Unit 4-Organisation Structure: Q. Elements On Organization Formation Structure

UNIT 4- ORGANISATION STRUCTURE
An organization structure defines how job tasks are formally divided, grouped and coordinated.
There are six key elements that managers need to address when they design their organizations
structure: work specialization, departmentalization, chain of command, span of control,
centralization and decentralization and formalization.
Q. Elements on organization formation structure
1. Work Specialization: We use the term work specialization or division of labour to
describe the degree to which activities in the organization are subdivided into separate
groups. The essence of work specialization is that rather than an entire job being done by
one individual, it is broken down into a number of steps, with each step being completed
by a separate individual. An essence, individuals specialize in doing part of an activity
rather than the entire activity.
Most manufacturing jobs in industrialized countries were being done with high
work specialization. Because not all employees in an organization have the same skills,
management saw specialization as a means to make the most efficient use of its
employees skills. Managers also saw other efficiencies that could be achieved through
work specialization. Employee skills at performing a task successfully increase through
repetition. Less time is spent in changing tasks, in putting away ones tools and equipment
from a prior step in the work process, and in getting ready for another. Training for
specialization is more efficient from the organization perspective. It is easier and less
costly to find and train workers to do specific and repetitive tasks.
2. Departmentalization: Once the jobs are divided through work specialization, next step
is to group these jobs together so that common tasks can be coordinated. The basis by
which jobs are grouped together is called departmentalization.
One of the most popular ways to group activities is by functions performed.
A Manufacturing manager might organize a plant by separating engineering, accounting,
manufacturing, personnel and supply specialists into common departments. Of course
departmentalization by function can be used in all types of organizations. Only the functions
change to reflect the organization objectives and activities. A hospital might have departments
devoted to research, patient care, accounting and so forth.
3. Chain of Command: The chain of command is an unbroken line of authority that
extends from the top of the organization to the lowest echelon and clarifies who reports to
whom. It answers questions for employees such as To whom do I go if I have a
problem? and To whom am I responsible?
Authority refers to the rights inherent in a managerial position to give orders and
Expect the orders to be obeyed. To facilitate coordination, each managerial position is
given a place in the chain of command, and each manager is given a degree of authority
in order to meet his or her responsibilities. The unity of command principle helps
preserve the concept of an unbroken line of authority. It states that a person should have
one and only one superior to whom that person is directly responsible. If the unity of
ADITYA DEGREE COLLEGE, RAJAHMUNDRY. ADITYA DEGREE COLLEGE, RAJAHMUNDRY Page 1

command is broken an employee might have to cope with conflicting demands or
priorities from several superiors.
4. Span of control: How many employees can a manager efficiently and effectively direct?
This question of span of control is important because, to a large degree, it determines the
number of levels and managers an organization has. All things being equal, the wider or
larger the span, the more efficient the organization. An example can illustrate the validity
of this statement.
5. Centralization and Decentralization: In some organizations, top managers make all the
decisions. Lower level managers merely carry out top management directives. At the
other extreme, there are organizations in which decision making is pushed down to; the
managers who are closest to the action. The former organizations are highly centralized;
the latter are decentralized.
The term centralization refers to the degree to which decision making
concentrated at a single point in the organization. The concept includes only formal
authority- that is, the rights inherent in ones position. Typically, its said that if top
management makes the organizations key decisions with little or no input from lower-
level personnel, then the organization is centralized. In contrast, the more that lower-
level personnel provide input or are actually given the discretion to make decisions, the
more decentralization there is.
In a decentralized organization, action can be taken more quickly to solve
problems, more people provide input into decisions, and employees are less likely to feel
alienated from those who make the decisions that affect their work lives.
Q. Groups in organization
A group is defined as two or more individuals, interacting and interdependent who have
come together to achieve particular objectives. Groups can be either formal or informal.
By formal groups, we mean those defined by the organization structure, with designated
work assignments establishing tasks. In formal groups, the behaviors that team members
should engage in are stipulated by and directed toward organizational goals. The
department member in the organization is an example of formal group.
In contrast, informal groups are alliances that are neither formally structured nor
organizationally determined. These groups are natural formations in the work
environment that appear in response to the need for social contact. Three employees from
different department who regularly eat lunch or have coffee together are an example of an
informal group. These types of interactions among individuals, even though informal,
deeply affect their behavior and performance.
Their possible to further subs classify groups as command, task, interest or
friendship groups. Command and task groups are directed by formal organization,
whereas interest and friendship groups are informal alliance.
A command group is determined by the organization chart. It is composed of the
individuals who report directly to a given manager. An elementary school principal and
her 18 teachers form a command group, as do a director of postal audits and his five
inspectors.
Task group also organizationally determined, represent individuals working
together to complete a job task. However a task group boundaries are not limited to its
immediate hierarchical superior. It can cross command relationships. For example, if a
college student is accused of a campus crime, dealing with the problem might require
communication and coordination among the dean of academic affairs, the dean o;f
students, the registrar, the director of security, and the students advirsor. Such a formation
would constitute a task group.
Friendship group often develop because the individual members have one or
more common characteristics. social alliances, which frequently extend outside the work
situation can be based on similar age or ethnic heritage, support for a sports team, interest
in the same alternative rock band, or the holding of similar political views to name just a
few such characteristics.
Q. Group Dynamics:
Meaning and definition of Group Dynamics: Kurt Levin popularized the term group
dynamics in 1930s. When Kurt Levin described the way groups and individuals act and
react to changing circumstances, he named these processes as Group Dynamics. Group
Dynamics refers t those forces operating or present in the group and which influence the
behavior of the members of the group. These forces chiefly are the group composition,
group norms, group leadership. The study of group dynamics is important to every
manager. The study provides information to the managers about the way to control the
behavior of the members of the group.
Hence while using the concept of a group in organizational behavior, the focus
will be upon the dynamics of the formal and informal group members in an organization.
According to Kurt Levin, Group dynamics deal with internal nature of groups,
how they are formed, what structure and processes they adopt, how they function and
affect individual members, other groups and the organization.
Importance of Group Dynamics
1. Formal and informal workgroups are becoming increasingly important competitive
factors in an organization due to changes in an organization.
2. Team work is the result of groups working together to effectively and efficiently
achieving organizational tasks, vision and mission.
3. Group members should have task relevant expertise and appropriate interpersonal
skills for accomplishment of tasks.
4. The size of the group has also plays significant role in improving the groups
performance
5. Group dynamic is using other methods for measuring group performance like making
each individual work visible, providing individual feedback, and giving rewards to
the individual members in the group performance.
Q. Group Decision Making Techniques
Managers in organizations often need to take decisions based on consensus. They need team
members to discuss, debate, and decide on a mutually agreeable conclusion. Though group
decision-making is a powerful technique, it has its own disadvantages. It is time consuming;
members may be unclear about their roles and if not handled well, there could be some bitter
feelings between them. Nevertheless, its advantages outweigh the possible disadvantages. As all

the members are involved in the process, it is likely to be accepted easily and members will be
more willing to abide by the decision taken. Besides, there could be more generation of ideas
with more information flow.
1. Brainstorming: It is a combination of group problem-solving and discussions. It works on the

belief that the more the number of ideas, greater the possibility of arriving at a solution to the
problem that is acceptable to all. It starts with the group generating ideas which are then
analyzed, with action points based on the discussions.
For instance, if you have received a new e-learning project and are thinking of a strategy to
implement in the course, you can follow this technique. Gather a group of instructional designers
in a conference and let them first analyze the inputs. After that, you can collect ideas from each
of them and take the final decision.
This technique involves a group of people, usually between five and ten, sitting around a table,
generating ideas in the form of free association. The primary focus is on generation of ideas
rather them on evaluation of ideas.
If a large number of ideas can be generated, then it is likely that there will be a unique
and creative idea among them. All these ideas are written on the black board with a piece of
chalk so that everybody can see every idea and try to improve upon such ideas.
Brainstorming technique is very effective when the problem is comparatively specific and
can be simply defined. A complex problem can be broken up into parts and each part can be
taken separately at a time.
2. Nominal group technique:

