Sunday, December 5, 2010

OUTLINE NO: 06: CONTROLLING

The system & process of controlling

o Cost standards
o Capital standards
o Revenue standards
o Program standards
o Intangible standards
o Goals as standards

Strategic plans as control points for strategic control.



Types of budgets
Effective budgetary control
Dangers in budgeting
Methods for decreasing dangers

o Statistical data
o Special reports and analysis
o Operational audit

 Personal observation

Controlling: THE SYSTEM &PROCESS OF CONTROLLING

DEFINATIONS
There are many definitions of controlling.
1. Controlling is the process of determining what is being accomplished.
2. Controlling is evaluating the performance and if necessary applying corrective
measures so that the performance takes place according to plans.
3. Controlling is measurement and correction of performance in order to make
sure that enterprise objectives and the plane advised to attain then are being
accomplish.
4. Controlling is looking behind planning bears a close relationship to
controlling.
5. Effective controlling assists to regulate actual performance to assure that it
takes place as planned.
6. Controlling exists at every management level from president to supervisor of a
company
Control is the process through which managers assure that actual activities conform to
planned activities.
ACCORDING TO BREACH
"Control is checking current performance against predetermined standards contained
in the plans, with a view to ensuring adequate progress and satisfactory performance."
ACCORDING TO GEORGE R TERRY –
"Controlling is determining what is being accomplished i.e., evaluating the
performance and if necessary, applying corrective measures so that the performance
takes place according to plans."
ACCORDING TO BILLY E GOETZ
"Management control seeks to compel events to conform plans".
ACCORDING TO ROBERT N ANTHONY –
"Management control is the process by which managers assure that resources are
obtained and used effectively and efficiently."
IN THE WORDS OF KOONTZ AND O'DONNELL
"Managerial control implies measurement of
accomplishment against the standard and the correction of deviations to assure
attainment of objectives according to plans."
IN THE WORDS OF HAYNES AND MASSIE
"Fundamentally, control is any process that guides activity towards some
predetermined goal. The essence of the concept is in determining whether the activity
is achieving the desired results”.
IN THE WORDS OF HENRY FAYOL
"Control consists in verifying whether everything occurs in conformity with the plan
adopted, the instructions issued and the principles established. Its object is to find out
the weakness and errors in order to rectify them and prevent recurrence. It operates on
everything, i.e., things, people and actions".
From the above definitions it is clear that the managerial function of control consists
in a comparison of the actual performance with the planned performance with the
object of discovering whether all is going on well according to plans and if not why.
Remedial action arising from a study of deviations of the actual performance with the
standard or planned performance will serve to correct the plans and make suitable
changes. Controlling is the nature of follow-up to the other three fundamental
functions of management. There can, in fact, be not controlling without previous
planning, organizing and directing.
Controlling cannot take place in a vacuum.

Controlling: THE BASIC CONTROL PROCESS

THE BASIC CONTROL PROCESS
Reviewed by Hammad Naziron Apr 01 2013
Rating: 5
The basic control process involves three steps.
1. Establishing standards.
2. Measuring performance against these standards.
3. Correcting variations from standard and plans / correction of deviations.
1. ESTABLISHING STANDARD
Standards are by definition is simply criteria of performance. Standards are the
selected points in a planning performance at which performance is measured, so that
managers can receive signals about how things are going.
There are many kinds of standard.
(1)Physical Standard (2) cost Standard (3) capital Standard (4)
revenue Standard (5) program Standard (6) intangible Standard (7) goals/ objectives
Standard (8) Strategic plans as control point strategic control.
2. MEASUREMENT OF PERFORMANCE
It is the second step of control process. Although such measurement is not always
predictable, but if standard are appropriately drown and if means are available for
determining exactly what subordinates are doing then measurement of performance is
fairly easy. But there are many activities for which it is difficult to develop accurate
standards and there are many activities that are hard to measure. Technical kind of
work is hard to measure performance.
3. CORRECTION OF DEVIATIONSS
It is third and last step of control process. If performance is measured accurately, t is
easier to correct deviations manage know exactly where the corrective measure
measure must be applied correction of deviations is the point at which contact can be
related to the other managerial factions. Managers may correct deviations by
redrawing their plans or by modifying their goals or they may correct deviations by
clarification of duties.

