Diploma Name – Single Subject Diploma in Business Management
Student Name – Khaing Pyae Sone Win
Module Name – Management & Organizational Behavior
Intake -12
Table of Contents
Best services for writing your paper according to Trustpilot
1.(i) The Nature of Organizational Behavior ……………………………………………………………………………………..…3-4
(ii)The Various types of organizational structurer and their advantages and disadvantages…………5-17
2.(i)Decision Making Process and types of decision …………………………………………………………………………17-19
(II)Importance of planning and types of plan…………………………………………………………………………………..20-25
(iii)Advantages and disadvantages of management by objective……………………………………………………25-28
3.(i)Differences between manager and leader……………………………………………………………………………….28-30
(ii)Two management styles and impact on organizational behavior………………………………………………30-31
(iii) Two leadership styles and suggest suitable leadership theory ………………………………………………31-33
4.(i)Motivation and job satisfaction ……………………………………………………………………………………………33-37
(ii)effective control ……………………………………………………………………………………………………………………..37-40
Q.1.The Nature of Organizational Behavior
Organizational behavior in the study of human behavior in the organizations. Whenever an individual joins an organization they brings with their unique set of personal behavior, experiences from other organizations and a personal background. First stage organizational behavior must look at the unique perspective that each individual brings to the work setting.
The second stage is to study the dynamics of how the incoming individuals interact with the broader organization. They can’t work individual in isolation. They comes into contact with other individuals and the organization in a variety of methods. One worker who joins a new organization has to come into contact with the co-workers, HR managers, formal policies and procedures of the organization etc.
Over the time, They has affected by his work experience and the organization as well as their maturity and working experiences. On the other hand, the organization is also affected by the presence of the individual. It is main facts that OB must study the many ways in which the individuals and organization interact with each other.
The organizational behavior can be studied from the perspective of the organization itself because an organization exists before a particular individual joins in and continues to exist after he or she has left the organization. Thus, OB is the study of human behavior in the organization, the individual-organization interaction and the organization itself. These factors will be influenced to external environment in which the individuals and the organization exist.
Thus, we cannot study individual completely without learning something about the organization. On the other hand, cannot study the organizations behavior without studying of the individuals working in it. This is because the organization influences is by the people working in it. Moreover, both the organization and the individuals are influenced by the external environment. Thus, organizational behavior is a complex field. It seeks to throw light on the entire canvas of human factor in the organizations which will include the causes and effects of such behavior
The biggest feature of Organizational Behavior is takes a systematic approach to understand and influence human behavior.
OB is the study and participation of knowledge about human behavior in organizations as it relates to other system , such as structure, technology, and the other social system. By nature, Organizational Behavior studies is very distinctive with its characteristics and own features . According to six characteristics , Organizational Behavior is;
1. A Separate Field of Study and not a Discipline Only.
By definition, a discipline is an accepted science that is based on a theoretical foundation. But, OB has a multi- interdisciplinary orientation and is, thus, not based on a specific theoretical background. Therefore, it is better to reason to call OB a separate field of study rather than a discipline only.
2. An Interdisciplinary Approach.
Organizational behavior is essentially an interdisciplinary approach to study human behavior at work. It tries to integrate the relevant knowledge drawn from related disciplines like psychology, sociology, and anthropology to make them applicable for studying and analyzing organizational behavior.
3. An Applied Science.
The very nature of OB is applied. What OB basically does is the application of various research to solve the organizational problems related to human behavior.
The basic line of difference between pure science and OB is that while the former concentrates of fundamental research, the latter concentrates on applied research.
OB involves both applied research and its application in organizational analysis. Hence, OB can be called both science as well as art.
4. A Normative Science.
Organizational Behavior is a normative science also. While the positive science discusses only cause effect relationship, OB prescribes how the findings of applied research can be applied to socially accepted organizational goals. Thus, OB deals with what is accepted by individuals and society engaged in an organization. Yes, it is not that OB is not normative at all.
In fact, OB is normative as well that is well underscored by the proliferation of management theories.
5. A Humanistic and Optimistic Approach.
Organizational Behavior applies humanistic approach towards people working in the organization. It deals with the thinking and feeling of human beings. OB is based on the belief that people have an innate desire to be independent, creative and productive.
It also realizes that people working in the organization can and will actualize these potentials if they are given proper conditions and environment. Environment affects performance or workers working in an organization.
6. A Total System Approach.
The system approach is one that integrates all the variables, affecting organizational functioning.
The systems approach has been developed by the behavioral scientists to analyze human behavior in view of his/her socio-psychological framework.
Man’s socio-psychological framework makes the man a complex one and the systems approach tries to study his/her complexity and find a solution to it.
Conclusion
Organizational behavior is that study of shaping the behavior of the organizational personnel. By nature, OB is an applied science which takes a systematic approach that understands the reason behind the behavior and influences it in a way that benefits attaining the business goals.
For influencing the human behavior within the organization, OB tries to find the motivation and drive for any particular behavior. It sets an environment that delivers maximum performance from the workers.
Ref: ( (https://iedunote.com/features-of-organizational-behavior, n.d.) (http://www.yourarticlelibrary.com/organization/organizational-behaviour/organizational-behaviour-definition-characteristics-and-nature/63741, n.d.) (organisation-behavior-introduction-of-organisation-behavior-for-bbabcom-students, n.d.) (nature_scope_features_organiational_behaviour, n.d.) (I_MCom_Organizational_theory_and_behaviour_on16March2016.pdf, n.d.)
(https://www.scribd.com/document/289640173/Nature-and-Scope-of-OB, n.d.) (https://www.slideshare.net/Ochbet/nature-scope-of-human-behavior, n.d.)
(https://www.scribd.com/doc/38266495/Influences-of-Organizational-Behavior, n.d.)
Q.1(II) Various types of organizational structure and their advantages and disadvantages
Each company tends to use the business structure . There is no absolute right or wrong way to structure a business. A particular structure is advantageous or disadvantageous for a company depends on the type of business and the strategy of the company, its target market and the style of the management. All managers must bear that there are two organizations they must deal with one formal and the other informal.
The formal organization in usually delineated by an job descriptions and organizational chart. Every manger must be know clearly and official reporting process.
Alongside the formal organization exists are informal organization which is a set of evolving relationships and patterns of human interaction within an organization that are not officially prescribed.
Formal organizational structures are categorized as:
(i) Line organizational structure.
(ii) Staff or functional authority organizational structure.
(iii) Line and staff organizational structure.
(iv) Committee organizational structure.
(v) Divisional organizational structure.
(vi) Project organizational structure.
(vii) Matrix organizational structure and
(viii) Hybrid organizational structure.
1. Line Organizational Structure:
A line organization has only direct, vertical relationships between different levels in the firm. There are only line departments-departments directly involved in accomplishing the goal of the organization. For example, in a typical firm, line departments include marketing and production. In a line organization authority follows the chain of command.
Features:
Has only direct vertical relationships between different levels in the firm.
Advantages:
1. Tends to simplify and clarify authority, responsibility and accountability relationships
2. Promotes fast decision making
3. Simple to understand.
Disadvantages:
1. Neglects specialists in planning
2. Overloads key persons.
Some of the advantages of a pure line organization are:
(i) A line structure tends to simplify and clarify responsibility, authority and accountability relationships. The levels of responsibility and authority are likely to be precise and understandable.
(ii) A line structure promotes fast decision making and flexibility.
(iii) Because line organizations are usually small, managements and employees have greater closeness.
However, there are some disadvantages also. They are:
(i) As the firm grows larger, line organization becomes more ineffective.
(ii) Improved speed and flexibility may not offset the lack of specialized knowledge.
(iii) Managers may have to become experts in too many fields.
(iv) There is a tendency to become overly dependent on the few key people who an perform numerous jobs.
