Organization and Management

Introduction
 Social entity in which two or more people interdependently through deliberately structured
pattern of interaction to accomplish set of goals.
 2 minds better than single mind
 Form of human resources 1 association
 Process of identifying and grouping work to be performed for purpose of enabling people to
work
 Organization at rules/regulation to facilitate working towards achievement of goal
 Work to achieve goal dictates structure and delegation of responsibility
 Organizational goals differ from individual
 Common interest brings people together into organization.

Motivation
Origin: Latin word moves- meaning to move
Definition:
The process of influencing or simulating a person to take action by creating a working atmosphere
where in a person is satisfied to fulfill his/her needs and the goals of the organization.
It can be defined as internal force that affects direction, intensity and persistence of a person’s
voluntary choice of behavior.
Direction- refers to the fact that motivation is goal oriented not random
- People are motivated to reach some target such as selling more product s than quota,
outperforming etc.
Intensity- refers to amount of efforts allocated to the goal
Persistence- refers to varying levels of motivations that are continuing the effect for the certain amount
of time.
- Employees sustain their effort until they achieve their goal.
 Motives are directed towards goal
 Motivation is a guiding element even in planning
 Motivation has profound effect on productivity, quality of work.
 Psychology is closely associated motivation concepts
 Motivation changes as do the time/technology/conscience/culture/political system, etc.

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Motivation Theories:
1. Moslow’s needs hierarchy
2. Mcclelland’s theory of learned needs
3. Herzberg’s hygiene factors and motivation
4. Alderfer’s ERG theory
5. Mac Gregor’s theory X, theory Y

1. Moslow’s needs hierarchy

- Propose a 5 level hierarchy in which higher level of needs become activated upon fulfilliness of
lower level of needs.
- Each level of needs dominate behavior of a person
- Call satisfaction progression process
- Human beings are satisfied by unsatisfied needs
- Moslow’s needs pyramid
Self actualization
needs
Esteem
needs
Social
needs
Safety
needs
Physiological
needs

Deficiency need- Growth needs-

These are necessary for basic comfort Deals with personal growth and development

a. Physiological needs
- Basic needs of human life food, water, shelter, air etc met through organization’s working
conditions, wage/salary, work hours etc.
b. Safety needs:
- Protection from physical danger/accident illness, threat.

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 - Protection from economic, insecurity
- Protection from emotional harm
- Met through safety rules/accessories, pensions, labor law etc.
c. Social needs:
- Need to communicate/interact
- Need to be accepted in a group
- Willingness for friendship/belonging to a group tendency, towards like minded people
d. Esteem needs:
- Willingness for admiration, praises need to have recognition of work and personal
- Achievement met through rewards/incentives/prizes/bonus etc
e. Self actualization:
- A sense that the person potential been fully realized nothing to desire more.
According to moslow only few people reach this level. Self actualized people tend to have motivated
such as truth, wisdom, justice, etc.
Critique:
1) Everyone is not motivated by some needs and some time
2) Not necessarily the accomplishment of one level of needs lead to another level of needs
3) Individual needs does not cluster around and categories
4) Fails to explain dynamic and unstable characteristics of employs needs
5) In some culture social needs are placed more fundamentally (Japan).

2. Mcclellarnd’s theory of learned needs:

 Important sources of motivation
a. Need of achievement (N-Ach)
o A desire to accomplish moderately challenging performance goals
o Be successful in competitive situation
o Assume personal responsibility for work
o Receive immediate feedback
b. Need for power ( N-pow);
o A desire to control one’s environment including people and materials resources
o Some people may need power to help others such as improving society or increasing
organizational effectiveness

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 o Some may need it to advance in their career
c. Need for affiliation (N-Affil)
o A desire to
 Seek approval/admiration from others
 Avoid conflict and confrontation
 Be affiliated through relationship
3. Herzberg’s Hygiene factors and motivation
o Theory is based on 2 set of factors
 Hygiene factors
 Motivation factors
a. Hygiene factors: lower level of needs
 Job security working conditions, company policies, co-worker relations, superior
relations, salary etc
 Improving hygiene factors will reduce job dissatisfaction.
b. Motivation factors: higher level of needs
 Recognition, achievement, responsibility, opportunities for growth
 Improving motivation factors leads to job satisfaction and motivation.
Self actualization needs Opportunities for growth and advancement
Motivations factors Recognition for accomplishment achievement
Esteem needs
and responsibility
Social needs Interpersonal relations/supervision
Safety needs Hygiene factors Company policies and administration
Physiological needs Working condition, security, status salary.

