Study Materials for UGC NET Commerce

1. 1
Dr.K.Karthikeyan
Associate Professor of Commerce
Dean and Controller of Examinations
Vivekananda College
Tiruvedakam West – 625 234
Mobile: +91-9865074994
Email: karthikeyan.madurai@gmail.com

2. EMBRACE the UNKNOWN
Stagnant Choices
are in the Known Domain
Progressive Choices
are always in the Unknown
Domain

3. Management Thinkers
1. Robert Owen (1858-1971)
2. Charles Babbage (1792-1871)
3. Henry Robinson Towne (1844-1924)
4. Henry Metcalfe (1847-1917)
5. Frederick Winslow Taylor (1856-1915)
6. Henry Laurance Gantt (1861-1919)
7. Frank B.Gilbreth (1868-1924)
8. Mrs.Lillian M.Gilbreth (1878-1972)
9. Henry Fayol (1841-1925)
10.Elton Mayo (1880-1949)
11.Mary Parkett Follet (1868-1933)
12.Chester I.Bernard (1886-1961)
13.Peter F.Drucker (1909-2005) – MBO
14.James A.F.Stoner (Born1935 ) - MBE

4. Evolution of Management Thought
Management Thought Period
1 Early contribution Upto 19th Century
2 Scientific Management 1900-1930
3 Operational Management 1916-1940
4 Human Relations Approach 1930-1950
5 Social Systems Approach 1940-1950
6 Decision Theory Approach 1945-1965
7 Management Science Approach 1950-1960
8 Human Behaviour Approach 1950-1970
9 Systems Approach 1960 onwards
10 Contingency Approach 1070 onwards

5. Approaches to Study of Management
1. The empirical or Case approach
2. The interpersonal behaviour approach
3. The Group Behaviour approach
4. The cooperative social systems approach
5. The socio-technical systems approach
6. The decision theory approach
7. The mathematical or management science
approach
8. The managerial roles approach
9. The situational or contingency approch
10.The systems approach

6. Principles of Scientfic Management
F.W.Taylor (USA) (1856-1915) Father of Scientific
Management – Book on “Shop Management and
Principles of Scientific Management” – Mental
Revolution
Principles:
1. Determining one best method of performing each
task
2. Scientific selection and education of workers
3. Spirit of friendly cooperation between
management and workers

7. Techniques of Scientfic Management
1. Time and Motion Study
2. Functional Foremanship
3. Standardisation of Tools and Equipments
4. Differential Piece Rate System
5. Establishing Planning Department
Planning Function- Instruction card clerk,
Route Clerk, Time and Cost clerk,
Disciplinarian
Production Function- Speed Boss, Repair
Boss, Gang Boss, Inspector

8. Principles of General Management
Henry Fayol (1841-1925) – French Mining Engineer
Book “General and Industrial Management” (1916)
1. Division of Work
2. Authority and Responsibility
3. Discipline
4. Unity of Command – Only one Superior
5. Unity of Direction – One unit/head One Plan
6. Scalar Chain
7. Subordination of Individual Interest to the General
Interest
8. Remuneration
9. Centralisation
10. Order – a place for everything and everyone
11. Equity – combination of kindness and justice
12. Stability of Tenure of Personnel
13. Initiative
14. Esprit de Corps

9. Levels and Functions of Management
1. Top Level Management – Conceptual Skills
2. Middle Level Management – Human Skills
3. Lower Level Management – Technical Skills
Functions of Management
1. Planning
2. Organising – Formal and Informal
3. Staffing
4. Directing – Motivation, Leadership,
Communication, Supervision, Coordination
5. Controlling

10. Organising
Designing and maintaining interpersonal and
departmental relationship
Classical Organisation Theory – Classical Pillars
1. Division of Labour
2. Scalar and Functional Processes
3. Structure
4. Span of Control
Organisation Structure
1. Line
2. Line and Staff
3. Functional

12. Span of Control
The number of subordinates that a manager can
manage effectively.
Factors determining an Effective Span of Control
1. Capacity of supervisor
2. Capacity of subordinates
3. Nature of work
4. Clarity of Delegation of authority
5. The degree of physical dispersion
6. Information and control system
7. Use of Staff Assistance