2. Staff or Functional Authority Organizational Structure
The jobs or positions in an organization can be categorized as:
(i) Line position:
a position in the direct chain of command that is responsible for the achievement of an organization’s goals and
(ii) Staff position:
A position intended to provide expertise, advice and support for the line positions.
The line officers or managers have the direct authority (known as line authority) to be exercised by them to achieve the organizational goals. The staff officers or managers have staff authority (i.e., authority to advice the line) over the line. This is also known as functional authority.
An organization where staff departments have authority over line personnel in narrow areas of specialization is known as functional authority organization. Exhibit 10.4 illustrates a staff or functional authority organizational structure.
In the line organization, the line managers cannot be experts in all the functions they are required to perform. But in the functional authority organization, staff personnel who are specialists in some fields are given functional authority (The right of staff specialists to issue orders in their own names in designated areas).
The principle of unity of command is violated when functional authority exists i.e., a worker or a group of workers may have to receive instructions or orders from the line supervisor as well as the staff specialist which may result in confusion and the conflicting orders from multiple sources may lead to increased ineffectiveness. Some staff specialists may exert direct authority over the line personnel, rather than exert advice authority (for example, quality control inspector may direct the worker as well as advise in matters related to quality).
While this type of organizational structure overcomes the disadvantages of a pure line organizational structure, it has some major disadvantages:
They are: (i) the potential conflicts resulting from violation of principle of unity of command and (ii) the tendency to keep authority centralized at higher levels in the organization.
3. Line and Staff Organizational Structure:
Most large organizations belong to this type of organizational structure. These organizations have direct, vertical relationships between different levels and also specialists responsible for advising and assisting line managers. Such organizations have both line and staff departments. Staff departments provide line people with advice and assistance in specialized areas (for example, quality control advising production department).
The line functions are production and marketing whereas the staff functions include personnel, quality control, research and development, finance, accounting etc. The staff authority of functional authority organizational structure is replaced by staff responsibility so that the principle of unity of command is not violated.
Three types of specialized staffs can be identified:
(i) Advising,
(ii) Service and
(iii) Control.
Some staffs perform only one of these functions but some may perform two or all the three functions. The primary advantage is the use of expertise of staff specialists by the line personnel. The span of control of line managers can be increased because they are relieved of many functions which the staff people perform to assist the line.
Some advantages are:
(i) Even through a line and staff structure allows higher flexibility and specialization it may create conflict between line and staff personnel.
(ii) Line managers may not like staff personnel telling them what to do and how to do it even though they recognize the specialists’ knowledge and expertise.
(iii) Some staff people have difficulty adjusting to the role, especially when line managers are reluctant to accept advice.
(iv) Staff people may resent their lack of authority and this may cause line and staff conflict.
Features:
1. Line and staff have direct vertical relationship between different levels.
2. Staff specialists are responsible for advising and assisting line managers/officers in specialized areas.
3. These types of specialized staff are (a) Advisory, (b) Service, (c) Control e.g.,
(a) Advisory:
Management information system, Operation Research and Quantitative Techniques, Industrial Engineering, Planning etc
(b) Service:
Maintenance, Purchase, Stores, Finance, Marketing.
(c) Control:
Quality control, Cost control, Auditing etc. Advantages’
(i) Use of expertise of staff specialists.
(ii) Span of control can be increased
(iii) Relieves line authorities of routine and specialized decisions.
(iv) No need for all round executives.
Disadvantages:
(i) Conflict between line and staff may still arise.
(ii) Staff officers may resent their lack of authority.
(iii) Co-ordination between line and staff may become difficult.
Committee Organizational Structure Features:
(a) Formed for managing certain problems/situations
(b) Are temporary decisions.
Advantages:
1. Committee decisions are better than individual decisions
2. Better interaction between committee members leads to better co-ordination of activities
3. Committee members can be motivated to participate in group decision making.
4. Group discussion may lead to creative thinking.
Disadvantages:
1. Committees may delay decisions, consume more time and hence more expensive.
2. Group action may lead to compromise and indecision.
3. ‘Buck passing’ may result.
4. Divisional Organizational Structure:
In this type of structure, the organization can have different basis on which departments are formed. They are:
(i) Function,
(ii) Product,
(iii) Geographic territory,
(iv) Project and
(iv) Combination approach.
5. Project Organizational Structure:
The line, line and staff and functional authority organizational structures facilitate establishment and distribution of authority for vertical coordination and control rather than horizontal relationships. In some projects (complex activity consisting of a number of interdependent and independent activities) work process may flow horizontally, diagonally, upwards and downwards. The direction of work flow depends on the distribution of talents and abilities in the organization and the need to apply them to the problem that exists. The cope up with such situations, project organizations and matrix organizations have emerged.
A project organization is a temporary organization designed to achieve specific results by using teams of specialists from different functional areas in the organization. The project team focuses all its energies, resources and results on the assigned project. Once the project has been completed, the team members from various cross functional departments may go back to their previous positions or may be assigned to a new project. Some of the examples of projects are: research and development projects, product development, construction of a new plant, housing complex, shopping complex, bridge etc.
Feature:
Temporary organization designed to achieve specific results by using teams of specialists from different functional areas in the organization.
Importance of Project Organizational Structure:
Project organizational structure is most valuable when:
(i) Work is defined by a specific goal and target date for completion.
(ii) Work is unique and unfamiliar to the organization.
(iii) Work is complex having independent activities and specialized skills are necessary for accomplishment.
(iv) Work is critical in terms of possible gains or losses.
(v) Work is not repetitive in nature.
Characteristics of project organization:
1. Personnel are assigned to a project from the existing permanent organization and are under the direction and control of the project manager.
2. The project manager specifies what effort is needed and when work will be performed whereas the concerned department manager executes the work using his resources.
3. The project manager gets the needed support from production, quality control, engineering etc. for completion of the project.
4. The authority over the project team members is shared by project manager and the respective functional managers in the permanent organization.
5. The services of the specialists (project team members) are temporarily loaned to the project manager till the completion of the project.
6. There may be conflict between the project manager and the departmental manager on the issue of exercising authority over team members.
7. Since authority relationships are overlapping with possibilities of conflicts, informal relationships between project manager and departmental managers (functional managers) become more important than formal prescription of authority.
8. Full and free communication is essential among those working on the project.
6. Matrix Organizational Structure:
It is a permanent organization designed to achieve specific results by using teams of specialists from different functional areas in the organization.
Feature:
Superimposes a horizontal set of divisions and reporting relationships onto a hierarchical functional structure
Advantages:
1. Decentralized decision making.
2. Strong product/project co-ordination.
3. Improved environmental monitoring.
4. Fast response to change.
5. Flexible use of resources.
6. Efficient use of support systems.
Disadvantages:
1. High administration cost.
2. Potential confusion over authority and responsibility.
3. High prospects of conflict.
4. Overemphasis on group decision making.
5. Excessive focus on internal relations.
This type of organization is often used when the firm has to be highly responsive to a rapidly changing external environment.
In matrix structures, there are functional managers and product (or project or business group) managers. Functional manager are in charge of specialized resources such as production, quality control, inventories, scheduling and marketing. Product or business group managers are in charge of one or more products and are authorized to prepare product strategies or business group strategies and call on the various functional managers for the necessary resources.
The problem with this structure is the negative effects of dual authority similar to that of project organization. The functional managers may lose some of their authority because product managers are given the budgets to purchase internal resources. In a matrix organization, the product or business group managers and functional managers have somewhat equal power. There is possibility of conflict and frustration but the opportunity for prompt and efficient accomplishment is quite high.
