keeps on working within an individual IMPORTANCE OF MOTIVATION Motivation is a very important for an organization because of the following benefits it provides: 1. Puts human resources into action Every concern requires physical, financial and human resources to accomplish the goals. It is through motivation that the human resources can be utilized by making full use of it. This can be done by building willingness in employees to work. This will help the enterprise in securing best possible utilization of resources. 2. Improves level of efficiency of employees The level of a subordinate or an employee does not only depend upon his qualifications and abilities. For getting best of his work performance, the gap between ability and willingness has to be filled which helps in improving the level of performance of subordinates. This will result into- a. Increase in productivity, b. Reducing cost of operations, and c. Improving overall efficiency. 3. Leads to achievement of organizational goals The goals of an enterprise can be achieved only when the following factors take place- a. There is best possible utilization of resources, b. There is a co-operative work environment, c. The employees are goal-directed and they act in a purposive manner, 134 CU IDOL SELF LEARNING MATERIAL (SLM)

d. Goals can be achieved if co-ordination and co-operation takes place simultaneously which can be effectively done through motivation. 4. Builds friendly relationship Motivation is an important factor which brings employees satisfaction. This can be done by keeping into mind and framing an incentive plan for the benefit of the employees. This could initiate the following things: a. Monetary and non-monetary incentives, b. Promotion opportunities for employees, c. Disincentives for inefficient employees. In order to build a cordial, friendly atmosphere in a concern, the above steps should be taken by a manager. This would help in: • Effective co-operation which brings stability, • Industrial dispute and unrest in employees will reduce, • The employees will be adaptable to the changes and there will be no resistance to the change, • This will help in providing a smooth and sound concern in which individual interests will coincide with the organizational interests, • This will result in profit maximization through increased productivity. 5. Leads to stability of work force Stability of workforce is very important from the point of view of reputation and goodwill of a concern. The employees can remain loyal to the enterprise only when they have a feeling of participation in the management. The skills and efficiency of employees will always be of advantage to employees as well as employees. This will lead to a good public image in the market which will attract competent and qualified people into a concern. As it is said, “Old is gold” which suffices with the role of motivation here, the older the people, more the experience and their adjustment into a concern which can be of benefit to the enterprise. From the above discussion, we can say that motivation is an internal feeling which can be understood only by manager since he is in close contact with the employees. Needs, wants and desires are inter- related and they are the driving force to act. These needs can be understood by the manager and he can frame motivation plans accordingly. We can say that motivation therefore is a continuous process since motivation process is based on needs which are unlimited. The process has to be continued throughout. We can summarize by saying that motivation is important both to an individual and a business. 135 CU IDOL SELF LEARNING MATERIAL (SLM)

Motivation is important to an individual as: 1. Motivation will help him achieve his personal goals. 2. If an individual is motivated, he will have job satisfaction. 3. Motivation will help in self-development of individual. 4. An individual would always gain by working with a dynamic team. Similarly, motivation is important to a business as: 1. The more motivated the employees are, the more empowered the team is. 2. The more is the team work and individual employee contribution, more profitable and successful is the business. 3. During period of amendments, there will be more adaptability and creativity. 4. Motivation will lead to an optimistic and challenging attitude at work place. THEORIES OF MOTIVATION The motivation concepts were mainly developed around 1950’s. Three main theories were made during this period. These three classical theories are- • Maslow’s hierarchy of needs theory • Herzberg’s Two factor theory • Theory X and Theory Y These theories are building blocks of the contemporary theories developed later. The working mangers and learned professionals till date use these classical theories to explain the concept of employee motivation. 9.4.1 Maslow’s Hierarchy of Needs Theory Abraham Maslow is well renowned for proposing the Hierarchy of Needs Theory in 1943. This theory is a classical depiction of human motivation. This theory is based on the assumption that there is a hierarchy of five needs within each individual. The urgency of these needs varies. These five needs are as follows- Physiological needs- These are the basic needs of air, water, food, clothing and shelter. In other words, physiological needs are the needs for basic amenities of life. Safety needs- Safety needs include physical, environmental and emotional safety and protection. For instance- Job security, financial security, protection from animals, family security, health security, etc. 136 CU IDOL SELF LEARNING MATERIAL (SLM)

