Principles of Mgt and OB

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Solved question paper (December 2008) (HINTS)

Question 1. What is stress? Discuss the relationship between personality and stress?

We generally use the word "stress" when we feel that everything seems to have become toomuch - we are overloaded and wonder whether we really can cope with the pressures

placed upon us.

Anything that poses a challenge or a threat to our well-being is a stress. Some stresses get yougoing and they are good for you - without any stress at all many say our lives would be boring

and would probably feel pointless. However, when the stresses undermine both our mental and

physical health they are bad. In this text we shall be focusing on stress that is bad for you.

Fight or flight response

The way you respond to a challenge may also be a type of stress. Part of your response to achallenge is physiological and affects your physical state. When faced with a challenge or a

threat, your body activates resources to protect you - to either get away as fast as you can, or

fight.

If you are upstairs at home and an earthquake starts, the faster you can get yourself and your

family out the more likely you are all to survive. If you need to save somebody's life during that

earthquake, by lifting a heavy weight that has fallen on them, you will need components in your

body to be activated to give you that extra strength - that extra push.

Our fight-or-flight response is our body's sympathetic nervous system reacting to a stressful

event. Our body produces larger quantities of the chemicals cortisol, adrenaline and

noradrenaline, which trigger a higher heart rate, heightened muscle preparedness, sweating, and

alertness - all these factors help us protect ourselves in a dangerous or challenging situation.

When we are stressed the following happens:

Blood pressure rises

Breathing becomes more rapid

Digestive system slows down

Heart rate ( pulse) rises Immune system goes down

Muscles become tense

We do not sleep (heightened state of alertness)

Effect on your body

A tendency to sweat

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Back pain

Chest pain

Cramps or muscle spasms

Erectile dysfunction

Fainting spells

Headache

Heart disease

Hypertension (high blood pressure)

Loss of libido

Lower immunity against diseases

Muscular aches

Nail biting

Nervous twitches

Effect on your thoughts and feelings

Anger

Anxiety

Burnout

Depression

Feeling of insecurity

Forgetfulness

Irritability

Problem concentrating

Restlessness

Sadness

Fatigue

Irregular periods(hot flashes)

Effect on your behavior

Eating too much

Eating too little

Food cravings

Sudden angry outbursts

Drug abuse

Alcohol abuse

Higher tobacco consumption

Social withdrawal

Frequent crying

Relationship problems












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There is a deep relationship between "personality and stress". In the present world these two concepts have attained a veryimportant role. Stress plays a very important role in every day life of an individual and is present in one form or another. Stressaffects the personality as well as the performance of a person. If we understand the relation between stress and the personality,

how they affect each other we will be able to channalize and manage stress in a better way. Stress won't affect individual's personality in a negative way. Due to the relationship between personality and stress you come to know that how personalityaffects the stress and how stress affects the personality, how it affects your work, your relationship with other people, personallife, peace of mind, are influenced. If you will understand this dynamic relationship you will lead a successful life. You will be

able to perform better and would receive appreciation and should give a boost to your self esteem, by dynamic, it is meant that personality affects stress and stress affects personality.

Personality: Personality is the product of a culture to do different things in different situations; it is affected by the environment, family,

norms and values, society. The society produces different types of people or individuals. These individuals perform differenttasks at different times under different situations. In other words the culture/society/environment produces a different person inan army man, in a teacher, in a student and in a sweeper etc. these individuals have to perform different tasks in the society. This

aspect of personality is linked with stress. Stress is situation where there are demands on a person.

1. Social demands: To act or, perform in a certain way, if the person is unable to perform according to the demands of a

situation, the pressure emerges.

Two types of stress

a. Positive stress-it is called u-stress; you perform well due to this stress.e.g. Stress in exams makes you achieve better marks inthe examination.

b. Negative stress: if you can't adjust to the demands of the situation then the stress is prolonged then thisnegative stress affects on your performance, your health and your over all personality.

2. Organizational demands: The organizations have certain expectations; they require their employees to fulfill certain tasks. This also puts stress on theemployees and the workers. If the organization demands some sort of work from the employee which he knows he will not be

able to perform well. The person should say no rather than putting extra stress on himself for something he can not do, or if someone has to do some thing too challenging for them then they should first attempt to divide the work into smaller tasks, do the first

part of it. If he succeeds then go on to the next part. In this way he will be able to manage the tasks.

