Unit - 1

Definition of management

Q1) Define management. What are the features of management?

A1) According to George Terry, “Management is a distinct process consisting of planning, organizing, actuating and controlling, performed to determine and accomplish stated objectives by the use of human beings and other resources”.

According to Mary Parker Follet, “Management is an art of getting things done through others”.

According to Henry Fayol, “To manage is to forecast, to plan, to organize, to command, to coordinate, and to control”.

The features of management are-

1. Management is an activity or a process: Management is a function and should not be misunderstood to be a person. Often the people who perform this activity of management are referred to as “the management”. But in a strict sense of the word, it denotes only the process of managing or the activity of managing. Being a process. It involves a set of activities / steps to be followed in a particular sequence. The management process consists of planning, organizing, actuating and controlling.
2. Management is a distinct process: It means that management is a separate activity. It can be studied, understood and improved upon as a complete subject. People can obtain training in the field of management so that they can become better managers.
3. Management is purposeful: Management as a philosophy believes in setting goals and achieving them in the most cost-effective manner. In other words, management helps to reach goals by making the best possible use of available resources. The goal of all management efforts is to create a surplus.
4. Management uses the 6 Ms to reach its goals: Management uses the resources of men, money, methods, materials, machines and markets to achieve its goals. These resources are vital to every business. Information is one of the business resources that is as important as the others.
5. Management makes things happen: Management is concerned with the productivity of people. It brings effectiveness and efficiency to the efforts of people. Management keeps things moving in the right direction till you reach the desired goal. In other words, management focuses on results and the best way to achieve them. Management means getting the work done through people.
6. Management is invisible: Management is a hidden force. It is intangible. Only the results of work show the presence or absence of management. Well managed projects show smooth flow of work and obtain desired results within given time limits, in the absence of proper management there will be chaos and confusion and no results or delayed results.
7. Management creates the right environment: Management works to create and maintain an environment where people will work willingly and efficiently towards achieving a given goal. Management creates / designs a structure and processes which encourage people to work sincerely. As a result of management, an appropriate internal environment is created wherein everyone performs to their best capacity.
8. Management is dynamic: Management activities have evolved with passage of time. They have undergone change to adjust to the demands of the organisation. Managers have to be dynamic and innovative to allow suitable changes in the process of management.
9. Management is group activity: Management is getting things done through others. Management giving importance on the need of the team work. The manager should create a feeling of belonging among the members of the group. Efforts and activities of different groups at different levels of the organisation must be directed towards achieving the common goals of the organisation.
10. Management is goal-oriented: Every business enterprise aims to achieve pre-defined goals, Maximizations of profit, increased productivity; reduced costs are certain goals of an enterprise. As stated, earlier management is coordination of all resources to attain such objectives. Thus, management is a goal- oriented activity.

Q2) Define entrepreneur and manager. Give the difference between entrepreneur and manager.

A2) Very basically, entrepreneurship is a show that carries out entrepreneurship. However, such a person usually has some unique attributes that allow him to succeed in his efforts. He is essentially an initiator and leader. He realized his business idea and started a venture.

Successful entrepreneurs are usually responsible. He is responsible for the success or failure of his venture and he takes this responsibility very seriously. And since he is the only responsible person, he automatically becomes the leader. In fact, leadership qualities are one of the main aspects of entrepreneurship.

Managers, on the other hand, are not the owners of the company. Instead, he is the person responsible for managing and managing departments of groups or organizations of people. His day-to-day work is to manage employees and keep the organization running smoothly.

Managers need to have some of the same qualities as an entrepreneur, such as leadership, accountability, and determination. He must also be a good manager of people. Therefore, qualities such as warmth and empathy are also very important for managers.

The difference between Entrepreneur and Manager are:

1. The main difference between an entrepreneur and a manager is their position in the company. An entrepreneur is a visionary person who turns an idea into a business. As he is the owner of the business, he bears all financial and other risks. Managers, on the other hand, are employees and work on salaries. Therefore, he does not have to take any risks.
2. The focus of entrepreneurs is to start a business and later expand it. Managers focus on the day-to-day smooth functioning of their business.
3. Achievements are the main motivation for entrepreneurs. But for managers, motivation comes from the power that accompanies their position.
4. The reward for all the efforts of an entrepreneur is the profit he earned from the company. Since the manager is an employee, his compensation is the salary he withdraws from the company.
5. The entrepreneur can be informal and casual in his role. However, the manager's approach to all issues is very formal.
6. Entrepreneurs are risk takers in nature. He needs to take the calculated risk to further promote the company. Managers, on the other hand, hate risk. His job is to maintain the status quo of the company. Therefore, he cannot afford to take risks.

Q3) Explain the types of managers.

A3) There are three main types of managers: general managers, functional managers, and frontline managers. 

General managers are responsible for the overall performance of an organization or one of its major self-contained subunits or divisions.

Functional managers lead a particular function or a subunit within a function. They are responsible for a task, activity, or operation such as accounting, marketing, sales, R&D, production, information technology, or logistics. 

Frontline managers manage employees who are themselves not managers. They are found at the lowest level of the management hierarchy.

For illustration, consider a large diversified enterprise like General Electric. General Electric is active in many different businesses: Among other things, it makes jet engines, power plants, medical equipment, railway locomotives, and lighting products. GE also sells insurance, owns NBC, and offers a wide range of financial services, particularly to industrial customers. GE is organized into different business divisions, and each division has its own functions, such as R&D, production, marketing, sales, and customer services.

GE is thus known as a multidivisional enterprise. Multidivisional enterprises like GE have four main levels of management: the corporate level, the business level, the functional level, and frontline managers. General managers are found at the corporate and business levels. Functional managers are found within the divisions where they manage functions or subunits within those functions. Frontline managers are found deep within functions managing teams of nonmanagement employees.

CORPORATE-LEVEL GENERAL MANAGERS

The principal general manager at the corporate level is the chief executive officer (CEO), who leads the entire enterprise. In a multidivisional enterprise the CEO formulates strategies that span businesses—deciding, for example, whether to enter new businesses through acquisitions or whether to exit a business area. The CEO decides how the enterprise should be organized into different divisions and signs off on major strategic initiatives proposed by the heads of divisions. The CEO exercises control over divisions, monitoring their performance and deciding what incentives to give divisional heads. Finally, the CEO helps develop the human capital of the enterprise.

At General Electric Jeffery Immelt has been the CEO since 2001. Immelt has articulated a grand vision that includes pushing GE into environmentally friendly technologies. Immelt is doing this because he thinks it makes good business sense. He believes that tighter environmental standards are inevitable, that environmentally friendly technologies are also cost-efficient, and that customers will increasingly demand them.

Thus, GE is investing in more fuel-efficient locomotives and jet engines; coal-based power plants that use technologies to strip almost all pollutants out; technologies for sequestering carbon dioxide emissions; water purification systems; and power-generating windmills. Under Immelt GE is also exiting some businesses that do not fit his strategic vision, including GE’s insurance business, which he sold to Swiss Reinsurance Co. In 2006 for $6.8 billion.

The CEO of a corporation also manages relationships with the people who own the company— its shareholders. The CEO reports to the board of directors, whose primary function is to make sure the strategy of the company is consistent with the best interests of shareholders. The CEO also normally sits on the board and spends considerable time describing company strategy to shareholders.

