UNIT IV - DIRECTING

Foundations of individual and group behaviour – motivation – motivation theories – motivational

techniques – job satisfaction – job enrichment – leadership – types and theories of leadership –
+ communication – process of communication – barrier in communication – effective
communication–communication and IT.

4.1 INTRODUCTION:
4.1.1 Directing:
 Directing is the process of instructing, guiding, motivating and inspiring the human factors to achieve
organizational objectives.
 It is a continuous process and performed at every level of management
 It is the final action of a manager in getting others to act after all preparations have been completed.
Nature or Characteristics of Directing
 Element of Management
 Continuous process
 Pervasive Function
 Linking function
 Management of Human Factors
Scope of Directing (or) Significance of Directing
The scope of directing is as follows
 Initiates action
 Ensures coordination
 Improves efficiency
 Facilitates change
 Assists stability and growth
Elements of Directing
The three elements of directing are
a. Motivation
b. Leadership
c. Communication
Techniques of directing
 Delegation
 Supervision
 Orders and instructions
 Motivation
 Leadership
 Communication

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4.2 FOUNDATIONS OF INDIVIDUAL AND GROUP BEHAVIOR:
Q1. Discuss in detail about the foundation of individual and group behavior.

Organizational Behavior:
 Organizational behavior can be defined as “The Study of Human behavior in organizational settings,
the interface between human behavior and the organizational context and the organization itself.
4.2.1 Foundations of Individual Behavior:
 An individual makes a variety of contributions to an organization in the form of efforts, skills, ability
time, loyalty and so on.
 These contributions satisfy various needs and requirements of the organization.
 In return for contributions, the organization provides incentives such as pay, promotion and job
security to the employee.
 If both the Individual and the organization consider the psychological contract fair and equitable,
they will be satisfied with the relationship and are likely to continue it.
 If either party perceives an imbalance or inequity in the contract, it may initiate a change.
 A major challenge faced by an organization, thus is to manage the psychological contract.
 One specific aspect of managing psychological contracts is managing the person-Job fit.
 The person –Job fit is the extent to which the contributions made by the individual match the
incentives offered by the organization.
 An organization achieves a perfect person- job fit when it exactly fulfills the employee’s needs.
 Such a perfect person- Job fit is rarely achieved due to various reasons such as imperfect selection
procedures, differences in individual skills, constant change in the needs and requirements of people
and organization.
 Thus the behaviour of individuals in organization is the primary concern of management and it is
essential that the managers should have an understanding of the factors influencing the behaviour of
the employees they manage.
 Thus the behavior of individuals in organization is the primary concern of management and it is
essential that the managers should have an understanding of the factors influencing the behavior of
the employees they manage.

Factors Influencing Individual Behaviour:

 Ability
 Perception
 Personality
 Motivation
 Organizational Behavior and resources.
4.2.2 Foundations of Group Behavior:
 The group behavior is essential for an organization to achieve its goals.
 Elton Mayo and his associates conducted experiments and came to know that group behavior has
great impact on productivity, the importance of group behavior has been realized from time to time.
 Human behavior consists of individuals, who move in groups.

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  Group behavior depends on many factors such as Organizational conditions, group member
resources, group structure, group status, group composition, group process, group tasks, group
decision making and group thinking.
Group formation and development:
 Groups can form when individuals with similar goals and motives come together.
 Groups are formed voluntarily.
 The individuals of a group can join and leave the group any time.
 They can also change their tasks
 The motives for which the individuals join the group are as follows:
 Organizational Motives to join groups.
 Personal motives to join groups.
Stages of group development
 Members of new group are unfamiliar with one another’s personalities and are hesitant in their
interactions.
 The new group must pass different stages of development which are as follows
 Mutual acceptance.
 Communication and decision – making.
 Motivation and productivity.
 Control and organization.
Characteristics of Mature groups
As groups pass through the stages of development to maturity they begin show the signs of four
characteristics as follows:
 Role Structures:
 Role structure is the set of defined roles and inters relationships among those roles that the group
members defines and accept.
 Behavioral Norms:
 The behavioral norms are temporary and can be changed in accordance with the needs of the
group members.
 It can be effectively achieved based on the following factors
 The extent of cooperation with management
 Maintenance of an efficient communication system
 Satisfaction of the needs of group members
 Cohesiveness:
 Cohesiveness is defined as the attractiveness of group members towards the group. It also
emphasizes on the group’s ability to satisfy its member’s needs.
 It helps the group members to work more consistently and make greater contribution to the
achievement of the organizational goals.
 Informal leadership:
 Each informal group has one or more leaders.
 These leaders come forward on the basis of acceptance of all the group members.
 Every informal group has one primary leader apart from the secondary leader.

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  The primary leader has more influence than secondary leader.
4.3 MOTIVATION
Definition:
 Motivation" is a Latin word, meaning "to move".
 According to Koontz and O’ Donnell,” Motivation is a general term applying to the entire class of
drives, desires, needs wishes and similar forces that induce an individual or a group of people
to work”.
 Scott defines, “Motivation means a process of stimulating people in action to accomplish
desired goals”.
 Edwin B.Flippo, “Motivation is the process of attempting to influence others to do your will
through the possibility of reward”.
4.3.1 NATURE AND CHARACTERISTICS OF MOTIVATION
Q2. Enumerate the Nature and importance of Motivation. [Dec 2007] (or) Does motivation
important for organization development / achievement? Justify your answer with Maslow’s
hierarchy of needs. [May 2015] (or) Discuss about the nature and importance of motivation.

Nature of motivation
The characteristics of motivation are
 Motivation is an unending process because human needs are unlimited.
 It deals with psychology. An efficient worker will not do the work well unless he is properly
motivated.
 It directs human behaviour towards certain goals.
 Frustrated man cannot be further motivated unless his basic needs are satisfied.
 Motivation can be either positive or negative.
 Positive motivation implies use of incentives, rewards etc. to satisfy human needs
 Negative motivation emphasis penalties, threatening etc.
Motivation and job satisfaction are different
 Motivation: goal oriented behaviour
 Job satisfaction: when the outcome of job performance has been achieved
Importance of motivation
Motivation is one of the important functions of the management without which organizational objectives
are difficult to achieve.
 It creates willingness to do the work in a better way.
 Improves the efficiency of operation.
 A proper utilization of human resources is possible since it inspires employees to make best possible
use of different factors of production.
 It leads to job satisfaction, as a result labour absenteeism and turnover is reduced.
 It helps to solve the labour problems and maintains good labour relations.
 Motivation is the basis of co-operation
 Higher Motivation helps to reduce resistance to change.
 Financial and non-financial incentives not only retain the existing employees.
 It also attracts the competent employees from outside the enterprise.
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  A proper motivation scheme promotes a closer relationship between enterprise and workers.
4.3.2 TYPES OF MOTIVATION:
Q3. Discuss about the various types of Motivation.
The following are some of the types of motivation
i. Positive Motivation
ii. Negative Motivation
iii. Extrinsic Motivation
iv. Intrinsic Motivation

(i) Positive Motivation:

 It is the process of attempting to influence others to do your will through rewards
 Based on rewards
 Economic benefits –Increment, Bonus, Promotion
 Participation in decision making process
 Delegation of authority and responsibility are some of the methods of positive motivation.
 Such motivations improve the standard of performance, lead to good team spirit, a sense of co-
operation and feeling of belonging and happiness.
(ii) Negative Motivation:
 This motivation is based on a sort of penalty, punishment, a force of fear or threats.
 The fear of punishment affects the behavioral changes
 If the worker fails to complete the work they may be threatened with demotion, termination, lay off,
pay off cut etc.
 Gives Maximum benefits in the short run.
 In long run they become disloyal to the organisation
(iii) Extrinsic Motivation:
 Motivation by external factors
 Financial in nature
 Incentives and rewards, health insurance, holidays, retirement benefits, free medical services, vacation
pay.
(iv) Intrinsic Motivation (or) Power Motivation:
 It is available at the time of performance of work
 Non Financial
 Provides satisfaction during work
 Praise, recognition, participating in decision making.

4.4 MOTIVATIONAL THEORIES:

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 Q4. Explain the different motivation theories and also discuss how it is useful in leadership of
Organization. [May 2012, May 2014, Dec 2018] (or) Discuss the Maslow’s need hierarchy
theory. Compare and discuss the Maslow’s and Herzberg’s theory of motivation. [May 2011,
May 2013] (or) Does motivation important for organization development achievement?
Justify your answer with Maslow’s hierarchy of needs. [April 2015, Dec 2011, May 2016] (or)
Compare and contrast early theories of motivation. [May 2018] (or) Name the motivational
theories and explain any two of them. [May 2016, Dec 2017] (or) Discuss the contemporary
theories of motivation. [May 2017][May 2019]

 Maslow’s Need hierarchy Theory

 McClelland’s Need Theory of Motivation
 Mc-Gregor’s Theory X and Theory Y
 Adam’s equity theory
 Vroom’s Expectancy Theory
 Porter and Lawler Expectancy Theory
 Alderfer’s ERG theory
 Herzberg’s Two factor theory
 Dual-Model Theory (Mills theory)
4.4.1 Maslow’s Need hierarchy Theory
Q5. Explain about Maslow’s Hierarchy of needs theory and Herzberg’s motivation Hygiene
theory. [DEC 2007, 08, MAY 2009,10,11,12,13,14]
Maslow’s Hierarchy of needs theory is one of the most popular theories of motivation in the management.
 All people have variety of needs.
 At any given time some needs are satisfied and some are unsatisfied.
 The unsatisfied need is the starting point in the motivation process
 Maslow proposed human needs in the form of hierarchy from the lowest to highest and included that
one set of needs is satisfied then it ceases to be a motivator
 Human needs placed in ascending order of importance.
 It is like a pyramid
a. Physiological Needs:
 Lower level needs
 It forms the foundation of hierarchy and have highest strength in the form of motivation
 Related to the survival and maintenance of life
 Arises from basic needs -Food, clothes, shelter ,water etc
 Primary needs to be satisfied before all other needs
 Once the basic needs are sufficiently satisfied then the higher level needs become important and
start acting as motivators
b. Safety or Security needs:
 Needs to free from economic threats and physical harm
 Avoidance of unexpected problems such as dismissal, disaster, bodily safety, Job security, Insurance
 Organisation can satisfy through Insurance plan, job security, pension plan, medical scheme
 Job Security is the key for any individual.
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c. Social Needs:
 Man is a social being.
 A sense of belonging and acceptance
 Needs for love, friendship, social interaction, affection
 Needs to love and to be loved
 A man find satisfaction in association with others
d. Esteem (or) Ego Needs:
 Related to status, self-respect, self-confidence, respect and recognition from others.
 Needs produces feeling of prestige, power and control.
 Self-respect: Internal recognition, self-confidence , achievement, self-respect
 Respect from others: related with one’s reputation, external recognition, status
e. Self actualisation (or) fulfilment:
 It is a Growth need
 Realising his full potential.
 To realise one’s capability and potential to the fullest extent possible
 Need for becoming what one is capable of becoming
4.4.2. McClelland’s Need Theory of Motivation:
Q6. Explain McClelland’s Need Theory of Motivation.
 David McClelland developed 3 types of basic motivating needs
 He classifies them as need for power, need for affiliation and need for achievement
Power
Power
Achievement
Achievement
Affiliation
Affiliation
a. Need for Affiliation
 Social need
 Need for companionship and support
 Motivated by the jobs that need frequent interaction with coworkers

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  High need for affiliation needs harmonious relationships with other people and Need to feel accepted
by other people.
 They perform well in customer service and interaction situations.
b. Need for Achievement
 Need for accomplishment and success in competitive situations
 The basic characteristics of achievers are
 Take responsibility to find a solution to a problem
 Want to win
 Not motivated by money instead utilise money for achievement
 Achievers need regular feedback in order to monitor the progress of their achievements.
 They prefer either to work alone or with other high achievers.
c. Need for Power
 Ability to control the activity of others
 Need to dominate, influence and control
 People with high needs look for leadership
 They like to set goals, make decision and direct activities
Limitation of McClelland’s Theory
 The use of projective technique is objectionable.
 The evidence in support this theory is fragmentary and doubtful.
 Achievement motivation cannot be taught. It is because acquisition of motives occurs in childhood
and it is difficult to change them one established.
4.4.3. Mc-Gregor’s Theory X and Theory Y
Q7. Explain about Mc-Gregor’s Theory X and Theory Y.
 McGregor developed a set of theories on the basis of human behaviour.
 These theories are commonly known as “Theory X” and “Theory Y” which involves certain
assumptions about human nature.
a. Theory – X
According to McGregor, theory X is based on the following assumptions of human nature and behaviour.
 Average human dislikes to work even if it is possible.
 Therefore people must be threatened with punishment to make them work.
 The average human being prefers to be directed.
 He avoids the responsibility.
 He has no ambition in life.
 He wants only job security.
 He is resistance to change by nature.
Conclusion:
 The above assumptions are negative in nature. So, a manager must take effective steps to direct and
control the activities of subordinates.
 Theory ’X’ is pessimistic, static and rigid. It leads to authoritative type of management.
b. Theory - Y
According to theory-Y, the following assumptions are made about the human nature and behaviour.

