Professional Documents
Culture Documents
Authority is the power to command, to act or not to act in a manner deemed by the
possessor of the authority to further enterprise or departmental performance". –
Koontz and O'Donnell
Types of Authority:
Basically the following types of authority are given below:
1. Legal Authority.
The authority is based upon the rank of the person in the organisation and such
authority may be given by law or by social norms, rules and regulations protected by
law. Ex: the president of a company has the right to fire an employee because that is
how the rules and policies of the company have been established.
2. Traditional or Formal or top-down Authority.
This authority is based upon the belief in traditions and the legitimacy of the status of
people exercising authority through those traditions. Such traditions have evolved
from a social order and communal relationships in the form of the ruling “Lord” and
the obedient “subjects”. Traditional authority has flowed from the top of the
organisation to the bottom, from the owners or stockholders to the board of directors
to the president to the vice-presidents to middle managers to supervisors to workers.
3. Acceptance or Bottom-up Authority.
The acceptance theory of authority presents a contrast to the traditional formal view
of authority. According to the acceptance theory, authority in the ultimate analysis
depends on the acceptance or consent of the people who are managed (subordinates)
rather than legitimacy, or any legal, social or cultural norms. If the subordinates don’t
accept the command of their superior, the superior cannot be said to have any
authority with reference to them.
4. Charismatic Authority.
The Charismatic Authority rests on personal charisma of a leader who commands
respect of his followers on the basis of his personality and his personal traits such as
intelligence and integrity. This is especially true of religious and political leaders. The
followers become highly attached to the leader partly because the leader’s goals seem
to be consistent with their own needs.
5. Competence or personal Authority.
This is also known as “technical authority” and is implicit in person’s special
knowledge or skill. For example, when doctor advises you to rest, you accept his
“order” because you respect his knowledge and his skills as a doctor. Again, this
order will not get results unless you accept and obey and in that sense it rests on
acceptance theory of authority.
1. Inviting applications:
The prospective candidates from within the organization or outside the organization are
called for applying for the post. Detailed job description and job specification are
provided in the advertisement for the job. It attracts a large number of candidates from
vari-ous areas.
2. Receiving applications:
Detailed applications are collected from the candidates which provide the necessary
information about personal and professional details of a person. These applications
facilitate analysis and comparison of the candidates.
3. Scrutiny of applications:
As the limit of the period within which the company is supposed to receive applications
ends, the applications are sorted out. Incomplete applications get rejected; applicants with
un-matching job specifications are also rejected.
4. Written tests:
As the final list of candidates becomes ready after the scrutiny of applications, the written
test is conducted. This test is conducted for understanding the technical knowledge,
atti-tude and interest of the candidates. This process is useful when the number of
applicants is large.
Many times, a second chance is given to candidates to prove themselves by conducting
another written test.
5. Psychological tests:
These tests are conducted individually and they help for finding out the indi-vidual
quality and skill of a person. The types of psychological tests are aptitude test,
intelligence test, synthetic test and personality test
6. Personal interview:
Candidates proving themselves successful through tests are interviewed per-sonally. The
interviewers may be individual or a panel. It generally involves officers from the top
management. The candidates are asked several questions about their experience on
another job, their family background, their interests, etc. They are supposed to describe
their expectations from the said job. Their strengths and weaknesses are identified and
noted by the interviewers which help them to take the final decision of selection.
7. Reference check:
Generally, at least two references are asked for by the company from the can-didate.
Reference check is a type of crosscheck for the information provided by the candidate
through their application form and during the interviews.
8. Medical examination:
Physical strength and fitness of a candidate is must before they takes up the job. In-spite
of good performance in tests and interviews, candidates can be rejected on the basis of
their ill health.
9. Final selection:
At this step, the candidate is given the appointment letter to join the organization on a
particular date. The appointment letter specifies the post, title, salary and terms of
employment. Generally, initial appointment is on probation and after specific time period
it becomes permanent.
10. Placement:
This is a final step. A suitable job is allocated to the appointed candidate so that they can
get the whole idea about the nature of the job. They can get adjusted to the job and
perform well in future with all capacities and strengths.
Types/Sources of Recruitment
For any organization, recruitment is a crucial part of developing and maintaining an
effective and efficient team. A good recruitment strategy will cut down the wastage of
time and money, which would have incurred for extensive training and development of
unqualified resources.
Internal Sources
Internal sources of recruitment refer to hiring employees within the organization
internally. In other words, applicants seeking for the different positions are those who are
currently employed with the same organization. The various internal sources of
recruitment are:
1. Promotions
2. Transfers Recruiting
3. Former Employees
4. Internal Advertisements (Job Posting)
5. Employee Referrals
6. Previous Applicants
External Sources
External sources of recruitment refer to hiring employees outside the organization
externally. In other words, the applicants seeking job opportunities in this case are those
who are external to the organization. External employees bring innovativeness and fresh
thoughts to the organization. Although hiring through external sources is a bit expensive
and tough, it has tremendous potential of driving the organization forward in achieving its
goals. Let us now discuss in detail the various external sources of recruitment.
