CHAPTER- TWO MANAGEMENT THOUGHTS Defi in ‘ Management is the set of activities (including planning, decision making, organizing, leading and controlling) directed at an organizational resources ( human, financial, physical and information) with the aim of achieving organizational goal in an efficient and effective manner”. -Ricky W. Griffin Process of management _ ¢ y snus é s.swerme * sscsome s.comoune surenson comanvcaron binectins ‘morivaTiON eran Concept of management O Management is the coordination of all resources through the process of planning, organizing, directing and controlling in order to attain the desired objectives. O Management is the art and science of organizing and directing human efforts for accomplishing organizational goals. O Management is the art of getting things done through and with people in formally organized groups. Nature/characteristic/features Goal oriented Universal omy or act rocess Goal focused my e Both art and Group ce activity Distinct Dynamic activity Mutti-diseiplinary innature PLANNINGORGANIZING MONEY LEADING “ABILITY TO INFLUENCE. “ABILITY 0 PERSUADE “ABILITY To MOTIVATE +70 ACCOMPUSHED COMMON ‘GOAL AND OBJECTIVE OF THE ‘ORGANIZATION. ROLE OF MANAGER ~y STAFFING 6 “ACQUIRING “STRAINING . /=MOTIVATIN © CONTROLLING 0 an ‘wor THE PLANNED PERFORMANCE 7 (ORSTANOARO PERFORMANCE ~~ anne oe ER Level and skill of Manager/Management Top tena oer ManagementLEVEL OF MANAGEMENT Q TOP LEVEL MANAGEMENT: 0 Highest authority of management It defines long terms objectives of the organization. 1 It involves CEO, managing director, executive director or general manager. U It develop rules, regulation, working procedures and system of the organization. O It appoints departmental managers and other staff of the organization. Ql LOWER LEVEL MANAGEMENT V Itdetermines very short or day to day objectives of the ‘organization. It prepares day-to day schedule of work for implementation of plan iaid down by middle level management. W It provides necessary resources and instruction to ‘employees to do the work in the best possible way. W Itdistributes responsibilities and duties to the employees Itmaintain close and harmonious relation among all the ‘employees and their performance. |t submit the report of achievement of work to middle level management. It performs the function of channel of communication between middle level management and the operating level employees. 2. Human skills: - It refers the ability to work with, understand and motivate other people individually and group. - They know how to motivate, communicate, lead, inspire and trust subordinates. - Itis concern with understanding people. Q MIDDLE LEVEL MANAGEMENT: (0 This level represents to department heads of the organization I It determines short term objective of the organization. 1 It prepares short term plan for achieving short term, objectives of the organization, 11 It delegates authority and responsibility to the subordinates level managers. 1 It plays the role of mediator between top level management and subordination level management. 1 It makes provision of training, workshop, seminar and other activities for the development of working efficiency of the employees. Managerial skills Technical skill: - It means ability and knowledge in using the equipment, technique and procedures involved in performing the specific task. - These are the first line management level, since they spend much of their time in training subordinates and answering questions on work related problems. ~ Eg: doctors, engineers, musician, production managers need such technical skills. 3. Conceptual skill: - It refers to the mental ability to analyze and diagnose complex situations. - These are necessary to top level management. - These skill helps the manager to conceptualize the environment, to analyze the forces working in a situation and to take a broad farsighted view of the organization. - Italso use creative thinking in solving the problems.NOMREND 10. EMERGING CHALLENGES OF MANAGEMENT GLOBALIZATION DEVELOPMENT OF ENVIRONMENTALISM QUALITY AND PRODUCTIVITY ETHICS AND SOCIAL RESPONSIBILITY WORKFORCE DIVERSITY INNOVATION AND CHANGE EMPOWERMENT OF EMPLOYEES KNOWLEDGE MANAGEMENT TECHNOLOGICAL DEVELOPMENT (MULTI-CULTURAL EFFECTS DEVELOPMENT OF ENVIRONMENTALISM. + Issue of deforestation, global warming and depletion of ozone layer, toxic waste and pollution of land, water and air. + Developing countries-no such issues, + Main stream politician ‘and social activists- environmental banners + Challenges to develop creative way to make profit without harming the environment, ETHICS AND SOCIAL RESPONSIBILITY hics are the personal beliefs- femily, experience, personal value and morals, Vital ethical concern are: how the organization treat employees, how employees treat the organization, how organization treat customer, suppliers, competitors and unions. GLOBALIZATION + Introduction of