Question 2: Elucidate the Need Want-Satisfaction Chain theory.

Answer: The Need Want-Satisfaction Chain theory: Human motives are based on needs, weather consciously or subconsciously felt. Some are primary needs, such as the physiological requirements for water, air, food, sleep, and shelter. Other needs may be regarded as secondary, such as self, esteem, status, affiliation with others, affection, giving, accomplishment, and self assertion. Naturally, these needs vary in intensity and over time among different individual. Motivation is a general term applying to the entire class of drivers,, desires, needs, wishes, and similar forces, To say that managers motivate their subordinates is to say that they do those things which they hope will satisfy these drivers and desires and induce the subordinates to act in a desired manner. Managers are responsible for providing an environment conductive to performance. But individuals themselves are responsible for self-motivation. One approach is through strategic career management. George Odiorne, a management professor, scholar, and experienced consultant, made specific recommendations. Here are some: 1. Set a goal for yourself, and do not lose sight of it. Lee Iacocca (the president of Crysler) set the goal of becoming vice president at the Ford Motor Company by age 35, and for 15 years this aim motivated him and guided his behavior. 2. Supplement your long-term objectives with short term goals and specific action. It has been said that to get something done is to being. 3. Learn a challenging new task each year. Learning to becoming a manager does not stop with a bachelors or masters degree in business. A degrees the real beginning, not the end, of learning. Learning and applying the new micro-computer technology might be such a challenging task. 4. Make your job a different one. Set improvement objectives for your position. With some imagination, you probably can considerably increase your productivity.

5. Development an area of expertise. Build on your strengths, or develop one of your weaknesses into strength. You might want to be known known as the best accountant or the best engineer in your specific area of competence 6. Give yourself feedback and reward yourself. Setting verifiable goals provides you with a standard against which you can measure your performance. Its possible, then to look at motivation as involving a chain reaction. Felt needs give rise to want or goals sought, which causes tensions (thats unfulfilled desires), which give rise to actions toward achieving goals, which finally results in satisfaction. The chain is shown following figure:

Figure: Need Want-Satisfaction Chain theory

The chain explanations complex. In the first place, except for physiological needs, such as food, needs are not independent of a persons environment. Many physiological needs, however, are stimulated by environmental factors. The smell of food may cause hunger, a lower thermometer reading may cause chills, or the sight of a cold drink may cause an overwhelming thirst. Environment has a major influence on our perception of secondary needs. The promotion of a colleague may kindle ones for a higher position. A challenging problem may whet ones desire to accomplish something by solving it. A congenial social group may increase ones need for affiliation; and , of course, being alone more than one wants to be give a strong motivation for wanting to be with people.

In the second place, the need-want-satisfaction chain does not always operate as simply as portrayed. Need do cause behavior, but needs also may result from behavior. Satisfying one need may leads to a desire to satisfy more needs. For example, a persons need for accomplishment may be made keener by the satisfaction gained from achieving a desire d goals, or it may be dulled by failure. The one-way nature of the chain has also been challenged by the work of some biological scientists who have found that needs are not always the cause of human behavior but may be result of it. In other words, behavior is often what people do and not why they do it. From a management point of view, then a person might have high job satisfaction but a low level of motivation for the job, or the reveres might be true. Understandably, the probability exists that highly motivated person with low job satisfaction will look for other positions. Likewise people who find their positions rewarding but are being paid concededly less than they desire or think they deservedly probably search for other jobs. Satisfaction refers to the contentment experienced when a want is satisfied. In order words, motivation implies a drive towards an outcome and satisfaction is the outcome already experienced.

Question 3: Define and explain Theory X and Theory Y. Answer: Douglas McGregor (1906 - 1964) is one of the forefathers of management theory and one of the top business thinkers of all time. He was a social psychologist who became the President of Antioch College. He later became a professor of management at Massachusetts Institute of Technology (he was succeeded by Warren Bennis). His book The Human Side of Enterprise (1960) had a profound influence on the management field, largely due to his Theory X and Theory Y. McGregor developed a philosophical view of humankind with his Theory X and Theory Y in 1960. His work is based upon Maslow's Hierarchy of Needs, in that he grouped the hierarchy into lower-order needs (Theory X) and higher-order needs (Theory Y). He suggested that management could use either set of needs to motivate employees, but better results would be gained by the use of Theory Y, rather than Theory X. These two opposing perceptions theorized how people view human behavior at work and organizational life.

Theory X
In this theory, which has been proven counter-effective in most modern practice, management assumes employees are inherently lazy and will avoid work if they can and that they inherently dislike work. As a result of this, management believes that workers need to be closely supervised and comprehensive systems of controls developed. A hierarchical structure is needed with narrow span of control at each and every level. According to this theory, employees will show little ambition without an enticing incentive program and will avoid responsibility whenever they can. According to Michael J. Papa, if the organizational goals are to be met, theory X managers rely heavily on threat and coercion to gain their employees' compliance. Beliefs of this theory lead to mistrust, highly restrictive supervision, and a punitive atmosphere. The Theory X manager tends to believe that everything must end in blaming someone. He or she thinks all prospective employees are only out for themselves. Usually these managers feel the sole purpose of the employee's interest in the job is money. They will blame the person

first in most situations, without questioning whether it may be the system, policy, or lack of training that deserves the blame. A Theory X manager believes that his or her employees do not really want to work, that they would rather avoid responsibility and that it is the manager's job to structure the work and energize the employee. One major flaw of this management style is it is much more likely to cause diseconomies of scale in large businesses.

With Theory X assumptions, management's role is to coerce and control employees. People have an inherent dislike for work and will avoid it whenever possible. People must be coerced, controlled, directed, or threatened with punishment in order to get them to achieve the organizational objectives. People prefer to be directed, do not want responsibility, and have little or no ambition. People seek security above all else.