1. Direct Recruitment
2. Employment Exchanges
3. Employment Agencies
4. Advertisements
5. Professional Associations
6. Campus Recruitment
7. Word of Mouth Advertising
1. Job rotation:
This training method involves movement of trainee from one job to another gain
knowledge and experience from different job assignments. This method helps the trainee
under-stand the problems of other employees.
2. Coaching:
Under this method, the trainee is placed under a particular supervisor who functions as a
coach in training and provides feedback to the trainee. Sometimes the trainee may not get
an opportunity to express his ideas.
3. Job instructions:
Also known as step-by-step training in which the trainer explains the way of doing the
jobs to the trainee and in case of mistakes, corrects the trainee.
4. Committee assignments:
A group of trainees are asked to solve a given organizational problem by discussing the
problem. This helps to improve team work.
5. Internship training:
Under this method, instructions through theoretical and practical aspects are provided to
the trainees. Usually, students from the engineering and commerce colleges receive this
type of training for a small stipend.
Off-the-job Methods:
On the job training methods have their own limitations, and in order to have the overall
development of employee’s off-the-job training can also be imparted. The methods of
training which are adopted for the development of employees away from the field of the
job are known as off-the-job methods.
V MOTIVATION THEORIES
Definition: There are several Theories of Motivation that are developed to explain the
concept of “Motivation”. The motivation is a drive that forces an individual to work in a
certain way. It is the energy that pushes us to work hard to accomplish the goals, even if
the conditions are not going our way. With the establishment of human organizations,
people tried to find out the answer to, what motivates an employee in the organization the
most. This gave birth to several content theories and process theories of motivation.
The content theories deal with “what” motivates people, whereas the process theories
deal with, “How” motivation occurs. Thus, theories of motivation can be broadly
classified as:
Content Theories: The content theories find the answer to what motivates an individual
and is concerned with individual needs and wants. Following theorists have given their
theories of motivation in content perspective:
Process Theories: The process theories deal with “How” the motivation occurs, i.e. the
process of motivation and following theories were given in this context:
It is probably safe to say that the most well-known theory of motivation is Maslow’s need
hierarchy theory Maslow’s theory is based on the human needs. Drawing chiefly on his
clinical experience, he classified all human needs into a hierarchical manner from the
lower to the higher order.
The psychologist Frederick Herzberg extended the work of Maslow and propsed a new
motivation theory popularly known as Herzberg’s Motivation Hygiene (Two-Factor)
Theory. Herzberg conducted a widely reported motivational study on 200 accountants
and engineers employed by firms in and around Western Pennsylvania.
Douglas McGregor formulated two distinct views of human being based on participation
of workers. The first basically negative, labeled Theory X, and the other basically
positive, labled Theory Y.
1. People are by nature indolent. That is, they like to work as little as possible.
3. People are inherently self-centered and indifferent to organisational needs and goals.
4. People are generally gullible and not very sharp and bright.
Urwick’s Theory Z:
Much after the propositions of theories X and Y by McGregor, the three theorists Urwick,
Rangnekar, and Ouchi-propounded the third theory lebeled as Z theory.
The two propositions in Urwicks’s theory are that:
(i) Each individual should know the organisational goals precisely and the amount of
contribution through his efforts towards these goals.
(ii) Each individual should also know that the relation of organisational goals is going to
satisfy his/her needs positively.
In Urwick’s view, the above two make people ready to behave positively to accomplish
both organisational and individual goals.
However, Ouchi’s Theory Z has attracted the lot of attention of management practitioners
as well as researchers. It must be noted that Z does not stand for anything, is merely the
last alphabet in the English Language.
Argyris’s Theory:
Argyris has developed his motivation theory based on proposition how management
practices affect the individual behaviour and growth In his view, the seven changes
taking place in an individual personality make him/her a mature one. In other words,
personality of individual develops in maturity and immaturity
In fact, Porter and Lawler’s theory is an improvement over Vroom’s expectancy theory.
They posit that motivation does not equal satisfaction or performance. The model
suggested by them encounters some of the simplistic traditional assumptions made about
the positive relationship between satisfaction and performance. They proposed a multi-
variate model to explain the complex relationship that exists between satisfaction and
performance.
VI DIRECTING: DEFINITION, METHODS OF DIRECTING
Directing is one of the most important functions of management. Without the direction
provided to the employees, the workforce would be clueless about which path to follow.
Let us understand the concept of direction and the elements of directing.