13. Authority and Responsibility

14. Delegation of Authority
Right to act or direct the action of others
towards attainment of organisational goals
Process of Delegation
1. Assignment of Duties
2. Granting of Authority
3. Creation of Accountability
Principles
1. Principles of Delegation by Results expected
2. Parity of Authority and Responsibility
3. Principles of Absoluteness of Responsibility
4. Unity of Command
5. Authority Level Principle

15. Delegation of Authority
Benefits
1. Reduces Managers‟ Burden
2. Develops subordinates
3. Provides Motivation
4. Improves Behavioral Climate
5. Provides Continuity
Problems
1. Receptiveness
2. Willingness to Let Go
3. Willingness to Let Others Make Mistakes
4. Willingness to Trust subordinates
5. Willingness to establish and use broad controls
6. Relucktance on the part of subordinates

16. Basis Authority Responsibility Accountability
Meaning
Right to
Command
Obligation to
perform the
assigned task
Answerable for
outcome of the
assigned task
Delegation
Can be
Delegated
Cannot be fully
delegated
Cannot be
delegated at all
Origin
Arises from
Formal Position
Arises from
delegated
authority
Arises from
Responsibility
Flow
Always flows
downward
Always flows
upward
Always flows
upward

18. Decentralisation
Factors determining degree of decentralization of
authority
1. Costliness of the Decision
2. Desire for Uniformity of Action
3. Size of the Organisation
4. History of the Enterprise
5. Management Philosophy
6. Geographical Dispersion
7. Availability of Managers
8. Control Techniques
9. The Pace of Change
10.Environmental Influence

19. Motivation
 Process of stimulating people to action
to accomplish desired goals
Nature of Motivation
1. It is a psychological concept
2. It is always total and not piecemeal
3. It may be financial or non-financial
4. Method of motivation may be positive
as well as negative
5. It is a continuous process

20. Importance of Motivation
1. Inducement of employees
2. Higher efficiency
3. Optimum use of resources
4. Avoidance of loss due to mishandling
and breakage
5. No complaints and grievances
6. Better human relations
7. Avoidance of strikes and lock outs
8. Reduction in labour turnover

21. Theories of Motivation
Based on Human Needs
1. Maslow
2. Herberg
3. McClelland
Based on Human Nature
1. McGregor
2. Urwick
3. Argyris
Based on Expectancy of Human Beings
1. Vroom
2. Porter and Lawler

22. Theories of Motivation
1.Maslow‟s Need Hierarchy
Theory
2.McGregor‟s X and Y Theory
3.Ouchi‟s Z Theory
4.Herzberg‟s Two Factor Theory
5.McClelland‟s Need Theory
6.Vroom‟s Expectance Theory

23. Theories of Leadership
1. „Great Man‟ Theories
2. Trait Theories
3. Behavioural Theories
4. Contingency Theories
5. Transactional or Management
Theories
6. Transformational or Relationship
Theories
7. Situational Theories
8. Participative Theories

24. Corporate Governance
“The technique by which companies are directed
and managed. It means carrying the business as per
the stakeholders‟ desires”.
The scope of governance would include
Shareholders, Board of Directors, Management,
Market Intermediaries, Finance market, contractual
shareholders, customers, suppliers, government
entities/other regulating authority, media and
society. Apart from these, external auditors also play
a vital role in corporate governance.
Principles of Corporate Governance
1. Fairness
2. Accountability
3. Transparency
4. Responsibility

25. Business Ethics
“The moral principles that act as guidelines for
the way a business conducts itself and
its transactions”.
Characteristics
1. A Discipline
2. Ancient Concept
3. Personal Dignity
4. Related to Human Aspect
5. Study of Goals and Means
6. Different from Social Responsibility
7. Greater than Law
8. Code of Conduct
9. Based on Moral and Social Values

26. Business Ethics

27. Human Resource Management
Modern HRM – Stages
1. The Industrial Revolution Stage
2. Trade Unionism
3. Scientific Management
4. Industrial Psychology
5. Human Relations Movement
6. Behavioural Sciences
7. Human Resource Specialist and Employee
Welfare

28. Function of HRM
Managerial Functions
1. Planning
2. Organising
3. Directing
4. Controlling
Operative Functions
1. Procurement
2. Development
3. Compensation
4. Integration
5. Maintenance

29. Managerial Function of HRM
1. Planning – Determination of Objectives, Policies,
Procedures, Rules, Strategies, Programmes,
Budgets
2. Organising
Division of Work, Delegation of Authority,
Creation of Accountability
3. Directing
Supervision. Motivation, Communication
4. Controlling
Establishing standards, Measuring actual
Performance, Comparing actual performance
with standards, Measuring deviations, taking
corrective actions

