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1. Program Name Single Business Management (Batch-10)

2. Name Ma Aye Hnin Phyo
3. Module Name Management And Organizational Behaviour
4. Assignment No. 2
5. Date 25.08.2017 (Friday)

1(a) Nature of Organizational Behaviour

Organizational Behaviour as a branch of the social science that

seeks to build theories that can be applied to predicting understanding and
controlling behaviour in work organizations”. Organization Behaviour is the
study of application of knowledge about how people act within
organizations. It is a human tool for human benefit. It applies broadly to
the behaviour of people in all types of organizations, such as business,
government, school and service organizations.

Nature and Features of Organizational Behaviour

1. It has assumed the status of a distinct field of study. It is a part of

general management. It represents behavioural approach to management.

2. It contains a body of theory, research, application associated when a

growing concern for in work place. Its study helps in understanding human
behaviour.

3. The study of theories and research experiences of organization facilitates

manager for creative thinking to solve human problems in organizations.

4. This discipline is heavily influenced by several other behavioural sciences

and social sciences like psychology, Sociology and anthropology.

5. It provides rational thinking about people. It concentrates on three level

of behaviour. They are individual behaviour, group behaviour and
organizational behaviour.

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6. O.B. has psychological foundations. The concept like learning,

perception, attitude, motivation is borrowed from psychology, sociology
and anthropology.

7. Organization behaviour is both art and science. It is considered as art

because it contains knowledge about behaviour of individuals. It is
considered as science because it involves application of science.

8. Organization behaviour is dynamic rather than static. It essence is

reflected in change in behaviour of individuals in organization.

9. It attempts to reduce the wasteful activities through economic and

psychological means and thus increasing the effectiveness of the people
and the organization.

1(b) Illustrate the various types of Organizational Structure

One of the decisions that a business owner has to make is what type
of organizational structures their business is going to use. There are four
main types of business structures in the U.S: sole proprietorship,
partnership, limited liability and corporation. Each structure has different
tax, income and liability implications for business owners and their
companies.

Sole Proprietorship – is the simplest organizational structure available

for businesses. According to the Internal Revenue Service, it is the most
common form of business in the U.S Businesses structured as a sole
proprietorship allows the owners to have total control over company
operations. Businesses that typically form sole proprietorships are home-
based businesses shop or retail businesses and one-person consulting
firms. Owners of sole proprietor businesses are responsible for their own
record keeping and paying the IRS in the form of self- employment taxes.
However, this type of business provides no protection no protection for
business owners, as they can be held personally responsible for their

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company. Organizations are set up in specific ways to accomplish different

goals, and the structure of an organization can help or its progress towards
accomplishing these goals. Organizations large and small can achieve
higher sales and other profit by properly matching their needs with the
structure they use to operate. There are three main types of organizational
structure: functional, divisional and matrix structure.

Functional Structure – is set up so that each portion of the organization

is grouped according to its purpose. In this type of organization, for
example, there may be a marketing department, a sales department and a
production department. The functional structure works very well for small
businesses in which each department can rely on the talent and knowledge
of its workers and support itself. However, one of the drawbacks to a
functional structure is that the coordination and communication between
departments can be restricted by the organizational boundaries of having
the various departments working separately.

Divisional Structure – is typically is used in larger companies that operate

in a wide geographic area or that have separate smaller organizations
within the umbrella group to cover different types of products or market
areas. The benefit of this structure is that needs can be met more rapidly
and more specifically; however, communication is inhibited because
employees in different divisions are not working together. Divisional
structure is costly because of its size and scope. Small businesses can use
a divisional structure on a smaller scale, having different offices in different
parts of the city, for example, or assigning different sales teams to handle
different geographic areas.

Matrix – The third main type of organizational structure, called the matrix
structure, is a hybrid of divisional and functional structure. Typically used
in large multinational companies, the matrix structure allows for the
benefits of functional and divisional structures to exist in one organization.
This can create power struggles because most company will have a dual
management a functional manager and a product or divisional manager

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working at the same level and covering some of the same managerial
territory.

Advantages and Disadvantages

•Since Management by objectives (MBO) is a result-oriented process and

focuses on setting and controlling goals, if encourages managers to do
detailed planning.

•Both the manager and the subordinates know what is expected of them
and hence there is no role ambiguity or confusion.

•The managers are required to establish measurable targets and standards

of performance and priorities for these targets. In addition, the
responsibilities and authority of the personnel is clearly established.