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  Work is as natural as play or rest.
 The average human being has the tendency to work.
 Man will have self-direction and control.
 People will be committed to the objectives, if they are properly rewarded.
 Workers ready to accept the responsibility.
 High degree of creativity.
Conclusion:
 Theory Y represents a modern and dynamic nature of human beings.
 It is based on positive motivation.
 So, management does not need to apply much direction and control on the employees.
 If the employee’s needs are satisfied, they will be committed to the objectives of the organization.
 Theory Y is optimistic, dynamic and flexible.
Comparison between Theory X and Theory Y:
Q8. Compare Theory X and Theory Y

S. No Theory X Theory Y
1. The average human dislikes work. Work is as natural as play or rest.
2. People are un ambiguities and prefer Ambitious and capable of directing their own.
to be directed by other
3. They avoid the responsibility. They accept responsibility under proper conditions.
4. External control, threatening and close Self-directed and self controlled
supervision required.
5. People lack self-motivation People are self-motivated.
6. The authority is centralized and it Decentralization and participation in decision-
leads to autocratic leadership. making. Democratic leadership is followed.
7. They have less creativity and resist to They have high degree of imagination.
change.
8. It is pessimistic, static and rigid. It is optimistic, dynamic and flexible.
4.4. 4. Adam’s Equity theory of Motivation:
Q9. Explain Adam’s equity theory of motivation. [Dec 2011]
 According to this theory, people will be motivated when they perceive that they are treated
equally.
 This theory points that people are motivated to maintain the relationship between their
performances and rewards in comparison with others.
 Individuals make contributions for which they get rewards.
Inputs- past training and experience, special knowledge
Outcomes/ Rewards– Pay, recognition, Status
O/I = Outcomes of a person = Outcomes of another person
inputs by a person inputs by another person
 Individuals compare the O/I ratio with the O/I ratio of others of same level or status
 If individual feels this ratio is equal, he feels equity and motivated.
 If individual feels this ratio is less, he feels under paid and frustrated.

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  If individual feels this ratio is more, he feels over paid and guilty.
 In this case he is likely to reduce the inputs to maintain equity.
4.4.5 Vroom’s Expectancy Theory
Q10. Discuss on Expectancy theory of Motivation.
Expectancy theory
 Expectancy theory says that people will be motivated to the extent to which they believe that their
efforts will lead to good performance.
 That good performance will be rewarded, and are offered attractive rewards.
 One of the most recent models of motivation has been developed by Victor Vroom.
 Expectancy theory represents a comprehensive valid and useful approach to understand motivation.
 It is a theory based on self-interest, wherein each individual seeks to maximize his expected
satisfaction.
Vroom’s Expectancy Theory

Valence
Valence
Expectancy
Expectancy
Instrumentality
Instrumentality
a. Valence
 People have preferences (valances) for various rewards and outcomes.
 Valance refers to the importance or personal value that an individual places on the rewards which
can be achieved on the job.
 For example, a person may be motivated to work hard, not to get pay rise but to get
recognition and status. Another person may be more interested in job security than with
status.
b. Expectancy
 Expectancy refers the relationship between effort and performance.
 When expectancies are strong, employees believe that their hard work and efforts will result in
good performance, so they work harder.
 When expectancies are weak, employees believe that how hard they work, they won't be able to
perform their jobs successfully, so they don't work as hard.
 For e.g. a student work hard during the semester because he expects to do well in the exam

c. Instrumentality
 Instrumentality refers the relationship between performance and rewards.
 When instrumentality is strong, employees believe that improved performance will lead to better
and more rewards, and they choose to work harder.
 When instrumentality is weak, employees don't believe that better performance will not result in
more or better rewards, so they choose not to work hard.
 Expectancy theory holds that for people to be highly motivated, all three variables—valence,
expectancy, and instrumentality—must be high.

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 Thus, expectancy theory can be represented by the following simple equation:
Motivation = Valence x Instrumentality x Expectancy
 One way companies can increase expectancy, or the perceived relationship between effort and
performance, is through training.
4.4.6 Porter and Lawler Expectancy Theory
Q11. Explain Porter and Lawler Theory of motivation. [Dec 2011]
 Lyman W. Porter and Edward E. Lawler proposed a multi-variate model to explain the complex
relationship that exists between job attitudes and job performance.
 According to Porter and Lawler, the performance in organization appears to be a function of three
important factors.
 An employee must want to perform the assigned jobs.
 Motivation alone will not ensure the task performance.
 A person must have the necessary abilities and skills.
 Finally, a person must usually have an accurate knowledge of the requirements of the job, if he is
expected to devote his energies fully on the assigned tasks.
i. Effort:
 Effort refers to the amount of energy exerted by an employee on a given task.
 It will not directly lead to a specific level of performance.
 Perceived reward probability refers to the individual perception of the probability that differential
rewards depend upon differential amounts of effort.
 Motivation is seen as the force on the employee to expand effort.
ii. Performance:
 Effort alone is not enough.
 Performance results form a combination of the effort that an individual put forth.
 The ability which he has and the way he perceives the role and he should take.
iii. Rewards: performance leads to two types of rewards. Intrinsic and Extrinsic.
Intrinsic rewards are given to a person by himself for a good performance.
 They include feelings of having accomplished something worthwhile.
 Intrinsic rewards are subject to fewer disturbing influences and thus are likely to be more directly
related to the good performance.
Extrinsic rewards, such as pay, promotion, job-security good working condition, status.
 Extrinsic rewards are given by organization and are indirectly related to performance.
 In addition, the perceived equitable rewards affect the performance satisfaction relationship.
iv. Satisfaction:
 If actual rewards meet or exceed perceived equitable rewards, the individual will feel satisfied.
Otherwise, he will be dissatisfied.

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 Perceived
equitable
Value of rewards
rewards
Ability &
Traits
Intrinsic
Satisfaction
rewards
Performance
Effort accomplishm
ent
Extrinsic
rewards

Role

Perceived effort
– reward
probability

Conclusion:
 Porter and Lawler have refined and extended Vroom’s version and provided a more application
oriented model.
 It is true that it proved to be quite complex and difficult to measure.
 In spite of its complexity, the model provides a useful tool for understanding, predicting and
influencing behaviours and attitudes in organization.
4.4.7. Alderfer’s ERG theory:
Alderfer’s ERG theory collapses Maslow’s five needs into three:
a. Existence: It relates to Safety and basic needs
b. Relatedness: It relates to belongingness
c. Growth: It relates to Esteem and self actualisation.

Alderfer’s ERG theory

4.4.8. Herzberg’s hygiene theory (or) Two factor theory
Q12. Explain in detail about Herzberg’s hygiene theory / Two factor theory.
Situational Theory:
 These suggest leader’s behaviour and situational factors. This is a combination of both these factors
that determine leadership effectiveness.

Herzberg’s Motivation-Hygiene theory:

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  In the late 1950’s, Frederick Herzberg and his associate have conducted a study of motivation.
 This can also be known as “Herzberg Motivation maintenance theory” or “Motivation Hygiene theory”
or “Two-factor theory of motivation” or “The Dual Structure Theory”.
 Herzberg and his associates interviewed 2000 engineers and accountants from 11 industries in
Pittsburg area of USA.
 During interview he asked about “Previous job experiences”
 These men were asked to recall the specific incident in their experience which made them feel good
or bad about their jobs.
 An analysis of their answers revealed that feelings of unhappiness & dissatisfaction were related to
the environment in which people were working.
 It is clear if a factor is responsible for job satisfaction, the absence would not mean job satisfaction.
 Similarly the opposite of job satisfaction is not dissatisfaction, but it is no job dissatisfaction.
 Herzberg’s conducted that there are 2 different categories of needs.
 Thus, these theories are based on two factors: Motivational factors and Hygiene or Maintenance
factor.
a. Hygiene factors are required to maintain reasonable level of satisfaction among employees.
 These factors do not provide satisfaction but their absence will dissatisfy them.
 The word hygiene means maintaining but not improving
 The factors listed as follows in order of importance:
Hygiene Factors (leading to dissatisfaction):
 Company Policy
 Supervision
 Relationship with Boss
 Work Conditions
 Salary
 Relationship with Peers
b. Motivation factors create satisfaction to the workers at the time of presence but their absence does
not cause dissatisfaction.
The factors listed as follows in order of importance:
Motivators (leading to satisfaction):
 Achievement
 Recognition
 The work itself
 Responsibility
 Advancement
 Growth
 Both lists contain factors that lead to motivation, but to a differing extent because they fulfill different
needs.
 Herzberg’s two factor theory is an extension of Maslow’s need hierarchy theory.
 The hygiene factors satisfy the first three levels of Maslow’s theory -physiological, safety, social needs
 The motivation factors satisfy the last two levels of Maslow’s theory –Esteem and self actualization
needs.
4.4.9. Dual-Model Theory (Mills theory)
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 Q13. Explain in detail about Dual-Model Theory / Mills theory.
 According to Raymond E. Miles, the managerial task is to integrate organizational variable
(goals, technology and structure) with human variables (capabilities, attitudes, values, needs and
demographic characteristic) into an effective and efficient system.
 Miles identified three theories of management known as traditional, human relations and human
resources models.
 The traditional model is similar to Theory X, while the human resources model is closely related
to Theory Y. The human relations model seen as Theory X with participation.
i). Traditional model:
 Its emphasis is on controlling and directing.
 According to this model, the members of the enterprise will meet specific goals if tasks and
procedure are specified and members are properly selected, trained and paid.
ii). Human relations model:
 This model gives an attention to social and egoistic needs.
 It is recognized that fair treatment and pay are not enough.
 There should be a sufficient control and preventive steps are also taken to obtain desired
contributions of enterprise members.
iii). Human resource model:
 It is different that of above two.
 Under this mode, the manager is seen as a developer; will wisher and facilitator who help
subordinates achieve performance aims.
 In this model, self-direction and self-control are important.
 There is a great deal of participation in goal setting.
4.5 SPECIAL MOTIVATIONAL TECHNIQUES
Q14. Explain in detail about various motivational techniques.
Various Theories of motivation described above suggest that several factors influence the
performance of employees.
a. Money
 Money is one of the important motivational factors.
 It may be in the form in wages, incentives, bonuses, company paid insurances, or any other things that
may be given to people for performance.
 The manager should remember the following things when money is a kind of motivator.
 Money is likely to be more important to people who are raising a family.
 Some people consider money as a major motivating force while others may not.
 Various enterprises make wages and salaries competitive within their industry and their area to
attract and hold people.
 Money not only satisfies physiological and security needs but is also a source of status and prestige
in society.
 Management should ensure that individual working in the same category is given the same or nearly
the same salary and wages within the organization as well as the other organization.