30. Operative Function of HRM
1. Procurement - Job analysis, HRP, Recruitment, Selection,
Placement, Transfer, Promotion
2. Development - Performance appraisal, Training, Executive
Development, Career Planning and Development,
Organisational Development (OD)
3. Compensation - Job Evaluation, Wage and Salary
administration, Incentives, Bonus, Fringe Benefits, Social
Security Schemes, Career Planning
4. Integration - Supervision, Motivation, Morale,
Communication, Leadership, Collective Bargaining,
Discipline and Grievance, Managing Conflicts at work
place, Managing Change, Stress Management,
Counselling, Trade Unions
5. Maintenance – Promoting Job Satisfaction, Labour
Turnover, Quality of Work Life, HR Accounting, Audit and
Research

31. Nature of HRM
1. It is universally relevant
2. It is goal oriented
3. It adopts a systematic approach in handling
the manpower resource
4. It is pervasive in nature
5. It is an on-going activity
6. It is a dynamic field activity
7. It focuses on the development of manpower
resource
8. It is a science as well as art
9. It is interdisciplinary
10.It is relatively new

32. Importance of HRM
1. It helps the organisation to identify correclty its
manpower needs
2. It ensures that the organisation does not suffer from
either surplus or shortage of manpower
3. It facilitates the selection of the right man for the right job
4. It focuses attention on the development of the skill of
every individual in order to make him up-to-date
5. It recognises the need for the appraisal of the employees
performance
6. It considers the need to provide incentives to the
employees performing well
7. It gives utmost importance to securing a favourable
employee attitude
8. It emphasises the need for good human relations in every
workplace
9. It provides scope for collective bargaining

33. Human Resource Planning
Process of determining the manpower requirements and
the means for meeting those requirements in order to
carry out the integrated plan of the organisation
Importance
1. It helps the organisation to procure the required
manpower
2. It further helps to replace employees
3. It helps in expansion programmes
4. It ensures optimum investment in human resource
5. It is indispensable to give effect to reservation policy
6. It is essential in view of the problem of labour
turnover
7. It helps to tackle the problem of surplus or shortage
of manpower
8. It becomes necessary to meet the needs of changing
technology

34. Human Resource Planning
Characteristics
1. It is goal oriented
2. It focuses attention on the present and future
manpower needs of an organisation
3. It follows a systematic approach to the task of
fulfilling the manpower needs
4. It promotes efficiency
5. It is a continuous process
6. It can be made flexible
Steps in HR Planning
1. Analysing the organizational plans
2. Forecasting the demand for human resource
3. Forecasting supply
4. Making an estimate of the net human resource
requiremnts
5. Preparing the action plan

35. Factors Influencing HR Plan
Internal Factors
1. Recruitment policy of the organisation
2. Availability of funds
3. Job requirements
4. Scale of operation
5. Trade Union Influence
External Factors
1. The reservation policy of the government
2. Availability of the desired manpower
3. Willingness of the job seekers to accept the
terms and conditions
4. Knowledge of the trend in the industry
5. Level of technology

36. Recruitment
Process of searching for prospective employees and
stimulating them to apply for jobs in the
organisation
Internal Sources of Recruitment
1.Transfer
2. Promotion
3. Recommendation by existing employees
External Sources of Recruitment
1. Advertisements
2. Employment exchanges
3. Private employment consultants
4. Campus Interview
5. Rival Firms
6. Unsolicited Applications

37. Steps in Selection
1. Receiving application forms
2. Scrutiny
3. Preliminary Interview
4. Tests – Aptitude Test, Intelligence Test,
Proficiency Test, Interest Test, Personality Test
5. Final Interview
6. Checking References
7. Medical Examination
8. Appointment
9. Probation
10.Confirmation of Service

38. Employee Training
Process of imparting skill or job knowledge to a
person.
Need for Training
1. To enable the new recruits to understand
work
2. To enable existing exployees to update skill
and knowledge
3. To enable an employee who has been
promoted to understand his responsibilities
4. To enable an employee to become versatile
5. To enable the employees to adapt to change
in work methods

