. “An organization is a social system”- Explain.

 A social system is a complex set of human relationships interacting in many ways. Within an organization, the social system includes all the people in it and their relationships to each other and to the outside world. The behavior of one member can have an impact, either directly or indirectly, on the behavior of others. Also, the social system does not have boundaries... it exchanges goods, ideas, culture, etc. with the environment around it. Culture is the conventional behavior of a society that encompasses beliefs, customs, knowledge, and practices. It influences human behavior, even though it seldom enters into their conscious thought. People depend on culture as it gives them stability, security, understanding, and the ability to respond to a given situation. This is why people fear change. They fear the system will become unstable, their security will be lost, they will not understand the new process, and they will not know how to respond to the new situations. Individualization is when employees successfully exert influence on the social system by challenging the culture.

. Distinguish between formal and informal organization.

 Formal organizations:-They are registered org. and are under the control of govt/private sector. These org. are included in organized sector. These org. include MN Cs, Insurance companies, Schools, Malls, etc. In short they are those org. which employ people organically. Informal Organizations: - They are not registered and are among local basis only. They are those org. which are not under the control of govt. or organized sector. They include small shops, Hockers, etc.

What is an informal organization? What are its benefits?

 The informal organization is the interlocking social structure that governs how people work together in practice. It is the aggregate of behaviors, interactions, norms, personal and professional connections through which work gets done and relationships are built among people who share a common organizational affiliation or cluster of affiliations. It consists of a dynamic set of personal relationships, social networks, communities of common interest, and emotional sources of motivation. The informal organization evolves organically and spontaneously in response to changes in the work environment, the flux of people through its porous boundaries, and the complex social dynamics of its members.An informal organisation is one which is not reliant on a hierarchical structure, typical of large-scale companies. It is not typical for an entire organisation to be informal, as this could cause problems which are discussed in a moment, but formal organisations do tend to have informal ones within them.  Informal organsations have very loose structures. People can become members freely and sometimes spontaenously; relationships are undefined and the sharing of responsibility and involvement of members will vary considerably.  The best example to give is an organisation's football team. One might find a managing director, a manager and a manual worker all on the same team- and we know that relationships between them will be very different than in the officeplace. So, the football team is an informal organisation; the company as a whole is formal since it has increasing levels of power. The advantages of informal organisations are that they create strong relationships between their members. There is no theoretical "boss" and this makes all members feel like a larger part of the organisation as a whole. The disadvantages, which explain why there are few purely informal organisations, are that a lack of structure can result in a reduction in professionalism. The company cannot benefit from different people managing different areas easily. Finally, the members cannot look to the future- after all, with no-one above them, they cannot look for promotion and therefore find themselves stuck with the same job.

State different types of organization structure that you know of

 The study of organizations includes a focus on optimizing organizational structure. According to management science, most human organizations fall roughly into four types:

Pyramids or hierarchies: A hierarchy exemplifies an arrangement with a leader who leads other individual members of the organization. This arrangement is often associated with bureaucracy. These structures are formed on the basis that there are enough people under the leader to give him support. Just as one would imagine a real pyramid, if there are not enough stone blocks to hold up the higher ones, gravity would irrevocably bring down the monumental structure. So one can imagine that if the leader does not have the support of his subordinates, the entire structure will collapse. Hierarchies were satirized in The Peter Principle (1969), a book that introduced hierarchiology and the saying that "in a hierarchy every employee tends to rise to his level of incompetence."

 

Committees or juries: These consist of a group of peers who decide as a group, perhaps by voting. The difference between a jury and a committee is that the members of the committee are usually assigned to perform or lead further actions after the group comes to a decision, whereas members of a jury come to a decision. In common law countries, legal juries render decisions of guilt, liability and quantify damages; juries are also used in athletic contests, book awards and similar activities. Sometimes a selection committee functions like a jury. In the Middle Ages, juries in continental Europe were used to determine the law according to consensus amongst local notables.

