Management Principles and Application Unit 4 Staffing and Leading

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Management Principles and Application Unit 4 Staffing and Leading

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Staffing and Leading



(A) Multiple choice:

1. Motivation is an inner state that–

(a) Activates persons at work more.

(b) Helps them in increasing their wages and salaries.

(c) Helps a person to lean more about the job.

Ans: (a) activates persons at work more.

2. Unsatisfied needs of a person–

(a) Create a state of disqualifier in a person.

(b) Make him angry.

(c) Demoralize him.

Ans: (a) Create a state of disqualifier in a person.

3. Positive motivation involves–

(a) Punishment for low performance.

(b) Various incentives for better work.

(c) Cooperation of workers.

Ans: (c) Cooperation of workers.

4. Fear of punishment creates.

(a) Panic among employees.

(b) Ill will among employees and management.

(c) Negative Motivation.

Ans: (c) Negative Motivation.

5. Mallows theory of motivation deals with

(a) Different types of behavior among employees.

(b) Hierarchy of Needs.

(c) Carrot and stick approach of Motivation.

Ans: (c) Carrot and stick approach of Motivation.

6. Abraham Maslow developed his model of human motivation in the year

(a) 1940

(b) 1941

(c) 1942

(d) 1943

Ans: (d) 1943

7. Which of the following is the first need of Maslow’s hierarchical theory of motivation

(a) Physiological needs.

(b) Security needs.

(c) Social needs.

(d) Esteem needs.

Ans: (a) Physiological needs.

8. Under which of the following leadership style, leaders keep the decision making authority with their own hands.

(a) Autocratic.

(b) Democratic.

(c) Laisse fair.

(d) Bureaucratic.

Ans: (a) Autocratic.

9. Which of the following barriers of communication arises from the limitations of the symbolic system

(a) Physical barriers.

(b) Personal barriers.

(c) Semantic barriers.

(d) Mechanical barriers.

Ans: (c) Semantic barriers.

10. In Herzberg’s, two factors theory of motivation, recognition is a-

(a) Motivation.

(b) Hygienic factor.

(c) need. 

(d) want.

Ans. (a) Motivation.

11. A self-confident leader whose personality and action influence people to behave in certain ways is called

(a) Participative leader.

(b) Charismatic leader.

(c) Autocratic.

(d) Permissive leader.

Ans. (b) Charismatic leader.

(B) Fill up the blanks:

1. Motivation is a force which keeps a person _____________. (at work/fir for work)

Ans: At work.

2. Motivation is an inner state which _____________ a person to reach his goals. (activates/mentality prepares)

Ans: Activates.

3. Negative motivation is based on _____________. (force/incentives)

Ans: Force.

4. Psychological needs are essential for _____________ of a person. (Welfare/ survival)

Ans: Survival.

5. The maintenance factors _____________ employees by their presence. (motivate/do not motivate)

Ans: Do not motivate.

6. Leadership is an important element of the _____________ function of management. (directing/controlling)

Ans: Directing.

7. Leadership is the ability to build up confidence and _____________ among people. (Zeal/initiative)

Ans: Zeal.

8. Leadership is co-existent with _____________.

Ans: Followers.

9. _____________ leaders keep the decision making authority and control in their own hand.

Ans: autocratic.

10. _____________ leaders invite their subordinates to participate in handling problems so that group are acting as a social unit.

Ans: democratic.

11. _____________ leaders leave the subordinates to decide and control themselves.

Ans: laissen faire.

(C) Say true of false:

1. Communication means sharing of ideas in common.

Ans: True.

2. Communication is a one way traffic.

Ans: False.

3. Communication is not a pervasive in nature.

Ans: False.

4. The channel is the carrier of the message in communication.

Ans: True.

5. An idea in the mind of sender is the source of the message.

Ans: True.

6. In the step of Encoder in the process of communication the receiver converts the message into thought.

Ans: False.

7. In decoding of the process of communication the sender translates the idea into a message.

Ans: False.

8. Communication though the chain of command is known as formal communication.

Ans: True.

9. Formal communication is also called Grapevine.

Ans: False.

10. Upward communication travels from subordinates to superiors.

Ans: True.


1. What is staffing?

Ans: Staffing is the process of employing and developing required people to fill various positions in the organisation.

2. Why is it said that recruitment is a positive step in the process of staffing?

Ans: It is a positive process as it attracts suitable applicants who apply for available jobs.

3. Staffing in an organization is an estimation of man power requirement. Comment.

Ans: Staffing is concerned with determining the number and types of staff required for the organisation.

4. Give the serial order of ‘staffing’ as a function of management.

Ans: Planning, organising, staffing, directing and controlling.

5. What is motivation?

Ans: Motivation is an inner state of mind of a person. According to Vance motivation implies any emotion or desire, which so conditions one’s will that the individual be properly led into action. So motivation is a psychological phenomenon, which generates within an individual.

6. What is leadership?

Ans: Leadership is the ability of a manager to induce subordinates to work with confidence and zeal. Leadership is the influential relationship in which one person (the leader) influences others (the led) in a given situation to work together on the related tasks to attain that which the leader desires.

7. What is communication?

Ans: Communication is an exchange of facts, opinions, ideas or emotions between two or more people. According to Keith Davis, “Communication is the process of passing information and understanding from one person to another.”

8. What is directing?

Ans: Directing involves communicating and providing leadership to the subordinates and motivating them to contribute to the best of their capability for the achievement of organizational objectives.

9. What is positive motivation?

Ans: Positive motivation makes the people induce to do their work in the best possible manner they can and improve their performance. It provides better facilities and rewards for better performance.

10. What is negative motivation?

Ans: Negative motivation aims at controlling the negative efforts of the workers and seeks to create a sense of fear or an uncongenial and unhelpful environment for the worker where he has to suffer for lack of good performance.

11.  What do you mean by Autocratic or Authoritarian Style leader?

Ans: An autocratic also known as authoritarian style of leadership implies wielding absolute power. Under this style, the leader expects complete obedience from his subordinates and all decision-making power is centralized in the leader. No suggestions or initiative from subordinates is entertained. The leader forces the subordinates to obey him without questioning. An autocratic leader is, in fact, no leader. He is merely the formal head of the organization and is generally disliked by the subordinates who feel comfortable to depend completely on the leader. 

12. What do you mean by Laissez-faire or Free-rein Style Leader? 

Ans: Under this type of leadership, maximum freedom is allowed to subordinates. They are given free hand in deciding their own policies and methods and to make independent decisions. The leader provides help only when required by his subordinates otherwise he does not interfere in their work. The style of leadership creates self-confidence in the workers and provides them an opportunity to develop their talents. But it may not work under all situations with all the workers, may bring problems of indiscipline. Such leadership can be employed with success where workers are competent, sincere and self-disciplined.

13. What is formal communication?

Ans: Formal communication is that which takes place through the formal channels of the organization structure deliberately and consciously established by the management. It implies the flow of the information along the lines of authority formally established in the enterprise.

14. What is grapevine?

Ans: It is also called informal communication. This communication is built around the social relationship of members of the organization. Grapevine or informal communication does not follow lines of authority. It is implicit, spontaneous, multidimensional and varied.

15. What is Downward communication?

Ans: Downward communication means communication, which flows, from a superior to subordinates. It follows the line of authority from the top to bottom of the organizational hierarchy.

16. What is upward communication?

Ans: Upward communication implies the flow of information from the lower levels of the organization to the higher levels of authority. It passes from subordinate to superior, such as from worker to foreman, from foreman to manager, from manager to general manager.

17. What is Horizontal communication?

Ans: The transmission of information and understanding between people on the same level of organizational hierarchy is called the horizontal communication. It is also called lateral or sideward or crosswise communication.

18. What is Diagonal communication?

Ans: The transfer of information between people who are neither in the same department nor on the same level of organization hierarchy is called diagonal communication. As for example – the Assistant Marketing Manager communicates with the accounts clerk directly.

19. What is Gestural communication?

Ans: Gestural communication is also called non-verbal communication. It includes everything that may be used to convey meaning form one person to another by movement of lips or wink of an eye or the wave of hands etc. Expression through body parts is called Gestural communication.

20. What is formal leader?

Ans: A formal leader is one who is normally appointed or elected to direct and control the activities of the subordinates. He is a person created by the formal structure, enjoys organizational authority and accountable to those who have elected him in a formal way.

21. What is informal leader?

Ans: Informal leaders are not formally recognized. They derive authority from the people who are under their influence. The informal leaders have only one task to perform, i.e. to help their followers in achieving their individual and group objectives.

22. What are financial incentives?

Ans: Financial incentives are monetary motivations, which may be in the form of more wages, salaries, bonuses, profit sharing, leave with pay, medical reimbursements, company paid insurance of any of other things that may be given to employees for performance.

23. What are non-financial incentives?

Ans: Non-financial incentives are non-monetary motivation, which are in the nature of better status, recognition, participation, job security, job enrichment etc.

24. Who has developed the Managerial Grid?

Ans: Robert R. Brake and Jone S. Mounton developed the managerial grid.

25. What are the various needs as provided by maslow in his theory.

Ans. The various needs as provided by maslow in his theory are–

(a) Physiological needs.

(b) Safety needs.

(c) Social needs.

(d) Esteem needs.

(e) Self-fulfilment needs.

26. Name the important motivational techniques.

Ans. The important motivational techniques are–

(a) Management by objective.

(b) Jobs satisfaction.

(c) Job enlargement.

(d) Job station.

(e) Job enrichment.

27. Mention the basic element of communication.

Ans. The basic element of communication are–

(a) Communicator.

(b) Communicative.

(c) Message.

(d) Communicator channel.

(e) Response / Feedback.

28. On the basic of use of power, how many types of leadership styles are there–

Ans. On the basic of use of power, there are three styles of leadership–

(a) Autocratic leadership.

(b) Participative leadership.

(c) Free rein leadership.

29. What are the Benefits of Staffing Process?

Ans: The benefits of an effective staffing function are as follows–

(i) Staffing process helps in getting right people for the right job at right time. The function of staffing helps the management to decide the number of employees needed for the organization and with what qualifications and experience.

(ii) Staffing process helps to improved organizational productivity. Therefore, through proper selection of employees in the organization, it can increase the quality of the employees, and through proper training, the performance level of the employees can also be improved.

(iii) It helps in providing job satisfaction to the employees and thus keeps their morale high. With proper training and development programmer, the employees get motivation and their efficiency improves and they feel assured of their career advancements.

(iv) It maintains harmony in the organization. Therefore with an overall performance of proper staffing in an organization, the individuals are not only recruited and selected and but as a result, their performance is regularly appraised and promotions made on merit which fosters harmony and peace in the organization for the accomplishment of overall objectives of an organization.

30. Write the objectives of staffing.

Ans: Important objectives of staffing:

(i) To procure right type of personnel for right jobs.

(ii) To train and develop human resources.

(iii) To develop personnel policies as regards transfer, promotion, etc.

(iv) To mould effectively the human resources and motivate them for higher performance.

(v) To establish desirable working relationship between employers and employees and between groups of employees.

(vi) To ensure satisfaction of the needs of the workers so that they become loyal and committed to the organisation.

(vii) To build high morale among employees by maintaining good human relations.

31. What is the importance of staffing functions in today’s environment?

Ans: Staffing is the function of attraction and selection of the hard working people and putting them on jobs where their talents and skills can be best utilized and retention of these people through in centimes, job training and job recruitment programs in other to achieve both individual and organisations objectives. This function is becoming extremely specialized due to unique importance and complexity of human nature and ever changing psychological behaviour and attitudes. As a result of increasing demand, size and types of market, production, technology, type of organisation, attitude, desire of the employees are also gradually increasing. So, the importance of staffing functions is also increasing.

32. The staffing function is performed by every manager not necessarily by a separate department. Explain.

Ans: Staffing function includes analyse the job by preparing job description, job specification and job analysis. Moreover, includes actual recruitment selection, training, development, performance appraisal and career development. On the other hand, every manager is responsible to carry out these above function of respective department. So, infact, staffing can be defined as separate department like production department, finance department, etc. Staffing as a part of human resource manage includes almost all major activities of the HRM. So, if you analyse the function of staffing, it can be found that these function must be done by different managers for their respective department, that is why staffing is not necessarily performed by a separate department.

