Unit 1 Nature of Management

What is Management?
Management is required for an established life and essential to managing all types of
management. Sound management is the fortitude of thriving companies. Managing life implies
getting everything done to accomplish life’s aspirations and maintaining an establishment means
getting everything done with and by other people to deliver its objectives .

Modern Concept of Management

Management is a process through which an organisation designs and maintains an environment
in which individuals work together with the motive of achieving organisational goals effectively
and efficiently. The three essential elements that come under the modern concept of Management
are as follows:

1. Management is a ‘Process’: Management involves a series of int-related functions

like planning, organising, staffing, directing, and controlling, which makes it a process. Every
manager performs these functions to achieve goals.

2. Management requires Effective Performance: Effectiveness in Management means

achieving goals on time. In simple terms, it aims at end result. For example, if an organisation
achieves its sales target within time, it is said to be effective.

3. Management needs Efficiency: Efficiency in Management means doing tasks correctly and
with minimum cost. It is not enough to just complete the task on time, it should be accurate also.
Besides, management also aims at using its resources efficiently as it reduces the cost of the firm
ultimately resulting in higher profits.

Definitions:
1) According to Taylor:-
“Management is the art of knowing what you want to do and then seeing that it is
done in the best and cheapest way.”
2) According to Lawrence:-
“Management is the accomplishment of results through the efforts of other
people.”
3) According to Henry Fayol:-
“To manage is to forecast and to plan, to organize, to co-ordinate and to control.”

Nature of Management:

Characteristics of Management :
[Link] is a group activity :
It is a group activity. Nobody can satisfy all his desires himself. Therefore he unites which his
fellow- beings and works in an organized group to achieve what he cannot achieve individually.
Massie has rightly called management as a “ Co-operative group “.
2. Management is Goal - oriented :
According to Theo Haiman “ Effective management is always management by
objectives."Group efforts are directed towards the achievements of some predetermined goals.
Mangement is concerned with establishment and accomplishment of these objectives.
[Link] is a factor of Production :
Management is not an end in itself. It is a means to achieve the group objectives. It is a factor of
production that is required the co-ordinate with the other factors of production for the
accomplishment of predetermined goals and objectives.
[Link] is a Universal Character :
Management is essential in all types of concerns. It somewhere there is some human activity,
management is must there. The basic principles of management are universal. These can be
applied in all types of concerns i.e. business, social, religious, cultural, sports, educational.
[Link] is needed at all levels of the enterprise :
On the basis of the nature of work or target and the scope of authority, management is needed at
all levels of the organisations e.g., top level, middle level and supervisor level.
[Link] is a distinct function :
Management is a distinct function performed to fix and achieve stated objectives by the use of
manpower and other factors of production. Different from the activities, techniques and
procedures, the process of management consists of such functions as planning, organizing,
staffing, directing, coordinating, motivating and controlling.
[Link] is a Social Process :Management is taken as a social process. It has a social responsibility to

make reasonable use of scarce resources keeping in view the benefit of the community as a
whole.

Importance of Management
1. Increases Efficiency: The management process of an organisation increases its efficiency by

reducing cost and increasing productivity by utilisation of the available resources in the best
possible and optimum way.

2. Helps in Achieving Group Goals: Effective management process creates teamwork and builds
coordination among the members of an organisation. The managers provide a common path or
direction to their employees for the accomplishment of the overall objectives of the organisation.

3. Creates a Dynamic Organisation: Every organisation works in a changing environment. The

managers of an organisation have to help their members adapt to the changing environment, which
ultimately helps them ensure the survival and growth of the organisation. Besides, the management
convinces the employees that the changes brought in the organisation will benefit their future
prospects.

4. Development of Society: Every organisation has various objectives toward different groups of
society. Along with the development of the organisation, its management has to develop the
society too. To do so, the management helps the organisation produce good quality products, adopt
new technologies, and provide employment opportunities to the weaker sections of society.