39. Importance of Training
1. Improvement in skill and knowledge
2. Higher production and productivity
3. High Morale and Job satisfaction
4. Better use of resources
5. Reduction in accidents
6. Less supervision
7. Reduction in complaints
8. Adaptability
9. Scope for Management by Exception
10.Stability
11.Favourable organisational climate

40. Essentials of Training
1. It should have a specific goal
2. The training method should be
appropriate
3. It should be relevant
4. There may be provision of suitable
incentives
5. It should consider individual differences
6. It should make the trainees accountable
7. The emphasis should be on practical
aspects
8. There must be provision of certain
facilities

41. Methods of Training
On the Job Training
1. Induction training
2. Apprenticeship training
3. Refresher training
4. Job rotation
5. Placement as assistants
6. Vestibule training
Off the Job Training
1. Lectures and Conferences
2. Role Playing
3. Case Study
4. Management games
5. Brain Storming
6. Sensitivity training

42. Training Vs Development
Learning
Dimensions
Training Development
What
Technical and
mechanical
operations
Theoretical and
conceptual ideas
Who
Non-managerial or
operative personnel
Managerial/
supervisory personnel
Why
Specific job related
purpose
General Knowledge
When Short term Long term

43. Executive Development Process
Steps:
1. Identifying development needs
2. Appraisal of present managerial talent
3. Inventory of executive manpower
4. Developing development programmes
5. Conducting development programmes
6. Evaluating development programmes

44. Executive Development Methods
On the Job Methods
1. Coaching
2. Job Rotation
3. Understudy Assignments
4. Committee Assignments
Off the Job Methods
1. Lecture
2. Case Studies
3. Group Discussion
4. Transactional Analysis
5. Role Playing
6. Management Games
7. Sensitivity Training
8. In-basket Exervise
9. Organisation Development

45. Succession Planning
„Identifying, developing and preparing the
people to occupy higher level jobs as and when
they fall vacant due to retirement, resignation,
death, etc.‟
Sources: Internal and External
Need for Career Planning
1. To attract talent
2. To enable employees to equip better to meet
future challenges
3. To provide career advancement benefits
4. To ensure correct placement of employees
5. To retain talent
6. To promote job satisfaction
7. To improve morale

46. Steps in Succession Planning
1. Identify key roles for succession or
replacement planning.
2. Define the capabilities and motivational
report required to undertake those roles.
3. Assess people against these conditions – with
a future orientation.
4. Identify polls of talent that could potentially
fill and perform highly in key roles.
5. Enable employees to be ready for
advancement into key roles – primarily
through the right set of experiences.

47. „
BASIS FOR
COMPARISON
CAREER PLANNING SUCCESSION PLANNING
Meaning
Career Planning is the
process through which
an individual selects
the goals of his work life
and finds ways to reach
the goals.
Succession Planning is a
process who tends to
spot and develop the
employees, that can
occupy the key positions
in the organization, when
they become vacant.
Subset of Career Management Succession Management
What is it? Individual Planning Organizational Strategy
Position
One employee holds
different positions, in
his/her work life.
One position is held by
different employees, over
a period of time.
Ensures Success in one's career
Continuity in leadership
for all key positions.

48. Compensation Management
1.Job Evaluation
2.Incentives
3.Fringe Benefits

49. Job Description, Specification,
Job Analysis, Evaluation
Job Description: It is an organized, factual
statement of the duties and responsibilities of a
specific job.
Job Specification: It is a statement of the
minimum acceptable human qualities necessary
to perform a job properly
Job Analysis: It is the process of studying and
collecting information relating to the operations
and responsibilities of a specific job.
Job Evaluation: It is a systematic and orderly
process of determining the worth of a job in
relation to other jobs in order to determine the
correct pay..

50. Objectives of Job Evaluation
1. Provide a standard procedure for determining the
relative worth of each job in a plant.
2. Determine equitable wage differentials between
different jobs in the organisation.
3. Eliminate wage inequalities.
4. Ensure that like wages are paid to all qualified
employees for like work.
5. Form a basis for fixing incentives and different bonus
plans.
6. Serve as a useful reference for setting individual
grievances regarding wage rates.
7. Provide information for work organisation, employees‟
selection, placement, training and numerous other
similar problems.
8. Provide a benchmark for making career planning for
the employees in the organisation.

