PMOB ASSIGNMENT-1

III B.Tech EEE 2

KONKALA SHASHANK GOUD

18071A0287
1. How Fayol’s principles will helpful to an effective management and
explain it.
A: Henry Fayol, also known as the ‘father of modern management theory’
gave a new perception of the concept of management. He introduced a general
theory that can be applied to all levels of management and every department. The
Fayol theory is practised by the managers to organize and regulate the internal
activities of an organization. He concentrated on accomplishing managerial
efficiency.
The fourteen principles of management created by Henri Fayol are explained
below.
1. Division of Work
Henri believed that segregating work in the workforce amongst the worker will
enhance the quality of the product. Similarly, he also concluded that the division
of work improves the productivity, efficiency, accuracy and speed of the workers.
This principle is appropriate for both the managerial as well as a technical work
level.

2. Authority and Responsibility

These are the two key aspects of management. Authority facilitates the
management to work efficiently, and responsibility makes them responsible for
the work done under their guidance or leadership.

3. Discipline
Without discipline, nothing can be accomplished. It is the core value for any
project or any management. Good performance and sensible interrelation make
the management job easy and comprehensive. Employees good behaviour also
helps them smoothly build and progress in their professional careers.

4. Unity of Command
This means an employee should have only one boss and follow his command. If
an employee has to follow more than one boss, there begins a conflict of interest
and can create confusion.

5. Unity of Direction
Whoever is engaged in the same activity should have a unified goal. This means
all the person working in a company should have one goal and motive which will
make the work easier and achieve the set goal easily.
6. Subordination of Individual Interest
This indicates a company should work unitedly towards the interest of a company
rather than personal interest. Be subordinate to the purposes of an organization.
This refers to the whole chain of command in a company.

7. Remuneration
This plays an important role in motivating the workers of a company.
Remuneration can be monetary or non-monetary. However, it should be
according to an individual’s efforts they have made.

8. Centralization
In any company, the management or any authority responsible for the decision-
making process should be neutral. However, this depends on the size of an
organization. Henri Fayol stressed on the point that there should be a balance
between the hierarchy and division of power.

9. Scalar Chain
Fayol on this principle highlights that the hierarchy steps should be from the top
to the lowest. This is necessary so that every employee knows their immediate
senior also they should be able to contact any, if needed.

10. Order
A company should maintain a well-defined work order to have a favourable work
culture. The positive atmosphere in the workplace will boost more positive
productivity.

11. Equity
All employees should be treated equally and respectfully. It’s the responsibility
of a manager that no employees face discrimination.

12. Stability
An employee delivers the best if they feel secure in their job. It is the duty of the
management to offer job security to their employees.

13. Initiative
The management should support and encourage the employees to take initiatives
in an organization. It will help them to increase their interest and make then worth.

14. Esprit de Corps

It is the responsibility of the management to motivate their employees and be
supportive of each other regularly. Developing trust and mutual understanding
will lead to a positive outcome and work environment.

This 14 principles of management are used to manage an organization and are

beneficial for prediction, planning, decision-making, organization and process
management, control and coordination.
2. Explain in detail about nature and characteristics of organizing?
A: According to Koontz and O’Donnell, “Organization involves the grouping
of activities necessary to accomplish goals and plans, the assignment of these
activities to appropriate departments and the provision of authority, delegation
and co-ordination.” Organization involves division of work among people whose
efforts must be co-ordinated to achieve specific objectives and to implement pre-
determined strategies.

CHARACTERISTICS OF ORGANIZING
From the study of the various definitions given by different management experts
we get the following information about the characteristics or nature of
organization,

1) Division of Work:
Division of work is the basis of an organization. In other words, there can be no
organization without division of work. Under division of work the entire work of
business is divided into many departments .The work of every department is
further sub-divided into sub works.
In this way each individual has to do the work repeatedly which gradually makes
that person an expert.

2) Coordination:
Under organizing different persons are assigned different works but the aim of all
these persons happens to be the some – the attainment of the objectives of the
enterprise. Organization ensures that the work of all the persons depends on each
other’s work even though it happens to be different. The work of one person starts
from where the work of another person ends. The non-completion of the work of
one person affects the work of everybody. Therefore, everybody completes his
work in time and does not hinder the work of others. It is thus, clear that it is in
the nature of an organization to establish coordination among different works,
departments and posts in the enterprise.