network in communication, transportation and economic: world together. * Production of goods-world wide + Competition increases * Innovation and adjustable according to changing environment. QUALITY AND PRODUCTIVITY Old concept: increase output by decreasing quality- profit Both are inter-related. Minimizing waste Defect and rework minimize Employee responsible for maintaining quality Quality inspector WORKFORCE DIVERSITY + Dimensions like: age, gender, culture and ethnicity. ‘+ Women involvement. + Advantage: cost of. acquisition, resources, problem solving, ‘creativity and marketing, Disadvantage; sources of conflictINNOVATION AND CHANGE + Innovation in fulfilling the expectation of the stakeholder- customer, suppliers, competitors, Perv! lenders ete. + Improve quality of et product: changing need [Ax go © Rewards systern % entrepreneurship and organizational culture. KNOWLEDGE MANAGEMENT ra + Knowledge has become power. v ‘+ Consumer and society expects new idea, concept, new things, creativity in product and services from an organization, Manager have to collect knowledge and ideas from all the members in the organization, Armodel manager must be flexible to manage knowledge and should consider the situational factors, MULTI-CULTURAL EFFECTS + An innovation in Gommunicationand ransportation system has tie \ + They work together to meet their common and professional objectives, even if they have different traditions, values, social attitudes, igious, beliefs and living standards, + Cross-cultural professionals is increasing. + Managers need to maintain coordination among multi ( cultural professionals. EMPOWERMENT OF EMPLOYEES Tee, P) + Elements: Assets of the ) organization, ‘+ When manager and employee hold same value and have same goals, it become convenient to achieve organizational goals. ‘+ To maintain relationship with ‘manager and employee, itis necessary to delegate decision making authority to employee which is challenging task. + Bcoz of labor union and. political parties. TECHNOLOGICAL DEVELOPMENT + Ever-growing process. + It increases the aspiration and expectation of consumer, investors, competitor, employee and other stakeholders. + It develop the competitive environment among the ‘manufacturers and suppliers. ‘Approaches to management |. Classical perspective 3. Behavioral Science Scientific management. ‘Approaches B. Administrative Need hierarchy theory ‘management Theory X and Y C. Bureaucratic management Two factor theory 2. Human relation agra '5. Contingency approach Fee Perspective theory1. SCIENTIFIC MANAGEMENT * Scientific management is the application of scientific methods of study and analysis to solve managements problems. + This theory is propounded by FW Taylor. (1856-1915) + He is also known as father of scientific management. 1. Development of science for each element of an individuals work + The work assigned to each employee should be observed and analyzed in order to replace the old rule of thumb approach, + This can be developed through scientific investigation. * Development of science for each element of an individuals work requires that decisions should be made on the basis of facts rather than on opinions and beliefs. 3. Close cooperation between management and workers. + The interest of employer and employees should be fully harmonized so as to create a mutually beneficial relationship. + Worker should understand that they cannot perform their work without the existence of management and the management should also understand that it has no identity without the existence of labour. + Maximum prosperity for both cannot be achieved in the absence of cooperation between management and workers. Principles of scientific management 2. Siete 3.Cose selection, cooperation tring and between development of management Menten /Alegualdiision and workers. of workand resporsiity between S.Maximum Syd worters output inplee| 6. Mental fretted revelation output 2. Scientific selection, training and development of workers + The worker should be selected and trained in accordance with the requirements of the job assigned to them. + The physical, mental and other requirements should be specified for each job and worker should be selected and trained to make them fit for the job. + The management should give training to improve their skills and efficiency. 