CRICTICAL CONTREL POINTS & STANDARDS

Standards are yardsticks against which expected performance is measured. In simple
operation a manager may control through careful observations. But, in most
operations this is not possible because of the complexity of the operations. Manager
must choose points for special attention and then watch them to be sure that the whole
operation is proceeding as planned.
The points selected for control should be critical. With such standards,
manager can handle a large group of subordinates and plans are working out the
principle or critical. Points control states “effective control requires attention to these
factors critical to evaluating performance against plans.
QUESTION OF SELECTED CRITICAL POINT OF CONTROL
In selection of critical control points, manager must ask themselves such questions.
1- What will best reflect the goals of my department?
2- What will best show me when these goals are not being met?
3- What will best measure critical deviation?
4- What will tell me who is responsible for any failure?
5- What standard will cost the least?
6- For what standards is information economically-available?
TYPES OF CRITICAL POINT STANDARDS
There are many types of standards
1- PHYSICAL STANDARDS
Physical standards are non monetary measurements and common at operating level
where material is used, labor is employed, services are rendered and goods- are
produce-they may-reflect quantities such as labor hours per unit of output, unit of
production per machine hour etc. physical standards may also reflect quality such as
hardness of bearing, durability of fabric, fastness of color etc.
2- COST STANDARDS
Cost standards are monetary measurements and common at the operating level. Cost
standards are widely used to measure direct and indirect costs per unit produced,
labor cost per unit or per hour material cost per unit, machine cost per hour etc.
3- CAPITAL STANDARDS
There are varieties of capital standards. These standards are primarily related to the
balance sheet rather than to the income statements. Capital standards range from
monetary measurements to physical items. These standards may be indifferent ratios
such as the ratio of current assets to current liabilities etc.
REVENUE STANDARDS
Revenue standards arise from attaching monetary values to sales. They may include
such standards as average sales per customer etc.
PROGRAME STANDARDS
Such standards are determined for installing a variable budget program, for example
program for improving the quality of a sale fore.
INTANGIBLE STANDARDS
Sometime it is difficult to establish standards for quantitative and qualitative
measurement, especially when human relationships count in performance. It is very
difficult to measure human attitudes, in connection with individual’s loyalty,
efficiency, etc. All this need to be based on intangible standards.
GOALS AS STANDARDS
Goal can be used as performance standards. Both in simple in complex operations
quantitative and qualitative Goals represents an important development in the area of
standards.

CONTROL AS A FEED BACK and Feed forward control SYSTEM

CONTROL AS A FEED BACK and Feed forward control SYSTEM
Reviewed by Hammad Naziron Apr 01 2013
Rating: 5
CONTROL AS A FEED BACK SYSTEM
Many systems control themselves through information feedback, which shows
deviations from standards. A simple feedback system can be shown by figure.

Any attempt to control without plan is meaningless. Plans furnish the standards of
control. Information feedback is like the house thermostat when the house
temperature falls below the preset level, an electric message is sent to the heating
system, which is then activated. When the temperature increases and reaches the (setlevel)
another message shuts off the heater. This continual measurement and training
on and off the heater keeps the house at the desired temperature. A similar process
activates the air-exceed the preset level, the air conditioning system cool the house to the desired temperature. Like wise, in human being body, a number of feedback
systems control temperature, blood pressure and another conditions.
Management control as a feedback system is similar to the system of feedback in
house thermostat. This can be shown by diagram.

CONTROL AS FEEDBACK SYSTEM
This system places control in more complex way. These systems including steps,
establishing standards, measuring performance and correcting for deviations.
Managers do measure performance, establish standards and identify deviations, they
must then to make the necessary corrective action.
REAL TIME INFORMATION & CONTROL

FEEDBACK FORWARD CONTROL
Feed forward control is system that attempts to identify future deviations. This
control shows the deficiency of historical data. For example one of the difficulties
with such historical data is that they tell business managers is November that they lost
money in October or even September because of some thing that was don in July. At
this late time such information is only a interesting historical fact. Feed forward
control is manager have been so dependent for purposes of control on accounting and
statistical data.