3. Situational demand: Stress emerges out of expectations, situational expectations, cultural expectations, organizational

expectations, and family expectations all these expectations make you work. If you work according to the situation there should be no stress.

Question No:2 what is conflict and collbaration . what is the role of conflict in organizational behavior?

When individuals with different values, beliefs or attitudes work closely with one another, it is inevitable

that conflict will rear its ugly head. Developing and training your employees in conflict management

styles will keep the workplace running smoothly should a conflict arise. Various techniques exist to

manage conflict; one such strategy is the collaboration method. Collaboration is an ideal method

because both sides of the conflict work toward a "win/win" outcome.

Conflict Management

Conflict situations are an important aspect of the workplace. A conflict is a situation when the

interests, needs, goals or values of involved parties interfere with one another. A conflict is acommon phenomenon in the workplace. Different stakeholders may have different priorities;

conflicts may involve team members, departments, projects, organization and client, boss and

subordinate, organization needs vs. personal needs. Often, a conflict is a result of perception. Isconflict a bad thing? Not necessarily. Often, a conflict presents opportunities for improvement.



Therefore, it is important to understand (and apply) various conflict resolution techniques.

Collaboration is a working practice whereby individuals work together to a common purpose to achieve

business benefit.

What is Collaboration?

Collaboration is a working practice whereby individuals work together to a common purpose toachieve business benefit. Key features of collaboration tools are:

Synchronous collaboration such as online meetings and instant messaging

Asynchronous collaboration such as shared workspaces and annotations

Many organizations are also looking at Free-form Collaboration tools to improve collaboration

and reduce the number of emails used for collaboration.

Collaboration, at the conceptual level, involves:

Awareness - We become part of a working entity with a shared purpose

Motivation - We drive to gain consensus in problem solving or development

Self-synchronization - We decide as individuals when things need to happen

Participation - We participate in collaboration and we expect others to participate

Mediation - We negotiate and we collaborate together and find a middle point

Reciprocity - We share and we expect sharing in return through reciprocity

Reflection - We think and we consider alternatives

Engagement - We proactively engage rather than wait and see

Role of conflict in organisation behavior

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The role of conflict in organizational behavior depends upon its frequency, intensity, and the

manner in which it is addressed. Lengthy or significant conflicts can overwhelm an organization,

while smaller issues may serve as a catalyst for improvements in the way the business is run. Theway that an organization manages conflict also plays a role in how it affects the company

overall.

Conflict in organizational behavior can be debilitating if managed poorly. An organization that

becomes adept at catching signs of trouble before they develop into full blown issues will tend to

be healthier overall. If conflict does develop, companies with a procedure for managing this kindof trouble often create a more positive, constructive environment for employees.

The role of conflict in organizational behavior can be overwhelming if it is not addressed promptly. Problems that are ignored or inadequately resolved often become a part of

organizational culture. In essence, the company gets in the habit of being dysfunctional. The

long-term results of this inattention can range from causing inconvenience to destroying the

organization.

If conflict in organizational behavior is addressed quickly and effectively, it can help to improve

operations. Once disparate elements have been brought into harmony, the effort often not onlystops the immediate effects of the conflict, but also helps to improve productivity. In addition to

removing the distraction of the problem, solving it will often reveal better methods of working.

Question 3. What is organizational change. What are its objectives?

Organisational change is defined as change that has an impact on the way that work is performed

and has significant effects on staff. This could include changes:

- In the structure of an organisation- To organisational operation and size of a workforce

- To working hours or practices- In the way roles are carried out

- To the the scope of a role that results in a change to the working situation, structure, terms and

conditions or environment.

Organisational change can have an impact irrespective of whether changes are viewed as large or

small.

Company or organization going through a transformation. Organization change occurs when business

strategies or major sections of an organization are altered. Also known as reorganization, restructuring and turnaround.

Objectives of organizational change:

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Provide the framework for retaining and building capabilities for employees duringchange;

Provide the framework for human resources implementation activities and timeframesrelated to an organisational change project;

Provide detailed information relating to how employees will be transitioned into new or

revised structures following a change exercise; Inform employees on the communication approaches related to human resources

implementation activities;

Promote and advise employees on employee support programs (eg. wellness and training

and development activities to support employees through the implementation phase.

Question 4. Discuss some theoritcal models in leadership, which is situational.

Interest in leadership increased during the early part of the twentieth century. Early leadership theories

focused on what qualities distinguished between leaders and followers, while subsequent theories

looked at other variables such as situational factors and skill levels.