Nominal group technique is similar to brainstorming except that the approach is more
structured. Members form the group in name only and operate independently, generating ideas
for solving the problem on their own, in silence and in writing. Members do not interact with
each other so that strong personality domination is avoided. It encourages individual creativity.
The group coordinator either collects these written ideas or writes then on a large black board for
everyone to see or he asks each member to speak out and then he writes it on the black board as
he receives it.
These ideas are then discussed one by one in turn and each participant is encouraged to comment
on these ideas for the purpose of clarification and improvement. After all ideas are discussed,
they are evaluated for their merits and drawbacks and each participating member is required to
vote on each idea and assign it a rank on the basis of priority of each alternative solution. The
idea with the highest aggregate ranking is selected as the final solution to the problem.
3. Delphi method
In Delphi decision groups, a series of questionnaires, surveys, etc. are sent to selected
respondents (the Delphi group) through a facilitator who oversees responses of their panel of
experts. The group does not meet face-to-face. All communication is normally in writing (letters

or email). Members of the groups are selected because they are experts or they have relevant
information.
The responses are collected and analyzed to determine conflicting viewpoints on each
point. The process continues in order to work towards synthesis and building consensus.
The process works as follows:
Members are selected for the Delphi panel due to their expertise.
They are kept separated and answer through an open-ended questionnaires,
surveys, etc. in order to solicit specific information about a subject or content
area. Keeping them separated avoids the negative effects of face-to-face
discussions and avoids problems associated with group dynamics.
Members are asked to share their assessment and explanation of a problem or
predict a future state of affairs.
The facilitator (panel director) controls the interactions among the participants by
processing the information and filtering out irrelevant content.
Replies are gathered, summarized, and then fed back to all the group members.
Members then make another decision based upon the new information.
The process is repeated until the the responses converge satisfactory, that is, it
yields consensus.
The success of this process depends upon the member's expertise and communication skill. Also,
each response requires adequate time for reflection and analysis. The major merits of the Delphi
process are:
Elimination of interpersonal problems.

Efficient use of expert's time.
Diversity of ideals.
Accuracy of solutions and predictions.
4. Didactic interaction:
This technique is applicable only in certain situations, but is an excellent method
when such a situation exists. The type of problem should be such that it results in a yes-
no solution. For example, the decision may be to buy or not to buy, to merge or not to
merge, to expand or not to expand and so on. Such a decision requires an extensive and
exhaustive discussion and investigation since a wrong decision can have serious
consequences.
Since, in such a situation, there must be advantages as well as disadvantages of

either of the two alternatives, the group required to make the decision is split into two
sub-groups, one favoring the go decision and the other favoring the no go decision.

The first group lists all the pros of the problem solution and the second group
lists all the cons. These groups meet and discuss their findings and their reasons. After
the exhaustive discussions, the groups switch sides and try to find weaknesses in their
own original viewpoints. This interchange of ideas and understanding of opposing
viewpoints results in mutual acceptance of the facts as they exist so that a solution can be
built around these facts and opinions relating to these facts and thus a final decision is
reached.
5. Electronic meeting:
Here, the decision-making process takes place virtually with the help of
technology. For instance, we can have a Skype call with the client. Create two or three
strategies and discuss them with the client clearly in the Skype call; let the client choose
the strategy close to his expectations.
Team decision-making is a time-consuming process and before the team leader
ensures the participation of the full team, he/she must make sure he has enough time and
resources for the decision-making process and choose a technique that is most
appropriate in a given situation, keeping the profile of team members in mind.
Q. Difference between Groups and teams?
CONTENT GROUPS TEAM
PURPOSE Same as organisation specific
WORK PRODUCTS individual collective
PROCESS Discuss, decide Discuss, decide and delegate
LEADERSHIP A single leader shared
ACCOUNTABILITY Individual Individual, mutual
EVALUATION Indirect( eg. Financial) Direct (collective work

product)
Q. Team building: The process of making teams effective is called team building.

Steps in Team Building:
Projection into future
Linkage with individual goals
Force field analysis
Strengthening Positive Forces
Reducing negative forces
Monitoring
Projection into future: The team may prepare a common vision of its desirable future.
Members, individually or in small groups, may prepare of their team as they see it in the next
five or seven years. A specific future scenario will help to inspire individuals to move towards it.
The future is a better diagnostic device than an analysis of the past.
Linkage with individual goals: the visions of the teams future should be linked with the
individuals aspirations and goals. Individuals may discuss in small groups how their own
aspirations and goals in life can be achieved through the ideal of the teams future developed by
the group.
Force field analysis: the team may identify the forces that are positive and are helping the team
to move towards the desirable future, and the forces that are likely to hinder its progress towards
that future.

Strengthening Positive Forces: The team may explore ways of reinforcing the positive aspects
that can help the team achieve its desirable future. They can take each positive force and work
out plans to strengthen it further.
Reducing Negative Forces: The team can take up all the restraining or inhibiting forces and can
plan specific action steps to reduce, if not eliminate, them.
Monitoring: After decisions are taken to work on strengthening positive forces and reducing
negative forces, a plan can be prepared to monitor the action being taken. The responsibility of
monitoring can be taken up by one or two members and the team may meet from time to time to
review the progress.
Whatever approaches are adopted for team building, emphasis should be laid on
understanding team effectiveness and taking steps to increase it. Similar steps can be taken for
building inter- team collaboration.
Q. Interpersonal Relationship: An interpersonal relationship is an association between two or
more people. People in organizations have to necessarily work in coordination with others to
meet organizational goals. This is achieved through the use of teams, committees and work
groups. How do people wok together in groups? What type of tasks could be assigned to the
groups? An individual works alone when he works alone and when he works in a group.
A good working relationship consisting of positive interpersonal interactions makes a
manager understand his own behavior as relationship consisting of positive interpersonal
interactions makes a manager understand his own behavior as well as the behavior of others in a
better manner. Managers need to make continuous efforts to create to make the groups more
productive and effective.

Role of Employees in Interpersonal Relationship Development
Employees need to get along well with their fellow workers for a positive ambience at workplace
and also for healthy interpersonal relationship. It is essential for employees to trust each other at
the workplace for better relations. It is almost impossible for employees to work alone. Everyone
needs people around to discuss things and reach to better solutions.
Role of employees in interpersonal relationship.
It is important for employees to stay positive at workplace. The employee shouldnt

find fault in the fellow workers. No matter how bad the other employee is, employee
needs to maintain the control of the workplace. The best way is to ignore the one you do
not like rather than indulging in conflicts and spoiling relationship.
Adjustment:. Things cant always be the way the employees like. Listen to others and
understand their point of view as well. He shouldnt see his personal interest.
He shouldnt underestimate his fellow workers: The employee never know when
someone comes up with a brilliant idea. Treat everyone with respect. Ignoring people
leads to frustration and eventually spoils relationships at workplace. Listen to everyone,
Giving importance to few and sidelining others create problems among employees. Such
things demotivate employees to give their best. They start treating office and work as a
burden.
It is unethical to spread rumours around at the workplace. Backbiting, leg pulling,
criticism are the biggest reasons of displeasure among employees. If an employee feels
his colleague is doing something wrong, tell him on his face rather than discussing with
others. Making fun of others is unprofessional..
Think before you speak. Employee shouldnt hurt anyone Shouldnt insult them
intentionally.
Role of Managers in Interpersonal Relationship

Individuals working together in the same organization tend to come closer to each other.
Interpersonal relationship refers to a strong association among employees with similar taste and
mindset.
Let us go through the role of managers in interpersonal relationship.
A team manager is just like captain of the ship who has the responsibility of taking all his crew
members along. For a team leader, his team is just his baby and he needs to take care of each and
every team member. He shouldnt be partial to anyone.
Interact with his team members on a regular basis. He should speak to everyone, else
employees might feel ignored. The manager should call for meetings at least twice in a
week. He should Enquire about their well-being. He should Ensure is everything going
well with them. This way employee feels happy and shares a healthy relationship with
superiors. Interaction is essential as it helps break ice among people.

