Mgt. process & organizational behaviour complete

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SMU ASSIGNMENT.. SEM --1 ... BY ROHIT MISHRA

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Mgt. process & organizational behaviour complete

  1. 1. Master of Business Administration Semester I Management Process and Organizational Behaviour Assignment Set- 1Q1. EXPLAIN THE PROCESS OF SOCIAL LEARNING THEORY?Ans. PROCESS OF SOCIAL LEARNING THEORYThe social learning theory was proposed by Bandura. It recognizes the importance of observingand modeling the behaviors, attitudes, and emotional reactions of others. According to Bandura(1977), most human behavior is learned observationally through modeling: from observingothers one forms an idea of how new behaviors are performed, and on later occasions this codedinformation serves as a guide for action. Social learning theory explains human behavior in termsof continuous reciprocal interaction between cognitive, behavioral, and environmentalinfluences.Social learning has four processes: 1. Attention processes People learn from a model only when they recognize and pay attention toits critical features. In order to learn, it is required to pay attention. Anything that detracts theattention is going to have a negative effect on observational learning. If the is model interestingor there is a novel aspect to the situation, it is more likely to dedicate the full attention tolearning.2. Retention processes A model’s influence will depend on how well the individual remembersthe model’s action after the it is no longer readily available. The ability to store information isalso an important part of the learning process. Retention can be affected by a number of factors,but the ability to pull up information later and act on it is vital to observational learning.
  2. 2. 3. Motor reproduction processes after a person has seen a new behavior by observing the model,the watching must be converted to doing. The ability to store information is also an importantpart of the learning process. Retention can be affected by a number of factors, but the ability topull up information later and act on it is vital to observational learning.4. Reinforcement processes Individuals will be motivated to exhibit the modeled behavior ifpositive incentives or rewards are provided. Finally, in order for observational learning to besuccessful, you have to be motivated to imitate the behavior that has been modeled.Reinforcement and punishment play an important role in motivation. While experiencing thesemotivators can be highly effective, so can observing other experience some type ofreinforcement or punishment? For example, if you see another student rewarded with extra creditfor being to class on time, you might start to show up a few minutes early each day.Principles of social learning are as follows:1. The highest level of observational learning is achieved by first organizing and rehearsing themodeled behavior symbolically and then enacting it overtly. Coding modeled behavior intowords, labels or images results in better retention than simply observing.2. Individuals are more likely to adopt a modeled behavior, if it results in outcomes they value. 3. Individuals are more likely to adopt a modeled behavior, if the model is similar to theobserver and has admired status and the behavior has functional value.
  3. 3. Q2. What are the hindrances that we face in perception?Answer: Hindrances that we face in perceptionListening is not easy and there are a number of obstacles that stand in the way of effectivelistening, both within and outside the workplace. These barriers may be categorized as follows –1. Physiological Barriers – This was discussed earlier under the barriers to communication. Somepeople may have genuine hearing problems or deficiencies that prevent them from listeningproperly. Once detected, they can generally be treated. Other people may have difficulty inprocessing information, or memory related problems which make them poor listeners. Anotherphysiological barrier is rapid thought. Listeners have the ability to process information at the rateof approximately 500 words per minute, whereas speakers talk at around 125 words per minute.Since listeners are left with a lot of spare time, their attention may not be focused on what thespeaker is saying, but may wander elsewhere.2. Physical Barriers – These refer to distractions in the environment such as the sound of anairconditioner, cigarette smoke, or an overheated room, which interfere with the listening process.They could also be in the form of information overload. For example, if you are in a meetingwith your manager and the phone rings and your mobile beeps at the same time to let you knowthat you have a message; it is very hard to listen carefully to what is being said.3. Attitudinal Barriers – Pre-occupation with personal or work related problems can make itdifficult to focus one’s attention completely on what a speaker is saying, even if what is beingsaid is of prime importance. Another common attitudinal barrier is egocentrism, or the belief thatyou are more knowledgeable than the speaker and that you have nothing new to learn from hisideas. People with this kind of closed minded attitude make very poor listeners.4. Wrong Assumptions – The success of communication depends on both the sender and thereceiver, as we have seen in an earlier unit. It is wrong to assume that communication is the soleresponsibility of the sender or the speaker and that listeners have no role to play. Such anassumption can be a big barrier to listening. For example, a brilliant speech or presentation,however well delivered, is wasted if the receiver is not listening at the other end. Listeners haveas much responsibility as speakers to make the communication successful, by paying attention,seeking clarifications and giving feedback.Another wrong assumption is to think that listening is a passive activity, in which a listenermerely absorbs the thoughts of the speaker. On the contrary, real listening or active listening ishard work – it requires speaking sometimes to ask questions, agree or disagree with the speaker,give feedback, etc.