51. Methods of Job Evaluation
1. Ranking Method – Jobs will be ranked in the
order of their importance, responsibilities, duties
involved
2. Classification Method – Job will be classified
under certain categories
3. Point Method – Requirements of each job in
terms of educational qualification, experience,
physical requirements, duties, responsibilities,
etc.
4. Factor Comparison Method- Based on Point
Method, maximum points for the factors involved
in each job. (Clerk, Typist, Data Entry Operator)

52. Wages and Salary Administration
Objectives:
1. To pay employees in accordance with
their job requirements
2. To eliminate any scope for favouritism
3. To attract capable hands
4. To improve the morale of employees
5. To control labour turnover
6. To establish lines of promotion
7. To have better rapport with workers‟
unions
8. To eliminate scope for grievances

53. Payment of Wages
Methods:
1. Time Wage
2. Piece Wage
Different Concepts of Wage
1. Bare or Basic Wage ( to meet basic needs)
2. Statutory Minimum Wage (as per
Minimum Wages Act, 1948)
3. Minimum Wage (considering education
and medical needs of family)
4. Living Wage (to meet basic and social
needs)
5. Fair Wage (above Minimum and below
living wage)

54. Laws relating to Payment of Wages
1. The Payment of Wages Act, 1936
2. The Minimum Wages Act, 1948
3. The Equal Remuneration Act, 1976
Essentials of Good System of Wage Payment
1. No ambiguity
2. Should ensure internal equity
3. Conformity with the pay structure of rival firms
4. Easy computation
5. Built-in incentive
6. Should avoid undue delay in payment
7. Should lay emphasis on quantity as well as
quality
8. Should provide for yearly increment
9. Should ensure stable income

55. Incentives
Any reward or benefit given to the employee over
and above his wage or salary with a view to
motivating him to excel in his work
Types of Incentives
1. Financial
2. Non-Financial
Categories of Incentive Plans
1. Individual Incentive Plans
a) Time-based Incentive Plans
b) Output-based Incentive Plans
2. Group Incentive Plan

56. Financial and Non-Financial Incentives
Financial Incentives
Non-Financial
Incentives
1. Performance Bonus 1. Merit Certificates
2. A higher rate of
commission to salesmen
for exceeding the target
2. More interesting work
3.Overtime Payment
3. Participating in decision-
making
4. Profit Sharing
4. Greater responsibility and
freedom
5. Company‟s shares
given at a special price
5. Better designations

57. Incentive Plans
Individual Incentive
Plans
Group Incentive Plans
1.Time-Based Plans 1. Priestman‟s Plan
2. Output-Based Plans 2. Scanlon‟s Plan

58. Individual Incentives Plans
Time-Based Plan Output-Based Plans
1. Halsey‟s Plan
1. Taylor‟s Differential Piece
Rate Plan
2. Rowan‟s Plan
2. Merrick‟s Multiple Piece
Rate Plan
3. Emerson‟s Plan 3. Gantt‟s Task Plan
4. Bedeaux‟s Plan

59. Fringe Benefits
1. Rent Free accommodation
2. Free uniforms
3. Subsidised Food
4. Leave Travel Concession
5. Leave with pay
6. Company vehicles for use
7. Medical reimbursement
8. Free education for employee‟s children
9. Insurance
10.Provident fund, gratuity and pension
11.Consumer cooperative stores
12.Company organised tours, etc.

67. Personality
Personality is the unique combination of emotional,
thought and behavioural patterns a person holds. Describing a
personality in terms of aggression, introvertness, ambition,
loyalty etc is categorising based on personality traits.
1. Extroversion- The degree to which a person is sociable,
talkative, assertive and comfortable in relationships
2. Agreeableness- The degree to which a person is good-
natured, cooperative and trusting
3. Conscientiousness- The degree to which a person is
responsible, dependable, persistent and achievement
orientated
4. Emotional Stability- The degree to which a person is calm,
enthusiastic and secure, nervous, depressed and insecure
5. Openness to Experience- The degree to which a person has
a wide range of interests, is imaginative, fascinated with
novelty and intellectual

68. Perception
Perception is a process by which
individuals interpret their sensory
impressions in order to give meaning to their
environment. In other words, people might
see the same thing but interpret it differently.
This interpretation is due to their individual
perception. There are many reasons as to
why this happens, but in general perceptions
differ due to the observer's individual
personality and context, the target being
observed and the situation in which the
perception takes place.