Avoid comparisons among the team members. The manager should not shout on his
employees in public. The manager should call the employee concerned to his cabin and
make him realize his /her mistakes without being rude. He should speak with his team
members directly rather than passing on messages through someone as information might
not reach in its desired form creating misunderstandings and eventually spoiling
relationships.
A managers role is not just to sit in closed cabins for the whole day. He should Sit
with his team members and help them plan their day. Help them in their day to day work.
Managers must be accessible to their team members. Problems start when employees
find it difficult to get in touch with their bosses. Lend a sympathetic ear to their
problems. The team members should remember the manager when in crisis.
Intervene immediately in case of conflicts among the subordinates. team members
might fight over petty issues but it is managers responsibility to guide them and reduce
the chances of a major conflict. He should not ignore even the minor issues. One problem
left unattended can become a major concern later.
Sit with members, counsel them and motivate them to discuss issues and reach to
something which would benefit not only the employees but also the organization on the
whole..
Employees performing well must be appreciated and suitably rewarded for them to
deliver results everytime.
Q. What are the various barriers in communication? How to overcome them?

It is no probably no surprise that managers frequently site communication break down as
one of their major problems. The problem of communication arises because there are obstacles,
which may entirely prevent a communication.
A. Semantic Barriers:
1. Symbols with different meanings: common symbols usually have a variety of

meaning and we have to choose one meaning form many. In verbal common a
particular word may have a variety of meanings, in such a situations, often there is
possibility that the receiver of the symbols may attach quite different meanings as
compared to intended by the sender and common breakdown.
2. Badly expressed message: lack of clarity and precision in a message makes it badly
expressed. Poorly chosen and empty words and phrases careless omission, bad
organization of ideas in adequate vocabulary, numbering repetition, jargons, and
failures to clarify implications are some faults found in this case.

3. Faulty translations: every manager receives various types of communication from
superiors, peers, subordinates and he must translate information destined for
subordinates, peers, and superiors into language suitable to each. Approximate
understanding of words and the consequent faulty translations lead to impaired
efficiency and heavy costs.
4. Unqualified assumptions: there are some un communicated assumptions, which

underlie particularly all meanings. Though a message appears to be specific, its
underlying assumptions may not be clear to the receiver.
5. Specialist language: it is often found that technical personal and special groups tend
to develop a special and technical language of their own. This increases their isolation
from other and builds a communication barrier.
B. Emotional or psychological barriers:
The meaning describes to a message depends upon the emotional or psychological status of both
the parties involved. Some emotional barriers are as follows.
1. Premature evaluation: it is the tendency of prematurely evaluating communications,
rather than to keep an uncompromised position during the interchange. Such
evaluation stops the transfer of information.
2. Inattention: the preoccupied mind of a receiver and the resultant and non listening is
one of the major chronic psychological barriers. It is a common phenomenon that
people simply fail to bulletins, notices, minutes and reports.
3. Loss by transmission and poor retention: when communication passes through

various levels in the organization, successive transmissions of the same message are
decreasingly accurate.
4. Undue reliance in the written word: written word is no substitute for sound face to
face relationships and employees cannot be persuaded to accept companies view
points and policies through easy to read, well illustrated publications, unless there is a
fair degree of mutual trust and confidence between the organization and its
employees.
5. Distrust of communicator: it arises out of ill considered judgments, illogical decisions

or frequent countermanding of the original communication by the communicator.
6. Failure to communicate: it is quite an accepted fact that managers often fail to

transmit the needed messages. This might be because of laziness on the part of the
communicator or assuming that everybody knows.
C. Organizational barriers:
All the inner processes, including communication indifferent directions, are markedly affected by
these prescriptions. As such, organizational barriers are as follows:
1. Organizational policy: the general organizational policy regarding communication
acts as an overall guideline to everyone in the organization regarding how is normally
expected to behave in this matter. The policy might be in the form of explicit
declaration in writing or as is very commonly the case, it has to be interpreted from
the behavior of organizational members, particularly people at top. If this policy is not
supportive to the flow of communication in different directions, communication flow
would not be smooth and adequate.
2. Organizational rules and regulations: organizational rules and regulations affects the
flow of communication by prescribing the subject matters to be communicated and
also channel through which these are to be communicated.
3. Status relationship: the placing of people in superior/ subordinate capacity in the

formal organization structure also blocks the flow of communication and more
particularly in upward communication.
4. Complexity in organizational structure: in an organization where there is no. of

managerial levels, chances of communication getting distorted are more the no. of
filtering points is more.
5. Organizational facilities: organizational facilities provided smooth, adequate, clear

and timely flow of communication may take no. of forms. If these are not properly
emphasized, generally people fail to make effective communication.
D. Personal barriers:
1. Barriers in superior: the role of superior in communication is very vital, because of

their hierarchical relationship with subordinates, they act as barriers in a number of
ways discussed below:
a) Attitude of superiors: the attitude of superiors towards communication in general

or in any particular direction affect the flow of messages in different directions for
e.g. if this attitude as unfavorable, there is greater possibility that messages would
not flow adequately from to superiors.
2. Fear of challenges to authority: a person in the organization always tries to a higher

position and prestige to satisfy needs. As such, manager in general tries to with hold
the information coming down the line or going up as frequent passing of information
may disclose their weakness.

3. Insistence on proper channel: one of the basic futures of superiors exercising the
authority is that they wish to remain in communication. Links and they do not like
any type of bypassing in communication.
4. Lack of confidence in subordinates: superiors generally perceive, correct or

otherwise, that their subordinates are less competent and capable, they are not able to
advice superiors, or they may not have some information coming upwards.
5. Ignoring communication: sometimes superiors consciously and deliberately ignore

the communication from their subordinates to maintain their importance. This worth
against the willingness of subordinates to communicate.
6. Lack of awareness: employees at lower level have a no. of communication needs

managers think that they understand employees needs but their employees of not
think so. This different in perception tends to exist at each level thereby making
communication. More difficult particularly in downward direction.
Q. essentials of effective communication

The effectiveness of system is measured in terms of its objective achievement.
Therefore, the effective communication system is one, which achieves its objectives.
Thus various elements of effective communication systems are clarity adequacy
timing and integrity.
1. Clarity: the communication process, in order to serve its purpose, must ensure
clarity of communication. There byi facilitating exchange of ideas and avoiding
unnecessary seeking and tendering of clarification. A communication processes
clarity when it is expressed in a language and transmitted in a way that will be
comprehended by the receiver.
2. Adequacy: there are two aspects of adequacy namely, a) in terms of coverage, that
is, types of messages flowing in various directions and b) in terms of quantity of
various types of messages. The problem of determining adequacy i8n regard to
coverage is not very difficult.
3. Timing: the utility of any message to the receiver is markedly affected by its
timeless. A suitable time span should be allowed for the purpose considering
urgency and the time requirement for collection of the information.
4. Integrity: the principle of integrity of communication suggests that the purpose of

communication is to support understanding by the individuals in their achieving
and maintaining cooperation needed to meet organizational goals.

