Unit 5 (P 40): Management control system: concept, element, nature, purpose, benefits

Concept

• Controlling function helps to check the errors and to take the corrective action so that deviation from standards are minimized and stated goals of the organization are achieved in desired manner.
• According to modern concepts, control is a foreseeing action whereas earlier concept of control was used only when errors were detected. Control in management means setting standards, measuring actual performance and taking corrective action. Thus, control comprises these three main activities.
• Control is checking current performance against pre-determined standards contained in the plans, with a view to ensure adequate progress and satisfactory performance.
• Controlling is the measurement and correction of performance in order to make sure that enterprise objectives and the plans devised to attain them are accomplished.

Elements of effective control/requirements for effective control .They are as follows:

1. Suitability: Suitable according to need of the organization.
2. Simplicity: the control system should be simple to operate and understand.
3. Objectivity: Every control system should focus to the objectives and goals of the organizations
4. Economical: the system must be in the financial capabilities of the organization
5. Comprehensive: It must cover all the functional areas of the organization.
6. Capable to communicate: the system should provide regular information and feedback to the management.
7. Suggestive: It must be able to suggest in cases of deviations.
8. Flexibility: It must be able to adjust with the dynamic circumstance to the internal and external environment.
9. Responsibility- based: the system must be responsible to full its duties in stipulated time and accuracy.
10. Strategic: the system must be clear on strategies on how to determine the error, how to measure and how to give feedback.
11. Forward looking: The effective control system should focus on future by quickly identifying the problem.

The four basic elements in a control system  

1. The characteristic or condition to be controlled: The first element is the characteristic or condition of the operating system which is to be measured. We select a specific characteristic because a correlation exists between it and how the system is performing. The characteristic may be the output of the system during any stage of processing or it may be a condition that has resulted from the output of the system.
2. The sensor:  Is a means for measuring the characteristic or condition. The control subsystem must be designed to include a sensory device or method of measurement. In a quality-control system this measurement might be performed by a visual inspection of the product.
3. The comparator: determines the need for correction by comparing what is occurring with what has been planned. Some deviation from plan is usual and expected, but when variations are beyond those considered acceptable, corrective action is required. It is often possible to identify trends in performance and to take action before an unacceptable variation from the norm occurs. This sort of preventative action indicates that good control is being achieved. 
4. The activator: The corrective action taken to return the system to expected output. The actual person, device, or method used to direct corrective inputs into the operating system may take a variety of forms.

As long as a plan is performed within allowable limits, corrective action is not necessary, but this seldom occurs in practice, however. Information is the medium of control, because the flow of sensory data and later the flow of corrective information allow a characteristic or condition of the system to be controlled. 

Nature / characteristics of control

1. Control is a continuous process
2. Control is a management process
3. Control is embedded in each level of organizational hierarchy( pervasive)
4. Control is forward looking
5. Control is closely linked with planning
6. Control is a tool for achieving organizational activities
7. control is an end process

Purpose of control:

The six major purposes of controls are as follows:

1. Controls make plans effective. Managers need to measure progress, offer feedback, and direct their teams if they want to succeed.
2. Controls make sure that organizational activities are consistent. Policies and procedures help ensure that efforts are integrated.
3. Controls make organizations effective. Organizations need controls in place if they want to achieve and accomplish their objectives.
4. Controls make organizations efficient. Efficiency probably depends more on controls than any other management function.
5. Controls provide feedback on project status. Not only do they measure progress, but controls also provide feedback to participants as well. Feedback influences behavior and is an essential ingredient in the control process.
6. Controls aid in decision making. The ultimate purpose of controls is to help managers make better decisions. Controls make managers aware of problems and give them information that is necessary for decision making.

Benefits of control:

1. Improving the quality of goods and services.
2. Standardizing process
3. Efficiently utilizing organizational resources
4. Improving employee accountability

Unit 4 (P 39) Interpersonal and organizational communication: flows, types, barriers, enhancing communication