Contingency Theories:

Contingency theories of leadership focus on particular variables related to the environment that might

determine which particular style of leadership is best suited for the situation. According to this theory,

no leadership style is best in all situations. Success depends upon a number of variables, including the

leadership style, qualities of the followers and aspects of the situation

Situational Theories:

Situational theories propose that leaders choose the best course of action based upon situational

variables. Different styles of leadership may be more appropriate for certain types of decision-making.

For example, in a situation where the leader is the most knowledgeable and experienced member of a

group, an authoritarian style might be most appropriate. In other instances where group members are

skilled experts, a democratic style would be more effective.

Management Theories:

Management theories, also known as transactional theories, focus on the role of supervision,

organization and group performance. These theories base leadership on a system of rewards and

punishments. Managerial theories are often used in business; when employees are successful, they are

rewarded; when they fail, they are reprimanded or punished. Learn more about theories of

transactional leadership.

Relationship Theories:

Relationship theories, also known as transformational theories, focus upon the connections formed

between leaders and followers. Transformational leaders motivate and inspire people by helping group

members see the importance and higher good of the task. These leaders are focused on the

performance of group members, but also want each person to fulfill his or her potential. Leaders with

this style often have high ethical and moral standards.

Situational Leadership Theory

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Most of the leadership training programs offered today are aimed at helping you discover the

leadership style you exhibit, and making you aware of its strengths and weaknesses. However, a

situational leadership style is not dictated by the leadership skills of the manager. The theory behind situational leadership is more closely tied to using the style needed to be successful given

the existing work environment, or the specific needs of the business.

The effective manager is able to utilize multiple leadership styles as conditions change. This is

the theory behind the concept of situational leadership. Implementing situational leadership in

an organization then becomes a matter of training managers to recognize the current work setting, or employee condition, and using the most effective leadership style given the specific

challenge.

For example, delegating work to an employee that is ill prepared to accept that responsibility

may result in the impression that the worker is incompetent. This can lead to frustration for both

the manager and worker. Ironically, it is actually the manager's inability to recognize the most

effective leadership style, or refusal to switch styles, that is really the cause of an ineffective

workforce.

Question 5. Define Herzberg theory of motivation? Discuss the importance and limitations of these theories?

In 1959, Frederick Herzberg, a behavioural scientist proposed a two-factor theory or themotivator-hygiene theory. According to Herzberg, there are some job factors that result in

satisfaction while there are other job factors that prevent dissatisfaction. According to Herzberg,

the opposite of “Satisfaction” is “No satisfaction” and the opposite of “Dissatisfaction” is “NoDissatisfaction”.

FIGURE: Herzberg’s view of satisfaction and dissatisfaction

Herzberg classified these job factors into two categories-

a. Hygiene factors- Hygiene factors are those job factors which are essential for existence of

motivation at workplace. These do not lead to positive satisfaction for long-term. But if these

factors are absent / if these factors are non-existant at workplace, then they lead to

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dissatisfaction. In other words, hygiene factors are those factors which when

adequate/reasonable in a job, pacify the employees and do not make them dissatisfied. These

factors are extrinsic to work. Hygiene factors are also called as dissatisfiers or maintenance

factors as they are required to avoid dissatisfaction. These factors describe the job

environment/scenario. The hygiene factors symbolized the physiological needs which the

individuals wanted and expected to be fulfilled. Hygiene factors include:

Pay - The pay or salary structure should be appropriate and reasonable. It must be equal

and competitive to those in the same industry in the same domain.

Company Policies and administrative policies - The company policies should not be too

rigid. They should be fair and clear. It should include flexible working hours, dress code,

breaks, vacation, etc.

Fringe benefits - The employees should be offered health care plans (mediclaim),

benefits for the family members, employee help programmes, etc.

Physical Working conditions - The working conditions should be safe, clean and hygienic.

The work equipments should be updated and well-maintained.

Status - The employees’ status within the organization should be familiar and retained.

Interpersonal relations - The relationship of the employees with his peers, superiors andsubordinates should be appropriate and acceptable. There should be no conflict or

humiliation element present.

Job Security - The organization must provide job security to the employees.

b. Motivational factors- According to Herzberg, the hygiene factors cannot be regarded as

motivators. The motivational factors yield positive satisfaction. These factors are inherent to

work. These factors motivate the employees for a superior performance. These factors are

called satisfiers. These are factors involved in performing the job. Employees find these factors

intrinsically rewarding. The motivators symbolized the psychological needs that were perceived

as an additional benefit. Motivational factors include: Recognition - The employees should be praised and recognized for their

accomplishments by the managers.