•It makes individuals more aware of the company goals. Most often the
subordinates are concerned with their own objectives and the environment
surrounding them. But with MBO, the subordinates feel proud of being
involved in the organizational goals. This improves their morale and
commitment.

•Management by objectives (MBO) often highlights the area in which the

employees need further training, leading to career development.

•The system of periodic evaluation lets the subordinates know how well
they are doing. Since MBO puts strong emphasis on quantifiable objectives,
the measurement and appraisal can be more objective, specific and
equitable.

•It improves communication between management and subordinates.

Disadvantages of Management by Objectives

•MBO can only succeed if it has the complete support of the top
management.

•Management by Objectives (MBO) may be resented by subordinates. They

may be under pressure to get along with the management when setting

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goals and objectives and these goals may be set unrealistically high. This
may lower their morale and they may become suspicious about the
philosophy behind MBO. They may seriously believe that MBO is just
another of the management’s ploys to make the subordinates work harder
and become more dedicated and involved. The emphasis in the MBO system
is on quantifying the goals and objectives. It does not leave any ground for
subjective goals. Some areas are difficult to quantify and even more difficult
to evaluate.

•There is considerable paperwork involved and it takes too much of the

manager’s time. Too many meetings and too many reports add to the
manager’s responsibility and burden. Some managers may resist the
program because of this increased paperwork.

•The emphasis is more on short-term goals. Since the goals are mostly
quantitative in nature, it is difficult to do long-range planning because all
the variables affecting the process of planning cannot be accurately forecast
due to the constantly changing socio-economic and technological
environment which affect the stability of goals.

•Most managers may not be sufficiently skilled in interpersonal interaction

such as coaching and counselling, which is extensively required.

•The integration of MBO system with other systems such as forecasting and
budgeting etc., is very poor. This makes the overall functioning of all
systems mare difficult.

•Group goal achievement is more difficult. When the goals of one

deportment depend on the goals of another department, cohesion is more
difficult to obtain. For example, the production department cannot produce
a set quota if it is not sufficiently supplied with raw materials and personnel.

All of the decision-making occurs at the top levels of management.

This ensures that upper management has complete control over the
organization. It also provides a clear career trajectory for employees, from
junior-level positions, up to the top decision –making positions. A functional

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structure provides stability and efficiency, especially in large and complex

organizations, because everyone uses similar processes. This also allows
large businesses to take advantages of economics of scale. However, this
type of structure can also lead to poor communication between
departments, situations where departments do not work together and
inter-departmental conflicts. Customers may also become frustrated by
lack of cooperation if they have to work with more than one department.
In a divisional structure, divisions are organized geographically or by
product line or marketing area and each division includes people from each
area of the businesses. This disadvantages of this structure is that there
can be a lot of redundant effort and competition between divisions.

2(a) Describe decision Making Process and types of decision

Decision Making is as choosing among alternatives. But not just

a sample act of choosing alternatives because decision making is a
comprehensive process. The decision making process as an eight steps.

There are (1) Identification of the purpose of the decision

(2) Information gathering

(3) Principles for judging the alternatives

(4) Brainstorm and analyse the different choices

(5) Evaluation of alternatives

(6) Select the best alternative

(7) Execute the decision

(8) Evaluate the results

Step 1: Identification of the Purpose of the decision

In this step, the problem is the thoroughly analysed. There are

a couple of question one should ask when it comes to identifying the
purpose of the decision.

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 What exactly is the problem?

 Why the problem should be solved?
 Who are the affected parties of the problem?
 Does the problem have a deadline or a specific time-line?

Step 2: Information gathering

A problem of an organization will have man stakeholders. In

addition, there can be dozens of factors involved and affected by the
problem. In the process of solving the problem, you will have to gather as
much as information related to the factors and stakeholders involved in the
problem. For the process of information gathering, too such as ‘Check
Sheets’ can be effectively used.

Step 3: Principles for judging the alternatives

In this step, the baseline criteria for judging the alternatives

should be set up. When it comes to defining the criteria, organizational
goals as well as the corporate culture should be taken into consideration.

Step 4: Brainstorm and analyse the different choices

For this step, brainstorming to list down all the ideas is the best
option. Before the idea generation step, it is vital to understand the causes
of the problem and prioritization of causes. You can make uses of Cause-
and –Effect diagram help you to identify all possible causes of the problem
and Pareto chart help you to prioritize and identify the cause with highest
effect.

Step 5: Evaluation of Alternatives

Use your judgement principles and decision making criteria to

evaluate each alternative. In this step, experience and effectiveness of the
judgement principles come into play. You need to compare each alternative
for their positives and negatives.