  4. 4. Yet another barrier of this type is to assume that speakers are more powerful than listeners.Speakers are seen as being in command of things, whereas listeners are seen to be weak andlacking authority. According to communication experts however, the reverse is true. Listenersare as important and as powerful as speakers. In fact David J. Schwartz, writer and managementprofessor, emphasizes the importance of listening by saying “Big people monopolize thelistening. Small people monopolize the talking.”5. Cultural BarriersAccents can be barriers to listening, since they interfere with the ability to understand themeaning of words that are pronounced differently. The problem of different accents arises notonly between cultures, but also within a culture. For example, in a country like India where thereis enormous cultural diversity, accents may differ even between different regions and states.Another type of cultural barrier is differing cultural values. The importance attached to listeningand speaking differs in western and oriental cultures. Generally, Orientals regard listening andsilence as almost a virtue, whereas Westerners attach greater importance to speaking. Thereforethis would interfere with the listening process, when two people from these two different culturescommunicate.6. Gender BarriersCommunication research has shown that gender can be a barrier to listening. Studies haverevealed that men and women listen very differently and for different purposes. Women are morelikely to listen for the emotions behind a speaker’s words, while men listen more for the factsand the content.Example – A salesperson giving a demonstration of a new type of office equipment may beasked by two colleagues if the equipment will work without any problems and respond by saying“Sure.” A male user may take his answer at face value, whereas a female user may detect somehesitation in his voice. This is because the male user listens for the content of the message,whereas the female user listens for the tone of the message.7. Lack of TrainingListening is not an inborn skill. People are not born good listeners. They have to develop the artof listening through practice and training. Lack of training in listening skills is an importantbarrier to listening, especially in the Indian context.Lee Iacocca, former Chairman of the Chrysler Corporation in the US, was one of the first torecognize the need for organized training programs in listening skills. Today, many organizationsboth in India and abroad incorporate listening skills in their training programs.8. Bad Listening HabitsMost people are very average listeners who have developed poor listening habits that are hard toshed and that act as barriers to listening. For example, some people have the habit of “faking”attention or trying to look like a listener, in order to impress the speaker and to assure him thatthey are paying attention. Others may tend to listen to each and every fact and, as a result, missout on the main point. Yet another habit is to avoid difficult listening and to tune off deliberately,if the subject is too technical or difficult to understand. Sometimes, the subject itself may bedismissed as uninteresting, because the listener does not want to listen.
  5. 5. Strategies for Effective Listening:Although a number of barriers stand in the way of effective listening, these can be overcomethrough conscious efforts, training and practice. Some of the suggested methods are discussed indetail below –1. Create a Conducive Environment – To an extent, you can try to control the environment inwhich communication takes place, so that listening can take place without any distractions.Ensuring a proper sound system and acoustics so that the speaker is audible, avoiding places withhigh levels of activity, loud noises from the outside environment and poor air conditioningsystems, shutting off mobile phones and telephones, are some of the ways in which you canovercome some of the physical barriers to listening.2. Select Face-to-face Channels – Listening is less accurate in the absence of face-to-facecommunication. For example, listening to and understanding ideas correctly over the telephoneare much harder than through a face-to-face meeting. Take the case of calling a restaurant andplacing orders over the telephone for home delivery of a meal. The chances are that your ordersmay not be understood correctly. Therefore, as far as possible, arrange face-to-face contact toensure more accurate listening.3. Be Open-minded and Avoid Distractions – Listening is an exhausting activity which requiresthe right attitude and mindset. You have to focus your attention completely on what the speakeris saying, without letting your mind wander. This kind of concentration can be developedthrough various techniques and through constant practice. In addition, it is also important to ridyourself of the notion that you have nothing new to learn from the other person. Even if it is asubject about which you may be knowledgeable, the speaker may offer a different perspective orpoint of view. Therefore it is important to listen actively.4. Use Non-verbal Cues to Indicate Active Listening – It is important to communicate to thespeaker that you are listening actively to what he is saying. This can be done even without verbalcommunication. All the different aspects of non-verbal communication discussed earlier shouldbe used for maximum effect. For example, maintaining steady eye contact with the speaker,sitting up with an erect posture, nodding now and then to show appreciation and understandingand appropriate facial expressions are some of the ways in which your non-verbalcommunication can indicate that you are involved in what the speaker is saying.5. Use Verbal Communication to Indicate Active Listening – While nonverbal behavior by itselfcan communicate that you are an active listener, it is also important to engage in verbalcommunication with the speaker.Silence is often interpreted as lack of understanding or attention. You need to seek clarifications,give feedback and suggestions, or just paraphrase in your own words what the speaker has said,in order to convey that you have understood his message.6. Listen First Before Responding – Always let yourself finish listening before you begin tospeak. Avoid the tendency to formulate your own response, even before you have listenedcompletely to the speaker’s words.
