INTERNAL ORGANISATION OF THE FIRM

Functional areas of Business

Functions of Management
Responsibilities of management
Organizational Charts
Characteristics of a Good leader
Leadership styles
Sources of Conflict within an Organisation
Methods used to gain upper-hand during periods of conflict
Strategies used to resolve conflict
Good Management and Staff Relations
Teamwork
Effective Communication
Management Information Systems
Personal needs satisfied through Employment

Functional Areas of Business

Departments in a business organization are structured according to certain functions. 
The departments of various organizations will differ depending on the type of business.
Below are four main functions that tend to be general to most organizations.

Production – Plans and regulates the transformation of raw materials into a final good
or service. It is concerned with:
 Purchasing raw materials for sale and storing them in an appropriate place
 Manufacturing goods from the design stage to completed product
 Conducting quality control
 Organising production within a certain time frame.

Finance/Accounts - Is responsible for:

 Producing the annual balance sheet and other records
 Advising management on the availability of capital for expansion and plant
building
 Making all payments and issuing receipts
 Maintain satisfactory cash-flow position

Marketing – Ensures that maximum volume of goods produced are sold, thus is
responsible for
 Assessing market possibilities, by market research and sales forecasting
 Advertising and sales promotion
 Distribution of products

Personnel/Human Resources – Is concerned with:

  The recruitment of labour
 Efficiency and training of staff
 Contentment and welfare of staff
 Public relations / creating favourable image of company

Functions of management
Planning
Planning is deciding in advance what to do, how to do and who is to do it. Planning
bridges the gap between where we are to, where we want to go.
Planning takes into consideration available & prospective human and physical resources
of the organization so as to get effective co-ordination, contribution & perfect
adjustment.
In planning a manager must determine what the organizations goals are and how to
achieve those goals. . Much of this information will come directly from the vision and
mission statement for the company.
 The mission of the business is the most obvious purpose—which may be, for
example, to make soap.
 The vision of the business reflects its aspirations and specifies its intended di-
rection or future destination.
 The objectives of the business refer to the ends or activity at which a certain
task is aimed.

Organising
Organising is the function of management which follows planning. It is the
synchronization and combination of human, physical and financial resources takes
place. All the three resources are important to get results.

Directing
Directing is the process in which the managers instruct, inspire, guide and oversee the
performance of the workers to achieve predetermined goals. In simple words, it can be
described as providing guidance to workers is doing work.
In analyzing this definition, it is understandable why authors include both “Delegating”
and “Motivating” in the function of “Directing” and we can understand that in the field
of management, direction is all those activities which are designed to encourage the
subordinates to work effectively and efficiently.

Controlling
Controlling consists of verifying whether everything occurs in conformity with the plans
adopted, instructions issued and principles established. It ensures that there is effective
and efficient utilization of organizational resources so as to achieve the planned goals.
Controlling measures the deviation of actual performance from the standard perfor-
mance, discovers the causes of such deviations and helps in taking corrective actions.
Coordinating
Co-ordination is the unification, integration, synchronization of all the efforts of
group members so as to provide unity of action in the pursuit of common goals.
It is a hidden force which binds all the other functions of management.
Management seeks to achieve co-ordination through its basic functions of plan-
ning, organizing, directing and controlling. That is why co-ordination is not a
separate function of management because achieving harmony between the indi-
vidual efforts towards achievement of group goals is key to the success of man-
agement.
A manager can be compared to an orchestra conductor since both of them have to
create rhythm and unity in the activities of individual group members.

Delegating
Delegation is an approach to get things done, in conjunction with other employees. It
generally includes assigning responsibility to an employee to complete a task, granting
the employee sufficient authority to gain the resources to do the task and letting the
employee decide how that task will be carried out. Typically, the person assigning the
task shares accountability with the employee for ensuring the task is completed.

Motivating
Motivating is the process of influencing people to accomplish specific objectives. An
employee who is motivated will have the desire to do a specific task in such a way that
much effort is expended trying to achieve the goal
Objectives, strategies, and policies have little chance of succeeding if employees and
managers are not motivated to implement strategies once they are formulated.