Members of the top management team help the CEO in all of this. The team normally includes a chief financial officer (CFO), who is responsible for the overall financing of the corporation. It may also include a chief operating officer (COO), who makes sure operations are run efficiently within the company; and in some high-technology enterprises a chief technology officer (CTO) is responsible for developing new technologies and products within the corporation.

BUSINESS-LEVEL GENERAL MANAGERS

With a multi divisional enterprise such as General Electric, business-level general managers head the different divisions. GE has general managers running its power generation business, medical equipment business, lighting business, and so on. These general managers’ report directly to Jeffery Immelt. Within an organization that is active in just one line of business, such as Burberry or Starbucks, the business and corporate levels are the same.

Business-level general managers lead their divisions—motivating, influencing, and directing their subordinates—and are responsible for divisional performance. Business-level general managers translate the overall strategic vision for the corporation into concrete strategies and plans for their units. Thus, the head of GE’s locomotive business, together with that team, has formulated strategies for making locomotives more environmentally friendly.

These include the development of diesel locomotives with lower emissions and hybrid diesel–electric engines. Business-level managers often have considerable latitude to develop and implement strategies that they believe will improve the performance of their divisions, so long as those strategies are consistent with the overall goals and vision for the entire corporation.

Business level general managers organize operations within their division, deciding how best to divide tasks into functions and departments and how to coordinate those subunits so that strategy can be successfully implemented. Business-level general managers also control activities within their divisions, monitoring performance against goals, intervening to take corrective action when necessary, and developing human capital.

FUNCTIONAL MANAGERS

Below general managers we find functional managers, who are responsible for specific business functions that constitute a company or one of its divisions. Thus, a functional manager’s sphere of responsibility is generally confined to one organizational activity (purchasing, marketing, production, or the like), whereas general managers oversee the operation of the entire company or a self-contained division.

The head of each function leads that function. Functional managers motivate, influence, and direct others within their areas. Although they are not responsible for the overall performance of the organization, functional managers nevertheless have a major strategic role: to develop functional strategies and draft plans in their areas that help fulfil the strategic objectives set by business- and corporate-level general managers.

In GE’s aerospace business, for instance, manufacturing managers develop manufacturing strategies consistent with the corporate objective of producing environmentally friendly products and generating high performance.

They might, for example, decide to implement process improvement programs to improve quality and boost employee productivity. Moreover, functional managers provide most of the information that makes it possible for business- and corporate-level general managers to formulate realistic and attainable strategies. Indeed, because they are closer to customers than are typical general managers, functional managers themselves may generate important ideas that subsequently may become major strategies for the company.

Thus, it is important for general managers to listen closely to the ideas of their functional managers. An equally great responsibility for managers at the functional level is strategy implementation: the execution of corporate- and business-level strategies.

The heads of functions are responsible for developing human capital within their organizations. They also organize their functions into subunits such as departments or teams; exercise control over those subunits; set goals; monitor performance; provide feedback; and make adjustments if necessary. Thus, the manufacturing function might be further subdivided into departments responsible for specific aspects of the manufacturing process.

There might be a procurement department, a production planning department, an inventory management department, and a quality assurance department. Each department will have its own managers, who report to their superiors, the functional heads; those managers will be responsible for leading their units, organizing and controlling them as necessary, strategizing for the tasks under their control, and developing employees within their units.

FRONTLINE MANAGERS

Furthest down the management hierarchy are frontline managers, who manage employees who are themselves not managers. A frontline sales manager might manage 10 salespeople; a frontline manager in manufacturing might manage a work group of employees who physically assemble a product; and a frontline engineering manager in a software company might manage a group of developers writing computer code.

Most complex organizations have many frontline managers. For example, the oil and energy company BP has some 10,000 frontline managers who oversee 80 percent of the organization’s 100,000 employees.

They work in every part of the company— from solar plants in Spain to drilling rigs in the North Sea and marketing teams in Chicago. Their decisions, in aggregate, have an enormous impact on BP’s performance. 13 Most successful managers begin their managerial careers as frontline managers. In this job they encounter the realities of management, which as we will see in the next section often differ from their expectations.

Frontline managers are critical to maintaining the performance of an organization. They lead their teams and units. They strategize about the best way to do things in their units and about the best strategies for their functions and the company. They plan how best to perform the tasks of their units. They organize tasks within their teams, monitor the performance of their subordinates, and try to develop the skills of their subordinates.

As we saw in the case of Tim Jones at Starbucks, who was a frontline manager responsible for the performance of an individual store, frontline managers can have an impact significantly beyond their jobs. In some cases, they can influence the destiny of an entire organization.

Q4) What are the managerial roles?

A4) Manager assumes multiple roles, to meet the many demands of performing their function. Role is an organized set of behaviours. Henry Mintzberg published 10 management roles in his book "Mintzberg on Management: Inside our Strange World of Organizations," in 1990.the ten roles are divided into 3 groups.

1. Interpersonal role –

This managerial role involves providing information and ideas. It helps in creating communication, connects and relations to develop the superior subordinate relationship.

Interpersonal roles include: -

• Figurehead: a figurehead is the one who performs ceremonial and symbolic duties as head of the organization. For examples – ceremonies, status request, solicitations
• Leader – the leader is the one who is responsible for the motivation and direction of subordinates. They involve in making a proper work environment. For example – build effective team, manage conflicts.
• Liaison – the managers must communicate with internal and external contacts that provide information and favors. For example – work on external boards

2. Informational role -

The managerial roles in this category involve processing information. They are primarily concerned with information aspects of managerial work.

Informational roles include: -

• Monitor – they gather internal and external information relevant to the organization. For example, handling mails, contacts, handle information such as industry, economic and competitive news.
• Disseminator – the managers are responsible in forwarding the factual and value-based information to the other members of the organization. Forward informational email, conference calls, etc
• Spokesperson – the manager communicates the information to the outside world about organization policies, plans, outcomes, etc. for example board meetings.

3.  Decisional roles –

The managerial roles that involve using information.

Decisional roles include: -

• Entrepreneur – the entrepreneur involves in creating and controlling change within the organization. It means generating new ideas and implementing them. For example - participate in review meeting involving new projects
• Disturbance handler – they are involving in taking corrective action when the organization faces unexpected events and operational breakdowns. For example – participate in review meeting involving disturbances and crises
• Resources allocator – they are involved in taking responsibility of allocation of organizational resources. For example – allocation of human resources
• Negotiator – under this role, the managers are responsible for representing the organization at major negotiations with other organization and individuals. For example – negotiate with vendors and clients

Q5) What are the managerial skills?

A5) The roles that a manager plays in the organization require some skills. These are the skills or qualities that an organization looks for in a person to assign him as a manager. Let us see and try to understand the skills required for managing an organization and its working.

1. Technical Skills.

2. Human Skills.

3. Conceptual Skills.

4. Interpersonal and Communication Skills.

5. Decision-Making Skills.

6. Diagnostic and Analytical Skills.

Technical Skill

Technical skill is knowledge of and proficiency in activities involving methods, processes, and procedures. Technical skill is the ability to use the specialized knowledge, procedures, and techniques of a field of activities. Accountants, engineers, surgeons all have their technical skills necessary for their respective professions. Most managers, especially at the lower and middle levels, need technical skills for effective task performance.