Types of communication

1. Formal Communication: Communication through officially designated channels of message flow between organization positions. Usually found in organizational charts, policy manuals, or hierarchical structures.
• Downward communication: Communication that flows from upper to lower (such as manager to employer or superior to subordinate).Types of messages: job instructions, job rationales, procedures and practices information, feedback, and indoctrination. Pro- efficient (fast) Con- managerial control
• Upward Communication: Transmission of messages from lower to higher levels of the organization (such as communication initiated by subordinates with their superiors).Types of messages: performance on the job, job related problems, fellow employees and their problems, subordinates perceptions of org policies and practices, tasks and procedures. Pro: promotes morale among all employees Con: not enough superiors encourage subordinate
• Sideward Communication: Flow of messages across functional areas at a given level of an organization (this permits people at the same level to communicate directly).Type of messages: facilitates problem solving, info sharing across different work groups, task coordination between departments and project teams. Pro: Effective Con: Not efficient (time consuming)
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2. Informal Communication: Episodes of interaction that do not reflect officially designated channels of communication. The ‘grapevine’ emerges from social and personal interests of the employees rather than formal requirements of the organization. Informal communications is inherent and even a necessary aspect of organization life. Pro: Creates a relaxed, comfortable climate Con: Should not become a substitute for an ineffective, formal system.
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3. Interpersonal communication: Another facet of communication in the organization is the process of face-to-face or interpersonal communication, between individuals. Such communication may take several forms. Messages may be verbal (that is, expressed in words), or they may not involve words at all but consist of gestures, facial expressions, and certain postures ("body language"). 

• Oral communication: It is process of face to face conversations, group decisions, telephone call etc.  There is immediate feedback and take little time to complete the process. It is mostly used effective form of interpersonal communication.
• Written communication: This form of communication uses formal written materials to communicate. This type of message can be recorded for verification and evidence. It is more time and resource consuming.
• Nonverbal Communication: Nonverbal communication is usually understood as the process of communication through sending and receiving wordless (mostly visual) messages between people. Messages can be communicated through gestures and touch, by body language or posture, by facial expression and eye contact. Nonverbal messages could also be communicated through material exponential; meaning, objects or artifacts (such as clothing, hairstyles or architecture). Speech contains nonverbal elements known as paralanguage, including voice quality, rate, pitch, volume, and speaking style, as well prosodic features such as rhythm, intonation, and stress. Likewise, written texts have nonverbal elements such as handwriting style, spatial arrangement of words, or the physical layout of a page. Nonverbal messages may even stem from silence.

There are many different types of nonverbal communication

1. Facial expressions: The human face is extremely expressive, able to express countless emotions without saying a word. And unlike some forms of nonverbal communication, facial expressions are universal. The facial expressions for happiness, sadness, anger, surprise, fear, and disgust are the same across cultures.
2. Body movements and posture: Consider how your perceptions of people are affected by the way they sit, walk, stand up, or hold their head. The way you move and carry yourself communicates a wealth of information to the world. This type of nonverbal communication includes your posture, bearing, stance, and subtle movements.
3. Gestures: Gestures are woven into the fabric of our daily lives. We wave, point, beckon, and use our hands when we’re arguing or speaking animatedly—expressing ourselves with gestures often without thinking. However, the meaning of gestures can be very different across cultures and regions, so it’s important to be careful to avoid misinterpretation.
4. Eye contact: Since the visual sense is dominant for most people, eye contact is an especially important type of nonverbal communication. The way you look at someone can communicate many things, including interest, affection, hostility, or attraction. Eye contact is also important in maintaining the flow of conversation and for gauging the other person’s response.
5. Touch: We communicate a great deal through touch. Think about the messages given by the following: a firm handshake, a timid tap on the shoulder, a warm bear hug, a reassuring pat on the back, a patronizing pat on the head, or a controlling grip on your arm.
6. Space: Have you ever felt uncomfortable during a conversation because the other person was standing too close and invading your space? We all have a need for physical space, although that need differs depending on the culture, the situation, and the closeness of the relationship. You can use physical space to communicate many different nonverbal messages, including signals of intimacy, aggression, dominance, or affection.
7. Voice: It’s not just what you say, it’s how you say it. When we speak, other people “read” our voices in addition to listening to our words. Things they pay attention to include your timing and pace, how loud you speak, your tone and inflection, and sound that convey understanding, such as “ahh” and “uh-huh.” Think about how tone of voice, for example, can indicate sarcasm, anger, affection, or confidence.

Process of Communication

1. Sender: Communicator who has some ideas, opinions, information to transmit.
2. Encoding: the translation of information through language, sins, picture, or symbols.
3. Message: the encoded idea or information.
4. Medium: It is the pathway for transmission of message i.e. Face to face, telephone, mails, letters, etc.
5. Receiver: Person receiving the message.
6. Decoding: the understanding of the message
7. Feedback: the response of the receiver after receiving and understanding the message.
8. Noise: the disturbance that occurs during the transmission of the message.

