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5. People are not by nature passive or resistant to organizational needs. They have become so as a result of experience in organisations. 6. An average human being learns under proper conditions. He is also willing to accept responsibility. 7. The intellectual capacity of an average human being is utilised partially under the conditions of modern industrial life. Final Glance on Theory X and Theory Y Such types of people (employees) are self-motivated and McGregor recommends that they be motivated by encouraging participation so as to get team work. Theory Y assumes that people are not by nature, lazy and unreliable. They can be selfdirected and creative at work, if properly motivated. It is for the management to unleash this potential in individuals (employees). Theory Y emphasizes creating opportunities, removing obstacles, providing guidance and encouraging growth. By using these tools, the management can integrate individual goals of employees with those of the Organisation. The assumptions in Theory X and Theory Y are fundamentally distinct. Theory X is static, rigid, conservative and pessimistic. Theory Y is optimistic, dynamic, flexible and progressive. It suggests self direction and the integration of individual needs with organizational needs. On the other hand, more importance is given to external control imposed by the superior on the subordinate in the Theory X.
Mayos team altered the female workers working conditions and then monit ored how it affected the workers morale and productivity. The changes in working conditions included changes in working hours, rest brakes, lighting, humidity, and temperature.
The results during and after the experiments led Mayo to conclude that, workers were motivated by psychological conditions more than physical working condition.
There is an unwritten understanding between the worker and employer regarding what is expected from them; Mayo called this the psychological contract. A workers motivation can be increased by showing an interest on them. Mayo classified studying the workers (through the experiments) as showing an interest on the workers. Work is a group activity, team work can increase a workers motivation as it allows people to form strong working relationships and increases trust between the workers. Work groups are created formally by the employer but also occur informally. Both informal and formal
groups should be used to increase productivity as informal groups influence the workers habits and attitudes. Workers are motivated by the social aspect of work, as demonstrated by the female workers socialising during and outside work and the subsequent increase in motivation. Workers are motivated by recognition, security and a sense of belonging. The communication between workers and management influences workers morale and productivity. Workers are motivated through a good working relationship with management.
Interpersonal relations-The relationship of the employees with his peers, superiors and subordinates 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 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 theorys reliability is uncertain. Analysis has to be made by the raters (person who rates). The rater 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, Herzbergs Two-Factor theory is acceptable broadly.
Physiological needs- These are the basic needs of air, water, food, clothing and shelter. In other words, physiological needs are the needs for basic amenities of life. Safety needs- Safety needs include physical, environmental and emotional safety and protection. For instance- Job security, financial security, protection from animals, family security, health security, etc. Social needs- Social needs include the need for love, affection, care, belongingness, and friendship. Esteem needs- Esteem needs are of two types: internal esteem needs (self- respect, confidence, competence, achievement and freedom) and external esteem needs (recognition, power, status, attention and admiration). Self-actualization need- This include the urge to become what you are capable of becoming or what you have the potential to become. It includes the need for growth and selfcontentment. It also includes desire for gaining more knowledge, social- service, creativity and being aesthetic. The self- actualization needs are never fully satiable. As an individual grows psychologically, opportunities keep cropping up to continue growing. According to Maslow, individuals are motivated by unsatisfied needs. As each of these needs is significantly satisfied, it drives and forces the next need to emerge. Maslow grouped the five needs into two categories - Higher-order needs and Lower-order needs. The physiological and the safety needs constituted the lower-order needs. These lower-order needs are mainly satisfied externally. The social, esteem, and self-actualization needs constituted the higher-order needs. These higher-order needs are generally satisfied internally, i.e., within an individual.
For eg, Implication of Maslows Hierarchy of Needs Theory for Managers As far as the physiological needs are concerned, the managers should give employees appropriate salaries to purchase the basic necessities of life. Breaks and eating opportunities should be given to employees. As far as the safety needs are concerned, the managers should provide the employees job security, safe and hygienic work environment, and retirement benefits so as to retain them. As far as social needs are concerned, the management should encourage teamwork and organize social events. As far as esteem needs are concerned, the managers can appreciate and reward employees on accomplishing and exceeding their targets. The management can give the deserved employee higher job rank / position in the organization. As far as self-actualization needs are concerned, the managers can give the employees challenging jobs in which the employees skills and competencies are fully utilized. Moreover, growth opportunities can be given to them so that they can reach the peak. Limitations of Maslows Theory
It is essential to note that not all employees are governed by same set of needs. Different individuals may be driven by different needs at same point of time. It is always the most powerful unsatisfied need that motivates an individual. The theory is not empirically supported. The theory is not applicable in case of starving artist as even if the artists basic needs are not satisfied, he will still strive for recognition and achievement.