7. Hybrid Organizational Structure:
Exhibit 10.9 (b) illustrates a combination structure
Advantages:
1. Alignment of corporate and divisional goals.
2. Functional expertise and efficiency.
3. Adaptability and flexibility in divisions.
Disadvantages:
1. Conflicts between corporate departments and units.
2. Excessive administration overhead.
3. Slow response to exceptional situations.
Uses:
Used in organizations that face considerable environmental uncertainty that can be met through a divisional structure and that also required functional expertise or efficiency
This type of structure is used by multinational companies operating in the global environment, for example, International Business Machines USA. This kind of structure depends on factors such as degree of international orientation and commitment. Multinational corporations may have their corporate offices in the country of origin and their international divisions established in various countries reporting to the CEO or president at the headquarters. The international divisions or foreign subsidiaries may be grouped into regions such as North America, Asia, Europe etc. and again each region may be subdivided into countries within each region.
While the focus is on international geographic structures, companies may also choose functional or process or product depart mentation in addition to geographic pattern while at the head quarter’s the depart mentation may be based on function.
The Informal Organization:
An informal organization is the set of evolving relationships and patterns of human interaction within an organization which are not officially presented. Alongside the formal organization, an informal organization structure exists which consists of informal relationships created not by officially designated managers but by organizational members at every level. Since managers cannot avoid these informal relationships, they must be trained to cope with it
The informal organization has the following characteristics
(i) Its members are joined together to satisfy their personal needs (needs for affiliation, friendship etc.)
(ii) It is continuously changing:
The informal organization is dynamic.
(iii) It involves members from various organizational levels.
(iv) It is affected by relationship outside the firm.
(v) It has a pecking order: certain people are assigned greater importance than others by the informal group.
Even though an informal organizational structure does not have its own formal organizational chart, it has its own chain of command:
Benefits of Informal Organization:
(i) Assists in accomplishing the work faster.
(ii) Helps to remove weakness in the formal structure.
(iii) Lengthens the effective span of control.
(iv) Compensation for violations of formal organizational principles.
(v) Provides an additional channel of communication.
(vi) Provides emotional support for employees.
(vii) Encourages better management.
Disadvantages of informal organization:
(i) May work against the purpose of formal organization.
(ii) Reduces the degree of predictability and control.
(iii) Reduces the number of practical alternatives.
(iv) Increases the time required to complete activities.
Ref ( (http://www.yourarticlelibrary.com/organization/8-types-of-organisational-structures-their-advantages-and-disadvantages/22143), n.d.)
Q-2(i)Decision Marking Process and types of Decision
Decision making is the process of making choices by identifying a decision, gathering information, and assessing alternative resolutions.
Using a step-by-step decision-making process can help you make more deliberate, thoughtful decisions by organizing relevant information and defining alternatives. This approach increases the chances that you will choose the most satisfying alternative possible.
Step 1: Identify the decision
You realize that you need to make a decision. Try to clearly define the nature of the decision you must make. This first step is very important.
Step 2: Gather relevant information
Collect some pertinent information before you make your decision: what information is needed, the best sources of information, and how to get it. This step involves both internal and external “work.” Some information is internal: you’ll seek it through a process of self-assessment. Other information is external: you’ll find it online, in books, from other people, and from other sources.
Step 3: Identify the alternatives
As you collect information, you will probably identify several possible paths of action, or alternatives. You can also use your imagination and additional information to construct new alternatives. In this step, you will list all possible and desirable alternatives.
Step 4: Weigh the evidence
Draw on your information and emotions to imagine what it would be like if you carried out each of the alternatives to the end. Evaluate whether the need identified in Step 1 would be met or resolved through the use of each alternative. As you go through this difficult internal process, you’ll begin to favor certain alternatives: those that seem to have a higher potential for reaching your goal. Finally, place the alternatives in a priority order, based upon your own value system.
Step 5: Choose among alternatives
Once you have weighed all the evidence, you are ready to select the alternative that seems to be best one for you. You may even choose a combination of alternatives. Your choice in Step 5 may very likely be the same or similar to the alternative you placed at the top of your list at the end of Step 4.
Step 6: Take action
You’re now ready to take some positive action by beginning to implement the alternative you chose in Step 5.
Step 7: Review your decision & its consequences
In this final step, consider the results of your decision and evaluate whether or not it has resolved the need you identified in Step 1. If the decision has not met the identified need, you may want to repeat certain steps of the process to make a new decision. For example, you might want to gather more detailed or somewhat different information or explore additional alternatives.
A decision is a choice made between 2 or more available alternatives.
Decision Making is the process of choosing the best alternative for reaching objectives.
Managers make decisions affecting the organization daily and communicate those decisions to other organizational members.
Some decisions affect a large number of organization members, cost a great deal of money to Carry out, or have a long term effect on the organization. Such significant decisions can have a major impact, not only on the management systems itself, but on the career of the manager who makes them.
Other decisions are fairly insignificant, affecting only a small member of organization members, costing little to carry out, and producing only a short term effect on the organization.
TYPES OF DECISIONS:
PROGRAMMED DECISIONS:
Programmed decisions are routine and repetitive, and the organization typically develops specific ways to handle them. A programmed decision might involve determining how products will be arranged on the shelves of a supermarket. For this kind of routine, repetitive problem, standard arrangement decisions are typically made according to established management guidelines.
NON PROGRAMMED DECISIONS:
Non programmed decisions are typically one shot decisions that are usually less structured than programmed decision.
5 ELEMENTS OF THE DECISION SITUATION:
1. The Decision Makers
2. Goals to be served
3. Relevant Alternatives
4. Ordering of Alternatives
5. Choice of Alternatives
Ref: ( (https://managementinnovations.wordpress.com/2008/12/08/types-of-decisions-decision-making-process, n.d.)
Ref( (https://www.umassd.edu/fycm/decisionmaking/process, n.d.))
II. Importance of Planning and types of plan
Everyone loves to point out those projects which are immensely popular and claim they were overnight success stories. There is something glamorous about the idea that the next day it might be something new. Or, even better, that it might be their idea. Success is only a day away. Unfortunately this notion of instant success is more myth than fact. Some of the greatest companies that have been termed overnight success came from a very different background. The truth of the matter is much less glamorous and much more realistic. Great ideas involve planning. Planning is vitally important to success. Let’s look briefly at 5 reasons planning is important.
1. Planning helps identify goals
One of the most beneficial aspect of planning is in creating goals to accomplish. When you sit down and write out what you want to accomplish you will be surprised how this goal structure lends itself to creating a plan for accomplishing them. There are a couple of different strategies when working on goals. Some of the more popular include creating three goal types, short-term, mid-term, and long-term.
Short-term goals are those items you would like to see done in the next 2-3 days. These goals are quick, easy to accomplish and relatively simple goals. The mid-term goals are things you’d like to accomplish in the next few weeks or months. This is the broadest time scope and can vary in degree of difficulty. Ultimately each of these mid-term goals are concrete, well-defined goals which can be directly actioned. The last goal type is the long-term goal. These goals are much more abstract and contain more figurative type of language. These are the big picture goals and long-term aspirations you hold for your project.
2. Planning offers directions
If you start creating your goals in the first step and organize them accordingly what you’ll find is you’ve begun to take the first step towards creating a roadmap. Planning a direction for your project or business involves creating a roadmap. Planning takes many different shapes and sizes and as you create this roadmap for accomplishing your goals you will find your planning is offering you great direction.
Business direction allows you to plan for a course of action you will take to accomplish your goals. Planning how you accomplish them is a valuable exercise for your business growth and development. As you plan you will put together a course of action. This course of action will help you to be prepared for what comes next. You’ll be ready to answer questions and you’ll have an advantage over others which have not prepared for their future.
3. Planning uncovers problems
You create your goals and identify your direction and you become prepared for what is coming next. The more prepared you are the better you are able to handle problems as they arise. Even more than handling problems as they arise the art of careful planning will help you to uncover potential problems before they even occur. When you work to carefully plan out a direction you’ll undoubtedly uncover possible bumps in the road along the way. If you aren’t careful in your planning you may never discover them until its too late.