  6. 6. If you are too busy thinking about what to say next, you may miss the main point that the speakeris trying to make. This also gives the speaker the impression that you are pre-occupied or rude.7. Use the Speaker-listener Gap constructively – It was pointed out earlier that listeners have theability to absorb information faster than speakers’ rate of speech. This spare time available tolisteners is often misused by letting the mind wander and is one of the physiological barriers tolistening.One way of overcoming this barrier is to try to use this spare time to note down what the speakerhas said, review what has been said so far and anticipate what he may say next. Thinking aheadof the speaker and trying to guess where his talk is leading is a good strategy for effectivelistening. This is not easy, but can be learnt through proper training.8. Focus on the Verbal and Non-verbal Message – Listening involves not only hearing andunderstanding the meaning behind the words, but also being alert to the non-verbal behavior ofthe speaker. The importance of non-verbal cues has been emphasized throughout this book. It isimportant to watch for any positive or negative messages that may be conveyed through thespeaker’s tone of voice, facial expressions, gestures and outward appearance.9. Focus on the Content, rather than the Delivery – In order to grasp the true meaning of what thespeaker is saying, it is important to concentrate on the content of the message, rather than on howthe message is delivered.For example, looking at the power point slides during a speaker’s presentation may distract yourattention from the main point that he is trying to convey. Similarly, being over critical of thespeaker’s accent or mannerisms may make you miss the essence of the message.10. Ask Questions of Yourself and Make Notes – In order to engage in active listening, you alsoneed to ask certain questions to yourself while listening. For example, “What is the key idea thatthe speaker is trying to convey?”, “How does this fit in with I already know on the subject?” or“How is this presentation organized?” are some possible questions that you could jot down alongwith the answers.
  7. 7. Q3. Describe the bases of power.ANS. Bases of powerIn the context of inter-personal relationship power may be defined as the ability of a person toinfluence and control behavior of others. Experts have identified different bases or source ofpower that a person may have. These are:Coercive power. Coercive power results from a persons ability to punish or withhold rewards. Aperson who robs you on the street threatening you with a gun is using this type of power.Resource power. A person has resource power when he or she has the discretion to decide theresources available to you. Thus a person in finance department, who can influence the sanctionof other employees expenditure budget can exercise resource power over them.Position power. A person has some authority and discretion assigned to him by virtue of his/herposition in the organization structure. This is position power.Expert power. A person has expert power by virtue of being recognized as an expert. We acceptthe advice of doctor, and even allow him/her to operate upon us because we have faith in hisexpertise.Information power. Information is like resource power. A person with information can disclosethe information selectively to people he wants to favour, and in this way exercise influence overthem.Association power. People can also exercise power by their relationship and association withothers. People tend accept opinions and wishes of people having good relationship them.Personal power. This type of power flows from the persons personal characteristics includinglooks, personality, and interpersonal skills. This power has a multiplier effect. It helps a personto enhance the effectiveness of all other type of power.Power is the ability to make things happen in the way an individual wants, either by self or bythe subordinates. The essence of power is control over the behavior of others (French & Raven,1962). Managers derive power from both organizational and individual sources. These sourcesare called position power and personal power, respectively.Personal power resides in the individual and is independent of that individuals position. .Three bases of personal power are:1. Expertise,2. Rational persuasion,3. Reference.