Theory Y
In this theory, management assumes employees may be ambitious and self-motivated and exercise self-control. It is believed that employees enjoy their mental and physical work duties. According to them work is as natural as play. They possess the ability for creative problem solving, but their talents are underused in most organizations. Given the proper conditions, theory Y managers believe that employees will learn to seek out and accept responsibility and to exercise self-control and self-direction in accomplishing objectives to which they are committed. A Theory Y manager believes that, given the right conditions, most people will want to do well at work. They believe that the satisfaction of doing a good job is a strong motivation. Many people interpret Theory Y as a positive set of beliefs about workers. A close reading of The Human Side of Enterprise reveals that McGregor simply argues for managers to be open to a more positive view of workers and the possibilities that this creates. He thinks that Theory Y managers are more likely than

Theory X managers to develop the climate of trust with employees that are required for human resource development. It's human resource development that is a crucial aspect of any organization. This would include managers communicating openly with subordinates, minimizing the difference between superior-subordinate relationships, creating a comfortable environment in which subordinates can develop and use their abilities. This climate would include the sharing of decision making so that subordinates have say in decisions that influence them.

With Theory Y assumptions, management's role is to develop the potential in employees and help them to release that potential towards common goals. Work is as natural as play and rest. People will exercise self-direction if they are committed to the objectives (they are not lazy). Commitment to objectives is a function of the rewards associated with their achievement. People learn to accept and seek responsibility. Creativity, ingenuity, and imagination are widely distributed among the population. People are capable of using these abilities to solve an organizational problem. People have potential.

Question 3: Maslows need hierarchy theory. Answer: Maslow's hierarchy of needs is a theory in psychology, proposed by Abraham Maslow in his 1943 paper A Theory of Human Motivation. Maslow subsequently extended the idea to include his observations of humans' innate curiosity. His theories parallel many other theories of human developmental psychology, all of which focus on describing the stages of growth in humans. Maslow use the terms Physiological, Safety, Belongingness and Love, Esteem, and Self-Actualization needs to describe the pattern that human motivations generally move through.

Figure: Maslow's hierarchy of needs

Maslow studied what he called exemplary people such as Albert Einstein, Jane Addams, Eleanor Roosevelt, and Frederick Douglass rather than mentally ill or neurotic people, writing that "the study of crippled, stunted, immature, and 7

unhealthy specimens can yield only a cripple psychology and a cripple philosophy." Maslow studied the healthiest 1% of the college student population. Maslow's theory was fully expressed in his 1954 book Motivation and Personality. Note that Maslow never personally used a pyramid to describe these levels in any of his writings on the subject. Hierarchy Maslow's hierarchy of needs is often portrayed in the shape of a pyramid, with the largest and most fundamental levels of needs at the bottom, and the need for self-actualization at the top. The most fundamental and basic four layers of the pyramid contain what Maslow called "deficiency needs" or "d-needs": esteem, friendship and love, security, and physical needs. With the exception of the most fundamental (physiological) needs, if these "deficiency needs" are not met, the body gives no physical indication but the individual feels anxious and tense. Maslow's theory suggests that the most basic level of needs must be met before the individual will strongly desire (or focus motivation upon) the secondary or higher level needs. Maslow also coined the term Metamotivation to describe the motivation of people who go beyond the scope of the basic needs and strive for constant betterment. Metamotivated people are driven by B-needs (Being Needs), instead of deficiency needs (D-Needs). The human mind and brain are complex and have parallel processes running at the same time, so many different motivations from different levels of Maslow's pyramid usually occur at the same time. Maslow was clear about speaking of these levels and their satisfaction in terms such as "relative" and "general" and "primarily", and says that the human organism is "dominated" by a certain need, rather than saying that the individual is "only" focused on a certain need at any given time. So Maslow acknowledges that many different levels of motivation are likely to be going on in a human all at once. His focus in discussing the hierarchy was to identify the basic types of motivations, and the order that they generally progress as lower needs are reasonably well met. Physiological needs

For the most part, physiological needs are obvious they are the literal requirements for human survival. If these requirements are not met, the human body simply cannot continue to function. Air, water, and food are metabolic requirements for survival in all animals, including humans. Clothing and shelter provide necessary protection from the elements. The intensity of the human sexual instinct is shaped more by sexual competition than maintaining a birth rate adequate to survival of the species. Safety needs With their physical needs relatively satisfied, the individual's safety needs take precedence and dominate behavior. In the absence of physical safety due to war, natural disaster, or, in cases of family violence, childhood abuse, etc. people (re-)experience post-traumatic stress disorder and trans-generational trauma transfer. In the absence of economic safety due to economic crisis and lack of work opportunities these safety needs manifest themselves in such things as a preference for job security, grievance procedures for protecting the individual from unilateral authority, savings accounts, insurance policies, reasonable disability accommodations, and the like. Safety and Security needs include: Personal security Financial security Health and well-being Safety net against accidents/illness and their adverse impacts

Love and belonging After physiological and safety needs are fulfilled, the third layer of human needs are interpersonal and involve feelings of belongingness. The need is especially strong in childhood and can over-ride the need for safety as witnessed in children who cling to abusive parents. Deficiencies with respect to this aspect of Maslow's hierarchy due

to hospitalism, neglect, shunning, ostracism etc. can impact individual's ability to form and maintain emotionally significant relationships in general, such as:

Friendship Intimacy Family

Humans need to feel a sense of belonging and acceptance, whether it comes from a large social group, such as clubs, office culture, religious groups, professional organizations, sports teams, gangs, or small social connections (family members, intimate partners, mentors, close colleagues, confidants). They need to love and be loved (sexually and nonsexually) by others. In the absence of these elements, many people become susceptible to loneliness, social anxiety, and clinical depression. This need for belonging can often overcome the physiological and security needs, depending on the strength of the peer pressure; an anorexic, for example, may ignore the need to eat and the security of health for a feeling of control and belonging. Esteem All humans have a need to be respected and to have self-esteem and self-respect. Esteem presents the normal human desire to be accepted and valued by others. People need to engage themselves to gain recognition and have an activity or activities that give the person a sense of contribution, to feel self-valued, be it in a profession or hobby. Imbalances at this level can result in low self-esteem or an inferiority complex. People with low self-esteem need respect from others. They may seek fame or glory, which again depends on others. Note, however, that many people with low self-esteem will not be able to improve their view of themselves simply by receiving fame, respect, and glory externally, but must first accept themselves internally. Psychological imbalances such as depression can also prevent one from obtaining self-esteem on both levels. Most people have a need for a stable self-respect and self-esteem. Maslow noted two versions of esteem needs, a lower one and a higher one. The lower one is the need for the respect of others, the need for status, recognition, fame, prestige, and attention. The