CONTROL TECHNIQUES: THE BUDGET

CONTROL TECHNIQUES: THE BUDGET
Reviewed by Hammad Naziron Apr 01 2013
Rating: 5
THE BUDGET
A widely used device for managerial control is the budget. Budgeting is the device
for accomplishing control.
THE CONCEPT OF BUDGETING
Budgeting is the formulation of plans for a given future period in numerical terms.
THE PURPSE OF BUDGETING
Starting plans in terms of numbers and breaking into parts parallel the parts of an
organization. Budgets enables managers to see clearly what capital will be spent by
whom and where, and what expense, revenue the plans will involve. A budget must
reflect the organizational pattern. When plans are completed, co-coordinated and
developed a departmental budget can be used as an instrument of control.
TYPES OF BUDGETS
Budgets may be classified in to several basic types
1. REVENUE AND EXPENSE BUDGETS
Revenue and expense budgets are most common budget which are used to make plans
for revenue and expenses in dollar terms.
2. TIME , SPACE , MATERIAL &PRODUCT BUDGETS
Many budgets are better expressed in quantities rather then in numerical terms or
monetary terms. Although such budgets are usually translated into monitory terms but
if they are expressed in terms of quantities, they are must significant at certain stage
of planning and control. I.e. machine hours, etc.
3. CAPITAL EXPENDITURE BUDGETS
Capital expenditure budgets shows capital expenditure for plant, machinery,
equipment, inventories etc.
4. CASH BUDGETS
The cash budget is a fore cast of cash receipts. Cash budgeting shows the availability
of excess cash etc.
EFFECTIVE BUDGETARY CONTROL
If budgetary controls are to work well managers have limitations and they must be
tailored to each job. There are many effective budgetary controls.
1. TOP-MANAGEMENT SUPPORT
To make most effective budget, administration must receive the whole hearted
support of top-management.
2. PARTICIPATION
Real participation in budget making is necessary for success.
3. STANDARDS
One of the key to successful budgeting is to develop and make available standards by
which programs and work can be translated in to need for labor, operating expenses ,
capital expenditures , space and other resources. Many budgets fail for lake of such
standards.
4. INFORMATIONS
Finally if budgetary control is to work managers need ready information about actual
and forecast performance under budgets by their departments. This information must
be designed to show them how well thy are doing.
DANGERS IN BUDGETING
Budgets are used for planning and control. Unfortunately, some budgetary control
programs are so complete and detailed that they must become meaningless and
expensive.
There are many dangers in budgeting.
1. Over budgeting.
2. Hiding influences.
3. Causing inflexibility.
4. Overriding enterprise goals.
METHODS FOR DECREASING DANGERS
1. VARIABLE BUDGETS
Because dangers arise from inflexibility in budgets so these dangers can e decrease by
variable or flexible budgeting?
2. ALTERNATIVE AND SUPLEMENTARY BUDGETS
Another method of obtaining variable budgeting is to establish alternative budgets
and variable budgets can also be obtained by supplementary budgets.
3. ZERO BASE BUDGETING
Another method to obtained budget flexibility is zero- base budgeting.

TRADITIONAL NON BUDGETORY CONTROL TECHNIQUES

TRADITIONAL NON BUDGETORY CONTROL TECHNIQUES
Reviewed by Hammad Naziron Apr 01 2013
Rating: 5
There are also many traditional non-budgetary control techniques used for budgetary
control. The more important are
1. STATISTICAL DATA
Statistical analysis of an operation and the clear presentation of statistical data
(historical forecast nature) are important to control. Most managers understand
statistical data best when the data are presented in chart or graphic form. In chart or
graphic trends and relationship are easier to see. Moreover, if data are meaningful,
when presented on chart then data should be formulated in such a way that
comparison with some standard can be made. What is the significance of a 3 or 10
percent rise or fall in sales or costs? Who is responsible clear presentation of
statistical data in chart in an art that requires imagination?
Moreover, since no manager can do anything about history so the data, presented an
charts should be made available about information like variations due to accounting adjustment and other periodic difference.
SPECIAL REPORTS AND ANALYSIS
Special reports and analyses help in problems for control purposes.Althouh
accounting and statistical reports gives necessary information’s but there are some
problems in which they are inadequate. One successful manager of a completed
operation hired a small staff of trained analysts and gives them no assignment other
then investigating and analyzing activities under his control. This group developed of
a surprising sense for situations in which things did not seem just right. Almost
invariable, their investigation disclosed opportunities for cost improvement.
OPERATIONAL AUDIT
Another effective tool of managerial control is the internal audit or operational audit.
Operational auditing is the regular and independent appraisal of the accounting,
financial and other operations of an enterprise by a staff of internal auditors. The
operational auditors reflect the fact, appraise polices procedure, use of authority,
quality of management, effectiveness of methods, special problems and other phases
of operations.
PERSONAL OBSERVATION
One should never over-look the importance of control through personal
observation.Budgets, charts, reports, ratios, auditors, recommendations and other
devices are essential to control. But the manager who depends wholly on these
devices and sit cannot make effective control. Managers should have task of seeing
the enterprise objectives are accomplished by people. A manager can get information
and experience from personal observation.

TIME-EVENT NET WORK ANALYSIS

DEFINITION
Time- event network analysis is a planning & control technique. It is also called
(PERT). Performance, evaluation and review technique.
EXPLANATION
What is PERT?
P- Program
E- Evaluation
R- Review
T- Techniques
PERT is a planning and control technique through which we evaluate a program and
courses of implementation and on the basic of that evaluation we review over
program.
In this time event analysis introduced in PERT from and then introduced further two
more techniques.
First is Gantt chart
Second Milestone budgeting.