Factors affecting motivation

o Rate of pay – salary
o Other benefits and bonuses (remuneration package) such as
o Education allowance
o Traveling allowance
o Commissions an d bonuses based on performance
o Subsidised means and clothing
o Company loans on low rate of interest
o Length of working hours
o Job security
o Work environment
o Prospects for promotipn
o Paid vcation and leave benefits
o Company discounts
o Perks such as health planand ension
o Taxation rates
Motivational theories – The hierarchy of needs theory
The great American psychologist Abraham Maslow was responsible for developing the
now famous hierarchy of needs. He proposed that human beings have built in needs
that are arranged in order of importance, similar to a pyramid with the most basic
needs forming the base. The first four levels are referred to as deficit needs, meaning
that most people are only really aware of them if they are not being met - in other
words, if there is a deficit!

Human needs start at the physiological level. Air comes first, then water, food, and
sex. These are linked to primitive drives - we cannot survive without them. (Some
argue that sex should not be included as a basic need, but at the most primitive level it
is mandatory for survival of the species.)
Next come the safety needs; the drive to secure shelter, warmth and light. Without
these we may or may not survive, but the lack of them is keenly felt. In the modern
world, a job, a stable home life and a secure future also reside on this level.
The next step up the ladder brings us to the belonging needs. This is the desire for
love and acceptance from others. We need social interaction, friends, partners, and the
emotional connection to other humans. Without these we can suffer from fear, loneli-
ness and anxiety.
Near the top lie the Esteem needs, and this is where the pyramid gets shaky for many
people! We need respect and approval from others and respect and approval from our-
selves. Lack of these things is what causes a loss of self respect, low self-esteem and
inferiority complexes.
At the very top of the pyramid lies what Maslow called the being needs, or in
his term, ‘self-actualization’. Fulfilling these needs doesn’t just bring you up from a
negative state to a state of balance - meeting these needs puts you over the top into a
positive state where you are constantly able to improve yourself and become a
stronger, better you. There is no limit - you can keep pushing yourself further and
higher! This is where true happiness, success and contentment can be found.
Maslow's theory suggests that the most basic level of needs must be met before the in-
dividual will strongly desire (or focus motivation upon) the secondary or higher level
needs.

Responsibilities of management
o To the owners
 To achieve the highest rate of profit
 To reinvest the profit in the firm to ensure growth and development
 To protect and maintain the assets
 To provide information, i.e. annual report and balance sheet

o To the employees
 To provide fair wages
 To provide protection against unfair dismissal
 To provide safe working conditions and equipment
 To provide proper training and education
 To provide medical assistance if working with dangerous chemicals
 To provide compensation for job-related injuries
 To not discriminate, especially against union members

o To the customers
 To provide good quality goods or services at reasonable prices
 To carry out fair trading practices
 To conduct research and development in order to improve quality and price
 To provide compensation to customers for injuries on the business compound
 To guard against misleading advertising
 To deliver orders on time

o To society
 To avoid pollution to the environment
 To conserve scarce resources
 To preserve local culture and tradition

o To the government
 To adhere to and observe the laws of the country
 To observe international and domestic trade regulations
 To pay taxed when due
  To honour all state contracts in a professional manner

Organisational Structure
Is the well planned relationship among the individuals in the organisation and the
functions they perform according to the goals of the firms.
The organizational structure of a firm is influenced by the size of the organization.

Organisational structure is shown in organizational charts

Organizational Charts
An organizational chart is a diagram of the organization of an enterprise. Its pyramid
shape illustrates the hierarchy system that exists in the organization. The most senior
position in the organization is placed by itself at the apex. The pyramid gets wider to-
wards the bottom depicting the greater number of workers at its base.

Those who have the power to issue commands have authority in an organization. In the
organization chart above the sales manager has the authority in the Sales department. 
All persons with the same level of authority are placed at the same level on the chart.
For example the sales manager and the accounts manager have the same level of au-
thority in their various departments.

Responsibility is the capacity to accept duties and to carry out their tasks. Both sales
supervisors are responsible to the sales manager.
The chart shows the following:
-each person’s position
-the number of levels of managers
-to whom each employee is responsible (reports) to
-the span of or (area) of control for senior staff members.
Forms of structure
1. Line or Direct Organisation
Line authority flows down the chain of command. For example, line authority gives a
production supervisor the right to direct an employee to operate a particular machine,
and it gives the vice president of finance the right to request a certain report from a de-
partment head. Therefore, line authority gives an individual a certain degree of power
relating to the performance of an organizational task.
Two important clarifications should be considered, however, when discussing line au-
thority: (1) line authority does not ensure effective performance, and (2) line authority
is not restricted to line personnel. The head of a staff department has line authority
over his or her employees by virtue of authority relationships between the department
head and his or her directly-reporting employees

The line organizational chart depicts a straight line of command. Authority is said to
flow downwards only in the line organization. The line organizational structure is found
in schools or in the military.