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  Even if a company is committed to the practice of comparable wages and salaries, a well-managed
firm need never be bound to the same practice with respect to bonuses.
b. Participation
 Workers consultation and participation in work related issues have favorable effect on their
motivation and performance.
 Participation is also a means of recognition.
 It appeals to the need for affiliation and acceptance.
 Above all, it gives people a sense of accomplishment.
c. Quality of Working Life
 Good physical working conditions such as right temperature, adequate lighting, proper ventilation,
noise free atmosphere have positive effects on the motivation and performance of workers.
d. Job Security
 Job Security is an important motivator, although in certain circumstances it can act as a powerful
short-term demotivator.
 To threaten people, the loss of employment is to provide a negative incentive.
e. Effective Communication
 Communication at all levels of the organization must be effective, both up and down the chain.
 Mangers and team leaders must make time to listen the grievances of their staff.
 Providing equal opportunities or benefits, such as promotions, and be fair in enforcement of company
regulations.
f. Power of Authority
 Many professionals seek power to influence others.
 The managers can satisfy this need in several ways, such as making them responsible for a task force
on a specific topic, or getting them to lead an important technical project.
 Mangers must also willing to delegate meaningful decision-making tasks to subordinates.
g. Financial and Non-financial Incentives
 Incentives are the inducements which are offered to employees in order to direct their behaviour
towards enterprise objectives.
 These are the objects perceived to satisfy needs. Incentives can be broadly be classified into two
categories:
(i) Pecuniary incentives, and
(ii) Non-Pecuniary incentives
i. Financial or Pecuniary incentive are payments directly or indirectly in money wages, salaries, bonus,
profit sharing retirement pay, vacation apply, etc. are the examples of Pecuniary incentives.
Financial incentives can be of two types:
a. Individual incentives: individual to achieve higher performance to earn higher financial rewards.
b. Group incentives: includes profit sharing, production bonus, pension plan, etc. wherein employees are
rewarded collectively.
ii. Non-financial or Non - Pecuniary incentives provide psychological and emotional satisfaction rather
than financial rewards. Status, responsibility, recognition of work, job security, challenging job, team
spirit, competition and participation are examples of non-financial incentives.
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h. Work challenge:
 Job is a great motivating force.
 It is an ability of the job holder to get job satisfaction and inspires the employee to work hard.
 A pleasant and interesting job allows the employee to satisfy his natural instincts and creates interest
in the work.
 Job enrichment can be used to make the job more challenging and interesting.
i. Recognition and status:
 Acknowledgment and appreciation of good performance is called recognitions.
 It inspires employees to maintain and even improve performance.
 Status means formal position in the organization.
 Recognition and status motivate people by satisfying their ego needs.
j. Job security:
 Employees want economic security.
 Job security ensures regular income in future and relieves them of worry.
 Job security is important in India due to widespread unemployment.
 However, employees may become complacent when they know that their services cannot be
terminated.
k. Responsibility:
 Most people prefer independence and responsibility in place of routine and monotonous jobs.
 Responsibility satisfies natural desire and inspires people to put greater efforts.
l. Competition:
 Health competition among employees inspires them to work hard and improve their performance.
 However completion can be a source of motivation only when better performance is recognized and
rewarded.
m. Opportunity for growth:
 Most of the employees want to grow in their career.
 An organization can motivate its employees by providing them opportunities for service training and
promotion.
n. Knowledge of results:
 The knowledge of work done and experience of progress helps to improve employee’s performance.
 Completion of the task is a strong motivator.
o. Supportive relationships:
 Cordial relations with supervisor enhance commitment in work and motivate employees to work
effectively.
p. Participation:
 Employee Participation in management refers to the active involvement of workers or other
representatives in the process of decision making.
 It is job of a management initiated action to secure the cooperation, commitment and contribution of
workers towards the accomplishment of organization.

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4.6 JOB SATISFACTION:
Q15. Write short notes on Job enrichment and job satisfaction.
 Job satisfaction is the amount of overall positive effect or feelings that individuals have towards
their job.
 Job satisfaction is the result of various attitudes the employee hold towards his job, towards related
factors and towards life as a whole.
Approaches to evaluate job satisfaction:
 The first approach is that work attitudes such as job satisfaction, job performance are dispositional in
nature, i.e., they are stable, positive or negative disposition learned through experiences.
 The second approach is the social information processing model, which suggests that Job satisfaction
and other workplace attitudes are developed or constructed out of experiences and information
provided by others at the work place.
 The third approach is the Information processing model which is based on the accumulation of
cognitive information about the work place and one’s job.
Importance of Job satisfaction:
 Job satisfaction significantly contributes to employee productivity and morale.
 If employees are satisfied, turnover and absenteeism will be less and productivity will be more.
 Further satisfaction of individual expectations results in group integration and cohesiveness.
Factors relating to Job satisfaction:
 Job satisfaction influences a series of factors such as nature of work, salary, advancement
opportunities, work groups and work conditions.
 Some of the most important factors relating to Job satisfaction are briefly stated below:
 Personal Factors:
 These factors include the individual employee’s personality, age, education level & intelligence
etc.
 There is no clear research evidence between educational level and Job satisfaction.
 Job factors:
 These factors include the type of work to be performed, skill required for work performance,
occupational status involved in the job etc.
 The type of work is very important, researches shows that varied work generally brings more
satisfaction than routine work.
 Organizational factors:
 These factors include security, wages and salaries, fringe benefits, opportunities for
advancement, working conditions etc.
 Social and economic security to employees increases job satisfaction, the wages and salaries and
fringe benefits are definitely the main factors that affect job satisfaction of employees.
 Desirable working conditions are also important to job satisfaction.
Measures to increase Job satisfaction:
 There are many factors that influence job satisfaction and the management must be able to work
broad strategies that may help increase job satisfaction.

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 The management must also be able to identify the specific factors that causes the individual
differences and must evolve appropriate strategies that could raise the job satisfaction of those
particular segments.
4.7 JOB ENRICHMENT:
 Job enrichment is an extension of job enlargement technique.
 In job enrichment, a job may be enriched by variety of the following steps:
 Giving workers more freedom in deciding about things such as work, sequence or acceptance or
rejection of materials.
 Giving workers feeling of personal responsibility for their tasks.
 Encouraging participation of subordinates and interaction between workers.
 Giving people feedback on their job performance, preferably before their superiors get it.
 Involving workers in the analysis and change of physical aspects of the work such as layout of
plant, temperature, lighting and cleanliness.
 The job enrichment programme can only be initiated and implemented successfully if the
conditions for such a program are highly adequate and receptive.
 It cannot work in vacuum.
 Its success is dependent on the existing organizational structure, environment technology etc.,
 It is realized that the companies which implemented the job enrichment approach has shown
considerable increase in the productivity, reduction in the absenteeism and turnover and
improvement in the worker’s morale.
Advantages:
 Increases the productivity
 Reduction in the absenteeism and turnover
 Improvement in the worker’s morale.
 Improves decision making ability
 Reduces work load of superiors.
Limitations:
 It has negative implications if employees are not comfortable with decision making task.
 Some jobs cannot be enriched beyond a certain point
 Superiors may feel that power is being taken away from them and given to juniors. This might lead to
ego problems.
 Job enrichment is basically limited to non managerial jobs.
 Workers take time to adjust to the challenging demands made by job enrichment.
 Some people are internally satisfied with the organization. For such people it cannot solve the
problem.
Making Job enrichment more Effective:
 Use job enrichment selectively after taking in to account situational variables such as job
characteristics, personal characteristics of employees, organizational level etc.
 Provide a supportive climate for innovation and change.
 Job enrichment demands a development effort. Managers must have a better understanding with
people who involved in this process.

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 Develop the skill of the participants in a job enrichment programme first. If skills to carry out the
decision making and goal setting responsibilities are not provided, he gets more frustrated.
4.8 LEADERSHIP
 Leadership is the process of influencing the behaviour of others to work.
 Leadership inspires and motivates people to work together.
4.8.1 Meaning and Definition of Leadership:
 Leadership is the process of influencing the behavior of others towards the accomplishment of goals in
a given situation.
 Koontz and O’ Donnel have define,” Leadership is the art of process of influencing people so that
they will strive willingly towards the achievement of group goals”.
 George R.Terry has defined.” Leadership is the activity of influencing people to strive willingly for
group objectives”.
 Bernard keys and Thomas case have defined,” Leadership is the process of influencing and
supporting others to work enthusiastically toward achieving objectives”.
 According to the Encyclopedia of social sciences “Leadership refers to the relation between an
individual and a group around some common interest ad behaving in a manner directed or
determined by him”.
 Hereby, Paul and Ken Blanchard defines, “Leadership is the process of influencing the activities of
an individual or a group in efforts towards goal achievement in a given situation”.
Importance of leadership:
 Initiates action- Leader is a person who starts the work by communicating the policies and plans to
the subordinates from where the work actually starts.
 Motivation- He motivates the employees with economic and non-economic rewards and thereby gets
the work from the subordinates.
 Providing guidance- Guidance here means instructing the subordinates the way they have to perform
their work effectively and efficiently.
 Creating confidence- Confidence is an important factor which can be achieved through expressing
the work efforts to the subordinates,
 Building morale- Morale denotes willing co-operation of the employees towards their work and
getting them into confidence and winning their trust.
 Builds work environment- An efficient work environment helps in sound and stable growth. He
should treat employees on humanitarian terms.
 Co-ordination- The synchronization can be achieved through proper and effective co-ordination
which should be primary motive of a leader.
4.8.2 LEADERSHIP QUALITIES
Q16. What are the essential qualities of a good leader? [May 2016]
 Leadership qualities is a common perception that leaders are born, not made.
 A person’s authoritativeness, confidence in speech and action, ability to handle crisis without panic
are considered some of the most effective leadership qualities, which sets people apart from the
crowd.
i. Honesty
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 The sign of a good leader is honesty towards his her work and employees. You should be very honest
to your own self as well.
 Never lose your integrity, whatever be the circumstances, because a leader will not be considered
reliable and worth following if he/she loosed honesty.
ii. Confidence
 Confidence in every word you say, in everything you do.
 Have the confidence to manage people and show them the right path, whenever they seek your
guidance.
 People who see panic or uncertainty in the eyes of their leader won’t consider him/her worth in the
time of crisis.
iii. Patience
 If you want to be known as a good leader, it is very important to be patient. Be cool, calm.
 Do not panic or lose your temper.
 A good leader considers crisis, emotions and tricky situations a part of his journey and never loses his
composure.
iv. Focus
 To become a good leader, you should always remain dedicated to the goal, without wasting time in
checking for the possibility of hindrances that might creep in.
 If you find any obstacles in this process, consider it as you moral responsibility to solve them and find
better ways to make progress towards the target.
v. Dedication
 People will respond more openly to a leader who is dedicated towards his/her work and constantly
works for the betterment of the employees as well as the organization.
 You should prove yourself as a source of inspiration for the people around you.
vi. Consistency
 Consistency is an important leadership quality.
 Maintain your own way of approach and do not change it radically.
vii. Motivate Others
 Always encourage your juniors and congratulate them for all their achievements, whether small or
big.
 This will create a healthy environment in your workplace, which will in turn motivate your
employees to give their best performance.
viii. Effective Communication
 A leader should be able to reach the people around him/her effectively.
 Good communication skills are key to become a good leader.
 If you possess all the above qualities, but the very important communication skill is lacking in you,
you can never become a good leader.
4.8.3 LEADERSHIP STYLES
Q17. Explain the various types of Leadership with its different styles. [DEC 2016, Dec 2018]
(or) Discuss about the different types of Leadership styles. [MAY 08, 09, 10,11,12,14,DEC
2009, 12]

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  Leadership styles refer to a leader’s behaviour. It is the result of the philosophy, personality and
experience of the leader.
 Kurt Lewin and colleagues identified different styles of leadership as
 Dictator
 Autocratic
 Participative
 Laissez Faire
a. Dictator Leadership:
 A leader who uses fear and threats to get the jobs done. As similar with a leader who uses an
autocratic style of leadership, this style of leader also makes all the decisions.
b. Autocratic leadership:
 A leader believes in centralization of power. He is also known as authoritarian or Dictator.
Autocratic leader

Follower Follower Follower

 There are three types of autocratic leaders.
i. Strict autocrat: The leader follows autocratic styles in a strict sense. He follows negative motivation
for getting work from subordinates.
ii. Benevolent Autocrat: The leader also takes decisions himself but his motivation styles is positive,
iii. Incompetent Autocrat: Sometimes, leader adopts autocratic leadership style just to hide their
inabilities i.e, incompetence, but this cannot be used for a long time.
Characteristics:
 Full authority
 Decision taken without consulting the subordinates
 Subordinates should follow the direction without any question
 Uses threats and punishment to extract work
 Centralization of power
Advantages
 Quick decision making
 Suitable at lower levels
Limitations:
 Dissatisfaction among employees
 One way communication without feed back
 Employee morale will be very low
 Suitable in the short run
 Absenteeism and employee turnover will be more
 One way communication without feed back
 Absence of leader affects the output
c. Participative or democratic leadership:
 Leader believes in decentralisation of power.