Module ll
Departmentation
The division of labour divides the jobs into smaller activities. In order to coordinate these activities, they are grouped together. The basis by which these activities are grouped together are known as departmentation. It may be defined as the process of forming departments or grouping activities of an organization into a number of separate units for the purpose of efficient functioning. This term vary a great deal between different organizations. For example, in business undertaking, terms are division, department and section; in Government these are called branch, department and section; in military, regiment, battalion groups and company. The impact of departmentation is a delineation of executive responsibilities and a grouping of operating activities. The major benefits of departmentalization are:
Specialization: Departmentation leads to the benefits of specialization as various organizational activities are grouped according to their relation with the specific functions or objectives. Every departmental manager specializes in the tasks assigned to him. Administrative control: Departmentation helps in effective managerial control because the standards of performance for each and every department can be laid down precisely. Every department has a specific objective. This also facilitates keeping expenditure within limits. Fixation of responsibility: Since organization work is divided into manageable units, and authority and responsibility are precisely defined, it is easier to fix the accountability of different managers for the performance of various tasks. Freedom or autonomy: The departments created through departmentation are semiautonomous units. Their heads are given a sufficient degree of authority to run their departments. This increases the efficiency of the departments. Development of managers: Departmentation helps in the development of managerial personnel by providing them opportunities to take independent decisions and initiative. The executives can develop themselves for promotion to higher jobs. Span of Control: The departmentation reflects the types of jobs which are grouped together. Different persons are involved in performing these jobs. They are required to be supervised closely.
Decentralization:
The degree, to which decision making power is extended to the lower levels of management in the organization is called decentralization. There are some organizations, where top management makes all the decisions and middle and lower level managers merely implement the decisions taken by the top management. At the other extreme, there are some organizations in which decisions are made at all levels of management. The first case fits into the centralized structure where as the second one is highly decentralized. One of the fourteen principles of Henry Fayol happens to be centralization. According to him, decreasing the role of subordinates in decision-making is centralization; increasing their role is decentralization. Fayol believed that managers should retain final responsibility but at the same time give their subordinates enough authority to do their jobs properly. Decentralization is the systematic effort to delegate to the lowest levels all authority except that which can be exercised at central points. It is the pushing down of authority and power of decision-making to the lower levels of organization. The centers of decisionmaking are dispersed throughout the organization. The essence of decentralization is the transference of authority from a higher level to a lower level. It is a fundamental principles of democratic management where each individual is respected for his inherent worth and constitution. The larger the size of an organization, the more urgent is the need for decentralization. This does not mean that decentralization is good and centralization is bad. Decentralization is a correlate of delegation; to the extent that authority is not delegated, it is centralized. Absolute centralization decreases the role of subordinate managers which
in turn encourages decentralization. Absolute decentralization is also not possible because managers cannot delegate all their authority. Centralization refers to the degree to which decision making is centralized in the organization. Absolute centralization is untenable because it would mean that subordinates have no duties, power or authority. Centralization may be essential in small organization.
Virtual Organization
The virtual organization is used to describe a network of independent firms that join together, often temporarily, to produce a service or product. Virtual organization is often associated with such terms as virtual office, virtual teams, and virtual leadership. The ultimate goal of the virtual organization is to provide innovative, high-quality products or services instantaneously in response to customer demands. When an organization assembles resources from a variety of firms, a virtual organization seems to have more capabilities than it actually possesses. Partners in virtual organizations share risks, costs, and rewards in pursuit of a global market. The common characteristics of these organizations include a purpose that is motivated by specific market opportunities, world-class core competence, interdependent relationships, and permeable boundaries. Virtual organizations represent structures that are motivated by specific market opportunities. Virtual teams: a group of people who interact through interdependent tasks guided by a common purpose. Unlike conventional teams, a virtual team performs work across space, time, and organizational boundaries.
Virtual leader: The leader of a virtual organization demands a new set of skills unlike the skills required in a traditional hierarchy. e.g. An industry that is known for its use of partners and alliances is the entertainment industry, which has partnered with the computing, communications, consumer electronics, and publishing industries to convert movies, textbooks, and other software into digital formats.