33. What are the various needs of Maslow model of motivation?

Ans: Maslow identified five needs of human, which are–

(a) Physiological needs: These are food, cloth, houses etc.

(b) Safety needs: These are protection from physiological dangers (fire, accident), economic security etc.

(c) Social needs: These include love, belongingness, gain acceptance from association etc.

(d) Esteem needs: These are self-confidence, achievement, competence, self-respect, knowledge and for independence and freedom.

(e) Self-Actualization needs: These are needs for realizing one’s own potentialities for continued self-development. It is a growth need.

34. What are the determinants of motivation?

Ans: There are mainly determinants of motivation such as:

(a) Influence operating within the individual.

(b) Organizational climate such as:

(i) Individual autonomy.

(ii) Positive structure.

(iii) Reward orientation.

(iv) Consideration.

(v) Conflict.

(vi) Progressive and development.

(vii) Risk talking.

(viii) Control.

35. What are the different maintenance factors of Herberg two factor theories?

Ans: Herzberg concludes that there are ten maintenance factors namely:

(i) Fair company policies and administration.

(ii) A supervisor who knows the work.

(iii) A good relationship with one’s supervisor.

(iv) A good relationship with one’s peers.

(v) A good relationship with one’s subordinates.

(vi) A fair salary.

(vii) Job security.

(viii) Personal life.

(ix) Good working conditions.

(x) Status.

36. What are the features of autocratic leadership?

Ans: Different features of autocratic leadership are mentioned below–

(i) He centralizes power.

(ii) He makes all the decisions himself.

(iii) He structures the work of his group members, as far as possible.

(iv) He exercise, close supervision and control over his group members.

(v) He expects that his subordinates will obey him without question.

(vi) He gets the things done through fear or threats of punishment, penalties and so on.

37. Mention five objectives of communication?

Ans: Five important objectives of communication are mentioned–

(i) All the concerned persons should be rightly and clearly given the orders and instructions.

(ii) Organization’s policies, procedures objectives etc. should be properly explained to all the people working within the organization.

(iii) To keep employees informed of company’s progress.

(iv) To solicit information from the employees, which may aid management.

(v) To make each employee interested in his respective job and in the work of company as a whole.

38. Give some example of non-verbal communication.

Ans: There are various special types of non-verbal communication as given below–

(i) The face: Face is the index of mind and one can read of and understand the whole personality. Face is considered as the primary source of information of the real feeling like happiness, surprise, fear, anxiety, anger etc.

(ii) The eyes: Eyes are considered as “Portals to the soul”. It will help in initiating a communication.

(iii) The body: The entire body, its posture, gesture can provide a non-verbal clue and the body can be interpreted easily. A dancer will speak completely for hours together through her body only.

(iv) The positive: The very fact that managers usually will assume a more relaxed position than their subordinates will communicate the status relationships.

(v) Touch: Shaking the hand indicates welcome, liking acceptance and greeting. It is a happy communication, which is widely accepted.

39. Mention the different forms of formal external communications.

Ans: Below mentioned are some forms of formal external communications–

(i) Advertising.

(ii) Media Interaction.

(iii) Public Relations.

(iv) Website and internal.

(v) Presentation.

(vi) Audio-Visual Aids.

(vii) Negotiations.

(viii) Mails.

(ix) Telegrams, Telephone and Fax.

40. Mention five principles of effective communication.

Ans: In order to make communication effective, the following principles are essential–

(i) Principle of clarity.

(ii) Principle of objective.

(iii) Principle of understanding the receiver.

(iv) Principle of consistency.

(v) Principle of completeness.

41. How can employee be motivated by jobs enlargement?

Ans. Employee can be motivated by job enlargement as job enlargement involves a variety of jobs/operations at the same time. Thus, it involve horizontal job leading as compared vertical one. It helps in employee motivation in the following way–

(a) Increasing number of tasks with variety helps in reducing boredom of employees.

(b) Sometimes, the jobs are enlarged so that one worker complete a whole unit of work as a major portion of it. This will increase the satisfaction of the workers as he can see his contribution to the entire project.

(c) Enlarged jobs lead to better utilize the physical and mental objectives of the workers.

42. What is communication barrier?

Ans. The problem of communication arises because there are various obstacles which may entirely prevent a communication falter part of it out, or give its incorrect meaning these obstacles are known a communication barriers. These barriers may operate in organisation communication as well as in non-organisation communication.

Different barriers of communication may be grouped as semantic barriers, emotional or psychological barriers, organisational barriers and personal barriers. Some of these barriers operate in all type of communication while others may be more relevant for organisational communication.

43. Write short note of situational leadership.

Ans. The situational leadership emphasizes not on personal qualities or traits of a leader, but upon the situation in which he operates. Leadership of this kind is greatly affected by situation and leadership pattern is a product of a situation at a particular time. A good leader is one who moulds himself according to the needs of a given situation.

The theory dealing with situational leadership is situational theory. This however suffers from the drawback that it fails to consider the fact that in the complex process of leadership, individual qualities and traits of the leader also play an important role.

Besides their, various situational factors are–

(i) Subnormalities characteristics.

(ii) Leaders situation, his position power and leader subordinate relations.

(iii) Group factors like task design, group norms etc.

(iv) Organisational factors.

44. Write six differences between formal and informal communication.

Ans: The six differences between formal and informal communication are:

Formal CommunicationInformal Communication
(i) It follows the official chain of command.(i) It is based on personal relationship and does not follow fixed pattern.
(ii) It is slow as it has to follow the path laid down by the management.(ii) It is very fast as it is not supposed to follow a particular path.
(iii) It is rigid as deviations are not allowed.(iii) It is flexible as it moves freely.
(iv) Formal communication is generally accurate.(iv) Informal message may not be authentic.
(v) Chances of wrong information are very few.(v) Chances of distribution of information are very high.
(vi) It serves needs of the organisation.(vi) It serves social needs of the members and also of the organisation.

45. Give six distinction between oral and written communication.

Ans: Six distinction between oral and written communication are:

Oral CommunicationWritten Communication
(i) Communication is expressed through spoken words.(i) Communication is expressed in writing.
(ii) It takes less time.(ii) It takes more time.
(iii) It may not be precise.(iii) It can be very precise.
(iv) It is generally informal in nature.(iv) It is generally formal in nature.
(v) Oral message may not be taken casually.(v) It is generally taken seriously.
(vi) Oral message may not be verifiable.(vi) Written message is verifiable from the records.

46. Give three disadvantages of informal communication.

Ans: The three disadvantages of informal communication are:

(i) Informal communication is not authentic. The message may be distorted because of involvement of different persons.

(ii) It may lead to generation of rumours in the organisation.

(iii) Informal channels may not always be active. So informal communication is not dependable.

47. Give three distinctions between ‘monetary’ and ‘non-monetary’ incentives.


Monetary IncentivesNon-Monetary Incentives
(i) Monetary or financial incentives are paid in terms of money.(i) Non-monetary benefits don’t involve any economic gain to employees.
(ii) Monetary incentives include wages, allowance, bonus, etc.(ii) Non-monetary incentives involve job enrichment, greater authority, advancement, recognition, etc.
(iii) Monetary incentives are visible and measurable as they can be expressed in terms of money.(iii) Non-Monetary incentives may not be visible and measurable.

48. Explain in brief any four advantages of formal communication.

Ans: The four advantages of formal communication are given below:

(i) Formal communication ensures orderly flow of information throughout the enterprise.

(ii) It follows the official chain of command. It provides support to the authority of superior over the subordinates.

(iii) It facilitates control by the superiors.

(iv) Responsibility for actions can be fixed.

49. State any four disadvantages of formal communication.

Ans: The four disadvantages of formal communication are given below:

(i) Formal communication is generally slow as it follows the official chain of authority. It delays decision-making particularly when a number of layers are involved.

(ii) It is usually conveyed in an impersonal manner. Personal touch is missing.

(iii) Any inaccurate information may cause serious damage to the organisation.

(iv) It is rigid and rule bound.

50. Distinguish between written and verbal communication.

Ans: The distinction between written and verbal communication are listed below:

Written CommunicationVerbal Communication
(i) Communication is expressed in writing.Communication is expressed through spoken or words.
(ii) It takes more time.It takes less time.
(iii) It can be very precise.It may not be precise.
(iv) Written message is verifiable from the records.Oral message may not be veri-fiable.
(v) It is generally formal in nature.It is generally informal in nature.

1. What is the concept of staffing? Explain the Importance of Staffing.

Ans: The managerial function of staffing involves manning the organization structure through proper and effective selection, appraisal and development of the personnel’s to fill the roles assigned to the employers/workforce.

According to Theo Haimann, “Staffing pertains to recruitment, selection, development and compensation of subordinates.”

Concepts: Staffing is an important managerial function-Staffing function is the most important managerial act along with planning, organizing, directing and controlling. The operations of these four functions depend upon the manpower which is available through staffing function.

Staffing is a pervasive activity-As staffing function is carried out by all mangers and in all types of concerns where business activities are carried out.

Staffing is a continuous activity: This is because staffing function continues throughout the life of an organization due to the transfers and promotions that take place.

The basis of staffing function is efficient management of personnel’s-Human resources can be efficiently managed by a system or proper procedure, that is, recruitment, selection, placement, training and development, providing remuneration, etc.

Staffing helps in placing right men at the right job. It can be done effectively through proper recruitment procedures and then finally selecting the most suitable candidate as per the job requirements.

Staffing is performed by all managers depending upon the nature of business, size of the company, qualifications and skills of managers, etc. In small companies, the top management generally performs this function. In medium and small scale enterprise, it is performed especially by the personnel department of that concern.

It is of utmost importance for the organisation that right kinds of people are employed. They should be given adequate training so that wastage is minimum. They must also be induced to show higher productivity and quality by offering them incentives.

In fact, effective performance of the staff function is necessary to realize the following benefits:

(a) Efficient Performance of Other Functions: Staffing is the key to the efficient performance of other functions of management. If an organisation does not have competent personnel, it can’t perform planning, organisation and control functions properly.

(b) Effective Use of Technology and Other Resources: It is the human factor that is instrumental in the effective utilisation of latest technology, capital, material, etc. the management can ensure right kinds of personnel by performing the staffing function.

(c) Optimum Utilisation of Human Resources: The wage bill of big concerns is quite high. They also spend money on recruitment, selection, training and development of employees. In order to get the optimum output from the personnel, the staffing function should be performed in an efficient manner.

(d) Development of Human Capital: The management is required to determine the manpower requirements well in advance. It has also to train and develop the existing personnel for career advancement. This will meet the requirements of the company in future.

(e) Motivation of Human Resources: The behaviour of individuals is shaped by many factors such as education level, needs, socio-cultural factors, etc. that is why, the human aspect of organisation has become very important. The workers can be motivated through financial and non-financial incentives.

(f) Building Higher Morale: Right type of climate should be created for the workers to contribute to the achievement of the organisational objectives. By performing the staffing function effectively, management can show the significance it attaches to the personnel working in the enterprise. This will increase the morale of the employees.

2. What are the Important Steps Involved in Staffing Process?

Ans: Some of the important steps involved in staffing process are as follows:

(a) Manpower Planning: Manpower planning can be regarded as the quantitative and qualitative measurement of labour force required in an enterprise. Therefore, in an overall sense, the planning process involves the synergy in creating and evaluating the manpower inventory and as well as in developing the required talents among the employees selected for promotion advancement.

(b) Recruitment Recruitment is a process of searching for prospective employees and stimulating them to apply for jobs in the organization. It stands for finding the source from where potential employees will be selected.

(c) Selection: Selection is a process of eliminating those who appear unpromising. The purpose of this selection process is to determine whether a candidate is suitable for employment in the organization or not. Therefore, the main aim of the process of selection is selecting the right candidates to fill various positions in the organization. A well-planned selection procedure is of utmost importance.

(d) Placement: Placement means putting the person on the job for which he is selected. It includes introducing the employee to his job.

(e) Training: After selection of an employee, the important part of the programmed is to provide training to the new employee. With the various technological changes, the need for training employees is being increased to keep the employees in touch with the various new developments.