5. Helps in Achieving Personal Objectives: Every individual or employee of an organisation has

different objectives or goals they wish to accomplish while doing their jobs. Management helps
these employees in fulfilling their personal objectives along with the organisational objectives.

FUNCTIONS OF MANAGEMENT
The major functions of management are
Planning :
It includes forecasting, formation of objectives, policies, programmes, producer
and budget. It is a function of determining the methods or path of obtaining there
objectives. It determines in advance what should be done, why should be done, when,where, how
should be done. This is done not only for organization as a whole but alsofor every division, section
and department. Planning is thinking before doing.
Organizing:-
It includes departmentation, delegation of authority, fixing of responsibility and
establishment of relationship.
It is a function of providing every thing useful to the business organization.
There are certain resources which are mobilize i.e. man, machine, material, money,
but still there are certain limitations on these resources. A manager has to design and develop a
structure of various relations. This structure, results from identification and grouping work,
delegation of authority and responsibility and establishing relationships.

Staffing:-
It includes manpower planning, recruitment, selection, placement and training.
People are basically responsible for the progress of the organization. Right
man should be employed for the right job. It also involved training of personnel and proper
remuneration.
Directing:-
It includes decision making, supervising, guidance etc. It reflects providing
dynamic leadership. When the manager performs these functions, he issues orders
and instructions to supervisors. It also implies the creation of a favorable work,
environment motivation, managing managers, managing workers and managing work
environment.
a. Communication:-
Communication provides the vital link in any organization. Every successful
manager has to develop an effective system of communication.
Communication means exchange of facts, ideas and information between two
or more person. It helps in building up high moral.
b. Controlling:-
It is a process of checking actual performance against standard performance.
If there is any difference or deviation then these differences should be detected and
necessary steps should be taken. It involves three elements:
1. Establishing standard of performance.
2. Measuring actual performance with establishment.
3. Finding out reasons for deviation.
Controlling Staffing
Management includes planning, organizing, staffing and decision making,
motivation, communication, co-ordination and so on.

MANAGEMENT IS AN ART, A SCIENCE AND A PROFESSION

Management is treated as art, science and profession because it has some
characteristics of an art, a science and a profession.
Art is personal skill. It is created by nature. It does not posses by all. Art is
bringing about desired results with the help of skills. Management is one of the most
creative arts. It requires a lot of knowledge.
Management is an art because:
1] It is creative
2] It involves use of skill.
3] It involves use of technical know how.
4] It is directed towards getting results.
5] It is personalized.

Management is a profession because:-

A Profession
Social Responsibility
Knowledge
Application
Self Control
Profession is an occupation carried by professionals like doctor, lawyer, architect,
chartered accountant, cost accountant etc.
It involves knowledge and application of it.
Management as a profession is modern concept different from traditional one.
Characteristics of a profession :-
1. Systematic body of knowledge:-
Professionals require expert knowledge in a particular discipline.
E.g. a doctor requires knowledge of medicine; Chartered Accountant needs to
have knowledge of Income Tax.
2. Formal Education:-
A true professional needs to have formal education from the institution.
E.g. Lawyer needs degree of law.
3. Social Responsibility:-
The professional are socially responsible while handling their tasks and
responsibilities. Their aim should not be only profit maximization, but they have
to follow certain rules for social responsibilities.
4. Independent Office:-
Normally professionals practice from their independent office.
5. Specialization:-
The professionals may specialize in a particular field.
E.g. heart specialist, child specialist and ENT surgeon.

Management as a Science:-
Science is a systematic body of knowledge based on certain principles and
which are universally approved..
1. Systematic Structure

2. Universal Validity

3. Experiments

Evolution of Management Thought

Management is studied in business academics since earlier times, and it is considered as an
integral part to understanding business operations. People have been changing and redesigning
organizations for centuries. Though the 20th century is noticeable in history as an ‘Era of scientific
management’, still it does not indicate that management tactics were not used in yester years. Many
studies indicated that Management theory evolved with “scientific” and “bureaucratic”
management that used measurement, procedures and routines as the basis for operations. Firms
developed hierarchies to apply standardized rules to the place of work and penalized labour for
violating rules. With the “human relations” movement, companies emphasized individual workers.
Modern management theories, including system theory, contingency theory and chaos theory,
focus on the whole organization, with employees as a key part of the system.