Matrix organization: This organizational type assigns each worker two bosses in two different hierarchies. One hierarchy is "functional" and assures that each type of expert in the organization is well-trained, and measured by a boss who is super-expert in the same field. The other direction is "executive" and tries to get projects completed using the experts. Projects might be organized by products, regions, customer types, or some other schema.

Ecologies: This organization has intense competition. Bad parts of the organization starve. Good ones get more work. Everybody is paid for what they actually do, and runs a tiny business that has to show a profit, or they are fired.Companies who utilize this organization type reflect a rather one-sided view of what goes on in ecology. It is also the case that a natural ecosystem has a natural border - ecoregions do not in general compete with one another in any way, but are very autonomous.

What is an organization? Is the family unit an organization? Explain.

 An organization is a social group which distributes tasks for a collective goal. The word itself is derived from the Greek word organon, itself derived from the better-known word ergon - as we know `organ` - and it means a compartment for a particular job.

A social unit of people, systematically structured and managed to meet a need or to pursue collective goals on a continuing basis. All organizations have a management structure that determines relationships between functions and positions, and subdivides and delegates roles, responsibilities, and authority to carry out defined tasks. Organizations are open systems in that they affect and are affected by the environment beyond their boundaries.

Family unit is an organization:It is good to remember a family is an organization. In fact, it is the basic organization of society. This is just one of the reasons I am such a proponent of family meetings. You wouldn't think of running a successful business without a plan, goal setting meetings, team building sessions and clear missions and expectations. As such, everyone in the family should have an equivalent of a job description. Each person's job description helps him define his roles and responsibilities in the family. Just like in the workplace, the clearer the job description and the more input is solicited from the participant, the more ownership is established. If you have ever worked in a workplace where no one knew what their job was day to day and rules were arbitrary, you will recall how chaotic and frustrating it was for everyone. The following information on structuring a family council has been compiled in part from information contained in The Parent's Handbook by Dinkmeyer & McKay, as well twenty five years of personal experience.

What is a contingency approach to organizational behavior?

 The contingency approach to management is based on the idea that there is no one best way to manage and that to be effective, planning, organizing, leading, and controlling must be tailored to the particular circumstances faced by an organization. Managers have always asked questions such as "What is the right thing to do? Should we have a mechanistic or an organic structure? A functional or divisional structure? Wide or narrow spans of management? Tall or flat organizational structures? Simple or complex control and coordination mechanisms? Should we be centralized or decentralized? Should we use task or people oriented leadership styles? What motivational approaches and incentive programs should we use?" The contingency approach to management (also called the situational approach) assumes that there is no universal answer to such questions because organizations, people, and situations vary and change over time. Thus, the right thing to do depends on a complex variety of critical environmental and internal contingencies

What are the three levels of analysis in a organizational behabior?

 Individual level

in individual level organizational behavior involves the study of learning, perception, creativity, motivation, personality, turnover, task performance, cooperative behavior, deviant behavior, ethics, and cognition. At this level of analysis, organizational behavior draws heavily upon psychology, engineering, and medicine.

group level

At the group level of analysis, organizational behavior involves the study of group dynamics, intra- and inter group conflict and cohesion, leadership, power, norms, interpersonal communication, networks, and roles. At this level of analysis, organizational behavior draws upon the sociological and socio-psychological sciences

organizational level

At the organization level of analysis, organizational behavior involves the study of topics such as organizational culture, organizational structure, cultural diversity, inter-organizational cooperation and conflict, change, technology, and external environmental forces. At this level of analysis, organizational behavior draws upon anthropology and political science.

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Define organizational behavior

 The study of the way people interact within groups. Normally this study is applied in an attempt to create more efficient business organizations. The central idea of the study of organizational behavior is that a scientific approach can be applied to the management of workers. Organizational behavior theories are used for human resource purposes to maximize the output from individual group members.     

There are a variety of different models and philosophies of organizational behavior. Areas of research include improving job performance, increasing job satisfaction, promoting innovation and encouraging leadership. In order to achieve the desired results, managers may adopt different tactics, including reorganizing groups, modifying compensation structures and changing the way performance is evaluated.