4. Equal division of work and responsibility between management. and workers. * The task and related responsibilty should be clearly divided among management and workers. + Each group should be assigned work, which it can pecform more effectively + The management should decide the time required for doing a particular work, while the responsibility for actually doing the work should be given to workers. + Ifthe time required for doing work is not properly determined, the manager would be accountable and ifthe work has not been performed properly the workers would bbe responsible.5. Maximum output in place of restricted output + This principle is necessary for the prosperity of workers, owners and also to the society at large. + Maximum production ensures more wages to worker because of piece rate system of wages. + It also ensures maximum profit to owners because more volume of production minimize cost per unit of output. * It also helpful to the society as it upgrades the living standard of the people. ADMINISTRATIVE MANAGEMENT + This theory is developed by Henry Fayol (1840-1925) + It tried to develop a comprehensive conceptual framework and general theory of management that are applicable to all the organizations. + Management involves many functions like to forecast and to do plan, to organize, to ‘command, to co-ordinate and to control. ACRONYMS OF 14 PRINCIPLES *DAD- = -U2R-SIS-CO 6. Mental revolution + Mental revolution requires that management should create suitable working environment and resolve all problems scientifically. + Similarly, worker should attend their job with utmost devotion and be careful not to waste resources of the organization. + Instead of fighting for dividing the surplus, the management should co-operate to crease it. 2. ADMINISTRATIVE MANAGEMENT "respons .UNTY OF COMMAND SUNY oF DIRECTION "ZAUTHORTY AND “Both must be equal *Ditfrent ypes of work sputhorty means right to ‘Division of abor “As per sil, nowledge, incoret ete specialization Obey and respect ‘mules, regulation, code of ‘ve order and command esponsibility means ‘obligation to accomplish ‘the expected result ‘There must be the smarty between Indvidal Interest and ‘organizational interest -pitfrence between them may ‘create conflet in achieving the ‘conduct Foie agreements and supervision pacr ( Comme) [_*Mummmover (—tescnanou “Treat all the employee with eas “+Employee should get fair ‘+Flow of information from top justice and equality. ordination ‘remuneration a pr thee authorty to lower leven. “no ducrintnton ordination amon wet paces -nepetim andar ete ae “No expan tthe pce tcie ea ereeed ‘should be avoided. “There should not ‘employees. from top to bottom. ul na ss fronton UNITY OF COMMAND |S: UNITY OF DIRECTION AALINMATIVE: [PERSONNEL “apex oe ap? “One head ne plan “The manager should “More super eds to stented cis Sou coceurage borate tink “Reta odempoyes conto, ayn edo putinon group Tanowhve and ef the bo -itheps developing ly merece Thee shld be one ah -theyshoué been reedom to | | =Sichemplyee mst been ce 5 icon ‘ary out ther lan een hough ry ‘hehe author ater scanty oe mage tome mia oi ‘ompiton of wore ste means ll the authority ‘All the materials and emai to top level equipment must be placed in ‘management. proper order “As perthe role and abilities of sithalp to increare the cffciency ofthe performance the subordinate the authority must be decentralized “for contlng and performing the "work inthe orton Principles of Bureaucratic management 1. Formal rules snd procedures 2. Wel dened 2.Functionl hierarchy of specialization authority 4. Supersio by higher authority S.Techniea competence for a 6.Al decison aaa a shouldbe ‘andprometion —erprsoral recorded BUREAUCRATIC MANAGEMENT + Itis developed a theory of bureaucracy. * Bureaucracy is a form of organization characterized by division of labor, a clearly defined hierarchy, detailed rules and regulations and impersonal relations. + There should be hierarchy of authority involving ‘superior-subordinate relationship and chain of command. + Clear-cut division of work based on competence and. functional specialization. * This theory of Max weber is most common in large organization and government institutions. 1. Formal rules and procedures + In every organization, there must be the system and procedure for the completion of defined work. * All need to follow the rule and procedures in every stage of their activities. + All the level of management must need to follow all the rules and procedures of the organization, no one can break the rules of the organization2.Functional specialization * Work should be divided according to the worker specialization. + Right person should be placed in right job. + Division of labor should be as per skill, knowledge, interest, efficiency and experience of the worker. + Itwill help to achieve the objective in time and in lowest cost. 4. Supervision by a higher authority + In organization the higher level management delegates authority and responsibility to subordinate levels. * The higher authority supervise the subordinates to know the achievement and problems and make a correction during the mistakes, + The higher authority solve the problem faced by the middle and lower level management. 6. All decision should be recorded + Management takes various types of decision in different situations. * Different acts and plans are passed and action are taken in different times. + All those act, decision and actions must be recorded in separate book for future references. * It will help to take valuable decision for future. 