69. Attitude
An attitude is a person's disposition or
feeling about a person or object that is usually
expressed in a person's behaviour. It is made
up of the following three components.
1. Cognitive Component- the knowledge,
belief or opinion a person has towards
something
2. Affective Component- the emotion or
feeling a person has towards something
3. Behavioural Component- the intention
to behave in a certain way towards
something

70. Emotions
1. Happiness: Facial expressions such as smiling, body language such
as a relaxed stance, An upbeat, pleasant tone of voice
2. Sadness: Dampened mood, Quietness, Lethargy, Withdrawal from
others, Crying
3. Fear : Facial expressions such as widening the eyes and pulling
back the chin, Attempts to hide or flea from the threat, Physiological
reactions such as rapid breathing and heartbeat
4. Disgust: Turning away from the object of disgust, Physical reactions
such as vomiting or retching, Facial expressions such as wrinkling
the nose and curling the upper lip
5. Anger: Facial expressions such as frowning or glaring, Body
language such as taking a strong stance or turning away from
someone, Tone of voice such as speaking gruffly or yelling,
Physiological responses such as sweating or turning red, Aggressive
behaviors such as hitting, kicking, or throwing objects
6. Surprise: Facial expressions such as raising the brows, widening
the eyes, and opening the mouth, Physical responses such as
jumping back, Verbal reactions such as yelling, screaming, or
gasping

71. Group Dynamics
Group dynamics is a system of behaviors and
psychological processes occurring within a social
group (intra-group dynamics), or between social groups
(intergroup dynamics). The study of group dynamics can be
useful in understanding decision-making behaviour,
tracking the spread of diseases in society, creating effective
therapy techniques, and following the emergence and
popularity of new ideas and technologies. Group dynamics
are at the core of understanding racism, sexism, and other
forms of social prejudice and discrimination. These
applications of the field are studied
in psychology, sociology, anthropology, political
science, epidemiology, education, social work, business,
and communication studies. The three main factors
affecting a team's cohesion (working together well) are:
environmental, personal and leadership.

72. Power and Politics
Power is a pervasive part of
organizational life, used by managers to
accomplish goals and to strengthen
their own positions. Managers
manipulate power to accomplish goals
and strengthen their own positions.
Success or failure in using power
depends on understanding what it is,
how and when to use it, and
understanding its consequences.

73. Power and Politics
Interpersonal Power
1. Legitimate Power
2. Reward Power
3. Coercive Power
4. Expert Power
5. Referent Power
Power in Groups
1. Coalitions
2. Sexual Harassment
Power in Organisation
1. Structural Power
2. Inter-departmental power

74. Conflict and Negotiation
Conflict is disagreement between the persons
employed in an organisation.
It is the result of differences in the opinion of
employees of an organisation over any issue.
Different Stages of Conflict:
1. Latent Conflict
2. Perceived Conflict
3. Felt Conflict
4. Manifest Conflict
5. Conflict Aftermath

75. Causes of Conflicts
1. Changes in work patterns
2. Differences in perceptions
3. Differences in values
4. Availability of options
5. Allocation of limited resources
6. Inter-dependence
7. Unequal workload
8. Biased assessment of subordinates
9. Unattainable targets
10.Lack of trust and confidence
11.Threat to status quo

76. Resolution of Conflicts
1.Avoidance
2.Smoothing
3.Forcing
4.Compromising
5.Confronting

77. Stress Management
“A condition or feeling experienced when a
person perceives that demands exceed the
personal and social resources the individual is
able to mobilize.”
we experience stress when we feel “Out of
Control."
Approaches to Stress Management:
1. Prevent
2. Escape
3. Cope

78. Causes of Stress
Personal Factors Organizational Factors
1. Ability
2. Perception
3. Manner of approaching crisis
4. Level of self-confidence
5. Experience
6. Desire for work
7. Beliefs
1. Nature of job
2. Superior-subordinate
relationships
3. Inter-personal relationships
4. Target to be reached
5. Time pressure
6. Physical working conditions
7. Opportunities for achievement
8. Hours of work
9. Disparity in pay and other
benefits
10.Biased assessment
performance
11.Greater responsibilities
12.Punitive measures like
demotion, suspension, etc.