(f) Development: A sound staffing policy provides for the introduction of a system of planned promotion in every organization. If employees are not at all having suitable opportunities for their development and promotion, they get frustrated which affect their work.

(g) Promotions: The process of promotion implies the up-gradation of an employee to a higher post involving increasing rank, prestige and responsibilities. Generally, the promotion is linked to increment in wages and incentives but it is not essential that it always relates to that part of an organization.

(h) Transfer: Transfer means the movement of an employee from one job to another without increment in pay, status or responsibilities. Therefore this process of staffing needs to evaluated on a timely basis.

(i) Appraisal: Appraisal of employees as to how efficiently the subordinate is performing a job and also to know his aptitudes and other qualities necessary for performing the job assigned to him.

(j) Determination of Remuneration: This is the last process which is very crucial as it involves in determining remuneration which is one of the most difficult functions of the personnel department because there are no definite or exact means to determine correct wages.

3. What do you mean by motivation? Discuss the different characteristics of motivation. Describe the importance of motivation?

Ans: The word motivation is derived from ‘motive’, which means an active form of a desire, craving or need that must be satisfied. Motivation is the key to organizational effectiveness. The manager in general has to get the work done through others. These ‘others’ are human resources who need to be motivated to attain organizational objectives.

Following are the main characteristics–

(a) Motivation is internal feeling: Motivation is the internal feeling of an individual. It points out the energizing force, within an individual that direct or influence him to behave in a particular way.

(b) Continuous process: Motivation is a continuous or never ending process. It is so because human needs, desires, wants or wishes are endless. All of them can never be satisfied simultaneously. Satisfaction of one need gives size to another need. Therefore motivation process goes on forever.

(c) Dynamic process: Motivation is a dynamic and complex process. It is so because it relates to human behavior, which is never static but dynamic. It keeps on changing continuously.

(d) A psychological concept: The concept of motivation is mainly psychological. It relates to those forces operating within the individual employee, which compel him to act or not to act in certain ways.

(e) A way to direct and explain behavior: Motivation refers to the way which urges, drives, desires, inspirations or needs direct and explain the behavior of human beings. It is the psychological process that gives behavior purpose and direction.

(f) It is the willingness to exert effort: Motivation is the willingness of an individual to exert effort in the pursuit of organizational goals and to satisfy some individual needs.

(g) System-Oriented: Motivation is system oriented. It is the system that contains three main factors-

(a) factor operating within an individual i.e. his needs, aspirations, wants, wishes, values, etc.

(b) factors operating within the organization such as organizational structure technology, physical facilities, work environment etc.

(c) factors operating in the external environment such as customers, norms of society, culture etc. 

Motivation is the result of interaction among these factors.

(h) Need satisfying process: Motivation is a need satisfying process. An unsatisfied need creates tension that stimulates drives within an individual. These drives generate search behavior to find particular goals that (if attained) will satisfy the need and reduce tension.

(i) Energizing force: Motivation is the process that energizes or encourages individuals to put in effort to achieve organizational goals and to satisfy their needs.

(j) Positive or negative: Motivation can be positive or negative. Positive motivation implies use of incentives such as increase in pay, reward, promotion, and so on for better work. Negative motivation, on the other hand, means punishment and penalties such as reprimands, threats of demotion, fear of loss of job etc.

(k) Whole individual is motivated: Every individual is an integrated whole in himself. Therefore, whole individual can and should be motivated. A part of the individual cannot be motivated. It is so because motivating is a psychological concept that is concerned with the whole individual.

(l) Frustrated individual cannot be motivated: A frustrated individual cannot be satisfied and motivated. In other words, an individual who is unable to satisfy his basic needs becomes frustrated. Such as individual cannot be motivated until his needs are satisfied.

(m) Motivation is different from morale: It is true that both motivation and morale relate to individual and group psychology. But, distinction is made between the two terms. Firstly, motivation is the reason what makes an individual to do work. It consists of forces and procedures that direct or influence an individual’s behavior. On the other hand, morale is individual’s on group’s attitude and feelings about his work and work situation. It is a resultant state encompassing the willingness to cooperate. Secondly, motivation is an individualistic concept whereas morale is a group concept. Thirdly, motivation is the result of satisfaction of needs, desires, aspirations etc. whereas morale is the result of good motivation.

(n) Motivation and job satisfaction are not synonymous: Motivation is different form job satisfaction. Job satisfaction is the positive emotional attitude of an individual towards his job resulting from his job performance and job situation. It is a psychological contentment, which an individual experience from the factors associated with the job. Motivation on the other hand, is the result of job satisfaction as well as individual’s needs satisfaction.

Motivation is regarded as one of the most important functions of management. The importance of motivation is summarized in the following points.

(a) Inspires employees to work: Effective motivation system inspires employees to do work or to take action. It prepares them to do their work with full devotion. It creates willingness among the employees to perform their work with great enthusiasm, zeal and loyalty.

(b) High Performance: Highly motivated employees perform better and higher as compared to the employees with low level of motivation. Motivation is the main spring of performance. Without motivation the other contributors to performance become rather irrelevant.

(c) Higher Productivity: Motivated employees can use their skills and organizational resources more efficiently and effectively. This ultimately results in higher productivity of all the resources of the organization.

(d) Effectiveness of management functions: A proper motivation system is key to the effectiveness of all managerial functions. Effectiveness of all managerial functions will go for naught if employees cannot be motivated to fulfill their responsibilities. Planning and organizing cannot be successful if the employees are not properly motivated.

(e) Helps achieve organization’s objectives: Motivation is core of management. Through motivation, managers encourage employees to direct their energies for achieving organizational goals. Thus, motivation helps achieve organizational objectives.

(f) Human resource development: Motivation helps develop human resource in an organization. Through motivation, employees can be directed to enlarge their job skills. In order to maintain a continual reservoir of well-trained and highly motivated employees, a sound motivation system should be in place.

(g) Satisfied human resources: A sound motivation system ensures proper supply of motivated human resources. Such a system in an organization can also ensure the satisfaction of needs and aspirations of individuals. Thus, it can attract and retain satisfied human resource in the organization.

(h) Boosts morale: Morale refers to the attitude and feelings of employees about their work and work situation. Through motivation, employee attitudes and feelings towards work can be improved. This is turn boosts employee morale.

(i) Sense of belongingness: A proper motivation system promotes close ties between the enterprise and its employees. Employees begin to feel that enterprise belongs to them. Hence, employees become more concerned about the well being of the enterprise.

(j) Reduced employees’ turnover and absent system: Satisfied employees tend to stay longer and remain regular in the organization. This, in turn, reduces employee turnover and absenteeism.

(k) Facilitates change: It is a research-based fact that properly motivated employees are more receptive to new things and ready to accept change. These attitude facilities introduce change and keep the organization on the path of progress.

(l) Effective utilization of resources: Motivated employees concentrate on finding new and more effective ways of doing a job and utilizing resources. Poorly motivated employees usually avoid work and misuse resources. Thus, effective utilization of resources largely depends on the level of employees’ motivation.

(m) Better industrial relations: A good motivation system creates congenial work environment and job satisfaction. Employees tend to work with cooperative spirit and in a disciplined manner. Management also offers them better, wages and incentives. Hence, chances of conflict are greatly reduced. All this leads to better industrial relations.

(n) Enhances corporate image: An organization with motivated staff commands reputation in the business world and the society. Such organization can easily obtain talented persons whenever the need arises.

(o) Innovation and development of technology: Motivated employees can innovate and develop new technology and products for the organization. There are many organizations where talented employees carry on research regularly and innovate. They develop new technology and products, which are essential for the well being of the organization and the society as a whole.

4. Define intrinsic and extrinsic? Write the Difference Between Intrinsic and Extrinsic Motivation.

Ans: Extrinsic Motivation: This motivation is induced by external factors, which are primarily financial in nature. These incentives and rewards have been a subject of debate, whether they really motivate the employees or simply move them to the work.

Intrinsic Motivation: This is concerned with the state of self-actualization, in which the satisfaction of accomplishing something worthwhile motivates the employees further. These are primarily non-financial rewards.

Intrinsic and extrinsic motivation are two types of motivation. These two types can be influenced by two other kinds of motivation, namely, positive and negative motivation.

In all types of motivation, a person’s desire, motive, and outcome are common denominators.

As their names imply, intrinsic motivation and extrinsic motivation refer to the origin of the motivation. In intrinsic motivation, the motivation exists within a person while “extrinsic” refers to external or outside motivation. In a sense, both types apply the theory of incentive or reward to reason.

These two types of motivation are applicable to many industries and all kinds of people. Intrinsic or extrinsic motivation can allow reagent, interest focus, direction, sustained actions, and an expected outcome from a person.

Sometimes both intrinsic and extrinsic motivation can exist independently or in combination with each other in any human activity. They can also overlap depending on the circumstances.

Intrinsic motivation is voluntary motivation. It is often caused by the following factors: interest, enjoyment and pleasure, personal accomplishment and satisfaction, pride, internal reward, developed skills and competency, core beliefs, internal needs, and other internal rewards. This type of motivation has elements of autonomy, personal goals and eagerness.

In many situations, intrinsic motivation is much more favored because it is voluntary, no need for force, and builds more momentum in the individual. Also, people with intrinsic motivation are more cooperative, less competitive with other people, and they sustain their interest in the subject for a long period of time.

Often, intrinsic motivation is formed when all of a person’s basic needs are met. Since intrinsic motivation is individual-based, there is a variety of choices.

In terms of rewards, intangible rewards come first while tangible rewards follow. In this situation, intangible rewards matter more than the tangible. Tangible rewards are seen as an additional incentive but not the main one.

On the other hand, extrinsic motivation is the opposite of intrinsic motivation. As mentioned earlier, it is motivation that exists outside of a person.

Many human situations are often caused by extrinsic motivation. These causes are usually in the form of external rewards, force, pressure, acknowledgment and praise, conformity, social support, sense of worth, and other forms which are not self-based.

Depending on the situation, external rewards can reinforce or undermine internal beliefs or rewards.

Extrinsic motivation can cause some people to be more competitive or more aggressive among other people for the same reward. In addition, some rewards are non-sustainable or decreases in value over the passage of time.

In some situations, external rewards are the samé and applicable to a group of people.

Speaking of rewards, the tangible rewards hold a prominent role in extrinsic motivation. Over time, intangible rewards can later be realized.

5. Explain in detail the Maslow’s theory of motivation along with its assumptions. Also mention its merits and demerits?

Ans: A.H. Maslow, a noted psychologist, propounded the need hierarchy theory of motivation. It is one of the best-known theories of human motivation. According to Maslow, within every human being there is a hierarchy of five needs, which are as follows –

(i) Physiological needs.

(ii) Safely needs.

(iii) Social needs.

(iv) Esteem needs.

(v) Self-actualization needs.

(i) Physiological needs: Physiological needs are concerned with the basic biological functions of the human body. These needs relate to the essentials for survival. These include the needs for food, water, clothing, shelter, rest, recreation etc. These need are inherent in the nature of a human body.

Physiological needs are the most powerful motivators as no human being can survive without them. These needs are at the lowest level in the hierarchy of needs.

(ii) Safety needs: Safety needs are concerned with protecting the person from physical and psychological harm as well as the assurance that physiological needs will continue to be met. These include the needs of job security, economic and social security, e.g. pension, insurance etc.

Safety needs begin to rise when the physiological needs of a person are fairly met.

(iii) Social or belonging or love needs: Social needs relate to the desire to have social interaction, friendship, affiliation belongingness with groups, acceptance, affection, support from others and so on. Such needs become motivators when physiological and safety needs have been fairly satisfied.

(iv) Self-esteem or egoistic needs: Self-esteem needs, constitute the fourth level in the hierarchy of needs. These needs arise when physiological; safety and social needs have been fairly satisfied.

According to Maslow these needs are of two types-

(i) Need of self-respect or self-esteem. and 

(ii) Needs for esteem from others or public esteem.

Self-respect means the respect in the eyes of oneself. Self-respect needs include the needs for self-confidence for competence, for independence and freedom, for achievement and personal strength. Esteem from other, means the respect or image in the eyes of others. The needs of esteem from others includes the needs for prestige, recognition, acceptance, attention status, reputation and appreciation from others.