The evaluation of management can be categorized into different parts:

 Pre-Scientific Management Era (before 1880),
Classical management Era (1880-1930),
Neo-classical Management Era (1930-1950),
Modern Management era (1950-on word).
The Classical Approach
The classical approach is the earliest thought of [Link] classical approach was
associated with the ways to manage work and organizations more efficiently. The classical
approach is categorized into three groups namely, scientific management, administrative
management, and bureaucratic management.

● I. Scientific Management: Scientific management which is also referred to Taylorism

or the Taylor system is a theory of management that evaluates and synthesizes workflows,
with the aim of improving labour productivity. In other words, conventional rules of thumb
are substituted by accurate procedures developed after careful study of an individual at
work. Universal approaches to Scientific management are developed for Efficiency of
workers, Standardization of job roles/activities and Discipline – the role of managers and
the business hierarchy

Principles of Scientific Management by Taylor:

F.W. Taylor or Fredrick Winslow Taylor, also known as the ‘Father of scientific management’
proved with his practical theories that a scientific method can be implemented to management.
Taylor gave much concentration on the supervisory level of management and performance of
managers and workers at an operational level. Let’s discuss in detail the five principles of
management by F.W Taylor.
1. Science, not the Rule of Thumb-
This rule focuses on increasing the efficiency of an organisation through scientific analysis of work
and not with the ‘Rule of Thumb’ method. Taylor believed that even a small activity like loading
paper sheets into boxcars can be planned scientifically. This will save time and also human energy.
This decision should be based on scientific analysis and cause and effect relationships rather than
‘Rule of Thumb’ where the decision is taken according to the manager’s personal judgement.
2. Harmony, Not Discord-
Taylor indicated and believed that the relationship between the workers and management should
be cordial and completely harmonious. Difference between the two will never be beneficial to
either side. Management and workers should acknowledge and understand each other’s
importance. Taylor also suggested the mental revolution for both management and workers to
achieve total harmony.
3. Cooperation, not Individualism-
It is similar to ‘Harmony, not discord’ and believes in mutual collaboration between workers and
the management. Managers and workers should have mutual cooperation and confidence and a
sense of goodwill. The main purpose is to substitute internal competition with cooperation.
4. Development of Every Person to his Greatest Efficiency-
The effectiveness of a company also relies on the abilities and skills of its employees. Thus,
implementing training, learning best practices and technology, is the scientific approach to brush
up the employee skill. To assure that the training is given to the right employee, the right steps
should be taken at the time of selection and recruiting candidates based on a scientific selection.

Administrative Management: Administrative Management emphasizes the manager and the

functions of management. The main objective of Administrative management is to describe the
management process and philosophy of management. In contradiction of scientific management,
which deals mainly with jobs and works at the individual level of scrutiny, administrative
management gives a universal theory of management.
Henry Fayol’s Administrative Management (1841–1925): Henri fayol is known as the
father of Modern Management. He was a popular industrialist and victorious manager. Fayol
considered that good management practice falls into certain patterns that can be recognized and
analysed. From this basic perspective, he devised a blueprint for a consistent policy of managers
one that retains much of its force to this day. His five function of managers was the plan, organize,
command, co-ordinate, and control. The principal of administrative management: [Link] of
labour, [Link] & responsibility, [Link], [Link] of command, [Link] of direction,
[Link] of individual interests to the general interest, [Link] of personnel,
[Link], [Link] chain, [Link], [Link], [Link] of tenure, [Link] and14
.Esprit de corps (union of strength). These 14 principles of management serve as general guidelines
to the management process and management practice. His principles of management are described
below.