Concept: The inverted pyramid is a metaphor for a reversal of traditional management practices. Employees who are closest to clients or production processes are placed at the top and managers at the bottom. The employee is empowered with greater decision-making authority and freedom of action. In theory, overall organizational performance becomes faster, more adaptable and more effective Development: Successfully shifting decisions to employees at the base of the pyramid requires that those employees develop new skills. Adequate resources must be devoted to developing a skill set that includes cooperation and decision making. Employees in an inverted pyramid situation also need more information and communication. To make effective decisions, each employee must understand organizational goals and the role she has in achieving those goals. Management: To successfully invert the organizational pyramid, management has to be consistent when shifting decision making to employees. The resources needed to develop the necessary skill set must be allocated, and the manager should take on the role of mentor or coach. Finally, success depends on trusting employees and demonstrating a genuine willingness to share authority.
Identification: In a lean organizational structure, the organizational arrangement should flow along product and process lines rather than on functional areas. For instance, some lean companies set up integrated product and process teams as self-organized work teams. A dedicated team for each product family could include expertise from different functional areas such as marketing, purchasing, manufacturing, quality assurance and customer relations. Reporting Structure: Work teams in lean organizational structures should not be set up to report through many layers in a hierarchy. Instead, the reporting structure should focus on a connected set of activities in a horizontal stream. Benefits: A lean organizational structure helps promote lean objectives such as minimizing waste through continuous improvement. This sort of structure reduces the need for nonessential functions and enhances efficiency and flexibility.
Features: In a flat organization structure, there are few levels of command that exist between the employee and the top management. This structure is best suited to small organizations. Function: This structure is used by organizations where employees are vested with decisionmaking powers. Hotels, spas, restaurants and beauty parlours use this structure. The employees are required to use their judgement and customize the product as per the customers specifications. Advantages: Communication flows are greatly enhanced here. The management and the employees work together toward achieving organizational goals and objectives. As the roles of middle men are eliminated, the company does not end up paying unnecessary salaries. Also, as the employees use their judgment and discretion in carrying out work, the response times are very fast. Disadvantages: The main problem here is that an employee might be reporting to more than one superior. There is no clarity on whose work he must complete first. Also, this structure is suited only to small organizations that have limited numbers of employees.
A team structure is cross-functional. It combines workers with various skills, like management, administrative assistants and sales. Interdepartmental: Cross-functional teams are also interdepartmental; this means that people from various departments are included. For example, staff from marketing may work with staff from accounting on a Advantages: A team structure has the advantage of speeding up the work flow and lowering costs. It also generally improves employee motivation and eliminates unnecessary layers of management. Disadvantages: The disadvantages to a team structure are that it increases the time spent in meetings, and that time management is more challenging. What's more, staff may feel that their work with the team conflicts with their work in their department.
The main stages of the product life cycle are: Introduction researching, developing and then launching the product Growth when sales are increasing at their fastest rate Maturity sales are near their highest, but the rate of growth is slowing down, e.g. new competitors in market or saturation Decline final stage of the cycle, when sales begin to fall
This can be illustrated by looking at the sales during the time period of the product. A branded good can enjoy continuous growth, such as Microsoft, because the product is being constantly improved and advertised, and maintains a strong brand loyalty. Extension strategies extend the life of the product before it goes into decline. Again businesses use marketing techniques to improve sales. Examples of the techniques are: Advertising try to gain a new audience or remind the current audience Price reduction more attractive to customers Adding value add new features to the current product, e.g. video messaging on mobile phones
Explore new markets try selling abroad New packaging brightening up old packaging, or subtle changes such as putting crisps in foil packets or Seventies music compilations.
Micromotion Study
It is a technique for recording and timing an activity. It consists of taking motion pictures of the operation with a clock in the picture (or with a video camera running at a known speed). The film is a permanent record of the method and the time and is always ready to be examined when needed. Purposes of micromotion study 1. To assist in finding the preferred method of doing the work. 2. To assist in training the workers to understand the meaning of motion study and to enable them to apply motion economy principles in a professional way. Micromotion study as an aid in improving methods The procedure of making a micromotion study consists of: 1. Filming the operation to be studied. 2. Analyzing the film. 3. Charting the results of the analysis. 4. Developing the improved method. The speed of the camera used ranges from 960 to 1000 frames per minute. But faster cameras may be used to study very fast hand motions or complex operations. The pictures should be enlarged many times to facilitate the analysis of the motions. Micromotion study should be used when it is economical to do so (short cycle highly repetitive operations, large volume production, or operation performed by a large number of workers).