Sense of achievement - The employees must have a sense of achievement. This depends

on the job. There must be a fruit of some sort in the job.

Growth and promotional opportunities - There must be growth and advancement

opportunities in an organization to motivate the employees to perform well.

Responsibility - The employees must hold themselves responsible for the work. The

managers should give them ownership of the work. They should minimize control but

retain accountability.

Meaningfulness of the work - The work itself should be meaningful, interesting and

challenging for the employee to perform and to get motivated.

Limitations of Two-Factor Theory

The two factor theory is not free from limitations:

1. The two-factor theory overlooks situational variables.

2. Herzberg assumed a correlation between satisfaction and productivity. But the research

conducted by Herzberg stressed upon satisfaction and ignored productivity.



3. The theory’s reliability is uncertain. Analysis has to be made by the raters. The raters may spoil

the findings by analyzing same response in different manner.

4. No comprehensive measure of satisfaction was used. An employee may find his job acceptable

despite the fact that he may hate/object part of his job.

5. The two factor theory is not free from bias as it is based on the natural reaction of employees

when they are enquired the sources of satisfaction and dissatisfaction at work. They will blame

dissatisfaction on the external factors such as salary structure, company policies and peer

relationship. Also, the employees will give credit to themselves for the satisfaction factor at

work.

6. The theory ignores blue-collar workers. Despite these limitations, Herzberg’s Two-Factor theory

is acceptable broadly.

Herzberg's findings revealed that certain characteristics/importance of a job are consistently

related to job satisfaction, while different factors are associated with job dissatisfaction. These

are:

Factors for Satisfaction Factors for Dissatisfaction

Achievement Company Policies

Recognition Supervision

The work itself Relationship with Supervisor and Peers

Responsibility Work conditions

Advancement Salary

Growth Status and security

Question 6. What is learning. Describe theory of (a) Classical conditioning. (b) operant learning.?

Learning is a powerful incentive for many employees to stick to certain organizations. Learninghas a significant impact

on individual behavior as it influences abilities, role perceptions andmotivation. Along with its role in individual

behavior, learning is essential for knowledgemanagement. Knowledge management enhances an organization’s

capacity to acquire, shareand utilize knowledge in ways that improve its survival and success.

Learning is defined as “a relatively permanent change in behavior that occurs as a result of prior experience.

Learning is understood as the modification of behavior through practice, training, or experience.This is supplemented

with five important components of learning.



Classical Conditioning:

Classical conditioning is based on the premise that a physical event – termed a stimulus – thatinitially does not elicit a particular

response gradually acquires the capacity to elicit thatresponse as a result of repeated pairing with a stimulus that elicits a reaction.

Learning of thistype is quite common and seems to play an important role in such reactions as strong fears,taste aversions, some

aspects of sexual behavior and even racial or ethnic prejudice.

Operant Conditioning:

Operant conditioning also called instrumental conditioning refers to the process that our behavior produces certain consequences

are. If our actions have pleasant effects, then we willbe more likely to repeat them in the future. If, however, our actions have

unpleasant effects, weare less likely to repeat them in the future. Thus, according to this theory, behavior is thefunction of its

consequences.

Cognitive theory of learning:

Contemporary perspective about learning is that it is a cognitive process. Cognitive processassumes that people are conscious,

active participants in how they learn. Cognitive theory of learning assumes that the organism learns the meaning of various objects

and event andlearned responses depending on the meaning assigned to stimuli.

Social learning theory:

Also called observational learning, social learning theory, emphasizes the ability of an individualto learn by observing others. The

important models may include parents, teachers, peers,motion pictures, TV artists, bosses and others.An individual acquires new

knowledge by observing what happens to his or her model. This ispopularly known as vicarious learning. A learner acquires tacit

knowledge and skills throughvicarious learning



Question 7. What are the difficulties in the smooth relationship between line and staff officials in an

enterpirse? How can be removed?

Line and staff structure is an extension of the standard line organizational structure, wherein staff supervisors and staff specialists are attached to the line of authority. Staff supervisors advise line

executives; for example, the CEO represents a line executive and his administrative assistant, astaff official. The CEO has final decision-making power, but staff officers heavily advise every

choice. Therefore, the line execs retain the power, but staff officers guide them – they are the

power behind the throne. This interaction causes problems for line and staff organizations.