1. Division of work: This is the principle of specialization which is detailed by economists as

an important to efficiency in the utilization of labour. Fayol goes beyond shop labour to apply the
principle to all kinds of work, managerial as well as technical.
2. Authority and responsibility: In this principle, Fayol discovers authority and responsibility
to be linked with the letter, the consequence of the former and arising from the latter.
3. Discipline: This discipline denotes “respect for agreements which are directed at achieving
obedience, application, energy and the outward marks of respect”. Fayol declares that discipline
requires good superiors at all levels, clear and fair agreement, and judicious application of
penalties.
[Link] of command: This is the principle that an employee should receive orders from one
superior only.

5. Unity of direction: Fayol asserted that unity of direction is the principle that each group of
activities having the same objective must have one head and one plan. As distinguished from the
principle of unity of command, Fayol observes unity of direction as related to the functioning of
personnel.
6. Subordination of individual interest to general interest: In any group, the interest of the
group should supersede that of the individual. When these are found to differ, it is the function of
management to reconcile them.
7. Remuneration of personnel: Fayol recognizes that salary and methods of payment should
be fair and give the utmost satisfaction to worker and boss.
8. Centralization: Fayol principle of centralization refers to the extent to which authority is
concentrated or dispersed in an enterprise. Individual circumstances will determine the degree of
centralization that will give the best overall yield.
9. Scalar chair: Fayol believe of the scalar chair as a line of authority, a ‘Chain of Superiors”
from the highest to the lowest ranks and held that, while it is an error of subordinate to depart
‘needlessly’ from lines of authority, the chain should be short-circuited when scrupulous following
of it would be detrimental.
10. Order: Breaking this principle into ‘Material order’ and ‘Social Order’, Fayol thinks of it as
the simple edge of “a place for everything (everyone), and everything (everyone) in its (his)
place”. This is a principle of organization in the arrangement of things and persons.
11. Equity: Fayol perceives this principle as one of eliciting loyalty and devotion from personnel
by a combination of kindliness and justice in managers dealing with subordinates.
12. Stability of tenure of personnel: Finding that such instability is both the cause and effect
of bad management, Fayol indicated the dangers and costs of unnecessary turnover.
13. Initiative: Initiative is envisaged as the thinking out and execution of a plan. Since it is one
of the “Keenest satisfactions for an intelligent man to experience”, Fayol exhorts managers to
“Sacrifice Personal Vanity” to permit subordinates to exercise it.
14. Esprit de corps: This is the principle that ‘union is strength’ an extension of the principle
of unity of command. Fayol here emphasizes the need for teamwork and the importance of
communication in obtaining it.

Contributions of Peter Drucker to Management

Drucker’s contributions to management:

[Link] of management:

Drucker opposed bureaucratic management and was in favour of creative [Link]

to him, the aim of management should be to innovate. This could be done in theform of combining
old and new ideas, developing new ideas, or encouraging others toinnovate.
[Link] functions:

According to Drucker, management is the key organ of any organisation. In his

opinion,management is performed through a series of tasks. A manager has to perform
severalfunctions such as setting of objectives, increasing productivity, organising and managing
social impacts and responsibilities, and motivating employees. Drucker gave importance to the
objective function and specified the divisions where clear objective is necessary. These are
innovation, productivity, market standing, financial resources, profitability, managerial
performance and development, employee performance, and social responsibility.

[Link] structure:

According to Drucker, there are three characteristics of an effective organisation structure asThe
institution must be structured to achieve maximum performance;It should contain least possible
number of managerial levels;It must be responsible for the testing and training of future
[Link] are three aspects in organising that are undermentioned:Activity analysis explains
the work that has to be done, what kind of work needs to be done, and what importance needs to
be given to the work.