3) Plurality of Persons:
Organization is a group of many persons who assemble to fulfil a common
purpose. A single individual cannot create an organization.

4) Common Objectives:
There are various parts of an organization with different functions to perform but
all move in the direction of achieving a general objective.

5) Well-defined Authority and Responsibility:

Under organization a chain is established between different posts right from the
top to the bottom. It is clearly specified as to what will be the authority and
responsibility of every post. In other words, every individual working in the
organization is given some authority for the efficient work performance and it is
also decided simultaneously as to what will be the responsibility of that individual
in case of unsatisfactory work performance.

6) Organization is a Structure of Relationship:

Relationship between persons working on different posts in the organization is
decided. In other words, it is decided as to who will be the superior and who will
be the subordinate. Leaving the top level post and the lowest level post
everybody is somebody’s superior and somebody’s subordinate. The person
working on the top level post has no superior and the person working on the
lowest level post has no subordinate.

7) Organization is a Machine of Management:

Organization is considered to be a machine of management because the efficiency
of all the functions depends on an effective organization. In the absence of
organization no function can be performed in a planned manner. It is appropriate
to call organization a machine of management from another point of view. It is
that machine in which no part can afford tube ill-fitting or non-functional. In other
words, if the division of work is not done properly or posts are not created
correctly the whole system of management collapses.

8) Organization is a Universal Process:

Organization is needed both in business and non business organizations. Not only
this, organization will be needed where two or mom than two people work jointly.
Therefore, organization has the quality of universality.

9) Organization is a Dynamic Process:

Organization is related to people and the knowledge and experience of the people
undergo a change. The impact of this change affects the various functions of the
organizations. Thus, organization is not a process that can be decided for all times
to come but it undergoes changes according to the needs. The example in this
case can be the creation or abolition of a new post according to the need.
3. Explain briefly about different motivational theories.
A: The different types of motivational theories are:
1. Maslow’s Hierarchy of Needs
Maslow described needs in terms of a hierarchy. The concept being that needs
at the bottom of the hierarchy must be satisfied before an individual can move
to the next level and seek to satisfy those needs.
Now, each individual’s needs are changing all the time, but at any time, an
employer can use the hierarchy to try and determine what is going to motivate
an employee.
The five levels of the hierarchy are:
 Physiological needs: such as food and water.
 Safety needs: such as being free from war, natural disasters, and having
job security.
 Social needs: such as having relationships and belonging to groups.
 Esteem needs: such as receiving praise, recognition, and status.
 Self-actualization needs: such as wanted to be the best we can be.
When using Maslow’s Hierarchy of Needs, a business should offer different
rewards to encourage employees to keep moving up the hierarchy. This will
keep employees motivated.
2. Herzberg’s Two Factor Theory
Herzberg argued that there are two factors which are essential in the motivation
of employees. These are motivators and hygiene factors.
 Motivators: these encourage employees to work harder if present.
Examples of motivators include having an interesting job, advancement,
and growth.
 Hygiene factors: These don’t encourage employees to work harder, but
they will cause them to become unmotivated if they are not present.
Examples of hygiene factors include working conditions and
remuneration.
Herzberg’s Two Factor Theory believed that to motivate employees, employers
should:
 Eliminate job hygiene stressors: remove those things that are causing
poor job satisfaction, for example, poor working conditions.
 Boost job satisfaction: through job enrichment (making the job more
interesting by giving it more complex tasks) and job empowerment
(making the post more satisfying by giving it a greater variety of
functions).
 Empower employees: by delegating increasing responsibility to each
employee.
3. McGregor’s Theory X and Theory Y
McGregor’s Theory X and Theory Y puts employees into two broad categories.
a. Theory X
Theory X assumes that team members are intrinsically lazy and unmotivated,
and will avoid doing work if any opportunity presents itself.
Because of this, management must work tirelessly and continually to build
systems of control and supervision over employees.
b. Theory Y
Theory Y assumes that team members are ambitious and self-motivated. A
Theory Y manager holds the view that if provided with the right conditions,
team members will perform well.
McGregor himself was in favor of adopting a Theory Y style of management in
most cases. Employers looking to use Theory Y might:
 Use job enlargement to increase job satisfaction.
 Use a collaborative style of management, so employees feel they are a
crucial part of decision making.
 Set targets that encourage employees to challenge themselves.
4. Alderfer’s ERG Theory
You can think of the ERG Theory of Motivation is being a simplified version of
Maslow’s Hierarchy of Needs.
In ERG Theory, there are three needs which are also arranged in a hierarchy.
 Existence needs: These needs concern your physical well being. These
are needs, such as food, water, and feeling safe.
 Relatedness needs: These needs concern your need to relate to other
people. They are needs, such as the need to have positive interactions
with others.
 Growth needs: These needs refer to our personal development needs and
desire to perform meaningful work. For example, an exciting job with
lots of small growth opportunities every day to learn something new will
tend to keep us motivated.
There are a couple of differences to Maslow’s Hierarchy of Needs.
Firstly, you can pursue multiple needs at the same time. Secondly, if a higher
level need is not satisfied, then you may regress and seek to meet lower level
needs further.
4. Explain in detail about McGregor theory X and theory Y and Alderfer’s ERG
theory
A:
McGregor theory X and theory Y
Douglas McGregor work is established in motivation theory. Mr. McGregor
postulated 2 theories on human management and leadership which are Theory X
and Theory Y.
Theory X advanced the view that human beings have an innate dislike for
work. They can only be made to get results at work by the application of
coercive methods and by direction. Theory X stresses on the authoritarian style
of leadership where results are the focus of leadership and it is more work-
centered than people-centered.
Theory Y approach to management is more people-centered. Here the
individual is valued and appreciated. Theory Y submits that when workers are
given the right kind of environment, they can reach their highest potential and
can be of great value to their organizations.
A few numbers of authors consider McGregor’s work as a basic theory of
motivation, whereas others feel it is a philosophy of human nature and fits more
logically into a discussion of leadership than basic motivation theories.