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higher one is the need for self-respect, the need for strength, competence, mastery, selfconfidence, independence and freedom. The latter one ranks higher because it rests more on inner competence won through experience. Deprivation of these needs can lead to an inferiority complex, weakness and helplessness. Maslow also states that even though these are examples of how the quest for knowledge is separate from basic needs he warns that these two hierarchies are interrelated rather than sharply separated (Maslow 97). This means that this level of need, as well as the next and highest level, are not strict, separate levels but closely related to others, and this is possibly the reason that these two levels of need are left out of most textbooks. Self-actualization What a man can be, he must be. This forms the basis of the perceived need for selfactualization. This level of need pertains to what a person's full potential is and realizing that potential. Maslow describes this desire as the desire to become more and more what one is, to become everything that one is capable of becoming. This is a broad definition of the need for self-actualization, but when applied to individuals the need is specific. For example one individual may have the strong desire to become an ideal parent, in another it may be expressed athletically, and in another it may be expressed in painting, pictures, or inventions. As mentioned before, in order to reach a clear understanding of this level of need one must first not only achieve the previous needs, physiological, safety, love, and esteem, but master these needs. Research Recent research appears to validate the existence of universal human needs, although the hierarchy proposed by Maslow is called into question. Other research indicates that Maslow's explanations of the hierarchy of human motivation reflects a binary pattern of growth as seen in math. The individual's awareness of first, second, and third person perspectives, and of each one's input needs and output needs, moves through a general pattern that is basically the same as Maslow's described pattern. Criticisms

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In their extensive review of research based on Maslow's theory, Wahba and Brudwell found little evidence for the ranking of needs Maslow described, or even for the existence of a definite hierarchy at all. Chilean economist and philosopher Manfred Max-Neef has also argued fundamental human needs are non-hierarchical, and are ontologically universal and invariant in naturepart of the condition of being human; poverty, he argues, may result from any one of these needs being frustrated, denied or unfulfilled. The order in which the hierarchy is arranged (with self-actualization as the highest order need) has been criticised as being ethnocentric by Geert Hofstede. Hofstede's criticism of Maslow's pyramid as ethnocentric may stem from the fact that Maslows hierarchy of needs neglects to illustrate and expand upon the difference between the social and intellectual needs of those raised in individualistic societies and those raised in collectivist societies. Maslow created his hierarchy of needs from an individualistic perspective, being that he was from the United States, a highly individualistic nation. The needs and drives of those in individualistic societies tend to be more self-centered than those in collectivist societies, focusing on improvement of the self, with self actualization being the apex of self improvement. Since the hierarchy was written from the perspective of an individualist, the order of needs in the hierarchy with self actualization at the top is not representative of the needs of those in collectivist cultures. In collectivist societies, the needs of acceptance and community will outweigh the needs for freedom and individuality. Some of these criticisms may be really about Maslow's choice of terminology, especially with the term "self-actualization". "Self-actualization" might not effectively convey his observations that this higher level of motivation is really about focusing on becoming the best person one can possibly become, in the service of both the self and others: "A musician must make music, an artist must paint, a poet must write, if he is to be ultimately at peace with himself. What a man can be, he must be. He must be true to his own nature. This need we may call self-actualization." At these higher levels of motivation, what we do generally benefits everyone, but Maslow's term might not be as good at clarifying that as it could have been.

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Maslow's hierarchy has also been criticized as being individualistic because of the position and value of sex on the pyramid. Maslows pyramid puts sex on the bottom rung of physiological needs, along with breathing and food. It views sex from an individualistic and not collectivist perspective: i.e., as an individualistic physiological need that must be satisfied before one moves on to higher pursuits. This view of sex neglects the emotional, familial and evolutionary implications of sex within the community. Implication of Maslows Hierarchy in Business Courses in marketing teach Maslow's hierarchy as one of the first theories as a basis for understanding consumers' motives for action. Marketers have historically looked towards consumers' needs to define their actions in the market. If producers design products meeting consumer needs, consumers will more often choose those products over those of competitors. Whichever product better fills the void created by the need will be chosen more frequently, thus increasing sales. This makes the model relevant to transpersonal business studies. International business Understanding the strengths and weakness of Maslows hierarchy of needs is important in the field of international business. Evaluating the different needs, values, drives and priorities of people from different countries individualistic or collectivist is incredibly valuable in cross-cultural communications, and especially within the workplace. It also illustrates how differences in values can greatly affect work atmosphere and work ethic between cultures: For example, societal cultures in many individualistic countries, such as the United States, may lead to an advantage in technological research and development. Many collectivistic societal cultures, such as that in Japan, may result in an advantage in workforce organization, quality control of products and service, and establishment of good relationships among contractees, suppliers and customers.

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Question no. 5: State the fundamental concept of stuffing as a managerial function. As a manager how could you select people within and from outside of the organization (selection process). Answer: The word stuff refers to the people working in the organization. And stuffing refers to the filling gaps or positions in the organizational structure. That includes selection of people for the particular position, training to the individual for meeting the requirement of that position, promotion of the individual to achieve the individual objective as well as the organizational achievement. Staffing also includes the transfer of the employees from one place to another place for the betterment of the organization. Staffing is the managerial function to select and recruit the individuals to fill and keeping filled the position in the organizational hierarchy. So, management dealing with the human resources is the managerial activities is staffing. So, staffing is the selection for the organization only to fill the gap. The gap is the basic requirement of the organization. Gap is the deficiency in the skills of human in the organization. Skill is the ability to perform the task effectively and efficiently to increase the productivity that a farm requires. So, the necessity of skilled people is the gap of the organizational position. The function of management is to fill such kind of gaps in the organizational hierarchy. The scope of staffing: Staffing refers to the managerial function of employing and developing human resources for carrying out the various managerial and non-managerial activities in an organization. This involves determining the manpower requirement, and the methods of recruiting, selecting, training and developing the people for various positions created in the organization. This, in fact happens to be a continuous process because the organizations need to retain and update its personnel is a never ending exercise. The managers have to keep a regular watch on the number and composition of the personnel needed by the organization, because, and additions of new departments and work units. Not only that, at 14