. Explain briefly the method of motivating people according to the theory of David C.Mc Clelland

 One of McClelland’s most well known theories is that human motivation, is dominated by three needs. McClelland's theory, sometimes referred to as the three need theory or as the learned needs theory, categorises . The importance of each of these needs will vary from one person to another. If you can determine the importance of each of these needs to an individual, it will help you decide how to influence that individual. McClelland asserted that a person’s needs are influenced by their cultural background and life experiences. He also asserted that the majority of these needs can be classified as the needs for affiliation, achievement or power. A person’s motivation and effectiveness can be increased through an environment, which provides them with their ideal mix of each of the three needs (N-Ach, N-Pow and/or N-Affil).

The need for affiliation (N-Affil); This is the need for friendly relationships and human interaction. There is a need “to feel liked” and “accepted” by others. A person with a high need for affiliation is likely to be a team player and thrive in a customer services environment. They will perform best in a co-operative environment. McClelland said that a strong need for affiliation will interfere with a manager’s objectivity. The “need to be liked” will affect a manager’s decisions, prompting them to make decisions to increase their popularity rather than furthering the interests of the organisation.

The need for power (N-Pow); This is the need to lead others and make an impact.This need can exhibit itself in two ways. The first which is the need for personal power may be viewed as undesirable as the person simply needs to feel that they have “power over others”. They don’t have to be effective or further the objectives of their employer.The second type of “need for power” is the need for institutional power. People with the need for institutional power; want to direct the efforts of their team, to further the objectives of their organisation.

The need for achievement (N-Ach); This is the need to achieve, excel and succeed. A person with this type of need, will set goals that are challenging but realistic. The goals have to be challenging so that the person can feel a sense of achievement. However the goals also have to be realistic as the person believes that when a goal is unrealistic, its achievement is dependant on chance rather than personal skill or contribution. This type of person prefers to work alone or with other high achievers. They do not need praise or recognition, achievement of the task is their reward.

 

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“Motivation as a need satisfying process” Explain from your view point.

 Basically, motivation stems from a desire to satisfy a need. Understanding the motivation theory, the hierarchy of needs, helps management with the business and the employees. This is based on Abraham Maslow’s motivation theory that says that individuals are motivated to satisfy a number of  needs in a hierarchy and people move from the basic needs to a higher level needs only after the basic one is satisfied. Until the need is satisfied, other needs have little effect on an individual’s behaviour. In other words, we satisfy the most prepotent needs first and then progress to the less pressing ones. As one need becomes satisfied, that need becomes less important; other needs loom up and become motivators of our behavior. Maslow’s Needs Hierarchy is : 1. Physical - such as food, clothing and shelter. 2. Security – which is the feeling a safety, and the assurance of continued satisfaction of physical needs. 3. Social – this is the feeling of belonging, love, affection. It could be expressed in belonging to the

organization or the immediate work group. Have affiliation of some sort, be a part of something. 4. Safety – the need to have physical safety and psychological security, the desire for self esteem and the esteem of others. This is done through increasing competence and development programs. Expressed through recognition, titles, offices, awards.  5. Self Actualization – Self fulfillment. Reaching maximum potential. Management should socus on continuous growth.

Herzberg's theory of motivators

 In 1959 Frederick Herzberg developed the Two-Factor theory of motivation. His research showed that certain factors were the true motivators or satisfiers. Hygiene factors, in contrast, created dissatisfaction if they were absent or inadequate. Dissatisfaction could be prevented by improvements in hygiene factors but these improvements would not alone provide motivation.

He concluded that such factors as company policy, supervision, interpersonal relations, working conditions, and salary are hygiene factors rather than motivators. According to the theory, the absence of hygiene factors can create job dissatisfaction, but their presence does not motivate or create satisfaction.

Herzberg showed that to truly motivate an employee a business needs to create conditions that make him or her feel fulfilled in the workplace.

Limitations of Two-Factor Theory:

1.     The two-factor theory overlooks situational variables.

2.     Herzberg assumed a correlation between satisfaction and productivity. But the research conducted by Herzberg stressed upon satisfaction and ignored productivity.