Barriers to communication

1. Organizational Barriers:
• Organizational policy
• Organizational Rules and Regulations
• Lengthy Scalar Chain
• One-way communication System
• Lack of Confidence in Subordinate
2. Physical Barriers:
• Physical distance
• Hierarchy structure
• Office design
• Noise
3. Psychological Barriers: lack of interest of the receiver ( psychological factors)
• Distrust of communicator
• Superiority complex
• Individual perception
• Premature Evaluation
• No attention
4. Semantic Barriers: Due to word used for communication.
• Harsh language
• Vague Language
• Misleading Translation
• Technical language
5. Technological Barriers: Due to the use of inefficient techniques.
• Mechanical Barriers
• Loss of transmission
• Information overload
• Insufficient period allowed

Enhancing Effective communication/ Techniques of improving communication

1. Active listening:
2. Utilizing feedback:
3. Regulating information flow:
4. Two- way communication:
5. Simplifying language:
6. Avoid information overload:
7. Create an environment of trust and confidence:
8. Reduce psychological barriers:

Unit 4 (P 38) Interpersonal and organizational communication: Concept, purpose, network,

Concept

• Communication is the activity of conveying information. Communication has been derived from the Latin word "communis", meaning to share.
• Communication is the exchange and flow of information and ideas from one person to another; it involves a sender transmitting an idea, information, or feeling to a receiver.
• Communication is the process in which two or more parties exchange information and share meaning.
• The five vital components of communication are: sender of message, the message itself, receiver of the message, transmission channel, and reception of the message.
• Communication process requires a vast repertoire of skills in intrapersonal and interpersonal processing, listening, observing, speaking, questioning, analyzing, and evaluating.
• “Communication is the process by which  a person, group, or organization (the sender) transmits information (the message) to another person, group, or organization (the receiver)” (in an understandable way and followed by feedback)  (Greenberg and Baron)
• “Communication is both the transference and understanding of meaning.”  (Robbins)
• Research indicates that: Poor communication is probably the most frequently cited source of interpersonal conflict.
• Individual spend 70 percent of their waking hours communicating.
• One of the most inhibiting forces to successful group performance is a lack of effective communication.

Nature /characteristics of communication

1. Minimum two persons: At least two person is required to make communication complete.
2. Two way process: It is a process of sender sending the message and receiver sending feedback.
3. Pervasive function: It is used in all level in organization.
4. Complete and rational process: It helps us to understand what the sender means and what receiver wants to say to the sender.
5. Continuous function: It is carried as long as the organization exists.
6. Oral or written: it may in form of oral or written
7. Formal or informal: it can be formal (based on organization structure)  or informal (based on relationship)
8. Basis of action and coordination: it serves as basis for letting the actions or strategy clear to the employee and maintains coordination between strategies or actions.

Purpose/ Importance of communication:

1. Communication promotes motivation: by informing and clarifying the employees about the task to be done, the manner they are performing the task, and how to improve their performance if it is not up to the mark.
2. Communication is a source of information:  to the organizational members for decision-making process as it helps identifying and assessing alternative course of actions.
3. Communication also plays a crucial role in altering individual’s attitudes: , i.e., a well informed individual will have better attitude than a less-informed individual. Organizational magazines, journals, meetings and various other forms of oral and written communication help in determining employee’s attitudes.
4. Communication also helps in socializing:  In today’s life the only presence of another individual fosters communication. It is also said that one cannot survive without communication.
5. Communication also assists in controlling process:  It helps controlling organizational member’s behavior in various ways.
6. Provide feedback to management: Providing regular, on-going opportunities for employees to provide feedback to management.

Forms/ structure/ network of organizational communication

1. Wheel network: All communication passes through one central person- a manager or a group leader. The middle person plays an important role in gathering and sending information from and to all the members. The members formally do not communicate with each other. It is a form of centralized communication structure. 
2. Chain network: This communication structure follows the formal organization structure and the chain of command. Vertical hierarchy where communication takes place upward and downward the structure. If a person is missing in the communication the whole communication is failed.
3. Circle network: In this structure the members communicates with the other person next to him or her, not with anyone else. Often found in task force or committees
4. All channel networks: this communication permits all the group members to actively communicate with each other. Usually found in informal groups, but can also be used in brain storming or nominal group technique where alternative have to be made.