2. Staff Organisation

The Staff organizational chart combines the line and functional organization with the
addition of staff personnel. Staff workers assist and advise line workers. Staff workers
 include consultants, advisors, company lawyers, executive secretary, auxiliary workers
etc.  Staff officers do not have authority, that is, the power to delegate tasks to subor-
dinates in the organization. Their main role is to advise and assist line officers. This is
why there are no vertical lines connecting staff officers to any other member of staff on
the chart. They are therefore, placed at the side directly below the line officer whom
they assist or advise.

Staff Organizational Chart

Difference between Line and Staff

Line authority - in which individuals in management positions have the formal power
to direct and control immediate subordinates. 
Staff authority - granted to staff specialists in their areas of expertise. Narrower than
line authority and includes the right to advise, recommend, and counsel in the staff spe-
cialists' area of expertise. It is a communication relationship with management. It has
an influence that derives indirectly from line authority at a higher level.
and take a human resource manager as an instance
 A HR manager has line authority over the staff of the HR department and staff au-
thority to support , assist , and advise mangers of other Departments in matters re-
lated to HR management

3. Functional Organisation
Functional authority is referred to as limited line authority. It gives a staff person power
over a particular function, such as safety or accounting. Usually, functional authority is
given to specific staff personnel with expertise in a certain area. For example, members
of an accounting department might have authority to request documents they need to
prepare financial reports, or a human resource manager might have authority to ensure
that all departments are complying with equal employment opportunity laws. Functional
authority is a special type of authority for staff personnel, which must be designated by
top management.

The Functional organizational chart combines the straight line of command of the line
organization with horizontal dotted diagonal lines representing functional authority. The
dotted diagonal lines in the figure above show the authority that the Human Resource
Manager has over other departments. The Human Resource Manager is allowed author-
ity in these department over human resource matters only e.g. to hire and fire workers.
He therefore cannot give directives on production or marketing matters.

Committee Organizational Chart

Committees are advisory bodies. They are a group of people delegated by a higher au-
thority to achieve an objective, usually appointed to advise organizations.   Examples of
committees include; parent teachers associations and student councils which are com-
mittees within a school organization.
Types:
  Adhoc – is appointed to achieve one task and is disbanded when the task
is complete
 Standing – has a more permanent role and meets and regular intervals

Organisational Charts
Vertical
Horizontal
Circular

Departmentalisation
Large firms are organised into smaller units or departments
By function
By process or equipment
By geographic territory
By product
By customer/client

Characteristics Of A Good Leader

A leader is someone who has been given authority over a group of individuals. His job
is to motivate the group to achieve the goals set out for it.  Leadership is therefore
about influencing or inspiring an organized group towards the accomplishment of goals.
Below are the characteristics of a good leader.
 
Integrity
It is important for a leader to possess this quality as it makes them trustworthy. They
are perceived as honest and therefore command the respect of their subordinates.
 
Good communication skills
Leaders should be able to communicate effectively with persons at all levels of the or-
ganization. Manager must pass down directives as well as listen to workers opinions
complaints and ideas. This will foster good working relations among leader and follow-
ers.
 
Intelligent  
This is a very important characteristic for leaders. It refers to being rational and having
good judgment when making decisions. Leaders are decision makers and therefore
need to be intelligent.  This characteristic also refers to shrewdness and therefore de-
scribes someone who is smart, perceptive and wise.
 
Devoted and Committed
A leader must be a role model for others.  He/she should therefore believe in the goals
of the group and motivate others to achieve it. His/her continuous hard work will por-
tray dedication and loyalty to duty.

Leadership Styles

Autocratic
This type of leader makes all decisions and asks members only to be obedient in follow-
ing orders.  He will give detailed instructions and closely supervise subordinates.
Advantage
Time is not wasted consulting with others to reach a decision.
Disadvantage
Workers must comply with directives given by the leader and therefore the organization
will not benefit from workers initiative and innovative ideas

Democratic
A democratic leader allows the participation of subordinates in decision making.  The
leader asks for progress reports at intervals instead of continuous close supervision.
Advantage
Discussion between management and workers leads an improved relationship.
Disadvantage
The variety of opinions to consider may slow down the decision making process.