OUTLINE NO 05: LEADING

OUTLINE:
o Power
o Fundamental understanding of people
o Ability to inspire followers
o The ability to act in manner


o Participation
o Quality of working life

o Mcgor Gor’s theory X and theory Y
o Clarification of theories

o Physical needs
o Security or safety needs
o Affiliation or acceptance needs
o Esteem needs
o Needs for self-actualization

o Frederick Herzberg theory of motivation
o Comparison of Maslow’s & Herzberg’s theories of motivation

LEADING/ DEFINING LEADERSHIP

LEADING
Leading is the process of influence people so that they will contribute to organization
and group goals.
DEFINING LEADERSHIP
Leadership has different meanings by different authors.
Leadership is influence. Leadership is the art or process of influencing people so that
they will contribute willingly. And whole hardly toward the achievement of group
goals. Ideally. People should be encouraged to develop not only zeal and confidence.
Zeal is intensity in the execution of works; Confidence reflects experience and
technical ability. Leaders help a group to attain objectives through the maximum
application of its capabilities. They do not stand behind a group but they inspire the
group to accomplish organizational goals. A good example is an orchestra leader,
whose function is to produce coordinated sound and correct tempo through the
integrated efforts of the musicians. Depended on the quality of director’s leadership,
the orchestra will respond.
Leadership is a great quality and it can create and convert anything. There are many
definitions of leadership. Some of the definitions of leadership are reproduced
below:-
"LEADERSHIP" ACCORDING TO ALFORD AND BEATTY
"is the ability to secure desirable actions from a group of followers voluntarily,
without the use of coercion".
ACCORDING TO CHESTER I BARNARD
"It (leadership) refers to the quality of the behavior of the individual whereby they
guide people on their activities in organized efforts".
ACCORDING TO TERRY
"a leader shows the way by his own example. He is not a pusher, he pulls rather than
pushes".
ACCORDING TO KOONTZ AND O'DONNELL
Managerial leadership is "the ability to exert interpersonal influence by means of
communication, towards the achievement of a goal.
Since managers get things done through people, their success depends, to a
considerable extent upon their ability to provide leadership".
In the words of R.T. Livingston - Leadership is "the ability to awaken in others the
desire to follow a common objective".
ACCORDING TO PETER DRUCKER
Leadership "is not making friends and influencing people
i.e., salesmanship. Leadership is the lifting of man's vision to higher sights, the
raising of man's performance to higher standards, the building of man's personality
beyond its normal limitations".
ACCORDING TO LOUIS A ALLEN
"A leader is one who guides and directs other people. He gives the efforts to his
followers a direction and purpose by influencing their behaviour". In the words of
THEO HAIMANN
"Leadership is the process by which an executive imaginatively directs, guides and
influences the work of others in choosing and attaining specified goals by mediating
between the individuals and the organization in such a manner that both will obtain
maximum satisfaction".
ACCORDING TO KATZ AND KALM
"In the descriptions of organizations, no word is used with such varied meanings.
The word leadership is sometimes used to indicate that it is an attribute of personality;
sometimes, it is used as if it were a characteristic of certain positions, and sometimes
as an attribute of behaviour". From the above definitions we can conclude that
leadership is a psychological process of influencing followers (subordinates) and
providing guidance, directing and leading the people in an organization towards
attainment of the objectives of the enterprise.

Thursday, December 2, 2010

INGREDIENTS OF LEADERSHIP

Every group of people that performs job has same person as its head who is skilled in
art of leadership. This skill seems to be a compound at least four major ingredients.
1. Power
2. Fundamental understanding of people.
3. Ability to inspire fowler
4. The ability to act in a manner
That will develop a conducive climate to responding and rousing motivations.
1. POWER
The first ingredient of leadership is power. Power may be define as a strong influence
on the direction of an individual’s behavior. There are five kind of power.
1. LEGITMATE POWER
The official position of a person is organization is known as legitimate power.
2. COERCIVE POWER
A person’s ability to create fear in other individuals is known as coercive power.
3. REWARD POWER
This power arises from ability of some to grant reward is known as reward power.
4. EXPERT POWER
This power comes from the expertness of a person or a group.
5. REFERENT POWER
This is the power of admiring high esteemed leader by individuals.
6. DECISION MAKING POWER
This power arises from the power of positions.
2- FUNDAMENTAL UNDERSTANDING F PEOPLE
The second ingredient of leadership is fundamental understanding of people. A
manager or any other leader who knows the present state of motivation theory and
understands the elements of motivation is more aware of the nature and strength to
define and design ways satisfaction.
3- ABILITY TO INSPIRE FOLLOWERS
The third ingredient of leadership is an ability to inspire followers to apply their full
capabilities to a project. Inspirations also come from group heads. They may have
qualities of charm and appeal that increase loyalty, deviation and strong desire in
followers that the leaders want. This is not a matter of need satisfaction; it is a matter
of people giving unselfish support to a chosen objective.
THE ABILITY TO ACT IN A MANNER:
The forth ingredient of leadership is related to style of leader and the climate he or
she develops. The strength of motivation greatly depends on expectations, perceived
rewards, the task to be done and other factors that are part of an environment as well
as an organizational climate.
PRINCIPLE OF LEADERSHIP:
The fundamental is since people tend to follow those who in their view offer them a
means of satisfying their own personal goals. The more managers understand what
motivates their subordinates and how these motivation operate, and the more they
reflect their understanding in caring out their managerial actions, the more effective
they are likely to be as leaders.