3. Well defined hierarchy of authority + There must be well defined scalar chain of authority from top level to the lower level management + The well defined hierarchy of authority from top to button is essential to maintain the unity of direction and in work. + Division of labor with responsibility will bring uniformity and performance of the organization. 5. Technical competence for employment and promotion * The recruitment, selection , appointment and placement of employee are considered on the basis of their technical competence. * Inthe similar manner, efficiency, knowledge, skill and experience are taken into consideration for the promotion of the employees. 7. Interpersonal relation * In organization, the interpersonal relation, among employees should be maintained on the basis of rules and regulation. * Personal relation are not taken into account. + Interpersonal relations are based on positions and not on personalities.2. HUMAN RELATION APPROACH + Hawthorne studies gave rise to a new movement which is known as human relations movement. Researchers started investigating the reasons for human behavior at work. ‘The credit for the development of the human relations approach is given to Elton, mayo. Other individuals who contributed are Maslow and McGregor. HAWTHORNE EXPERIMENT + The Hawthorne plant of western electric company was manufacturing telephone system bell + Itemployed about 30,000 employees at the time of experiments + Although company provided benefits like pension, sickness benefits and other recreational benefits, there \was great deal of dissatisfaction among the workers and productivity was not up to the mark. + In 1924, a team led by Elton mayo(psychologist) and Roethlisberger( sociologist) investigated the real causes behind this phenomenon. + They conducted various researches in 4 phases from (1924-32) + The reason to conducting research is to know the factors that brings fluctuation in workers productivity. Part 1; Illumination experiments * Illumination experiments were conducted to find out how varying levels of amounts of light at the workplace(a physical factor) affected productivity. * Assumption was that higher illumination increases productivity HAWTHORNE EXPERIMENT * For human relations approach, there are many contributors + But the first intensive and systematic analysis of human factor in organizations was made in the form of Hawthorne experiments + Hawthorne studies were conducted by Elton Mayo and Fritz Roethlisberger in the 1920s with the workers at the Hawthorne plant of western electric company. 4 parts of Hawthorne experiments Part 1- illumination experiments(1924-27) Part 2- Relay assembly test room study (1927-29) Part 3- Mass interviewing program(1928-30) Part 4 ~ Bank wiring observation room experiment(1932) Part 1: Illumination experiments Experimental group Control group leepored varying iluminatin) {constant illumination) Change made in illumination _jjymination remained constant Ka As | awl ma Productivity Increased amarte AiPart 1: Illumination experiments + The researchers found that as they increased the illumination in the experimental group, both groups increased production + When the intensity of illumination was decreased, the production continued to increase in both the groups + The production in the experimental group decreased ‘only when the illumination was decreased to the level of moonlight + Thus, it was concluded that illumination did not have any effect on productivity *+ But something else was interfering with the productivity. Part 2: Relay Assembly test room experiments * Different Changes are made: &6 1. Incentive system was changed = + Each girls extra pay was based on tne other 5 rather than output of the large group. + Productivity increase as compared to before PRODUCTIVITY 3. The rest period was reduced to 5 minutes but frequency was increased. - The productivity decreased slightly - The girls complained that frequent rest intervals affected the rhythm of the work. Part 2: Relay Assembly test room experiments + Itwas designed to determine the effect of changes in various job conditions on group productivity. + Researchers set up a relay assembly test room, which involved assembly of telephone relays. + A group of 6 women were selected + The output depended on the speed and continuity with which the women worked. + The experiment started with introducing various changes(duration ranged from 4-6 weeks) 2. Two, 5 minute rests- one in morning session and other in evening session were introduced - Itwas later increased to 10 minutes - The productivity increased 4. The number of rest was reduced to two of 10 minutes each. - But in the morning coffee or soup was served with sandwich, - And in the evening, snack was provided - Productivity increases PRODUCTIVITY5. Changes in working