Human Skills

Human skills refer to the ability of managers to work effectively with other people both as individual and as members of a group. Human skills are concerned with understanding of people. These are required to win cooperation of others and to build effective work teams.

Conceptual Skill

Conceptual skill is the ability to see the “big picture,” to recognize significant elements in a situation and to understand the relationships among the elements. It is the ability to coordinate and integrate all of an organization’s interests and activities. It requires having the ability to visualize the enterprise as a whole, to envision all the functions involved in a given situation or circumstance, to understand how its parts depend on one another and anticipate how a change in any of its parts will affect the whole. A manager’s ability to think in the abstract and to view the organization holistically is important. Suggesting a new product line for a company, introducing computer technology to the organization’s operations, or entering the international market; for deciding this magnitude, a manager requires conceptual skill is his personality.

Interpersonal and Communication Skills

Communication skill for a manager is a must.  The manager must be able to convey ideas and information to others and receive information and ideas from others effectively. A manager’s job is to control the subordinates and give high-level managers or administrators, information about what is going on.

Communication skill enables a manager to perform them properly. Most of his time, a manager’s job is to interact with people inside and outside of the organization.

Manager’s ability to communication with individuals and groups, controlling and motivation they are what Interpersonal and Communication skill are. A manager requires having an effective Interpersonal and communication skill to keep the responsibilities given to him.

Decision-Making Skill

In simple words, a manager’s job is to make decisions that will lead the organization to the attainment of is goals. Decision making skill is the skill that makes a manager able to recognize opportunities and threat and then select an appropriate course of action to tackle them efficiently so that the organization can benefit them.

Diagnostic and Analytical Skills

A good manager has diagnostic and analytical skill in his bag. Diagnostic skill refers to the ability to visualize the best response to a situation. Analytical skill means, the ability to identify the key variables in a situation. Manager’s diagnostic and analytical skills help him to identify possible approaches to a situation. After that is also helps a manager to visualize the result or outcomes of these approaches. This skill sounds similar to the decision-making skill, but it is the skill required to make the decision.

These are the skills an ideal manager must have. These skills are inter-related and irreplaceable. A manager is appointed for making a decision. So, to make the decision he or she needs to identify a situation which could be opportunities or threat. Conceptual knowledge is essential for this as it helps the manager has a complete understanding of the organization. A manager cannot decide without diagnosing and analysing. Diagnosing and analysing the situation is required to tackle a situation and for this need’s information and resources.

Collecting Information and gathering resources requires communication with colleagues at work and people’s outsides the organization. Persuading, leading, motivating is required and get the best out of them. A manager cannot just give decisions and sit in this office; he needs to have technical skills is for performing the task which was set by the decision. A good manager has all these skills, but it is not necessarily true that all of them are equally important or required for the assigned job or post of a manager. The relative importance of these skills of a manager depends on the manager rank of his in the organizational hierarchy.

Q6) Write the management principles of Henry Fayol.

A6) 1 Authority and responsibility goes hand in hand Fayol argued that authority flows from responsibility. Managers who exercise authority over others must take responsibility for both decisions and results. He viewed authority as a corollary of responsibility. Authority is both official and private. Official authority springs from the manager's position within the organizational hierarchy and private authority is formed from intelligence, experience, moral worth, past service, etc. A corollary of the principle that no manager should tend authority unless he assumes responsibility is that those that have responsibility should even have corresponding authority so as to enable them to initiate action over others and command the resources necessary for the performance of their functions.

2. Unity of command: This principle holds that an employee should have just one boss and receive instructions from him only. Fayol discovered that if this principle is disobeyed, authority is going to be undermined, discipline are going to be jeopardized, order are going to be disturbed and stability are going to be threatened. Dual control may be a permanent source of conflict. Therefore, in every organization, each subordinate must have a superior whose mandate he must obey.

3. Unity of direction: this suggests that each one the executive and operational activities that relate to a special group with an equivalent objective must be directed by “a boss and an idea. However, it doesn't mean that each one decision must be made up of above. It just means all related activities should be led by one person. For instance, all marketing activities like product strategy and policy, advertising and advertisement, channel policy, product pricing policy, marketing research, etc., should be under the controlled by a manager and directed by an integrated plan.

4. Scalar chain of command: consistent with Fayol, the scalar chain is that the chain of superiors that goes from the very best authority to rock bottom ranks. The road of authority is that the route followed through each link within the chain by all communications that start from or attend the last word authority.

5. Division of labour: this is often the principle of specialization that, consistent with Fayol, applies to all or any sorts of work, both managerial and technical. It helps an individual acquire a skill and precision with which he can do more and better work with an equivalent effort. Therefore, the work of everyone within the organization should be limited the maximum amount as possible to the performance of one leadership role.

6. Discipline: Discipline may be a sine qua non condition for the right functioning of a corporation. The members of a corporation must perform their functions and behave in reference to others in accordance with rules, norms and customs. Consistent with Fayol, the simplest thanks to maintain discipline is: (i) to possess good superiors in the least levels; (ii) agreements (entered into with individual employees or with a union, because the case may be) that are the foremost clear and fair as possible; and (iii) sanctions imposed with criteria.

7. Subordination of the individual interest to the general interest: The interest of the organization is above the interests of the individual and the group. It can only be achieved when senior managers in the organization set an example of honesty, integrity, fairness and fairness. It will involve an attitude and a spirit of sacrificing your own personal interests whenever it is evident that those personal interests are in conflict with the interests of the organization. However, it can be emphasized that social and national interests must take precedence over organizational interests whenever the two are opposed to each other.

8. Remuneration: Employees must receive fair and equitable remuneration. Differences in pay should be based on job differences, in terms of employee qualities, application, responsibility, working conditions, and job difficulty. You must also take into account factors such as cost of living, general economic conditions, demand for labour, and the economic status of the business.

9. Centralization: Fayol believed in centralization. However, he did not contemplate the concentration of all decision-making authority in senior management. However, he argued that centralization and decentralization is a matter of proportion. In a small business with a limited number of employees, the owner-manager can give orders directly to everyone. However, in large organizations, where the worker is separated from the CEO through a long scalar chain, decision-making authority must be distributed among several managers to varying degrees. Here one generally encounters a situation of decentralization with centralized control. The degree of centralization and decentralization also depends on the quality of the administrators.

10. Order: Order, in Fayol's conception, means the right person in the right job and everything in its proper place. This type of order depends on a precise knowledge of the human and resource requirements of the concern and a constant balance between these requirements and resources.

11. Fairness: Means that subordinates should be treated fairly and kindly. This is essential to awaken your devotion and loyalty to the company. Therefore, it is the CEO's duty to instil a sense of fairness at all levels of the scale chain.

12. Stability of staff tenure: Management policies should provide a reasonable sense of job security. The hiring and firing of personnel should not depend on the whims of superiors but on well-conceived personnel policies. He points out that it takes time for an employee to learn his job; If they drop out or are discharged in a short time, the learning time is lost. At the same time, those deemed inappropriate should be eliminated and those deemed competent should be promoted. However, "a middle manager who stays is infinitely preferable to top managers who come and go."