TRAIT APPROACHES TO LEADERSHIP

Many studies of traits have been made various researches have identified specific
traits related to leadership ability. Five physical traits (such as energy, appearance and
height), Four intelligence and ability traits; sixteen personality traits (such as
adaptability, aggressiveness, self-confidence etc). Six task related characteristics
(Such as achievement drive, persistence and initiative) and nine social characteristic
(Such as co cooperativeness, interpersonal skill and administrative ability).
More recently following key leadership taints were identified drive (including
achievement, motivations energy, ambition etc). Honest and integrity, self confidence
(including emotional stability), cognitive ability and under standing of the business.
Less clear taints is creativity, flexibility etc)
In general, the study of leader’s traits has not been a very fruitful approach to
explaining leadership. Not all leader processes all the traits and many non leaders
may possess most or all of them. Also, the trait approach gives no guidance as to how
much of any train a person should have. Most of these so called traits are really
patterns of behavior.

Motivation & Motivators:

Motivation & Motivators
Reviewed by Hammad Naziron Apr 01 2013
Rating: 5
Motivation:
Introduction of Motivation:
Motivation is a general term applying to the entire class of drives, desire needs
similar forces. To say that managers motivate their subordinates is to say that they do
those things which they hope will satisfy these
drives and desire and induce the
subordinates to act in a desired manner.
THE NEED WANT SATISFACTION CHAIN:
Motivation can be explain by a chain reaction:
Felt needs give rise to want or goal sought which cause tensions (that is unfulfilled
desired), which give rise to action toward achieving goals which finally result in
satisfaction. This chain can be explained by figure.
Needs want- satisfaction chain

The chain explanation is complex. In the first place, except for physiological needs,
such as food, need are not independent of person's environment. Many physiological
needs are stimulated by environmental factors the small of food may cause hunger, a
lower thermometer reaching may cause chills.
Environment has a major influence on our perception of secondary needs. The
promotion of a colleague may arouse one's desire for higher position.
In second place, the need want satisfaction chain does not always operate as simply as
portrayed. Needs do cause behavior but needs also may result from behavior.
Satisfying one deed may lead to a desire to satisfy more needs.
COMPLEXITY OF MOTIVATIONS:
In individuals motives maybe quite complex and often conflicting. A person maybe
motivated by a desire for economy goods and services (a better house, a new car or a trip and these desires may be complex and conflicting. Should one buy a new house
or a new car?)
Motivators are things that induce an individual to perform motivators sharpen the
drive or need to satisfy wants. Motivators are also the means by which conflicting
needs may be reconciled.
A manager can do much to sharpen motive by establishing an environment. So the
motivator is some thing that influences an individual’s behavior. In any organization
are any enterprise, managers must be concerned about motivators, and also inventive
in their use. People can often satisfy their wants in a variety of ways.

SPECIAL MOTIVATIONAL TECHNIQUES:

SPECIAL MOTIVATIONAL TECHNIQUES
Reviewed by Hammad Naziron Apr 01 2013
Rating: 5
SPECIAL MOTIVATIONAL TECHNIQUES:
There are many motivational techniques:
Some important motivational Techniques are "Money, Participation, Quality of working life"
1: Money:
Money is also include as important MOTIVATIONAL TECHNIQUE. Money is important in form of wages, prince work, stock options, bonuses, company
paid, insurance etc. Money are often more then monetary value. It can also mean status
or power. Tended to place money high on the scale of motivators or an high scare of
motivators, while behavioral scientists tends to place it on low sale. But if money is to
be kind of motivator then managers must remember several things.
First, money, as money is likely to be more important to people who are raising and
family. Second, it is quite true that in most kinds of business and other enterprises,
money is used as mean of keeping an organization staffed. Third money becomes dull
if salaries of many managers in a company are similar. Fourth, if is to be an effective
motivator, people in various positions must be given salaries and bonuses that reflect
their individual performance.
It is almost certainly true the money can motivate only if payment is large relative to
persons income.

PARTICIPATION:
The second motivational technique is increase of awareness and use of participation.
Participation is necessary far the solution of problems participation is a mean of
recognition. It produces need for affiliation and acceptance. It gives people a sense of
accomplishment but encouraging participation should not mean that managers weaken their position. They should encourage participation of subordinates on matter
and they should listen carefully but they should make decision on matters themselves.

QUALITY OF WORKING LIFE:
The third motivational technique is quality of working life program. Quality work life
(QWL) is not only a very broad approach to job enrichment but also a field of inquiry
and action combining industrial and organization psychology and sociology,
industrial engineering, organization theory and development motivation and
leadership theory and industrial relations. QWL has received support from a number
of sources. Manager use this type of motivational technique as a means of dealing with productivity. Workers and union representatives have seen it as a mean of improving working conditions and productivity and as a mean of justifying higher pay.