Q. communication is life blood or organization? Give a comment?
A. meaning of communication: it means an exchange of ideas, facts, opinions, information and
understanding between two or more persons. Communication is generally understood as spoken
or written words. But in reality it is more than that in fact, it includes everything that may be
used to convey meaning form one person to another. Sometimes, the wave of hand, movement
of lips or the wink of an eye may convey more meanings than a thousand written or spoken
words.
Communication is an important tool in the process of management. it influences every
function of management,. Managers at various levels use the communication system to plan,
organize, direct and control activities and efforts of people. About 70 percent of the time of an
executive, supervisor or a manager is consumed in face to face communication. Every
organization should build an effective system communication for facilitating job performance
and promoting satisfaction among people in this sense communication is life blood of an
organization.
Communication is systematic implementation of managerial functions. Thus, the
importance of communication in management can be hardly overemphasized the importance of
communication in management can be understood from the following points:
1. Smooth working of the enterprise: effective communication helps in the successful, smooth
and unrestricted working of the enterprise. It plays an important role in all types of
organizations. It solves a lot of problems in the case of complex organization; the successful
completion of tasks on the part of the superiors depends upon the nature and flow of
communication they receive from the sub ordinates.
2. Quick decisions and implementation: managers need information, reports and statements
from various decisions, further, the managerial decisions and plans are to be communicated
to the subordinates. However, intelligent the personnel may be, it would be of no benefit if
the higher level management cannot effectively communicate policies and decisions to
them.
3. Coordination: communication is a means of achieving coordination. In every organization

various activities are to be divided, and subdivided among several departments and
employees working therein. All of them have to work in well coordination. They are
necessary upward, down word and sideways, through all the levels of authority and a device
for the transmission, interpretation and adaptation of policies, for the sharing of knowledge
and information and for the more subtle needs of good morals and mutual understanding
thus communication is really as aid to coordination.

4. Direction and leadership: managers perform their direction and leadership function through
the communication system. They also use the communication system to advice, guide and
assist the sub ordinates on which, how, when and where jobs assigned are to be performed.
5. Managerial control: managerial control function involves the measurement of actual

performance, comparing it with set standards and taking corrective actions to cae of
deviations, if any the communication system plays a critical role in managerial control
function also.
6. Management of change: communication is very much needed when there is a change in

organizational systems, structures, processes, and practices. The objectives of proposals and
porogrammes of organizational change, its elements and implications should be
communicated to the persons who are likely to be affected by it.
7. Training and development: communication is vital for the orientation and training of both
workers and executives. In modern industry, training and development of personnel is an
ongoing process.
8. Builds public image: public relations also improved through proper communication as
many outside parties like customers community, financiers, suppliers and government
agencies dealing with the organization are to be supplied required information on various
matters related to them.
9. Helps to cope with changing business environment: communication also helps the
organization to cope with rapidly changing business environment.
10. Helps in conducting global economic operations: globalization of business operations have
increased the need and importance of communication. For a successful executive, it has
become necessary to be aware of communication procedures and covenants to get required
knowledge of different cultures which are prevailing in various countries.
Conclusion: in order to secure maximum productivity with the minimum cost, there must
be perfect cooperation and trust among management and labor. Communication is very
much needed when there is a molding in organization activities.
Control
Q. Controlling is determining what is being accomplished i.e. evaluating performance and if
necessary applying corrective measures so that the performance takes place according to plans.
George R Terry and Stephen G. Frankling
Features:
1. Control is forward looking because one can control future happenings and not the past.

2. It is both an executive process and from the point of view of the organization of the system, a
result
3. At the point of action, it follows a definite pattern and time table, month after month and year
after year.
Controlling and other functions:

1. Planning as the basis: there is a plan which directs the behavior and activities the
organization. Control measures these behavior and activities and suggests measures to
remove deviation, if any provided by the planning process. Control is a result of particular
plans, goals or policies. Planning is also affected by the control in the sense that many of the
information provided by control are used for planning and replanning. Thus there is a
reciprocal relationship between planning and control.
2. Action as the essence: it basically emphasizes on what actions can be taken to correct the
deviation found between standard and actual results.
3. Delegation as the key: organization is the key for control because control action can be
taken only by the managers who are responsible for performance but who have authority to
get things alone.
Collective actions can be taken basing on the factors effective the deviation or non
achievement of organizational objectives, they are controllable and uncontrollable factors.
4. Information as a guide: every manager in the organization must have adequate information
about his performance standards and how he is contributing to the achievement of
organizational objectives.
Q. Importance of control: Organizations try to achieve objective through various actions.

From this point of view all actions lead to the achievement of organizational objectives.
However the organization must also monitor whether they are achieving their objectives or
not. Thus, control is a integrated action of an organization or manager. It offers help in the
following directions.
1. Adjustments in operations: a control system acts as a adjustment in organizational
operations. Every organization have certain objectives to achieve which become the
basis for control. Control provides this clue by finding out whether plans are being

observed and suitable progress towards the objectives is being made, and acting, if
necessary, to correct any deviations.
2. Policy verification: various policies in the organization generate the need for control.
For organizational functioning managers set certain policies and other planning
elements which later become the basis and reason for control.
3. Managerial responsibility: in every organization managerial responsibility is created
through assignment of activities to various individuals. This process starts at top level
and goes to the lower levels. However, the manager assignees some activities to the
subordinates, he remain responsible for that portion of activities for their ultimate
performance.
4. Psychological pressure: control process puts a psychological pressure on the individual
for better performance. The performance of the individuals is evaluated in the light of
targets set for them. a person is likely to put better performance if he is aware that his
performance will be evaluated. He may feel pressure to achieve the results according to
the standards fixed for him.
5. Coordination in action: though coordinator is the essence of management and is
achieved through the proper performance of all managerial function, control affects this
aspect significantly. Control systems are designed in such a way that they focus not only
on the operating responsibility of a manager but also on his ultimate responsibility. This
force the manager to coordinate the activities of his subordinates in such a way that each
of them contributed positively towards the objectives of the superior.
6. Organizational efficiency and effectiveness: proper control ensures organizational
efficiency and effectiveness. Various factors of control, namely, making managers
responsible, motivating them for higher performance and achieving coordination in the
performance, ensure that the organization works efficiently. The organization also
moves towards effectiveness because of control system. The organization is effective if
it is able to achieve its objectives.