Short question

Short questions. (Any 10) (10*2=20)
1) What is Organization?
2) What is Management?
3) What is process of management?
4) Who is a manager?
5) What are different levels of manager or management?
6) What are roles of manger?
7) What are different skills required by manger?
8) What is scientific management?
9) What is administrative management?
10) What are different levels of needs stated by Abraham Maslow?
11) What is motivational factor of Herzberg's motivation-hygiene theory?
12) What is Hygiene factor of Herzberg's motivation-hygiene theory?
13) What is system perspective?
14) Mention important element in a system.
15) What is contingency perspective?
16) What is integrating perspectives?
17) What is environment?
18) What are forces of external environment?
19) What are forces of internal environment?
20) What is ethics?
21) What is social Responsibility?
22) What is planning?
23) State steps in planning process.
24) Name different methods of planning.
25) What is Management by objectives?
26) What is Tactical plan?
27) What is operational plan?
28) What is standing plan?
29) What is strategic planning?
30) What is goal?
31) Name different organizational goals?
32) What is decision making?
33) State decision making process.
34) What is SWOT analysis?
35) What are different types of decision?
36) Explain nominal group technique in decision making?
37) What is brain storming?
38) State styles in consultative decision making?
39) How manager makes decision in autocratic decision making style?
40) What are the conditions in which manager makes decisions?
41) What is organizing?
42) Briefly explain any three principles in organizing?
43) Name different approaches to organizing?
44) What is job design?
45) What is job enrichment?
46) What is job enlargement?
47) What is departmentalization?
48) State number of ways in which departmentalization can be done?
49) What is line organization?
50) What is committee organization?
51) What is functional organization?
52) What is matrix organization?
53) What are different situation influencing organizational design?
54) What is informal organization?
55) What is authority and mention its types?
56) What is power and mention different sources of power?
57) What is responsibility?
58) What is delegation of authority?
59) What is decentralization of authority?
60) Define boundary-less organization?
61) What is staffing?
62) State any three components of staffing?
63) Under human resource management system, mention any four processes.
64) Define leadership?
65) Define autocratic leadership.
66) Define democratic leadership.
67) Define Paternalistic leadership.
68) Define Laissez-fair leadership.
69) What are three important elements of Fiedler's contingency Theory?
70) What are two contingency variables of Robert House's path-goal theory?
71) Who is task oriented leader?
72) Who is "people oriented" leader?
73) Who is directive leader?
74) Who is supportive leader?
75) Define team management, in Managerial Grid.
76) Define country club management in Managerial Grid.
77) Define impoverished management in Managerial Grid.
78) State the five stages in work group development.
79) Define the storming stage of work group development.
80) What are two types of formal groups?
81) What is friendship group?
82) What is a team?
83) State three difference between work group and teams.
84) What is a self-managed team?
85) Define virtual team.
86) Describe organizational conflict?
87) What is intra group conflict?
88) What is inter- group conflict?
89) What is inter- personal conflict?
90) What are major sources of conflict?
91) How can conflict be stimulated?
92) How can conflict be prevented?
93) How can conflict be resolved?
94) Describe collaborative approach to conflict resolution?
95) Describe competitive approach to conflict resolution?
96) Describe compromising approach to conflict resolution?
97) Describe the accommodating approach to conflict resolution?
98) What is organizational communication?
99) Explain wheel network of organizational communication?
100) Explain the all channel network of organizational communication?
101) What are the major barriers to organizational communication?
102) Describe non-verbal communication.
103) How can we enhance effective communication in organization?
104) Define motivation.
105) Sate any two techniques for improving employee motivation.
106) What is intrinsic reward?
107) What is extrinsic reward?
108) Define quality of work life.
109) Define controlling.
110) State any three elements of controlling.
111) What is pre-control?
112) What is concurrent control?
113) What is post control?
114) What is MIS?
115) What is DDS?
116) What is quality?
117) State major factor affecting quality.
118) State any three principles of quality management.
119) What is TQM?
120) State different techniques in TQM.
121) What is benchmarking?
122) What is outsourcing?
123) State principles of Deming Management.
124) What is organizational change?
125) What are the forces of change?
126) What is planned change?
127) State some reasons for planned change?
128) What are the targets of organizational change?
129) State individual resistance to change.
130) State organizational resistance to change.
131) State three ways to overcome resistance to change.
132) What is organizational development?
133) Describe appreciative inquiry in organizational development technique.