4. Decentralisation

A common theme across much of Drucker’s enormous body of work was his firmly held belief
that managers should delegate tasks in order to empower employees, the decentralisation of
management. As he saw it, many business leaders would attempt to take on all responsibilities as
a display of power or to maintain a level of control, with the suggestion that they were the only
ones capable to undertake those responsibilities. In his ground-breaking 1946 book, ‘Concept of
the Corporation’, Drucker stated decentralization was a good thing as it created smaller teams
where people would feel that they could make an important contribution. His suggestion to achieve
this was to move businesses away from having one central office toward having several more
independent, smaller ones.

[Link] by objectives (MBO):

This is considered to be one of the most important contributions made by Drucker to the field of
management. Management by objectives (MBO) is a management approach where equilibrium is
required to be achieved between the objectives of employees and the objectives of an organisation.
There are certain conditions that must be met to make MBO management a success. Take a look
at these conditions here:

The objectives are set after discussions between the managers and employees;

● The set objectives are quantitative and qualitative in nature;

● Daily feedback must be given to the employees with regards to their performance;
● Employees with high performance must be rewarded;
● The guiding principle should be growth and development.
● According to Peter Drucker, management by objectives can be employed by following five

steps as explained that is

1. Define organizational objectives: Setting organisational objectives is the first step in

initiating management by objectives. These objectives should be in line with the
organisation’s vision and mission statement.

2. Inform the employees about the organizational objectives: According to MBO,

the objectives must be informed to the employees at all levels. This enables the employees
to understand their roles and responsibilities. Communication is another important aspect
in this step. High performing employees should be given positive feedback, which is
reinforced in the form of rewards.
3. Involve the employees in determining the objectives: Involving the employees in

the decision-making process helps them in understanding why certain things are expected
of them. This increases the commitment and the motivation of employees.
4. Monitoring the objectives: The objectives need to be measured on a regular basis
to ensure that the work is being done keeping the objectives in mind. The detection of
problems must be done in advance so that the problem could be prevented or easily sorted.
In MBO management, each objectives has sub-objectives and so on. The managers must
motivate and encourage the employees to complete the sub-objectives.
 5. Evaluation and Feedback: This is an important aspect of management by objectives.
A comprehensive evaluation system must be in place. Employees must be given honest
feedback, and high performance needs to be rewarded.
6. Drucker suggested the SMART method as means of checking the validity of a planned
objective.
7. Knowledge worker :Drucker suggested “the most valuable asset of a 21st-century
institution, whether business or non-business, will be its knowledge workers and their
productivity”.

Planning

DEFINITION
“Planning is an intellectual process, conscious determination of course of action, the basing of
decision on purpose, facts and considered estimates.”.
Koontz and O‘Donnell

Planning is deciding in advance what to do and how to do. It is one of the basic
managerial functions.
• It involves setting objectives and developing appropriate courses of action to achieve these
objectives.
• The plan that is developed has to have a given time frame but time is a limited resource.
It needs to be utilised judiciously.

Importance of Planning
1. Planning provides directions: By stating in advance, how the work is to be done
planning
provides direction for action. Planning ensures that objectives are clearly stated in
order to develop appropriate course of action. If the plans are set, the department
and individuals canworkincoordination.

2. Planning reduces the risk of uncertainty: Planning is an activity, which enables

a manager to look ahead and anticipate changes. Changes or events cannot be
eliminated but by deciding the plans and course of action in advance managers
can anticipate it and adjusttheplansaccordingtothesituation.

3. Planning reduces overlapping and wasteful activities: Planning serves as the

basis of coordinating the activities and efforts of different divisions departments
and individuals. It reduces useless and redundant activities, avoids confusion and
misunderstanding, and ensures clarity in though and action.

4. Planning promotes innovative ideas: Planning is the first function of

[Link] get the opportunity to develop new ideas and new ideas
can take the shape of concrete plans. It guides all future action leading to growth
and prosperity of the business.

5. Planning facilitates decision making: Planning involves setting targets and

 predicting future conditions, thus helping in taking rational decisions from
alternative courses of action.