3.     No comprehensive measure of satisfaction was used. An employee may find his job acceptable despite the fact that he may hate/object part of his job.

4.    The theory ignores blue-collar workers. Despite these limitations, Herzberg’s Two-Factor theory is acceptable broadly.

Describe the various theories of motivation

 Instinct Theory of Motivation: According to instinct theories, people are motivated to behave in certain ways because they are evolutionarily programmed to do so. An example of this in the animal world is seasonal migration. These animals do not learn to do this, it is instead an inborn pattern of motivation.

Incentive Theory of Motivation: The incentive theory suggests that people are motivated to do things because of external rewards. For example, you might be motivated to go to work each day for the monetary reward of being paid. Behavioral learning concepts such as association and reinforcement play an important role in this theory of motivation.

Drive Theory of Motivation: According to the drive theory of motivation, people are motivated to take certain actions in order to reduce the internal tension that is caused by unmet needs. For example, you might be motivated to drink a glass of water in order to reduce the internal state of thirst. This theory is useful in explaining behaviors that have a strong biological component, such as hunger or thirst. The problem with the drive theory of motivation is that these behaviors are not always motivated purely by physiological needs. For example, people often eat even when they are not really hungry.

Arousal Theory of Motivation: The arousal theory of motivation suggests that people take certain actions to either decrease or increase levels of arousal. When arousal levels get too low, for example, a person might watch and exciting movie or go for a jog. When arousal levels get too high, on the other hand, a person would probably look for ways to relax such as meditating or reading a book. According to this theory, we are motivated to maintain an optimal level of arousal, although this level can vary based on the individual or the situation.

Humanistic Theory of Motivation: Humanistic theories of motivation are based on the idea that people also have strong cognitive reasons to perform various actions. This is famously illustrated in Abraham Maslow's hierarchy of needs, which presents different motivations at different levels. First, people are motivated to fulfill basic biological needs for food and shelter, as well as those of safety, love and esteem. Once the lower level needs have been met, the primary motivator becomes the need for self-actualization, or the desire to fulfill one's individual potential.

Explain the Maslows Need Hirarcy theory of motivation. State why it is criticized?

 The Maslow's Hierarchy of Needs five-stage model below (structure and terminology - not the precise pyramid diagram itself) is clearly and directly attributable to Maslow; later versions of the theory with added motivational stages are not so clearly attributable to Maslow. These extended models have instead been inferred by others from Maslow's work. Specifically Maslow refers to the needs Cognitive, Aesthetic and Transcendence (subsequently shown as distinct needs levels in some interpretations of his theory) as additional aspects of motivation, but not as distinct levels in the Hierarchy of Needs. Each of us is motivated by needs. Our most basic needs are inborn, having evolved over tens of thousands of years. Abraham Maslow's Hierarchy of Needs helps to explain how these needs motivate us all. Maslow's Hierarchy of Needs states that we must satisfy each need in turn, starting with the first, which deals with the most obvious needs for survival itself. Only when the lower order needs of physical and emotional well-being are satisfied are we concerned with the higher order needs of influence and personal development. Conversely, if the things that satisfy our lower order needs are swept away, we are no longer concerned about the maintenance of our higher order needs. Maslow's original Hierarchy of Needs model was developed between 1943-1954, and first widely published in Motivation and Personality in 1954. At this time the Hierarchy of Needs model comprised five needs. This original version remains for most people the definitive Hierarchy of Needs.1. Biological and Physiological needs - air, food, drink, shelter, warmth, sex, sleep, etc. 2. Safety needs - protection from elements, security, order, law, limits, stability, etc.3. Belongingness and Love needs - work group, family, affection, relationships, etc.4. Esteem needs - self-esteem, achievement, mastery, independence, status, dominance, prestige, managerial responsibility, etc. 5. Self-Actualization needs - realising personal potential, self-fulfillment, seeking personal growth and peak experiences.