Case Study: copyright (Anup Shrestha)

The three energetic and freshly passed out MBA graduates from Apex College, who have common characteristics and interest of becoming an entrepreneur, opened an Educational Consultancy "Trinity Education Foundation" in 2010. Among the group members are Jayaman, Ragav and Prabhu. Prabhu has been leading the group as a Director. Jayman as an Operation manager and Ragav as Marketing manger. Seven employees are working in Trinity since then.

The market was flourishing with students (customers) seeking career and educational counseling abroad. The major destination for student was Australia, Canada, United Kingdom, America and Scandinavian countries. Business was booming, with handsome profit till end of 2012 as the regulation were quite simple for student visa and getting offer letter from the University.

Beginning of 2013, was the starting point of the worst part of the business, as many countries now have   regulated the flow of international students, with more strict student visa policy. Consequently, the business started to drop gradually.

In the very time, three partners have different views of what to do next. Jayman wanted to close the business and shift to other lucrative one. Ragav wanted to continue with the same business, hoping that situation will change in future and Prabhu wanted to pull back his partnership share and go abroad.

Conflict in opinion resulted Prubhu frequently remaining absenteeism at the work place. Jayman and Ragav had a dispute in reducing cost by firing some employee. Employees were feeling that the environment in office was no more interesting and motivating.

Case Questions:

1. 'Environment Scanning is important to deal with situation of risk and uncertainty'. What were the major environmental factors affecting Trinity Education Foundation. Do you think that Trinity have properly done the environmental scanning, explain?
2. If you were Prabhu, how would you manage your team?
3. If you were one of the employees working for Trinity what will be your suggestion to improve the situation?

Unit 4 (P 37) Employee Motivation

Motivation

• Motivation is a term that refers to a process that elicits, controls, and sustains certain behaviors.
• Motivation is defined as the process that initiates, guides and maintains goal-oriented behaviors. Motivation is what causes us to act, whether it is getting a glass of water to reduce thirst or reading a book to gain knowledge
• The process that accounts for an individual’s intensity, direction, and persistence of effort toward attaining a goal.
• The key elements in motivation are:
• Intensity: How hard a person tries.
• Direction: toward beneficial goal.
• Persistence: how long a person tries.(Persistence is the ability to maintain action regardless of your feelings. You press on even when you feel like quitting.)
• Dynamic force which sets a person into motion”
• “An inner state that energizes, activates and directs or channels behavior towards goals”

Feature of motivation

•  Component of directing: Motivating is an important component of directing functions of management. It is the responsibility of the managers to motive their subordinated to get all things done. Psychological aspect: Motivation is a psychological aspect of management. It is the internal feeling which arises from the need and desires of a person. Motivation generates from within an individual. It starts and keeps individual at work
• Goals directed: Motivation generates goals-directed behavior. Feeling of need by the persons causes him/her to behave in such a way that he/she tries to satisfy himself. Human needs influence behavior to achieve desired goals.
• Continuous process: Motivation is a continuous process. Where a particular need is satisfaction, a new need is seen. It is the result of an interaction between human needs and the incentives offer to satisfy them.
• Positive or negative: Motivation may b positive or negative. Positive motivation means inspiring people to work better by providing rewards and incentives. Negative motivation means forcing people to work by punishing them.
• Complex and Dynamic process: Motivation is a complex and dynamic process. Individuals differ in their needs and wants. Different individuals work to fulfill their own needs. They satisfy their need in different ways. Moreover, human need change from time to time. Influence Behavior: motivation focus to influence the behavior of the employee to meet the standard level of behavior to be shown at the work place.
• Concentrates on whole individual: Motivation puts effort to change the behavior not only at work place, but person as a whole. 
• Pervasive function: Motivation is carried out by all mangers and in all types of concerns where business activities are carried out. Every manager provides guidance and inspiration to his subordinates.