13. Initiative: focuses on the ability, attitude and resourcefulness to act without being asked by others. Managers must create an environment that encourages their subordinates to take initiative and responsibility. Since it provides a sense of great satisfaction to smart employees, managers must sacrifice their personal vanity to encourage their subordinates to show initiative. However, it should be limited, according to Fayol, by respect for authority and discipline.

14. Esprit de Corps: Cohesion and team spirit should be fostered among employees. One of the main characteristics of organized activity is that several people work together in close cooperation to achieve common goals. An environment must be created in the organization that induces people to contribute to the efforts of others in such a way that the combined effort of all together promotes the achievement of the general objectives of the company. Fayol warns against two enemies of the esprit de corps, viz. (i) divide and conquer, and (ii) abuse of written communication. It may be to the company's benefit to divide its enemy, but it will surely be dangerous to divide the workers themselves. Rather they should be soldiers in cohesive and highly interactive task forces. Over-reliance on written communication also tends to disrupt team spirit. Written communication, when necessary, should always be complemented by oral communication because face-to-face contacts tend to promote speed, clarity, and harmony.

Q7) What are the Scientific management principles proposed by Taylor?

A7) The scientific management principles proposed by Taylor are-

1. Science, not a rule of thumb:

To increase organizational efficiency, the "rule of thumb" method must be replaced by methods developed through scientific work analysis.

Golden rule means the decisions made by the manager based on his personal judgment. Taylor says that even a small manufacturing activity, such as loading iron sheets into rail cars, can be scientifically planned. This will help save time and human energy. Decisions must be based on scientific research with cause-and-effect relationships.

The work assigned to any employee must be observed and analysed with reference to each element or a part of it and therefore the time involved in it to make a decision the simplest way to perform that work and determine the standard performance for it.

2. Harmony, not discord:

Taylor emphasized that there must be complete harmony between the workers and the management since if there is any conflict between the two, it will not be beneficial to either the workers or the management.

Both management and workers must realize the importance of each. To achieve this level, Taylor proposed that an entire mental revolution on the part of both management and workers.

He means that there must be a complete change in the attitude and perspective of workers and management towards each other. It should always be kept in mind that prosperity for an employer cannot exist for long unless it is accompanied by prosperity for the employees of that organization and vice versa.

It is possible to (a) share a part of the surplus with the workers (b) the training of the employees, (c) the division of labour (d) the team spirit (e) the positive attitude (f) the sense of the discipline (g) sincerity, etc.

The management must always be willing to share the profits of the company with the workers and the latter must give their full cooperation and hard work to achieve the organizational objectives. Group action with mutual trust and understanding must be perfect to understand the focus of work. This principle requires that there's an ideal understanding between management and workers which both feel a part of an equivalent family. It helps to produce a synergistic effect as both management and workers work in unison.

3. Mental revolution:

It involves a change in the behaviour of workers and management towards each other. Both must realize the importance of the other and work with full cooperation. Both management and workers should aim to increase the profits of the organization.

To do this, the workers must do their best to make the company profit and, on the other hand, the management should share part of the profits with the workers. Therefore, the mental revolution requires a complete change in the perspective of both the management and the workers. There should be a spirit of union between workers and management.

4. Cooperation, not individualism:

This principle is an extension of the "harmony, not discord" principle and emphasizes mutual cooperation between workers and management. Cooperation, mutual trust, and a sense of goodwill must prevail among both managers and workers. The main motive is to replace internal competition with cooperation.

Both "management" and "workers" must realize the importance of each other. Workers should be considered part of management and allowed to participate in management's decision-making process. Management should always accept their proposal and should also reward them if their suggestions prove beneficial to the organization, viz. Cost reduction or production increase, etc.

At the same time, workers must also resist the strike or make unnecessary demands on management. Workers must be treated as an integral part of the organization and all-important decisions must be made after proper consultation with workers. Both must see themselves as two pillars whose strength alone can guarantee the achievement of the common objectives of the organization.

Taylor also suggested that there should be a proper division of labour and responsibility between the two. Management must always guide, encourage and assist workers.

5. Development of each and every one of the people towards their greater efficiency and prosperity:

The efficiency of any organization also largely depends on the skills and abilities of its employees. Therefore, it was considered essential to provide training to workers to learn the best method developed using the scientific approach. To achieve efficiency, steps must be taken from the employee selection process. Employees must be scientifically selected.

Q8) Explain the Neo-classical theory.

A8) In general, most people identify neoclassical theory with the human relations movement in which Elton Mayo had pioneered. Mayo and his collaborators carried out the Hawthorne experiments that formed the basis for this theory. In this article, we will talk about the Neoclassical Theory of Organizations.

Hawthorne's experiments revealed that an informal organization, as well as socio-psychological factors, exert a much greater influence on human behaviour than psychological variables.

Therefore, these findings focused on human beings and their behaviour in organizations.

Therefore, neoclassical theory is also called the behaviour theory of organizations or human relations approach.

The main propositions are the following:

1. Generally speaking, an organization is a social system. Also, it has several interacting parts.
2. There is an informal organization within each formal organization. More importantly, the two affect each other.
3. Human beings are interdependent. Therefore, the organization can predict its
4. Behaviour if you look at social and psychological factors.
5. Motivation is a very complex process. Several socio-psychological factors work together to motivate people at work.
6. Human beings don't always act rationally. In fact, the most irrational behaviour is when they seek rewards at work.
7. Normally, the objectives of the organization conflict with the objectives of each individual. Therefore, it is important to reconcile these objectives.
8. Another important aspect of running an organization is teamwork. However, organizations must work to achieve this.

Furthermore, neoclassical writers offered an organizational design as follows:

1. Flat structure: the scalar chain is shorter. Therefore, communication and motivation are more effective.
2. Decentralization: a decentralized structure allows initiative and autonomy at lower levels.

Informal organization: a formal organization represents the official channels of interaction. However, it has many weaknesses. Therefore, an informal organization can fill these gaps and meet people's social and psychological needs.

Q9) Explain the human relations approach.

A9) The human rationalists, which also denotes the neoclassicals, focused on the human aspect of business. These theorists emphasize that the organization is a social system and the human factor is the most vital element within it.

There are numerous basic principles of the Human Relations Approach listed below:

Decentralization: The concept of hierarchy employed by classical management theorists is replaced by the thought that individual workers and functional areas (i.e., departments) should have greater autonomy and decision-making power. This needs a greater emphasis on lateral communication so that coordination of efforts and resources can occur. This communication occurs through informal communication channels rather than formal and hierarchical ones.

Participatory Decision Making: Decision making is participatory in the sense that those who make day-to-day decisions include line workers who are not normally considered "management." The greater sovereignty granted to individual employees and the consequent reduction in the "height" and increased scope of control of the organizational structure requires that they have the knowledge and ability to make their own decisions and the communication skills to coordinate their efforts with others without close staff. Supervisor.

Concern for the development of self-motivated employees: The importance of a decentralized and autonomous decision-making system by the members of the organization requires that these members be extremely "self-motivated." The goal of managers in an organization of this type is to design and implement organizational structures that reward that self-motivation and autonomy. Another is negotiating working relationships with subordinates that foster effective two-way communication.