Q. Process of controlling:
Establishing control standards
Measurement of actual performance
Comparing actual and standard performance
Correction of devotions
1. Establishment of control standards: every function in the organization begins with
plans which are goals, objectives of targets to be achieved. In the light of this
standards are established which are criteria against which actual results are
measured. For setting standards for control purpose it is important to identify clearly
and precisely the results which are desired. Precision in the statement of this
standards are most effective when they are related to the performance of a specific
individual because a particular individual can be made responsible for specific
results.
2. Measurement of actual performance: the second major step is measurement of
performance. The step involves measuring the performance in respect of work in
terms of control standards.
The measurement of performance against standards should on a future basis, so
that deviations may be detected in advance of their actual occurrence and avoided by
appropriate action. Appraisal of actual or expected performance becomes a easy
task, if standards are properly determined and methods of performance are expressed
in physical and monetary terms such as production units sales volume profits etc.
3. Comparing actual and standard performance: it involves 2 types.
a) Finding out the extent of deviations
b) Identifying the courses of such deviations
When adequate standards are developed and actual operformance is measured
accurately only variation will clearly revelaed. Management may have
information relating to work performance, data, charts and written reports

besides personal observation to keep itself informed abut performance in
different segments of the organization. Such performance is compared with the
standard onto find out whether the various segments and individuals of the
organization are progressing in the right direction.
When the standards are achieved, no further managerial action is
necessary and control process is complete. However, standards may not be
achieved in all cases and the extent of variations may differ from case to case.
When the deviation between the standard and actual performance is beyond the
prescribed limit and analysis will be in point the courses which are controllable
by the person responsible. In such a case person concerned will take necessary
corrective action. Measurement of performance, analysis of deviations and their
courses may be of no use unless these are communicated to the person who can
take corrective action..
4. Corrections of deviations: in a business organization this type of automatic control
cannot be established because the state of affairs that exists is the result of so many
factors in the total environment. Thus, some additional actions are required to
maintain the control. Such control actions may be
a) Review of plans and goals and chance therein on the basis of such review.
b) Change in the assignment of task
c) Change in the existing techniques of direction
d) Change in the organization structure, provision for new facilities etc.
Q. Types of control:
1. Strategic and operational control
Strategic control is a process of taking into account of changing, planning, premises both
external and internal to the organization on which the strategy as it is being implemented, and
taking corrective actions to adjust this strategy to the new requirements.
Operational control is concerned with action or performance and it is aimed at evaluating
the performance of the organization as a whole or its different components strategic business
units (SBU), divisions and departments.
Control techniques:

There are different are in the organization where control is exercised. There area may be
grouped into 2 categories operational and overall control.
Operational control is exercised at the level of various operating units by the concerned
operating managers while overall control is exercised by top management. of the organization
operational control involves financial control, operating control and inventory control.
Financial control: it is relevant for those aspects of tour operations whose outcomes are
expressed in monetary terms. The major techniques of financial control are:
a) Budgetary control: it is derived from the concept and use of budgets. Budgetary
control is a system which uses budgets as a means for planning and controlling entire
aspects of organizational activates or parts thereof.
It ensures proper planning and coordination and thereby eliminates wastage and
increase profitability.
b) Break even analysis: it is concerned with cost volume profit relationships. It
magnifies a set of relationships of fixed costs, price level of output and sales mix to
the profitability of the organization.
c) Internal audit: it is also known as operational audit. It is an effective tool of
managerial control. It is carried out by managers themselves or by special staff
appointed for this purpose. In auditors to ensuring that accounts properly reflect the
facts, it also appraises policies. Procedures, use of authority, quality of management,
effectiveness of methods and other phases of operation. Though internal audit makes
suitable recommendations for managerial actions, its installation and operation
require extra costs which may be too much for small organizations.
Operating control: it tries to ensure that a) product and services produced are of good quality,
which is ensured through quality control, b) they are produced with min. possible costs and in
required quantity which is ensured those cost control and inventory control and that c) they are
produced at the required time which is ensured through time event network analysis.
Quality control can be applied at two phases of operations:
1. Control of an operation in process and
2. Inspection of automatical, semi finished and finished products

Inventory control: inventory consists of raw material, work in progress and finished
goods. Inventory is kept at a particular level to meet future needs of the organization.
Inventory control tries to specify the optimum level of inventory that an organization.
a) Human resource accounting: it is primarily involved in variously aspects related to
human assets. Its basic purpose is to faciltitate the effective management, of human
resources by providing information to acquire, develop, retain, utilize and evaluate
human resources.
b) Management information systems: though management information system is not a
control technique, it helps in planning, controlling and other organizational processes.
Management information system based on the fact that many times of input data may
be use full for a no. of different outputs.
Management information system is an organized method of providing past,
present and projected information relating to internal operations and external
intelligence.
It supports the planning, control and operational functions of an organization by
furnishing uniform information at the right time to assist the decision making process.
Q. Define leadership and discuss the essential characteristics of leadership?

Concept of leadership
Leadership is the process of influencing the behavior of others to work willingly and
enthusiastically for achieving predetermined goals. Tenny Baun defined leadership as follows:
Leadership is interpersonal influence exercised in a situation and directed of specified
goal or goals
Terry has defined leadership in the context of enthusiastic contribution. He said that
leadership is essentially a continuous process of influencing behavior. A leadership is
essentially a continuous process of influencing breathes life into the group and breathes life into
the group and motivates it towards goals. The lukewarm desires for achievement are
transformed into a burning passion for accomplishment.
Features of leadership:
1. Leadership is a continuous process of behavior. It is not a one shot activity.
2. Leadership may be seen in terms of relationship between a leader and his follower which
arises out of their functioning for common goals.
3. By exercising his leadership, the leader tries to influence the behavior of individuals or group
of individuals around him to achieve common goals.
4. The followers work willingly and enthusiastically to achieve these goals. Thus there is no can
force.
5. Leadership gives an experience of help to follower to attain common goals. It happens when
the leader feels the importance of individuals, gives them recognition and conveys them
about the importance of activities performed by them.
6. Leadership is exercised in a particular situation at a given point of time and under specific set
of circumstances. It implies that leadership styles may be different under difficult situations.
Q. Importance of leadership:
Leadership is an important factor for making any type of organization successful. Without a
good leader, organization cannot function efficiently and effectively. Since the organization is
basically a deliberate creation of human beings for certain specified objectives. The activities
of its members need to be directed in a certain way. Any departure from their way will lead to
inefficiency in the organization. The importance of good leadership can be discussed as
follows:
1. Motivating employees: motivation is necessary for work performance. Higher the
motivation better would be the performance. A good leader, by exercising his leadership,
motivates the employees for high performance. Individuals in the organization to function
in a desired way to get organizational objectives without direction other managerial

activities like planning, organizing and staffing become ineffective. Good leadership in
the organization itself is a motivating factor for the individuals.
2. Creating confidence: a good leader may create confidence in his followers by directing
them, giving them advice and getting through them good results in the organization. Once
an individual with the help of a leader, puts high efficiency, he tries to maintain it as
acquires certain level of confidence towards his capacity. Sometimes, an individual fails
to recognize their qualities and capabilities to work I the absence of good direction.
3. Building Morale: morale is expressed as the attitudes of employees towars the

organization. Management and voluntary cooperation to offer their ability to the
organization. High morale leads to higher productivity and organizational stability.
Thus good leadership is essential in all aspects of managerial functions whether it be

motivation, communication or direction. Good leadership ensures success in the organization and
unsatisfactory human performance in any organization can be primarily contributed to poor
leadership.
Q. Qualities of a leader
1. Physical features: physical features of man are determined by hereditary factors.
Hereditary is the transmission of qualities from ancestor to descendant through a mechanism
lying primarily in chromosomes of the cells. Physical characteristics and rate of maturation
determine the personality formation which is an important factor in determining the leadership
success.
2. Intelligence: for leadership, higher level of intelligence is required. Intelligence is
generally expressed in terms of mental ability, intelligence to a very great extent is a natural
quality in the individual or because it is directly related with brain.
3. Emotional stability: a leadership should have balanced emotionality. He should be
free form basis, consistent in action and refrains from age. This is well adjusted and has no
antisocial attitudes. He is self confident and believes that he can meet most situations
successfully.
4. Human relations: a successful leader should have adequate knowledge of human
relations, that is, how he should deal with human beings. Since an important part of leaders job
is to develop people and get their voluntary cooperation for achieving their work. He should have
intimate knowledge of people and their relationship with each other.
5. Empathy: empathy relates to the things or situations from others point of view. The
ability to look at things from others point of view is an important aspect of successful leader.
6. Objectivity: objectivity implies that what a leader does should be based on relevant
facts and information. He must assess these without any bow or prejudice.