Authority

The combined line and staff authority processes can result in confusion as well as

disenfranchised employees. Line officials have the power to make decisions, which upsets some

staff officials since they tend to put in more mental labor. The different levels of authority can

cause confusion among employees who are not sure whether to follow the in-line executive or

the relevant staff specialist.

Decision Making

Since staff officials do most of the research, some line managers begin to rely too heavily on the

staff expert's advice. While usually not an issue, when the staff expert is wrong and the line execdoesn't notice, inefficient decision making results. Whenever a decision results in higher returns,

the staff specialists are rewarded. While this reward may be justified, the line officials involved

can become dissatisfied or begin to feel unappreciated, which leads to low productivity.

Conflict

Sometimes, the two authorities, line and staff, disagree, which causes conflict that hurts theefficiency and productivity of the company. Minor conflicts are common and occur in any

system, but serious conflicts of interest or differing opinions can spread disruption through the

entire operation. “Poor human relations, overlapping authority and responsibility, and misuse of staff personnel by top management are all primary reasons for feelings of resentment between

line and staff personnel,” reports Reference for Business. These feelings of conflict drive some

departments to view the organization narrowly instead of considering how their actions affect the

organization as a whole.

Cost

Line and staff organization is more costly than simple line organization since you must hire,maintain and pay all your staff specialists. For an expert to remain so, they need consistent

training and up-to-date information, which costs either the employee or the company funds.

The conflicts and choas of line and staff management can be removed through effective, effient,

and provacative leadership considering the situation, pros and cons of the availablity of resources(information), etc.



In many organizations, managers use authority by dividing it into line authority, staff authority

and functional authority. These kinds of authority differ according to the kinds of power on

which they are based.

Line Authority: Managers with line authority are those people in the organization who aredirectly responsible for achieving organizational goals. Line authority is represented by thestandard chain of command starting with the board of directors and extending down activities of

the organization that are carried out. Line authority is based primarily on legitimate power.

Since line activities are identified in terms of the company‟s goals, the activities classified as line

will differ in each organization. For example, managers at a manufacturing company may limitline functions to production and sales, while managers at a department store, in which buying is a

key element will consider the purchasing department as well as the sales department as line

activities. When an organization is small, all positions may be line roles. At Nordstrom,

associates are given considerable line authority.

Staff Authority: Staff authority belongs to those individuals or groups in an organization who provide services and advice to line mangers. The concept of staff includes all elements of theorganization that are not classified as line. Advisory staffs have been used by decision makers

from emperors and kings to dictators and parliaments over the course of recorded history.

Staff provides managers with varied types of expert help and advice. Staff authority is based

primarily on expert power. Staff offer line managers planning advice through research, analysis



and options development. Staff can also assist in policy implementation, monitoring and control

in legal and financial matters; and in the design and operation of data processing systems.

As managers expand organizations over time, staff roles are often added to supplement line

activities. For example, partners at many law firms are adding staff members to run the „business

side‟ of the firm. The presence of these specialists frees lawyers to practice law, their linefunction.



Question 8. Explain management as a process? What are the various elements of this process?

Management is the process of reaching organizational goals by working with and through peopleand other organizational resources.

Management has the following 3 characteristics:

1. It is a process or series of continuing and related activities.

2. It involves and concentrates on reaching organizational goals.3. It reaches these goals by working with and through people and other organizational

resources.



MANAGEMENT FUNCTIONS:

The 4 basic management functions that make up the management process are described in the

following sections:

1. PLANNING2. ORGANIZING

3. INFLUENCING

4. CONTROLLING.

PLANNING: Planning involves choosing tasks that must be performed to attain organizational

goals, outlining how the tasks must be performed, and indicating when they should be

performed.

Planning activity focuses on attaining goals. Managers outline exactly what organizations shoulddo to be successful. Planning is concerned with the success of the organization in the short termas well as in the long term.

ORGANIZING:

Organizing can be thought of as assigning the tasks developed in the planning stages, to variousindividuals or groups within the organization. Organizing is to create a mechanism to put plans

into action.

People within the organization are given work assignments that contribute to the company‟s

goals. Tasks are organized so that the output of each individual contributes to the success of departments, which, in turn, contributes to the success of divisions, which ultimately contributesto the success of the organization.