Uncovering problems means finding solutions and implementing fixes before they become a reality. There are few things as exciting as fixing problems before they are even found. Being able to resolve conflicts and work around issues is an invaluable business advantage. Careful planning helps uncover problems.
4. Planning adds professionalism
Professionalism doesn’t mean stiff and stodgy. Just because you are professional it doesn’t mean you can’t have fun. Professionalism means you are prepared. Preparation is another word for planning. Planning adds a sense of professionalism to your business. When you plan your course of action, when you outline your goals, and when you uncover problems you give yourself the opportunity to be prepared for things that arise.
Being prepared keeps you from getting caught off-guard if things don’t go as planned. This is an important point. Planning does not mean everything always works as you intend. Errors, problems, and failures will still happen. Planning helps you stay professional as you handle those times. Planning keeps you prepared for when things don’t go as you hoped.
5. Planning gives perspective
Lastly, planning your goals and your direction helps to give you a clear perspective of what matters and what is possible to accomplish. As you create your goals you will focus on what you want to accomplish. Planning how to accomplish those goals will force you to organize them and also to prioritize them and put them in perspective. No one wants to waste time working on something that is not important. However, the day to day life of a startup or small business too easily gets overwhelmed and those goals and objectives get lost in the daily grind.
Planning helps to stay focused and to keep your perspective. Keep your perspective on your purpose and your future. Then and only then will you see success and you will be rewarded for your planning.
Ref ( (http://dbhurley.com/importance-planning/, n.d.)
Types of Plans are;
1. Hierarchical plans,
2. Standing plans,
3. Single-use plans, and
4. Contingency plans.
1. Hierarchical Plans
These plans are drawn at three major hierarchical levels, namely, the institutional, the managerial and the technical core. The plans in these three levels are-
? Strategic
? Administrative and,
? Operational respectively.
Strategic plan
The strategic plan generally involves planning at the top institutional level of an organization. Strategic plans define the organization’s long-term vision and how the organization intends to make its vision a reality.
In short, strategic planning is the determination of the basic long-term objectives of an enterprise and the adoption of courses of action and allocation of resources necessary to achieve these goals.
Strategies do not attempt to outline exactly how the enterprise is to accomplish its objectives since this is the task of countless major and minor supporting programs. But they furnish a framework for guiding ‘.linking and action.
Administrative or Intermediate plan
Administrative or intermediate planning is done at the level of middle management.
It is cone to allocate organizational resources and co-ordinate internal subdivisions of the organization. It is also a process of determining the contributions that sub-units can make with allocated resources.
Operational plan
Finally, operational planning is the process of determining how specific tasks can best be accomplished on time with available resources.
This is also done to cover the day-to-day operations of an organization. As such, many operational plans are designed to govern the workings of the organization’s technical core.
2. Standing Plans
Standing plans are drawn to cover issues that managers face repeatedly.
For example, managers may be facing the problem of late- coming quite often.
Managers may, therefore, design a standing plan to be implemented automatically each time an employee is late for work. Such a standing plan may be called standard operating procedure (SOP).
Mission or purpose, strategies, policies, procedures, rules are some of the most common standing plans.
? Mission or purpose
Mission or purpose, often used interchangeably, identifies the basic task of an organization for which it is created. For example, the mission of a University is to impart higher education. The mission of garments factory is to produce and sell ready-made garments and so on.
? Strategy
The strategy is another type of broad-based standing plan which helps the determination of the basic long-term objectives of an enterprise and adoption of courses of action and allocation of resources necessary to achieve these objectives.
? Policies
Policies are, in most cases, standing plans. As a matter of fact, policies provide guidelines for repetitive actions.
They define an area or provide limits within which decisions are to be made and ensure that the decision will be consistent with, and contribute to, an objective. Policies are types of plans that allow decision-makers some discretion to carry out a plan. Otherwise, there will be no difference between policies and rules.
Policies must allow for some discretion. Policies help decide issues before they become problems and make it unnecessary to analyze the same situation every time it comes up.It permits managers to delegate authority and still maintain control over subordinates about the matter.
There are many types of policies. Instances are found in the policies of hiring only university-trained engineers, promotion from within, encouraging an employee suggestion system for improved organizational performance, setting competitive prices etc.
Some policies could originate from customary and general ways of behavior in an organization. Some of them are put in place through verbal statements or in writing.
For example, there might be a policy in an organization that “except for token gifts of very nominal value or advertising value, no employee shall accept any gift from any supplier.” Such formal policies are usually written down in company manuals or regulations for employees.
The policy is a means of encouraging discretion and initiative but within limits. The amount of discretion usually depends on the policy and the position and authority occupied in the organization.
Since policies are general in nature, they provide guidelines as to how the employees will carry out their jobs.
While policies provide managers with some flexibility in approaching various organizational problems, this generality again makes policies rather vague.
Control becomes difficult when people start interpreting policy meaning and purpose differently.
? Rules
Rules Like policies, rules, too, are standing plans that guide action. Rules spell out specifically what employees are supposed to do or not to do.
For example, the no-smoking campaign launched by some organizations is supported by some organizational rules. As opposed to policies, rules do not permit the exercise of individual discretion.
Instead, rules specify what actions will be taken (or not taken) and what behavior is permitted or not. Policies, on the other hand, tell people how to think about decisions to be made about actions.
? Procedures
Procedures Like rules, procedures are standing plans that provide guidance for action rather than speculation.
They are plans that establish a required method of handling future activities. Procedures establish customary ways for handling certain activities like hiring a clerk, promoting employees, obtaining a loan from a bank. The major characteristic of a procedure is that it represents a chronological sequencing of events.
It specifies a series of steps that must be taken to accomplish a task. Specified series of steps that are required to be taken for admission into the MBA program of AUB is an example of the procedure.
3. Single-use Plans
Single-use plans are prepared for single or unique situations or problems and are normally discarded or replaced after one use.
Generally, four types of single-use plans are used. These are— objectives/goals, programs, projects, and budgets.
? Objectives or Goals
Objectives or goals, often used interchangeably, are the ends toward which activity is aimed.
They represent not only the end point of planning but also the end toward which all other managerial functions are aimed. In fact, objectives are set in relation to a particular time period and thus the same objective is not repeated year after year, month after month or day after day. Objectives are 3 types.
? Programs
Programs are plans of action followed in proper sequence according to objectives, policies, and procedures. Thus a program lays down the major steps to be taken to achieve an objective and sets an approximate time frame for its fulfillment.
Programs are usually supported by budgets. A program may be a major or a minor one or long, medium or short-term one. Since it is not used in the same form once its task is over it belongs to single-use plan category.
? Projects
A project is a particular job that needs to be done in connection with a general program. So a single step in a program is set up as a project.
A project has a distinct object and clear-cut termination. “Projects have the same characteristics as programs but are generally narrower in scope and less complex. Projects are frequently created to support or complement a program.”
? Budgets
A budget is a statement of expected results expressed in numerical terms.” It is sometimes called enumerated program and most commonly expressed in terms of money i.e. Rupee, Euro, Dollar etc.
They may also be expressed in terms of any measurable unit like an hour, metric ton etc. It covers a particular period of time, and once the period is over, a new budget comes into being. It not only a planning tool but also works as a controlling tool.
4. Contingency Plans
As we already know, the process of planning is based on certain assumptions about what is likely to occur in the environment of an organization.
Contingency plans are made to deal with situations that might crop up if these assumptions turn out to be wrong.
Thus contingency planning is the development of alternative courses of action to be taken if events disrupt a planned course of action.
A contingency plan allows management to act immediately if such unforeseen events as strikes, boycotts, natural disasters or major economic changes render existing plans inoperable or unsuitable.