Social needs- Social needs include the need for love, affection, care, belongingness, and friendship. Esteem needs- Esteem needs are of two types: internal esteem needs (self- respect, confidence, competence, achievement and freedom) and external esteem needs (recognition, power, status, attention and admiration). Self-actualization need- This include the urge to become what you are capable of becoming / what you have the potential to become. It includes the need for growth and self-contentment. It also includes desire for gaining more knowledge, social- service, creativity and being aesthetic. The self- actualization needs are never fully satiable. As an individual grows psychologically, opportunities keep cropping up to continue growing. According to Maslow, individuals are motivated by unsatisfied needs. As each of these needs is significantly satisfied, it drives and forces the next need to emerge. Maslow grouped the five needs into two categories - Higher-order needs and Lower-order needs. The physiological and the safety needs constituted the lower-order needs. These lower-order needs are mainly satisfied externally. The social, esteem, and self-actualization needs constituted the higher-order needs. These higher-order needs are generally satisfied internally, i.e., within an individual. Thus, we can conclude that during boom period, the employees lower-order needs are significantly met. Figure 9.1: Maslow’s Need Hierarchy Model Implications of Maslow’s Hierarchy of Needs Theory for Managers As far as the physiological needs are concerned, the managers should give employees appropriate salaries to purchase the basic necessities of life. Breaks and eating opportunities should be given to employees. As far as the safety needs are concerned, the managers should provide the employees job security, safe and hygienic work environment, and retirement benefits so as to retain them. As far as social needs are concerned, the management should encourage teamwork and organize social events. 137 CU IDOL SELF LEARNING MATERIAL (SLM)

As far as esteem needs are concerned, the managers can appreciate and reward employees on accomplishing and exceeding their targets. The management can give the deserved employee higher job rank / position in the organization. As far as self-actualization needs are concerned, the managers can give the employees challenging jobs in which the employees’ skills and competencies are fully utilized. Moreover, growth opportunities can be given to them so that they can reach the peak. The managers must identify the need level at which the employee is existing and then those needs can be utilized as push for motivation. Limitations of Maslow’s Theory 1. It is essential to note that not all employees are governed by same set of needs. Different individuals may be driven by different needs at same point of time. It is always the most powerful unsatisfied need that motivates an individual. 2. The theory is not empirically supported. 3. The theory is not applicable in case of starving artist as even if the artist’s basic needs are not satisfied, he will still strive for recognition and achievement. 9.4.2 Herzberg’s Two-Factor Theory of Motivation In 1959, Frederick Herzberg, a behavioral scientist proposed a two-factor theory or the motivator- hygiene theory. According to Herzberg, there are some job factors that result in satisfaction while there are other job factors that prevent dissatisfaction. According to Herzberg, the opposite of “Satisfaction” is “No satisfaction” and the opposite of “Dissatisfaction” is “No Dissatisfaction”. Figure 9.2: Herzberg’s view of satisfaction and dissatisfaction Herzberg classified these job factors into two categories- A Hygiene factors- Hygiene factors are those job factors which are essential for existence of motivation at workplace. These do not lead to positive satisfaction for long-term. But if these factors are absent / if these factors are non-existent at workplace, then they lead to dissatisfaction. In other words, hygiene factors are those factors which when adequate/reasonable in a job, pacify the 138 CU IDOL SELF LEARNING MATERIAL (SLM)

employees and do not make them dissatisfied. These factors are extrinsic to work. Hygiene factors are also called as dissatisfiers or maintenance factors as they are required to avoid dissatisfaction. These factors describe the job environment/scenario. The hygiene factors symbolized the physiological needs which the individuals wanted and expected to be fulfilled. Hygiene factors include: • Pay - The pay or salary structure should be appropriate and reasonable. It must be equal and competitive to those in the same industry in the same domain. • Company Policies and administrative policies - The company policies should not be too rigid. They should be fair and clear. It should include flexible working hours, dress code, breaks, vacation, etc. • Fringe benefits - The employees should be offered health care plans (Mediclaim), benefits for the family members, employee help programmes, etc. • Physical Working conditions - The working conditions should be safe, clean and hygienic. The work equipment’s should be updated and well-maintained. • Status - The employees’ status within the organization should be familiar and retained. • Interpersonal relations - The relationship of the employees with his peers, superiors and subordinates should be appropriate and acceptable. There should be no conflict or humiliation element present. • Job Security - The organization must provide job security to the employees. B Motivational factors- According to Herzberg, the hygiene factors cannot be regarded as motivators. The motivational factors yield positive satisfaction. These factors are inherent to work. These factors motivate the employees for a superior performance. These factors are called satisfiers. These are factors involved in performing the job. Employees find these factors intrinsically rewarding. The motivators symbolized the psychological needs that were perceived as an additional benefit. Motivational factors include: • Recognition - The employees should be praised and recognized for their accomplishments by the managers. • Sense of achievement - The employees must have a sense of achievement. This depends on the job. There must be a fruit of some sort in the job. • Growth and promotional opportunities - There must be growth and advancement opportunities in an organization to motivate the employees to perform well. • Responsibility - The employees must hold themselves responsible for the work. The managers should give them ownership of the work. They should minimize control but retain accountability. 139 CU IDOL SELF LEARNING MATERIAL (SLM)