Step 6: Select the Best Alternative

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Once you go through from step 1 to step 5, this step is easy.

In addition, the selection of the best alternative is an informed decision
since you have already followed a methodology to drive and select the best
alternative.

Step 7: Execute the decision

Convert your decision into a plan or a sequence of activities.

Execute your plan by yourself or with the help of subordinates.

Step 8: Evaluate the results

Evaluate the outcome of your decision. See whether there is

anything you should learn and then correct in future decision making. This
is one of the best practices that will improve your decision making skills.

Types of Decision

Various types of decisions are taken by managements. Some of these

are given below:

 Programmed Decision and Non-programmed Decision

 Operational and strategic
 Organizational and personal
 Individual and group
 Developing Alternatives
 Selecting an Alternatives
 Analysing Alternatives
 Evaluating Decision Effectiveness

2. (B) Discuss importance of planning and types of plan

The important of planning cannot be over emphasized for an

organization or even for an individual. From the start of a small
business, to managing a large business, from starting your own
career, to the last stages of your working life, planning will be the
most important too that you use in marketing. Planning helps an

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organization chart a course for the achievement of its goals. The

process begins with reviewing the current operations of the
organization and identifying what needs to be improved
operationally in the upcoming year. From there, planning involves
envisioning the results the organization wants to achieve, and
determining the steps necessary to arrive at the intended
destination--success, whether that is measured in financial terms,
or goals that include being the highest-rated organization in
customer satisfaction.

Efficient Use of Resources

All organizations, large and small, have limited resources. The

planning process provides the information top management needs to
make effective decisions about how to allocate the resources in a way
that will enable the organization to reach its objectives. Productivity is
maximized and resources are not wasted on projects with little chance of
success.

Establishing Goals

Setting goals that challenge everyone in the organization to

strive for better performance is one of the key aspects of the planning
process. Goals must be aggressive, but realistic. Organizations cannot
allow themselves to become too satisfied with how they are currently
doing--or they are likely to lose ground to competitors. The goal setting
process can be a wake-up call for managers that have become
complacent. The other benefit of goal setting comes when forecast results
are compared to actual results. Organizations analyze significant
variances from forecast and take action to remedy situations where
revenues were lower than plan or expenses higher.

Managing Risk and Uncertainty

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Managing risk is essential to an organization’s success. Even the

largest corporations cannot control the economic and competitive
environment around them. Unforeseen events occur that must be dealt
with quickly, before negative financial consequences from these events
become severe. Planning encourages the development of “what-if”
scenarios, where managers attempt to envision possible risk factors and
develop contingency plans to deal with them. The pace of change in
business is rapid, and organizations must be able to rapidly adjust their
strategies to these changing conditions.

Team Building

Planning promotes team building and a spirit of cooperation. When

the plan is completed and communicated to members of the organization,
everyone knows what their responsibilities are, and how other areas of
the organization need their assistance and expertise in order to complete
assigned tasks. They see how their work contributes to the success of the
organization as a whole and can take pride in their contributions. Potential
conflict can be reduced when top management solicits department or
division managers’ input during the goal setting process. Individuals are
less likely to resent budgetary targets when they had a say in their
creation.

Creating Competitive Advantages

Planning helps organizations get a realistic view of their current

strengths and weaknesses relative to major competitors. The
management team sees areas where competitors may be vulnerable and
then crafts marketing strategies to take advantage of these weaknesses.
Observing competitors’ actions can also help organizations identify
opportunities they may have overlooked, such as emerging international
markets or opportunities to market products to completely different
customer groups.

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Types of Plans

The most popular ways to describe organizational plans are by

their breadth (strategic versus operational), time frame (short versus long
term), specificity (specific versus directional), and frequency of use
(single use versus standing). However, keep in mind that these planning
classifications aren’t independent. For instance, short-term and long-term
plans are closely related to strategic and operational ones. And single –
use plans typically are strategic, long term, and directional.

Strategic Versus Operational Plans

Plans that apply to the entire organization, establish the

organization’s overall objectives, and seek to position the organization in
terms of its environment are called strategic plans. Plans that specify the
details of how the overall objectives are to be achieved are called
operational plans.

Short- Term versus Long- Term Plans

The short term covers less than one year. Any time frame past five
year is considered long term. The intermediate term is any period in
between. Managers typically use the same terminology to describe plans
although an organization can designate any time frame it wants. For
clarity, well use short-term plans and long-term plans in our discussions.