AN EARLY BEHAVIORAL MODEL:

The nature of people has been expressed in two sets of assumptions developed by
Dauglas Megragor and commonly known as "Theory X" and "Theory Y" Megragor
chosen these terms because he wanted natural terminology. Without any connotation
of being "good or bad".
THEORY X ASSUMPTIONS:
The traditional assumptions about the nature of people in theory X are:
1: Average human beings have an inherent dislike of work and will avoid it if they
can.
2: Because of this human nature or characteristic of dislike work most people must be
coerced, controlled, directed and threatened with punishment to get them to put forth
adequate effort toward the achievement of organizational objectives
3: Average human beings prefer to be directed wish to avoid responsibility have
relatively little ambition and want security above all
THEORY Y ASSUMPTIONS:
The assumption of theory Y of Mceneyor as follows:
1: the expenditure of physical effort and mental effort in work is as natural as play or
rest.
2: External control and the threat of punishment are not the only means for producing
effort toward organizational objectives. People will exercise self direction and self
control in the service of objectives to which they are committed.
3: The degree of commitment to objective is in proportion to the size of the rewards
associated with their achievements.
4: the capacity to exercise high degree of imagination, ingenuity and creativity in
solution of organizational problem is widely distributed in the population.
5: Average human being learns under proper conditions not only to accept
responsibility but also to seek it.
6: Under the conditions of modern industrial life, the intellectual potentialities of the
average human being are only partially utilized.
These two sets of assumptions are fundamentally different theory x is pessimistic,
static and rigid. Theory y is optimistic, dynamic and flexible with an emphasis an self
directions. There is little doubt that each set of assumption will effect managerial
functions and activities of managers.
CLARIFICATION OF THE THEORIES:
The following points will clarify some of the areas of misunderstanding and keep the
assumptions in proper perspective
Firstly: Theory X and theory Y are assumptions only. They are not suggestions for
managerial strategies. These assumptions are not based on research.
Secondly: theories X and Y do not imply hard or soft management. The hard
approach may produce resistance and the soft approach may result in jazzes fair
management
Thirdly: Theories X and Y are not to be viewed as being on and continuous scale,
with x and y on opposite extremes. They are not a matter of degree, they are
completely different view of people.
Fourthly: under theory Y, authority is seen as only way a manager exerts leadership
Fifthly: Different task and situation require a variety of approaches to management

THE HIERARCHY OF NEED THEORY:


The hierarchy of need theory was presented by Maslow. Abraham Maslow saw
human needs in the form of hierarchy, ascending from the lowest to the highest He
concluded that when one set of needs
is satisfied, this kind of need ceases to be
motivators
THE NEEDS HIERARCHY:
The needs placed by Maslow in an ascending order are these.
1: PHYSIOLOGICAL NEEDS:
These are the basic need necessary for human life. Such as food, water, warmth,
shelter and sleep Maslow said that until these needs are satisfied to the degree
necessary to maintain life their needs, will not motivate people
2: SECURITY OR SALTY NEEDS:
These are the needs to be free of physical danger and of the fear of losing of job,
property, food and shelter
3: AFFILIATION OR ACCEPTANCE NEEDS:
Since people are social beings, they need to belong to be accepted by other
4: ESTEEM NEEDS:
According to Maslow, once people begin to satisfy their need to belong they tend to
want to be held in esteem both by themselves and by others. Esteem need produces
such satisfactions as power, prestige, status and self confidence.
5: NEED FOR SELF ACTUALIZATION:
Maslow regards this as the highest need in his hierarchy. It is desire to become what
one is capable of becoming
Maslow’s Hirarchy of needs

HIGEINE APPROCH TO MOTIVATION

HIGEINE APPROCH TO MOTIVATION
Reviewed by Hammad Naziron Apr 01 2013
Rating: 5

FREDERICK HERZBERY THEORY OF MOTIVATION
Needs theory of Maslow’s has been considering modified by Frederick Hizbery and
his associates, He grouped the concept into two factor theory of motivation. In one
group of needs are such things as company policy and administration, supervision,
working conditions, interpersonal relation, salary, status, job security and personal
life. This group referred to as dis-satisfies, and not motivators. In other words if they
exit in a work environment in high quantity and quality they yield no dis-satisfaction.
In second group, Herzberg listed certain satisfier and
therefore motivators all related
to job content. They include achievement, recognition, challenging work ,
advancement and growth in the job. There existence will yield feeling of satisfaction
or no satisfaction. As figure indicates the satisfiers and dis-satisfiers identified by
Herzberg are similar to the factor suggested by Maslow’s.