According to Koontz and O ‘Donnel; “directing is a complex function that includes all
those activities which are designed to encourage subordinate to work effectively and
efficiently in both the short and long-run.”
Techniques of Directing:
(iii) Issuing Orders and Instructions: The issuing of orders and instructions is essential
to undertake the work for achieving the organizational goals. No manager can get a work
done without issuing orders and instructions to subordinates. An order, instruction,
directing or command is a means of initiating, modifying or stopping an activity. In the
words of Koontz and O’Donnel has a directional technique, an instruction is understood
to be a charge (command) by a superior requiring a subordinate to act or refrain from
acting in a given circumstance.
Importance of Direction:
1. Initiates Action:
Direction is required to initiate action. The functions of planning, organizing, staffing
etc., will be taken up only when direction is given to initiate them. Direction starts the
actual work for achieving enterprise objectives.
2. Improves Efficiency:
A manager tries to get maximum work from his subordinates. This will be possible only
through motivation and leadership and these techniques are a part of direction.
3. Ensures Co-ordination:
Direction helps in ensuring mutual understanding and team work. The individual efforts
are directed in such a way that personal performances help in achieving enterprise
objectives. The integration of various activities is possible through direction.
5. Provides Stability:
Effective leadership, supervision and motivation will help in the smooth growth of an
enterprise. A growing concern will provide stability to its activities.
6. Motivation:
Motivation is an important element of direction. Motivation is a factor which encourages
persons to give their best performance and help in achieving enterprise goals. A strong
positive motivation will enable the increased output of employees. A key element in
direction is motivation. It helps in getting willing co-operation of employees. Every
organisation makes efforts that its employees contribute maximum for achieving
enterprise goals.
7. Supervision:
Direction involves giving instructions to employees for undertaking some work. In order
to see whether employees are doing the things as per targets or not there is a need for
supervision. In supervision all the activities of the employees are controlled and efforts
are made to ensure proper achievement of targets. In case the performance is less than the
targets then remedial steps are taken for improving the performance. So supervision is an
integral part of direction.
8. Co-ordination:
Direction will be effective only when there is a proper co-ordination. In direction,
different persons are asked to perform specific tasks. In order to see that efforts of every
employee are in the direction of achieving organizational goals there is a need to co-
ordinate various activities. In the absence of co-ordination every person will go in his
own direction without bothering for the enterprise target. When various activities are co-
originated then overall enterprise objectives will be easily achieved.
Leadership involves making sound -- and sometimes difficult -- decisions, creating and
articulating a clear vision, establishing achievable goals and providing followers with the
knowledge and tools necessary to achieve those goals.
A leader has got multidimensional traits in him which makes him appealing and effective in
behavior. The following are the requisites to be present in a good leader:
Physical appearance- A leader must have a pleasing appearance. Physique and health are very
important for a good leader.
Vision and foresight- A leader cannot maintain influence unless he exhibits that he is forward
looking. He has to visualize situations and thereby has to frame logical programmes.
Intelligence- A leader should be intelligent enough to examine problems and difficult situations.
He should be analytical who weighs pros and cons and then summarizes the situation. Therefore,
a positive bent of mind and mature outlook is very important.
Communicative skills- A leader must be able to communicate the policies and procedures
clearly, precisely and effectively. This can be helpful in persuasion and stimulation.
Objective- A leader has to be having a fair outlook which is free from bias and which does not
reflects his willingness towards a particular individual. He should develop his own opinion and
should base his judgement on facts and logic.
Knowledge of work- A leader should be very precisely knowing the nature of work of his
subordinates because it is then he can win the trust and confidence of his subordinates.
Sense of responsibility- Responsibility and accountability towards an individual’s work is very
important to bring a sense of influence. A leader must have a sense of responsibility towards
organizational goals because only then he can get maximum of capabilities exploited in a real
sense. For this, he has to motivate himself and arouse and urge to give best of his abilities. Only
then he can motivate the subordinates to the best.
Self-confidence and will-power- Confidence in himself is important to earn the confidence of
the subordinates. He should be trustworthy and should handle the situations with full will power.
(You can read more about Self-Confidence at : Self Confidence - Tips to be Confident and
Eliminate Your Apprehensions).
Humanist-This trait to be present in a leader is essential because he deals with human beings
and is in personal contact with them. He has to handle the personal problems of his subordinates
with great care and attention. Therefore, treating the human beings on humanitarian grounds is
essential for building a congenial environment.
Empathy- It is an old adage “Stepping into the shoes of others”. This is very important because
fair judgment and objectivity comes only then. A leader should understand the problems and
complaints of employees and should also have a complete view of the needs and aspirations of
the employees. This helps in improving human relations and personal contacts with the
employees.
From the above qualities present in a leader, one can understand the scope of leadership and its
importance for scope of business. A leader cannot have all traits at one time. But a few of them
helps in achieving effective results.