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  This type of leader asks suggestion; ideas from sub-ordinates.
 Subordinates feedback are consulted before decision making.
Advantages:
 Leads to good human relation.
 Motivated by participating in decision making.
 Absenteeism and employee turnover will be less.
Limitations:
 Time consuming indecision making.
 Not suitable at lower levels.
 Controlling is difficult.
Democratic leader

Follower Follower Follower

d. Laissez faire or Free Rein:

 The leader has no authority and responsibility under this style.
 Authority is completely decentralized.
 Complete freedom given to the subordinates
 The sub ordinates themselves take decisions for which they get authority.
Free rein leader

Follower Follower Follower

Advantages:
 Positive effect on job satisfaction
 Builds morale of subordinates.
 It creates an environment of freedom, of individuals as well as the team-point.
 Full utilization of the potential of subordinates.
Limitations:
 Lack of discipline
 Lowest productivity
 No control and co-ordination.
 Some members may put their own interests above the group and team interests.
e. Paternalistic:
 Leader plays a father like role towards the followers and takes care of their problem.
 The way a father does for his family and his subordinates will be his daughter or son. This type of
leader will give complete freedom to sub-ordinates.
Advantages:
 Subordinates are loyal to the organization and leader.
 Good human relations (because of family environment).
 Fear and love are combined. Hence best performance.

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Limitations:
 Unsuitable when there is lack of mutual trust between leader and followers.
 More involved in family problems than organisational issues.
Conclusion:
 No particular leadership style is adopted in all managerial situations.
 Changing with situational factors.
 Based on demand, a leader must adopt a mixture of all styles at the same time.
4.8.4 LEADERSHIP THEORIES
Q18. Explain in detail about theories of motivation.
The theories are classified into
o Charismatic leadership theory or Great man theory
o Trait theory
o Behavioural theory
-Michighan studies
-Ohio state university
-Managerial grid
o Contingency theory
Fiedler’s model
House‘s path goal model
i. Charismatic leadership theory:
 This theory also called great man theory. This suggests “Leaders are born and is not made”
 Charisma is a greek word meaning “Gift”
 Leadership quality carried out through genes
 These leaders has extremely high-level of self-confidence, dominance,
 E.g. Mahatma Gandhi, Nelson Mandela, Lenin, Winston Churchill , Dhirubhai Ambani who created
histories (God gifted qualities)
ii. Trait Theory:
 Trait means quality in Person.
 It describe leadership in terms of what they are
 These approaches are not completely inborn, but one can acquire through learning and experience.
 This theory suggest” what makes a successful leader” from the leader’s own characteristics.
iii. Behavioural Theory:
 This theory describes leadership in terms of what to do
 This emphasis strong leadership is a result of effective role of behaviour.
 Effectiveness of a leader is judged in terms of sub ordinate outcome
a. Michighan studies
Researchers identified two leadership styles
 Employee centered: A supervisor is considered as employee centered if the employees are
allowed to handle most of the problems with little assistance

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  Production centered: Concerned more for the task than the people performing the task.
Considered employee as instruments for getting work rather than the needs and emotions
Conclusion:
 Employee centered style of leadership increases productivity
 Production centered will frustrate the employees and creates unsatisfactory job performance
b. Ohio state university studies
Researchers identified two leadership behaviours
 Concentration: mutual trust between leaders and the group
 Initiating structure: creating a work environment. Work is created and organised in such a way
what they know exactly, what and how is to be done. They found two behaviours are independent
c. Managerial grid
 A well known approach to define leadership style is managerial grid developed by Robert Blake
and Mounton.
 The grid has two dimensions, concern for people and concern for production.
1,9 9,9

5,5

1,1 9,1
Concern for production
i. 1,1 management (Impoverish management) :
 Manager concerns themselves very little with either people or production and have minimum
involvement in their jobs.
 It indicates
 Managers take minimum efforts to get work done
 Minimum standard of performance
 Minimum worker dedication
ii. 9,9 management:
 They are the Team managers.
 The highest possible dedication both to people and production.
 It indicates
 Dedicated people
 High Managerial efficiency
 Highly organised task performance
iii. 1,9 management (country club management):
 Managers have little or no concern for production but are concerned only for people.
iv. 9,1 management (Autocratic management):
 Managers have little or no concern for people but are concerned only for production.
 It indicates

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  Excellent work design
 Minimum worker interference
 Efficient operation
 5, 5 management:
 Managers have medium concern for both people and production.
 Satisfactory performance is achieved by equating the necessity for performance and reasonable
morale.
 The grid is useful in identifying and classifying the managerial styles but it does not tell why a manager
falls in part or other part of the grid
Conclusion: Leader styles
 Task Manager Eg Defence , Concerned only on task
 Team Builders – high concern for production as well as people
 Impoverished Style – Unfit for Leadership qualities, less concern for people as well as production
 Country club Manager Eg – Trade union, high concern for people than production.
iv. Situational or Contingency Approaches to Leadership
 Some traits and behaviours are effective in a particular situation and ineffective in another
situation.
 According to situation theory, no leadership style is the best for all times and all situations.
 Situation helps the persons to develop their leadership qualities and emerge as leaders.
 The leader should adjust his style to the nature of the task, the type of followers and the environment
to improve his leadership effectiveness.
a. Fielder's contingency approach:
 According to this theory, leader effectiveness depends upon three major situational variables. They
are (a) Leader-member relations, (b) The task structure and (c) The leader's position power.
(a) Leader-member relations
 It examines the degree of trust that the group members place in the leader.
 It indicates the degree to which group members willing to accept the leader's behaviour.
 A leader can be more effective if he is trusted by the followers who are willing to accept his influences.
(b) Task structure
 It is focused upon the number of steps needed to complete the task.
 It measures the extent to which the task performed by followers is routine or nonroutine.
 If the task is clearly defined and routine, group members can be more easily held responsible for
performance.
Leader-member relations Good Poor
Task structure High Low high Low
Leader’s position power S W S W S W S W
I II III IV V VI VII VIII
Very favourable Very unfavourable

Fielder’s classification of leadership

S refers to strong and W refers to weak.

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(c) Leader's position power
 It is determined by the degree to which a leader derives power from the position held by him in the
organization.
 It enables him to influence the behaviour of others.
 A leader with considerable position power can more easily obtain a better following.
 Fiedler developed eight possible combinations ranging from highly favourable to unfavourable
situations

Conclusion:
 A favourable situation - the first cell with high task structure, Good leader member relations and
strong leader’s position power.
 An unfavourable situation – The last cell with Loco task structure,, poor leader – member relations
and weak leader’s position power.
b. House’s path goal approach
 The term path goal is employed because the leader sets up clear paths and clear guidance
 It is a combination of situational leadership and Vroom’s expectancy theory.
Leader Appropriate Leader connects Leader provides
identifies goals are rewards with assistance to
subordinates established goals employee path
towards goals

Effective Effective Employee becomes

achievement of performance satisfied & accepts
goals the leaders goads

Two groups of situational variables are considered

i. Characteristics of subordinates – Needs, self confidences and abilities
ii. Work environment – Nature of task, rewards systems, formal authority system
There are 4 leadership behaviour that supports this approach depending on situation
Supportive leadership: This type of leadership is friendly and approachable and has positive
effect on the followers.
Participative leadership: This type of leadership makes the decision with active participation of

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 the followers.
Instrumental leadership: Leader focuses on planning, organizing and co-coordinating the
activities of subordinates. He defines the standard of performance and makes it clear what is
expected from subordinates.
Achievement – Oriented leadership: leader sets challenging goals for the followers and seeks
improvement of performance of the subordinates.
Conclusion:
 Leadership behavior is acceptable and satisfying for the subordinates.
 Leadership behavior is also motivational.
c. Likerts Management Model – Situational theory
 System 1- Exploitive Autocratic Leader (oriented towards task alone)
 System 2 - Benevolent Autocratic Leader (task oriented but has the quality of opposing if things are
good)
 System 3 - Participative Leader (concerns the employees for a particular kind of work, though he
concern decisions will be taken only by him.
 System 4 - Democratic leader.
Ratings of the Leaders by their employees is done at different situations
Confidence / Trust in Employees.
Subordinates feeling of freedom.
Managers seeking involvement with Subordinates.
4.9 COMMUNICATION:
Q19. Discuss about the role and process of Communication in management. [DEC 2010, 2007]
 Communication is a process of transferring information from one entity to another.
 Communication is commonly defined as "the imparting or interchange of thoughts, opinions, or
information by speech, writing, or signs".
 Human beings interact with each through communication.
 It is the process of passing information from one person to another.
4.9.1 THE COMMUNICATION PROCESS:
Q20. Explain the process of communication. [Dec 2011]
 Communication is important in building and sustaining human relationships at work.
 Communication can be thought of as a process or flow.
 Before communication can take place, a purpose, expressed as a message to be conveyed is needed.
 It passes between the sender and the receiver.
 The result is transference of meaning from one person to another.
 The communication process model is made up of seven parts:
(a) Source, (b) Encoding, (c) Message, (d) Channel, (e) Decoding, (f) Receiver, and (g) Feedback.
Elements of communication
 Sender – Initiator of communication process. The sender has some information which he wants to
communicate to some other person to achieve some purpose.

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 Message – The Subject matter of Communication. The message has two primary components:-
o The Content: The thought or conceptual component of the message is contained in the words,
ideas, symbols and concepts chosen to relay the message.
o The Affect: The feeling or emotional component of the message is contained in the intensity,
force, (conduct or behaviour), and sometimes the gestures of the communicator.
 Encoding – act of translating he message into words, pictures, symbols
 Channel – Media used (formal or informal). By which the message is transmitted to the receiver
(Visual, auditory, written or some combination of these three) is called the channel.
o The channel is the medium through which the message travels.
 Receiver – Person who receives the message and understand
 Decoding – Act of converting symbols, signs or pictures into meaningful message
 Noise- Affects the communication in any stage- transmitter, receiver, channel. If anyone is affected
proper communication will not reach the receiver.
 Feedback – The final link in the communication process is a feedback loop. It is the response,
reaction or reply to the sender by the receiver. When the sender receives the feedback
communication process is complete.
Sound Communication provides the following advantages
 Improves Managerial Performance
 Facilitates Leadership
 Increases job Satisfaction
 Reduces time and efforts
 Enhances coordination
Nature of communication
 Ongoing process
 Two way process
 Pervasive function
 Message should contain substance
Purpose
 Communication is necessary to integrate all the managerial functions internally Planning,
Organising, Staffing, Leading, Controlling.

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4.9.2 CHANNELS OF COMMUNICATION
Q21. Explain different types of communication. [May 2014, Dec 2011] (or)Explain the types of
formal communication. [May 2015]
i) Flow of communication
1. Formal Communication – follows the route formally laid down in the organization structure
a. Downward Communication – flow of communication from superior to subordinate
b. Upward Communication - flow of communication from subordinate to superior
c. Horizontal Communication – transmission of information among the positions at the same
level of the Organization.
2. Informal Communication or Grapevine – Communication among people through informal
contacts or relations.
a. Downward Communication
Top

Manager Manager Manager

S1 S2 S3 S1 S2 S3 S1 S2 S3
S  Subordinates
 Sometimes, information may lose as it comes down the chain of command & it consumes move time.
 So, feedback system is necessary for this type of communication.
 This communicating system is only applicable for autocratic type of arrangement
b. Upward Communications
Upward communication flows from subordinates to superior as per organizational hierarchy.

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Manager Manager Manager

S1 S2 S3 S1 S2 S3 S1 S2 S3
S  Subordinates
 There is a chance of passing irrelevant information to the boss.
 The information may be modified or filtered

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  This type of communication is mainly applicable to democratic organisation.
c. Horizontal or Lateral Communications
Communication between the peers or employees of same level.