To what extent and how is money an effective motivation

 

Despite the fact that most of the world works for the sake of financial reward, the need for money only obliges us to undertake certain sort of work, but doesn’t motivate in actual fact. For example, one of the theories of human motivation - ‘Money as a motivator theory’ is grounded on the belief that the need for money primarily motivates all workers (“Theories of Human,” 2004). Nonetheless, such a statement is true just to a limited extent, to say the least. Although the very word “money” (which in final outcome aims to ensure greater happiness) would be the most common reply to the question of whatever causes us to work, in its own right it lags behind the variety of other human values. “A simple pay raise, naturally not identified as part of the corporate culture, would be defined as an external motivator. Pay is expected, needed, and required - it is not necessarily an identifier of either corporate or personal identity” (Grossman, n.d., A brief pause section, para. 2). “Psychologists have been finding that rewards can lower performance levels, especially when the performance involves creativity” (Kohn, n.d., Introduction section, para. 2). Furthermore, “if a reward - money, awards, praise, or winning a contest - comes to be seen as the reason one is engaging in an activity, that activity will be viewed as less enjoyable in its own right” (Kohn, n.d.). Herzberg said about 'salary': "...when salary occurred as a factor in the lows (causes of dissatisfaction) it revolved around the unfairness of the wage system within the company... It was the system of salary administration that was being described... as something that went along with a person's achievement on the job. It was a form of recognition; it meant more than money; it meant a job well done; it meant that the individual was progressing in his work..."

 

You can not motivate managers. They are self propelled.” Comment on the statements

 Self propelled describes something that moves, progresses or acts on its own power without needing outside help. Like anything else, leadership ability is distributed throughout a population. Can you be a good leader without being a good manager? In my experience, the best leaders are also great managers, and the best managers have strong leadership capabilities. To be successful, you must have both a passion for improving your organization and the capability to drive your efforts through to completion. Some people are "natural" leaders, others prefer to operate capably within a well-defined context, and many people are somewhere in between. Natural leaders have important core abilities, but they often need careful training in the more practical aspects of converting a creative vision into a concrete program of action. Very often, they need to understand the length of the change lifecycle so they don't underestimate the importance of persistence. Most people, however, can develop their leadership skills by working at it. The process starts with the recognition that leadership requires "ambidextrous" activities. The first hurdle is recognizing that excellence at the day-to-day is critical, but it is not enough. The second is the need to look inside yourself and decide whether you are willing to be uncomfortable for a prolonged period while you conceptualize and lead the change. The ultimate reward is the deep satisfaction that comes from seeing something new that wouldn't have been there if you had not created it. Once you decide to become a leader, you can develop the characteristics you'll need by being thoughtful about the accomplishments that you want on your resume, and deciding to devote the time and attention needed to achieve them. Like anything else, practice makes perfect. To be a great leader, you need a certain level of intellect, but not necessarily great genius. You need a certain level of social skills, but not necessarily those of a great salesperson. However, you do need a compulsion to operate at two levels: to be a great doer, and a great reflector. Most importantly, to be a great leader, you need to find what you really like. That's where the passion, commitment, and integrity come from. In my experience, the most important underlying factor in leadership is whether a person has searched out and found a great match between what's in his or her heart, which is what he or she really enjoys, and the work situation. Think about the definition of leaders, "people who leave their footprints in their areas of passion." It's easy to focus on the first part, how to leave footprints. But the real power comes from the second, working in your area of passion.

Theory X Theory Y

 Theory X

In this theory, which has been proven counter-effective in most modern practice, management assumes employees are inherently lazy and will avoid work if they can and that they inherently dislike work. As a result of this, management believes that workers need to be closely supervised and comprehensive systems of controls developed. A hierarchical structure is needed with narrow span of control at each and every level. According to this theory, employees will show little ambition without an enticing incentive program and will avoid responsibility whenever they can. According to Michael J. Papa, if the organizational goals are to be met, theory X managers rely heavily on threat and coercion to gain their employee's compliance. Beliefs of this theory lead to mistrust, highly restrictive supervision, and a punitive atmosphere. The Theory X manager tends to believe that everything must end in blaming someone. He or she thinks all prospective employees are only out for themselves. Usually these managers feel the sole purpose of the employee's interest in the job is money. They will blame the person first in most situations, without questioning whether it may be the system, policy, or lack of training that deserves the blame. A Theory X manager believes that his or her employees do not really want to work, that they would rather avoid responsibility and that it is the manager's job to structure the work and energize the employee. One major flaw of this management style is it is much more likely to cause Diseconomies of Scale in large businesses.