Memomotion Study
In memomotion study, the camera speed is at 60 or 100 frames per minute. In addition to its use in industrial operations, it is used to study many other operations such as check-in operations as airline counters, the manner in which customers select items in the store, traffic flow on highways, and in banks. It costs less than micromotion study (only costs 6% of the cost of a micromotion study).
more efficient and less expensive production processes, the pursuit of quality became a desirable goal. Businesses began to implement quality control programs, and they began to require such programs of their suppliers. Quality control programs proliferated at the same time that businesses were being globalized. This led to the realization that international quality assurance standards were needed to avoid the need to comply with multiple, conflicting systems. The ISO responded to the need for harmonization by publishing the ISO 9000 series standards. The ISO 9000 series is a set of standards for quality management and quality assurance. The standards apply to processes and systems used to produce products; they do not apply to the products themselves. Further, the standards provide a general framework for any industry; they are not industry-specific. A company that has a quality management system (QMS) that is "certified to" ISO 9000 has demonstrated that it has a documented QMS in place and that it is applied consistently. The ISO 9000 series emphasizes prevention of problems and meeting customers' needs. ISO 9000 standards apply to all companies large or small, whether in services or manufacturing. Advantages Creates a more efficient, effective operation Increases customer satisfaction and retention Reduces audits Enhances marketing Improves employee motivation, awareness, and morale Promotes international trade Increases profit Reduces waste and increases productivity Common tool for standardization.
Treating suppliers as business partners whose success is vital to the success of the business itself and who have invaluable technical expertise which can be utilized in improving the end customer experience.
To achieve the above you need a set of tools and techniques, which you can apply, to problem solving or opportunity achievement. The best known TQM Tools and Techniques, to name a few are: 1. Check sheet: pre-formatted lists for noting incidence, frequency, etc., according to known useful criteria 2. Pareto chart: a line and bar graph displaying cause/effect ratios, especially biggest relative cause, based on Pareto theory. 3. Flow chart : A boxes and arrows method of examining activities, potentially used in brainstorming, also found in business process modelling 4. Cause and effect diagram/Fishbone/Ishikawa Diagrams: for identifying cause & effect patterns, in which primary categories are generally pre-determined according to context. 5. Histogram: a bar graph displaying data in simple categories which together account for a total. 6. Scatter diagram: a graph which plots points (typically very many individual instances) according to two variables, which produces a useful visual indication of the relationship between the two variables. 7. Control chart: a standard pattern of performance/time for a given process, often in Run Chart format, which acts as a template to check conformance and deviation. Check Sheet: A simple means of data collection. Function to present information in an efficient graphical format. Defining characteristic of a check sheet is that data is recorded by making marks (checks). Data is read by observing the location and number of marks on the sheet.
Pareto chart Used to identify factors that have the greatest cumulative effect on the system. Pareto principle: 80% of problems stem from 20% of the various causes. A special type of bar chart created by plotting the cumulative frequencies of the relative frequency in descending order. For example, if your business was investigating the delay associated with processing credit card applications, you could group the data into the following categories: 1) No signature 2) Residential address not valid 3) Non-legible handwriting 4) Already a customer 5) Other
Flow Chart Common type of chart. Defined as a pictorial representation of describing a process used to plan stages of a project.
Cause and effect diagram/ Ishikawa diagram/Fishbone Diagram Diagram showing the cause of a certain event. Used to identify potential factors causing an overall effect. Used to see all possible causes of a result and hopefully find the root of process imperfections. It is known as fishbone diagram because its shape is similar to side view of a fish skeleton.
Histogram A Histogram is a graphic summary of variation in a set of data. It enables us to see patterns that are difficult to see in a simple table of numbers. Can be analyzed to draw conclusions about the data set. A histogram is a graph in which the continuous variable is clustered into categories and the value of each cluster is plotted to give a series of bars. The below example reveals the skewed distribution of a set of product measurements that remain nevertheless within specified limits. Without using some form of graphic this kind of problem can be difficult to analyze, recognize or identify.
Scatter Diagram A scatter plot is effectively a line graph with no line - i.e. the point intersections between the two data sets are plotted but no attempt is made to physically draw a line. The Y axis is conventionally used for the characteristic whose behavior we would like to predict. Used, to define the area of relationship between two variables.
Control Chart Control charts are a method of Statistical Process Control, SPC. (Control system for production processes). They enable the control of distribution of variation rather than attempting to control each individual variation. Upper and lower control and tolerance limits are calculated for a process and sampled measures are regularly plotted about a central line between the two sets of limits. The plotted line corresponds to the stability/trend of the process. Action can be taken based on trend rather than on individual variation. This prevents over-correction/compensation for random variation, which would lead to many rejects.
Obstacles to Implementing TQM Lack of a company-wide definition of quality. Lack of a formalized strategic plan for change. Lack of a customer focus. Poor inter-organizational communication. Lack of real employee empowerment. Lack of employee trust in senior management. View of the quality program as a quick fix. Drive for short-term financial results. Politics and turf issues.