any point of time, some people will be leaving, retiring, getting promotion or transferred. The vacancies thus created the requirement of manpower keeps on changing and expanding with the expansion of activities has to be filled up. It may be noted that staffing function is an integral part of human resource management and, in its wider sense, also includes the activities of determining the remuneration of workers, appraising their performance, and deciding on their promotion, transfers, etc. Importance of staffing: All of us know that it is the people in every organization who run the show successfully. For example, if you do not have good salesman you cannot sell well even if your product is good. Similarly, you may have the best quality raw materials, machines etc. but the quality of the product is not assured unless you have good workers engaged in the production process. Staffing thus, as a function, is very important as it is through this process that we get right persons for the organization and ensure that they stick to the organization. The benefits of good staffing are as follows. (a) It helps in getting right people for the right job at the right time. The function of staffing enables the manager to find out as to how many workers are required and with what qualifications and experience. (b) Staffing contributes to improved organizational productivity. Through proper selection the organization gets quality workers, and through proper training the performances level of the workers can be improved. (c) It helps in providing job satisfaction to the employees keeping their morale high. With proper training and development programs their efficiency improves and they feel assured of their career advancements. (d) Staffing maintains harmony in the organization. Through proper staffing, individuals are not just recruited and selected but their performance is regularly appraised and promotions made on merit. For all these, certain rules are made and are duly communicated to all concerned. This fosters harmony and peace in the organization.

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If a manager wants to select people from and outside the organization he have to maintain the staffing process that we are going to discuss in the following as well as we can see the system approach of stuffing in the following figure-

PROCESS OF STAFFING The process of staffing starts with ascertaining the required number of various categories of employees for the organization. This is known as manpower planning. It decides the kinds of staff and the number of staff required for the organization. This is done through several methods like job analysis, workload analysis, etc. The next thing to be done in the staffing process is the recruitment exercise, i.e., finding out the available manpower from internal and external sources. The next step is to select the right person from the available manpower through tests and interviews and make appointments. This is followed by their placement on the jobs and necessary introduction of the work environment and the rules of compensation, promotion, transfer etc. Thus, the various steps involved in the process of staffing are as follows. (a) Identification of workforce requirement (b) Inventorying the people for the organization (c) Recruitment (d) Selection (e) Placement (f) Induction

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(g) Training and Development (h) Performance Appraisal (i) Compensation (J) Promotion and Transfer Let us now discuss these aspects briefly to gain more clarity.

(a) Identification of workforce requirement:

Identification of workforce requirement refers to the process of estimating the manpower requirement of an organization. While estimating the manpower requirement, the management generally keeps in mind the available infrastructure including the technology, production schedule, market fluctuation, demand forecasts, governments policies and so on. It tentatively decides the kinds of staff as well as the number of staff needed for the organization. The focus of the manpower planning is to get right number of qualified people at the right time.

(b) Inventorying the people for the organization:

In the context of recruitment, one must be conversant with another important aspect of manpower planning, and inventorying the people for the organization, which is a prerequisite for any recruitment exercise. The job analysis helps in determining the qualifications, skills and experience required for various categories of employees. It involves: (i) Identification of each job in terms of duties and responsibilities, (called job description) and (ii) Determining the abilities and skills that are required for performing the job (called job specification). These two aspects of inventorying the people for the organization and job analysis (job description and job specification) are useful in recruitment and selection of employees so as to find the right person for the job.

(c) Recruitment:
After planning and organizing you are aware of the various job positions that are required to be filled up. Let us say, you have assessed your requirement for a general manager, a 17

chef, an accountant, and many other staff for home delivery of foods. Possibly, you have a list of persons interested to join your restaurant. For example, your uncle has promised you to provide an experienced general manager. The manager of the bank from where you have taken loan has referred an accountant to you. One of the chief cooks of a reputed hotel has already approached/talked to you to join your restaurant as a chef. In addition to all these, you know that there is an office that can provide you people of your requirement by charging a fee, whenever you ask for it. You also know that an advertisement in the newspaper can help you in getting applications from many people. While engaging yourself into all these activities you are basically trying to make a pool of suitable/interested applicants for the job. In other words you are recruiting the staff for your business. The term recruitment is often used to signify employment. It is true that normally when we say we have recruited such and such persons, it signifies that we have employed them. But as a part of staffing function, the term recruitment has limited scope. It just refers to one of the initial steps in employment of people i.e., searching for suitable candidates for the various job positions to be filled up from time to time in the organization. Thus, recruitment is the process of finding and attracting suitable applicants for employment. Sources of requirement: Having determined the qualification and experience required for various jobs involved, one has to search for the suitable persons and receive their application. For this purpose one has to have an idea as to where such persons are available. In other words, one must be aware of the sources of recruitment before publicizing the specific staffing needs and induce the suitable persons to apply for the job positions involved. These sources can be internal and external. (i) Internal Sources: In any business, existing employees expect that they will have chances of promotion and will be considered for higher positions before outsiders are considered. Managers therefore may promote and transfer some of the existing employees to fill the vacant positions. The advantage of internal recruitment is that it is easier for managers to fill vacancies as they are conversant with the abilities and skills of their subordinates and have records of their performances. Employees also feel happy as their work performance is recognized by management through promotion. However,

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there is one major drawback of recruitment through internal sources i.e., the organization is deprived of the benefit of inducting fresh blood into its system. (ii) External Sources: All vacancies cannot be filled up from within the organization. Existing employees may lack the required skill, initiative and qualification needed for the jobs involved. Hence managers have to recruit some persons from outside the organization. Not only that the external recruitment provides a wide choice from among a large number of external candidates from which employees may be recruited. The workers and office employees at the lower level are often recruited from outside the organization. The various external sources of recruitment are as follows: Media Advertisements: You must have seen advertisements in newspapers about vacancies in organizations. The advertisement contains details about the job, its nature, the qualification required to do the job, how to apply, etc. This is a very popular medium of advertising. The job advertisements are also given in magazines, specialized employment magazines like Employment News, Rozgar Samachar, etc. Now-a-days we also commonly find such advertisements in various electronic media like television and Internet. Such advertisements normally get a very good response from the prospective candidates. Employment Exchanges: In India, employment exchanges have been set up by the government for bringing together job-seekers and employers who are looking for employees. Those who are in search of employment get themselves registered with the local Employment Exchanges which keep a record of all such persons in detail who require help in finding jobs. The employer informs about the vacancies to the nearest Employment Exchange. The Employment Exchange, in turn, identifies the names of the qualified employment seekers already registered with it, and forwards them to the employer for consideration. Thus, if you are seeking a job after passing the senior secondary examination, it would be better if you get yourself registered with an Employment Exchange. It may forward your name to the prospective employers keeping in view the suitability of the job as per your qualifications. Educational Institutions: Now-a-days, companies/big organizations maintain a close liaison with the universities, vocational institutes and management institute