 Importance of motivation

•  Increased Productivity: When employees are motivated from inside or from outer sources they show passion for their work and give better performance. When they are given a target to achieve they give their best efforts to reach their targets  and complete the given task on or before time. Though they are not promised any monetary compensation on the completion of their targets they are themselves motivated to do their task because they know that the management trust’s their ability to perform and they want to prove it by completing the given task. This attitude of the employees leads to increased productivity which is very beneficial for the company. 
• Improved employee morale: Continuous motivation of employees boosts their morale and they work and perform better. A happy team with a high morale are ready to face any challenge in their job without any issue. They are ready for the most difficult task given to them as there are happy from within and have a high esteem of themselves because of this the company or organization experience less employee conflicts and less absenteeism.
• More loyal staff: A highly motivated employee groups are loyal towards their organization. When they are motivated on a regular basis they know that their employers care for them and want them so they are more loyal to the organization. Employing new staff and training them is very expensive task for any organization so a loyal workforce will reduce this expenditure and the company can concentrate on other important issues. A company with good and loyal workforce will gain good reputation in the market and people would want to associate more with the company.
• Better Creativity: When an employee is highly motivated they feel free to express their views and ideas since they are passionate about their jobs. They know that they are an important part of the organization and want to contribute more towards the betterment of the organization, this makes them more creative. For increasing the creativity amongst the employees, managers have to design a leadership style in such a way that is encourages employees to provide more suggestions, new ideas and new cost effective ways of delivering better performance.
• Individual growth and improvement: A motivated employee is ready to take up more tasks for the company and tries to complete it with best efforts. For this they study and train themselves more, this makes them more experience in their field. By taking and accomplishing more tasks they increase their individual growth and improve their knowledge. They are more likely to be recognized within the organization and also outside the organization. Their chances of appraisal and promotion are also increased.
• Leads to achievement of organizational goals: Motivation helps to achieved organizational goals by, proper utilization of resources, maintaining a co-operative work environment, directing employees in a purposive manner. Goals can be achieved if co-ordination and co-operation takes place simultaneously which can be effectively done through motivation.
• Builds friendly relationship: Motivation is an important factor which brings employees satisfaction. This can be done by keeping into mind and framing an incentive plan for the benefit of the employees. This could initiate by; Monetary and non-monetary incentives, Promotion opportunities for employees, Disincentives for inefficient employees.
• Leads to stability of work force: Stability of workforce is very important from the point of view of reputation and goodwill of a concern. The employees can remain loyal to the enterprise only when they have a feeling of participation in the management. The skills and efficiency of employees will always be of advantage to employees as well as employees. This will lead to a good public image in the market which will attract competent and qualified people into a concern.

Motivational process

• Needs
• Drives
• Incentives

Theories in motivation

• Hierarchy of Needs Theory by Abraham Maslow
• Two-Factor Theory (Frederick Herzberg) (Motivation Hygiene Theory).(Check post no. 11)

Techniques for improving employee motivation

1. Financial incentives: Monetary benefit offered to encourage behavior or actions of employees. A financial incentive motivates actions which otherwise might not occur without the monetary benefit. It is a monetary reward provided for performance above targeted objectives. The scientific / Theory X approach, in particular, argues that workers respond to financial rewards. Getting employee pay right is a crucial task for a business.
2. Participation: the act of sharing in the activities of a group. Sharing of ideas and information motivates employees to look for more creative ideas.
3. Delegation of authority: Delegation of authority is assigning work to subordinates and giving them necessary authority to do the assigned work effectively. Delegation means assigning of certain responsibilities along with the necessary authority by a superior to his subordinate managers
4. Job security: It can be enhance with formal training and development programs.
5. Job enlargement: Job enlargement involves adding extra, similar, tasks to a job. In job enlargement, the job itself remains essentially unchanged.  However, by widening the range of tasks that need to be performed, hopefully the employee will experience less repetition and monotony.
6. With job enlargement, the employee rarely needs to acquire new skills to carry out the additional task.
7. A possible negative effect is that job enlargement can be viewed by employees as a requirement to carry out more work for the same pay!
8. Job Enrichment: Job enrichment attempts to give employees greater responsibility by increasing the range and complexity of tasks they are asked to do and giving them the necessary authority. 
9. Job Rotation: ob rotation involves the movement of employees through a range of jobs in order to increase interest and motivation. .
10. Reinforcement: Reinforcement refers to the consequences of desired behavior. Reinforcement may be either positive or negative, depending on its application.
11. Quality of work life: Extent to which employees can enhance their personal lives through their work environment and job related experiences.
12. Team work and empowering: Empowerment involves giving people greater control over their working lives. Organizing the labour force into teams with a high degree of autonomy can achieve this.