6. Planning establishes standards for controlling: Planning provides the standards

against
which the actual performance is measured. Therefore planning is a prerequisite
for controlling.

FEATURES OF PLANNING

Planning
Focuses on
achieving
objectives:
Planning is a
Planning is a
primary function of
mental management:
exercise:

FEATURES
OF PLANNING
Planning
Planning is
involves
decision pervasive:
making:

Planning is Planning is
futuristic: continuous:

a. Planning focuses on achieving objectives: Organisations set up with

general goals and specific goals along with the plans and activities to
be undertaken to achieve these goals.

b. Planning is a primary function of management: Planning lays down

 the base for other functions of management.

c. Planning is pervasive: Planning is required at all levels of

management as well as in all departments of the organisation. The
scope of planning is different at different levels and for different
departments.

d. Planning is continuous: Continuity of planning is related with the

planning cycle. It means that a plan is framed, it is implemented,
and is followed by another plan, and so on.
 e. Planning is futuristic: The purpose of planning is to meet future
events effectively to the best advantage of an organisation. Planning
involves forecasting future events and conditions and drafting the
plans accordingly.

f. Planning involves decision making: Planning essentially involves

choice from among various alternatives and activities. If there is only
one possible goal or a possible course of action, there is no need for
planning because there is no choice.

g. Planning is a mental exercise: Planning requires application of

the mind involving foresight. Planning is an intellectual activity,
which requires logical and systematic thinking rather than guess
work.

LIMITATIONS OF PLANNING

● Planning reduces creativity: Top management does planning and middle

management does implementation of plan but they are not allowed to deviate
from plan and thus creativity of these managers get reduced.
● Planning involves huge costs: Huge costs are involved in the formulation of the
plan.
Detailed plans require scientific calculations to a ascertain data. Sometimes costs
incurred on planning doesn’t justify the benefits derive.
● Planning is a time consuming: Many aspects need to be considered while
formulating a plan,hence it is a very time consuming process.
● Planning does not guarantee success: The success of an enterprise is possible
only when plans are properly drawn and implemented. Managers tend to apply
the previously tried and tested plans but a plan successful before may not be
successful for all situations.

Management Principles - Types Of Plans

StrategicPlans
• It is the determination of the long-term objectives of an enterprise, the action plan to be adopted
and the resources to be mobilized to achieve these goals.
• Since it is planning the direction of the company’s progress, it is done by the top management of
an organization.
• It essentially focuses on planning for the coming years to take the organization
fromwhereitstandstodaytowhereitintendstobe.
• The strategic plan must be forward looking, effective and flexible, with a focus on
accommodating futuregrowth.
• These plans provide the framework and direction for lower level planning.

TacticalPlans
Tactical plans describe the tactics that the managers plan to adopt to achieve the
objectives set the strategic plan.
• Tactical plans span a short time frame (usually less than 3 years) and are usually
developed by middle level managers.
• It details specific means or action plans to implement the strategic plan by units withineach
division.
• Tactical plans entail detailing resource and work allocation among the subunits withineach
division.

OperationalPlans
Operational plans are short-term (less than a year) plans developed to create specific
action steps that support the strategic and tactical plans.
• They are usually developed by the manager to fulfil his or her job responsibilities.
• They are developed by supervisors, team leaders, and facilitators to support tactical
plans. They govern the day-to-day operations of an organization.

What is Decision Making in Management?

Decision making in management is the process of making a choice between two or more
options. This involves evaluating the pros and cons of various choices and choosing the
best option to achieve a desired outcome. In management decision making is about acting
in a way that meets organizational goals and objectives.
Types of Decision Making in Management

In management, decision making can be categorized into various types based on different
criteria, such as the level of impact, the level of structure, and the frequency of occurrence.
Here are some common types of decision making in management:

Programmed Decisions: These are routine, repetitive decisions that follow established
rules, procedures, or guidelines. They are typically made in response to well-defined and
recurring situations. For example, approving employee vacation requests or reordering
office supplies.
Non-Programmed Decisions: Non-programmed decisions are unique and require a more
individualized approach. They are often made in response to complex and novel situations
that lack predetermined solutions. Strategic decisions, mergers and acquisitions, and crisis
management are examples of non-programmed decisions.