4. Alderfer’s ERG theory:

- Was proposed to overcome problems with Maslow’s theory
- Research showed that middle levels of maslow’s hierarchy overlap
- Human needs are categorized into
o E-Existence needs: physical needs, safety needs
o R-Relatedness needs- needs in between safety and esteem i.e. social needs.
o G-Growth needs- needs for intrinsic desire for personal development and for self
esteem and self actualization.
- This model is also hierarchical
- To demonstrate that more than one need may motivate as same time

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 - Order of needs can be different for different t people. Example: starving sculpture may strive for
excellent monument
- Acknowledges that if a higher order need is frustrated on individual may regress to increase the
satisfaction of a lower level need which appears easier to satisfy. This is called Frustration
Regression Principle.
5. Mac Gregor’s Theory X, Theory Y
Theory X
- Average people have an inherent dislike of work and will avoid it if they can
- He locks ambition, dislikes responsibilities and values security most of all
- He is inherently self centered, indifferent to organizational needs
- He is by nature resistant to change
- He avoids decision whenever possible
- Most people must be coerced, controlled, directed and threatened with punishment if
organization is to achieve its objectives
- Motivation occurs at physiological and safety levels
- Central principle of Theory X is direction and control through a centralized system of
organization and exercise of authority.
Theory Y
- Average people don’t inherently dislike work
- He assumes responsibility with their commitment
- He likes to achieve organization goals
- He is capable of directing his own behavior
- He will make decision with commitment
- Given the right conditions, average worker can learn to accept and seek responsibility
- Theory Y was proposed after MacGregor felt that Theory X was inadequate often incorrect
- It assumes that individuals have potentials for development
- Motivation occurs at social, esteem and self actualization levels as well as at lower level
- Central principle of theory Y is integration of individual and organizational goals

Role of management
Role- to influence the employee
- To direct stimulate employees
- To follow organizations plan and policies

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 - To work efficiently
- Managers can influence employees through motivation
- Task of manager
o Creation and maintenance of an environment in which individuals work efficiently
towards realizing the objectives of organization.
- Employees of an organization differ not only in their ability to do work but also in their will/zeal
to do so
- Management needs to stimulate and develop the workers ability and fulfillment the objective of
organization.
- Guidelines for managers
a. Management should
 Involve employees in setting work goals for themselves
 Ensure their participation in planning, organizing, reviewing of work leading to
accomplishment of goals
 Provide employees adequate information for problem solving, decision making,
understanding plans, policies, programs
 Encourage feedback from employees to make use of their creative response
 Provide help to employees in problem solving
b. Management should establish a sound wage/ salary plan assuming adequate
compensation to employees
c. Management should create a conductive work environment for best performance.
d. Management should organize work in such a way so as to make it purposeful and
increasing to the employees. Job enrichment and job enhancement are useful concepts
to be practiced by management.

Role of work in enriching a person’s life

Job Enrichment
- It is an attempt to motivate employees by giving them the opportunity to use range of their
abilities
- It can be described as vertical loading of jobs
- An enriched job shall contain:
o A range of tasks and challenges of varying difficulties
o A complete unit of work and meaningful task

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 o Feedback, encouragement and communication
- Techniques
a. Turn employees effort into performance
b. Link employee, performance to reward
c. Combines tasks
d. Rotate jobs
e. Create autonomous work units
f. Impalement participative management
g. Redistribute power and authority
- Allows employees to have more control in planning their work and decisions how the work
should be accomplished
- Way of – taking off boredom with repetitive and boring jobs. Retaining talented people at
workplace.