Therefore, the human relations approach implies modifications in the structure of the organization itself, in the nature of the work and in the association between manager and assistant. Each of these changes depends on assumptions about the individual, the organization, and communication, like any other theory of organizations. Elton Mayo and others organized an experiment that came to be known as Hawthorne experiments and explored informal groupings, informal relationships, communication patterns, and internal leadership patterns. Elton Mayo is often popular as a parent at the School of Human Relations. Human relationships defend various factors after performing the Hawthorne experiments mentioned below:

1. Social system: The organization in general is a social system that consists of numerous interacting parts. The social system established individual roles and establishes norms that may differ from those of the formal organization.
2. Social environment: The social climate of work affects workers and is also affected.
3. Informal organization: The informal organization also exists within the framework of the formal organization and affects and is affected by the formal organization.
4. Group dynamics: In the workplace, workers often do not act or react as individuals but as members of a group.
5. Informal Leader: There is an appearance of informal leadership as opposed to formal leadership and the informal leader sets and enforces group norms.
6. Non-financial reward: money is an encouraging element, but not the only motivator of human behaviour. Men have various motivations and socio-psychological factors act as important motivators.

Q10) Explain the behavioural approach.

A10) The behavioural approach to management evolved primarily because practicing managers found that adopting the ideas of the classical approach did not achieve full efficiency and harmony within the workplace. The behavioural approach to management showcased what classical advocates missed: the human aspect. Classical theorists viewed organization from a production perspective, advocates of behaviour viewed it from the individual's point of view. The behavioural approach to management shows cased independent behaviour and group processes and recognized the importance of behavioural processes at work.

Some of the main behavioural researchers who made significant contributions to the behavioural approach to management are: Mary Parker Follett, Douglas McGregor, Kurt Lewin, Chester Barnard, Abraham Maslow, George Romans, etc.

Branches of the behavioural approach to management

The behavioural approach has been divided into two branches: the human relations approach and therefore the behavioural science approach. Within the human relations approach, managers must know why their subordinates behave the way they are doing and what psychological and social factors have an impression on them. Supporters of this approach strive to point out how the method and functions of management are influenced by differences in individual behaviour and therefore the influence of groups within the office.

Q11) What is Human relations approach.

A11) The term human relations mean the way that managers connect with their subordinates. Managers face many difficulties because staff members generally don't adhere to predetermined and balanced patterns of behaviour. Supporters of the human relations approach feel that management must recognize employees' need for social recognition and acceptance. Management should view the work group as a positive force which will be used productively. Therefore, managers must be proficient in human relations skills alongside technical skills. The initial stimulus for the movement came from Hawthorne's experiments:

1. Lighting experiments

2. Relay assembly testing room

3. Interview program

4. Bank wiring testing room

Q12) What is behavioural science approach.

A12) The behavioural science approach is really an extension of the human relations approach. It valued the attitudes, behaviour, and performance of people and groups within organizations. Proponents of the behavioural science approach consider humans to be far more complex than the classical approach's description of economic man and social man's description of the human relations approach. This approach focuses on the character of the work and therefore the degree to which it'll satisfy the human got to demonstrate skills and knowledge.

To achieve better employee performance, communication, motivation, participatory management, leadership and social psychology are integrated into this approach. The behavioural approach recognizes the standard of leadership as a crucial element in managerial success. It focuses on the group relationship and recognizes a part of the individual mindset and group behaviour in organizational effectiveness. Abraham Maslow, Fredrick Herzberg, Douglas McGregor, Victor Vroom, James March, Herbert Simon, Chester Barnard, etc., made significant contributions to behavioural science. Getting closer.

Contributions of the behavioural approach

1. Improved use of teams to realize organizational goals.
2. Emphasis on staff training and development.
3. Use of innovative rewards and incentives techniques.
4. Furthermore, the most focus in modern management theory led to empowering employees through shared information.

Limitations of the behavioural approach to management

Challenges for managers in difficult situations and therefore the reality that human behaviour is complex. This complicated the matter for managers trying to use insights from the behavioural sciences that changed regularly when different behavioural scientists offered different alternatives.

Q13) Explain Systems Approach.

A13) The systems approach is concerned with thoroughly understanding the organization as an open system that converts inputs into outputs. The systems approach had a major impact on management thinking in the 1960s. During this period, thinking about management practices allowed managers to relate different specialties and parts of the business to each other, as well as to external environmental factors.  The system approach focuses on the organization as a whole, its communication with the environment and its need to achieve balance.

In short, there are important management theories, and each theory plays a different role in understanding what managers do. Management is a global, interdisciplinary field that has developed in parts over the years. Numerous approaches to management theory were developed including the universal process approach, the operational approach, the behavioural approach, the systems approach, the contingency approach, and others. F W Taylor, Adam Smith, Henry Fayol, Elton Mayo and others have contributed to the development of the management concept. The classical management approach had three main categories including scientific management, administrative theory, and bureaucratic management. The scientific direction highlighted the scientific study of working methods to improve the efficiency of workers. Bureaucratic management deals with the characteristics of a perfect organization that operates on a rational basis. Management theory explored the principles that managers could use to synchronize the internal activities of organizations. The behavioural approach arose primarily as a result of Hawthorne's studies. Mary Parker Follet, Elton Mayo and their associates, Abraham Maslow, Douglas McGregor and Chris Argyris were the main protagonists of this school.

Q14) What is Contingency Approach?

A14) This approach to management thinking focuses on management principles and concepts that do not have general and universal application under all conditions. Joan Woodward in the 1950s has helped develop this approach to management. The contingency school asserts that management is situational and the study of management recognizes the important variables in the situation. It is distinguished that all the subsystems of the environment are interconnected and interrelated. By studying their interrelationship, management can find a solution to a specific situation. Theorists claimed that there is no effective way of doing things in all business conditions. Methods and techniques that are extremely effective in one situation may not give the same results in another situation. This approach proposes that the role of managers is to recognize the best technique in a particular situation to achieve business objectives.

Managers must develop an understanding of the situation and practical selectivity. Contingency visions are applicable in the development of the organizational structure, in the decision of the degree of decentralization, in the motivation and leadership approach, in the establishment of communication and control systems, in conflict management and in the development and employee training. The contingency approach is associated with the application of management principles and processes as dictated by the unique characteristics of each situation. It depends on various situational factors, like the external environment, technology, organizational characteristics, manager characteristics, and subordinate characteristics.

Q15) Explain Management by Objectives.

A15) Management by objectives (MBO) could even be a management model that aims to strengthen the performance of a corporation by clearly defining the objectives agreed by both management and employees. According to the theory, having a voice in goal setting and action plans should ensure better participation and engagement among employees, as well as alignment of goals across the organization.