7. Motivating skills: not only a leader is self motivated but he has requisite quality to
motivate his followers. Though there are many external forces there is inner drive in people also
for motivation to works. The leader can play active role in simulating these inner drive of his
followers.
8. Technical skills: the leading of people require adherence to definite principles which
must be understood and followed by greater and followed by greater. The ability to plan,
organize, delegate, analyze, seek advice, make decision, control and win cooperation requires the
use of important abilities which constitute technical competence of leadership. The technical
competence of leader may win support from the followers.
9. Communication skills: a successful leader knows how to communicate effectively.
Communication has great force in getting the acceptance from the receivers of communication. A
leader uses communication skillfully for persuasive, informative and stimulating purposes.
10. Social skills: a successful leader has social skills. He understands its people and
knows their strengths and weaknesses. He has the ability to work with people and conducts
himself so that gains their confidence and loyalty and people cooperate willingly with him.
Q. Styles of leadership:
1. Autocratic leadership
2. Participative leadership
3. Free Rein leadership
1. Autocratic leadership: it is also known as authoritarian, directive style. Autocratic

leadership style, a manager centralizes decision making power in himself. He structures
the complete situation for his employees and they do what they are told. Here, the
leadership may be negative because followers are uniformed insecure and afraid of
leader authority. There are three categories of autocratic leader.
a) Strict autocrat: he follows autocratic styles in very strict sense. His method of
influencing subordinates, behavior is through negative motivation, that is by criticizing
subordinate, imposing penalty etc.
b) Benevolent autocrat: he also centralizes decision making powe in him, but his
motivation style is positive. He can be effective in getting efficiency in many
situations, some people like to work under strong authority structure and they derive
satisfaction by this leadership.
c) Incompetent autocrat: sometimes, supervisors adopt autocratic leadership style just to

hide their incompetence because in other styles, they may be exposed by their

subordinates. However, this cannot be used for a long time. The main advantage of
autocratic techniques is as follows:
i) There are many subordinates in the organization who prefer to work under
centralized authority structure and strict discipline. They get satisfaction from this
style.
ii) It provides strong motivation and reward to a manager exercising this styles.
iii) It permits very quick decisions as most of the decisions are taken by a single
person.
iv) Less competent subordinates also have scope to work in the organization, under
his leadership style as they do negligible planning, organizing and decision
making.
There are many disadvantages of autocratic leadership which are as follows:

1. People in the organization dislike it especially when it is strict and the
motivational style is negative.
2. Employer lacks motivation, frustration; low morale and conflict develop in the
organization.
3. There is more dependence and less individuality in the organization. As such

future leaders in the organization do not develop.
Considering the organizational efficiency and employees satisfaction

autocratic style, generally is not suitable.
2. Participative leadership: this style is called democratic, consultative and ideographic.
Participation is defined as mental and emotional involvement of a person or a group
situation which encourages him to contribute to group goals and share responsibility in
them. a participative manager decentralizes his decision making process. Instead of
taking unilateral decision, he emphasis on consultation an participation of his
subordinates. This process emerges from the suggestions and ideas on which decisions
are based.
The participation may be either real or pseudo. On the case of former a superior
gives credit to subordinates suggestions and ideas in taking the decisions while in the
case of latter the superior preaches participation in theory but really he does not prefer
it in practice. There are various benefits in real participative management. these are as
follows:
1. It is highly motivating technique to employees as they feel elevated when their
ideas and suggestions are given weight in decision making.
2. The employees, productivity is high because they are party to the decision. Thus
they implement the decision whole heartedly.
3. They share the responsibility with the superior and try to safeguard him.
4. It provides organizational stability by raising morale and attitudes of employees

high and favorable. Further, leaders are also prepared to take organizational
positions. This style is not free from certain limitations as follows;
a) Complex nature of organization requires a thorough understanding of its

problems which lower level employees may be able to do. As seen participation
does not remain meaningful.
b) Some people in the organization want minimum inter action with their superior
or for them; participation technique is discouraging instead of encouraging.
3. Free rein: free rein or Laissez faire technique means giving complete freedom to
subordinates. In this style, manager once determines policy, programs and limitations
for action and the entire process is left to subordinates. Group members perform
everything and the manager usually maintains contacts with outside persons to bring
the information and materials which the group needs. This type of style is suitable to
certain situations where the manager can leave a choice to his group of subordinates to
develop independent personality. It tends t permit different units of an organization to
proceed at cross purposes and can degenerate chaos. Hence, this style is used very
rarely in business organizations.
Q. THEORIES OF LEADERSHIP:
Theories of Leadership

Trait Approach Behavioral Approach Contingency/ situational
Approach
Trait Theory
Managerial Grid Ohio Studies Michigan Studies Life Cycle Path Goal
I. Trait Approach: Trait theory is a traditional approach to the theory of leadership. According
to these theories, it is thought that a leader has specific trait of mind and intelligence. These
special qualities of head and heart generally include mental capacities and morale qualities.
People who make effective leaders have the right (or sufficient) combination of traits and
great leaders has some common personalitys characteristics. Trait theories help in identifying
traits that are helpful when leading others.
Some of the important traits of an effective leader are discussed below:
1. Intelligence: This trait seems to hold up better than any other. Leaders generally have
somewhat higher level of intelligence than the average of their followers. They possess
the ability to think scientifically, analyze accurately and interpret clearly and precisely the
problems before than in terms of different aspects and perspectives.
2. Physical features: Physical characteristics and level of maturity determine personality of

an individual, which is an important factor in determining success of leadership. Height,
weight, physique, health and appearance of an individual are important for leadership to
some extent.
3. Maturity: leaders generally have broad interests and activities. They are emotionally
mature and have balanced temperaments avoiding menacing so that they may not become
thoughtless victims of the circumstances. They also have high frustration tolerance.
4. Vision and Foresight: A leader cannot maintain his influence unless he exhibits his trait
of looking forward well in advice and imagination for handling his followers. So he
should imaginatively visualize tends and devise his policies and programmes with
foresight based on logical programmes.
5. Acceptance and Responsibility: A successful leader is one who is prepared to shoulder

the responsibility for the consequences of any steps he contemplates or takes. He is
always aware of the duties and obligations associated with the position he holds.