(v) Self-actualization needs: The four needs described above, motivate people by their absence. But self-actualization needs are the needs and aspirations for growth. Such needs motivate people by their presence.

Self-actualization needs concern the needs for maximizing the use of one’s skills, abilities, potential to become everything that one is capable of becoming. Such needs relate to realization of one’s full potential for development, growth and fulfillment. This category of needs is placed at the apex of the need hierarchy and hence is the highest level of needs.

The hierarchical need theory given by Maslow is shown below in the diagram:

Propositions/Assumptions: Maslow’s need hierarchy theory is based on the following propositions or assumptions:

(a) A man is perpetually wanting animal: As soon as one of his wants or needs is satisfied, another appears in its place. This process goes on in every one’s life.

(b) Needs can be arranged in an order or a hierarchy: In this hierarchy, physiological needs are at the lowest and most basic. These needs are followed in ascending order by the safety needs, social needs, esteem needs and self-actualization needs.

(c) There is always a sequence of emergence of needs: Higher level needs do not emerge or motivate unless all lower level needs have been fairly or minimally satisfied.

(d) Higher level needs can be satisfied in more than one ways. But the ways to satisfy lower level needs are very limited.

(e) Maslow separated the five needs into higher level needs and lower level needs. According to him physiological and safety needs are lower-level or lower-order needs whereas social, esteem and self-actualization needs are higher level needs. Maslow believed that lower-level needs are mainly satisfied externally whereas the higher level needs is satisfied internally.

(f) The first four needs motivate people by their absence. In other words, when people feel lack of food; clothing, sex, security, social relationships, respects etc. they are motivated to work. But self-actualization needs motivate people by their presence.

(g) Maslow believes that no need is ever fully satisfied. Needs can be largely or substantially satisfied.

For motivating someone, a manager should understand that person’s level of need in the hierarchy and focus on satisfying needs at or above that level. It is the job of the manager to lift employees from lower-level needs to higher level needs.

Merits Maslow’s need hierarchy theory is best-known theory of motivation. It has received a wide recognition. It has been highly appreciated on the following grounds:

(a) It is a logical theory because it recognizes that an individual do something to fulfill his diverse needs.

(b) It clearly states that satisfied needs are not motivators. Therefore, managers can easily concentrate on unsatisfied needs of their subordinates.

(c) It clearly states that a person advances to the next level of the need hierarchy only when the lower level need is minimally or fairly satisfied.

(d) It offers useful ideas for understanding human needs and ways for satisfying them.

(e) It helps to find out the reasons that influence behavior of a person. Thus, it explains the reasons why people behave differently even in the similar situation.

(f) It is a dynamic model because it presents motivation as a constantly changing force. It considers that every individual strives for fulfillment of fresh and higher-level needs.

(g) It is a positive theory. It assumes that man is a healthy, good and creative being, capable of working out his own destiny.

(h) It is a simple and humanistic theory.

(i) It is based on reasonable assumption and has been substantiated by several research studies.

Limitations/Demerits: Maslow’s theory suffers from the following limitations–

(a) It is a simplistic theory and cannot be tested and validated in practice. It lacks empirical testing. It is difficult to interpret and analyze its concepts.

(b) Maslow’s theory is based on a small sample of subjects. It is a clinically derived theory, which may not be accurate in real life.

(c) Some criticize on the ground that human needs do not always emerge in a hierarchical manner. The reversal of Maslow’s hierarchy can also be seen.

(d) Need hierarchy may not be the same among all the employees. Generally, socially culturally and economically advantages employees have higher-level needs whereas the socially and economically disadvantaged employees have lower-level needs.

(e) There are some who argue that there is no evidence that a satisfied need is not a motivator.

(f) Similarly, there is no evidence that satisfaction of one need automatically activates the next need in the hierarchy.

(g) Human beings are not motivated by their needs alone but also by many other things. Therefore, it is doubtful weather deprivation of a need motivate an individual.

6. Discuss leadership significance in the management of a large manufacturing enterprise.

Ans: The importance of leadership are as follows:

(i) It improves motivation and morale: Through dynamic leadership managers can improve motivation and morale of their subordinates. A good leader influences the behaviour of an individual in such a manner that he voluntarily works towards the achievement of enterprise goals.

(ii) It acts as a motive power to group efforts: Leadership serves as a motive power to group efforts. It leads the group to a higher level of performance through its persistent efforts and impact. On human relations.

(iii) It acts as an aid of authority: The use of authority alone cannot always bring the desired results. Leadership acts as an aid to authority by influencing, inspiring, and initiating action.

(iv) It is needed at all levels of management: Leadership plays a pivotal role at all levels of management because in the absence of effective leadership no management can achieve the desired results.

(v) It rectifies the imperfectness of the formal organizational relationships: No organizational structure can provide all types of relationships and people with common interest may work beyond the confines of formal relationships. Such informal relationships are more effective in controlling and regulating the behaviour of the subordinates. Effective leadership uses these informal relationships to accomplish the enterprise goals.

(vi) It provides the basis of co-operations: Effective leadership increases the understanding between the subordinates and the management and promotes co-operation among them. 

7. Explain clearly the Herzberg’s two factors theory of motivation. Also discuss its merits and limitations?

Ans: During the late 1950s Fredrick Herzberg, a behavioral scientist (Psychologist), and his associates developed two factor theory of motivation. This is also known as the ‘Motivation hygiene theory’. This theory is based on empirical research on job attitudes of 200 engineers and accountants of a company.

The researchers asked two questions from those two hundred employees:

(i) ‘Can you describe, in detail, when you felt exceptionally good about your job?’

(ii) Can you describe, in detail, when you felt exceptionally bad about your job?

They were all asked to describe the conditions that had led to those feelings.

Herzberg analyzed the responses and revealed that factors, which made respondents, feel good were totally different from those, which made them feel bad. Herzbeg grouped those responses in two categories:

(i) Hygiene factors or maintenance factors.

(ii) Motivators or satisfiers.

These are described in the table given below:

Table: Herzberg’s Hygiene factor and Motivators

* Company policy and administration* Achievement
* Working conditions* Recognition
* Job security* Advancement
* Salary* Responsibility
* Quality of supervision* Personal growth
*Interpersonal relations with superiors, coworkers and subordinates* Opportunities
* Work itself

Hygiene factors or maintenance factors are related to the job environment. There are eight factors: Working conditions, job security, salary, quality of supervision, company policy and administration, inter personal relationship and fringe benefits. Presence of these factors in job environment is essential if a reasonable level of satisfaction in employees is to be maintained. The absence or deficiency in these factors can cause dissatisfaction. The presence of these factors is necessary to avoid dissatisfaction and pain in the work environment. These factors do not motivate employees.

Motivators motivate employees: According to Herzberg there are six motivators or motivational factors: achievement, recognition, responsibility, advancement, personal growth and the nature of the job itself. Adequacy of these factors makes employees satisfied with their job and consequently motivates them. Their absence, however, rarely dissatisfies or demotivates the employees.

According to Herzberg job satisfaction and job dissatisfaction are not opposites of each other. Absence of job dissatisfaction does not mean presence of job satisfaction. Satisfaction is achieved through motivators and dissatisfaction results from absence of adequate hygiene factors.

Therefore, managers should maintain adequate amount of hygiene factors in order to avoid dissatisfaction among employees.

Merits or contribution: The merits or contribution of Herzberg’s theory are summarized as follows–

(a) It clearly distinguishes between the factors that motivate employees on the job and the factors that maintain employees on the job.

(b) It recommends specific measure to improve motivation levels.

(c) It helps in understanding the effect of job content on motivation of employees.

(d) It explains the significance of job enrichment on the job redesign and motivation.

(e) It is a rational approach to motivation. It clearly explains that the factors, which cause job dissatisfaction, are different from the factors, which cause job satisfaction. Hence, presence or maintenance of hygiene factors avoids dissatisfaction in employees but does not cause satisfaction. Similarly, presence of motivators causes satisfaction and motivation.

Limitations or weaknesses: Though Herzberg’s theory of motivation has gained widespread popularity among managers and management educators, it suffers from the following limitations:

(a) It is alleged that research base was very narrow and was not representative enough to make justified generalizations.

(b) It is difficult to distinguish job context factors from the job-content factors. In many cases, job context factors have elements of job-content factors. Moreover, for some individual job content factors, i.e. motivators have no significance because their job related aspirations are very limited.

(c) Sometimes in real life situations, there is no direct cause and effect relationship between satisfaction and performance. Many employees are satisfied with their job but their performance is not high.

(d) The methodology used by Herzberg is sometimes questioned. Since raters have to make interpretations, different raters may have interpreted the responses in different ways.

(e) It explains the reasons of job satisfaction and dissatisfaction. Thus it is, in fact not a theory of motivation.

(f) Not all the measures of satisfaction have been explored and utilized.

(g) It ignores the impact of situational variables on motivation.

(h) Herzberbz assumes that there is a relationship between satisfaction and high performance. But in his research work he looked only at satisfaction and not at performance or productivity (Robbins).

(i) As a matter of fact, two factors are not distinct. Both hygiene factors and motivators may cause satisfaction and dissatisfaction.

(j) The theory lays much emphasis on motivators and ignores the impact of hygiene factors on motivation.

Despite this limitations/criticism Herzberg’s theory has made significant contribution to the manager’s understanding of employee motivation. This is a valuable insight into employee motivation.

8. Explain the need/Significance of business communication.

Ans: Communication is the life blood of business. It is an all pervasive function of management. Today the organizational structure is designed on the basis of specialization and division of labor. Large number of people work together who are functionally related to each other. Thus, coordination is a must amongst the workmen. Coordination can be achieved only when there is mutual trust and understanding between them. This understanding is created by effective communication. 

Here are the some need for business communication: 

(i) Audit your current state of business communication and set goals: No matter what stage your company is in, you need a business communication plan in place. However, to ensure effective communication, you need to focus on the areas that require the biggest improvement right now and work your way to other areas later.

(ii) Advance technology: Day by day rapid changes are taking place in science and technology leading to obsolescence of old technology. Thus in order to upgrade or modernize technology proper communication between the superior and subordinate in an organization is a must.

(iii) Choose the right communication tools: There’s no handbook that defines which tools are absolutely best for each purpose. Gmail versus Outlook. Google Drive versus Dropbox. Slack versus Nextiva Chat. The battles go on, but your choice is entirely up to the preference of you and your workforce.

(iv) Public relations: Public relations help an organization to improve its image in society as the organization has a social responsibility especially towards the customers.

(v) Solving problems: Through various communication channels, the managers can be informed of various routine and non-time problems of the organization and accordingly they take the necessary actions of steps to solve the problems.

(vi) Removing controversies: Effective communication allows smooth flow of information among various parties involved in the negotiation or transaction. As a result, conflicts, controversies and disagreements can be resolved easily.

9. Describe the similarities and distinction between Maslow’s and Herzberg’s models?

Ans: A careful study and analysis of these two models would suggest that they are not very much different from each other. Rather there are marked similarities between the two. The similarities between the two are as follows-

(a) Both the models are content model. They focus on identifying needs that motivate people to do something.

(b) Both the models assume that needs are the driving force that cause a person to do something.

(c) Both the models fail to explain individual differences in motivation.

(d) Both the models consider the similar needs. Herzberg’s hygiene factors correspond to the Maslow’s lower-level needs i.e. physiological safety and security need. Herzberg’s motivators are comparable with that of Maslow’s higher-level needs as illustrated in the following diagram:

— Hygiene or Maintenance Factors Motivators —

Maslow’s Hierarchy of NeedsHerzberg’s Two-Factory Theory
Self-actualization needsMotivators:
Esteem needsChallenging work
Social needsMaintenance Factors:
Safety and security needsJob security
Good pay
Physiological needsWorking conditions
Type of Supervision
Interpersonal relations

Relationship between Herzberg and Maslow’s Models:

(e) Both tend to over simplify the motivation process.

(f) Both emphasize the same set of relationships.

(g) Both deal with the same problem.