The origins of management by objectives (MBO)

The thought of (MBO) was first sketched by Peter Drucker and after that arise by his student George Odiorne, was popular within the 1960s and 1970s. In his book "The Practice of Management", printed in 1954, Drucker defined variety of preferences or importance for the manager of the longer term. With the advantage of hindsight, it's going to seem obvious that managers must have a place to go before embarking on a journey. They get so indulged in their present activities that they forget their main purpose. In some cases, it may be that they focus on this activity as a means of avoiding the uncomfortable truth about the condition of their organization. MBO received a lift when it declared itself an integral a part of “The HP Way,” the widely acclaimed management sort of Hewlett-Packard, a computer company. At every level at Hewlett-Packard, managers had to develop goals and integrate them with those of other managers and the company as a whole. This was done by drawing up written plans that showed what people needed to accomplish if they wanted to achieve those goals. The plans were then shared with others within the corporation and coordinated.

Key management by objectives (MBO) concepts

The core concept of MBO is planning, which suggests that a corporation and its members aren't simply reacting to events and problems, but are proactive. MBO requires employees to line measurable personal goals supported organizational goals. For example, a goal for a engineer could also be to finish the infrastructure of a housing division within subsequent twelve months. Goals are set in writing annually and are continually monitored by managers to verify progress. The rewards are based on the achievement of goals.

MBO Features

A discussion of various MBO definitions highlights the following characteristics:

1. MBO is not merely a technique, but a management philosophy. A technique is applicable only in specific areas, but a philosophy or approach guides and influences all aspects of management. MBO is an approach that includes several techniques for better management.

2. In this approach, superiors and subordinates collectively decide various goals of the organization and individuals. These objectives become the goals to be achieved by various people in the organization. Goal review is also done collectively.

3. Corporate, departmental, and individual objectives are used as a benchmark for measuring performance. A comparison of objectives and actual results will allow managers to judge the performance of subordinates and the higher level will similarly evaluate the performance of managers.

4. MBO provides a periodic performance review. This review is normally done once a year. It emphasizes initiative and the active role of the manager who is responsible for achieving the objectives. The review is forward-looking and provides a basis for planning and corrective actions.

5. MBO objectives provide guidelines for the proper system and procedures. The degree of delegation of authority, determination of responsibility, allocation of resources, etc. It can be decided based on the goals of several people. These goals also become a basis for reward and punishment in the organization.

Q16) What are the types of business organizations?

A16) The Four main types of business organization: sole proprietorship, partnership, corporation, and Limited Liability Company, or LLC.

Sole Proprietorship

This is a simplest and most common form of business ownership. A business which is owned and run by someone for their own benefit is called sole proprietorship. The business’ existence is entirely dependent on the owner’s decisions, so when the owner dies, so does the business.

Advantages of sole proprietorship:

1. All profits are subject to the owner

2. There is very little regulation for proprietorships

3. Owners have total flexibility when running the business

4. Very few requirements for starting—often only a business license

Disadvantages:

1. Owner is 100% liable for business debts

2. Equity is limited to the owner’s personal resources

3. Ownership of proprietorship is difficult to transfer

4. No distinction between personal and business income

Partnership

Partnership is of two types: general and limited. In general partnerships, both owners invest their money, property, labor, etc. to the business and are both 100% liable for business debts. In other words, even if you invest a little into a general partnership, you are still potentially responsible for all its debt. The partnerships that do not require a formal agreement, that can be verbal or even implied between the two business owners is called general partnership.

The partnership that requires a formal agreement between the partners is called Limited partnerships. They must also file a certificate of partnership with the state. Limited partnerships allow partners to limit their own liability for business debts according to their portion of ownership or investment.

Advantages of partnerships:

1. Shared resources provide more capital for the business

2. Each partner shares the total profits of the company

3. Similar flexibility and simple design of a proprietorship

4. Inexpensive to establish a business partnership, formal or informal

Disadvantages:

1. Each partner is 100% responsible for debts and losses

2. Selling the business is difficult—requires finding new partner

3. Partnership ends when any partner decides to end it

Corporation

Corporations are, for tax purposes, separate entities and are considered a legal person. This means, among other things, that the profits generated by a corporation are taxed as the “personal income” of the company. Then, any income distributed to the shareholders as dividends or profits are taxed again as the personal income of the owners.

Advantages of a corporation:

1. Limits liability of the owner to debts or losses

2. Profits and losses belong to the corporation

3. Can be transferred to new owners fairly easily

4. Personal assets cannot be seized to pay for business debts

Disadvantages:

1. Corporate operations are costly

2. Establishing a corporation is costly

3. Start a corporate business requires complex paperwork

4. With some exceptions, corporate income is taxed twice

Limited Liability Company (LLC)

Similar to a limited partnership, an LLC provides owners with limited liability while providing some of the income advantages of a partnership. Essentially, the advantages of partnerships and corporations are combined in an LLC, mitigating some of the disadvantages of each.

Advantages of an LLC:

1. Limits liability to the company owners for debts or losses

2. The profits of the LLC are shared by the owners without double-taxation

Disadvantages:

1. Ownership is limited by certain state laws

2. Agreements must be comprehensive and complex

3. Beginning an LLC has high costs due to legal and filing fees.

Q17) What are the current trends and issues in management?

A17) The recent trends in management are-

A17) 1. Workforce Diversity

Workforce diversity is the involvement of heterogeneous types of employees in the organization who represents their age, gender, and ethnicity. Due to changes in population dimensions, improved workforce, social pressure, and increased globalization the diversity is constantly increasing.

The world’s increasing globalization requires more interaction among people from diverse cultures, beliefs, and backgrounds. People no longer live and work in an insular marketplace, they are now part of the worldwide economy with competition coming from nearly every continent. Due to these reasons, profit and non-profit organizations need more diversity to become more creative and open to change.

Managing diversity in the workplace has become an important issue for management today. An efficient manager has to manage a diverse workforce from both an individual and organizational approach. May from an individual approach he has to develop a better environment like understanding, empathy, tolerance, and willingness to communicate with his employees. And, from an organizational approach may he has to develop policies, training, practices, and good culture in the organization.

2. Outsourcing

Outsourcing means getting resources from outside. It is the process of providing some parts of jobs to other organizations to bring quality and get the benefit of specialization.

It is an important means of reducing costs and improving quality. If an organization performs every activity by itself, it may not be able to perform the activity efficiently and the quality of product or service may also be inferior. Thus, organizations have to identify certain areas that can be outsourced to minimize the cost of operation and increase the quality of products.

3. Knowledge Management

Knowledge management is the process that helps organizations to identify, select, organize, disseminate, and transfer important information and expertise for organizational prosperity. It emphasizes that knowledge can be turned into business ideas and used for the success of the organization. The effective management of knowledge enables management for effective and efficient problem solving, dynamic learning, strategic planning, and decision making.

It focuses on identifying knowledge, explicating it in such a way that it can be shared formally, and showing its value through reuse. For organizational success, knowledge, as a form of capital, must be exchangeable among persons, and must be able to grow. And, for problem-solving, knowledge, must be captured, so that knowledge management can promote organizational learning, and lead to further knowledge creation.

4. Learning Organization

Learning organization involves institutions where there is the provision of continuous learning to adapt to the changing environment of businesses. You know, the business environment is an ever-changing process. So, to bring new concepts into the business, the innovation of new ideas, models, design, structure, and technology is essential. A business organization performing at the highest level today will not remain the same in the future if there is no provision of learning.

For better learning in the organization, all employees should share information, ideas, knowledge, and work as a team. To cope with the changing environment and new technology, business organizations need to have qualified employees with learning capabilities.