Specific versus Directional Plans

Specific plans have clearly defined objectives. There is no ambiguity,

no problem with misunderstandings. For example, a manager who seeks
to increase his or her firm’s sales by 20 percent over a given twelve-
month period might establish specific procedures, budget allocations, and
schedules of activities to reach that objective. These represent specific
plans. They require clarity and a sense of predictability that often doesn’t
exist. When uncertainty is high and management must be flexible in order

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to respond to unexpected changes, then it is preferable to use directional

plans.

2. (c) Advantages and disadvantages of management by Objective

1. Since Management by objectives (MBO) is a result-oriented process

and focuses on setting and controlling goals, if encourages managers to
do detailed planning.

2. Both the manager and the subordinates know what is expected of

them and hence there is no role ambiguity or confusion.

3. The managers are required to establish measurable targets and

standards of performance and priorities for these targets. In addition, the
responsibilities and authority of the personnel is clearly established.

4. It makes individuals more aware of the company goals. Most often the
subordinates are concerned with their own objectives and the
environment surrounding them. But with MBO, the subordinates feel
proud of being involved in the organizational goals. This improves their
morale and commitment.

5. Management by objectives (MBO) often highlights the area in which the

employees need further training, leading to career development.

6. The system of periodic evaluation lets the subordinates know how well
they are doing. Since MBO puts strong emphasis on quantifiable
objectives, the measurement and appraisal can be more objective,
specific and equitable.

7. It improves communication between management and subordinates.

Disadvantages of Management by Objectives

1. MBO can only succeed if it has the complete support of the top
management.

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2. Management by Objectives (MBO) may be resented by subordinates.

They may be under pressure to get along with the management when
setting goals and objectives and these goals may be set unrealistically
high. This may lower their morale and they may become suspicious about
the philosophy behind MBO.

They may seriously believe that MBO is just another of the management’s
ploys to make the subordinates work harder and become more dedicated
and involved. The emphasis in the MBO system is on quantifying the goals
and objectives. It does not leave any ground for subjective goals. Some
areas are difficult to quantify and even more difficult to evaluate.

3. There is considerable paperwork involved and it takes too much of the

manager’s time. Too many meetings and too many reports add to the
manager’s responsibility and burden. Some managers may resist the
program because of this increased paperwork.

4. The emphasis is more on short-term goals. Since the goals are mostly
quantitative in nature, it is difficult to do long-range planning because all
the variables affecting the process of planning cannot be accurately
forecast due to the constantly changing socio-economic and technological
environment which affect the stability of goals.

5. Most managers may not be sufficiently skilled in interpersonal

interaction such as coaching and counseling, which is extensively
required.

6. The integration of MBO system with other systems such as forecasting

and budgeting etc., is very poor. This makes the overall functioning of all
systems mare difficult.

7. Group goal achievement is more difficult. When the goals of one

deportment depend on the goals of another department, cohesion is more
difficult to obtain. For example, the production.

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3. (a) Describe Differences between Manager And Leader.

Leader and manager are not the same. We find the existence of
leadership in unorganized groups also. But manager-ship exists only in
organized and structured groups. A manager is more than a leader. Due
to his/her positional role, a manager has to organize and control the
activities of people towards the accomplishment of objectives. As a
manager, one has to perform all functions of management, but as a
leader one is more related to the directing part, that is, influencing people
to achieve goals. Therefore, leadership is a part of management and not
the whole of management. That is why we often say, ‘all managers are
leader but all leaders are not managers’. Leaders and managers are vary
in their orientation towards goals, conceptions about work, interpersonal
styles. Leadership is different from management, but not for the reason
most people think. Leadership isn’t mystical and mysterious. It has
nothing to do with having Charisma or other exotic personality traits. It’s
not the province of a chosen few. Nor is leadership necessarily better than
management or a replacement for it. Rather, leadership and management
are two distinctive and complementary activities. Both are necessary for
success in an increasingly complex and volatile business environment.
Management functions include planning, organizing, staffing, directing,
and controlling. In order to direct the subordinates, a manager must
motivate, communicate with, supervise, guide, and lead them. Thus, it is
in his/her directing function that a manager becomes responsible for
effectively and successfully leading his/her subordinates. Managing can be
more effective if those who manage also the leaders because leadership
can substantially influence the results. Since a part of the manager’s job
involves getting things done through the efforts of other people, a
manager will be more successful in the job if he/she is also a skilful
leader.