INFLUENCING:

Influencing is also referred to as motivating,leading or directing.Influencing can be defined as

guiding the activities of organization members in he direction that helps the organization movetowards the fulfillment of the goals.

The purpose of influencing is to increase productivity. Human-oriented work situations usually

generate higher levels of production over the long term than do task oriented work situations because people find the latter type distasteful.

CONTROLLING:

Controlling is the following roles played by the manager:

1. Gather information that measures performance



2. Compare present performance to pre established performance norms.

3. Determine the next action plan and modifications for meeting the desired performance

parameters.

Controlling is an ongoing process.

Elements of Management Process

Planning: Planning is the primary function of management. It involves determination of a courseof action to achieve desired results/objectives. Planning is the starting point of management

process and all other functions of management are related to and dependent on planning

function. Planning is the key to success, stability and prosperity in business. It acts as a tool for solving the problems of a business unit. Planning plays a pivotal role in business management It

helps to visualize the future problems and keeps management ready with possible solutions.

Organising: Organising is next to planning. It means to bring the resources (men, materials,machines, etc.) together and use them properly for achieving the objectives. Organisation is a

process as well as it is a structure. Organising means arranging ways and means for the execution

of a business plan. It provides suitable administrative structure and facilitates execution of proposed plan. Organising involves different aspects such as departmentation, span of control

delegation of authority, establishment of superior-subordinate relationship and provision of

mechanism for co-ordination of various business activities.



Staffing: Staffing refers to manpower required for the execution of a business plan. Staffing, as

managerial function, involves recruitment, selection, appraisal, remuneration and development of

managerial personnel. The need of staffing arises in the initial period and also from time to timefor replacement and also along with the expansion and diversification of business activities.

Every business unit needs efficient, stable and cooperative staff for the management of business

activities. Manpower is the most important asset of a business unit. In many organisations,manpower planning and development activities are entrusted to personnel manager or HRDmanager. 'Right man for the right job' is the basic principle in staffing.

Directing (Leading): Directing as a managerial function, deals with guiding and instructing

people to do the work in the right manner. Directing/leading is the responsibility of managers at

all levels. They have to work as leaders of their subordinates. Clear plans and sound organisation

set the stage but it requires a manager to direct and lead his men for achieving the objectives.Directing function is quite comprehensive. It involves Directing as well as raising the morale of

subordinates. It also involves communicating, leading and motivating. Leadership is essential on

the part of managers for achieving organisational objectives.

Coordinating: Effective coordination and also integration of activities of different departments

are essential for orderly working of an Organisation. This suggests the importance of coordinating as management function. A manager must coordinate the work for which he is

accountable. Co-ordination is rightly treated as the essence of management. It may be treated as

an independent function or as a part of organisms function. Coordination is essential at all levels

of management. It gives one clear-cut direction to the activities of individuals and departments. Italso avoids misdirection and wastages and brings unity of action in the Organisation. Co-

ordination will not come automatically or on its own Special efforts are necessary on the part of

managers for achieving such coordination.

Controlling: Controlling is an important function of management. It is necessary in the case of individuals and departments so as to avoid wrong actions and activities. Controlling involvesthree broad aspects: (a) establishing standards of performance, (b) measuring work in progress

and interpreting results achieved, and (c) taking corrective actions, if required. Business plans do

not give positive results automatically. Managers have to exercise effective control in order to bring success to a business plan. Control is closely linked with other managerial functions. It is

rightly treated as the soul of management process. It is true that without planning there will be

nothing to control It is equally true that without control planning will be only an academic

exercise Controlling is a continuous activity of a supervisory nature.

Motivating: Motivating is one managerial function in which a manager motivates his men to

give their best to the Organisation. It means to encourage people to take more interest andinitiative in the work assigned. Organisations prosper when the employees are motivated through

special efforts including provision of facilities and incentives. Motivation is actually inspiring

and encouraging people to work more and contribute more to achieve organisational objectives.

It is a psychological process of great significance.

Communicating: Communication (written or oral) is necessary for the exchange of facts,opinions, ideas and information between individual‟s and departments. In an organisation,



communication is useful for giving information, guidance and instructions. Managers should be

good communicators. They have to use major portion of their time on communication in order to

direct, motivate and co-ordinate activities of their subordinates. People think and act collectivelythrough communication. According to Louis Allen, "Communication involves a systematic and

continuing process of telling, listening and understanding".

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Principles of Mgt and OB