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for recruitment of their staff. As and when the need arises, the companies send one or more of their senior executives to the institutions of repute imparting such professional/technical education to students. These executives take the interview of the interested candidates and select the suitable candidates as per their requirement. This process is popularly known as campus interview and is found to be an effective source of recruitment of managers, engineers, technicians etc. for many companies on a regular basis. Unsolicited Application: Those looking for jobs often apply on their own initiative. They assume that certain vacancies are likely to arise, and apply without references to any job advertisement. Managers keep a record of such applications and contact the suitable candidates when they need them. Recruitment at the Factory gate: This is found mainly in case of factory workers to be recruited on daily wages. Such workers gather in the morning at the factory gate to serve as casual workers. Very often existing regular employees go on leave, and their vacancies are filled up by recruitment at the factory gate. These casual workers having served in the factory for some time may be considered for regular employment at some stage. Referrals: Quite often the management gets references about interested workers from different sources like workers unions, previous employees, existing employees, clients of the organization etc. These sources are important because their recommendations are made by people who are associated with the organization and are fully conversant with its requirements. Sometimes we also receive recommendations from our friends and relatives to employ persons known to them. But one should be very much cautious while considering such recommendations. Private Employment Agencies: In urban areas, a number of private organizations have started functioning as employment agencies. These agencies register with them the names of the individuals who are seeking employment and try to arrange job interviews for such candidates. Companies often get in touch with such agencies to provide them the details of suitable candidates for various jobs. 20

(d) Selection:
When an adequate number of applications/names of interested candidates have been collected through the recruitment exercises the selection process starts. Selection refers to the process of choosing the most suitable person from among the list of interested candidates. It involves going through the qualification and experience of all candidates and matching them with the expectation for the job so as to decide on the most suitable ones for the job. The entire process goes through a number of steps which may be called as selection procedure. Selection Process: As stated above, the selection procedure consists of a number of steps in logical order to identify the candidates who are to be finally appointed. These steps are : Screening the applications Holding tests Selection interview Checking references Medical examination of the candidates Issue of appointment letter

Let us discuss all the steps in brief. Screening the Applications: After receiving the applications from the candidates through recruitment process, the same must be examined to decide which ones deserve to be considered and followed up. Normally, the candidates are asked to apply in their own handwriting on a plain paper. Sometimes the job advertisement mentions the particulars to be given in the application. In many cases the candidates are required to apply in the prescribed form of the company, containing particulars of name, address, nationality, religion, mother tongue, date and place of birth, marital status, education and training, employment history, references etc. Screening exercise involves checking the contents of the applications so as the ascertain whether or not the minimum eligibility conditions in respect of age, experience, qualifications and skills are fulfilled by the candidates who have applied for the job. Screening is usually done by a senior officer of the company or by a screening committee. The

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purpose of screening is to prepare a list of eligible candidates who are to be evaluated further. Candidates not eligible are thereby excluded from further consideration. Holding Tests: After screening the applications, eligible candidates are asked to appear for selection tests. These tests are made to discover and measure the skill and abilities of the candidates in terms of the requirements of the job. For instance, if the job of a typist requires a minimum typing speed of 40 words per minute, a test is given to see whether the candidates applying for the job have the required typing speed. Passing the test by a candidate does not mean that he will be employed. It implies that all those who have passed the test are qualified for further processing and those who have failed are not to be considered. The nature of test depends upon the nature of the job involved. For clerical jobs, for examples, an intelligence and aptitude test may be arranged which may include test of general knowledge, test on quantitative problem, and test of reasoning power and vocabulary. For industrial workers and technical hands performance tests may be organized. For example, to judge the speed and accuracy of typing, candidates may be given a standard paragraph to type. Similarly, candidates for an auto mechanic job may be asked to replace a piston. This is known as Skill or Trade test. For supervisory and managerial jobs, tests are given to find out the candidates personality, decision making abilities, etc. Selection Interview: Interview is the most important part of the selection procedure. It serves as a means of checking the information given in the application form and making an overall assessment of the candidates suitability for the job. In an interview, the candidate has a face-to-face interaction with the employer or representatives of the employer, where they try to judge the ability of the candidate. They also get an opportunity to go into the details of the candidates background which helps a lot in assessing the candidates suitability. Checking of References: In addition to the requisite educational qualification, skill and experience, it is expected that the candidates who are to be considered for employment must have other qualities like balanced temperament, honesty, loyalty, etc. These qualities cannot be judged on the basis of any test. Therefore, information is obtained and verified from the heads of educational institutions where the

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candidates have studied, or from the persons whose names are given by the candidates as referee, or from their previous employers. For certain jobs, like the job of a cashier or a security guard, reliability is a very important job requirement. Therefore, references are required to be contacted to ensure that persons can be relied upon. In case of experienced employees their previous employerscan also be contacted for this purpose. Medical Examination: Candidates finally selected for the job are asked to undergo medical examination to see whether the selected candidates are physically fit for the job. A proper medical examination ensures higher standard of health of the employees and their physical fitness which, in turn, reduces the labor turnover, absenteeism and accidents. The medical examination would also reveal whether he/she suffers from any illness which can be cured e.g., poor eyesight etc. Medical test is essential for certain types of jobs as in the case of police and army, where physical fitness is very important. For certain categories of jobs like the job of driver, proper eyesight is very much essential. Issue of Appointment Letter: Candidates finally selected are offered to join the organization for which a formal appointment letter is issued containing the nature of job, the remuneration, pay scale, and other terms and conditions relating to employment. Usually a reasonable time is given to the candidates to join the organization. Probation period: In most of the organizations the candidates are not initially appointed on permanent basis because it is considered better to try them for a few months on the job itself. This period of service is known as the period of probation. It is necessary because no procedure of selection can fully establish the qualities of a selected candidate. It is only by observing a person at work that one can find out how he performs and also how he behaves with his superior and fellow employees. If during the probation period, his performances not found satisfactory, his period of probation may be extended. The management may also transfer him to some other job at which he may be expected to do better. Though a number of steps in the selection procedure have been listed, all the steps need not be followed in all cases. For example, for employing casual workers on daily wages,