Laissez-Faire
This type of leader will give minimum directives and allow maximum freedom for work-
ers to make decisions about completing their tasks.
Advantage
The firm will benefit from the initiative and innovation of workers.
Disadvantage
It may lead to chaos in the organization. This type of style can only be used with per-
sons that are very self- motivated and disciplined.
 Sources Of Conflict Within An Organization
Unfair treatment of workers
Unfair dismissal
Discrimination

Health related issues

The need for protective clothing
Poor ventilation
Harmful fumes from chemicals
 
Wages and fringe benefits
Nonpayment of allowances
Underpayment

Methods Used To Gain An Upper Hand During Periods Of Conflict

Workers organize themselves to collectively deal with conflicts. This is done through the
trade union. A Trade Union is an organization of persons employed in an industry who
have joined together in order to improve their wages and working conditions.
Methods used by Trade Unions 
1. Strikes
2. Sick-out
3. Work-to-rule
4. Go slow
5. Picketing
Methods used by employers during conflicts
Union busting
Union busting is the prevention by management of the formation of a trade union
within its organization. The employer may explicitly state this to workers or covertly dis-
courage its formation.
Lock out
A lockout refers to the refusal by an employer to allow workers into the business place
during an industrial dispute. This is a means of coercing workers to comply with man-
agement.
Scab labour
This is a derogatory term used to refer to workers hired to replace workers on strike.

TRADE UNIONS

Definition
Is an organisation of persons employed in an industry who have joined together in
order to to achieve common goals such as better working conditions and wages

Main Goals
o To achieve economic and political emancipation of all citizens and by extension all
West Indian people
o To secure better wages and improved working conditions for the working classes

Roles
o to regulate relations between workers (its members) and the employer,
o to negotiate wages and working condition terms,
o to take collective action to enforce the terms of collective bargaining,
o to raise new demands on behalf of its members,
o to protect workers against arbitrary disciplinary actions
o to help settle their grievances.

Classification
o Industrial union: represents members all in the same industry
o Staff union: represents interests only white-collar workers (clerks ad office staff)
o General union: represents workers from several firms from the same industry. Also
called industrial union.
o Craft union: represents skilled workers in a particular field such as carpentry or
welding.

Activities
o Collective bargaining: Trade unions negotiate with employers over wages and
working conditions.
o Social activities: Trade unions perform social functions by looking after sick,
unemployed and retired members
o Political activities: Trade unions may promote legislation favorable to the interests
of their members or workers as a whole. To this end they may pursue campaigns,
undertake lobbying, or financially support individual candidates or parties
o Educational activities: Trade unions assist in the further education of their members
and their children

Industrial Action
o Picketing: Workers congregate outside of the work place and dissuade others from
going in ("crossing the picket line"), but it can also be done to draw public attention
to a cause.
o Strike action: Workers down tools (stop work)
o Work to rule. Workers continue to work but only do exactly what is required
(nothing extra). This often slows production.
o Closed shop: A shop in which persons are required to join a particular union as a
precondition to employment and to remain union members for the duration of their
employment.
o Go slow: Workers go about their duties at a very slow pace, (without breaking
company regulations)

Conflict Resolution Strategies

o Mediation: An attempt is made with management in the presence of the labour
commission to settle the dispute.
o Conciliation: An attempt is made to settle the dispute by including the presence of
the labour minister
o Arbitration: The dispute is referred to a panel (third party) who must be impartial in
their judgement and whose decision must be accepted by all parties.
o Trade union representation: (Shop steward): Is an official of the trade union who is
also an employee of the business

Criticisms
o Trade unions are sometimes accused of holding society ransom by taking strike
actions that result in the disruption of public services.
o Trade unions frequently produce higher wages at the expense of fewer jobs, and, if
some industries are unionized while others are not, wages will decline in non-
unionized industries.
o By raising the price of labour, the wage rate, above the equilibrium price, unemploy-
ment rises. This is because it is no longer worthwhile for businesses to employ those
laborers whose work is worth less than the minimum wage rate set by the unions.
As such, Governments may seek to reduce union powers in order to reduce unem-
ployment.
o Trade unions often benefit insider workers, those having a secure job and high pro-
ductivity, at the cost of outsider workers, consumers of the goods or services pro-
duced, and the shareholders of the unionized business. The ones who are likely to
 lose the most from a trade union are those who are unemployed or at the risk of un-
employment or who are not able to get the job that they want in a particular field.