5. Time Management

Time management is prioritizing the activities for using time effectively. It is used for scheduling time. Time is a unique and most important resource and if it is wasted, it can never be recovered.

Time management may help employees who are suffering from a lack of planning, sort out their priorities, etc. It is about balancing different aspects of life which makes the goal achievable. But remember time is always limited.

6. Business Process Reengineering (BPR)

Business process reengineering is a new trend in the management field. It purports that the way work is done should be fundamentally and radically changed so that every effort of the firm is driven to achieve customer satisfaction and thereby greater performance and profitability.

Reengineering is about radical change. It does not mean slight and incremental changes, leaving the basic structure as it was. It means starting from “Scratch”. Reengineering involves redefining the process. It is essential in a condition when the current effort is insufficient for the organizations to satisfy their customers.

7. Conflict Management

Conflict refers to all kinds of opposition or antagonistic interaction between or among individuals and groups. It exists when one party has hampered or is about to hamper the accomplishment of goals.

The manager should identify the reasons for conflicts and solve them through proper ways such as skill encouragement, handling constructive conflict, and resolving dysfunctional conflicts.

8. Stress Management

Stress refers to the body’s psychological, physiological, and emotional response to any demand. Stress occurs when the pressure is greater than resources. Large workload, long work hours, fewer resources, less job security are the major causes of stress to the employees. Stress management is concerned with taking some steps to minimize work stress among working staff. Steps may include changing lifestyle, changing in thinking, and changing in behaviour.

9 .Participative Management

It means involving subordinates in the decision-making process with their immediate superiors. Here, both the manager and the subordinates are involved in the decision-making process. It increases the value of the employees by considering them as part of the management.

Participative management empowers subordinates who know the actual problems and can contribute to better decision-making. It is necessary to consults employees of different inter-dependent departments to bring uniformity in their performance.

10. Green Management

Green management focuses on environmental conservation for the sustainable development of business activities. It focuses on promotions of green technology that presents the most viable way of meeting with the new green-related activities.

In today’s business environment managers have to take a step to protect and preserve the natural environment. To save natural resources most of the large organizations are using renewable energy sources, adopting new technology that reduces energy consumption, preserves forests, and conserves water for future use.

The issues in management are-

1. Ineffective communication

When you become a manager, the dynamic between you and your fellow team members changes. There's now an element of distance between you and them that you need to bridge. If not, this leads to poor communications, which can impact business operations. Management must facilitate interdepartmental communications through active listening and recognition. After all, just one bad management-employee relationship can have consequences for the whole team.

2. Absence of structure

Overseeing a new team can be tough, especially when you're also adjusting to your new role as manager. However, if your team suffers from a lack of structural input from you, this could undermine their working environment. Some teams require more supervision than others to maintain high productivity levels.

3. Performance problems

Performance problems are one of the main challenges managers face. If your team isn't performing to a high standard, it could cause many problems, including:

• a rise in competitor sales
• Damaged relationships between team members
• Trust issues

4. Underperforming employees

Companies usually have management training in place, which covers how to uphold company conduct when dealing with code of conduct violations and other aspects of employee relations. If you haven't received this, follow up with your HR team. This training ensures that you act in line with company processes and policies when letting an employee go, avoiding any repercussions. Other employees may struggle with the loss of a team member. Be sure to check in with your team and ask for feedback on what you can do to mitigate the impact changes have on the organisational structure.

5. Hiring decisions

Some job postings may receive a high number of applicants and, even after narrowing it down to those with relevant skills, the list of your potential candidates is way too big. However, just because someone has all the right qualifications, it doesn't mean they're a good cultural fit. Failing to understand this could lead to you making the wrong hiring decision, which can impede team performance and morale going forward.

6. Workplace conflicts

Personal or professional conflicts that arise between two colleagues are felt throughout the whole team. Management needs to resolve these conflicts quickly to avoid bigger problems, such as:

• Low productivity levels
• a decrease in team morale
• Top team members quitting

7. Ensuring a competitive environment

It's important to always challenge your team members so that they continue to grow and feel as though they're developing in their role. Talented staff need to feel supported and know that you're doing everything you can to further their career. This prevents them from seeking out different jobs or quitting.

8. Burnout

People management issues are a common problem for managers, and sometimes you lose sight of yourself whilst trying to keep your team healthy. It's important to take time away from work and relax every once in a while. If you're constantly stressed and overwhelmed, this burdens your team and causes you to expect too much of them.

9. De-motivation

De-motivation is a factor that underpins all the following problems. If your team feels unchallenged or run down by ineffectual conflict resolution, de-motivation occurs. One person's motivation level can impact the productivity of the whole team. So, if you don't feel motivated, your team won't either.

10. Transitioning roles

If you're promoted within the same company, you could find yourself managing old co-workers. Some individuals may struggle to take you seriously in your new role and treat you unprofessionally. Likewise, you might find it awkward.

11. Reassuring your team

There are certain management situations that can cause a lot of uncertainty for team members who aren't involved in constant communications. For example, fast-paced business environments often lead to redundancies. It's important to understand what this means for your team and address any confusion that occurs.

Q18) What are the types of culture?

A18) The types of culture are-

• The strength of a company’s organizational culture ultimately determines its success.
• Strategically, changing an organization’s culture takes a determined and effective leader who unselfishly puts the organization first before self. A strong culture is one which is deeply embedded in the ways a business or organization does things.
• With a strong culture, employees and management understand what is required of them and they will try to act in accordance with the core values.
• A company with a strong culture provides clear expectations for employees about their jobs, behaviour, and dress.
• There should also be a clear-cut chain of command. This type of atmosphere fosters a sense of wellbeing in employees and helps them to work towards the greater good of the company. The only danger of a strong organizational culture is a concept called “group think”.
• This is a term coined by Irving Janis that occurs because a group thinks so similarly that they lose the ability to become innovative and make poor decisions. In a strong culture, the organization’s core values are both intensely held and widely shared.
• A key benefit of a strong culture is that there is less need for detailed policies and procedures because the “way things are done around here” is well understood and accepted. There are many great examples of organizations with strong cultures.
• Indeed, organizations built on a clearly defined set of core values, consistently applied, use their strong culture as a source of competitive advantage.
• A strong organizational culture works like strong social glue, which bonds members of an organization together through shared goals. This builds loyalty and commitment among the group and makes them less likely to leave their tight-knit organization.
• Although organizations with strong cultures experience fewer turnovers, it doesn’t mean that a strong culture is better than a weak culture in every instance. A strong culture is difficult to change in an organization and can stifle innovation because members of the organization are used to doing their jobs exactly the same way.
• A strong culture exists when employees respond to stimulus because of their alignment to organizational values. Strong cultures help firms operate like well-oiled machines cruising along with outstanding execution. Minor tweaking of existing procedures enhances performance.
• In thriving, profitable companies, employees embody the values, visions and strategic priorities of their company

Weak Culture

• A weak organizational culture is one in which employees are not clear with what their goals are. A weak culture is evident when most employees have varied opinions about the organization’s mission and values.
• The company is disorganized and this requires extra efforts and time to attain maximal unity of purpose. Employees waste time spinning their wheels, because of the inability to focus on what’s important. Weak organizational culture allows for an increase in turnover of employees because of a lack of corporate cohesiveness and mission. This spirals into low employee morale, and employee disengagement. A key consequence of weak culture is that there is a greater need for procedures, policies, and bureaucracy, in order to get things done in the desired way, within the turn, can add substantially to organizational costs.
• Weak cultures can be advantageous for organizations that benefit, from independent thought and innovation by their members. In an unstable environment, organizations with weak cultures often function better than organizations with strong cultures, because they are much more adaptable to change.
• In order for an organization to succeed, the culture of that organization must fit the environment in which it operates.
• Research indicates that the strongest cultures embrace the importance of Kaizen or continuous improvement. Kaizen cultures require both conscious and subconscious thinking about improvements from everyone.
• Conversely, a weak culture exists when there is little alignment with organizational values and control must be exercised through extensive policies, procedures, and bureaucracy.
• Signs of a weak culture include lack of trust; focus on problems, staff losing confidence in their leaders and systems, and people spending more time focusing on problems rather than opportunities.