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simply an interview by a companys officer is sufficient. For the job of a typist or clerk, screening of applications, holding tests and interview will be essential. Similarly, for the job of a cashier, checking of references may also be needed. Difference between Selection and Recruitment We have noted recruitment and selection are the two essential components of the staffing process. While the recruitment helps in attracting suitable candidates, selection helps in finding out the candidates who meet the requirements of the job. These are closely interconnected activities. However, recruitment and selection differ in certain respects. While the recruitment refers to the process of attracting good applicants for jobs, selection identifies the most suitable amongst the applicants. In the recruitment process, the effort is to attract the candidates as many as possible and it is regarded as a positive process. But, selection is a negative process as it involves rejection of many candidates. Recruitment involves decisions as regard to the sources of potential candidates. Selection is made through different steps in the procedure adopted. Recruitment helps the manager to attract good candidates, the selection leads to making the right choice.

(e) Placement:
If the selected candidate decides to join the organization, he/she has to report to the concerned authority and formally joins the organization by giving his consent in writing. Then he/she is placed to perform specific job. Thus, placement refers to selected candidates joining the positions in the organization for which they have been selected. The appointment of every candidate is followed by a record of particulars of employment. Such records is properly maintained and described as employment record. It serves a useful purpose on many occasions like selection of employees for training, promotion, increments etc.

(f) Induction:
Induction is the process of introducing new employees to the organization. The new employees should know under whom and with whom he/she is to work, get acquainted and adjusted to the work environment, get a general idea about the rules and regulations, 24

working conditions etc. Usually the immediate supervisor of the new employee introduces him to his work environment. A proper induction program is likely to reduce his anxiety on how to cope with the work and how to become part of the organization and helps in development of a favorable attitude towards the organization and the job.

(g) Training and Development:

Helping the employees to improve their knowledge and skill so as to be able to perform their tasks more efficiently is known as training. It is an organised activity for increasing the knowledge and skills of people for a specific purpose. The term development refers to the process of not only building up the skill and abilities for specific purpose but also the overall competence of employees to undertake more difficult and challenging tasks. It is generally used with reference to the training of managers and executives. Training is necessary for new employees as well as the existing employees for improving their performance at work. For new employees, training is necessary to help them get acquainted with the method of operation and skill requirement of the job. For existing employees, training at periodical intervals is helpful for learning better ways of doing the work, and also as and when they have to undertake new jobs. Thus, training helps employees to improve their knowledge and skill and make them perform their tasks more efficiently. It also helps them in promotion and improves their attitudes and confidence levels. Methods of training: There are different methods of giving training to the employees which can be divided into two broad categories. (1) On-the-Job methods, and (2) Off-the-Job methods. 1. On-the-Job methods: In these methods, the employees learn about their jobs while doing the work duly assisted by their supervisors or seniors. These methods encourage self-learning through practice. Job instruction or coaching, and job rotation, learning while working as an assistant to a senior, understudy positions, temporary promotions are some of the common methods of on-the-job training. 2. Off-the-Job methods: These methods involve training employees away from the work place so that experts may conduct the training and employees are free

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from immediate pressure of completing the jobs at hand. Lectures with demonstration, conferences, case discussions, video shows and films are some of the common methods used as off-the-job training methods. Then, there is another off the job method of training called vestibule training. The vestibule training refers to the training in specially designed workshops in which an attempt is made to duplicate as closely as possible the actual condition of the work place. In such workshops a large number of employees can be trained in a relatively short period of time.

(h) Performance Appraisal:

In simple words, performance appraisal means judging the performance of employees. Specifically, it means judging the relative abilities of employees at work in a systematic manner. This enables managers to identify employees who are performing the assigned work satisfactorily, and those who are not able to do so, and why. To be fair, performance appraisal needs to be carried out using the same methods and keeping in view uniform standards of work. Generally it is the responsibility of supervisors to carry out performance appraisal of their subordinates, and report it to their own superiors. He may also have to identify the causes of the performance especially if it has fallen short of the expected performance. The standard of performance or the expected level of performance of an employee on a job forms the basis of judging how well the employee has performed, and whether one employee is more efficient than the other in doing a similar job. The yardstick placed may be the desired quantity of output, the quality of work done, minimization of wastage of materials caused in the process of work etc. The choice depends upon the type of job involved. However, where quantity or number of units produced or wastage of materials form the basis of appraisal, it is likely to be more accurate. On the other hand, quality of work done may be difficult to measure and hence performance appraisal may not be very accurate.

(i) Compensation:
Compensation is one of the most important factors influencing relations between management and the workers. No organization can attract and retain qualified employees without offering them a fair compensation. The term compensation refers to a wide 26

range of financial and non financial rewards to the employees for services rendered to the organisation. It includes wages, salaries, allowances and other benefits which an employer pays to his employees in consideration for their services. Compensation may be divided into two categories: (a) Base/primary compensation. (b) Supplementary compensation. Base or primary compensation is a fixed amount paid every month to an employee. It includes wages, salary and allowances paid to an employee irrespective of his performance. Supplementary compensation refers to the compensation paid to the employees to motivate them to work more efficiently. It is also known as incentive compensation. The incentives may be monetary or non-monetary. The monetary incentives include bonus, commission sales, or profit sharing plans. The non-monetary incentives, on the other hand, include cordial relations with the supervisor, assignment of challenging jobs, recognition etc. Such incentives help the employees to sustain interest in the job and motivate them to work hard. They also provide job satisfaction.

(J) Promotion and Transfer:

When an employee is assigned a job involving greater responsibilities, more pay, higher status and prestige than his/her present job, it is known as promotion. Thus, promotion refers to the advancement of an employee to a higher level or position. The main purpose of promotion is to make fuller use of the abilities of a person and also increase his job satisfaction. The basis of promotion may be seniority in service or merit, that is, superior abilities of the employees, or it may be seniority and merit, that is, merits being the same, one who is senior, is considered for promotion. When the performance of an employee is not satisfactory and it cannot be improved, he may be assigned a job of lower rank carrying lower status and pay. This is known as demotion. Transfer refers to a type of job change where any employee is assigned a different job of the same rank and pay, or when an employee is assigned a similar job in another unit of the firm. Thus, transfer does not usually involve any increase in pay or a superior status. It may be done simply to enable the employee to gain wider experience, or to give him greater job satisfaction, or to balance the requirements of staff in different units.