• Meaningfulness of the work - The work itself should be meaningful, interesting and challenging for the employee to perform and to get motivated. Limitations of Two-Factor Theory The two-factor theory is not free from limitations: 1. The two-factor theory overlooks situational variables. 2. Herzberg assumed a correlation between satisfaction and productivity. But the research conducted by Herzberg stressed upon satisfaction and ignored productivity. 3. The theory’s reliability is uncertain. Analysis has to be made by the raters. The raters may spoil the findings by analysing same response in different manner. 4. No comprehensive measure of satisfaction was used. An employee may find his job acceptable despite the fact that he may hate/object part of his job. 5. The two-factor theory is not free from bias as it is based on the natural reaction of employees when they are enquired the sources of satisfaction and dissatisfaction at work. They will blame dissatisfaction on the external factors such as salary structure, company policies and peer relationship. Also, the employees will give credit to themselves for the satisfaction factor at work. 6. The theory ignores blue-collar workers. Despite these limitations, Herzberg’s Two-Factor theory is acceptable broadly. Implications of Two-Factor Theory The Two-Factor theory implies that the managers must stress upon guaranteeing the adequacy of the hygiene factors to avoid employee dissatisfaction. Also, the managers must make sure that the work is stimulating and rewarding so that the employees are motivated to work and perform harder and better. This theory emphasizes upon job-enrichment so as to motivate the employees. The job must utilize the employee’s skills and competencies to the maximum. Focusing on the motivational factors can improve work-quality. Theory X and Theory Y In 1960, Douglas McGregor formulated Theory X and Theory Y suggesting two aspects of human behaviour at work, or in other words, two different views of individuals (employees): one of which is negative, called as Theory X and the other is positive, so called as Theory Y. According to McGregor, the perception of managers on the nature of individuals is based on various assumptions. Assumptions of Theory X • An average employee intrinsically does not like work and tries to escape it whenever possible. 140 CU IDOL SELF LEARNING MATERIAL (SLM)

• Since the employee does not want to work, he must be persuaded, compelled, or warned with punishment so as to achieve organizational goals. A close supervision is required on part of managers. The managers adopt a more dictatorial style. • Many employees rank job security on top, and they have little or no aspiration/ ambition. • Employees generally dislike responsibilities. • Employees resist change. • An average employee needs formal direction. Assumptions of Theory Y • Employees can perceive their job as relaxing and normal. They exercise their physical and mental efforts in an inherent manner in their jobs. • Employees may not require only threat, external control and coercion to work, but they can use self-direction and self-control if they are dedicated and sincere to achieve the organizational objectives. • If the job is rewarding and satisfying, then it will result in employees’ loyalty and commitment to organization. • An average employee can learn to admit and recognize the responsibility. In fact, he can even learn to obtain responsibility. • The employees have skills and capabilities. Their logical capabilities should be fully utilized. In other words, the creativity, resourcefulness and innovative potentiality of the employees can be utilized to solve organizational problems. Thus, we can say that Theory X presents a pessimistic view of employees’ nature and behaviour at work, while Theory Y presents an optimistic view of the employees’ nature and behaviour at work. If correlate it with Maslow’s theory, we can say that Theory X is based on the assumption that the employees emphasize on the physiological needs and the safety needs; while Theory X is based on the assumption that the social needs, esteem needs and the self-actualization needs dominate the employees. McGregor views Theory Y to be more valid and reasonable than Theory X. Thus, he encouraged cordial team relations, responsible and stimulating jobs, and participation of all in decision-making process. Implications of Theory X and Theory Y Quite a few organizations use Theory X today. Theory X encourages use of tight control and supervision. It implies that employees are reluctant to organizational changes. Thus, it does not encourage innovation. Many organizations are using Theory Y techniques. Theory Y implies that the managers should create and encourage a work environment which provides opportunities to employees to take initiative and self-direction. Employees should be given opportunities to contribute to organizational 141 CU IDOL SELF LEARNING MATERIAL (SLM)