79. Consequences of Stress
Physical Problems – Headache, Hyper-tension, Lack of
appetite, Sleeplessness, Indigestion
Psychological Problems – Frustration, Emotional
instability, Nervousness and tension, Anxiety,
Irritable mood, Chronic worry, Depression
Behavioural Changes – Excessive smoking, Abuse of
alcohol or drugs, Late coming, Absenteeism,
Tendency to neglect safety precautions, Tendency to
pick up quarrels frequently with superiors and fellow
workers
Problems faced by the Enterprise – Low productivity,
low quality output, loss of man hours, excessive
complaints and grievances, high rate of absenteeism,
high rate of labour turnover, increase in industrial
accidents, increase in conflicts, strained inter-
personal relationships

80. Managing Stress
1. Prevention of Stress
1. Assignment of work according to each
individual‟s capabilities
2. Provision of better working conditions
3. Better inter-personal relationships
4. Better superior-subordinate relationships
5. Unbiased evaluation of employee
performance
6. Maintaining equality and equity in the
distribution of workload
2. Escape from Stress
1. Seeking Transfer
2. Opting for voluntary retirement
3. Finding alternative employment

81. Managing Stress
4. Coping with Stress
1. Understanding self – one‟s strengths and
weaknesses
2. Doing the work in a systematic and planned
manner
3. Setting a moderate goal
4. Avoiding long hours of work and overtime
work
5. Avoiding people who cause stress
6. Doing regular physical exercise
7. Maintaining a healthy diet
8. Developing a positive attitude towards life
and work

82. Collective Bargaining
A Technique used for compromising the conflicting
interests of the employer and the employees”
It involves discussion and negotiation between the
representatives of both workers and the management
on every important aspect of work – pay, working
conditions, career advancement, production target,
sales target, quality standards, etc.
Features:
1. Voluntary Process
2. Group Activity
3. Mutual
4. Flexibility
5. Dynamic
6. Continuous
7. Complementary
8. Democratic

83. Objectives of Collective Bargaining
1. To promote a democratic approach to
solving work related problems
2. To do away with the need for third
party intervention for finding solution
3. To provide for better employer-employee
relationships
4. To prevent unilateral action on the part
of the management
5. To ensure that trade union is given due
recognition
6. To arrive at a settlement that is
mutually beneficial

84. Collective Barganing in India
1. Multiplicity of Unions
2. Inter-union rivalry
3. Political affiliation of unions
4. Lack of able leaders
5. Non-recognition of unions
6. Indifferent attitude of the
employees
7. Autocratic attitude of management
8. Preference for legal remedy

85. Workers Participation in Management
“Workers‟ participation refers to the mental
and emotional involve-ment of a person in a
group situation which encourages him to
contribute to group goals and share in
responsibility of achieving them”. - Keith Davis
“Workers‟ participation may, broadly be taken
to cover all terms of association of workers and
their representatives with the decision-making
process, ranging from exchange of information,
con-sultations, decisions and negotiations to
more institutionalized forms such as the
presence of work­ers‟ members on management
or supervisory boards or even management by
workers themselves as practised in Yugoslavia”.
- ILO

86. Objectives of Workers Participation in Management
1. Promote mutual understanding between
management and workers, i.e., industrial
harmony.
2. Establish and encourage good
communication system at all levels.
3. Create and promote a sense of belongingness
among workers.
4. Help handle resistance to change.
5. Induce a sense among workers to contribute
their best for the cause of organisation.
6. Create a sense of commitment to decisions to
which they were a party.

87. Levels of
Workers Participation in Management
1. Informative Participation Level
2. Consultative Participation Level
3. Associative Participation Level
4. Administrative Participation Level
5. Decisive Participation Level

88. Forms of
Workers Participation in Management
1. Works Committee
2. Joint Management Council
3. Joint Production Committee
4. Joint Council
5. Unit Council
6. Plant Council
7. Shop Council
8. Workers representation on Board of
Management
9. Workers participation in Share Capital

89. Organisational Culture
“A system of shared beliefs and attitudes that
develop within an organisation and guides the
behaviour of its members.”
“The philosophies, ideologies, values,
assumptions, beliefs, expectations, attitudes and
norms that knit an organisation together and are
shared by its employees.”
“Sharing of norms and values that guide the
organisational members‟ behaviour and their
expected code of conduct outside the organisation”.
“It consists of a basic set of values, ideas,
perceptions, preferences, concept of morality,
code of conduct etc. which create a
distinctiveness among human groups.”