Ref;( (https://iedunote.com/planning-types, n.d.)
III. Advantages and Disadvantages of Management by objective
Management by objectives (MBO) can also be referred as Management by Results or Goal Management, and is based on the assumption that involvement leads to commitment and if an employee participates in goal setting as well as setting standards for measurement of performance towards that goal, then the employee will be motivated to perform better and in a manner that directly contributes to the achievement of organizational objectives.
Advantages of Management by Objectives
1 . Since Management by objectives (MBO) is a result-oriented process and focuses on setting and controlling goals, if encourages managers to do detailed planning.
2. Both the manager and the subordinates know what is expected of them and hence there is no role ambiguity or confusion.
3. The managers are required to establish measurable targets and standards of performance and priorities for these targets. In addition, the responsibilities and authority of the personnel is clearly established.
4. It makes individuals more aware of the company goals. Most often the subordinates are concerned with their own objectives and the environment surrounding them. But with MBO, the subordinates feel proud of being involved in the organizational goals. This improves their morale and commitment.
5. Management by objectives (MBO) often highlights the area in which the employees need further training, leading to career development.
6. The system of periodic evaluation lets the subordinates know how well they are doing. Since MBO puts strong emphasis on quantifiable objectives,the measurement and appraisal can be more objective, specific and equitable.
7. It improves communication between management and subordinates.
9. The need to clarify objectives is stressed and suggestion for improvement is obtained from all levels of management.
10. All managers have a clear idea of the important areas of their work and of the standards required.
11. The performance of staff can be assumed and their needs for improvement highlighted.
Disadvantages of Management by Objectives
1. MBO can only succeed if it has the complete support of the top management.
2. Management by Objectives (MBO) may be resented by subordinates. They may be under pressure to get along with the management when setting goals and objectives and these goals may be set unrealistically high. This may lower their morale and they may become suspicious about the philosophy behind MBO.
They may seriously believe that MBO is just another of the management’s ploys to make the subordinates work harder and become more dedicated and involved. The emphasis in the MBO system is on quantifying the goals and objectives. It does not leave any ground for subjective goals. Some areas are difficult to quantify and even more difficult to evaluate.
3. There is considerable paperwork involved and it takes too much of the manager’s time. Too many meetings and too many reports add to the manager’s responsibility and burden. Some managers may resist the program because of this increased paperwork.
4. The emphasis is more on short-term goals. Since the goals are mostly quantitative in nature, it is difficult to do long-range planning because all the variables affecting the process of planning cannot be accurately forecast due to the constantly changing socio-economic and technological environment which affect the stability of goals.
5. Most managers may not be sufficiently skilled in interpersonal interaction such as coaching and counseling, which is extensively required.
6. The integration of MBO system with other systems such as forecasting and budgeting etc., is very poor. This makes the overall functioning of all systems mare difficult.
7. Group goal achievement is more difficult. When the goals of one deportment depend on the goals of another department, cohesion is more difficult to obtain. For example, the production department cannot produce a set quota if it is not sufficiently supplied with raw materials and personnel.
8. Some companies always tend to raise goals. If these are too high, employees become frustrated.
9. Appraisals are sometimes made on personality traits rather than on performance.
10. Some employees do not want to be held responsible and goals forced upon them may lead to ill-feeling.
Suggestions for Improving the Effectiveness of MBO
1. It is important to secure top management support and commitment. Without this commitment, MBO con never really be a success. The top managers and their subordinates should all consider themselves as players of the some team. This means that the superiors must be willing to relinquish and shore the necessary authority with subordinates.
2. The objectives should be clearly formulated, should be realistic and achievable. For example, it is not realistic for the department of on organization to set a goal of, say, 10 inventions per year. These goals should be set with the participation of the subordinates. They must be properly communicated, clearly understood and accepted by all. MBO works best when goals are accepted.
3. MBO should be on overall philosophy of management and the entire organization, rather than simply a divisional process or a performance appraisal technique. MBO is a major undertaking and should replace old systems rather than just being added to it., has observed, when an organization is managed by objectives, it becomes performance oriented. It grows and it develops and it becomes socially useful.
4. The goals must be continuously reviewed and modified, as the changed conditions require. The review technique should be such that any deviations are caught early and corrected.1
5. All personnel involved should be given formal training in understanding the basics as well as the contents of the programme. Such education should include as to how to set goals, the methods to achieve these goals, methods of reviews and evaluation of performance and provisions to include any feedback that may be given.
6. Management by Objectives (MBO) system is a major undertaking based upon sound organizational and psychological principles. Hence it should be totally accepted as a style of managing and should be totally synthesized with the organizational climate. All personnel involved must have a clear understanding of their role authority and their expectations. The system should be absorbed totally by all members of the organization.
Ref:(( (http://www.managementstudyhq.com/advantages-and-disadvantages-of-mbo.html, n.d.)
(http://www.yourarticlelibrary.com/management/management-by-objectives-mbo-advantages-and-disadvantages/35358, n.d.)
3.(i) Differences Between Manger and Leader
The main difference between leaders and managers is that leaders have people follow them while managers have people who work for them.
A successful business owner needs to be both a strong leader and manager to get their team on board to follow them towards their vision of success. Leadership is about getting people to understand and believe in your vision and to work with you to achieve your goals while managing is more about administering and making sure the day-to-day things are happening as they should. They have main differences between two titles.
1. Leaders create a vision, managers create goals.
Leaders paint a picture of what they see as possible and inspire and engage their people in turning that vision into reality. They think beyond what individuals do. They activate people to be part of something bigger. They know that high-functioning teams can accomplish a lot more working together than individuals working autonomously. Managers focus on setting, measuring and achieving goals. They control situations to reach or exceed their objectives.
2. Leaders are change agents, managers maintain the status quo.
Leaders are proud disrupters. Innovation is their mantra. They embrace change and know that even if things are working, there could be a better way forward. And they understand and accept the fact that changes to the system often create waves. Managers stick with what works, refining systems, structures and processes to make them better.
3. Leaders are unique, managers copy.
Leaders are willing to be themselves. They are self-aware and work actively to build their unique and differentiated personal brand. They are comfortable in their own shoes and willing to stand out. They’re authentic and transparent. Managers mimic the competencies and behaviors they learn from others and adopt their leadership style rather than defining it.
4. Leaders take risks, managers control risk .
Leaders are willing to try new things even if they may fail miserably. They know that failure is often a step on the path to success. Managers work to minimize risk. They seek to avoid or control problems rather than embracing them.
5. Leaders are in it for the long haul, managers think short-term.
Leaders have intentionality. They do what they say they are going to do and stay motivated toward a big, often very distant goal. They remain motivated without receiving regular rewards. Managers work on shorter-term goals, seeking more regular acknowledgment or accolades.
6. Leaders grow personally, managers rely on existing, proven skills.
Leaders know if they aren’t learning something new every day, they aren’t standing still, they’re falling behind. They remain curious and seek to remain relevant in an ever-changing world of work. They seek out people and information that will expand their thinking. Managers often double down on what made them successful, perfecting existing skills and adopting proven behaviors.
7. Leaders build relationships, managers build systems and processes.
Leaders focus on people – all the stakeholders they need to influence in order to realize their vision. They know who their stakeholders are and spend most of their time with them. They build loyalty and trust by consistently delivering on their promise. Managers focus on the structures necessary to set and achieve goals. They focus on the analytical and ensure systems are in place to attain desired outcomes. They work with individuals and their goals and objectives.
8. Leaders coach, managers direct.
Leaders know that people who work for them have the answers or are able to find them. They see their people as competent and are optimistic about their potential. They resist the temptation to tell their people what to do and how to do it. Managers assign tasks and provide guidance on how to accomplish them.