The first group of factors (the dis-satisfiers) will not motivate people in an
organization, dis-satisfaction will arise. The second group or the job content factors
by Herzberg is real motivators because they have the potential of yielding a sense of
satisfaction. Clearly if this theory of motivation is sound, managers must give
considerable attention to upgrading job content.
Some researches challenged Herzberg’s theory saying that his investigation method
tended to prejudice his result. For example the well known tendency of people to
attribute good results to their own efforts and blame others for poor results is thought
to have prejudiced. Herzberg’s theory has been criticized.

JOB ENRICHMENT & JOB ENLARGEMENT:

JOB ENRICHMENT & JOB ENLARGEMENT:
Reviewed by Hammad Naziron Apr 01 2013
Rating: 5

JOB ENRICHMENT

Job enrichment is related to Herzberg’s theory of motivation, in which factors such as

challenge, achievement, recognition, and responsibility are seen as a real motivators.

Even though this theory has not gone unchallenged it has led to widespread interest,

both in United States and overseas. Job enrichment aims at making jobs challenging

and meaningful. In job enrichment job may be enriched by verity. But they also may

be enriched.

1- Giving workers more freedom in deciding about such things as work methods

sequences and acceptance or rejection of materials’

2- Encouraging participation of subordinates and interaction between workers.

3- Taking steps to see and solve problems of workers and the welfare of the

enterprise.

4- Giving workers a feeling of personal responsibility for their work.

5- Giving people feedback on their job performance.

6- Involving workers in the analysis and change of physical aspects of the work

environment such as the layout of the office or plant , temperature lighting and

cleanliness.

JOB ENLARGEMENT

Job Enlargement attempt to make a job more varied by removing the dullness

associated with performing respective operations. It means enlarging the scope of the

job by adding similar task without enchanging responsibility , for example ,

production line worker may install not only the bumper on a car but also the front

hood job enlargement does not increase the workers responsibility.

OUTLINE NO STAFFING: 04

1. What is Staffing?

2. Define the nature and task of the manager

3. Defining the managerial job

4. The system approach to human resource management

a. Aspects in the system approach to staffing

i. Factors affecting the number and kinds of manager required

ii. Determination of available managerial resources

iii. Analysis of the need for managers

iv. Other important aspects

5. Purpose and objectives of staffing

a. Situational factors affecting staffing

i. External factors

ii. Internal factors

6. The selection process

a. Definition

b. The selection process

c. Interviews

d. Tests

e. Assessment centers

f. Limitation of the selection process

7. Steps/process/principles of staffing

a. Principle of job definition

b. Principle of managerial appraisal

c. Principle of open competition

d. Principle of management training and development

e. Principle of management objectives

f. Principle of continuing development

What is staffing?

Staffing is define as

“Filling and keeping filed, positions in the organization structure”

This process is done by ten concepts.

1. Identifying the work force requirements.

2. Inventorying the people available.

3. Recruiting

4. Selecting candidates.

5. Planning candidates.

6. Promoting candidate.

7. Appraising candidates.

8. Planning careers of candidates.

9. Training candidate.

10. Developing and compensating candidates and current jobholders.

DEFINING THE MANAGERIAL JOB

There is no agreed definition of managerial job of a manager. There are several

different definition of managerial job by different writers.

One group of writers studied successful managers and described their behaviors and

habits. Although the stories about these people are interesting but authors do not

provide a theory to explain the success of these successful managers. Other writers

focus on profit maximization, innovation, risk taking and similar activities. Yet

another group of writers emphasizes decisions that cannot be easily programmed.

Managerial job also define as leadership having power and influence over the

environment and subordinates. One says, managerial job is process of observing the

activities of managers. However the key tasks of managers are planning, organizing

staffing, leading, and controlling.

THE SYSTEM APPROCH TO HUMAN RESOURCE MANAGEMENT

THE SYSTEM APPROCH TO HUMAN RESOURCE MANAGEMENT
Reviewed by Hammad Naziron Apr 01 2013
Rating: 5

Figure shows the managerial function of staffing relates to the total management. in

system approach to staffing enterprise plan or organization plane become important

inputs for staffing tasks. The organization structure determines r

equired numbers and

kinds of managers. These demands for managers are compared with the available

talents through management inventory.

On the basis of this analysis, external and internal resources are utilized in the process

of recruitment, selection, placement, promotion and sepration.Other aspects of

staffing are appraisal, career strategy and training and development of managers.

Staffing effects leading and controlling. Well trained managers create an environment

in which people working together in the organization setup can achieve enterprise

objectives and accomplish personal goals.

Staffing requires an open system approach. It is carried out within the enterprise

which is linked to the external environment. Therefore it cannot be carried out within

the enterprise which is linked to the internal environment.

ASPECTS IN THE SYSTEM APPROCH TO STAFFING

In system approach to human resource management or staffing the fowling aspects

are to considered.

1. FACTORS AFFECTING THE NUMBER & KINDS OF MANAGER

REQUIRED

The number of managers needed in an enterprise depends on (1) Size of business (2)

plans of expansion (3) Rate of turnover of managers (4) Complexity of organization

structure.