Strategies Used To Resolve Conflicts

Collective Bargaining  
Collective bargaining is the process whereby the union representative on behalf of the
employees and management, negotiate the terms of their agreement which are incor-
porated in the employees’ contract of employment.  It is a means to reach an agree-
ment between trade unions and employers.

The Grievance Procedure

A grievance is a complaint of a worker.  A worker will have a complaint when:
a. he is treated unfairly. (e.g. cases of discrimination)
b. his health or safety is threatened  (e.g. chemicals and dust at work etc)
c. there is a violation of the collective agreement or work rules. (e.g. if employers have
not abided by the agreement between management and the trade union.)
The grievance procedure is a set of steps which employees can use to solve any griev-
ance that may arise.
STEP 1  -   The employee discusses the complaint with his or her supervisor.  If the
complaint is not satisfactorily dealt with by the supervisor the employee may take the
matter further.
STEP 2  -   The employee will discuss the matter with the head of department.
STEP 3  -   The employee, along with the union delegate, will discuss the matter with
top management.
STEP 4 -    If the grievance still exists, the union official will seek mediation then concili-
ation from the Ministry of Labour or any independent body, i.e. the friendly intervention
of these bodies into the dispute for the purpose of adjusting the differences.
STEP 5 -   The matter is sent to arbitration, i.e. before the court where the judge will
make the final decision.  Therefore both parties; employer and employee must accept
the judges decision.
 Guidelines: Good Management & Staff Relations
Good management worker relationship is important for efficiency, productivity and the
retention of staff.
Communication
Managers should not only give directives but encourage feedback from workers. Regu-
lar scheduled meetings should allow workers the opportunity to voice their concerns
and views. Some managers have an open door policy making them available to all em-
ployees.
Motivation
Money is not a motivator for everyone and therefore managers must find ways of en-
couraging workers to give their best performance. Other forms of motivation include
recognition for a job well done. High performing employees can be motivated by pro-
motion, and being named employee of the month. Allowing employees to be creative
and bringing their innovative ideas to goods and services is also a motivator.
Fairness
It is very important to handle all workers fairly without showing favouritism. If workers
perceive that they are not being fairly treated or that there is favouritism conflicts may
arise among workers and well as between management and workers.
Compassionate
Managers must show care when dealing with workers daily.  Workers are not machines
and cannot be treated as such. Managers should try to understand each worker and
their various issues. Workers may have challenges with illnesses, family, financial etc.
which may affect their performance on the job.

Role Of Teamwork
Many firms adopt a teamwork approach to complete tasks more efficiently. For example
a major Caribbean airline encourages its workers to work as a team to achieve the main
task of having each flight leave on time. Workers therefore move to various positions if
needed, to have each flight leave on time.
Benefits of Teamwork
1. It improves the working relationship among workers
2. It increases communication
3. Skills and knowledge are passed on through the interaction
4. It satisfies the social needs of workers
Groups are formed naturally by persons with similar interest, common goals and similar
past experiences in an organization. The establishment of various clubs, work socials
and outings will encourage greater interaction among workers, better relationships and
a teamwork approach to completing tasks.