Strategic Decisions: Strategic decisions are high-level choices that have a long-term impact
on the organization. They involve setting the organization's direction, goals, and strategies.
Examples include entering new markets, developing new products, and making major
investments.

Tactical Decisions: Tactical decisions are medium-term choices that focus on implementing
the strategies defined in strategic decisions. They involve resource allocation, coordination
of activities, and adjusting tactics based on changing circumstances. Budget allocation,
workforce planning, and supply chain management are tactical decisions.

Operational Decisions: Operational decisions are short-term choices made at the

operational level of an organization. They involve day-to-day activities, processes, and
tasks. Scheduling shifts, managing inventory, and resolving customer complaints are
examples of operational decisions.

Individual Decisions: Individual decisions are made by a single person within the
organization. These decisions might involve personal tasks, individual responsibilities, or
small-scale matters.

Group Decisions: Group decisions involve a team or committee working together to arrive
at a consensus. Group decisions can leverage diverse perspectives and lead to more
comprehensive solutions, but they can also take longer due to discussions and negotiations.

Decision Making Process

The decision-making process is a systematic sequence of steps that individuals or groups
follow to identify a problem or opportunity, gather relevant information, evaluate
alternative courses of action, and ultimately choose the best option to address the situation.
While there are various models of the decision-making process, a commonly used
framework involves the following steps:

Identifying the Problem or Opportunity:

Recognize the need for a decision, which could arise from a problem that needs solving or
an opportunity that can be seized.

Clearly define the issue at hand to ensure a focused decision-making process.

Gathering Information:

Collect relevant data, facts, and information related to the problem or opportunity.

This step involves researching, consulting experts, analysing historical data, and
understanding the context.

Generating Alternative Solutions:

Brainstorm and develop a range of possible solutions or courses of action to address the
identified problem or opportunity.

Encourage creativity and consider different perspectives during this stage.

Evaluating Alternatives:

Assess the pros and cons of each alternative solution against predetermined criteria and
[Link] the potential outcomes, risks, costs, benefits, and feasibility of each
option.

Making a Decision:
Based on the evaluation, select the most suitable solution that aligns with the organization's
goals and [Link] decision might involve a single choice or a combination of
options.

Implementing the Decision:

Develop an action plan that outlines the steps required to put the chosen solution into effect.
Allocate resources, assign responsibilities, and set timelines for implementation.

Monitoring and Evaluation:

Track the implementation progress to ensure that the decision is being executed as
[Link] monitor outcomes and compare them to the expected results.

Feedback and Adjustments:

Based on the monitoring and evaluation, gather feedback about the outcomes and
effectiveness of the decision. If necessary, make adjustments to the implementation
strategy to achieve desired results.

Definitions of Motivation
The word Motivation derives from the Latin word “Movere”. The Latin word “Movere” means
“To move”, “To drive” or “To drive forward” etc. Motivation can be defined as stimulating,
inspiring and inducing the employees to perform to their best capacity. Motivation is a
psychological term which means it cannot be forced on employees. It comes automatically from
inside the employees as it is the willingness to do the work.

Theories of Motivation

A. Maslow’s Need Hierarchy Theory:

This is the most well-known theory of motivation of Abraham Maslow, a clinical psychologist. A
basic assumption of this model is that as we satisfy one type of need, other needs then occupy our
attention. Once we satisfy our need for food, air and shelter, then we can move on to safety needs,
love needs and so on. Although Maslow argued that most people tend to experience these needs in
the order that he described, for some people, the so-called higher-level needs will dominate lower-
level needs. Some people will be so enthralled by a book or a movie that they will forget they are
really hungry. Maslow described the hierarchy of needs as follows:
[Link] needs: These refer to physical or biological needs meant for survival and
maintenance of life. These include food, clothing, shelter, air, sleep and other basic needs.