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Following are the important favourable results produced if managers are

also good leaders:

I. The leader guides and directs by eliminating uncertainties regarding

the action to be taken and thus he/she coordinates the individual
efforts so as to make all of them pull in one direction.
II. The leader motivates people and integrates the individual needs
with the needs of the organization.
III. The leader represents the group to the outside world and the
outside world to the group. The group looks upon the leader as its
source of information and satisfaction.

Difference between
Managers and Leaders

Managers
Leaders

 A manager is more than a leader. Hence, management is wider

term. (1) A leader need not be a manager. Leadership is a
narrow term.
 A manager fits well in an organized structure.
(2) A leader may also be in an informal group.
 A manager exercises different functions of management of
management (3) A leader exerts influence on people to
voluntarily achieve

to achieve group goals. Therefore, a manager performs the

functions of group goals. A leader performs only one aspect
of the various

management in a more holistic manner.

Management functions, that is, directing.

 The authority of a manager stems from his/her positional role, that

is, it is (4) A leader earns his/her authority by virtue of his/her

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skills,
delegated from the top management.
Knowledge, and abilities.
 To be successful as a manager, one has to be a good leader.
(5) Leaders need not be managers.

3. (b) Discuss any two management style and describe how these can
impact on organizational behavior.

Two Management style

“Management styles are characteristic ways of making decisions and

relating to subordinates. Managers have to perform many roles in an
organization and how they handle various situations will depend on their
style of management. A management style is an overall method of
leadership used by a manager. Depending on the author, management
styles have been categorized into two main contrasting styles are
autocratic and democratic”.

Each style has its own characteristics:

Autocratic:

An autocratic management style is one where the manager

makes decisions unilaterally, and without regard for even the most
talented and experienced subordinates. As a result, decisions will reflect
the opinions and personality of the manager, project a false image of a
confident, well-managed business, which often hides a chaotic operation.
The skilled and competent subordinates chafe because of limits on
decision-making freedom, or even being able to do their jobs without
constantly seeking permission. The organization stumbles along, and the
autocratic manager limits contact between the staff and board, so only
"good" information is communicated, so it seems like everything is

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running smoothly. Subordinates have no encouragement to make

improvements, are criticized for any initiatives they take, and turnover
among the best subordinates is high.

There are two types of autocratic leaders:

A directive autocrat makes decisions unilaterally and micro-manages

subordinates

A permissive autocrat makes decisions unilaterally, but gives

subordinates latitude in carrying out their work

This style is used, temporarily, in times of crisis where the time for
discussion is unavailable and the managers are responsible to give orders
only. These orders need to be obeyed immediately by the staff so that
further problems are not caused. It is also used in the military and police
forces where instructions are given and need to be taken seriously
without hesitation.

Democratic

In a democratic style, the manager allows the employees to take

part in decision-making: therefore everything is agreed upon by the
majority. The communication is extensive in both directions (from
employees to leaders and vice versa). This style can be particularly useful
when complex decisions need to be made that require a range of
specialist skills: for example, when a new ICT system needs to be put in
place, and the upper management of the business is computer-illiterate.
From the overall business’s point of view, job satisfaction and quality of
work will improve, and participatory contributions from subordinates will
be much higher. However, the decision-making process could be severely
slowed down unless decision processes are streamlined.

Impact on organizational behavior

Organizational behavior originates from basic human behavior. It

elaborates the position of an individual in a society, explains the culture

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and spell out the diversity and innovation. Perception as a strong

independent variable in organizational behavior describes an individual
perceptual predispositions, the effects of different settings on them and
the end product perceived. All it depends upon the environment of an
organization and attitude of an individual. An employee must possess
good learning skills adopted due to change in behavior, attitude,
education, training and experience. Accepting the standards of behavior
by the group, communication patterns and level of conflict within an
organization will exhibit a fine performance on an employee. Empowering
is the framework to work freely and to apply expertise to approach the
goals. The philosophy of empowerment applies when the organization
takes the decision regarding employees and the goals. Organizational
behavior relates directly to employee’s performance in improving the
organizational structure positively. When employees are committed to the
same goal, dedication for the organization increases. the organization
should encourage tolerance in workplace, to promote diversity in work,
leadership roles must be enhanced, creativity in work, dynamics, learning
perceptions etc. a team leader should have the ability to catch out the
intra and inter-personal skills of their employees, the leadership style
should be supportive to enhance the positive communication pattern,
organizational cultural values and good physical environment. It is the
duty of an organization to make their employees productive by positive
human behavior. The organization can provide by team building activities
to their employee’s performance can be diversified by offering bonuses
and incentives at workplace. An organization is always in need to create a
better physical environment to increase the employee’s performance.