Strategies For Effective Communication

Communication is defined as a two-way process which involves the conveying of infor-
mation from (sender) to (receiver).  The need for effective communication is very im-
portant when dealing with the human factor from recruitment to retirement in the orga-
nization.
For communication to be effective there must be feedback.
Means of Communication 
1. Oral – This includes all types of spoken communication, e.g. interviews and meet-
ings.
2. Written – This includes all things that are written, e.g. reports and letters.
3. Visual – This includes all things which can be seen, e.g., posters and films.
The primary objective of communication in any organization is to get work done.
Types of communication
 Formal Communication -These are official methods approved by management.
These includes meetings, announcement on notices boards, memoranda, messages
over public address systems, interviews,  performance appraisals, company magazines.
etc.
 Informal Communication -These are unofficial methods of communication.
These include: rumours and the grapevine, secret signs and gestures as well as casual
conversation between employees.
Barriers to Communication
1. Distortion of messages e.g. rumours or the grapevine can easily distort messages.
2. Inappropriate forms of transmission e.g. a notice of a formal meeting must be con-
veyed in writing and not by word of mouth.  If this type of meeting is not conveyed in
writing it may seem casual and unimportant.
3. Physical barriers e.g. faulty telephone connections, defects in mechanical or elec-
tronic equipment, and poor postal services.
 Management Information System
Managers need information to assist them in making important timely decisions and
predictions for future plans. Management information system is a computer based busi-
ness information system designed to produce information needed for the successful
management of a department or business (Before MIS managers had to rely on manu-
ally prepared reports at intervals). However, with increased global competition firms
must be more proactive in the market place. Information must therefore be at the man-
ager’s disposal at any point in time when needed.
The manager of a retail store may require at any point in time information on sales vol-
ume for particular items so that decisions on future purchases can be made. A com-
puter programme is then designed to meet the specifications of the report which the
manager will need. The format and the content of each report required will be used to
design the programme. The manager will then be able to receive the information re-
quired by requesting the specific report. The necessary data will be retrieved from the
data base, processed and automatically presented in the format specified.
Benefits
MIS is very cost effective as it reduces the need for labour to compile and analyze
data.  Once information enters a company’s database, MIS will compile and analyze the
data to give managers meaningful information to make decisions. Data e.g. items sold
or stock entering the stock room will be inputted by the various department staff. MIS
will have required reports available in a much shorter time than manual preparation of
reports.
MIS is a decision support system used to analyze business activities. MIS at anytime
can provide information required for decision making. This can be used to assess
present performance and therefore assist managers to improve the company’s perfor-
mance so that the firm is more competitive.
Challenges
Although very beneficial and is therefore desirable for businesses MIS is an expensive
venture and small firms will be challenged to set up this system. In addition to the set
up cost for MIS business will have to consider the continuous maintenance costs. The
cost of training present employees to interact with the new system must also be fac-
tored in to the total cost.
 MANAGEMENT INFORMATION SYSTEMS
Management – making decisions, planning, organizing, directing, controlling
Information – knowledge communicated in order to inform (tell / notify)
System – a group of inter-related parts to achieve a purpose

What is MIS?
The use of information technology (or any computer-based system) including
telecommunications technology to improve significantly every aspect of a business so that it may
be managed with ease, reliability and efficiency and most importantly to lower the cost of
production and increase profit margins

It involves the determination of requirements for data and then later the collection, organization,
transformation and analysis of the data.

Use in commerce and industry

 As an aid to management – processing and gives accurate information quickly allowing for
more efficient decision making
 Control by MIS – supervise large scale production (oil, textile) control space flights, monitor
patients in hospital
 Computerised research and design – testing product ideas
 Computerised information systems – bookings in airlines
 Computerized clerical operations – wage and salary administration / debit or credit transfers
in banks

Benefits
 Provides data bank (information needed for the firm)
 Facilitates effective decision making
 Facilitates effective (rapid) communication
 Helps reduce the cost of production > increase in profits > increase in competitiveness

Disadvantages
 Human error can be made in inputting data
 Initial high costs and time to establish/implement system
 Possibility of system shut down
 Data could be tampered with if not made secure
 Personal Needs Satisfied Through Employment
Managers must be aware of the various needs of workers. If these needs are ade-
quately satisfied through work, then workers will be motivated to improve performance.
Basic Needs
Employment is very important for the economic survival of individuals. If employees re-
ceive adequate pay then these needs will be satisfied. Some employees may also re-
ceive allowances and fringe benefits. Once the basic needs of survival (food, clothing
and shelter) are met, employees will be aware of higher level needs.
Security Needs
A job should not only provide adequate pay to satisfy basic needs but it should also
give workers security. This need can be satisfied through the provision of health bene-
fits,insurance and pensions.
 Social Needs 
The employee spends on average eight hours each day at work. We are social beings
and therefore need human interaction. This need can be satisfied by the establishment
of after work activities and through a teamwork approach to accomplishing tasks.
Self-Esteem Needs
Managers can satisfy this need through promotion and ways of recognizing those who
have performed well.
Self-actualizing Needs
This need is satisfied by giving subordinates opportunities to create and pursue innova-
tive ideas so that they can realize their capacities to the fullest.