6. Self- Confidence: A good leader has conceptual clarity about the things he is going to do.
He has confidence in himself whenever he initiates any course of action. Self- confidence
is essential to motivate the followers and boost up their morale.
7. Human Relations Attitude: A good leader is thoughtful of the followers as his success
as a leader largely depends on the cooperation of the people. Thus, a successful leader
possesses the human relations attitude. He always tries to develop social understanding
with other people. He approaches various problems in terms of people involved more
than in terms of technical aspects involved. He is constantly busy in achieving the
voluntary cooperation of the followers.
II. BEHAVIOURAL APPROACH: The behavioral approach is based on the study of

behavior of a leader. The behavioral theories are practical in nature. These theories believe
that leadership grows/develops not by traits but by the acts or experience of a person.
A) Managerial Grid: The concept of managerial grid was created by R.R. Blake and
Jane S.Mouton U.S.A. They emphasized that leadership style consists of facts of both
task oriented and relation oriented behavior in varying degrees.
9 1,9 9,9
Concern for people
1 1,1 9,1
Concern for Production

1 9
Concern for Production: Concern for production means the attitude of the superiors towards a
variety of factors concerning production, such as products, procedures, processes, quality of staff
service, work load, efficiency and quantity of production.
Concern for People: Concern for people includes degree of personal commitment towards goal
achievement, maintaining the self esteem of workers, responsibility and conductibility based on
trust rather than on force and satisfying inter-personal relations.
1) The 9, 1 Managerial Style: 9, 1 scale point indicates efficiency results from arranging work
in such a way that human elements have little effect. (Autocratic leadership style)

2) The 1,9 Managerial Style: 1,9 scale points indicates the thoughtful attention to needs of
people for satisfying relationships which leads to a comfortable, friendly organization
atmosphere and work tempo. (Supportive Style)
3) The 1, 1 Managerial Style: 1, 1 scale point indicates that exertion of minimum effort to get
required work done is appropriate to sustain organization relationship.
4) The 5, 5 Managerial Style: 5, 5 scale points indicates that adequate performance is possible
through balancing the work requirements with maintaining morale of people at satisfactory level.
5) The 9, 9 Managerial Style: 9, 9 scale points indicates that work accomplishment from
committed people and interdependence through a common stake in organization leads to
relationship of trust and respect.
In managerial grid there are 81 possible positions reflecting as many leadership styles,
but the focus usually centers around five basic styles. The 9, 1 leader is mainly concerned with
production and little concern for people. The leader wants to meet production schedule and get
the task done at all cost. The 1, 9 styles reflect a minimum concern for production and maximum
concern for people.
Managerial grid approach is attractive, instructive and has a common sense appeal. The
grid helps the manager to identify his own leadership style. It serves as a useful framework for
the leaders to understand behavior and reactions of people at work.
B) Ohio State University Studies: The main objective of the studies was to identify the major
dimensions of leadership and to investigate the effect of leader behavior on employee
performance and satisfaction. From a list of leaders behaviors in a wide variety of situations,
two leadership dimensions were identified as:

High
Human Relations Democratic
Consideration Behavior
Free Rein Autocratic
Low
w
Low High
Initiating Structure Behavior
i) Initiating Structure: Which refers to leader behavior that defines and organizes the
group Tasks, assigns the tasks to employees and supervises their activities.
ii) Consideration: refers to leader behavior that can be characterized by friendliness,

respect, Supportiveness, openness, trust and concern for the welfare of the employees.
The findings of the Ohio State Studies can be summarized as follows:
i) Consideration was positively related to low absenteeism and grievance, but it was
Negatively or neutrally related to performance.
ii) Initiating Structure was positively related to employee performance but was also;
associated with such negative consequences as absenteeism and grievances.
iii) When both consideration and structure were high, performance and satisfaction
tended to be high, but in some cases, high productivity was accompanied by
absenteeism and grievances.
C) Michigan Studies: The researchers at Michigan placed special attention to the impact of
leaders behavior on the performance of small groups. just like the Ohio Studies, Michigan
identified two types of behavior, which are as follows:
i) Employee Centered Behavior: It is like the consideration structure behavior of the Ohio
studies, it focuses on people and relationships. Supervisors spent more time in actual,
supervisory activities; less time performing tasks similar to those performed by sub-
ordinates, used general rather than close supervision, took a personal interest in employees
and was less punishing when mistakes were made. Employees of employee centered
supervisors felt that their supervisor took a personal interest in them, let them know how they
were doing on the job, and would support them.
ii) Production Centered Behavior: it is like initiating structure behavior of the Ohio studies,
it focuses on the task. Supervisor spent less time in actual supervisor practices such as
planning; more time performing tasks similar to those subordinates performed, used close
supervision, and punished mistakes.
III) CONTINGENCY/ SITUATIONAL APPROACH: Contingency or situational theory

advocates that leadership strongly affected by the situation from which a leader emerges and
in which he works. It is based on the assumptions that, an interaction exists between a group
leader emerges and in which he works. It is based on the assumptions that, an interaction
exists between a group and its leader and that people tend to follow the person (known as
leader) who is capable of fulfilling their aspirations. Thus, leader is a means of achieving the
goals of the group and the members. He recognizes the needs of the situation and then acts
accordingly.
A. Life Cycle Theory: Paul Hersey has identified two major dimensions of leader concern
as task behavior and relationship behavior. Task behavior is the extent to which leaders
engage in one way communication with subordinates by explaining what each follower is to
do, when to do it, and where and how the tasks are to; be accomplished. Relationship
behavior refers to the manner, in which leaders engage in one way communication with
subordinates by explaining what each follower is to do, when to do it, and where and how the
tasks are to be accomplished. Relationship behavior refers to the manner, in which leaders
engage in two way communication with subordinates by providing socio emotional support,
psychological strokes and facilitating behavior. Maturity level refers to the following:
i) The need for achievement, or motivation level of subordinates that is, their desire and
capacity to set high but attainable goals.
ii) Subordinates willingness and ability to accept more responsibility.
iii) Education and experience of subordinates with respect to the job.

In the initial phase: When subordinates first enter the organization a high task
orientation by the manager is most appropriate. Subordinates must be instructed in their tasks
and familiarized with the organizations rules and procedures. At this stage a non- directive
manager causes anxiety and confusion among new employees however, a participatory employee
relationship approach would also be inappropriate at this stage because subordinates cannot yet
be regarded as colleagues. This style is called the direction approach.
In the Second Phase: as subordinates begin to learn their tasks, task-oriented
management remains essential, as subordinates are not yet willing or able to accept full
responsibility. However, the managers trust in and support of subordinates can increase as the
manager becomes familiar with subordinates and desires to encourage further efforts on their
part. This style is called supporting approach.
In the third Phase: the subordinates ability and achievement motivation are increased
and subordinates actively begin to seek greater responsibility. The manager will no longer need
to be directive. However the manager will continue to be participative and thoughtful in order t
strengthen the subordinates resolve for greater responsibility.
B. Path Goal Theory: Developed by Robert House, Path Goal theory extracts elements from
the Ohio State leadership research on initiating structure and consideration. The essence of path
goal theory is that it is the leaders job to provide followers with the information, support, or
other resources necessary for them to achieve their goals. The term Path goal is derived from
the belief that effective leaders clarify the path to help their followers to get from achievement of
their work goals and to make the journey along the path easier by reducing roadblocks.
Leader Behaviors:
House identified four leadership behaviors:
i) Directive Leader: the directive leader lets followers know what is expected of them,
schedules to be done, and gives specific guidance as to how to accomplish tasks.
ii) Supportive Leader: the supportive leader is friendly and shows concern for the needs
of followers.
iii) Participative Leader: the participative leader consults with followers and uses their
suggestions before making a decision.
iv) Achievement oriented Leader: the achievement oriented leader sets challenging goals
and expects followers to perform at their highest level.
Q. Leaders versus Managers

BASIS OF DIFFERENCE LEADERS MANAGERS
Main Focus Leaders focus on people Managers focus on systems
and structure
Risk taking ability Leaders take risks by making Managers tend to eliminates
changes risks by preserving the system.
Acceptance Level Leaders challenge the existing Managers accept status quo
system and innovate. and administers order.
Focus on Control Leaders direct energy in Managers direct energy
guiding people toward toward- goals, resources,
practical solutions. organization structure,
determining the problems to
be solved.
Innovativeness Leaders follow their own Managers tend to do things by
innovativeness the book and follow company
policy.
Q. Sources of Power:
The five general sources of power are:
1. Reward Power: The extent of reward power depends upon the extent ot which one has
control over rewards that are valued by another. The greater the perceived value of such
rewards, greater will be the power. These rewards can be extrinsic in nature with tangible
values or these can be subjective and intrinsic rewards such as recognition and praise. In
organization contexts the different forms of rewards can be better pay, promotions,
favorable performance appraisal, preferred work shifts etc.
2. Coercive Power: the opposite of reward power is the coercive power; which is the ability
to influence punishment. Fear of punishment may make the subordinate execute the
instructions of the boss. Coercive power reflects the extent to which as manager can deny
desired rewards or administer punishment to control other people. The more punishments
a manager can impose upon others, the stronger is his coercive power. The coercive
power may consist of demotion or firing the subordinates for unsatisfactory performance.
3. Expert Power: It is more of a personal power rather than organizational power. If the
subordinates view their leaders as competent, they would follow their leader. For
example, we believe in our doctors or tax consultant advice because we believe in their
knowledge and competence in these specified areas. In organizations, because of
technological developments, jobs have become more specialized. As a result, employer
become more depends on experts to achieve their goals.