90. Characteristics of Organisational Culture
1. Individual autonomy
2. Structure
3. Management support
4. Identity
5. Performance reward system
6. Conflict Tolerance
7. Risk Tolerance
8. Communication Pattern
9. Outcome Orientation
10.People Orientation

91. Organisational Change (OD)
OD is a technique of planned change. It seeks to change
beliefs, attitudes, values and structures-in fact the entire
culture of the organization—so that the organization
may better adapt to technology and live with the pace of
change.
“A comprehensive strategy for organization
improvement. O.D. is a long range effort to improve an
organization’s problem solving and renewal processes,
particularly through a more effective and collaborative
management culture”

92. Organisational Development (OD)
1. Organisational development is an educational strategy for
bringing a planned change.
2. It is related to real problems of the organisation.
3. Laboratory training methods based on experienced behaviour are
primarily used to bring change.
4. O.D. uses change agent (or consultant) to guide and affect the
change. The role of change agent is to guide groups towards more
effective group processes rather than telling them what to do.
Change agents simply assist the group in problem solving
processes and the groups solve the problems themselves.
5. There is a close working relationship between change agents and
the people who are being changed.
6. O.D. seeks to build problem-solving capacity by improving group
dynamics and problem confrontation.
7. O.D. reaches into all aspects of the organization culture in order
to make it more humanly responsive.
8. O.D. is situational and contingency oriented.
9. O.D. is research based. Change agents conduct surveys, collect
data, evaluate and then decisions are taken.

93. Organisational Development (OD)
10. O.D. is a long term approach (of 3 to 5 years period) and is
meant to elevate the organization to a higher level of functioning
by improving the performance and satisfaction of organization
members.
11. O.D. is broad-based and describes a variety of change
programmes. It is concerned not only with changes in
organizational design but also with changes in organizational
philosophies, skills of individuals and groups.
12. O.D. is a dynamic process. It recognises that the goals of the
organization change and hence the methods of attaining them
should also change.
13. O.D. utilizes systems thinking. It is based on open, adaptive
systems concept. The organization is treated as an interrelated
whole and no part of the organization can be changed without
affecting other parts.
14. O.D. uses group processes rather than individual process. It
makes efforts to improve group performance.
15. Organization Development and Management Development are
complementary rather then con-flicting.

94. Steps in Organisational Development
11. Problem identification—Diagnosis:
OD program starts with the identification of the problem in the
organisation. Correct diagnosis of the problem will provide its
causes and determine the future action needed.
2. Planning Strategy for Change:
OD consultant attempts to transform diagnosis of the problem
into a proper action plan involving the overall goals for change,
determination of basic approach for attaining these goals and the
sequence of detailed scheme for implementing the approach.
3. Implementing the Change:
OD consultants play an important role in implementing change.
4. Evaluation:
OD is a long-term process. So there is a great need for careful
monitoring to get process feedback whether the O.D. programme
is going on well after its implementation or not. For evaluation of
OD programme, the use of critic sessions, appraisal of change
efforts and comparison of pre- and post-training behavioural
patterns are quite effective.

95. Organisational Change
“Any alteration occurring in the work
environment that affects the ways in which the
employees must act. These changes may be
planned or unplanned, catastrophic or
evolutionary, positive or negative, strong or
weak, slow or rapid, and stimulated either
internally or externally”
Factors influencing Change
1. Internal Factors
2. External Factors

96. Factors influencing Change
Internal Factors External Factors
1.Policy decisions
2.Attitudes of
employees
3.Availability of funds
4.Escalating costs
5.Level of efficiency
6.Trade union
demands
1.Government
Regulations
2.Technological
advancement
3.Economic conditions
4.Changes in law
5.Competitive pressure
6.Trade association
influence
7.Changes in buyer
preference

97. Resistance to Change
1. Threat to job security
2. Fear of losing job
3. Fear of monetary loss
4. Increase in work burden
5. Bad precedents
6. Fear of transfer
7. Fear of demotion
8. Loss of promotion opportunities
9. Loss of leave benefits
10.Loss of social security benefits
11.Lack of scope for collective bargaining
12.Boredom and monotony
13.Early retirement

98. Overcoming Resistance to Change
1. Securing the participation of employees
2. Involving the trade union
3. Planning the change
4. Sharing the benefits of the change with the
employees
5. Protecting the interests of the employees
6. Ensuring that the existing privileges are not
withdrawn
7. Introduction of change in a phased manner
8. Proper motivation of employees
9. Provision of suitable training facilities
10.Introduce changes that are mutually beneficial
11.Any change must be logical

99. THANK YOU