  Reward system to motivate performance

Extrinsic and Intrinsic reward:

1. Extrinsic rewards are money and grades, coercion and threat of punishment. It results to extrinsic motivation. Competition is in general extrinsic because it encourages the performer to win and beat others, not to enjoy the intrinsic rewards of the activity.
2. Intrinsic rewards are: Opportunity for achievement, giving of challenging responsibility, Opportunity for advancement, Opportunity for growth in stature and peer recognition.  It leads into intrinsic motivation. Intrinsic reward is driven by an interest or enjoyment in the task itself, and exists within the individual rather than relying on any external pressure. Intrinsically motivated employees are more likely to engage in the task willingly as well as work to improve their skills, which will increase their capabilities.

 Financial and Non-financial Reward

1. Financial reward or Compensation is a systematic approach to providing monetary value to employees in exchange for work performed. Compensation may achieve several purposes assisting in recruitment, job performance, and job satisfaction
2. Non-financial rewards will help you provide your employees with a sense of achievement and recognition for their high performance, encouraging them to perform even further in the future.

 Essential of effective reward

1. Satisfy needs: Rewards must be according to needs for which the employees are working. Financial incentives are more effective motivators for employee with basic needs, but may be inefficient if the employee have higher needs.
2. Effort- reward relation: Expectancy theory suggest that employees expect that their effort will lead to certain output and rewards. It employees believe that the effort will lead to rewards that satisfy their needs, they will do best to get that reward.
3. Equitable reward: Equity Theory by J. Stacy Adams states Individuals compare their job inputs and outcomes with those of others and then respond to eliminate any inequities. Management must ensure fairness and uniformity in the application of the reward system.
4. Variety of rewards and methods: Management should focus to use multiple combination to financial and non financial rewards and methods as per the need and the expectation of the employee.

 Motivation through employee participation:

Quality of work life:

• Extent to which employees can enhance their personal lives through their work environment and job related experiences.
• It indicates the quality of relationship between employees and the total work environment.  Its main focus is to promote learning and development.
• The Quality of Work life department implements programs and practices that encourage a positive and productive work experience l.
• Quality of work life programmes has two objectives: to enhance the productivity and the satisfaction of employees.
• Quality of Work Life helps employees to feel secure and like they’re being thought of and cared for by the organization in which they work.
• QWL has following essential elements:

• Adequate income and fair compensation
• Safe and healthy working conditions.
• Opportunities of use and develop human capabilities.
• Opportunity for Continued Growth and Security
• Social integration in the work organization
• Right to personal privacy, free speech and equitable treatment
• Work and the Total Life Space

Mechanism through which QWL can be achieved are:

Quality circle:

• Pioneered by Japanese; quality circle is a volunteer group composed of workers , who are trained to identify, analyze and solve work-related problems and present their solutions to management in order to improve the performance of the organization, and motivate and enrich the work of employees.
• Usually the members of a particular team (quality circle) should be from the same work area or who do
• similar work so that the problems they select will be familiar to all of them. In addition, interdepartmental or cross functional quality circles may also be formed.

Employees share ownership:

• Employee share schemes let employees benefit from the business success they're helping to create.
• An employee share ownership plan is the practice of companies giving staff members shares in their company as part of their salary.
• An ESO is a defined contribution employee benefit plan that allows employees to become owners of stock in the company they work for. It is an equity based deferred compensation plan. Under the ESO plan, companies provide their employees the opportunity to acquire the company's shares at a reduced price over a period of time.
• Feeling of ownership will lead to commitment and they will have opportunity in decision making.

Flexible work schedule:

• Flexi time is a variable work schedule. There is typically a core period of the day, when employees are expected to be at work , while the rest of the working day is "flexitime", in which employees can choose when they work, subject to achieving total daily, weekly or monthly hours in the region of what the employer expects, and subject to the necessary work being done.
• A flextime policy allows staff to determine when they will work, while a flexplace policy allows staff to determine where they will work.
• Employers appreciate the boost in productivity and morale while employees reap the benefits of structuring work around their lives instead of the other way around. Flexible work scheduling is a win-win situation.