well-being. Theory Y encourages decentralization of authority, teamwork and participative decision making in an organization. Theory Y searches and discovers the ways in which an employee can make significant contributions in an organization. It harmonizes and matches employees’ needs and aspirations with organizational needs and aspirations. Modern Theories of Motivation We all are familiar with the classical theories of motivation, but they all are not empirically supported. As far as contemporary theories of motivation are concerned, all are well supported with evidences. Some of the contemporary / modern theories of motivation are explained below: • ERG Theory • McClelland’s Theory of Needs • Goal Setting Theory • Reinforcement Theory • Equity Theory of Motivation • Expectancy Theory of Motivation ERG Theory To bring Maslow’s need hierarchy theory of motivation in synchronization with empirical research, Clayton Alderfer redefined it in his own terms. His rework is called as ERG theory of motivation. He re categorized Maslow’s hierarchy of needs into three simpler and broader classes of needs: • Existence needs- These include need for basic material necessities. In short, it includes an individual’s physiological and physical safety needs. • Relatedness needs- These include the aspiration individuals have for maintaining significant interpersonal relationships (be it with family, peers or superiors), getting public fame and recognition. Maslow’s social needs and external component of esteem needs fall under this class of need. • Growth needs- These include need for self-development and personal growth and advancement. Maslow’s self-actualization needs and intrinsic component of esteem needs fall under this category of need. 142 CU IDOL SELF LEARNING MATERIAL (SLM)

Figure 9.3 ERG Theory of Motivation The significance of the three classes of needs may vary for each individual. Difference between Maslow Need Hierarchy Theory and Alderfer’s ERG Theory ERG Theory states that at a given point of time, more than one need may be operational. ERG Theory also shows that if the fulfilment of a higher-level need is subdued, there is an increase in desire for satisfying a lower-level need. According to Maslow, an individual remains at a particular need level until that need is satisfied. While according to ERG theory, if a higher- level need aggravates, an individual may revert to increase the satisfaction of a lower- level need. This is called frustration- regression aspect of ERG theory. For instance- when growth need aggravates, then an individual might be motivated to accomplish the relatedness need and if there are issues in accomplishing relatedness needs, then he might be motivated by the existence needs. Thus, frustration/aggravation can result in regression to a lower-level need. While Maslow’s need hierarchy theory is rigid as it assumes that the needs follow a specific and orderly hierarchy and unless a lower-level need is satisfied, an individual cannot proceed to the higher-level need; ERG Theory of motivation is very flexible as he perceived the needs as a range/variety rather than perceiving them as a hierarchy. According to Alderfer, an individual can work on growth needs even if his existence or relatedness needs remain unsatisfied. Thus, he gives explanation to the issue of “starving artist” who can struggle for growth even if he is hungry. Implications of the ERG Theory Managers must understand that an employee has various needs that must be satisfied at the same time. According to the ERG theory, if the manager concentrates solely on one need at a time, this will not effectively motivate the employee. Also, the frustration- regression aspect of ERG Theory has an added effect on workplace motivation. For instance- if an employee is not provided with growth and advancement opportunities in an organization, he might revert to the relatedness need such as socializing needs and to meet those socializing needs, if the environment or circumstances do not permit, he might revert to the need for money to fulfil those socializing needs. The sooner the 143 CU IDOL SELF LEARNING MATERIAL (SLM)

manager realizes and discovers this, the more immediate steps they will take to fulfil those needs which are frustrated until such time that the employee can again pursue growth. McClelland’s Theory of Needs David McClelland and his associates proposed McClelland’s theory of Needs / Achievement Motivation Theory. This theory states that human behaviour is affected by three needs - Need for Power, Achievement and Affiliation. Need for achievement is the urge to excel, to accomplish in relation to a set of standards, to struggle to achieve success. Need for power is the desire to influence another individual’s behaviour as per your wish. In other words, it is the desire to have control over others and to be influential. Need for affiliation is a need for open and sociable interpersonal relationships. In other words, it is a desire for relationship based on co-operation and mutual understanding. The individuals with high achievement needs are highly motivated by competing and challenging work. They look for promotional opportunities in job. They have a strong urge for feedback on their achievement. Such individuals try to get satisfaction in performing things better. High achievement is directly related to high performance. Individuals who are better and above average performers are highly motivated. They assume responsibility for solving the problems at work. McClelland called such individuals as gamblers as they set challenging targets for themselves and they take deliberate risk to achieve those set targets. Such individuals look for innovative ways of performing job. They perceive achievement of goals as a reward, and value it more than a financial reward. The individuals who are motivated by power have a strong urge to be influential and controlling. They want that their views and ideas should dominate and thus, they want to lead. Such individuals are motivated by the need for reputation and self-esteem. Individuals with greater power and authority will perform better than those possessing less power. Generally, managers with high need for power turn out to be more efficient and successful managers. They are more determined and loyal to the organization they work for. Need for power should not always be taken negatively. It can be viewed as the need to have a positive effect on the organization and to support the organization in achieving its goals. The individuals who are motivated by affiliation have an urge for a friendly and supportive environment. Such individuals are effective performers in a team. These people want to be liked by others. The manager’s ability to make decisions is hampered if they have a high affiliation need as they prefer to be accepted and liked by others, and this weakens their objectivity. Individuals having high affiliation needs prefer working in an environment providing greater personal interaction. Such people have a need to be on the good books of all. They generally cannot be good leaders. 144 CU IDOL SELF LEARNING MATERIAL (SLM)