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So these are the fundamental aspects of staffing process which are discussed thoroughly.

Q.6. Give an overview of the fundamental task of the manager to control the organization. State the system of input for cash feed forward and control. Answer: A managers primary challenge is to solve problems creatively. While drawing

from a variety of academic disciplines, and to help managers respond to the challenge of creative problem solving, principles of management have long been categorized into the four major functions of planning, organizing, leading, and controlling (the P-O-L-C framework). A control system is necessary in any organization in which the activities of different divisions, departments, sections, and so on need to be coordinated and controlled. Most control systems are past-action-oriented and consequently are inefficient or fail. For example, there is little an employee can do today to correct the results of actions completed two weeks ago. Steering controls, on the other hand, are future-oriented and allow adjustments to be made to get back on course before the control period ends. They therefore establish a more motivating climate for the employee.What's more, although many standards or controls are simply estimates of what should occur if certain assumptions are correct, they take on a precision in today's control systems that leaves little or no margin for error. Managers would be better off establishing a range rather than a precise number and changing standards as time passes and assumptions prove erroneous. This would be fairer and would positively motivate employees. There are three fundamental beliefs underlying most successful control systems. First, planning and control are the two most closely interrelated management functions. Second, the human side of the control process needs to be stressed as much as, if not more than, the tasks or 'numbers crunching' side.

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Finally, evaluating, coaching, and rewarding are more effective in the long term than measuring, comparing, and pressuring or penalizing

Controlling involves ensuring that performance does not deviate from standards. Controlling consists of three steps, which include (1) establishing performance standards, (2) comparing actual performance against standards, and (3) taking corrective action when necessary. Performance standards are often stated in monetary terms such as revenue, costs, or profits but may also be stated in other terms, such as units produced, number of defective products, or levels of quality or customer service. The measurement of performance can be done in several ways, depending on the performance standards, including financial statements, sales reports, production results, customer satisfaction, and formal performance appraisals. Managers at all levels engage in the managerial function of controlling to some degree. The managerial function of controlling should not be confused with control in the behavioral or manipulative sense. This function does not imply that managers should attempt to control or to manipulate the personalities, values, attitudes, or emotions of their subordinates. Instead, this function of management concerns the managers role in taking necessary actions to ensure that the work-related activities of subordinates are consistent with and contributing toward the accomplishment of organizational and departmental objectives. Effective controlling requires the existence of plans, since planning provides the necessary performance standards or objectives. Controlling also requires a clear understanding of where responsibility for deviations from standards lies. Two traditional control techniques are budget and performance audits. An audit involves an examination and verification of records and supporting documents. A budget audit provides information about where the organization is with respect to what was planned or budgeted for, whereas a performance audit might try to determine whether the figures reported are a reflection of actual performance. Although controlling is often thought of in terms of financial criteria, managers must also control production and operations processes, procedures for delivery of services, compliance with company policies, and many other activities within the organization. The management functions of planning, organizing, leading, and controlling are widely considered to be the best means of describing the managers job, as well as the best way to classify accumulated knowledge about the study of management. Although there have been 29

tremendous changes in the environment faced by managers and the tools used by managers to perform their roles, managers still perform these essential functions. Control serves two ends: support for understanding what is taking place in the enterprise and in the market and support for influence the actions of participants, both inside and outside the enterprise.. Understanding refers to the awareness and appreciation of what has taken place, is taking place, or could take place in the environment. Influence refers to the ability to communicate, command, persuade, or otherwise induce a particular behavior. It is the author's hypothesis that these two, non-orthogonal, measures can be used to examine the purpose and value of a set of controls, and information technology investment. The key questions then are as follows: To what extent do the controls contribute to managerial, or organizational, understanding? To what extent does the control, or system of controls, create the proper level of influence that will lead to the desired behaviors? Now it can be said that the word control has BOTH a noun and verb aspect. The verb (process dimension) relates to checking, testing, or verifying; exercising restraint or directing influence; reducing the incidence or severity of adverse situations [dictionary uses]. The noun sense (authority, ability dimension) relates to a state, condition, authority, ability, or measure of power and influence. This is a tougher dimension to understand. It relates to the possession of the skills needed to use the tools, instruments and technique of control. Feed-forward is a term describing a kind of system which reacts to changes in its environment, usually to maintain some desired state of the system. A system which exhibits feed-forward behavior responds to a measured disturbance in a pre-defined way in contrast with a feedback system. This is a control technique lier part of the control loop so that corrective action can be initiated in advance of the disthat can be measured but not controlled. The disturbance is measured and fed forward to an earturbance having an adverse effect on the system response. Feed Forward control is mechanism within some control systems in which information is sent ahead in time to prepare a part of a control system. The mechanism of feedback has a very simple definition: "the return to the input of a part of the output".

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Figure: Feed-forward

This simplicity should however not undermine the importance of feedback mechanisms and their ubiquitousness in our life, both on macro- and micro-scales. In order to further present the concept of feedback mechanisms I introduce a simplifying division between the systemic view of feedback and the decision making view of feedback. 1. Systemic view

From the point of view of a system (understood as "a regularly interacting or interdependent group of items forming a unified whole" , feedback mechanisms have a very important role to play. Through "feeding back" a part of output again into the system, we obtain a perfect regulatory mechanism. This regulation is based on two basic kinds of feedback, namely: positive and negative feedback. Positive feedback mechanisms We call a feedback mechanism positive if the resulting action goes in the same direction as the condition that triggers it. A good example of positive feedback is a turbo-charger fitted to the engines of vehicles. As we accelerate, increasing revolutions of the engine (after crossing some threshold), set the turbo-charger on, that in fact increases the speed even further. Summarizing, a part of output (acceleration) was "fed back" to the process again, causing action going in the same direction (further acceleration). Negative feedback mechanisms A feedback mechanism is called negative if the resulting action opposes the condition that triggers it. To name an example, one might think of the heating systems we use at

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homes. Very often we set our heaters to maintain constant temperature while we are at home. So the heaters turn on and off as a function of the interior temperature. If the temperature drops below some threshold, the heating system is being switched on, compensating and increasing the temperature again. In other words, a part of output (falling temperature) was "fed back" to the system again, causing action going in the opposite direction (increasing temperature). These two above mentioned mechanisms of positive and negative feedback constitute a basis for system controlling. Furthermore they can be put together in different configurations composing "feedback loops". Feedback loops We may divide feedback loops into negative and positive. If positive and negative feedback mechanisms are alternating in one system, we talk about the negative feedback loop. This kind of feedback loop has stabilizing properties. As an example one might think of some biological (food-chain) mechanisms. Increasing population of storks causes a decrease in the population of frogs, which in turn causes the decreasein the number of storks until the moment that the number of frogs is up again. In this sense, negative feedback loops are (ceteris paribus) auto-regulating.