9. Leaders create fans, managers have employees.
Leaders have people who go beyond following them; their followers become their raving fans and fervent promoters – helping them build their brand and achieve their goals. Their fans help them increase their visibility and credibility. Managers have staff who follow directions and seek to please the boss.
Ref: (https://www.forbes.com/sites/williamarruda/2016/11/15/9-differences-between-being-a-leader-and-a-manager/#75b9fc564609, n.d.) (https://www.go2hr.ca/articles/understanding-differences-leadership-vs-management, n.d.)
(ii)Two management styles and describe how these can impact on organizational behavior
In any business organization, interactions are rationally coordinated and directed and the person at the helm of affairs is usually the manager. Organizations are set up to achieve certain goal and objectives. To meet this target, they make use of strategies to manage both human and material resources of the organization. This is referred to as the management styles. Management style is not a procedure on how to do but it is the management framework for doing. According to Watson (2003), management styles are the different styles used by the manager to influence the employees so that they will strive willingly toward the achievement of organizational goals. Management styles are the vital factor in the achievement of success of any organization. It is the prime pre-requisite for the realization of organizational objectives.
According to Prasetya and Kato (2011), the prime purpose of management style is to enhance employees’ performance so that the objective of the organization can be achieved. Kanyabi and Devi (2011) view management style as a multidimensional construct and an extremely vital criterion that determines organizational success or failure. Employee performance, on the other hand, is the important building block of an organization.
The primary objective of small scale enterprises just like any business is to make profit and achieve liquidity status. They try to achieve this by providing employment and goods and services. According to Uhl-Bien and Maslyn (2005) the effectiveness of these roles is greatly determined by the availability and accessibility to personnel, finance, machinery, raw materials and most importantly the operational management style. This is because all integrated groups need to be coordinated to achieve effective result and this is the sole responsibility of a manager. Mangers strive to achieve organization objectives, through the use of various management styles. Some of these management styles include participative, autocratic, laissez- faire, paternalistic, persuasive, democratic management style among others. Among them , I would like to discuss autocratic and democratic management style.
Autocratic Management Style
In this style, the manager tells the employees what to do. If the employees fail to fall in line, they face consequences. Employees are motivated mostly through fear of discipline. The company has specific, clear policies that employees must follow. Management isn’t interested in hearing feedback from employees.
There are some clear downsides to this style. Employees are entirely dependent on management to do their jobs, meaning that new and innovative ideas are unlikely to emerge in this system. There’s also no room for employee buy-in or value of collaboration. A lack of critical feedback means that the company will continue to use management’s worst ideas.
But there are some benefits, especially in specific situations. In the autocratic style, management sets clear expectations for what employees need to do. Each employee has a specific role in the strict hierarchy. Decision-making is also streamlined. This style may be useful in crisis situations when fast, decisive action is necessary. However, in the long term, this top-down management style isn’t going to work and it should be used rarely.
Democratic
In democratic management style, the manager allows the employees to take part in decision-making; therefore, everything is agreed upon by the majority. The communication is extensive in both directions (from employees to managers and vice-versa). In democratic management style, every employee is given a seat at the table, and discussion is relatively free- flowing. Employees are encouraged to share their thoughts, ideas, feelings that will add value to the organization. The manger takes into consideration the opinions of the employee before making a decision gains a variety of ideas from the suggestions from employees, which will lead to a better decision making outcome.
Different situations require different leadership styles. when there is little time to coverage on an agreement and quick work is required and where a designated authority has significantly more experience or expertise than the rest of the team, an autocratic management style may be most effective, however, in a highly motivated and aligned team with a homogeneous level of expertise, a more participative and democratic style may be more effective. The style should be one that most effectively meets the objectives of the team while balancing the interest of its followers and team members of that group which led by an effective leader.
Ref:(http://resources.intenseschool.com/managementleadership-styles-and-their-effects-on-organizational-performance, n.d.)
(https://www.tinypulse.com/blog/six-management-styles, n.d.)
(http://www.eajournals.org/wp-content/uploads/Management-Styles-and-Employees—-Performance-in-Small-Scale-Business-Enterprises-in-Akwa-Ibom-State-Nigeria.pdf, n.d.)
(iii)Two Leadership Styles and Suitable Leadership theory for the development of organization.
An organization’s leadership style is reflected in both the nature of that organization and its relationships with the community. If a leader is suspicious and jealous of power, others in the organization are likely to behave similarly, in dealing with both colleagues and the community. If a leader is collaborative and open, this behavior is likely to encourage the same attitudes among staff members, and to work collaboratively with other organizations.
The style of its leader is depend on organization. If the organization is to be faithful to its philosophy and mission, its leader’s style must be consistent with them. A leader concerned only with the bottom line in an organization built on the importance of human values may undermine the purpose of its work. For that reason, being guarded of both your own style as a leader and those of others you hire as leaders can be significant in keeping your organization on the right track.
Most successful leaders have strengths in several areas. They are usually self-aware, motivated, and genuine. Your strengths can help you determine which leadership style you are most comfortable with. Before you do that, it is important to answer the question: “What are Leadership Styles?” Leadership styles can be defined as the techniques in which a leader they can chooses to perform himself in order to achieve desired outcomes. Two common leadership styles are the Transformational Leadership Style and the Transactional Leadership Style. Each of these styles can be learned, however, transformational leaders are more likely to be born leaders rather than developed leaders. Below are the strengths of each.
The Transformational Leadership Style
By definition, transformational leaders have the ability to transform their followers. They can inspire their followers to achieve levels of productivity beyond their expectations and the expectations of others. This can be done through the following actions:
They communicate the vision
A transformational leader, they believe in the organization’s vision and communicate that vision to their team in a clear and clarification manner. When you believe in a vision, your passion to see that vision come to pass can create a driving force. If you are passionate about something, you can force a passion in others.
They foster a trusting environment
In order to exceed your expectations, your team needs to know whether they can trust you and their colleagues. Promoting each employee to take calculated risks can foster trust. It can help trust in each other and increase the employee’s trust in their own abilities.
They empower their people
In all of organization , they can communicated the vision and built a trusting environment. It is important to empower people. If you have already trusting environment, have already created to higher level. This is where the transformation can begin to formulate. People can become increasingly creative and excited about their goals.
The Transactional Leadership Style
The Transactional Leadership Style is based upon a transaction. Its definition is rooted in the phrase: “If you’ll scratch my back I’ll scratch yours.” They believe that people are motivated by reward and punishment. Good behavior is rewarded and bad behavior is punished. Although this leadership style is not as popular as the transformational leadership style, it is used more often and can be effective. In order to ensure the effectiveness of this style it is important to consider the following areas:
Know what motivates your employees
Each of employee will have different wants and needs in their life. It is useless to reward someone with an office with a window, when what he truly values is time-off. If you know what your employees value, you can reward them accordingly, thus making the transaction worthwhile.
Avoid using punishment as a motivator
In implementing transactional leadership styles, they can be used punishment method, it is better to avoid it. This method can be motivating but usually results in long-term negative effects and short-term positive effects.
Create a structured environment
A transactional leader, they have ability to create a structured environment. Every organization can set up goal for their employees and give them a step-by-step plan to achieve those goals, motivated by rewards for performance. If we achieve “x” we will receive “y” in return. Many people enjoy this type of environment because unknown factors are limited.
Leadership style is different on leader accomplishes and his purposes. We can determine whether the organization is effective or not on organization’s leadership style and staff members performance.
All of organization has different leadership style. It can be depends on their organization’s conception. Leadership style has variety styles, each method reflected in the way the organization operates and the way its staff members relate to one another.
Regardless of which leadership style we choose, choose the best fit for organization and our people. Recognize that both leadership styles can be learned and both can be effective.