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Manage Manage Manager

r r
 Information is passed between the same levels of organisation
 It helps to better understanding of information and to coordinate towards the management goals.
4.9.3 MEDIA OR METHODS OF COMMUNICATION
Q22. What are the different methods of communication? Explain.
1. Oral Communication
2. Written Communication
3. Non verbal or Gestural Communication
a. Oral communication
 Oral Communication involves exchange of messages through spoken words.
 It may take place. i) by face- to face contacts ii) through mechanical devices like telephone.
Merits
Oral or Verbal communication offers the following advantages:
 Economical
 Personal touch
 Speed
 Flexibility
 Quick response
Demerits
Oral Communication suffers from the following weaknesses-
 Lack of record
 Time Consuming
 Lengthy message
 Physical distance
 Misunderstanding
2. Written communication
 Written Communication is transmitted through written words in the form of letter, circular, memos,
bulletins, instruction cards, manuals, handbooks, reports, returns,
Merits
 Effectiveness
 Lengthy messages
 Economical
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  Repetition
 Permanent record
 Better response
Demerits
 Time Consuming
 Expensive
 Inflexibility
 Little secrecy
 Lack of personal touch
 Misunderstanding
Distinguish between Downward and Upward Communication
Down ward Upward
From higher to lower levels From lower to higher levels
Flow is downward Flow is upward
Directive in nature Non-directive
Purpose is to get plans implemented Purpose is to provide feedback on results
Travels fast Travels slowly
Orders, instructions, lectures, manuals, Reports, suggestions, grievances, protests,
handbooks, etc are the main examples surveys are the main examples.
Distinction between Formal and Informal Communication
Formal Communication Informal Communication
Official Channel Unofficial Channel
Deliberately Planned and Systematic Unplanned and Spontaneous
Part of Organization Structure Cuts across formal relationships
Oriented towards goals and task of the Directed towards goals and need
enterprises satisfaction of individuals
Impersonal Personal and social
Stable and rigid Flexible and instable
Slow and Structured Fast and Unstructured
Grapevine Merits and Demerits
Merits Demerits
Useful for developing group cohesiveness Based on rumours
Serves as an emotional safety value Misleads People
Effective source of knowledge feelings and May breed against particular executives
attitudes of Employees
Supplements the channels of official May lead to more talk and less work
communication
Tells management when to be firm and May distort official channels of
when to yield communication

4.9.4 COMMUNICATION NETWORKS

Q23. Explain the different types of communication network.
A network is a structure of organization made up of lines or channels interconnected

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 1. Chain Network
2. Wheel Network
3. Circle Network
4. Free flow or All Channel Network
Simple chain:
 Communication flows downward or upward through successive levels
 Control is easier
 Time consuming
Wheel:
 Subordinates are not linked directly
 Subordinates can communicate with only a central supervisor
 Coordination is difficult
Circle:
 Communication moves in a circle
 Each person can communicate with the 2 nearest neighbours only
 Communication is slow

Free flow:
 Everyone is allowed to talk freely with others
 Communication is fast but coordination is difficult
 Delay in decision making

4.10 BARRIERS IN COMMUNICATION

Q24. Identify barriers to effective interpersonal communication and how to overcome them.
[MAY 2018] (or) What are the Barriers to Effective Communication? How will you overcome

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 them [DEC 2017, May 2011, Dec 2011, May 2014 May 2012] (or) Explain the different Barriers
of communication. What steps can be taken to overcome such barriers? [May 2012, Dec 2014]
(or) Identify the barriers in communication and explain how to overcome them. [May 2017]
(or) Explain the different barriers and breakdowns of communication process. [DEC 2016]
[May 2019]

Hurdles in effective communication (or) Barriers of communication

Communication:
 It is the process of passing of information from one person to another person.
 It should always be clear and understood by the person who receives information.
 Some problems may arise in its encoding and decoding or communication channel.
4.10.1 Barriers of communication
i) Physical barriers
 Already present in the environment
 some are controllable by the management and some are not
 The barriers are environment factors that reduce the sending and receiving of communication.
 It includes physical distance, distracting noises and other interferences.
a. Noise
 Noise acts as a barrier when we are communicating in a factory premises
 The noise made by the machines acts as a barrier
b. Defects in the medium
 When two persons are communicating via a telephone line and there is disturbance in the line.
 The receiver could not be able to get the proper message of the sender ,it acts as the barrier
c. Time and distance
 When two persons want to communicate and if the receiver do not have time to listen then it acts
as a barrier
 Too much of distance between the persons also act as a barrier
ii) Semantic Barrier
 It refers to the relationship of signs, symbols, actions etc.,
 This will reach person’s brain through any of the senses such as feeling or hearing.
 The various semantic barriers are:
a. Language:
 Understanding of language is difficulty among many of them.
 Lack of common language
 For e.g a Telugu speaking employee and English speaking manager
 When two people communicating each other do not know a single common language, the message
will not be passed properly
 Poor vocabulary
 Poor knowledge of grammar and punctuation

b. Picture:
 It is used as visual aids in communication. Eg., Charts, map

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c. Gestures and Action:
 Action is also known as non-verbal communication.
 It speaks louder than words.
 The people do not listen to what he/she does.
iii) Socio psychological barrier or personal barrier
 They are the attitude, emotions, sentiments and moods of the people
a. Emotions:
 Emotions play an important role, how we perceive the message.
 For example the same message will be interpreted in a different manner when we are angry or
when we are calm mood as we see in day to day life.
b. Lack of self confidence:
 When there is distrust between sender and receiver of communication the sender lacks confidence
in delivering a message.
c. Bad listening:
 If the person cannot listen properly to the feedback given by the receiver due to negativity going
on mind we will not be able to communicate
d. Selective perception:
 We all perceive only that of which our interest is.
 For example depending on our past experience or background we will interpret only the part of
the message which is of our interest
e. Laziness:
 In an organization sometimes a manager feels that message have been already passed or spread.
 In that case they do not take action to formally pass the message
iv) Mechanical Barrier:
 It includes inadequate arrangement for transmission of news, facts and figures, poor layout, and
defective procedure.
v) Organizational Barrier:
 Information flows based on downward communication through hierarchical structure in
organization.
 So, there may be chances of information being filtered.
 Poor supervision also serves as communication barrier.
a. Status relationship:
 The person at a status have the power is not able to communicate properly with subordinates.
 The subordinates feel scared to respond to superior.
b. Lengthy process:
 In an organization, there is a hierarchy of communication flow.
 If hierarchy is too lengthy it takes long time to reach from top to bottom
4.10.2 Effective communication
 If the message sent by the sender to the receiver is understood by the receiver in the same sense is
called as effective communication.
Making communication effective
 Sound Organization Structure

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  Clear messages
 Two-way Communication
 Multiple Channels
 Good Listening
 Effective Control
 Modern Instrument
 Human Relations attitude
Essentials of good communication system
 Clarity of messages
 Completeness of message
 Consistency of message
 proper timing
 Follow-up
 Economy
4.11 COMMUNICATION AND IT
Q25. Write short notes on Technological Advances in Communication. (or)Describe how the
communication through electronic media is helpful for effective business. [May 2016]
Technological Advances in Communication
 Various electronic devices slowly improve communication. This electronic equipment includes
mainframe computers, mini-computers, personal computers, electronic mail systems and electronic
type writers, cellular phones.
 Tele communication is an emerging technique. Most of the company has implemented this technique.
Example:
1. A Large bank supplies hardware and software to its customers.
2. Several banks now make bank-by-phone services available even to individuals.
3. E-mail service making easy delivery of documents.
4. Computerized airline reservation system facilitates making travel arrangement.

The use of computers for information handling:

 Electronic data processing system handles large amount of data.
 The stored data can be retrieved whenever it is required without any distortion.
 Computer graphics can inform visually, displaying important company information.
 Computer printouts and coloured map are quickly displayed when compared to other
communication media.
Electronic media in communication
a. Fax
 Facsimile system enables transmission of letters, diagrams, documents etc.
 Fax machines are electronically operated and interconnected with telephone system.
Advantages
 Secrecy in communication.
 Subject matter transmitted in its original form.
 24 hours services.
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b. Intranets
 A company-wide system of computer networks for information sharing by employees inside the
firm.
Advantages of intranets
 Can be used for a number of different purposes by people who may have little expertise in computer
software and programming
c. Groupware
 Computer software that enables members of groups and teams to share information with each other
and improve communication.
d. Internet
 Global system of computer networks that is easy to join and is used by employees to communicate
inside and outside their companies.
 World’s largest network scattered all over the world.
 It can connect millions of users.
e. World Wide Web (WWW)
 Websites are used for providing general information about products and services of organization in
much detail and at any time and at customers’ convenience.
f. Electronic mail systems (Email)
 An electronic message sent from one computer to another.
 Sender writes the message in the screen and transmits in electronic form.
 For quick and economic transmission both within and outside the country.
 Email passes through several sites on the internet.
 The message remains in the destination till the receiver has read or saved or delete it.
Advantages
 Fast means of communication.
 It is easy to use.
 Inexpensive.
g. Teleconferencing
 A group of people interacting with each other by means of audio, video media with moving or still
pictures.
Advantages
 Saving in travel expenses and time.
 Conferences can be held wherever necessary.
h. Video conferencing
 A technology that allows users in different locations to hold face to face meetings without moving to
a single location for a group or organizational meeting.
 It is used to hold routine meetings, business deals and interviewing job candidates.
 The users can see each other.
i. Android phone systems
 Whats app
 Skype
CONTENT BEYOND THE SYLLABUS
4.11 Creativity and Innovation:
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 Q26. Explain briefly about various types of creativity tools.
 Creativity is creation of new ideas and Innovation is implementation of the new ideas. There cannot
be innovation without creativity. There can be creativity without innovation but it has no value.
4.11.1 Definition:
 Creativity refers to the ability to combine ideas in a unique way or to make unusual association
between ideas.
 Innovation means outcome of the creative process needs to be turned into useful products.
4.11.2 CREATIVITY TOOLS:
The Various types of creativity tools are
 SCAMPER
 Vertical and Lateral thinking
 Reframing Matrix
 Brain Storming
 Mind Mapping
 DOIT Process

a. SCAMPER TOOL:
 SCAMPER is a checklist that helps us to think of changes. We can make to an existing product to
create a new one.
 These changes can be used either as direct suggestions or as starting points for lateral thinking.
 SCAMPER refers to
S-Substitute  Components, Materials, People
C-Combine  Mix, Combine with others assembles or services, integrate
A-Adapt  alter, change function.
M-Modify  Increase or reduce in scale, Change shape, Modify attributes
P-Put  to another use
E-Eliminate  Remove elements, Simplify, Reduce to core functionality
R-Reverse  Turn inside out or upside down, also use of reversal
b. Vertical and Lateral Thinking:
 Vertical Thinking: one starts with some known condition and then applies steps of reasoning aimed
at reaching goal.
 Lateral Thinking: Lateral Thinking is the opposite of vertical thinking.

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 o Lateral thinkers make jumps to new ideas and views; they are creative and imagination, often
supplies ideas that vertical thinking alone could not provide.
c. Reframing Matrix:
 Reframing matrix is a simple technique that helps to look at business problems form a number of
different viewpoints.
 It expands the ranges of creative solutions that you can generate.
 The approach relies on the facts that different people with different experience approach problems
in different problems.
d. Brainstorming:
 Brainstorming is an excellent way of developing much creative solution to a problem.
 It works by focusing on a problem, and then coming up with many radical solutions to it
 Suggestions are listed without any criticism on a black board or news print as they are offered. One
visible ideas leads to others.
 At the end of the session participants are asked how the ideas could be combined or improved.
e. Mind Mapping:
 This tool is similar to concept fan except looking one step back from main topic
 A Mind map consists of a central word or concept with 5 to 10 main ideas that relate to that word,
similar to creating a spider-web.
f. DO-IT Process:
 DO-IT is a process for creativity
 Techniques explained focus on specific aspects of creative thinking.
 DO IT bundles them together introduce formal methods of problem definition and evaluation.
 These help you to get the best out of the creativity techniques.
 DO IT is an acronym that stand for:
D- Define Problem
O- Open mind and apply creative techniques
I- -Identify best solution
T- Transform

Case Study:
1. XYZ industries is a manufacturing company with line and staff organization. Pandian, a young
staff officer developed a plan of increasing the life of certain equipment’s in the plant. He took the
plan directly to the foreman of the department but was rebuffed by the supervisor who privately
acknowledged the merit of the plan but resented the staff officer trying to show off his talents. The
Staff officer’s Association condemned the behaviour of pandian that he should have allowed the
plan to appear as a contribution of the staff group rather than his own. [Nov / Dec 2018]
a. Analyze the situation in terms of the possible causes of the reaction of the supervisor and staff officer’s
group. (9)
b. Suggest a measure to diffuse the situation. (6)

a. Analyze the situation in terms of the possible causes of the reaction of the supervisor and staff
officer’s group.