Soft Vs Hard Culture:

• Soft work culture can emerge in an organisation where the organisation pursues multiple and conflicting goals. In a soft culture the employees choose to pursue a few objectives which serve personal or sectional interests. A typical example of soft culture can be found in a number of public sector organisations in India where the management feels constrained to take action against employees to maintain high productivity. The culture is welfare oriented; people are held accountable for their mistakes but are not rewarded for good performance.
• Consequently, the employees consider work to be less important than personal and social obligations. Sinha (1990) has presented a case study of a public sector fertilizer company which was established in an industrially backward rural area to promote employment generation and industrial activity. Under pressure from local communities and the government, the company succumbed to overstaffing, converting mechanised operations into manual operations, payment of overtime, and poor discipline. This resulted in huge financial losses (up to 60 percent of the capital) to the company.

Formal vs informal culture:

• The work culture of an organisation, to a large extent, is influenced by the formal components of organisational culture. Roles, responsibilities, accountability, rules and regulations are components of formal culture. They set the expectations that the organisation has from every member and indicates the consequences if these expectations are not fulfilled.
• Informal culture on the other hand has tangible and intangible, specific and non – specific manifestations of shared values, beliefs, and assumptions. This part of organisational culture comprising of artifacts, symbols, ceremonies, rites, and stories is highlighted in almost all the definitions of organizational culture.

Q19) What is Organizational culture? How can you create positive organizational culture?

A19) Organizational culture" as comprising a number of features, including a shared "pattern of basic assumptions" which group members have acquired over time as they learn to successfully cope with internal and external organizationally relevant problems.

Organizational culture as a set of shared assumptions that guide behaviours. It is also the pattern of such collective behaviours and assumptions that are taught to new organizational members as a way of perceiving and, even thinking and feeling. Thus, organizational culture affects the way people and groups interact with each other, with clients, and with stakeholders. In addition, organizational culture may affect how much employees identify with an organization.

The organizational culture influences the way people interact, the context within which knowledge is created, the resistance they will have towards certain changes, and ultimately the way they share (or the way they do not share) knowledge. Organizational culture represents the collective values, beliefs and principles of organizational members. It may also be influenced by factors such as history, type of product, market, technology, strategy, type of employees, management style, and national culture. Culture includes the organization's vision, values, norms, systems, symbols, language, assumptions, environment, location, beliefs and habits.

Creating Positive Organizational Culture

An organizational culture is created with the combination of certain criteria that are mentioned below −

• The founder of the organization may partly set a culture.
• The environment within which the organization standards may influence its activities to set a culture.
• Sometimes interchange of culture in between different organizations create different new cultures.
• The members of the organization may set a culture that is flexible to adapt.
• New cultures are also created in an organization due to demand of time and situation.
• The culture of an organizational can change due to composition of workforce, merger and acquisition, planned organizational change, and influence of other organizational culture.
• A positive workplace culture is one that leads to increased productivity, better employee morale and the ability to keep skilled workers. Negative attitudes in the workplace, particularly when they are displayed by management or the small business owner, can have a dramatic impact on the entire workforce. Taking the steps to ensure that a positive culture is present in the workplace will go a long way towards keeping your organization running smoothly and keeping your employees happy.

Step 1: Creating a clear vision statement for your company. Employees like to know that the job they are doing is making a difference. By creating a vision statement about where we want our company to be in the future and how we want it to make the world a better place creates an air of striving for betterment in the workplace. This lays the foundation for a positive work culture.

Step 2: Looking for positive attitudes while hiring. Negative people can quickly sour an entire workplace. When hiring employees, look for a friendly smile and an upbeat disposition. Asking questions of new hires to determine how they handle conflict and interactions with others. If we already have negative employees on staff, take them aside to discuss their attitudes and make it clear that we are creating a positive work culture and negativity will not be tolerated.

Step 3: Making an open-door policy. When the boss is inaccessible and distant to employees, they may not feel as though their opinions matter. Establish an open-door policy and encourage interaction with employees. Asking their opinions, listening to what they have to say and remembering to be positive in our dealings with them.

Step 4: Engage our employees in daily operations of the company. Employees may not realize the good that the company is doing behind closed doors. Keeping them informed about exciting new changes or new horizons will help them stay engaged in the company and feel more positive about the future. Be honest and open with our employees.

Step 5: Let our employees know they are appreciated. Employees who are not recognized for the work they do can feel as though their work is unappreciated. Establish reward systems for excellent performance and never forget to thank an employee for a job well done.

Q20) What is Private enterprise? What are its features? How do private companies work?

A20) A Private Enterprise is an entity that operates under the ownership and management of individuals that freely decided to develop a given business idea. Its freedom from government intervention is what makes it different from a government institution.

 The main distinguishing feature of    private businesses as compared to public companies is that they are managed privately, without any influence or involvement from the government. Here are some additional features that help the private sector and private enterprises stand out:

1. Motive: The main motive of private enterprises is to make a profit. This isn't the case with the public sector, which is more focused on providing essential services or infrastructure for the public.
2. Financing: Private enterprises can obtain financing in a range of ways. Often, private business owners need to raise their own capital to start their businesses, seek out the assistance of investors and shareholders, or take loans. Private enterprises will usually not receive much governmental support unless they are of a certain level of status and influence.
3. Private Control: Private business owners and management teams are the people who make the decisions for these businesses. There can be one decision-maker or several, but the key feature is that there is no state or governmental participation on the decision-making process.
4. Competitive Culture: There's a lot of competition in the world of private enterprises, which does not exist in the same way in the public space, as private businesses are often vying to be leaders in their respective industries, with the most profits and customer attention. This competitive nature can result in different working conditions and environments for private-sector workers.

Private enterprises or privately-held companies can work in a number of different ways and fall into different categories, depending on their structure and ownership style. Some of the main varieties of private enterprises include S-corps, C-corps, and LLCs.

They can have very different sizes and scales, too. A small independent bakery, for example, can be classed as a private enterprise, and so too can a globally-known smartphone brand or technology company.

Private companies can therefore work in various ways, depending on the industry they're operating in and the scale of their operations.

They have access to bank loans and other financial services too, but many larger private companies eventually choose to go public in order to raise more money as they evolve and expand.