Ref: (https://ctb.ku.edu/en/table-of-contents/leadership/leadership-ideas/leadership-styles/main, n.d.) (http://performancecritical.com/what-are-the-two-leadership-styles-you-should-adopt/, n.d.)
4.(i)Importance of employees’ motivation and job satisfaction
Importance of Employees’ Motivation
Today’s business environment as it is true with high job losses due to layoff and retrenchment to create a lean organization, it is also noteworthy for organizations to stop loses of performing employees due to decreasing job satisfaction and lack of motivation to continue with the organization for long. Motivated and satisfied employees will have committed approach towards organizational objective; in turn organizations will also have to show similar commitment towards employee objectives. The role of HR is to continuously work towards alignment of aspirations of the employee with the goals of the organization. HR manger should be created inspiring work environment which promotes and addresses employee need for growth and development. These factors although complex in nature and as they could not be addressed for individual employee basis as it may vary case to case it is important for HR to explore the common areas of intersection. Job satisfaction is studied not just to handle the turnover but also there are other adverse effects of dissatisfaction like absenteeism, low performance, lower morale, low contribution to the team, less coordination, less orientation towards organizational objective these could affect the organization capacity to compete in the highly competitive business environment.
Motivating our employees is vital to any business. Our business and achievement goals are depend on motivate workforce and highly productive staff. And this should be a main objective in our organizational and business plan.
Before build a motivational strategy, the first step we need to take is to understand what motivates our employees. What drives them to their peak performance will better help our develop programs that both the best employees for our business.
Motivation program can help employee motivation. Our plan can include everything from monetary incentives, rewards and recognitions, building programs that support work-life balance, to simply creating a fun, relaxed office environment. The opportunities are endless and the reward substantial.
Employee incentive programs are one of the easiest ways to incentivize our workforce. While not every program needs to be monetary in nature, should we have limited budgets, the end results are the same; employees become more motivated when they are recognized and rewarded for good work.
These types of programs could include anything from bonus pools, rewards recognitions such as “Employee of the Month”, to spotlighting employees on corporate websites or internal intranets. Apart of the success of the business is depend on employees feel connected.
Many employers leave feedback for their annual reviews alone; this can be detrimental. Every employees need to feel recognized and appreciated from their manger and taking time out to give a simple “thanks” for a job well done is another strong employee motivator. Frequently acknowledge good work.
Employees want to feel about they are good at their jobs; they seek face-to-face feedback from their line managers. Constructive comment and address issues are going to employees perform and for their jobs more effectively. While conducting formal reviews should be part of our ongoing strategy, periodic reviews and impromptu sessions will provide our employees with the feedback they need to succeed.
Every employees want to listen that they are being heard, and more so in team members. Encourage feedback. This will help them feel that their opinions matter and they have a role in defining the success of our business.
Every organization should be step up a positive tone. The tone of any company begins at the top and trickles down; it’s our job to inspire our employees to have and create a positive work environment. This can be accomplished by employing simple techniques from asking our receptionist to greet everyone with a smile, to encouraging employees to express their ideas openly.
The importance of employee motivation cannot be down-played. When employees are motivated, it heading to their increases productivity, lowers turnover, and improves overall performance.
Job Satisfaction
In organization , employee job satisfaction is highly important . Every employer should be understood why job satisfaction is important for an employee. Being satisfied with the job will have the employee be happy at work and result in lesser and worry. But, how does job satisfaction affect the organization? The happier the workers are, their status and mind are towards their best performance , Employees who are unsatisfied with their job ,they will be more escaping their duties and not be motivated and will not be motivated and towards any chores assigned to them, and them and higher levels of absence from work. Even when they are present, they will show very less concern in the issues of the organization, which will certainly affect the organizations’ performance negatively.
If employees are highly satisfied with their job have a tendency to be more friendly, cooperative and helpful with their colleagues and co-workers. This kind of cooperation brings in sharing and learning. Security and superior workplace feelings with lesser negativity and clashes are include in job satisfaction, thus aiding in smooth running of the organization. Thus, it can be concluded that satisfied employees are more likely to perform superior than unsatisfied ones.
In organization, the employees are happy at work, they will also deliver their best. Satisfied employees will be loyal towards their organization and stick to it even in the worst situations. Such employees don’t work out of compulsion, but out of passion. Thus, even in the worst scenarios, they will try to find possible solutions to take the organization to the next level. Employees who are not happy will never put in efforts for their job. In fact, they will think of leaving their job in case a complicate situation arises. We need to maintain talented employees for long term growth and success. We can always hire new candidates, but it is always better to have current trained employees sticking to the organization.
If the current employees in an organization are happy and passionate towards their work, it will lead to a positive ambience at the workplace and higher levels of productivity. This will in turn affect customer satisfaction and bring in more loyalty. Thus, job satisfaction holds a good relationship with the progress and success of the organization.
12 Steps or things which we can do to increase employee satisfaction and loyalty there by increasing our business revenue and profit are as follows:
1. Clear, Concise and Consistent Communication
In many organizations, employee doesn’t know what is mission, vision, objects. We should require to build a corporate culture in organization that is to be an integral part of the organization can be an effective way of getting the most from the talents or competencies brought to the organization by every employee. We should keep Employees informed on the company’s position, progress made, new challenges, and how they directly contribute to the success of the business.
2. Getting to Know Your Employees and Create a Team
Every manger should be select by the hiring suitable employee for right job and clearly communicated with employee expectations on first day. All of organization should spend time to loyalty and accountability, cheat out clear expectation and securing their commitment to the business and build a culture around working together to meet challenges, create new advantage, and propel the business to greater success.
3. Training and Other Improvement Programs
Provide necessary education, training and coaching that increases employees skills and shows the employee that you are interested in their development and readiness for new responsibility.
4. Empower Employees Across the Company
We should step up appropriate levels of new responsibility across the company. Push appropriate decision making and allow people close to the issue to make the call. Make sure your employee knows that you trust them to do their job to the best of their ability.
5.Work It
For employee satisfaction can increase such as making job rotation, job knowledge and task enlargement as well as enrichment. Target should be accessible for employee.
6. Fair Compensation and Benefits
For every organization, policies of compensation and benefits are most important part of organization. But we should build our policies at “suitability” not “the best”.
7.Opportunity for Promotion and Career Development
Every organization should be make development program in their organization. This program is going to employee’s motivation and highly performance. Organization should give opportunity to every employee for using their abilities, skills and creativeness.
8. Monitor Performance and Reward for Contribution
People naturally keep score. Use this to as advantage by monitoring positive contribution and behaviour, rewarding as appropriate. Motivate others to reach new performance levels by knowing how they measure up to expectation. We should build the proper evaluation and fair and encourage employees perform work.
9. Provide Regular, Honest Feedback
Don’t wait for a crisis situation to give feedback. Instead, we should give regular constructive input into the employee’s performance across a wide variety of issues, build trust, challenge to new levels of performance to employees and keep it real.
10. Build Corporate Culture
We should focus on making proper communication channel, good and supportive relationship with co-workers and with supervisor. Employee satisfaction can be increased by show their respect for everyone in the our organization .
11. Provide Best Equipment and Safe Working Condition
Invest in employees by making sure their tools and equipment don’t keep them from being
successful. Give them the very best tools to deliver the very best performance to the company, customers and the marketplace. Companies should build employees health and safety program.