10. Explain the Vroom Expectancy Motivation Theory. Write its merits and demerits also.

Ans: Whereas Maslow and Herzberg look at the relationship between internal needs and the resulting effort expended to fulfil them, Vroom’s expectancy theory separates effort (which arises from motivation), performance, and outcomes.

Vroom’s expectancy theory assumes that behavior results from conscious choices among alternatives whose purpose it is to maximize pleasure and to minimize pain. Vroom realized that an employee’s performance is based on individual factors such as personality, skills, knowledge, experience and abilities. He stated that effort, performance and motivation are linked in a person’s motivation. He uses the variables Expectancy, Instrumentality and Valence to account for this.

Expectancy is the belief that increased effort will lead to increased performance i.e. if I work harder then this will be better. This is affected by such things as:

(i) Having the right resources available (e.g. raw materials, time)

(ii) Having the right skills to do the job.

(iii) Having the necessary support to get the job done (e.g. supervisor support, or correct information on the job)

Instrumentality is the belief that if you perform well that a valued outcome will be received. The degree to which a first level outcome will lead to the second level outcome. i.e. if I do a good job, there is something in it for me.

This is affected by such things as:

(i) Clear understanding of the relationship between performance and outcomes – e.g. the rules of the reward ‘game’.

(ii) Trust in the people who will take the decisions on who gets what outcome.

(iii) Transparency of the process that decides who gets what outcome Valence is the importance that the individual places upon the expected outcome. For the valence to be positive, the person must prefer attaining the outcome to not attaining it. For example, if someone is mainly motivated by money, he or she might not value offers of additional time off.

The three elements are important behind choosing one element over another because they are clearly defined: effort-performance expectancy (E>P expectancy) and performance-outcome expectancy (P>O expectancy).

E>P expectancy: our assessment of the probability that our efforts will lead to the required performance level.

P>O expectancy: our assessment of the probability that our successful performance will lead to certain outcomes.

Crucially, Vroom’s expectancy theory works on perceptions – so even if an employer thinks they have provided everything appropriate for motivation, and even if this works with most people in that organisation, it doesn’t mean that someone won’t perceive that it doesn’t work for them.

At first glance expectancy theory would seem most applicable to a traditional-attitude work situation where how motivated the employee is depends on whether they want the reward on offer for doing a good job and whether they believe more effort will lead to that reward.

However, it could equally apply to any situation where someone does something because they expect a certain outcome. For example, I recycle paper because I think it’s important to conserve resources and take a stand on environmental issues (valence); I think that the more effort I put into recycling the more paper I will recycle (expectancy); and I think that the more paper I recycle then less resources will be used (instrumentality).

Thus, Vroom’s expectancy theory of motivation is not about self-interest in rewards but about the associations people make towards expected outcomes and the contribution they feel they can make towards those outcomes.

Advantages of the Expectancy Theory:

(i) It is based on self-interest individual who want to achieve maximum satisfaction and who wants to minimize dissatisfaction.

(ii) This theory stresses upon the expectations and perception; what is real and actual is immaterial.

(iii) It emphasizes on rewards or pay-offs.

(iv) It focuses on psychological extravagance where final objective of individual is to attain maximum pleasure and least pain.

Limitations of the Expectancy Theory:

(i) The expectancy theory seems to be idealistic because quite a few individuals perceive high degree correlation between performance and rewards.

(ii) The application of this theory is limited as reward is not directly correlated with performance in many organizations. It is related to other parameters also such as position, effort, responsibility, education, etc.

11. Explain corporate communication? Discuss its type?

Ans: Corporate communications is how companies share information to internal and external audiences and engage these audiences in a bid to manage brand perception. Corporate communication is made up of three major categories, which are management communication, marketing communication, and company communication.Corporate communication refers to how organizations exchange information with audiences. But did you know there are different types of corporate communication? In this guide, learn more about how organizations communicate internally and externally and discover how a professional video hosting platform can make information exchange easier in various scenarios. 

There are two types of corporate communication:

(i) Internal formal communication: It helps businesses convey information through predefined routes. For example, a manager might communicate workplace policies and procedures in an employee handbook, which HR teams give to new hires during the orientation process. Other examples of internal formal communication include newsletters and emails. Businesses can document and control each of these communication methods. 

(ii) External communication: The external communication network links the organization with the outside world of customers , suppliers , competitors , and investors , journalists , and community representatives. Sometimes this external communication is carefully orchestrated – especially during a crisis. At other times it occurs informally as part of routine business operations.

12. What are the various types of motivation? Mention briefly each of them. Describe different techniques of Motivation?

Ans: Motivation may be classified in the following categories–

(a) Positive and Negative motivation: Positive motivation is the process of influencing others to do work or to behave in accordance with the desire of the leader through the use of reward e.g. pay, fringe benefits, praise, responsibility, participation in decision-making, social recognition and so on.

Negative motivation is the process of controlling negative behavior/efforts of employees through fear and punishment. Thus, negative motivation is based on fear of force or threats. When employees fail to perform desired work or fail to behave in the desired manner, they are threatened or forced not to do so. Such threats or forces include wage cuts, retrenchment, demotion, transfer, reprimands and so on.

(b) Extrinsic and intrinsic motivation: Extrinsic or external motivation is one, which arises from external factors. It is related to job environment. It is the incentive or reward that a person receives after finishing his work. It includes higher wages, profit sharing, fringe benefits and so on.

Intrinsic or internal motivation is that which comes from the satisfaction that arises while performing a job. It is an internal reward i.e. satisfaction that comes while a person is performing his job. Thus, it is motivation that arises out of a job itself. It is an internal stimulus resulting from job content and not from job environment.

(c) Financial and non-financial motivations: Financial motivation is the pecuniary motivation and occurs from direct or indirect monetary benefits. Wages, fringe benefits etc. are the direct monetary benefits. Bonus, profit sharing plans, pension plans, and health insurance plans etc. are the indirect financial benefits.

Non-financial motivation is one, which is not associated with monetary rewards. In fact, non-financial motivation is psychic in nature. It comes from the satisfaction of higher level needs, i.e. social, esteem and self-actualization needs. Work environment, praise, recognition, promotions, more authority and responsibility etc. are the non-financial motivators.

Managers use variety of techniques for motivating employees. Such techniques may be broadly classified under the following two heads–

(i) Financial or monetary techniques.

(ii) Non-financial or non-monetary techniques.

(i) Financial Techniques/Incentives: Financial techniques of motivation are those, which involve financial expenditure for an organization and increase money income of its employees. These include-

(a) pay.

(b) dearness and other allowances.

(c) bonus.

(d) profit-sharing. and 

(e) fringe benefits and so on.

Fringe benefits are the benefits over and above regular pay and variable payment related to performance. Fringe benefits is, thus, a wider term includes housing, transport, recreation facilities, gratuity and soon. Thus, financial techniques are the financial incentives that provide pecuniary or monetary benefits or rewards to employees.

Monetary techniques are thus pecuniary benefits or rewards to the employees. These are tangible and visible incentives. These also play crucial role in satisfying the social and esteem needs of the employees. Money is recognized as a symbol of social status and source of power in the modern times. Thus, financial techniques beyond doubt serve most powerful role in motivating employees.

(ii) Non-financial Techniques/Incentives: Non-financial techniques of motivation are those, which are not associated with financial rewards. Such techniques are mainly psychic in nature. These are associated with the work and work environment. Such techniques contribute to the satisfaction of higher level needs such as social, esteem and self-actualization needs.

Some of the non-financial techniques of motivation are as follows–

(a) Job enlargement: Job enlargement is one of the modern techniques of motivation. Job enlargement means enlarging or adding more and different but simple tasks to a specialized job. Thus, it increases the number and variety of tasks a worker should do. Consequently, employees are encouraged to learn new skills or take new responsibility. This technique is also called the horizontal job loading.

(b) Job enrichment: Job enrichment is another technique of motivation. It is a technique of vertical job loading. It is a technique’ which focuses on job depth. Job enrichment refers to the basic changes in the content and level of authority and responsibility of a job so as to provide greater challenge to the employees. It is the process of adding several positive inducement and altercations in a job with a view to make the job more interesting, meaningful and challenging. Thus, it permits self-direction and self-control, which in turn, motivates employees.

(c) Job rotation: Job rotation is also regarded as a motivation technique. It is a technique in which employees are provided an opportunity to perform different jobs or functions by rotation. The purpose of job rotation is to broaden the scope of job and to increase the knowledge and skill of the employees about the job. This, in turn, relieves employees from boredom and monotony and improves their motivation level.

(d) Praise and recognition: Praise, appreciation and recognition are the most effective and direct means of motivation. These techniques acknowledge the performances of employees to the society. These satisfy the social and esteem needs of the employees. For efficient employee praise and recognition on the back of an efficient employee brings more happiness to him than the increase in the pay. Managers, therefore, give away prizes, certificates, letter of appreciation etc. to the employees performing the best.

(e) Participation: Employee participation in management is yet another technique of motivation. Employee participation means involvement of non-managerial activities. Such practice can ensure commitment of employees towards accomplishment of organizational goals. Consequently, employees feel involved in the organization and their level of motivation improves.

(f) Competition or contests: Competition or contests are means of motivation among employees. People usually like to compete with others and win over them. Therefore, managers may arrange competitions or contests for the employees. Managers fix certain goals or standards of performance for employees and challenge them to achieve them ahead of others. The winners are awarded prizes, given certificates of performance of appreciation letters with or without financial rewards. The winner gains recognition for his performance and social status and prestige. This all satisfies his social and esteem needs.

(g) Promotion/Status: Promotion to a higher post or increase in the status of a person improves his motivation level. Promotion may not always result in more pay or financial rewards but increases social status of the employees. This satisfies his social and esteem or ego needs.

(h) Delegation of Authority: Delegation of authority to execute a given task often proves to be a strong motivating force. This enables subordinates to have effective control over the work and its environment. Job enrichment also involves delegation of authority.

(i) Feeling of accomplishment: Employees are motivated to work better if they have a feeling of accomplishment. This feeling can be inculcated by providing more authority, autonomy, applying the MBO techniques, better career planning and development and so on.

(j) Security of Job: In the modern age, there are threats of loss of job from technological change. But providing security of job, employees may be motivated to work hard.

(k) Congenial social environment: Creation of congenial social environment may also motivate the employees. For this, managers can carefully plan and execute induction programmes, provide means to socialize employees through rest pauses and recreation programmes, promote the informal relations among the employees. These measures can go a long way in satisfying social and ego needs of employees.

(l) Opportunity for advancement: Opportunity for advancement can serve as a strong motivating force. This helps to develop their personality and talent. Such opportunity satisfies social ego and self-actualization needs.

(m) Quality circles: A quality circle is a group of employees of a work unit who meet frequently with their superior to identify and solve work related problems of their unit. This circle provides an opportunity to express opinions or suggestions in a frank, free and informal setting about the matters relating to product quality, cost and productivity of resources. Such circles, therefore serve, as a means to satisfy employees needs for interaction and self-expression. Hence, such circles are regarded as a means of motivation to employees.

(n) Sound work climate: Work climate refers to the physical environment of the work place. It is the basis of employees’ motivation. Creation and maintenance of sound work climate is a prerequisite for sound motivation system. Therefore, the factory layout, surroundings, facilities such as toilets, canteen, rest rooms, etc. should be properly planned and maintained in order to motivate employees.

There is no exhaustive list of non-financial techniques of motivation. There are many more techniques. A manager should use any or all the techniques keeping in view the needs of the employees and the prevailing circumstances.

13. Discuss the different nature of leadership.Explain the importance of leadership.


Discuss the different nature of leadership. Describe the various functions of leadership.

Ans: Following characteristics which highlight the nature of leadership:

(a) Personal quality: Leadership is a personal quality of a person. It is a behavioral quality and ability to influence others towards accomplishing a goal. Barnard has very rightly stated that “Leadership is the quality of behavior of individuals where by they guide people or their activities.”

(b) Leadership depends on doing: Leadership is a kind of personal quality. But effectiveness of leadership depends on its application or on performance. Peter Drucker has very aptly remarked “Leadership has little to do with leadership qualities and even less to do with ‘Charisma.’ It is mundane, unromantic and boring. It is work. Its’ essence is performance.”