hours and workday were introduced ~ like eliminating Saturday work - Allowing women to leave one hour early from. 5:00 pm to 4:00 pm - Productivity increased PRODUCTIVITY ‘a al Part 3: Mass Interviewing Programme + This experiment was conducted to study the human behavior in the company with about 20,000 employees to determine the employees attitude towards company, supervision, insurance plans, promotion and wages. Part 4: Bank Wiring Observation room Experiments Itwas conducted to analyze the functioning of small {group and its impact on individual behavior. The hypothesis was that in order to earn more, worker would produce more. ‘Also to get the group bonus, they would help each ‘other to produce more. However, this hypothesis did not hold valid Workers decided the target for themselves which was. lower than the company target. ‘The study suggested that informal relationships are an important factors in determining the human behavior. 1 2. 1 ‘As each changes was introduced, absenteeism decreased, morale increased and less supervision was required. Now, the researchers decided to revert back to original position, that is no rest and no benefits. Surprisingly, productivity increased further instead of going down. It was concluded that productivity increased not because of positive changes in physical factors but because of a change in the women attitude towards work and their work group, They developed a feeling of stability and sense of belongingness They develop a sense of respon: y and self discipline, ‘The method was changed from direct interviewing to non-directive interviewing Here, interviewer was asked to listen instead of talking, arguing or advising The interview program gave valuable insights about human behavior in the company like: worker's behavior was influenced by group behavior ‘The position of worker is a reference from which the worker gives meaning to events, features like hours of work, wages etc The social demand of a worker are influenced by social experience in groups both inside and ‘The worker gave restricted output due to the following reasons Fear of Unemployment: If there would be more production per head, some of the workers would be put out of employment 2. Fear of raising the standards: workers thought if they reached the standard sset by management, ‘they would again raise the standard «3. Protection of slower 4, Satisfaction on the part workers: of management: The workers were Management seemed to friendly on and off the accept lower production Job. The faster workers _rate.as no one was fired protected the slower for restricted output. workers by not over producing. System theory (perspective) + Asystem is a set of inter-related and interdependent parts arranged in a manner that produces a unified whole. + Subsystem of an organization can be classified as physical, mechanical, biological and social. + The system is composed of a number of subsystem and all the subsystems are related to each other. + The system theory can be best studied on the basis of input, processing and output component as mentioned in the figure. # INPUT: O An organization gets input from the external environment. C2 Input consists of human, financial, physical and information. ( Competent and experienced personnel, good physical infrastructure, and sufficient capital are essential for achieving organizational goal. Characteristics of human relations approach + Organization is a social system + System is composed of many interacting groups + Many informal groups emerge at a workplace + They have great impact on the behavior of the members * Workers don’t always behave rationally ( emotions, feeling, values play an important role) + Monetary gains alone cannot motivate workers * Workers participation in decision making boosts morale and produc System theory # PROCESSING: C0 Organization are processing units. Oi They convert raw materials into finished products through conversion process. O Sound planning, decision making, good leadership and proper control are essential for processing. system -Approach/Theory pak Festa#OUTPUT: C2 Output is the product of organization. C2 Organization are established to produce goods and services. U Outputs are supplied in the market and response or feedback is received, Q Ifthe organization is able to supply quality goods, the customer will have positive attitude towards the organization and vice versa. 1. GOAL ORIENTED: Every system is purposeful. It is directed towards achieving certain objectives. 2, SUB SYSTEM: the parts or components of a system are called sub system. Each system may be a subsystem of a higher whole making another system. They interact with each other. 3. SYNERGY: synergy means the whole is greater than the sum of its parts. Thus synergic effect, means 242= 5. it means that the performance of the whole is dependent on how well its parts are related and not on how well each part operates. 