Self managed work team:

• Self managed team, mean a group of people working together to deliver a project without needing a specific leader or manager to control and direct the group’s activities.
• Team members have greater freedom to complement each other’s skills.
• Team members are interdependent and the role of supervisor is missing.
• The role of manager or supervisor, in the case of a self-directed team, is replaced by all the members of the team. Together, they plan and execute the work, day in and day out, carrying out the directions set by management above them.
• self managed teams as “groups of employees who have the responsibility and authority to manage the work they do.
• The teams are also responsible for handling their interpersonal issues within themselves and work without any direct supervision.
• They are generally composed of 10 to 15 people who take on the responsibilities of their former supervisors. Typically, these responsibilities include:
• Collective control over the pace of work,
• Determination of work assignments,
• Organization of breaks, and
• Collective choice of inspection procedures used.

 Fully self-managed teams select their own members, and the members evaluate each other’s performance. As a result, supervisory positions take on decreased importance and may even be eliminated, see 

Unit 4 (P 36) Managing work Teams: Conflict, types, sources; management strategies and techniques

Organizational conflict:

• Conflict is disagreement between parties. Two or more individuals, groups or organization.
• A conflict is a situation where one party perceives that other party has negatively affected its interests.
• Conflict is a disagreement through which the parties involved perceive a threat to their needs, interests or concerns.

Types of conflict/ conflicts at different level:

1. Intra personal: Interpersonal conflict is the conflict between individuals of the organization.
2. Inter Personal: conflict between the individual and his/ her goals and beliefs.
3. Inter group: Intergroup conflict is the conflict between different groups, teams and departments. When different groups are pitted against each other, this is an example of an intergroup conflict.
4. Intra group: Intra group conflict is the conflict within an internal group, team or department. These are conflicts that typically involve more than one person within a group.
5. Inter organizational: Inter organizational conflict is the conflict that arises across different organizations. When different businesses are competing against one another, this is an example of inter organizational conflict.

Sources of conflict:

• Conflict in goals
• Conflict in ideas
• Conflict in attitudes
• Conflict in behavior:
• Conflict in expectation:
• Poor communication:
• Scarce Resources:

Managing conflict in organization:

• Stimulating conflict:
• Reorganizing:
• Communication:
• Encouraging competition:
• Bring outsiders: Individuals whose backgrounds, values, attitudes, or personalities differ from those of present members.-One benefit of the diversity movement.

• Preventing conflict:
• Super ordinate goal: Super ordinate goals, in psychology, are goals that are achieved by the contribution and co-operation of two or more people, with individual goals that are normally in opposition to each other, working together.
• Reducing interdependence:
• Exchange of personnel:
• Liaison group or integrators:
• Appeal to higher authority:

• Resolving conflict:
• Collaborative: People tending towards a collaborative style try to meet the needs of all people involved. These people can be highly assertive but unlike the competitor, they cooperate effectively and acknowledge that everyone is important. This style is useful when a you need to bring together a variety of viewpoints to get the best solution; when there have been previous conflicts in the group
• Accommodating / smoothing: This style indicates a willingness to meet the needs of others at the expense of the person's own needs. The accommodator often knows when to give in to others, but can be persuaded to surrender a position even when it is not warranted. This person is not assertive but is highly cooperative. Accommodation is appropriate when the issues matter more to the other party, when peace is more valuable than winning, or when you want to be in a position to collect on this "favor" you gave.
• Compromising: People who prefer a compromising style try to find a solution that will at least partially satisfy everyone. Everyone is expected to give up something and the compromiser him- or herself also expects to relinquish something. Compromise is useful when the cost of conflict is higher than the cost of losing ground, when equal strength opponents are at a standstill and when there is a deadline looming.
• Avoidance: People tending towards this style seek to evade the conflict entirely. This style is typified by delegating controversial decisions, accepting default decisions, and not wanting to hurt anyone's feelings. It can be appropriate when victory is impossible, when the controversy is trivial, or when someone else is in a better position to solve the problem. However in many situations this is a weak and ineffective approach to take.
• Competitive: People who tend towards a competitive style take a firm stand, and know what they want. They usually operate from a position of power, drawn from things like position, rank, expertise, or persuasive ability. This style can be useful when there is an emergency and a decision needs to be make fast; when the decision is unpopular; or when defending against someone who is trying to exploit the situation selfishly. However it can leave people feeling bruised, unsatisfied and resentful when used in less urgent situations.