(c) Followers: Leadership presupposes existence of followers. There cannot be leadership without followers. In the words of Koontz and O’ Donnell, “The essence of leadership is followership. It is the willingness of people to follow that makes a person a leader.” Thus effective leader makes his followers to act willingly to achieve the goal.

(d) Influencing and inspiring process: Leadership is a process of influencing and inspiring others to work towards objectives. Influencing means regulating and changing behavior, attitudes and feelings of others. The means of influencing others include reward, coercion, expertise, reference and tradition. Leaders can also influence with rational faith participation and persuasion.

(e) Continuous process: Leadership is a continuous process. A leader continuously makes efforts to influence behavior of his group members. He carries on this process by maintaining free flow of two-way communication with the entire group of his followers.

(f) Interpersonal relations: Leadership involves interpersonal relationship between the leader and his group members. A leader influences his group members and at the same time group members also influence the leader. Thus, a leader does not dominate the will of the members but tries to relate the wills of many people to get them work as a team.

(g) Common goals: Leadership is the ability of influencing behavior of people to work willingly to achieve some common goal. Terry and Franklin state that “It is the activity of influencing people to strive willingly for mutual objectives.” Thus, leadership involves community of interests between the leader and his followers.

(h) Shared functions: Leadership is a shared function. A good leader shares everything with his followers.

He shares ideas, opinions, experience, credits, balances and so on with his followers.

(i) Pervasion function: Leading is the function that pervades all the levels and functions of management. Planning, organizing, motivating and controlling cannot be performed effectively without effective leadership.

(j) Dynamic art: Leadership is a dynamic art. No particular style of leadership is effective in all situations. The effectiveness of leadership depends heavily on the situational variables. Therefore, art of leadership is exercised and applied in accordance with the demands of the situations.

(k) Power: Leadership is based on power. A person holding power over others is a leader. By virtue of power, a person is in a position to influence the behavior of his group members.

A leader may derive power from

(i) superior knowledge, information experiences or performance.

(ii) formal authority.

(iii) charisma. and 

(iv) distinct personality characteristics.

(l) Leadership may be formal and informal.

(m) Managing and leadership are not one and the same. But it is not always possible to distinguish between them in practice.

(n) Leadership may be positive or negative.

Leadership is a dynamic and constructive force in any organization. It plays a crucial role in the success and survival of an organization. It is the crucial factor that helps individuals to identify their goals. Briefly the importance and functions of leadership are as follows–

(a) Determination of goal: A leader plays a crucial role in laying down goals and policies of his group or the institution. He acts as a guide in setting organizational goals and policies.

(b) Guides and inspires or motivates: An effective leader guides and inspires or motivates his group members to work willingly for achieving the goals. He makes every effort to direct and channelise all energies of his followers to the goal-oriented behavior. He creates enthusiasm for higher performance among his followers.

(c) Boosts morale: Morale refers to the attitude of employees towards organization and management and will offer voluntary cooperation to the organization. Morale is an internal feeling of a person. A good leader can arouse will to cooperate among the employees.

(d) Creates confidence and enthusiasm: A good leader creates confidence among his group members. He does so by providing guidance, help and support in their day-to-day work. He even provides psychological support and infuses the spirit of enthusiasm among them.

(e) Develops team spirits: A good leader constantly tries to develop team spirit among his group members/followers. He inculcates a sense of community of interests. He provides a satisfying work climate by harmonizing individual and group goals. Thus, a leader reconciles conflicting goals and creates team spirit among his followers.

(f) Creates vision and initiative: It has been rightly said, where there is no vision, people perish. Leader gives vision to their followers, which in turn, create initiative and enthusiasm among them. The followers use this vision and initiative to take up challenging tasks.

(g) Transforms potential into reality: Effective leadership can transform potential or dream into reality. Leaders can identify, develop, channelise and enrich the potentials existing in an organization and its people.

(h) Representation: A leader represents his group members. He is the connecting link between his group members and the top management. He carries the views and problems of his group members to the concerned authorities and tries to convince them. Thus, he is in real sense an ambassador and guardian of his group feelings and interests. He also protects the interest of his group members against any outside challenge and threat.

(i) Development and use of human resources: An effective leader can develop and utilize human resource in a most effective way. A leader can influence the activities and behaviors of his followers to contribute their best.

(j) Facilitates change: Leaders can induce and introduce change. They are the instrumental in conceiving and managing change. They introduce change by convincing their followers about the positive effects of the change.

(k) Ensures survival and success of the enterprise: Leadership plays a vital role in the survival and success of an enterprise. Without effective leadership, many established enterprises have miserably failed. Glover has also stated that “most failure of business concerns are attributable to poor leadership than any other cause.”

(l) Contributes to effective management: Leadership is an essential and integral part of management. Effectiveness and efficiency of management largely depends on its leadership qualities. A strong leader can transform a lack luster organization into a successful one. Without leadership an organization is nothing but a muddle of men or machines.

(m) Create work environment: Effective leadership can create work environment in which group members can work with pleasure. For this, the leader creates and maintains interpersonal relations of trust and confidence among the group members.

(n) Maintains order and discipline: An effective leader has qualities to maintain order and discipline in the organization. He lays down standards of behavior and sees that his followers follow the same in their behavior. He shows exemplary behavior and maintains self-discipline in order to maintain discipline among his followers.

(o) Resolves conflicts: Leaders play crucial role in resolving the conflicts arising in the group. He does it by harmonizing the diverse intense interests of group members and the organization.

14. Describe the essential qualities of leadership. Explain the qualities of a good leader.

Ans: A general description of qualities of successful leader is given under the following sub-heads:

(a) Personality and stamina: It is rightly said that sound mind resides in sound body. Hence, a leader should have sound health and good stamina to work hard. He should be handsome with the charming personality. Such a leader has a lasting impact on the minds of his followers.

(b) Intelligence: A leader should be intelligent. He should have average level of intelligence. He should be capable of thinking scientifically.

(c) Self-confidence: A leader should have self-confidence. He should be fully confident of his action and decisions.

(d) Vision and foresight: A leader is required to have sharp vision and foresight. He should be able to foresee the future trend of events. This quality prepares him for future challenges.

(e) Ability to inspire: An effective leader is one who has ability to inspire. Hence, he should be capable of influencing people by his ideas, action and behavior.

(f) Ability to communicate: A leader should have ability to communicate effectively. He should be efficient in verbal, written, gestural communication skills.

(g) Sincerity and honesty: A leader should be sincere and honest. His integrity should be above doubts. Sincerity and integrity makes a man truthful, high-minded and gives him aspirations and high ideas. (F.W.Taylor)

(h) Courage and will power: It has been rightly said that without courage there are no virtues. No faith, hope, aspiration etc. can be transformed into realities without courage and willpower. Hence, a leader should be courageous.

(i) Flexible and dynamic: A leader should have flexible and dynamic mindset. He should be capable of adopting ideas and views in accordance with the need of the changing situation.

(j) Emotional stability i.e. maturity: A leader should be capable of keeping his emotions under control. Emotional stability and cool temperament are necessary for a matured leader. Hence he should remain cool, patient and undisturbed by the happening of unusual and unanticipated events.

(k) Sound judgment: A leader should have sound judgment power. He should be a shrewd judge of behavior, action and events. He should be able to judge the things judiciously.

(l) Tact and humour: A leader should be tactful in dealing with people and situations. He should have a sense of humour. These qualities help a leader to get the things done pleasantly without stress and strain.

(m) Education and knowledge: A leader should have proper education and knowledge. Particularly, the business leader should have education at least in the field of accountancy, management and economics. It would be better if he has specialized knowledge in the field of management. Moreover, he should have up-to-date knowledge of economic laws, policies and events.

(n) Conceptual skills: A leader should have and enquire conceptual skills. Conceptual skill is the ability to see the organization as a whole and among its sub units. It also includes the ability to visualize how the organization fits into its external environment. Such ability helps a leader to understand problems and opportunities of the organization and plan accordingly.

(o) Administrative skills: A manager/leader essentially need to have administrative skills. He should be able to implement the plans and policies to organize and to mobilize resources of the organization in a programmatic manner.

(p) Analytical skills: leaders should possess and develop analytical skills. These include the abilities to understand the things, situation, and problems in a systematic manner. Such skills are needed in evaluating performance, making decisions and solving complex situations.

(q) Human relation skills: A leader should have human relations skills. Human relation skills refer to the ability to work well with others. It includes the ability to understand people and their problems and feelings.

(r) Technical skills: A leader should also possess the technical skills. Technical skills relates to job knowledge and expertise. These include the ability to apply methods and techniques in performing the job and the ability to provide guidance and instruction to the followers.

Qualities of a Good Leader:

(i) Patience: Patience is the capacity to face difficult situations, hardships or inconvenience without making a single complaint. A good leader must show patience while waiting for expected results, facing difficult situations and taking important decisions. He must avoid taking hasty decisions and actions.

(ii) Good Personality: A good personality is a combination of physical, mental and social qualities. Good personality helps a leader to influence his followers. Attractive physique and good manners add an advantage to the leader’s personality.

(iii) Self-confidence: A good leader must have self confidence. This quality is necessary for facing challenging situations and for solving problems easily and effectively.

(iv) Human Skills: A good leader must have essential social and human skills. That is, he must understand people. This quality is necessary for dealing with different types of persons and social groups.

(v) Judgment skills: A good leader should be able to examine problems in right perspective. His judgment and decision making abilities should be superior to others. He should be able to form opinions and judge based on facts and not be prejudiced

(vi) Communication skills: A good leader should be able to communicate the goals and procedures of the organisation clearly, precisely and effectively to the subordinates. Only then will it be possible for him to convince, persuade and stimulate subordinates to action.

(vii) Listening skills: People tend to avoid a leader who does not listen. Hence a good leader in one who can listen to other peoples problems. He should be able to create a culture whereby people can be frank with him and give him information and also give him feedback about himself, which can help him to improve himself.

(viii) Inspiring skills: A good leader should be able to inspire people to deal with the “why” question. He should not just command and control but be able to lead the people and get them involved to work together as a team.

(ix) Administrative Skills: A good leader must have an administrative ability. This means, he must be able to get the work done through his followers. He must know how to plan, organize and control the work of his followers.

(x) Discipline: A good leader must be a disciplined person. This means he must have respect for the rule and regulations of the organisation. This is because his followers will follow his example.

15. What do you mean by Transactional Leadership? Write its features. Also write its advantages and disadvantages.

Ans: Transactional leadership or transactional management is the part of one style of leadership that focuses on supervision, organization, or performance; it is an integral part of the Full Range Leadership Model. Transactional leadership is a style of leadership in which leaders promote compliance by followers through both rewards and punishments. Through a rewards and punishments system, transactional leaders are able to keep followers motivated for the short-term. Unlike transformational leaders, those using the transactional approach are not looking to change the future, they look to keep things the same. Leaders using transactional leadership as a model pay attention to followers’ work in order to find faults and deviations.

This type of leadership is effective in crisis and emergency situations, as well as for projects that need to be carried out in a specific way.

Transactional leadership styles are more concerned with maintaining the normal flow of operations. Transactional leaders use disciplinary power and an array of incentives to motivate employees to perform at their best.

The term “transactional” refers to the fact that this type of leader essentially motivates subordinates by exchanging rewards for performance.

A transactional leader does not look ahead to strategically guiding an organization to a position of market leadership; instead, these managers are solely concerned with making sure everything flows smoothly today.

A leadership style based on the setting of clear goals and objectives for followers and the use of rewards and punishments to encourage compliance.

Transactional leaders are those who guide or motivate their followers towards established goals by clarifying role and task requirements.

Advantages of Transactional leadership:

(i) Awards those who are motivated by self-interest to follow instructions.

(ii) It gives an unambiguous structure for large organizations, systems requiring repetitive tasks and infinitely reproducible environments.

(iii) Achieves short-term goals quickly.

(iv) Rewards and penalties are defined by workers.

Disadvantages of Transactional leadership:

(i) Rewards the worker on a practical level only, such as money ot perks.

(ii) Creativity is limited since the goals and objectives are already set.

(iii) It does not reward personal initiative.