7. OPEN OR CLOSE SYSTEM There are two types of system: open and closed Closed systems do not interact with the environment and are not influenced by them. They are mostly mechanical and have necessary predetermined activities that must be performed regardless of their environment. Open system constantly interact with the environment. All organizations interact with their environment. It is concern with the transformation of inputs into useful outputs required by the environment. Elements of system theory Goa. ORIENTATION 2. SERGY suasysTem a 2 system eal BOUNDARY a c1ose system 5. Flow 6 FEEDBACK: 4, SYSTEM BOUNDARY: every system has a boundary that separates if from its environment. The boundary determines which parts are internal to the organization and which are external. 5, FLOW: a system has flow of materials, information, money, human and other resources. These enter the system as inputs, undergo transformation process and find out as outputs in the form of products and services. 6. FEEDBACK; the reaction and response to the environment is known as feedback. Itis useful in evaluating and improving the functioning of the system. Hence, feedback is the key to system control. BEHAVIORAL SCIENCE APPROACH + Behavioral science focuses on human behavior in an organization and seeks to promote verifiable propositions for scientific understanding of human behavior in organization. + There are three branches of behavioral sciences: psychological, sociology and anthropology.+ Psychology is the study of individual human behavior. + Sociology is the study of human behavior in group. + Anthropology is the study of physical, biological and cultural influences on human behavior as individuals and members of group. There are different contributors to the behavioral theory : Abraham Maslow - Douglas McGregor - Frederic Herzberg - Mary parker follet etc Need ierarchy theory 1. Physiological needs: - These are the basic needs and are common to all individuals. - These needs include food, water, clothes, shelter, rest and other basic needs. - The fulfillment of such needs is essential for the survival of all human beings. - These needs are lowest level in the hierarchy of needs, GAIT Need hierarchy theory Abraham Maslow + This theory describe that people always have needs, and when one need is relatively fulfilled, other emerge ina predictable sequences. + Human needs tend to follow a basic hierarchical pattern from the most basic needs to the highest level needs. + This theory of motivation is based on some assumption that comprise of: ~ Human needs and motive are complex = Needs from hierarchy = Unsatisfied needs are the reasons of motivation - People seek growth and development. Need hierarchy theory ae een peobteeiesr eet eee 2. Safety needs: ~ When people full thelr basic needs they think about future security = Security nee insecurity, - Safety can be sub-divided into three types: economic security, physical security and social security. + The employees having this level of needs can be motivated by providing job security, provision of provident fund, insurance facility, medical faclity, provision of gratulty or pension et. @Qee ludes protection against threat of job3. Social need: Human beings are the social animals and they want to live in society, They want to enjoy social elements such as love and affection, friendship, sense of belonging, acceptance and membership, ~ Frmanagement does not fulfil the social needs, employee dissatisfaction appears regularly in different forms lke frequent absenteeism, low productivity, stress related behaviors and emotional breakdowns. ~ Management has to develop the feeling of belongingness, team spirit, promotion, authority on the basis of efficiency ee ver Social Needs @> =" a EE 5. Self actualization needs: ‘These needs are related to personal growth, self fulfilment and the realization of one's full potential. Self actualization is the desi to become what one is capable: of becoming. [At this level, an individual seeks challenging work assignments that allow fr creativity and opportunities for personal growth and advancement. Self actualized individuals are creative, independent and have a {g00¢ perception of realty. Management can motivate such employees by provi challenging work with sufficient freedom to take decisions. su PPctalisation Theory X assumptions are: + Employee inherently disike work and attempt, <_ Re: sgn since \ : ‘whenever possible. fi *+ Most workers place securities above all other factors associated with work and will display little ambition, 4, Esteem needs: - There are two types of esteem needs. They are: self esteem and public esteem. - Self esteem is the internal recognition and is. concerned with self respect. - Public esteem is external recognition and is concerned with respect from others. - It is the image in the eye of people like praise, prestige, recognition, power, position