Job enlargement
- Involves a horizontal, expansion of extra tasks, duties, responsibilities an employee is required
to perform.
- It is supposed to increase job satisfaction and motivation
- Contradicts principle of specialization and division of labor
- Example- replacing assembly lines with modular work where instead of an employee repeating
the same step on each product
- It may need retraining orientation
- Employee will feel less repetition and monotony
- Principles of job enlargement.
1. Increasing job demands
2. Increasing a workers accountability
3. Providing work scheduling freedom
Job Rotation
- Practice of moving employee’s from one job to another
- A tool for job redesign too
- Help employees learn about tasks
- Help employees learn other tasks
- Help employees increase ability to move to jobs where they are needed most.

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 - Cost reduction due to multi skilled worker can cover for other’s absence and thereby minimize
downtime
- Tolls for developing multi skilled work force.

Leadership
- It is a process of influencing people and providing an environment for them to achieve team or
organization goals
- It helps group of people define their objective and find way to achieve them
- It uses power and persuasion to ensure followers have motivation and role clarity to achieve
specific goals
- Leaders arrange the work environment is such way that allocates resources and alters
communication patterns to align with corporate objectives
- Leaders adapt their behavior and styles to the situation
- They increases employee motivation by strengthening the connection between employee
performance and satisfaction of employee needs
Leaders Manager
- A person who has ability to influence - A person will perform function of
others and action towards accomplishment of planning, organizing, influencing and
goals controlling and occupies a formal position in
organization
- A good leader may not be manager - A good manager is a good leader

Leadership styles:
1. Trait approach of leadership
- Emphasis is given to universal traits and characteristics of effective leaders
- Traits distinguish great leaders from rest of US
- Traits such as physical characteristics, personality, intelligence. Attitudes, values abilities,
appearance differentiate, one person from other another
- Traits for potential leaders.
a. Drive- inner motivation to pursue goals
b. Leadership motivation-cause for influencing others
c. Integrity- truthfulness and positive attitude empower one to translate words into deeds
d. Self confidence- ability to process and analyze huge amount of data
e. Business knowledge-knowing of company’s business environment.
2. Behavioral approach of leadership

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 - Focus on what behaviors make leader effective
- Types
a. People oriented behavior
o Showing mutual respect, trust to his subordinates
o Concern for others needs
o Desire to look out for their welfare
o Desire to accept employee suggestion
o Equal and fair treatment
o Support to employees in many issues/ situations.
b. Task oriented behavior:
o It defines structure of work and roles
o Leaders assign employees to specific tasks
o Clarify their work duties and procedures.
o Ensure that they follow company rules and push them to reach their performance
capacity.
o Most effective leaders shows a + b type of behavior.
3. Contingency approach of leadership
- It suggests that leaders motivate and satisfy employee in a particular situation b adopting one or
more of leadership styles namely:
a. Directive:
o Leaders clearly explains his subordinate as to which/ how the work should be done and
sets performance benchmark
b. Supportive:
o Leader is friendly and approachable, makes work more pleasant, and treats employees
equally.
c. Participate:
o Leaders consult with employees, ask for their suggestions, and take their ideas seriously
before making decision.
d. Achievement oriented:
o Leaders sets challenging goals and respects employees to perform at their high-test
level

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 4. Integrated approach of leadership
- It requires consideration of several important factors

Authority
- Essential for managers to organize and direct the use of resources to attain goals of organization
- X possibilities shall be accompanied by appropriate authority
- Can be defined as the right to decide, direct, take action or perform certain duties in achieving
organization goals
- If a significant among of authority is delegated to lower levels the organization is said to be
decentralized.
Types:
a. Formal authority
o Authority originates in formal structure of organization
o Formal authority flows from top to bottom
b. Functional authority
o Directly related to successful accomplishment of job
o It is typically limited to areas in which staff person is an expertise
c. Personal authority
o Arises from the resultant of person’s charisma, personal abilities, interpersonal skill etc.