  8. 8. Expert power is the ability to control another persons behavior by virtue of possessingknowledge, experience, or judgment that the other person lacks, but needs. A subordinate obeysa supervisor possessing expert power because the boss ordinarily knows more about what is to bedone or how it is to be done than does the subordinate. Expert power is relative, not absolute.However the table may turn in case the subordinate has superior knowledge or skills than his/ herboss. In this age of technology driven environments, the second proposition holds true in manyoccasions where the boss is dependent heavily on the juniors for technologically orientedsupport.Rational persuasion is the ability to control anothers behavior, since, through the individualsefforts; the person accepts the desirability of an offered goal and a viable way of achieving it.Rational persuasion involves both explaining the desirability of expected outcomes and showinghow specific actions will achieve these outcomes.Referent power is the ability to control anothers behavior because the person wants to identifywith the power source. In this case, a subordinate obeys the boss because he or she wants tobehave, perceive, or believe as the boss does. This obedience may occur, for example, becausethe subordinate likes the boss personally and therefore tries to do things the way the boss wantsthem done. In a sense, the subordinate attempts to avoid doing anything that would interfere withthe pleasing boss-subordinate relationship. Followership is not based on what the subordinatewill get for specific actions or specific levels of performance, but on what the individualrepresents-a path toward lucrative future prospects.Charismatic Power is an extension of referent power stemming from an individuals personalityand interpersonal style. Others follow because they can articulate attractive visions, take personalrisks, demonstrate follower sensitivity, etc.
  9. 9. Q4. Ms. Chanchal Das Gupta is a recruitment specialist. For the post of QC Manager, sheinterviews three candidates. Given below are the physical characteristics of the candidates.CANDIDATE Physical CharacteristicsMR. RAVI Muscular, thick skin, rectangular shapedMR. GINEESH Thin, delicate build, large brain, tallMR. RAMGOPAL Soft, round shaped, underdeveloped musclesFrom the above descriptions, what personality traits can Ms. Chanchal derive out of thecandidates as per Sheldon’s theory of personality?ANS. Per Sheldon`s theory of personality, below are the traits that Ms. Chanchalcan derive:CANDIDATE Physical CharacteristicsMR. RAVI Muscular, thick skin, rectangular shapedMR. GINEESH Thin, delicate build, large brain, tallMR. RAMGOPAL Soft, round shaped, underdeveloped musclesMr. Ravi represents Mesomorph body type. He is “well-proportioned”. Psychologically he isAdventurous, Courageous, Indifferent to what others think or want, Assertive/bold, Zest forphysical activity, Competitive, With a desire for power/dominance, And a love of risk/chanceMr. Gineesh represents Ectomorph body type. Psychologically he is Self-conscious, Private,Introverted, Inhibited, Socially anxious, Artistic, Intense, Emotionally restrained, ThoughtfulMr. Ramgopal represents Endomorph body type. Psychologically he is Sociable, Fun-loving,Love of food, Tolerant, Even-tempered, Good humored, Relaxed, with a love of comfort, and hasa need for affection.
  10. 10. Q5. What are the consequences of conflict in organizations?Ans: Consequences of conflict in organizationsOrganizational Conflict can have both positive and negative consequences.Negative consequences: Increased costs (time, money) devoted to dealing withthe conflict, wasted resources and energy spent dealing with the conflict, Decreased productivity,Lowered motivation, Decreased morale, Poor decision-making, Withdrawal andmiscommunication or non-communication, Complaints and blaming, Backstabbing and gossip,Attitudes of distrust and hostility (that may influence all future interactions, (Permanent) erosionto personal, work, and community relationships, Harm to others not directly involved in theconflict,Damaged emotional and psychological well-being of those involved in the conflict,Dissatisfaction and stress.Positive consequences: Leads to new ideas, Stimulates creativity, Motivateschange, Promotes organizational vitality, Helps individuals and groups toestablish identities, Serves as a safety valve to indicate problems, Buildscooperation, Helps individuals to develop skills on how to manage conflicts, Improvingquality decisions.
  11. 11. Q6. Explain sensitivity training.Ans: Sensitivity training Sensitivity training is a psychological technique in which intensive group discussion andinteraction are used to increase individual awareness of self and others;It is practiced in a variety of forms under such names asT group,Encounter group,Human relations andGroup - dynamics training.The group is usually small and unstructured and chooses its own goals. A trained leader isgenerally present to help maintain a psychologically safe atmosphere in which participants feelfree to express themselves and experiment with new ways of dealing with others. The leaderremains as much as possible outside the discussion. Issues are raised by the group members, and their interactions evokea wide variety of feelings. The leader encourages participants to examineverbally their own andothers’ reactions. It is believed that as mutual trust is developed, interpersonal communicationincreases, and eventually attitudes will change and be carried over into relations outside thegroup.Often, however, these changes do not endure. Sensitivity training seems to be most effectiveif sessions are concentrated and uninterrupted, as in several days of continuous meetings.Sensitivity-training methods derived in large part from those of group psychotherapy.They have been applied to a wide range of social problems (as in business and industry) in aneffort to enhance trust and communication among individuals and groups throughoutan organization.