3. (c) Discus any two leadership style and suggest suitable leadership
theory for the development of your organization.

Two leadership style

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The good news is, there's no right or wrong leadership style. Just
as golfers know to choose from a combination of clubs to play their best
round of golf, so a seasoned leader knows how to choose the leadership
style that's best suited for a specific situation and the particular people
involved. For example, a democratic leadership style is useful when
seeking input or trying to build consensus on an issue; an affiliative style
is a good choice when it's necessary to intervene in order to mend rifts or
to inspire people who are under stressful circumstances. Two leadership
style are pacesetter style and directive style.

And each style brings its own benefits. There are two styles, however,
which can be problematic and need to be used with caution. Let's look at
these two more closely:

Pacesetter Style

A pacesetter leader is obsessed with getting things done better and

faster. He sets the bar high for himself and for others on the team. He
prides himself on never asking others to do what he wouldn't do himself.
He keeps his eye on the ball at all times, and he doesn't have much time
for all the niceties. He is slow to praise and quick to criticize. He doesn't
trust others to do as good a job as he would, and he's used to rolling up
his sleeves and taking over when things don't move as quickly or as
efficiently as he expects.

On the surface, we admire this highly competent leader. After all, this is
someone whose drive for excellence and speed is formidable. But when
we look behind the curtain, we see that this style comes with many
negative side effects. This style will hurt your business in the long run.
"Many employees feel overwhelmed by the pacesetter’s demands for
excellence, notes, and their morale drops." Guidelines for accomplishing
company goals may be clear in the leader’s head, but he hasn't stated
them clearly. This leader takes for granted that people know what to do

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and even thinks, “If I have to tell you, you’re the wrong person for the
job.”

Directive Style

The coercive style is one of the least desirable leadership styles. This
style is the hallmark of a top-down type of leader who squelches most
new ideas before they even have a chance to be explored. This leader
feels she knows best. Before long, people stop coming to her with new
ideas. Flexibility and initiative are eroded, and people are demotivated.
Some even become resentful and stop trying. As people who work for this
type of leader feel that their sense of responsibility has evaporated.
"Unable to act on their own initiative, they lose their sense of ownership
and feel little accountability for their performance, reports. This is a
surefire way to stop your employees from giving you the best of what
they have to offer. You never know how much your business stands to
lose when you adopt this style.

Self-awareness is the first step toward self-management. Take the

Leadership Styles Inventory

, which will give you a clear picture of which of the six styles you think
you use most often. It will also show you how your employees and
colleagues see you—in other words, how you actually come across vs.
how you intend to come across. Use the information to make any
necessary adjustments.

If you recognize that your leadership style may be leaning toward the
pacesetter or coercive models, these three tips can help guide you in a
better direction:

1. Temper your approach. Both the pacesetter and the directive styles
have their place. For example, when you're dealing with a
turnaround situation that requires swift and authoritative action or
when you're dealing with a crisis, these two styles help you take

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charge. However, every strength taken to the extreme becomes a

liability.
2. Temper these approaches with the other leadership styles as
needed. For instance, know when you need to dip into the affiliative
style by offering a sympathetic ear when things don't go well for
your employees. Let them know that you understand their world.
Take a personal interest in people's lives, by asking about their
families, remembering their spouse and children's names, and
celebrating their birthdays. These are all simple things that add a
human touch in our relationships with others.

2. Eliminate fear. One of the hallmarks of a coercive boss is the use of

implied or explicit threats to make employees acquiesce. A recent survey

done in the UK by development consulting firm Head Heart + Brain, for

example, shows that 47 percent of employees feel threatened by their
boss. Threatening people may work to make them compliant, but in the
long run, it makes companies less productive as everyone is spending
more time in self-protective activities than in helping the company
achieve results. Threat engenders fear, and fear cripples people's efforts.

There are many ways to do this: Allow employees to openly express their
concerns. Give them opportunities to challenge the status quo. Make it
safe for people to test new ideas without being afraid of retribution if they
fail. Replace blame with lessons learned—when something goes wrong,
use it as a learning opportunity rather than going on a hunt for the
culprit. Insist that all your leaders be approachable by anyone in the
company. Hold fewer meetings behind closed doors.

4. (a) Briefly discuss importance of employees’ motivation and job

satisfaction.

When looked upon the first time, the link between employee
motivation and performance seems to be quite obvious. That’s because
every time when we deem a task to be important and valuable to us, we

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act with a high level of dedication and enthusiasm to its completion.