4. Legitimate Power: In formal groups and organizations, probably the most frequent
access to one or more of the power bases is ones structural positon. This is called
legitimate power. It represents the formal authority to control and use organizational
resources.
Positions of authority include coercive and reward powers. Legitimate power,
however is broader than the power to coercive and reward. It includes acceptance
by members in an organization like policies of the organization, rules and
regulations in the organization. Etc..
5. Referent Power: this power is known as charismatic power and is based upon the
attraction exerted by one individual over another. This power is more of a personal nature
than the positional nature because this power is not acquired because of a position but
because of personal charisma so that the followers would like to associate themselves
with the leader.
Q. Impression Management: We know that people have an ongoing interest in how others
perceive and evaluate them. For example, North America spend billions of dollars on diets,
health club memberships, cosmetics, and plastic surgery- all intended to make them more
attractive to others. Being perceived positively by others should have benefits for people in
organizations. It might, for instance, help them initially to get the jobs they want in an
organization and once hired, to get favorable evaluations, superior salary increases and more
rapid promotions. The process by which individuals attempt to control the impression others
form of them is called impression management.
Impression Management techniques:
a) Conformity: Agreeing with someone elses opinion in order to gain his or her approval.
b) Excuses: explanations of a difficult creating event aimed at minimizing the apparent

severity of the difficulty.
c) Apologies: Admitting responsibility for an undesirable event and simultaneously seeking

to get a pardon for the action
d) Self Promotion: Highlighting ones best qualities, downplaying ones deficits, and
calling attention to one achievement.
e) Flattery: Complaining others about their virtues in an effort to make one appear
perceptive and likeable.

f) Favors: Doing something nice for someone to gain that persons approval.
Q. Power and Politics:

Political Behavior is defined as activities that are not required as part of ones formal role in the
organization as activities that are not required as part of ones formal role in the organization but
that influence, or attempt t influence, the distribution of advantages and disadvantages within the
organization.
The definition is broad enough to include varied political behaviors such as withholding
key information from decision makers, spreading rumors, leaking confidential information about
organizational activities to the media, exchanging favors with others in the organization for
mutual benefit.
Factors contributing to Political Behavior:
Individual factors: at the individual level, researchers have identified certain personality traits,
needs and other factors that are likely to be related to political behavior. In terms of traits, we
find that employees who are high self monitors, possess an internal locus of control and have a
high need to power are more likely to engage in political behavior
The more alternative job opportunities an individual has- due to favorable job market or
the possession of scarce skills or knowledge.
Organizational Factors: When the existing pattern off resources is changing, and when there is
opportunity for promotions.
When organizations downsize to improve efficiency, reductions in resources have to be made.

Threatened with the loss of resources, people may engage in political actions to safeguard what
they have.
The opportunity for promotions or advancement encourages people to compete for a

limited resource and to try to positively influence the decision outcome.
The less trust there is within the organization, the higher the level of political behavior
and the more likely that the political behavior will be of the illegitimate kind. So high trust

should suppress the level of political behavior in general and inhibit illegitimate actions in
particular.
Role ambiguity means that the prescribed behaviors of the employee are not clear.
Because political activities are defined as those not required as part of ones formal role. The
greater the role ambiguity, the more one can engage in political activity with little chance of it
being visible. The use of a single outcome measure encourages individuals to do whatever is
necessary to look good on that measure, but often at the expense of performing well on other
important parts of the job that are not being appraised.
When both politics and understanding are high, performance is likely to increase because
the individual will see political actions as an opportunity. But when understanding is low,
individuals are more likely to see politics as a threat, which would have a negative effect on job
performance.

Unit 4-Organisation Structure: Q. Elements On Organization Formation Structure

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UNIT 4- ORGANISATION STRUCTURE

ADITYA DEGREE COLLEGE, RAJAHMUNDRY. ADITYA DEGREE COLLEGE, RAJAHMUNDRY Page 1

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1. Brainstorming: It is a combination of group problem-solving and discussions. It works on the

2. Nominal group technique:

ADITYA DEGREE COLLEGE, RAJAHMUNDRY. ADITYA DEGREE COLLEGE, RAJAHMUNDRY Page 4

The process works as follows:

Elimination of interpersonal problems.

Since, in such a situation, there must be advantages as well as disadvantages of

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Q. Difference between Groups and teams?

CONTENT GROUPS TEAM

PURPOSE Same as organisation specific

WORK PRODUCTS individual collective

PROCESS Discuss, decide Discuss, decide and delegate

LEADERSHIP A single leader shared

ACCOUNTABILITY Individual Individual, mutual

EVALUATION Indirect( eg. Financial) Direct (collective work

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Projection into future

Linkage with individual goals

Force field analysis

Strengthening Positive Forces

Reducing negative forces

The future is a better diagnostic device than an analysis of the past.

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out plans to strengthen it further.

plan specific action steps to reduce, if not eliminate, them.

review the progress.

building inter- team collaboration.

Q. Interpersonal Relationship: An interpersonal relationship is an association between two or

A good working relationship consisting of positive interpersonal interactions makes a

manager understand his own behavior as relationship consisting of positive interpersonal

productive and effective.

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Role of employees in interpersonal relationship.

It is important for employees to stay positive at workplace. The employee shouldnt

Role of Managers in Interpersonal Relationship

Let us go through the role of managers in interpersonal relationship.

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deliver results everytime.

Q. What are the various barriers in communication? How to overcome them?

1. Symbols with different meanings: common symbols usually have a variety of

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4. Unqualified assumptions: there are some un communicated assumptions, which

B. Emotional or psychological barriers:

3. Loss by transmission and poor retention: when communication passes through

5. Distrust of communicator: it arises out of ill considered judgments, illogical decisions

6. Failure to communicate: it is quite an accepted fact that managers often fail to

3. Status relationship: the placing of people in superior/ subordinate capacity in the

4. Complexity in organizational structure: in an organization where there is no. of

5. Organizational facilities: organizational facilities provided smooth, adequate, clear

1. Barriers in superior: the role of superior in communication is very vital, because of

a) Attitude of superiors: the attitude of superiors towards communication in general

2. Fear of challenges to authority: a person in the organization always tries to a higher

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4. Lack of confidence in subordinates: superiors generally perceive, correct or

5. Ignoring communication: sometimes superiors consciously and deliberately ignore

6. Lack of awareness: employees at lower level have a no. of communication needs

Q. essentials of effective communication

4. Integrity: the principle of integrity of communication suggests that the purpose of

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3. Coordination: communication is a means of achieving coordination. In every organization