McGregor’s ideas about leadership and managerial behavior had a great effect
on management and leadership thinking and practice. Traditional leadership had
been hierarchical and highly controlling where employees always looked up to
leaders and depended on them.
This could be very disempowering and a waste of human talent and potential.
McGregor thought that if leaders did not scrutinize certain core assumptions
they have about people; it could restrict their appreciation and view of the
strength of the human capacity for growth, collaboration, and development.
McGregor postulated, that leaders who hold Theory X assumptions believe that
people are lazy, abhor responsibility and not motivated and therefore need to be
coerced before they will work and show commitment.
Such a leadership assumption leads to very close supervision and control of
workers and siphons the ingenuity of workers and results in a lack of motivation
in workers.
Leaders, who practice Theory Y assumptions, on the other hand, involves
workers to engage in joint problem solving, to understand the needs of team
members and to integrate personal needs of achievement with organizational
objectives.
Although with such an approach the leader facilitates and initiates the control
process, it is done with the involvement of the workers in mind and can be
encouraging and motivating for them.

Alderfer’s ERG theory

Alderfer’s ERG Theory is the extension of Maslow’s Needs Hierarchy,

wherein the Maslow’s five needs are categorized into three categories, Viz.
Existence Needs, Relatedness Needs, and Growth Needs.
An American psychologist Clayton Paul Alderfer had proposed this theory and
believed that each need carries some value and hence can be classified as lower-
order needs and higher-order needs. He also found some level of overlapping in
the physiological, security and social needs along with an invisible line of
demarcation between the social, esteem and self-actualization needs. This led to
the formation Alderfer’s ERG theory, which comprises of the condensed form
of Maslow’s needs.
Existence Needs: The existence needs comprises of all those needs that relate
to the physiological and safety aspects of human beings and are a prerequisite
for the survival. Thus, both the physiological and safety needs of Maslow are
grouped into one category because of their same nature and a similar impact on
the behavior of an individual.
Relatedness Needs: The relatedness needs refer to the social needs, that an
individual seeks to establish relationships with those for whom he cares. These
needs cover the Maslow’s social needs and a part of esteem needs, derived from
the relationship with other people.
Growth Needs: The growth needs cover Maslow’s self-actualization needs as
well as a part of esteem needs which are internal to the individual, such as a
feeling of being unique, personnel growth, etc. Thus, growth needs are those
needs that influence an individual to explore his maximum potential in the
existing environment