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Power:
Power is a capacity or potential of a person, team or organize to influence others and their behavior.
The primary source of power is formal authority, punishment, rewards, expertise etc. Power is necessary
to coordinate organizational activities
Types
a. Legitimate power
b. Coercive power
c. Reward power
d. Expect power
e. Referent power

Incentive program
A system of wage payment under which the earning of an employee or group of employees or all
employees in an organization is directly related to the output of an acceptable quality/quantity over a
standard hard down by means of predetermined formula/ consensus. This is used to increase productive
of an individual organization. This also aid increasing employee efforts, reduces unit cost, cycle time etc.
Types:
a. Financial incentive
b. Non financial incentive: improve working condition, promotion schemes etc
Categories:
1. Profit sharing: certain percentage of profit in business is shared among employees
2. Individual incentives: individual output is measured and corresponding individual incentive
program is implemented.
3. Group incentives: incentive is based on some standard output of group of employees. Raises the
efficiency of the group. Fasters coordination and co operation between individuals within a
group
Personnel management
- Phase of management which deals with the effective control and use of manpower as
distinguished from other sources of power
- It is a management function that is concerned with person at work and their relationship within
organization

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 - It is a process of recruitment, selection, development, utilization and accommodation to human
resources by organization.
- Personnel administration is method of developing potentials of employees so that they get
maximum satisfaction out of their work and give their best efforts to organizations.
- Aspects;
1. Wallace aspect: working condition and amenities such as canteen, housing, school etc.
2. Labor aspects: recruitment, placement, remuneration, promotion, incentives, productivity,
training
3. Industrial relations: trade union negotiations, settlement of industrial disputes, bargaining
etc

Job Analysis
- Job is a collection of tasks duties and responsibilities which as a whole is regarded as a regular
assignment to individual employee
- Each job has a definite title based upon standard trade specification
- Job analysis is the determination of tasks which comprise the job and skills, knowledge, abilities,
responsibilities, experience required of the worker for a successful performance and which
differentiate one job form all others
- Concepts involved:
1. Job: organizations work volume is divided into a package called job
2. Job description: organized, factual statement of duties and responsibilities of a specific job
3. Job specification: written record of requirements of individual worker for a given job
4. Job design: collection of manageable units of job
5. Job evaluation: systematically evaluation the worth of job within organization y measuring
their required skill, effort, responsibility and working conditions

Job Analysis process

- Process of collecting data about job
- Approaches:
1. Questionnaire: places great faith on job holder’s ability to organize the report of job
2. Interview and observation: believes in completeness, accuracy and better utilization of time
Hiring, selecting, firing staff

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 - Makes it possible to acquire the number and type of people necessary to ensure the continued
operation of organization.
- This process works best on foundation provided by job analysis, labor budgeting and
requirements.
- Recruitment is a process of searching for prospective employees and stimulating them to apply
for jobs in organization
- Most important function of HRMS
- Steps
1. Job analysis, description and plan
2. Job forecast- invite by advertising, vacancy
3. Application collection- from internal/external source
4. Reference check- past behavior, work experience, educational background
5. Tests
a. Physical test
b. Written test
c. Interview- to judge applicant’s personality intelligence and attitude.
6. Selection and induction- welcoming process and orientation
7. Placement- job is assigned

Wage and salary structure:

- Wage is a remuneration paid for the service of labor in production, periodically given to an
employee
- Salary refers to monthly rates of payment made to administrative and professional employees
- Both are form of compensation provided to employee by organization.
- A contractual framework details the wave and salary structure
- Allowance payment made to employee in addition to basic wage/ salary to maintain value to
their specified needs egg. Tada, holiday pay etc
- Types of rates
1. Float rates: suitable for situations where there are greater number of job classes
2. Rate changes: allows varying rates of payment within the same job class
Factors
1. Organization’s ability to pay

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 2. Supply and demand of labor
3. Prevailing market value
4. Cost of living
5. Productivity
6. Trade union’s bargaining power

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