 Theory Y

In this theory, management assumes employees may be ambitious and self-motivated and exercise self-control. It is believed that employees enjoy their mental and physical work duties. According to Papa, to them work is as natural as play. They possess the ability for creative problem solving, but their talents are underused in most organizations. Given the proper conditions, theory Y managers believe that employees will learn to seek out and accept responsibility and to exercise self-control and self-direction in accomplishing objectives to which they are committed. A Theory Y manager believes that, given the right conditions, most people will want to do well at work. They believe that the satisfaction of doing a good job is a strong motivation. Many people interpret Theory Y as a positive set of beliefs about workers. A close reading of The Human Side of Enterprise reveals that McGregor simply argues for managers to be open to a more positive view of workers and the possibilities that this creates. He thinks that Theory Y managers are more likely than Theory X managers to develop the climate of trust with employees that is required for human resource development. It's human resource development that is a crucial aspect of any organization. This would include managers communicating openly with subordinates, minimizing the difference between superior-subordinate relationships, creating a comfortable environment in which subordinates can develop and use their abilities. This climate would include the sharing of decision making so that subordinates have say in decisions that influence them. This theory is a positive view to the employees, meaning that the employer is under a lot less pressure than some one who is to influenced by a theory X management style.

Job Satisfaction

 Locke and Lathan (1976) give a comprehensive definition of job satisfaction as pleasurable or positive emotional state resulting from the appraisal of ones job or job experience. Job satisfaction is a result of employee's perception of how well their job provides those things that are viewed as important.

The relationship between job satisfaction and motivation at work has been one of the widely researched areas in the field of management in relation to different professions, but in Pakistan very few studies have explored this concept especially on banking sectors employees. According to Khan (1997), in the current business environment, organizations in all industries are experiencing rapid change, which is accelerating at an enormous speed. Finck et al. (1998) also stated that companies must recognize that the human factor is becoming much more important for organizational survival, and that business excellence will only be achieved when employees are excited and motivated by their work. In addition, difficult circumstances, such as violence, tragedy, fear, and job insecurity create severe stress in employees and result in reduced workplace performance (Klein, 2002). According to Watson (1994) business has come to realize that a motivated and satisfied workforce can deliver powerfully to the bottom line. Since employee performance is a joint function of ability and motivation, one of management’s primary tasks, therefore, is to motivate employees to perform to the best of their ability (Moorhead & Griffin, 1998).

Primary and secondary needs

Murray identified needs as one of two types:

1. Primary Needs
2. Primary needs are based upon biological demands, such as the need for oxygen, food, and water.
3. Secondary Needs
4. Secondary needs are generally psychological, such as the need for nurturing, independence, and achievement.

Motivation

 Motivation is a psychological feature that arouses an organism to act towards a desired goal and elicits, controls, and sustains certain goal directed behaviors. It can be considered a driving force; a psychological one that compels or reinforces an action toward a desired goal. For example, hunger is a motivation that elicits a desire to eat.

Motivation is an inner drive to behave or act in a certain manner. It's the difference between waking up before dawn to pound the pavement and lazing around the house all day. These inner conditions such as wishes, desires, goals, activate to move in a particular direction in behavior.

Motivation is the driving force by which humans achieve their goals. Motivation is said to be intrinsic or extrinsic. The term is generally used for humans but it can also be used to describe the causes for animal behavior as well.  According to various theories, motivation may be rooted in a basic need to minimize physical pain and maximize pleasure, or it may include specific needs such as eating and resting, or a desired object, goal, state of being, ideal, or it may be attributed to less-apparent reasons such as altruism, selfishness, morality, or avoiding mortality. Conceptually, motivation should not be confused with either volition or optimism. Motivation is related to, but distinct from, emotion

Decentralization

 Decentralization is a systematic delegation of authority at all levels of management and in all of the organization. In a decentralization concern, authority in retained by the top management for taking major decisions and framing policies concerning the whole concern. Rest of the authority may be delegated to the middle level and lower level of management.