However, the relationship between these two things is in fact a lot more
complex. Realistically speaking, the duties we have at work can be most
of the time tedious, repetitive and quite boring. Most of us don’t go to
work excited that we’re going to have another day in which we’ll respond
to dozens of emails, complete a pile of Excel spreadsheets, or other tasks
which fall into the dullness category.

With that in mind, managers need to find creative ways in which to

consistently keep their employees motivated as much as possible.
Motivation is highly important for every company due to the benefits that
it’s able to bring. Such benefits include:

Human Capital Management – a company can achieve its full

potential only by making use of all the financial, physical, and human
resources that it has. It is through these resources that the employees
get motivated to accomplish their duties. This way, the enterprise begins
to glisten as everyone is doing their best to fulfill their tasks.

Meeting Personal Goals Help an Employee Stay Motivated and Feel

About Themselves to Continue to Produce – Motivation can facilitate a
worker reaching his/her personal goals, and can facilitate the self-
development of an individual. Once that worker meets some initial goals,
they realize the clear link between effort and results, which will further
motivate them to continue at a high level. This relates closely to…

Greater Employee Satisfaction – Worker satisfaction is important for

every company, as this one factor can lead towards progress or regress.
In the absence of an incentive plan, employees will not fill ready to fulfill
their objectives. Thus, managers should seek to empower them through
promotion opportunities, monetary and non-monetary rewards, or
disincentives in case of inefficient employees.

Raising Employee Efficiency– An employee’s efficiency level is not

strictly related to his abilities and qualifications. In order to get the very

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best results, an employee needs to have a perfect balance between ability

and willingness. Such balance can lead to an increase of productivity,
lower operational costs, and an overall improvement in efficiency, and can
be achieved only through motivation.

A Higher Chance of Meeting the Company’s Goals – Any enterprise has

its goals, which can be achieved only when the following factors are met:

– There is a proper resource management

– The work environment is a cooperative one

– All employees are directed by their objectives

– Goals can be reached if cooperation and coordination are fulfilled at

once through motivation

Better Team Harmony – A proper work environment focused on

cooperative relationships is highly important for an organization’s success.
Not only that it can bring stability and profits, but employees will also
adapt more easy to changes, fact which is ultimately in the company’s
benefit.

Workforce Stability – Stability of the personnel is highly important from a

business point of view. The staff will stay loyal to the enterprise only they
meet a sense of participation within the management side. The abilities
and potency of staff can be used in their own advantage, but also in the
benefit of the company. This may cause an honest public image within the
market which can attract competent and qualified individuals into the
business.

With all that said, it’s important also to point out that motivation is an
interior feeling which should target both the manager and the team
members, as they can interact and feed off each other, motivationally
speaking. Needs, wishes and desires are interrelated, representing the
thrust to act. These wants should be understood by the manager and
he/she should formulate and frequently update comprehensive motivation

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strategies. If you wish to inspire your personnel, then you need to provide
an environment that exudes positive energy. Ensure that all your workers
feel that they are an integral contributor to the overall team success.
Keep your workplace doors open and keep yourself approachable, and
encourage all of your managers to try and be constant. The additional
positive of the surroundings, the additional empowering and greater
employees’ productivity are the basic elements that will get your business
to the top. This is why employee motivation is so important. Related
information is available on employee training software page. Enjoy your
readings.

Job Satisfaction

Job satisfaction or employee satisfaction has been defined in many

different ways. Some believe it is simply how content an individual is with
his or her job, in other words, whether or not they like the job or
individual aspects or facets of jobs, such as nature of work or supervision.

•Others believe it is not as simplistic as this definition suggests and

instead that multidimensional psychological responses to one's job are
involved.

•Researchers have also noted that job satisfaction measures vary in the
extent to which they measure feelings about the job (affective job
satisfaction).

•Cognitions about the job (cognitive job satisfaction).

•The concept of job satisfaction has been developed in many ways by

many different researchers and practitioners. One of the most widely used
definitions in organizational who defines job satisfaction as "a pleasurable
or positive emotional state resulting from the appraisal of one's job or job
experiences"

•Others have defined it as simply how content an individual is with his or

her job; whether he or she likes the job or not.