Figure: Feedback loops

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Positive feedback loops can go into two directions: they can be either "exploding" or "imploding". If only positive feedback mechanisms are governing a system, this kind of positive loop is called "exploding".

Figure: Feedback loops As an example we might mention a positive feedback loop between income and consumption. The bigger the income per capita in an economy, the more people consume, therefore further increasing their income per capita, and so on. Ceteris paribus, this mechanism will continue infinitely. In many industries, success feeds success, i.e. a successful firm makes money (output) which is partly used to improve the same reasons of its success (input factors). Costly innovation, if successful, give rise to profits which allows for further Research and Development, as you can experience with this business game. In consumption, positive feedbacks can be linked to imitation phenomena. External funding (e.g. from banks) is positively linked to own capital commitment, so that loans are given only to healthy firms, boosting them to even higher levels. For the system effects of financial fragility see this paper. Similarly, rich families are usually able to assure to their children a good level of education (e.g. by buying more books, by travelling, by additional education resources), which in turn positively affect the employability and family income. If only negative feedback mechanisms are governing a system, we call this loop "imploding". For a rather exaggerated example, think of a person wholoses appetite when preoccupied. Once she starts to worry, she loses weight, therefore being even more preoccupied seeing her state and losing even more

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weight, and so on. If nothing else stops this vicious circle (e.g. a societal help), imploding positive feedback loop leads to the self-destruction of the system.

Figure: Feedback loops This is the dramatic case of denutrition and low individual productivity (thus, income) in many areas of the Thirld World. From the stance of a system, feedback mechanisms are very important for mutual interaction of the system's elements. However this point of view is in a sense very "endogenous", i.e. treating the parts of the system as being inert and not able to vary their behavior depending on the state of the environment. In order to further analyze the complexity of feedback we have to allow for the decision making feature of the system's parts. 2. Decision Making view

From the decision making stance, feedback is specifically defined as "the transmission of evaluative or corrective information to the original or controlling source about an action, event, or process". From now on, I will focus more in detail on the processes controlled by humans (as opposed to the processes controlled by the artificial intelligence, i.e. computers). Human decision making is largely based on the concept of feedback. To mention an example on the individual dimension, managers try to estimate the correctness of their past actions by observing the output of these decisions or managerial indicators (like Balanced Score Cards) and introduce necessary corrections. On the group

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decision making dimension, democratic government is also an example of a controlling body trying to incorporate information from the past into the process of decision-making in the future. Having said that, we have to notice the qualitative change in the weight of the positive and negative feedback. From now on, feedback is not only a piece of information "fed back" to the system again. Critical consequences of feedback must be now included into the system: its role in motivation, consistency and learning. The most important consequence of feedback information is its influence on the motivationand consistency of decision makers. It is generally agreed that a decision maker receiving positive feedback tends to be motivated and to continue with the previously chosen course of action only slightly modifying it. If provided with the negative feedback she has a tendency to feel demotivated and search for other alternatives of solving the problem. For instance, the consumer's behaviour could be interpreted as a trial-and-error process: to buy a good - say because of a hint of possible use - to try it, to judge the experience and to renew the purchase in case it is pleasant or search for new brands in the opposite case. Brand loyalty is often explained in these terms. It should be however noted that this simplified and generally accepted view of interactions between feedback, motivation and consistency in decision making has been lately seriously challenged on the academic grounds. Explore by your own this issue by playing this business game. The second, equally important, consequence of feedback is its relation with learning. Generally experts (but also simple examples from everyone's life) indicate that no learning would occur if some kind of feedback was not available. One can easily imagine that a driving lesson with driver's eyes closed and ears plugged would almost certainly result in an accident. In our life, feedback seems to be an inseparable part of learning. However, recently some researchers stated that people may learn rules without any feedback whatsoever; they only need more time to do so. 3. Further dimensions of feedback There are many ways to divide feedback. Below I propose just a few, basing on the: 1. Simplicity of the feedback; simple feedback is generally based only on one cue and complex feedback on multiple cues. 2. timing when feedback is given; generally, feedback can be obtained either immediately after the decision making or be delayed (shortly after the decision), or be 35

postponed (delivered much time after the decision making action), or not be delivered at all; for a discussion see this paper. 3. source of the feedback; feedback might either be extrinsic, i.e. coming from an external source (e.g. tennis coach giving you instructions) or intrinsic, i.e. coming from the inside (e.g. continuous feedback to your brain from muscular proprioceptors while practicing your backhand). 4. "explanatory power" of the feedback; if feedback mirrors only the dynamic development of a problem (e.g. providing only the result of your previous decision), it is called output feedback. If feedback describes why the problem develops in particular way, it is called cognitive feedback. 5. trustworthiness of the learning environment; some sources of information are more trustworthy for the decision maker, therefore the feedback from them are going to be considered to a bigger extent and some sources of feedback might be totally disregarded. 6. Time horizon and situational awareness: feedback and feed forward From the systemic stance as well as from the decision making point of view, feedback has a crucial disadvantage: it refers to the past, or at best, to the present. Feedback control allows the selection of actions on the basis of past or current information about the system. A control system referring to the future is called feedforward. It requires higher situational awareness, in order to choose an action on the basis of the predictions of the future state of the system. So, Feed forward control is superior to feedback control because of its focus on avoiding problems rather than fixing them, but requires more adequate knowledge and cognitive effort. Neoclassical theory has based much of its interpretation of human choice process in terms of feed forward mechanisms, also in the form of inter-personal game theoretic interaction. Now, a fully new strand of empirical experiments is shedding light on the complexity of this issue

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