16. Explain the Characteristics/factors responsible for Grapevine.

Ans: Grapevine Communication is a method of informal and unofficial form of communication held in a workplace. It does not have any defined structure or agenda and is carried out by the people in an organization in the form of rumors, gossip, false statements, and half-truths. The name roots out from the vine of grapes spreading out in all directions. Grapevine represents that information conveyed in this method of communication spreads very quickly and without any boundary. It is an integral part of the communication channels of any organization and can be as detrimental as well as beneficial for the company.

The Grapevine can be used effectively in the following way:-

(i) The manager should adopt an open door policy and should keep each one well versed about plans, prospects policy matters or any other changes in the organization.

(ii) The manager should maintain a cordial relationship with his subordinates so as to reduce the possibility of grapevine.

(iii) Grapevine Communications bridges the gap in an organization where official communication is not up to par. Uninformed employees foster rumors and gossip.

(iv) The information that flows in these groups acts as sidelines to formal meetings. It can lead to conflict and anxiety in mismanaged organizations.

(v) As far as possible the manager should work towards providing healthy atmosphere at the workplace. One cannot stop rumours or curb grapevine altogether but efforts should be taken to check these as far as possible.

(vi) Nature of people, individuals in the organization like grasping attention and manipulating situations in their favor. They encourage grapevine communication to validate their points of view.

17. What do you mean by Transforming Leadership? Explain the four elements of transformational leadership?

Ans: Transformational leadership is a theory of leadership where a leader works with teams to identify needed change, creating a vision to guide the change through inspiration, and executing the change in tandem with committed members of a group; it is an integral part of the Full Range Leadership Model. Transformational leadership is when leader behaviors influence followers and inspire them to perform beyond their perceived capabilities. Transformational leadership inspires people to achieve unexpected or remarkable results. It gives workers autonomy over specific jobs, as well as the authority to make decisions once they have been trained. This induces a positive change in the followers attitudes and the organization as a whole. Transformational leaders typically perform four distinct behaviors, also known as the four I’s. These behaviors are inspirational motivation, idealized influence, intellectual stimulation, individualized consideration.

The Four Elements of Transformational Leadership are:

(i) Inspirational Motivation: The foundation of transformational leadership is the promotion of consistent vision, mission, and a set of values to the members. Their vision is so compelling that they know what they want from every interaction. Transformational leaders guide followers by providing them with a sense of meaning and challenge. They work enthusiastically and optimistically to foster the spirit of teamwork and commitment.

(ii) Intellectual Stimulation: Such leaders encourage their followers to be innovative and creative. They encourage new ideas from their followers and never criticize them publicly for the mistakes committed by them. The leaders focus on the “what” in problems and do not focus on the blaming part of it. They have no hesitation in discarding an old practice set by them if it is found ineffective.

(iii) Idealized Influence: They believe in the philosophy that a leader can influence followers only when he practices what he preaches. The leaders act as role models that followers seek to emulate. Such leaders always win the trust and respect of their followers through their action. They typically place their followers needs over their own, sacrifice their personal gains for them, ad demonstrate high standards of ethical conduct. The use of power by such leaders is aimed at influencing them to strive for the common goals of the organization.

(iv) Individualized Consideration: Leaders act as mentors to their followers and reward them for creativity and innovation. The followers are treated differently according to their talents and knowledge. They are empowered to make decisions and are always provided with the needed support to implement their decisions.

The common examples of transformational leaders are Mahatma Gandhi and Obama.

18. Explain Likerl’s four-system management approach in leadership. Which system of management is suggested best by Likert and why? Discuss.

Ans. Renses likert, developed the four system of management. He was the director of Michigan Institute of social Research USA.

He classified leadership styles in four categories viz–

(i) Exploitative Autocratic: In this style, there is no participation of workers because these leaders have no confidence and trust in subordinates. They seldom get ideas and options of subordinates. They seldom get ideas and opinions of subordinates in solving job problems, they motivate people through fear and punishment and engage in downward communication.

(ii) Benevolent autocratic: Its managers have great confidence and trust in subordinates. Managers sometime gets ideas and opinion of subordinates and in solving job problems, motivate people with rewards and permit some upward communication.

(iii) Participative autocratic: Such kind of autocrat has substantial but not complete confidence and trust in subordinates, still wish to keep control of decisions usually get ideas and opinions of subordinates, motivate people with reward and permit both upward and downward communicaiton.

(iv) Democratic leadership: This kind of leadership is referred to a democratic it involves the use of the principle of supportive relationship and group methods of supervision. Managers in this system have complete confidence and trust in subordinates in all matters. Subordinates feel free to discuss their job and problem with their superiors.

Best system According to Likert: According to Likert, best system of management style of leadership is system 4. He considered it as best as managers who have applied for it to their operations had greater success as leaders. However he remarked that differences in the kind of work and in skills and values of employees of a particular company will require different procedures and ways to apply appropriately the basic principles of system 4 management.

19. Explain the Blake and Mouton’s Managerial Grid theory of leadership.

Ans: The managerial grid model (1964) is a style leadership model developed by Robert R. Blake and Jane Mouton. This model originally identified five different leadership styles based on the concern for people and the concern for production.

The treatment of task orientation and people orientation as two independent dimensions was a major step in leadership studies. Many of the leadership studies conducted in the 1950s at the University of Michigan and the Ohio State University focused on these two dimensions.

Building on the work of the researchers at these Universities, Robert Blake and Jane Mouton (1960s) proposed a graphic portrayal of leadership styles through a managerial grid (sometimes called leadership grid). The grid depicted two dimensions of leader behavior, concern for people (accommodating people’s needs and giving them priority) on y-axis and concern for production (keeping tight schedules) on x-axis, with each dimension ranging from low (1) to high (9), thus creating 81 different positions in which the leader’s style may fall. (See figure 1).

Concern for Production

The five resulting leadership styles are as follows:

(i) Impoverished Management (1, 1): Managers with this approach are low on both the dimensions and exercise minimum effort to get the work done from subordinates. The leader has low concern for employee satisfaction and work deadlines and as a result disharmony and disorganization prevail within the organization. The leaders are termed ineffective wherein their action is merely aimed at preserving job and seniority.

(ii) Task management (9, 1): Also called dictatorial or perish style. Here leaders are more concerned about production and have less concern for people. The style is based on theory X of McGregor. The employees’ needs are not taken care of and they are simply a means to an end. The leader believes that efficiency can result only through proper organization of work systems and through elimination of people wherever possible. Such a style can definitely increase the output of organization in short run but due to the strict policies and procedures, high labour turnover is inevitable.

(iii) Middle-of-the-Road (5, 5): This is basically a compromising style wherein the leader tries to maintain a balance between goals of company and the needs of people. The leader does not push the boundaries of achievement resulting in average performance for organization. Here neither employee nor production needs are fully met.

(iv) Country Club (1,9): This is a collegial style characterized by low task and high people orientation where the leader gives thoughtful attention to the needs of people thus providing them with a friendly and comfortable environment. The leader feels that such a treatment with employees will lead to self-motivation and will find people working hard on their own. However, a low focus on tasks can hamper production and lead to questionable results.

(v) Team Management (9, 9): Characterized by high people and task focus, the style is based on the theory Y of McGregor and has been termed as most effective style according to Blake and Mouton. The leader feels that empowerment, commitment, trust, and respect are the key elements in creating a team atmosphere which will automatically result in high employee satisfaction and production.

Advantages of Blake and Mouton’s Managerial Grid:

The Managerial or Leadership Grid is used to help managers analyze their own leadership styles through a technique known as grid training. This is done by administering a questionnaire that helps managers identify how they stand with respect to their concern for production and people. The training is aimed at basically helping leaders reach to the ideal state of 9, 9.

Limitations of Blake and Mouton’s Managerial Grid:

The model ignores the importance of internal and external limits, matter and scenario. Also, there are some more aspects of leadership that can be covered but are not.

20. Explain the House’s Path Goal Theory of leadership with examples.

Ans: The theory was developed by Robert House and has its roots in the expectancy theory of motivation. The theory is based on the premise that an employee’s perception of expectancies between his effort and performance is greatly affected by a leader’s behavior. The leaders help group members in attaining rewards by clarifying the paths to goals and removing obstacles to performance. They do so by providing the information, support, and other resources which are required by employees to complete the task.

House’s theory advocates servant leadership. As per servant leadership theory, leadership is not viewed as a position of power. Rather, leaders act as coaches and facilitators to their subordinates. According to House’s path-goal theory, a leader’s effectiveness depends on several employee and environmental contingent factors and certain leadership styles.

All these are explained in the figure 1 below:

The four leadership styles are:

(i) Directive: Here the leader provides guidelines, lets subordinates know what is expected of them, sets performance standards for them, and controls behavior when performance standards are not met. He makes judicious use of rewards and disciplinary action. The style is the same as task-oriented one.

(ii) Supportive: The leader is friendly towards subordinates and displays personal concern for their needs, welfare, and well-being. This style is the same as people-oriented leadership.

(iii) Participative: The leader believes in group decision-making and shares information with subordinates. He consults his subordinates on important decisions related to work, task goals, and paths to resolve goals.

(iv) Achievement-oriented: The leader sets challenging goals and encourages employees to reach their peak performance. The leader believes that employees are responsible enough to accomplish challenging goals. This is the same as goal-setting theory.

According to the theory, these leadership styles are not mutually excusive and leaders are capable of selecting more than one kind of a style suited for a particular situation.

21. Explain Fiedler’s Contingency Theory of Leadership.

Ans: Fiedler’s Contingency Theory of Leadership states that your effectiveness as a leader is determined by how well your leadership style matches the situation. Fiedler’s Contingency Theory, just like all contingency theories, states that there is no one best way to lead your team. The best way to lead your team will instead be determined by the situation.

It is important to realize that in Fiedler’s Contingency Theory your leadership style is fixed. You cannot change your style to suit the situation. Instead, you must put leaders into situations that match their style. This puts the theory at odds with more modern contingency theories such as situational leadership.

There are two important factors in Fiedler’s Contingency Theory: leadership style and situational favorableness.

(a) Leadership Style: The first step in using the model is to determine your natural leadership style. To do this, Fiedler developed a scale called the Least Preferred Coworker (LPC).

To score yourself on this scale you have to describe the coworker with whom you least prefer to work.

What do you think about those people you least prefer working with?

Well, according to the model, the more favorably you rated the person you least prefer to work with the more relationship oriented you are. The less favorably you rated the person you least like working with the more task-oriented you are. So, in a nutshell:

High LPC = Relationship-oriented leader.

Low LPC = Task-oriented leader.

Task-oriented leaders tend to be good at organizing teams and projects and getting things done. Relationship-oriented leaders tend to be good at building good relationships and managing conflict to get things done.

(b) Situational Favorableness: The next step is to understand the favorableness of the situation you face. This is determined by how much control over the situation you have as a leader (situational control).

Determining situational favorableness is done by examining the following three factors:

(i) Leader-Member Relations: This factor measures how much your team trusts you. Greater trust increases the favorableness of the situation and less trust reduces it.

(ii) Task Structure: This factor measures the tasks that need to be performed. Are they clear and precise or vague? Vague tasks decrease the favorableness of the situation and concrete and clear tasks increase it.

(iii) Position Power: This is determined by your authority, meaning the power you have to reward or punish your subordinates. As you might expect, having more power increases the situational favorableness.

Limitations of Fiedler’s Contingency Model:

Fiedler’s Contingency Model is, therefore, a somewhat limited model for effective leadership.

(i) Notably, it’s not a useful guide for helping people become better leaders.

(ii) nor is it an efficient or necessarily flexible model for modern leadership in organisations, given the dynamic variety of situations which nowadays arise.

A further implication of Fiedler’s theory is potentially to require the replacement of leaders whose styles do not match situations, which from several viewpoints (legal, practical, ethical, etc.) would be simply unworkable in modern organisations.

Nevertheless, despite its limitations, Fiedler’s theory was an important contribution to leadership thinking, especially in reinforcing the now generally accepted views that:

(i) There is no single ideal way of behaving as a leader. and

(ii) Matching leadership behaviour (or style) to circumstances (or situations) – or vice-versa – is significant in effective leadership.

22. Explain the various nature and characteristics of communication. What do you understand by process of communication.


Explain the various nature and characteristics of communication. What are the essential elements of communication process.