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•It is assessed at both the global level (whether or not the individual is
satisfied with the job overall), or at the facet level (whether or not the
individual is satisfied with different aspects of the job)Appreciation,
Communication, Coworkers, Fringe benefits, Job conditions, Nature of the
work, Organization, Personal growth, Policies and procedures, Promotion
opportunities, Recognition, Security, and Supervision. A more recent
definition of the concept of job satisfaction, who have noted that job
satisfaction includes multidimensional psychological responses to an
individual's job, and that these personal responses have cognitive
(evaluative), affective (or emotional), and behavioral components. Job
satisfaction scales vary in the extent to which they assess the affective
feelings about the job or the cognitive assessment of the job. Affective
job satisfaction is a subjective construct representing an emotional feeling
individuals have about their job.

Job satisfaction can also be seen within the broader context of the range
of issues which affect an individual's experience of work, or their quality
of working life. Job satisfaction can be understood in terms of its
relationships with other key factors, such as general well-being, stress at
work, control at work, home-work interface, and working conditions. A
study title "Analysis of Factors Affecting Job Satisfaction of the Employees
in Public and Private Sector", in India concluded that in India Employees
tend to love their job if they get what they believe is an important
attribute of a good job. Weightage factor of each such attribute based on
exhaustive survey has been calculated. Region, sector and gender wise
study of job satisfaction has provided consistent picture with respect to
distribution of data set analyzed showed that most of the employees in
Indian industry are not satisfied with their job except for a few like male
in commerce sector and female in education sector. Total job satisfaction
level of males is found to be higher than that of woman. Total job
satisfaction level in manufacturing sector is found to be very low.

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4.(b) Discuss how effective control can improve organizational

performance.

Prominent Organizational Performance Improvement Models

The following descriptions are general and brief. Follow the link to get
more information about each of the approaches. There certainly are other
approaches than those listed below for a planned, comprehensive
approach to increasing organizational performance. It may very well be
that the vast majority of approaches used in organizations are highly
customized to the nature of the organizations, and therefore not
publicized or formalized in management literature.

Balanced Scorecard: Focuses on four indicators, including customer

perspective, internal-business processes, learning and growth and
financials, to monitor progress toward organization's strategic goals

Benchmarking: Using standard measurements in a service or industry for

comparison to other organizations in order to gain perspective on
organizational performance. For example, there are emerging standard
benchmarks for universities, hospitals, etc. In and of itself, this is not an
overall comprehensive process assured to improve performance, rather
the results from benchmark comparisons can be used in more overall
processes. Benchmarking is often perceived as a quality initiative.

Business Process Reengineering: Aims to increase performance by

radically re-designing the organization's structures and processes,
including by starting over from the ground up.

Continuous Improvement: Focuses on improving customer satisfaction

through continuous and incremental improvements to processes,
including by removing unnecessary activities and variations. Continuous
improvement is often perceived as a quality initiative.

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Cultural Change: Cultural change is a form of organizational

transformation, that is, radical and fundamental form of change. Cultural
change involves changing the basic values, norms, beliefs, etc., among
members of the organization.

Knowledge Management: Focuses on collection and management of

critical knowledge in an organization to increase its capacity for achieving
results. Knowledge management often includes extensive use of computer
technology. In and of itself, this is not an overall comprehensive process
assured to improve performance. Its effectiveness toward reaching overall
results for the organization depends on how well the enhanced, critical
knowledge is applied in the organization.

Learning Organization: Focuses on enhancing organizations systems

(including people) to increase an organization's capacity for performance.
Includes extensive use of principles of systems theory. In and of itself,
this is not an overall comprehensive process assured to improve
performance. Its effectiveness toward reaching overall results for the
organization depends on how well the enhanced ability to learn is applied
in the organization.

Management by Objectives (MBO): Aims to align goals and subordinate

objectives throughout the organization. Ideally, employees get strong
input to identifying their objectives, time lines for completion, etc.
Includes ongoing tracking and feedback in process to reach objectives.
MBO's are often perceived as a form of planning.

Outcome-Based Evaluation (particularly for nonprofits): Outcomes-based

evaluation is increasingly used, particularly by nonprofit organizations, to
assess the impact of their services and products on their target
communities. The process includes identifying preferred outcomes to
accomplish with a certain target market, associate indicators as measures

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for each of those outcomes and then carry out the measures to assess the
extent of outcomes reached.

Program Evaluation: Program evaluation is used for a wide variety of

applications, e.g., to increase efficiencies of program processes and
thereby cut costs, to assess if program goals were reached or not, to
quality programs for accreditation, etc.

Strategic Planning: Organization-wide process to identify strategic

direction, including vision, mission, values and overall goals. Direction is
pursued by implementing associated action plans, including multi-level
goals, objectives, time lines and responsibilities. Strategic planning is, of
course, a form of planning.

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