ii. Safety needs: Once the physiological needs are satisfied a person aspires for safety needs.
These includes security for life, job, protection from environment, animals etc. As a manager, you
can account for the safety needs of your employees by providing the safe and secure working
conditions, proper compensation (such as a salary) and job security, which is especially important
in a bad economy.

iii. Social needs: After the first two needs are satisfied, social needs become important in the
need hierarchy. Since man is a social being , he has a need to belong and to be accepted by various
groups. It includes need for acceptance, need for belonging, need for love, affection, friendship
etc. As a manager, you can account for the social needs of your employees by making sure each
of your employees know one another, encouraging cooperative teamwork, being an accessible and
kind supervisor and promoting a good work-life balance.

iv. Esteem and status needs: these needs are concerned with self-respect, self-confidence, a
feeling of personal worth, feeling of being unique, and recognition. As a manager, you can account
for the esteem needs of your employees by offering praise and recognition when the employee
does well, and offering promotions and additional responsibility to reflect your belief that they are
a valued employee.
v. Self-actualisation needs: Self-actualisation is the need to maximize one’s potential
whatever it may be. These needs arise only after the four categories of need are fulfilled. These
needs are more like mission, lifetime aspiration, e.g., leprosy eradication mission, mission of
Mahatma Gandhi to liberate India from British Rule.

Maslow’s needs theory has received wide recognition, particularly among practicing managers.
This can be attributed to the theory’s intuitive logic and ease of understanding. Following are some
problems which are not solved by this theory:

Importance of Motivation
1. It helps the manager to ignite the will to work amongst the workmen.

2. Good motivation method helps in improving the abilities and capabilities of the employees.

3. It helps in finding out the hidden talents and calibre of the employees.

4. Motivated employees means satisfied employees i.e. satisfied in terms of job as well as their
personal motives.

5. Motivation reduces the chances of industrial unrest, strikes and similar labour problems.

6. Motivation helps to change the negative or indifferent attitudes of employee to positive

attitudes so as to achieve organizational goals.

7. Motivation helps to reduce the employee turnover and thereby saves the cost of new
recruitment and training.

8. Motivation helps in reducing the absenteeism in the organization.

.Herzberg’s Two-Factor Theory Of Motivation-Hygiene

Herzberg’s two-factor theory suggests that job satisfaction is influenced by two factors:
motivators and hygiene factors.

Motivators, like recognition and achievement, lead to higher satisfaction and [Link]
factors, such as salary and working conditions, prevent dissatisfaction but don’t necessarily
motivate. According to Herzberg, both sets of factors are needed to create a productive work
environment.

[Link] Factors

Following are some examples of hygiene factors:

● Interpersonal relationships with employers

● Interpersonal relationships with employees
● Interpersonal relationships with subordinates
● Organizational policies and structure
● Salary
● Work condition
● Personal experiences of individual
● Job role and security
● Personal life

Hygiene factors protect the performance and productivity of employees but do not stimulate
growth in them. As a result, these are also known as 'dissatisfiers'. These factors are derived from
the external environment and conditions, so belong to the category of external factors.

2. Motivational Factors

Motivational factors do have a favourable impact on work satisfaction and frequently lead to a rise
in overall output. Therefore, these factors result in a favourable effect on effectiveness, production,
satisfaction and motivation. Depending on the study, Herzberg claimed that managers have given
hygiene factors much concern, but they haven't been successful in getting the required behaviour
from their workers. So, when it comes to motivating employees, the focus is more on motivational
factors. Following are some examples of motivational factors:
 ● Growth prospects
● Authority and responsibility
● Achievement and acknowledgement
● Advancement
● Promotions
● Recognition

Any improvement in motivational factors will increase satisfaction levels, so these factors are
capable of motivating the employees. Also, motivational factors can actually help to improve the
quality of work. As a result, these are called 'motivators'.