Decentralization is not the same as delegation. In fact, decentralization is all extension of delegation. Decentralization pattern is wider is scope and the authorities are diffused to the lowest most level of management. Delegation of authority is a complete process and takes place from one person to another. While decentralization is complete only when fullest possible delegation has taken place. For example, the general manager of a company is responsible for receiving the leave application for the whole of the concern. The general manager delegates this work to the personnel manager who is now responsible for receiving the leave applicants. In this situation delegation of authority has taken place. On the other hand, on the request of the personnel manager, if the general manager delegates this power to all the departmental heads at all level, in this situation decentralization has taken place. There is a saying that “Everything that increasing the role of subordinates is decentralization and that decreases the role is centralization”. Decentralization is wider in scope and the subordinate’s responsibility increase in this case. On the other hand, in delegation the managers remain answerable even for the acts of subordinates to their superiors.

Implications of Decentralization

1.     There is less burden on the Chief Executive as in the case of centralization.

2.     In decentralization, the subordinates get a chance to decide and act independently which develops skills and capabilities. This way the organization is able to process reserve of talents in it.

3.     In decentralization, diversification and horizontal can be easily implanted.

4.     In decentralization, concern diversification of activities can place effectively since there is more scope for creating new departments. Therefore, diversification growth is of a degree.

5.     In decentralization structure, operations can be coordinated at divisional level which is not possible in the centralization set up.

In the case of decentralization structure, there is greater motivation and morale of the employees since they get more independence to act and decide

Centralisation

 Centralisation, or centralization (see spelling differences), is the process by which the activities of an organisation, particularly those regarding planning and decision-making, become concentrated within a particular location and/or group.

The term has a variety of meanings in several fields. In political science, centralisation refers to the concentration of a government's power – both geographically and politically – into a centralised government. In neuroscience, centralisation refers to the evolutionary trend of the nervous system to be partitioned into a central nervous system and peripheral nervous system. In business studies, centralisation and decentralisation refer to where decisions are made in the chain of command.

Centralization is said to be a process where the concentration of decision making is in a few hands. All the important decision and actions at the lower level, all subjects and actions at the lower level are subject to the approval of top management. According to Allen, “Centralization” is the systematic and consistent reservation of authority at central points in the organization. The implication of centralization can be:-

1. Reservation of decision making power at top level.
2. Reservation of operating authority with the middle level managers.
3. Reservation of operation at lower level at the directions of the top level.

The degree of centralization and decentralization will depend upon the amount of authority delegated to the lowest level. According to Allen, “Decentralization refers to the systematic effort to delegate to the lowest level of authority except that which can be controlled and exercised at central points.

Departmentation

 The process of grouping of activities into units for the purpose of administration is called departmentation. It can be defined "as the process by which activities or functions of enterprise are grouped homogeneously into different groups."

The administrative units are called divisions, units or departments. The followings are the basis of departmentation:

(a) When departmentation is done on the bask of functions the departments created are production, marketing, accounting, finance and personnel departments.

(b) When departmentation is done on the basis of geographical area, the departments are known as eastern department, western department, northern and southern department.

(c) Departmentation can be done on the basis of customers.

(d) Departmentation can be done on the basis of product handled.

Departmentation is a process resulting out of choice to group tasks according to some criterion. The resultant process of departmentation includes decisions regarding segregating organizational work, allocation of work to persons, telling all involved who is in charge and provide for the support needed by those. Given the nature of these choices and decisions, departmentation and the criteria or bases used for creating departments can have serious impact on the organization's effectiveness. Nine bases of departmentation are common among managerial choices:

Departmentation by numbers, Departmentation by time of duty,  Departmentation by function,  Departmentation by Process or Equipment, Departmentation by Location or territory, Departmentation by Product,  Departmentation by Customer,  Departmentation by Market or Distribution Channel,  Departmentation by Services.