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I. Reasons Given by Line Managers/ Supervisor:
 Line managers are responsible for ultimate results or goal achievement and, thus, give the following
reasons for line/staff conflict:
1. Practical approach to the problem:
 Line managers feel that staff suggestions cannot always be implemented as they do not fit in the
actual operating design of the organisation structure. Their suggestions are often away from reality
and practicability.
 However, if the suggestions are accepted and the results are not as desired, the responsibility is
shifted to line managers but if the results are positive, the staff managers claim merit for the same.
Thus, staff managers do not have the responsibility but enjoy authority over the area where advice is
sought. There is apparent mismatch between the authority and responsibility.
2. Encroachment upon line authority:
 Line managers often complain that staff managers do not confine to offering suggestions only, they
also try to en-roach upon line authority by telling them what to do and what not to do. They impose
their ideas on line managers.
 Staff managers offer suggestions even on matters which fall within the jurisdiction of line managers
and on which no suggestions have been asked for. Line managers feel they spend so much time
discussing these issues with staff managers that they cut time from operating their line departments.
3. Lack of overall vision of the organizational problems:
 Staff managers are often convicted of the fact that they lack insight into the actual problems of the
organisation. They have knowledge in their specialised area of interest which may not be of help to
line managers in relation to goals of the organisation.
 Staff managers are not aware of the practical problems regarding implementation of their
suggestions. Though their recommendation may be good, but they may not be feasible and practical.
4. Age considerations:
 By the time line managers reach the top positions, they are experienced to look into organisational
matters. Staff, on the other hand is usually dynamic, young, probably fresh MBA graduates who are
enthusiastic in their approach towards the organisational operations. Line managers blame the staff
as lacking practical experience while staff blames line for not trying the ideas proposed by them.

II. Reasons of Conflict Given by Staff Managers:

 Staff managers view the problem in a different perspective and offer the following arguments that
result into line-staff conflict:
1. Absence of motivation:
 Staff managers plea that suggestions offered by them are not implemented by line managers and,
therefore, they lack motivation to give suggestions. In most cases, line managers may ask for
suggestions but they have the right to accept, reject or amend the suggestions.
 This gives them prerogative over staff managers and they do not give due regard to staff suggestions.
Sometimes, they do not even ask for suggestions but when something goes wrong, they lay the blame
on staff managers for either being complacent in the matter concerned or giving impractical
suggestions.
2. Resistance to change:

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 Irrespective of the age considerations, staff managers feel their ideas are innovative and require new
learning of concepts and processes by line managers. Since line managers do not easily accept change
in their thinking and operating procedures, they do not welcome the ideas given by the staff.
3. Lack of authority:
 Staff managers feel that they should have authority to get their ideas implemented. If they are asked
for expert advice, they should even have the authority to get their advice accepted. Line managers
take the credit for implementation if the staff advice bears fruitful results. There is no motivation to
give suggestions if they have no authority over their acceptance/implementation by line managers.
4. Call for help:
 Staff managers sometimes complain that line managers approach them with the problem after the
situation becomes difficult to manage. Suggestions or advise in such a situation may not be effective.
Staff should be consulted time to time, in fact, during the planning phase of the organisational task
and not when problems arise in carrying out the task.
5. Staff advise is sought for as a last resort:
 Staff specialists often blame line managers for not seeking the advise on a continuous basis. They feel
that line managers ask for their advise only as a ‘last resort’, when no other way of solving the
organisational problems seems practical to them.

B. Suggest a measure to diffuse the situation.

 For an organisation to operate and progress, it is essential that line and staff work harmoniously. In
order to achieve cordial relations between line and staff people, the following steps ‘should be taken’:
 The limits of line and staff authority should be laid down clearly. It must be clearly understood that
ultimately the departments are responsible for operating decisions and that staff is responsible
only for providing advice and service to appropriate line departments.
 A line department must give serious consideration to advice given by the staff. In case the line
manager disagrees with the suggestions of the staff man, both of them should have the right to
appeal to higher authorities.
 The staff manager must operate within the policies and objectives of the company and recognise
the fact that all new ideas are bound to be resisted in the initial stages. People tend to resist ideas
that threaten change to their way of doing things. The fact that a change is even suggested seems to
imply that what they were doing was not good enough. Therefore, any change proposed by the
staff men must be carefully brought in.
 The staff men must also recognise the difficulties in the way of implementing ideas,
 Line and staff people should try to understand the orientation of each other. They should try to
achieve cooperation for the achievement of enterprise objectives.

UNIT IV – DIRECTING

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 TWO MARKS
1. What is meant by the term directing?
 Directing may be defined as the process of instructing, guiding and inspiring human factors in the
organization to achieve organization objectives.
2. Define Directing.
 According to Koontz and O’Donnell, Directing is a complex function that includes all those activities
which are designed to encourage subordinates to work effectively and efficiently in the both short
and long run.
3. State important characteristics of directing.
 Directing is an important managerial function through which the management initiates actions to the
organization.
 It is performed at all level of management.
 Every manager performs both as superior and a subordinate.
 It is a continuous process.
 It has dual objectives.
4. List out the Scope (or) Significance of Directing
The scope of directing is as follows
• Initiates action
• Ensures coordination
• Improves efficiency
• Facilitates change
• Assists stability and growth
5. Mention the techniques of directing.
 Delegation
 Supervision
 Orders and instructions
 Motivation
 Leadership
 Communication
6. Mention any three scope of directing in the organization.
 Directing integrates the employee’s individual efforts to make it effective to achieve organization
objectives.
 Without having proper motivation, leadership and communication, individual’s capability and
potential may not be fully utilized.
 These motivation, leadership and communication are the elements of directing. Therefore, directing
provides the way to utilize the capability of the individual and attempts to get maximum out of them.
7. Mention the elements of directing. [May 2012]
The elements of directing are
 Motivation
 Leadership

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  Communication
8. List down the human factors in managing.
 Multiplicity of roles
 Individuality
 Personal dignity.
9. Define Organizational Behavior.
 Organizational behavior can be defined as “The Study of Human behavior in organizational settings,
the interface between human behavior and the organizational context and the organization itself.
10. What are the factors influencing individual behaviour?
 Ability
 Perception
 Personality
 Motivation
 Organizational Behavior and resources.
11. Write short notes about group formation and development.
 Groups can form when individuals with similar goals and motives come together.
 Groups are formed voluntarily.
 The individuals of a group can join and leave the group any time.
 The motives for which the individuals join the group are as follows:
 Organizational Motives to join groups.
 Personal motives to join groups.
12. Mention the characteristics of mature groups.
 Role Structures
 Behavioral Norms
 Cohesiveness
 Informal leadership
13. Define creativity.
 Creativity is defined as the ability to produce new and useful ideas though the combination of known
principles and component is novel and non obvious ways.
 Creativity exists throughout the population, largely independent of age, sex, and education.
14. What are the steps involved in creative process?
 Saturation
 Preparation
 Frustration and incubation
 Inspiration or illumination
 Verification
15. Distinguish between Creativity and innovation. [May 2007, May 2014]
 Creativity refers to the ability and power to develop new ideas in an unique way.
 Innovation means outcome of the creative process that needs to be turned into useful products.
16. Differentiate innovation and invention.
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  Innovation means the use of creative ideas.
 Invention means really finding new things which are not already available.
17. How are problems solved by creative tool?
 Creativity tools are designed to help you devise, creative and imaginative solutions to problems.
 It helps you to spot opportunities that you might otherwise miss.
18. What is SCAMPER tool?
 SCAMPER is a checklist that helps us to think of changes.
19. What does SCAMPER stand for?
 S – Substitute – components, materials people.
 C – Combine – mix, combine with other assembles or services, integrate.
 A – Adapt – alter, change function, use pat of another element.
 M – Modify – increase or reduce in scale, change shape, modify attributes (e.g. Colour)
 P – Put to another use.
 E – Eliminate – remove elements, simplify, reduce to core functionality.
 R – Reverse – turn inside out or upside down, also use of Reversal.
20. State the function of mind mapping tool.
 This tool is similar to concept fan except looking one step back from main topic.
 A mind map consists of a central word or concept with 5 to 10 main ideas that relate to that word,
similar to creating a spider – web.
21. Mention the use of DO IT process for creativity.
DO IT is a process for creativity.
DO IT is an acronym that stats for:
D – Define problem
O – Open mind and apply creative techniques
I – Identify best solution
T – Transform
22. At what situations innovation arises?
 The unexpected event, failure or success.
 The process or task that needed improvement.
 Change in the market or industry improvement.
 Change in the market or industry structure.
 Change in human populations
 Innovation based on knowledge.
23. How can harmonize objectives be achieved?
(i) Mutual trust
(ii) Cooperation and understanding
(iii) Worker’s participation in management, and
(iv) Balancing the objectives of the organization with those of individuals.

24. Define “multiplicity of roles”.

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  Individuals are not only the productive factor in management’s plans. They are members of social
system of many organizations.
 For example they are the members of families, schools political parties.
25. What is meant by Brain Storming? [Nov’04, MAY 2018]
 Brainstorming is an excellent way of developing many creative solutions to a problem.
 It works by focusing on a problem, and them coming up with very many radical solutions to it.
26. Define motivation. [Nov’05,’12, May ’09, 2014, Nov 2005, Dec 2007, May 2009, May 2011, May
2014 , May 2019]
 According to Koontz and O’Donnell, “Motivation is a general term applying to the entire class of
drives, desires, needs wishes and similar forces that induce an individual or a group of people to
work”.
 Scott defines, “Motivation means a process of stimulating people in action to accomplish desired
goals”.
27. Mention the nature of motivation. (or) What are the characteristics of motivation?
The characteristics of motivation are
 Motivation is an unending process because human needs are unlimited.
 It deals with psychology. An efficient worker will not do the work well unless he is properly
motivated.
 It directs human behaviour towards certain goals.
 Motivation can be either positive or negative.
 Positive motivation implies use of incentives, rewards etc. to satisfy human needs
 Negative motivation emphasis penalties, threatening etc.
28. Find out the difference between motivation and job satisfaction. (or) Distinguish between
motivation and satisfaction. [Apr’05, May’10, DEC 2016]
Motivation:
 Motivation means a process of stimulating people in action to accomplish desired goals.
 Motivation refers to the drive and effort to satisfy a want or goal.
 Motivation implies a drive toward an outcome.
Satisfaction:
 After attaining the goals, everyone involved in the same gets happiness or internal feelings.
 Motivation is before attaining the specific task but satisfaction means, the happiness comes after
attaining the goals.
 Satisfaction is the outcome already experienced.
29. Mention the importance of motivation.
 It creates willingness to do the work in a better way.
 Improves the efficiency of operation.
 It leads to job satisfaction, as a result labour absenteeism and turnover is reduced.
 It helps to solve the labour problems and maintains good labour relations.
 A proper motivation scheme promotes a closer relationship between enterprise and workers.

30. Name the steps involved in motivation process.

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  Analysis of situation.
 Preparing, selecting and applying a set of appropriate motivating tools.
 Follow up
31. What are the types of motivation?
 Positive motivation
 Negative motivation
 Extrinsic motivation
 Intrinsic motivation
32. What is Positive Motivation?
 It is the process of attempting to influence others to do your will through rewards.
 Based on rewards
 Economic benefits –Increment, Bonus, Promotion
 It improves the standard of performance, lead to good team spirit, a sense of co-operation and feeling
of belonging and happiness.
33. What is Negative Motivation?
 This motivation is based on a sort of penalty, punishment, a force of fear or threats.
 The fear of punishment affects the behavioral changes.
 If the worker fails to complete the work they may be threatened with demotion, termination, lay off,
pay off cut etc.
34. What is Extrinsic Motivation?
 Motivation by external factors
 Financial in nature
 Incentives and rewards, health insurance, holidays, retirement benefits, free medical services, vacation
pay.
35. What is Intrinsic Motivation? (or) What is power motive? [Dec’07]
 Intrinsic Motivation is called as power motive.
 It is available at the time of performance of work
 Non Financial
 Provides satisfaction during work
 Praise, recognition, participating in decision making.
36. What are the different motivational theories? [April 2004, Dec 2017]
The different motivational theories are
 Maslow’s Need hierarchy Theory
 McClelland’s Need Theory of Motivation
 Mc-Gregor’s Theory X and Theory Y
 Adam’s equity theory
 Vroom’s Expectancy Theory
 Porter and Lawler Expectancy Theory
 Alderfer’s ERG theory
 Herzberg’s Two factor theory