2. DETERMINATION OF AVAILABLE MANAGERIAL RESOURCS

It is also known as management inventory. It is common for any business and non

business enterprises, to keep an inventory of new materials and goods on hand to

enable it to carry on its operations.

3. ANALYSIS THE NEED FOR MANAGERS.

Analysis of the need for managers depends upon internal resources.

INTERNAL RESOURCES

1. Plane for growth.

2. Replacement or out replacement staff.

3. demotions

4. Early retirement.

5. External factors.

6. Internal factors.

7. External factor include

EXTERNAL RESOURCES

1. Economic factor.

2. Technological factors.

3. Social factors.

4. Political factors.

5. Legal factors.

4. OTHER IMPORTANT ASPECTS

After the need for managerial personnel a number of candidates may have to be.

1. Recruited

2. selected

3. place

4. promote

OBJECTIVES & PURPOSES OF STAFFING:

OBJECTIVES & PURPOSES OF STAFFING
Reviewed by Hammad Naziron Apr 01 2013
Rating: 5

OBJECTIVES & PURPOSES OF STAFFING:

OBJECTIVES OF STAFFING

The objective and purpose of managerial staffing is to ensure that organizational

positions are filled by the qualified personnel, who are able to willing to occupy them.

2ndly, the purpose / objective of managerial staffing is to define job, performance

appraisal training and development of people.

3rdly, the purpose / objective of managerial staffing is to matching the persons with

job, identifying job requirement, job, design etc.

SITUATIONAL FACTORS AFFECTING STAFFING

The actual process of staffing is affected by many environmental factors. For example

external and internal factors.

EXTERNAL FACTORS

Factors in external environment do affect staffing to various degrees. These

influences can be grouped into educational, social cultural, legal political and

economic opportunities. External factors include.

1. Well trained managers.

2. Well educated managers.

3. Highly skilled managers.

Ignorance of external factors may keep away an enterprise from growing at design

rate

INTERNAL FACTORS

Internal factors include

1. Personal policies.

2. Organizational climate.

3. Reward system.

Internal factors of staffing are required to be taking consideration.

THE SELECTION PROCESS

THE SELECTION PROCESS
Reviewed by Hammad Naziron Apr 01 2013
Rating: 5

Selection is the process of choosing from among the candidates, from within the

organization or from the outside organization the most suitable person for the current

position or for future positions.

There are many steps in the selection process, for example, the interview of a

candidate, tests, assessment centers etc. There are some variations in the steps of

selection process For example the interview of candidate for a first level supervisory

position may be relatively simple then interviews for a top level executive. In the

selection process firstly, the selection criteria are established in the basis of current

and future job requirements. These criteria include.

1. Education, knowledge, skills and experience.

2. The candidate is requested to complete the application form.

3. A screening interview is conducted.

4. Candidates are tested for additional information.

5. Formal interviews conducted on the basis of test.

6. Information provided by candidates are checked and verified.

7. Physical fitness is examined.

8. On the basis of previous step the candidate is offered job or information about

that he/she has not been selected for the position. Lets determine some parts of

selection process.

INTERVIEW

In a structured interview the Manager ask a set of prepared questions, such as the

following.

1. What were your specific duties and responsibilities in your last job?

2. What did you achieve in that job?

3. Who could be asked to verify these achievements?

4. Who are they?

5. What did you like or dislike about your job?

6. Why do you want to change your job?

TESTS

The primary aim of test is to obtain data about the applicants. Some of the benefits

from testing include finding the best person for the job obtaining a high degree of job

satisfaction for the applicant, and reducing turnover. The most commonly used tests

can be classified as follows.

1. INTELEGENCE TEST

Intelligence test are design to measure mental capacity, to test memory , speed of

thought and ability to see relationship in complex problem situations.

2. PROFICIENCY TEST

It constructed to discover interest, existing skills and potential for acquiring skills.

3. VOCATIONAL TESTS

Vocational test are designed to show a candidates most suitable occupation.

4. PERSONALITY TESTS

Personality tests are designed to show or discover candidate’s personal

characteristics.

ASSESSMENT CENTERS

The assessment center is not a location but a technique for selecting and promoting

managers. This approach may be used in training assessment centers were first used

for selecting and promoting lower level but now they are applied to middle level

managers as well.

LIMITATION OF SELECTION PROCESS

There are many limitation of the selection process.

1. There is no one perfect way to select managers.

2. There is distinction between what person can do,

3. Testing process and especially psychological testing is limited.

4. Time and cost involved in making personnel decisions. It is important to

identify such factor as advertising expenses, agency fees, cost of test

materials, time spent interviewing candidate, costs for reference check etc.

When recruiting costs are recognized it becomes evident that turnover can be

very expensive to an enterprise.

 

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