etc Douglas McGregor: Theory X and Y « This theory proposed two different views of human beings: V Theory X(Negative) x< vY V Theory Y(positive) + According to him theory Y isa set of optimistic assumption about human nature and Theory X is a set of pessimistic assumption about the worker. Theory Y assumption are: + Work is natural activity ke play or rest. + People will become: committed to organizational ‘objectives they are Fewarded for doing + People will exercise direction and self control it they are committed to. objectives + The average person can learn toaccept and seek responsibilty ‘+ Many people in the general population have imagination nd creativity.Frederick Herzberg: Two Factor theory + This theory is also for work ‘motivation. + This theory is based on the contents of interviews ‘conducted on 200 ‘engineers and accountants, + Herzberg and his associates asked participants to describe job experience that produced good and ‘bad feeling about their job. ‘+ From that research found that there are two sets of needs or factors namely motivating factor ‘and hygiene factors Herzberg’s Two-Factor Theory Le etre — MOTIVATING FACTORS ‘+ Motivating factors are also known as motivators, satisfiers or job content factors. + These factors are job centered and relate directly to the job itself. + The presence of motivating factors causes high levels of motivation and job satisfaction, whereas their absence do not cause high dissatisfaction. * These factors include achievement advancement, work itself, Personal growth, responsi Satisfiers(Motivators) Dissatisfiers Hygiene Factors) {tPeformanceand achievement # satay recognition 4 ering conions saber 4 Thephysia weap 1 Responstity 4 elatoship wth colleagues pert for advancement 4 etaonship with superior 4 Penonalerouth 1 cuaty superior 1 Theworkitet Policies and ues Improving thes factors eto ets eres etna HYGIENE FACTORS also known as dissatisfies or maintenance factors. + These are external to the job itself. * The presence of these factors do not motivate ‘employees but their absence causes dissatisfaction. + When these factors are adequate, people will not be dissatisfied but they will not satisfied either. + Hygiene factors includes company policy and supervision, relationship with supervisor, working conditions , salary, relationship with peers, personal life, relationship with subordinates, job security, status etc. * These factors are necessary to maintain a minimum level of need satisfaction, Contingency perspective * This theory is also called situational or practical approach to management. * It is a relatively new thinking among ‘management scholars. * This approach is based on the premise that there is probably no best way to solve management problems in all organization. * According to this approach, the best way to lead, plan, organize and control managerial activities varies with the situation.+ Aparticular methods suitable in one organization at a time may not necessarily be suitable to another organization at other time. + Hence there is no plan, organization structure and leadership styles or control technique that fit in all situations. + Every organization is unique and management decision and structure must be unique. + There are contingency variables that determine management practice: 3. Environmental uncertainity: The degree of uncertainity caused by political, technoogical, socio-cultural and economic change influences the management process. The best in a stable environment may be totally inappropriate in a rapidly changing and unpredictable environment. 4. Individual differences: Individuals differ in terms of their desire for growth, autonomy and expectation. These and other individual differences are particularly important when managers select motivation techniques, leadership styles and job design conclusion * Manager cannot have ready-made universally applicable and acceptable principles to be applied to all situations as everlasting truth. + All managerial actions will depend upon particular prevailing circumstances and situational factors * It requires managers to have a thorough understanding of the situation and the ways of tackling situations. 1, Organization size: The number of people in the organization is a major influence on what managers do. 2. Routineness of task technology: Organization apply technology to transform inputs into outputs. Routine technologies requires organizational structures, leadership style but it differ from those requires by non-routine technology. Features identified of this theory: = Organization are open system - Itis applicable in intellectual dealings in which habits and customs cannot be taken for granted. It requires knowledge of various sets of situations and tools to work best. ~ Manager are analytical, critical and multidimensional ways. ~ Managers are given more freedom. ~ Managers become more sensitive and alerts.