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  Dual-Model Theory (Mills theory)
37. List the Hierarchy of needs. [Dec’06, May’07] (or) What are the elements in the Maslow’s
hierarchy of needs? [DEC 2016]
 Physiological needs
 Safety needs
 Social needs
 Esteem needs
 Self – actualization needs
38. Give the meaning of social needs. [Dec’07]
 Social needs are for love, friendship, exchange of feelings and grievances, recognition, conversation,
belongingness, companionship etc.
 Social needs tend to be stronger for some people than for others and stronger in certain situations.
39. Write short notes about McClelland’s need theory of motivation.
 David McClelland developed 3 types of basic motivating needs
 He classifies them as need for power, need for affiliation and need for achievement.
40. What are the limitations of McClelland’s Theory?
 The use of projective technique is objectionable.
 The evidence in support this theory is fragmentary and doubtful.
 Achievement motivation cannot be taught. It is because acquisition of motives occurs in childhood
and it is difficult to change them one established.
41. What are the important assumptions made in X theory?
 Average human dislikes to work even if it is possible.
 The average human being prefers to be directed.
 He avoids the responsibility.
 He has no ambition in life.
 He wants only job security.
 He is resistance to change by nature.
42. What are the important assumptions made in Y theory?
 Work is as natural as play or rest.
 The average human being has the tendency to work.
 Man will have self-direction and control.
 People will be committed to the objectives, if they are properly rewarded.
 Workers ready to accept the responsibility.
 High degree of creativity.
43. Compare theory X and Theory Y.
Sl.No Theory X Theory Y
1. The average human dislikes work. Work is as natural as play or rest.
2. People are un ambitious and prefer to Ambitious and capable of directing their
be directed by other. own.
3. They avoid responsibility They accept responsibility under proper
conditions.
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 4. External control, threatening and close Self directed and self are controlled.
supervision and required.
5. People lack self-motivation People are self-motivated.
6. It is pessimistic, static and rigid. It is optimistic, dynamic and flexible.
44. Write short notes about Adam’s equity theory of motivation.
 According to this theory, people will be motivated when they perceive that they are treated
equally.
 Individuals make contributions for which they get rewards
Inputs- past training and experience, special knowledge
Outcomes/ Rewards– Pay, recognition, Status
O/I = Outcomes of a person = Outcomes of another person
inputs by a person inputs by another person
 If individual feels this ratio is equal ,he feels equity and motivated
 If individual feels this ratio is less ,he feels under paid and frustrated
 If individual feels this ratio is more, he feels over paid and guilty.
 In this case he is likely to reduce the inputs to maintain equity.
45. State any two merits of equity theory.
 Equity theory make managers realize that equity motive tends to be one of the most important
motivates of the people in the organization.
 Feelings or perceptions in equity are important factor in work setting. Management should take
necessary steps to develop perceptual skill of the people.
46. Write short notes about Expectancy theory.
 Expectancy theory says that people will be motivated to the extent to which they believe that their
efforts will lead to good performance.
 That good performance will be rewarded, and are offered attractive rewards.
 It had been developed by Victor Vroom.
 It is a theory based on self-interest, wherein each individual seeks to maximize his expected
satisfaction.

Valence
Valence
Expectancy
Expectancy
Instrumentality
Instrumentality
47. What will happen if expectancy goes strong and weak?
 Expectancy refers the relationship between effort and performance.
 When expectancies are strong, employees believe that their hard work and efforts will result in
good performance, so they work harder.
 When expectancies are weak, employees believe that how hard they work, they won't be able to
perform their jobs successfully, so they don't work as hard.
48. What will happen if instrumentality goes strong and weak?
 Instrumentality refers the relationship between performance and rewards.

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  When instrumentality is strong, employees believe that improved performance will lead to better
and more rewards, and they choose to work harder.
 When instrumentality is weak, employees don't believe that better performance will not result in
more or better rewards, so they choose not to work hard.
49. Mention the two types of reward.
 Performance leads to two types of rewards. Intrinsic and Extrinsic.
50. What is meant by intrinsic rewards?
 Intrinsic rewards are given to a person by himself for a good performance.
 Intrinsic rewards are subject to fewer disturbing influences and thus are likely to be more directly
related to the good performance.
51. What is meant by extrinsic rewards?
 Extrinsic rewards, such as pay, promotion, job-security good working condition, status.
 Extrinsic rewards are given by organization and are indirectly related to performance.
52. What is Alderfer’s ERG theory? (or) What are the three needs mentioned by Alderfer’s ERG
theory?
a. Existence: It relates to Safety and basic needs
b. Relatedness: It relates to belongingness
c. Growth: It relates to Esteem and self actualisation.
53. Distinguish motivators and hygiene factors. [Dec’09]
Hygiene factors:
 Maintenance or hygiene factors are necessary to maintain a reasonable level of satisfaction among
employees.
 These factors do not provide satisfaction to the employees but their absence will dissatisfy them.
Therefore, these factors are called dissatisfy.
Motivators:
 Motivational factors create satisfaction to the workers at the time of presence but their absence does
not cause dissatisfaction.
54. List the factors of motivational and Hygiene factors.
Motivational factors
 Achievement
 Recognition
 The work itself
 Responsibility
 Advancement
 Growth
Hygiene factors
 Company Policy
 Supervision
 Relationship with Boss
 Work Conditions

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  Salary
 Relationship with Peers
55. Give short notes about Dual-Model Theory (Mills theory).
 According to Raymond E. Miles, the managerial task is to integrate organizational variable
(goals, technology and structure) with human variables (capabilities, attitudes, values, needs and
demographic characteristic) into an effective and efficient system.
 Miles identified three theories of management known as traditional, human relations and human
resources models.
 The traditional model is similar to Theory X, while the human resources model is closely related to
Theory Y. The human relations model be seen as Theory X with participation.
56. Mention the various factors involved in using motivational techniques.
 Money
 Participation
 Quality of working life.
 Job Security
 Effective Communication
 Power of Authority
 Financial and Non-financial Incentives
 Work challenge
 Responsibility
 Participation
 Recognition and status
57. Why money plays a vital role in motivational technique.
Money
 Money is one of the important motivational factors.
 It may be in the form in wages, incentives, bonuses, company paid insurances, or any other things
that may be given to people for performance.
 Money is likely to be more important to people who are raising a family.
 Some people consider money as a major motivating force while others may not.
 Money not only satisfies physiological and security needs but is also a source of status and prestige
in society.
58. Why Job Security is considered as an important motivator?
 Job Security is an important motivator, although in certain circumstances it can act as a powerful
short-term demotivator.
 To threaten people, the loss of employment is to provide a negative incentive.
59. What is financial / pecuniary incentive?
Incentives are payments directly or indirectly in money wages, salaries, bonus, profit sharing retirement
pay, vacation apply, etc. are the examples of Pecuniary incentives.
Financial incentives can be of two types:
a. Individual incentives: individual to achieve higher performance to earn higher financial rewards.

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b. Group incentives: includes profit sharing, production bonus, pension plan, etc. wherein employees are
rewarded collectively.
60. What is non financial / non pecuniary incentive?
Incentives provide psychological and emotional satisfaction rather than financial rewards. Status,
responsibility, recognition of work, job security, challenging job, team spirit, competition and
participation are examples of non-financial incentives.
61. What is Job satisfaction? [Dec 2017, May 2008]
 Job satisfaction is the amount of overall positive effect or feelings that individuals have towards their
job.
62. What are the three approaches to evaluate job satisfaction?
 The first approach is that work attitudes such as job satisfaction, job performance are dispositional
in nature, i.e., they are stable, positive or negative disposition learned through experiences.
 The second approach is the social information processing model, which suggests that Job satisfaction
and other workplace attitudes are developed.
 The third approach is the Information processing model which is based on the accumulation of
cognitive information about the work place and one’s job.
63. Mention the importance of Job satisfaction.
 Job satisfaction significantly contributes to employee productivity and morale.
 If employees are satisfied, turnover and absenteeism will be less and productivity will be more.
 Further satisfaction of individual expectations results in group integration and cohesiveness.
64. List out the factors related to Job satisfaction.
 Job satisfaction influences a series of factors such as nature of work, salary, advancement
opportunities, work groups and work conditions.
 Some of the most important factors relating to Job satisfaction are briefly stated below:
o Personal Factors:
o Job factors:
o Organizational factors:
65. Define Job Enrichment [Dec 2010, 2017, MAY 2017]
 Job Enrichment is an extension of job enlargement technique.
 Job Enrichment is adding more tasks with higher sense of challenge, achievement and authority to
an employee’s job
66. Give the advantages of job enrichment.
 Increases the productivity
 Reduction in the absenteeism and turnover
 Improvement in the worker’s morale.
 Improves decision making ability
 Reduces work load of superiors.

67. How to make Job enrichment more effective?

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  Use job enrichment selectively after taking in to account situational variables such as job
characteristics, personal characteristics of employees, organizational level etc.
 Provide a supportive climate for innovation and change.
 Job enrichment demands a development effort. Managers must have a better understanding with
people who involved in this process.
 Develop the skill of the participants in a job enrichment programme first. If skills to carry out the
decision making and goal setting responsibilities are not provided, he gets more frustrated.
68. What is meant by job enlargement? [May 2009] (or) Define job enlargement. [Dec 2011]
 Job Enlargement is increasing the number of similar tasks performed by a worker without enhancing
the responsibility.
69. What is meant by job rotation?
 Job Rotation is periodically moving workers from one specialized job to another.
 The purpose is to broaden the knowledge of the manager.
70. Who is a leader? [Nov/Dec 2012]
 Leader is one who makes the subordinates to do willingly what he wants.
71. What is leadership?
 Leadership is the process of influencing the behaviour of others to work.
 Leadership inspires and motivates people to work together.
72. Define leadership. [May 2019]
 Koontz and O’ Donnel have define,” Leadership is the art of process of influencing people so that they
will strive willingly towards the achievement of group goals”.
 George R.Terry has defined.” Leadership is the activity of influencing people to strive willingly for
group objectives”.
 Bernard keys and Thomas case have defined,” Leadership is the process of influencing and
supporting others to work enthusiastically toward achieving objectives”.
73. What are the four basic ingredients of leadership skills? [Apr’05].
The basic ingredients of leadership skills are
 Physical qualities
 Intellectual qualities
 Morale qualities
 Social qualities
74. Mention the importance of leadership.
 motivating employees
 Leader develops team work
 Better utilization of Manpower
 Creating confidence to followers
 Directing group activities
 Building morale
 Maintaining Discipline
75. What are the essential qualities of a good leader? [May 2016]
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  Leadership qualities is a common perception that leaders are born, not made.
 A person’s authoritativeness, confidence in speech and action, ability to handle crisis without panic
are considered some of the most effective leadership qualities, which sets people apart from the
crowd.
76. What are the four basic ingredients of leadership skill? [Apr’05] (Or) Mention any two
leadership qualities. [Nov’05].
(i) Physical qualities: Sound health, vitality, appearance, physical and nervosa energy, forcefulness,
physique, enthusiasm.
(ii) Intellectual qualities: High intelligence sound judgment, ability to teach, scientific approach,
decisiveness, self understanding.
(iii) Social qualities: Ability to inspire, tact percussiveness, self-confidence, empathy, initiative,
knowledge of human nature human relations attitude.
77. Mention any two leadership qualities. [May 2005, Dec 2005] (or) List out few leadership traits.
[Nov 2004]
The qualities of leadership are
 Honesty
 Confidence
 Patience
 Focus
 Dedication
 Consistency
 Communication
78. List the types of Leadership Styles. [Apr’10, Dec 2010] (or) Mention the various leadership
styles. [May 2007, May 2016, Dec 2018]
 Autocratic or Dictatorial leadership
 Participative or Democratic leadership
 Laissez-faire or Free-rein leadership
 Paternalistic leadership
79. What is meant by Dictator Leadership?
 A leader who uses fear and threats to get the jobs done. As similar with a leader who uses an
autocratic style of leadership, this style of leader also makes all the decisions.
80. Define Autocratic leadership. [Dec 2007]
 A leader believes in centralisation of power, full authority and decision taken without consulting the
subordinates.
 He is also known as authoritarian or Dictator.
81. What are the three types of autocratic leaders?
There are three types of autocratic leaders.
a. Strict autocrat: The leader follows autocratic styles in a strict sense. He follows negative motivation
for getting work from subordinates.
b. Benevolent Autocrat: The leader also takes decisions himself but his motivation styles is positive,