  12. 12. Set- 2Q1. State the characteristics of management.Ans: The main characteristics of management are as follows:I. Management is an activity:Management is an activity which is concerned with the efficient utilization of human and non-human resources of productionII. Invisible Force: Management is an invisible force. Its existence can be felt through the enterprise or institution itis managing.III. Goal Oriented: Management is goal oriented as it aims to achieve some definite goals and objectives. Accordingto the Hayman, "Effective management is always management by objectives". Managers andother personnel officers apply their knowledge, experience and skills to achieve the desiredobjectivesIV. Accomplishment through the efforts of others:Managers cannot do everything themselves. They must have the necessary ability and skills toget work accomplished through the efforts of othersV. Universal activity: Management is universal. Management is required in all types or organizations. Wherever thereare some activities, there is management. The basic principles of management are universaland can be applied anywhere and in every field, such as business, social, religious, cultural,sports, administration, educational, politics or military.
  13. 13. VI. Art as well as Science: Management is both an art and a science. It is a science as it has an organized body ofknowledge which contains certain universal truths and an art as managing requires certain skillswhich apply more or less in every situation.VII. Multidisciplinary Knowledge: Though management is a distinct discipline, it contains principles drawn from manysocial sciences like psychology, sociology etc.VIII. Management is distinct from ownership: In modern times, there is a divorce of management from ownership. Today, big corporations areowned by a vast number of shareholders while their management is in the hands ofpaid qualified, competent and experienced managerial personnelIX. Need at all levels:According to the nature of task and scope of authority, management is needed at all levels of theorganization, i.e., top level, middle and lower levelX. Integrated process:Management is an integrated process. It integrates the men, machine and material to carry outthe operations of the enterprise efficiently and successfully. This integrating process is resultoriented.
  14. 14. Q2. Mr. Suresh Kumar is the VP- HR of a leading financial services company. He is havinga meeting with Ms. Rejani chandran leading HR consultant. Mr. Suresh is concerned aboutcreating an environment that helps in increasing the job satisfaction amongst employees.Assume that you are Ms. Rejani, the HR consultant.What suggestion you will give to Mr. Suresh, for creating an environment that increasesjob satisfaction?Ans: Suggestions that I will give to Mr. Suresh, for creating an environment that increases job satisfaction are: Below are the suggestions for creating an environment with increased job satisfaction from an HR perspective: Provide workers with responsibility-and then let them use it Show respect Provide a positive working environment Reward and recognition Involve and increase employee engagement Develop the skills and potential of your workforce Evaluate and measure job satisfaction
  15. 15. Q3. Define emotional intelligence. Explain Goldman’s model of emotional intelligence.Ans: Emotional intelligenceEmotional intelligence (EI) refers to the ability to perceive, control and evaluate emotions. Someresearchers suggest that emotional intelligence can be learned and strengthened, while othersclaim it is an inborn characteristic. Since1990, Peter Salvoes and John D. Mayer have been theleading researchers on emotional intelligence. In their influential article "EmotionalIntelligence," they defined emotional intelligence as, "the subset of social intelligence thatinvolves the ability to monitor ones own and others feelings and emotions, to discriminateamong them and to use this information to guide ones thinking and actions" (1990).Goleman identified the five domains of EQ as:1. Knowing your emotions.2. Managing your own emotions.3. Motivating yourself.4. Recognizing and understanding other peoples emotions.5. Managing relationships, i.e., managing the emotions of others.Emotional Intelligence embraces and draws from numerous other branches of behavioral,emotional and communications theories, such as NLP (Neuro-Linguistic Programming),Transactional Analysis, and empathy. By developing our Emotional Intelligence in these areasand the five EQ domains we can become more productive and successful at what we do, and helpothers to be more productive and successful too. The process and outcomes of EmotionalIntelligence development also contain many elements known to reduce stress for individuals andorganizations, by decreasing conflict, improving relationships and understanding, and increasingstability, continuity and harmony.