12. Use of Information Technology
Employees are productive is essential to increased employee productivity, their satisfaction as well as profits for any organization, corporation or small business. There is no shortage of information on ways to motivate employees, but more and more companies are realizing that there is a strong correlation between flexibility in the workplace and employee satisfaction and productivity. The concept of telecommuting is certainly not new. Telecommuting program is easier to implement from technological standpoint. Concerns about cost, security, features and reliability have all been laid to rest with the introduction of hosted, Software as a Service applications. With an Internet connected computer, employees can securely access centralized data, collaborate and host interactive web meetings and presentations. The rise of cloud computing technology and Wi-Fi availability has enabled access to remote servers via a combination of portable hardware and software
Implementing an employee’s happiness plan
Happiness assessment plan is the first step toward improving their job satisfaction. Your next step should involve making sure that the discussion is turned into action. This can entail:
• Regularly updating the employee’s career development plan
• Agreeing on a flexible work schedule that takes advantage of those times of day when the employee is most productive and engaged
• Suggesting stress-reducing activities, such as a health and fitness program
• Calling a team meeting , discuss and sorting out any team-related problems that are present
• Their next job satisfaction review and suggestion points.
The happiest employees feel supported by peers and managers, are passionate about their work, and have the tools and resources they need to be effective. Open and honest discussion with our employees is an important first step towards making these a reality.
Ref: (http://www.americasjobexchange.com/employer/employer-articles/employee-motivation, n.d.)
(http://indianresearchjournals.com/pdf/IJSSIR/2017/February/2.pdf, n.d.)
(https://www.roberthalf.com.au/blog/employers/why-you-should-discuss-job-satisfaction-your-employees, n.d.)http://www.idealhrservice.in/blog/job-satisfaction-important/
(http://www.academia.edu/9419101/A_STUDY_ON_JOB_SATISFACTION_AMONG_EMPLOYEES_JOB_SATISFACTION, n.d.)
(ii)Effective control can improve organizational performance
Effective organization is one where managers understand how to manage and control to employees. Effective control process is to help motivate and direct employees in their roles. Manager should be understanding managerial control process and system is essential for the long-term effectiveness of organization.
Without enough control systems in place, confusion and chaos can overwhelm an organization. However, if control systems are “choking” an organization, the organization will suffer from erosion of innovation and entrepreneurship.
Many people are averse to the concept of control for the following reasons:
(i) New, more “organic” forms of organizations (self-organizing organizations, self- managed teams, network organizations, etc.) allow organizations to be more responsive and adaptable in today’s rapidly changing world. These forms also cultivate empowerment among employees, much more than the hierarchical, rigidly structured organizations of the past.
(ii) Many people assert that as the nature of organizations has changed so must the nature of management control. Some people go so far as to claim that management shouldn’t exercise any form of control whatsoever.
They claim that management should exist to support employee’s efforts to be fully productive members of organizations and communities – therefore, any form of control is completely counterproductive to management and employees.
(iii) Some people even react strongly against the phrase “management control”. The word itself has a negative connotation, e.g., it can sound dominating, coercive and heavy-handed. It seems that writers of management literature now prefer use of the term “coordinating” rather than “controlling”.
(iv) People also oppose controls as they are thought of decreasing autonomy, stifling creativity, threatening security, and perpetuating oppression. This may lead to change in expertise and power structure, and social structure in the organization.
Types of Control:
Controls can be numerous in kind. These may be classified on the basis of (a) timing, (b) designing systems, (c) management levels, and (d) Responsibility
On the basis of timing:
Control can focus on events before, during, or after a process. For example, a local automobile dealer can focus on activities before, during, or after sales of new cars. Such controls may be respectively called as Preventive, Detective, and Corrective.
On this basis the control may be:
(i) Feed forward Control
(ii) Concurrent Control
(iii) Feedback Control
1. Feed forward Control:
The objective of feed forward control or preliminary control is to anticipate the likely problems and to exercise control even before the activity has started or problem has occurred or been reported. It is future directed.
This kind of control is very popular in airlines. They go in for preventive maintenance activities to detect and prevent structural damage, which may result in disaster. These controls are evident in the selection and hiring of new employees. It helps in taking action beforehand.
In case of feedback control, one relies on historical data, which will come after the activity has been performed. This means information is late and the rectification is not possible. One can make correction only for future activities.
That means whatever wrong has been done is done, and it cannot be undone. Though, future-directed control is largely disregarded in practice, because managers have been excessively dependent on accounting and statistical data for the purpose of control. In the absence of any means of looking forward, reference to history is considered better than no reference at all.
However, the concept of feed forwarding has been applied now and then. One common way managers have practiced it is through careful and repeated forecasts using the latest available information, comparing what is desired with the forecasts, and introducing program changes so that forecasts can be made more promising.
2. Concurrent Control:
Concurrent control monitors ongoing employee activity to ensure consistency with quality standards takes place while an activity is on or in progress. It involves the regulation of ongoing activities that are part of transformation process to ensure that they conform to organizational standards.
The technique of direct supervision is the best-known form of concurrent control. Concurrent control is designed to ensure that employees’ activities produce the correct results and to correct the problems, if any, before they become costly.
In case of computer typing, if the spelling is wrong or construction is incorrect, the programme immediately alerts the user. Many manufacturing operations include devices that measure whether the items being produced meet quality standards.
Since concurrent control involves regulating ongoing tasks, it requires a complete understanding of the specific tasks involved and their relationship to the desired and product.
Concurrent control sometimes is called steering, screening or yes-no control, because it often involves checkpoints at which decisions are made about whether to continue progress, take corrective action, or stop work altogether on products or services.
3. Feedback Control:
The control takes place after the job is over. Corrective action is taken after analyzing variances with the planned standards at the end of the activity. It is also known as ‘post action control’, because feedback control is exercised after the event has taken place.
Such control is used when feed forward or concurrent is not possible or very costly; or when exact processes involved in performing a work is difficult to specify in advance.
Advantages of feedback control are that meaningful information is received with regard to planning efforts, and enhances employee motivation.
Controls at every level focus on inputs, processes and outputs. It is very important to have effective controls at each of these three stages.
Effective control systems tend to have certain common characteristics. The importance of these characteristics varies with the situation, but in general effective control systems have following characteristics.
1. Accuracy:
Effective controls generate accurate data and information. Accurate information is essential for effective managerial decisions. Inaccurate controls would divert management efforts and energies on problems that do not exist or have a low priority and would fail to alert managers to serious problems that do require attention.
2. Timeliness:
There are many problems that require immediate attention. If information about such problems does not reach management in a timely manner, then those information may become useless and damage . Accordingly controls must ensure that information reaches the decision makers when they need it so that a meaningful response can follow.
3. Flexibility:
Economic and Business sectors has highly dynamic in nature. Today, Technological changes occur very fast. A rigid control system are not suitable for a changing environment. These changes highlight the need for flexibility in planning as well as in control. Strategic planning must allow for adjustments for unanticipated threats and opportunities. Similarly, managers must make modifications in controlling methods, techniques and systems as they become necessary. Effective control system is one that can be updated quickly as the need arises.
4.Economic feasibility:
The cost of a control system must be balanced against its benefits. The system must be economically feasible and reasonable to operate. For example, a high security system to safeguard nuclear secrets may be justified but the same system to safeguard office supplies in a store would not be economically justified. Accordingly the benefits received must outweigh the cost of implementing a control system.
5. Strategic placement:
Effective controls should be pride of place at such critical and strategic control points where failures cannot be forbore and where time and money costs of failures are greatest. Controls is essential apart of business where deviation from expected standards will make greatest.
To apply controls to the essential aspect of a business where a deviation from the expected standards will do the greatest harm. Production, sales, finance and customer service are include in control areas.
6. Emphasis on exception
If a effective system of control should work on principle. Important ways are bought to attention of management, because does not have to bother with activities that going cleanly . In Managerial attention is directed towards falseness and not conformity. This would eliminate unnecessary and uneconomic ,marginally beneficial reporting and waste of time.
Ref : (http://www.yourarticlelibrary.com/management/managerial-control-process-its-characteristics-importance-techniques-and-other-details/5383, n.d.) (http://www.yourarticlelibrary.com/management/9-characteristics-of-an-effective-control-systems-explained/3511, n.d.)