Departmentation by Customers

Some advantages of this type of structure are:

(i)     Greater specialized customer service.

(ii)    Where marketing channels are considerably different for various types of customers, this type of structure is very useful.

Some disadvantages of this type are:

(iii)   May not be enough work for certain types of customers. Hence, under employment of facilities and manpower specialized in terms of customer groups.

(iv)  Problems of co-ordination might pose difficulties.

(v)   Unequal development of customer groups.

Human Resource Development (HRD)

 The part of human resource management that specifically deals with training and development of the employees.Human resource development includes training an individual after he/she is first hired, providing opportunities to learn new skills, distributing resources that are beneficial for the employee's tasks, and any other developmental activities.

Human Resources Development (HRD) as a theory is a framework for the expansion of human capital within an organization through the development of both the organization and the individual to achieve performance improvement.^[1] Adam Smith states, “The capacities of individuals depended on their access to education”. The same statement applies to organizations themselves, but it requires a much broader field to cover both areas.

Human Resource Development (HRD) is the framework for helping employees develop their personal and organizational skills, knowledge, and abilities. Human Resource Development includes such opportunities as employee training, employee career development, performance management and development, coaching, mentoring, succession planning, key employee identification, tuition assistance, and organization development.

The focus of all aspects of Human Resource Development is on developing the most superior workforce so that the organization and individual employees can accomplish their work goals in service to customers.

Human Resource Development is the integrated use of training, organization, and career development efforts to improve individual, group and organizational effectiveness. HRD develops the key competencies that enable individuals in organizations to perform current and future jobs through planned learning activities. Groups within organizations use HRD to initiate and manage change. Also, HRD ensures a match between individual and organizational needs.

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leadership

 

Leadership has been described as “a process of social influence in which one person can enlist the aid and support of others in the accomplishment of a common task". Other in-depth definitions of leadership have also emerged.

The ability of a company's management to make sound decisions and inspire others to perform well. Effective leaders are able to set and achieve challenging goals, to take swift and decisive action even in difficult situations, to outperform their competition, to take calculated risks and to persevere in the face of failure. Strong communication skills, self-confidence, the ability to manage others and a willingness to embrace change also characterize good leaders.

Leadership is "organizing a group of people to achieve a common goal". The leader may or may not have any formal authority. Studies of leadership have produced theories involving traits, situational interaction, function, behavior, power, vision and values, charisma, and intelligence, among others. Somebody whom people follow: somebody who guides or directs others.

 Leadership involves

(1) establishing a clear vision,

(2) sharing that vision with others so that they will follow willingly,

(3) providing the information, knowledge and methods to realize that vision, and

(4) coordinating and balancing the conflicting interests of all members and stakeholders.

A leader steps up in times of crisis, and is able to think and act creatively in difficult situations. Unlike management, leadership cannot be taught, although it may be learned and enhanced through coaching or mentoring. Someone with great leadership skills today is Bill Gates who, despite early failures, with continued passion and innovation has driven Microsoft and the software industry to success. 

Communication Process

 

The sharing of meaningful information between two or more people with the goal of the receiver understanding the sender's intended message. In business, the effectiveness of a company's internal and external communication process is often very important to its overall success.

Communication (from Latin "communis", meaning to share) is the activity of conveying information through the exchange of thoughts, messages, or information, as by speech, visuals, signals, writing, or behavior.

The communication process is the guide toward realizing effective communication. It is through the communication process that the sharing of a common meaning between the sender and the receiver takes place. Individuals that follow the communication process will have the opportunity to become more productive in every aspect of their profession. Effective communication leads to understanding.

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 Figure: Communication model

The communication process is made up of four key components. Those components include encoding, medium of transmission, decoding, and feedback. There are also two other factors in the process, and those two factors are present in the form of the sender and the receiver. The communication process begins with the sender and ends with the receiver.

Communication requires a sender, a message, and a recipient, although the receiver doesn't have to be present or aware of the sender's intent to communicate at the time of communication; thus communication can occur across vast distances in time and space. Communication requires that the communicating parties share an area of communicative commonality. The communication process is complete once the receiver has understood the message of the sender.