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c. Incompetent Autocrat: Sometimes, leader adopts autocratic leadership style just to hide their
inabilities i.e, incompetence, but this cannot be used for a long time.
82. What are the advantages and disadvantages of autocratic leadership?
Advantages
 Quick decision making
 Suitable at lower levels
Limitations:
 Dissatisfaction among employees
 One way communication without feed back
 Employee morale will be very low
 Absenteeism and employee turnover will be more
 Absence of leader affects the output
83. What is meant by Participative or democratic leadership?
 Leader believes in decentralisation of power.
 This type of leader asks suggestion; ideas from sub-ordinates.
 Subordinates feedback are consulted before decision making.
84. What are the advantages and disadvantages of democratic leadership? [MAY 2018]
Advantages:
 Leads to good human relation.
 Motivated by participating in decision making.
 Absenteeism and employee turnover will be less.
Limitations:
 Time consuming indecision making.
 Not suitable at lower levels.
 Controlling is difficult.
85. What is Laissez – faire? [Dec 2014]
Laissez faire or Free Rein:
 The leader has no authority and responsibility under this style.
 Authority is completely decentralized.
 Complete freedom given to the subordinates
 The sub ordinates themselves take decisions for which they get authority.
86. What are the advantages and disadvantages of Laissez – faire?
Advantages:
 Positive effect on job satisfaction
 It creates an environment of freedom, of individuals as well as the team-point.
 Full utilization of the potential of subordinates.
Limitations:
 Lack of discipline
 Lowest productivity
 No control and co-ordination.
87. What is Paternalistic?
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  Leader plays a father like role towards the followers and takes care of their problem.
 The way a father does for his family and his subordinates will be his daughter or son. This type of
leader will give complete freedom to sub-ordinates.
88. What are the advantages and disadvantages of Paternalistic?
Advantages:
 Subordinates are loyal to the organization and leader.
 Good human relations (because of family environment).
 Fear and love are combined. Hence best performance.
Limitations:
 Unsuitable when there is lack of mutual trust between leader and followers.
 More involved in family problems than organisational issues.
89. What are the different types of management systems involved in leadership?
 Exploitative – Autocratic
 Benevolent – Autocratic
 Consultative – Democratic
 Democratic – participative
90. Classify the leadership theories.
o Charismatic leadership theory or Great man theory
o Trait theory
o Behavioural theory
-Michighan studies
-Ohio state university
-Managerial grid
o Contingency theory
Fiedler’s model
House‘s path goal model
91. Write short notes about Charismatic leadership theory.
 This theory also called great man theory. This suggests “Leaders are born and is not made”
 Leadership quality carried out through genes.
 These leaders has extremely high-level of self-confidence, dominance,
 E.g. Mahatma Gandhi, Nelson Mandela, Lenin, Winston Churchill, etc.
92. What is meant Trait Theory?
 Trait means quality in Person.
 It describe leadership in terms of what they are
 These approaches are not completely inborn, but one can acquire through learning and experience.
 This theory suggest” what makes a successful leader” from the leader’s own characteristics.
93. State something about weakness of trait theory.
 There is no universal list of traits of successful leaders.
 It is therefore, difficult to indicate what mix of traits is necessary to make an effective leader.
 Individuals who never achieve leadership also posses some of the traits as successful leader.

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94. List out few Behavioural Theory. [Nov’04].
 The Michigan Studies.
 The Ohio state university studies
 The managerial grid
95. What is meant Behavioural Theory?
 This theory describes leadership in terms of what to do
 This emphasis strong leadership is a result of effective role of behaviour.
 Effectiveness of a leader is judged in terms of sub ordinate outcome
-Michighan studies
-Ohio state university
-Managerial grid
96. What are the two leadership styles identified in Michighan studies?
Researchers identified two leadership styles
 Employee centered: employees are allowed to handle most of the problems with little assistance
 Production centered: Concerned more for the task than the people performing the task.
97. What are the two leadership behaviours identified in Ohio state university studies?
Researchers identified two leadership behaviours
 Concentration: mutual trust between leaders and the group
 Initiating structure: creating a work environment.
98. What is a managerial grid?
 Managerial grid is a well known approach to define leadership style.
 The grid is useful in identifying and classifying the managerial styles.
 The grid has two dimensions, concern for people and concern for production
99. Write short notes about Situational or Contingency Approaches to Leadership.
 Some traits and behaviours are effective in a particular situation and ineffective in another
situation.
 According to situation theory, no leadership style is the best for all times and all situations.
 Situation helps the persons to develop their leadership qualities and emerge as leaders.
100. Give short notes about Fielder's contingency approach.
 According to this theory, leader effectiveness depends upon three major situational variables. They
are (a) Leader-member relations, (b) The task structure and (c) The leader's position power.
101. State House’s path – goal approach.
 This model is a combination of situational leadership theory and V room’s expectancy theory.
 Leaders set up clear path and guidance through which the subordinates can achieve the goal.
102. What are the two groups of situational variables are considered in House’s path – goal
approach?
Two groups of situational variables are considered
i. Characteristics of subordinates – Needs, self confidences and abilities
ii. Work environment – Nature of task, rewards systems, formal authority system
103. What are the four leadership behaviour identified in House’s path – goal approach?
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There are 4 leadership behaviour that supports this approach depending on situation
Supportive leadership : friendly and approachable and has positive effect on the followers
Participative leadership: makes the decision with active participation of the followers.
Instrumental leadership: Leader focuses planning, organizing and co-coordinating the activities.
Achievement – Oriented leader ship: leader sets challenging goals for the followers and seeks
improvement of performance of the subordinates.
104. Write short notes about Likerts Management Model – Situational theory.
 System 1- Exploitive Autocratic Leader (oriented towards task alone)
 System 2 - Benevolent Autocratic Leader (task oriented but has the quality of opposing if things are
good)
 System 3 - Participative Leader (concerns the employees for a particular kind of work, though he
concern decisions will be taken only by him.
 System 4 - Democratic leader.
105. What is communication?
Communication is the passing of information from one person to another person.
106. Define communication.
 Communication is commonly defined as "the imparting or interchange of thoughts, opinions, or
information by speech, writing, or signs".
107. Define effective communication. [May’07, Dec 2016]
 If the message sent by the sender to the receiver is understood by the receiver in the same sense it is
called effective communication.
108. State the need for communication.
 To establish and spread goals of an enterprise widely.
 To develop plans for further achievement.
 To organize human and other resources in the most effective and efficient way.
 To select, develop and apprise members of the organization.
109. List the components of communication process. [May 2012]
 The communication process model is made up of seven parts:
(a) Source, (b) Encoding, (c) Message, (d) Channel, (e) Decoding, (f) Receiver, and (g) Feedback.
110. Write short notes on elements of communication. [Dec 2014]
Sender – Initiator of communication process
Message – The Subject matter of Communication
Encoding – act of translating he message into words, pictures, symbols
Channel – Media used (formal or informal)
Receiver – person who receives the message and understand
Decoding – act of converting symbols, signs or pictures into meaningful message
Noise- Affects the communication in any stage- transmitter, receiver, channel. If any one is affected
proper communication will not reach the receiver.
Feedback –It is the response, reaction or reply to the sender by the receiver.
111. What is the purpose of communication?

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  Communication is necessary to integrate all the managerial functions internally Planning,
Organising, Staffing, Leading, Controlling.
112. Define Noise in communication. [May 2008, May 2016]
 Communication is affected by noise of any stage. It may be in the sender, the transmission or the
receiver stage. If anyone is affected, the proper communication will not reach the receiver. To ensure
effective communication, we have to provide noiseless environment.
 In addition to this, the effectiveness of communication must be checked by the sender by feedback. It
is done for checking the information whether it is correctly reached or not
113. Name the various types of communication. [Apr’04] (or) What is meant by downward
communication? [N/D 2018]
The various types of communication are
o Formal - follows the route formally laid down in the organization structure
o Informal communication - Communication among people through informal contacts or relations
o Upward communication – Top to Bottom
o Downward communication – Bottom to Top
o Horizontal communication - Communication between the peers or employees of same level
114. Distinguish between Downward and Upward Communication. (or) (or) What is meant by
downward communication? [N/D 2018]
Down ward Upward
From higher to lower levels From lower to higher levels
Flow is downward Flow is upward
Directive in nature Non-directive
Purpose is to get plans implemented Purpose is to provide feedback on results
Travels fast Travels slowly
Orders, instructions, lectures, manuals, Reports, suggestions, grievances, protests,
handbooks, etc are the main examples surveys are the main examples.
115. Distinction between Formal and Informal Communication.
Formal Communication Informal Communication
Official Channel Unofficial Channel
Deliberately Planned and Systematic Unplanned and Spontaneous
Part of Organization Structure Cuts across formal relationships
Oriented towards goals and task of the Directed towards goals and need
enterprises satisfaction of individuals
Impersonal Personal and social
Stable and rigid Flexible and instable
Slow and Structured Fast and Unstructured

116. What are the different methods of communication?

1. Oral Communication
2. Written Communication
3. Non verbal or Gestural Communication

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117. What is meant by Oral communication?
 Oral Communication involves exchange of messages through spoken words.
 It may take place. i) by face- to face contacts ii) through mechanical devices like telephone.
118. State the advantages of oral communication.
 Economical
 Personal touch
 Speed
 Flexibility
 Quick response
119. What is meant by written communication?
 Written Communication is transmitted through written words in the form of letter, circular, memos,
bulletins, instruction cards, manuals, handbooks, reports, returns.
120. What do you understand by non-verbal communication? [Dec 2011, May2010]
 The information is passed on orally form one person to another. It can be done by face to face, in
meetings or by telephone etc.
121. What is Communication network?
 A network is a structure of organization made up of lines or channels interconnected
122. Name down the various communicating networks. (or) What are the communication
networks?
The various communication networks are
o Simple chain
o Wheel
o Circle
o Free flow
123. Write short notes about various communicating networks.
Simple chain:
 Communication flows downward or upward through successive levels
 Control is easier
 Time consuming
Wheel:
 Subordinates are not linked directly
 Subordinates can communicate with only a central supervisor
 Coordination is difficult
Circle:
 Communication moves in a circle
 Each person can communicate with the 2 nearest neighbours only
 Communication is slow
Free flow:
 Everyone is allowed to talk freely with others
 Communication is fast but coordination is difficult
 Delay in decision making
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124. Differentiate single and multiple channel networks.
Sl.No Single channel communication Multiple channel communication
1. The communication is allowed on only one The communication is allowed in
path called as line authority. It is simply more than one path.
referred as though proper channel.
2. Communication flow is slow. Communication flow is faster.
3. Easy to maintain orderly in nature. Potential problems may occur.
4. Miscommunication is reduced Miscommunication is increased

125. What are the barriers involved in effective communication? [May 2016]
 Physical barriers – Noise, Defects in the medium and Time and distance.
 Socio-psychological or personal barriers – Emotions, Lack of self confidence, Bad listening, Selective
perception and Laziness.
 Organizational barriers - Status relationship and Lengthy process
 Semantic barriers – Language, Picture. Gestures and Action
 Mechanical barriers - inadequate arrangement for transmission of news, facts and figures, poor
layout, and defective procedure
126. How to make the communication more effective.
 Sound Organization Structure
 Clear messages
 Two-way Communication
 Multiple Channels
 Good Listening
 Effective Control
 Modern Instrument
 Human Relations attitude
127. Why good communication system is essential?
 Clarity of messages
 Completeness of message
 Consistency of message
 proper timing
 Follow-up
 Economy
128. List the electronic media in communication. (or) List out the various effective media in
communication.
 Fax
 Intranet
 Internet
 World wide web
 E mail
 Teleconferencing
 Videoconferencing
 Whatsapp
 Skype

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129. State the important rules for effective communication.
 The information should be simple and clear.
 The information should be in known language to the receiver.
 The sender should use correct communicating channel. For recording purpose, it should be in
written and oral method for fast communication.
 In written communication, principle of line authority should be followed.
130. Why is management by wandering around considered effective communication? [May’09]
A good management always wants to minimize the conflict with effective communication. For
example, negative communication, blaming communication, superior communication, dishonest
communication and selective communication can be easily avoided by wandering around considered
effective communication.
131. What is meant by reframing matrix?
 Reframing Matrix is a simple technique that helps to look at business problems from a number of
different view pints.
 It expands the range of creative solutions that you can generate.
 The approach relies on the fact that different people with different experience approach problems
in different ways.
132. What is Personality? [May 2017]
 Personality is defined as the set of habitual behaviors, cognitions and emotional patterns that
evolve from biological and environmental factors.

UNIT –IV DIRECTING

Prepared By, S.BARATH, AP/MCA, KCET-College of Engineering & Technology,Cuddalore Page 60