  16. 16. Q4. Explain the different leadership styles as per Managerial – Leadership Grid Theory.Ans: Leadership styles as per Managerial – Leadership Grid Theory The Managerial Grid is based on two behavioral dimensions: Concern for People – This is the degree to which a leader considers the needs of team members, their interests, and areas of personal development when deciding how best to accomplish a task. Concern for Production – This is the degree to which a leader emphasizes concrete objectives, organizational efficiency and high productivity when deciding how best to accomplish a task. Country Club Leadership – High People/Low Production This style of leader is most concerned about the needs and feelings of members of his/her team. These people operate under the assumption that as long as team members are happy and secure then they will work hard. What tends to result is a work environment that is very relaxed and fun but where production suffers due to lack of direction and control. Produce or Perish Leadership – High Production/Low People Also known as Authoritarian or Compliance Leaders, people in this category believe that employees are simply a means to an end. Employee needs are always secondary to the need for efficient and productive workplaces. This type of leader is very autocratic, has strict work rules, policies, and procedures, and views punishment as the most effective means to motivate employees. Impoverished Leadership – Low Production/Low People This leader is mostly ineffective. He/she has neither a high regard for creating systems for getting the job done, nor for creating a work environment that is satisfying and motivating. The result is a place of disorganization, dissatisfaction and disharmony. Middle-of-the-Road Leadership – Medium Production/Medium People This style seems to be a balance of the two competing concerns. It may at first appear to be an ideal compromise. Therein lies the problem, though: When you compromise, you necessarily give away a bit of each concern so that neither production nor people needs are fully met.
  17. 17. Leaders who use this style settle for average performance and often believe that this is themost anyone can expect.Team Leadership – High Production/High People According to the Blake Mouton model,this is the pinnacle of managerial style. These leaders stress production needs andthe needs of the people equally highly. The premise here is that employees are involvedin understanding organizational purpose and determining production needs. Whenemployees are committed to, and have a stake in the organization’s success, their needsand production needs coincide. This creates a team environment based on trustand respect, which leads to high satisfaction and motivation and, as a result, highproduction.
  18. 18. Q5. Distinguish between internal and external forces of change.Ans: Internal and external forces of changeInternal Forces:Poor financial performanceEmployee dissatisfactionInefficiency of existing business processes and systemsNeed to increase profitabilityExistence of cultural misfits to organization goals and objectivesExternal Forces:Changes in technologyPolitical factorsGeneral macro-economic environmentChanges in consumer tastes, preferences, purchasing patterns & frequenciesDeclining market shares due to competition.
  19. 19. Q6. What are the 14 principles of management of Henri Fayol?Ans: Following are the 14 principles of management of Henri Fayol:1. DIVISION OF WORK: Work should be divided among individuals and groups to ensure that effort and attention arefocused on special portions of the task. Fayol presented work specialization as the best way touse the human resources of the organization.2. AUTHORITY:The concepts of Authority and responsibility are closely related. Authority was defined by Fayolas the right to give orders and the power to exact obedience. Responsibility involves beingaccountable, and is therefore naturally associated with authority. Whoever assumes authorityalso assumes responsibility.3. DISCIPLINE:A successful organization requires the common effort of workers. Penalties should be appliedjudiciously to encourage this common effort.4. UNITY OF COMMAND:Workers should receive orders from only one manager.5. UNITY OF DIRECTION:The entire organization should be moving towards a common objective in a common direction.6. SUBORDINATION OF INDIVIDUAL INTERESTS TO THE GENERALINTERESTS:The interests of one person should not take priority over the interests of the organization asa whole.7. REMUNERATION:Many variables, such as cost of living, supply of qualified personnel, general businessconditions, and success of the business, should be considered in determining a worker’s rate ofpay.
  20. 20. 8. CENTRALIZATION:Fayol defined centralization as lowering the importance of the subordinate role. Decentralizationis increasing the importance. The degree to which centralization or decentralization should beadopted depends on the specific organization in which the manager is working.9. SCALAR CHAIN:Managers in hierarchies are part of a chain like authority scale. Each manager, from the first linesupervisor to the president, possesses certain amounts of authority. The President possesses themost authority; the first line supervisor the least. Lower level managers should always keepupper level managers informed of their work activities. The existence of a scalar chain andadherence to it are necessary if the organization is to be successful.10. ORDER:For the sake of efficiency and coordination, all materials and people related to a specific kind ofwork should be treated as equally as possible.11. EQUITY:All employees should be treated as equally as possible.12. STABILITY OF TENURE OF PERSONNEL:Retaining productive employees should always be a high priority of management. Recruitmentand Selection Costs, as well as increased product-reject rates are usually associated with hiringnew workers.13. INITIATIVE:Management should take steps to encourage worker initiative, which is defined as new oradditional work activity undertaken through self direction.14. ESPIRIT DE CORPS:Management should encourage harmony and general good feelings among employees.
  21. 21. THANK YOU

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