Goal Setting Theory of Motivation In 1960’s, Edwin Locke put forward the Goal-setting theory of motivation. This theory states that goal setting is essentially linked to task performance. It states that specific and challenging goals along with appropriate feedback contribute to higher and better task performance. In simple words, goals indicate and give direction to an employee about what needs to be done and how much efforts are required to be put in. The important features of goal-setting theory are as follows: • The willingness to work towards attainment of goal is main source of job motivation. Clear, particular and difficult goals are greater motivating factors than easy, general and vague goals. • Specific and clear goals lead to greater output and better performance. Unambiguous, measurable and clear goals accompanied by a deadline for completion avoids misunderstanding. • Goals should be realistic and challenging. This gives an individual a feeling of pride and triumph when he attains them, and sets him up for attainment of next goal. The more challenging the goal, the greater is the reward generally and the more is the passion for achieving it. • Better and appropriate feedback of results directs the employee behaviour and contributes to higher performance than absence of feedback. Feedback is a means of gaining reputation, making clarifications and regulating goal difficulties. It helps employees to work with more involvement and leads to greater job satisfaction. • Employees’ participation in goal is not always desirable. • Participation of setting goal, however, makes goal more acceptable and leads to more involvement. Goal setting theory has certain eventualities such as: • Self-efficiency- Self-efficiency is the individual’s self-confidence and faith that he has potential of performing the task. Higher the level of self-efficiency, greater will be the efforts put in by the individual when they face challenging tasks. While, lower the level of self- efficiency, less will be the efforts put in by the individual or he might even quit while meeting challenges. • Goal commitment- Goal setting theory assumes that the individual is committed to the goal and will not leave the goal. The goal commitment is dependent on the following factors: • Goals are made open, known and broadcasted. 145 CU IDOL SELF LEARNING MATERIAL (SLM)

• Goals should be set-self by individual rather than designated. • Individual’s set goals should be consistent with the organizational goals and vision. Advantages of Goal Setting Theory Goal setting theory is a technique used to raise incentives for employees to complete work quickly and effectively. Goal setting leads to better performance by increasing motivation and efforts, but also through increasing and improving the feedback quality. Limitations of Goal Setting Theory At times, the organizational goals are in conflict with the managerial goals. Goal conflict has a detrimental effect on the performance if it motivates incompatible action drift. Very difficult and complex goals stimulate riskier behaviour. If the employee lacks skills and competencies to perform actions essential for goal, then the goal- setting can fail and lead to undermining of performance. There is no evidence to prove that goal-setting improves job satisfaction. Reinforcement Theory of Motivation Reinforcement theory of motivation was proposed by BF Skinner and his associates. It states that individual’s behaviour is a function of its consequences. It is based on “law of effect”, i.e., individual’s behaviour with positive consequences tends to be repeated, but individual’s behaviour with negative consequences tends not to be repeated. Reinforcement theory of motivation overlooks the internal state of individual, i.e., the inner feelings and drives of individuals are ignored by Skinner. This theory focuses totally on what happens to an individual when he takes some action. Thus, according to Skinner, the external environment of the organization must be designed effectively and positively so as to motivate the employee. This theory is a strong tool for analysing controlling mechanism for individual’s behaviour. However, it does not focus on the causes of individual’s behaviour. The managers use the following methods for controlling the behaviour of the employees: • Positive Reinforcement- This implies giving a positive response when an individual shows positive and required behaviour. For example - Immediately praising an employee for coming early for job. This will increase probability of outstanding behaviour occurring again. Reward is a positive reinforce, but not necessarily. If and only if the employees’ behaviour improves, reward can say to be a positive reinforcer. Positive reinforcement stimulates occurrence of a behaviour. It must be noted that more spontaneous is the giving of reward, the greater reinforcement value it has. 146 CU IDOL SELF LEARNING MATERIAL (SLM)