Ans: The various nature and characteristics of communication are as follows:

(i) Information or Message: It is the subject matter of the communication. It may consist of facts, information, ideas, opinions, etc. In the absence of message, communication can not take place.

(ii) It Involves Minimum Two Persons: There must be at least two persons or two groups of people at two different ends. One end is the sender end and the other end is the receiver end.

(iii) Continuous Process: This process continues till the end of the organisation. During life of the organisation, it always continues in one form or other. Sometimes may be in the form or order, instruction, etc. and at other point of time in form of feed back, report etc.

(iv) Two-Way Process: The sender of the message must get back the necessary feedback or reaction of the receiver of the message. Without the response of the receiver, the whole process is incomplete.

(v) Communication is a Circular Process: Its process starts with the sender of the message and travelling through various stages completes with a feedback to communication from the recipients to the sender.

(vi) Media: There are a large number ways for communication. Conventional and non-conventional means may be considered as medium of this system. E-mail or fax may be non-conventional media.

(vii) Horizontal and Vertical: Communication may be horizontal as well as vertical. When communication takes place between two different levels i.e. top to bottom to top in the form of order and instruction is horizontal and when it takes between same levels, it is vertical.

(viii) Mutual Understanding and Good Relation: Communication builds up better understanding among all members of the organisation which also develop better relationship among them.

(ix) It may be Formal and Informal: Formal communication follows the formal channels provided in the organisational structure where as in informal communication there is definite channel for it.

The communication process starts when the sender or communication has a message to communicate to some other person known as receiver. It will be completed when the receiver gets information and sends feedback to the communicator. The essential elements of communication are described below:

(i) Sender or Communicator: The person who conveys the message is known as communicator or sender. By initiating the message, the communicator attempts to achieve understanding and change in the behaviour of the receiver.

(ii) Message: It is the subject matter of any communication. It may involve any fact, opinion or information. It must exist in the mind of the communicator if communication process is to be initiated.

The sender of information organises his idea into a series of symbols (words, signs, etc.) which, he feels, will communicate to the intended receiver or receivers. This is called encoding of message.

(iii) Communication Channel: The communicator has to choose the channel for sending the information. Communication channels are the media through which the message passes. It may be either formal or informal.

(iv) Receiver: The person who receives the message is called receiver. The communication process is incomplete without the existence of receiver of the message. It is the receiver who receives and tries to understand the message. This is called decoding of message.

(v) Feedback: Communication is completed when the communicator receives feedback information from the receiver. The feedback may reveal that the receiver has understood the message. It may also contain information about the action taken by the receiver on the basis of message sent by the communicator. Thus, feedback is the backbone of effective communication.

23. Enumerate the importance or purpose of communication in management. Discuss the various factors that effect the growth of communication.

Ans: The importance of communication in management are:

(i) Smooth and Unrestricted Running of the Enterprise: The smooth and unrestricted running of the enterprises depends on an effective system of communication. In any organisation, big or small, may it be public or private sector, communication plays a major role.

(ii) Quick Decision and Implementation: Communication helps the administration in arriving at vital decisions. In its absence, it may not be possible for the top administrators to come in closer contact with each other and discuss the important problems pertaining to the organisation.

(iii) Proper planning and Coordination: Good communication are essential to coordination. They are necessary upward downward and sideways, through all the levels of authority and advice for the transmission, interpretation and adoption of policies.

(iv) Maximum Production at Minimum Cost: If proper communication is arranged is an industry, owner and workers have cordial atmosphere so production will be continuous and workers will do work haughtily so that different types of loss like goods and time are not possible and maximum production is possible at minimum cost.

(v) Quick Decision and its Enforcement: Effective communication is required for the quick decision taking in big business of large scale as thoughts will be quickly transmitted and problems will be solved.

(vi) Incentive to Democratic Feeling: Effective communication which subordinates during discussion provides incentive to employees to feel democratic & proud.

(vii) Job satisfaction: The effective communication develops the feeling of mutual trust. Hence, the workers know what the management expects of them and what they are doing.

(viii) Communication as an Aid to Controlling: The remedial action is possible, only when the actual performance of people and the deviations from the standards are communicated to management for controlling process.

There are certain factors that can be held responsible for this growing importance of communication functions. The factors are discussed below:

(i) Large Size of Organisation: Modern organisations have grown in size. The structure are also huge and the levels of hierarchy are more. There are as many as thirteen to fifteen levels of hierarchy in many of them communication is of vital significance in directing the people.

(ii) Technological Advancement: The changes in technology are so frequent that subordinates often resent or support these changes. This affects the relationship between superior and subordinates vitally. If there is no proper communication between the two, the work suffers.

(iii) Growth of Trade Unions: After the world war – I, the association of workers and employees are coming into prominence as a direct force. The communication and support between management and union is essential for developing a mutual understanding and seeking the co-operation of trade unions.

(iv) Emphasis on Human Relations in Industry: Management’s main aim is to integrate people for encouraging them to perform to their capacity. The integration is a social process. It is very difficult to get work out of people until they are treated humanely. Communication helps a manager in developing their morale, changing attitudes and developing co-operation.

(v) Public Relations: The concept of social responsibility of business is gaining popularity very fast. The various sections of society mainly consists of the customers, the Government, suppliers and the public. Communication between them and organisation is necessary for putting the proper image of the organisation.

24. Discuss the method of communication.


Explain the channels of business communication.


How communication can be classified into several categories?


What are the various types of communication?

Ans: Communication may be classified into several categories on the following basis:

(i) On the basis of organisational structure or relationship:

(a) Formal communication.

(b) Informal communication or grapevine.

(ii) On the basis of flow or direction:

(a) Downward communication.

(b) Upward communication.

(c) Horizontal or lateral or steward communication.

(d) Diagonal communication.

(iii) On the basis of methods or media used or expression.

(a) Written communication.

(b) Oral communication 

(c) Gestural or non-verbal communication.

These categories of communication are illustrated in the following chart:

(i) On the basis of Organisational Structure or Relationship:

(a) Formal Communication: Formal communication is that which takes place through the formal channels of the organisation structure deliberately and consciously established by the management. It implies the flow of the information along the lines of authority formally established in the enterprise.

(b) Informal Communication or Grapevine: Communication arising out of all those channels of communication that fall outside the formal channels is known as informal communication or the grapevine. This communication is built around the social relationship of members of the organisation. Grapevine or informal communication does not follow lines of authority. It is implicit spontaneous, multidimensional and varied.

(ii) On the basis of Flow or Direction:

(a) Downward Communication: Downward communication means communication which flows from a superior to a subordinate. It follows the line of authority from the top to the bottom of the organisation hierarchy. Downward communication is a must in any organisation. The examples of downward communication are notices, circulars, instructions group meetings, etc.

(b) Upward Communication: Upward communication means the flow of information from the lower levels of the organisation to the higher leaves of authority. It passes from subordinate to superior as that from worker to foreman, from foreman to manager from manager to general manager and from general manager to the chief executive or the board of directors. It includes opinions, ideas, reports etc.

(c) Horizontal, Lateral or Sideward Communication: The transmission of information and understanding between people on the same level of organisation hierarchy is called the horizontal communication. This type of communication is also known as lateral or sideward or crosswise communication. Horizontal communication speeds up information and promotes mutual understanding.

(d) Diagonal Communication: The transfer of information between people who are neither is the same department nor on the same level of organisation hierarchy is called diagonal communication. This types of communication increases the organisational efficiency by seeding up information and cutting across departmental barriers. For example, when the Assistant Marketing Manager communicates with the account clerk directly, it is the case of diagonal communication.

(iii) On the basis of Media or Expression:

(a) Written Communication: Written communication implies transmission of message in black and white. It includes diagrams, pictures, graphs, etc. Reports, policies, rules, procedures, etc. have to be transmitted in writing for efficient running of the organisation. It provides a permanent record of communication for future reference. Written instructions are essential when the action called for is vital and complicated.

(b) Oral Communication: Oral or verbal communication implies the conveying of message. Through spoken words. It is face to face communication between individuals. In every organisation, a great deal of information is exchanged orally and it is generally preferred to written communication. It includes communication through telephone, intercom and public speech etc.

(c) Gestural or Non-Verbal Communication: Communication does not mean merely written or oral messages. It includes everything that may be used to convey meanings from one person to another. Expression through body parts is known as gestural or non-verbal communication. It includes facial expression, movement of lips, movements of hands, etc. For example- movement of lips or the wink of an eye or the wave of hands may convey more meaning that written or oral words.

25. Discuss some of the important barriers to communication. What are the Measures to Overcome the Barriers to Effective Communication?

Ans: Communication is the nerve system of an enterprise. It is very essential for the management to maintain an efficient flow of communication in all directions. But in practice, all messages are not effectively transmitted or received. Several obstructions, blockades, hurdles, stoppages or bottlenecks, called barriers to communication, distort the message and make communication ineffective.

Some of the important barriers to communication have discussed below:

(i) Physical Barriers: A communication is a two-way process, distance between the sender and the receiver of the message is an important barriers to communication. Noise and environmental factors also block communication.

(ii) Personal Barriers: Personal factors like different in judgement, social values, bias, attitude, etc. Widen the psychological distance between the communication and the communicatee. Credibility gap, i.e. inconsistency between what one says and what one does, also acts as a barrier to communication.

(iii) Semantic or Language Barriers: Difficulties in communication arise when the sender and the receiver of the message use words or symbols in different sense. The meaning intended by the sender may be quite different from the meaning followed by the sender may not at all be followed by the receiver.

(iv) Status Barriers (Superior-Subordinate Relationship): Status or position in the hierarchy of an organisation is one of the fundamental barriers that obstructs free flow of information. A superior may give only selected information to his subordinates so as to maintain status difference. Such selective communication is also known as filtering.

(v) Organisational Structure Barriers: Effective communication largely depends upon sound organisational structure. If the structure is complex involving several layers of management, the breakdown or distortion in communication will arise.

(vi) Barriers due to Inadequate Attention: Inadequate attention to the message makes communication less effective and the message is likely to be misunderstood. Inattention may arise because of over business of the communicatee or because of the message being contrary to his expectations and beliefs. The simple failure to read notices, minutes and reports is also a common feature.

(vii) Premature Evaluation: Some people have the tendency to form a judgement before listening to the entire message. This is known as premature evaluation. Premature evaluation distorts understanding and acts as a barrier to effective communication.

(viii) Emotion Attitude: Barriers may also arise due to emotional attitude because when emotions are strong, it is difficult to know the frame of mind of other persons or group. Emotional attitudes of both, the communicator as well as the communicatee, obstruct free flow of transmission and understanding of messages.

(ix) Resistance to Change: It is general tendency of human beings to stick to old and customary patterns of life. They may resist change to maintain status quo. This resistance to change creates an important obstacle to effective communication.

Measures to overcome the barriers to effective communication are:

(i) Clarify the ideas before communication: Any issue to be communicated to a subordinate should be clearly and completely studied and analyzed by the superior.

Moreover, it should be stated in such a manner that subordinate can easily understand it in the same sense in which the supervisor wants him to receive it.

(ii) Communicate According to the Need of Receiver: The level of understanding and education of the subordinates must be very clear to the manager. Manager should try to communicate according to their level.

(iii) Consult others before Communicating: It is desirable to involve others in developing a plan for communication. Consulting the subordinates before communicating the message helps to gain their ready acceptance and willing cooperation.

(iv) Be aware of Language, Tone and Content of Message: The language, tone and content of a message to be communicated are very important aspects of an effective communication. The language should be clear, simple and easily understandable. Similarly, the tone & content of the message should not provide any harm to the sentiments of listeners rather it should stimulate them to give response.

(v) Convey Things of Help and Value to Listeners: It is always better to know the needs and interests of the listeners before communicating the message. The response from the listeners is surely obtained if the message is related directly or indirectly to their needs or interests.

(vi) Ensure Proper Feedback: Proper feedback helps in improving the communication process. The sender should ask questions regarding the message conveyed and the receiver should be encouraged to respond to communication.

(vii) Communicate for Present as well as Future: In order to maintain consistency, the communication should aim at meeting both present as well as future requirements of an organisation.

(viii) Follow up Communications: Regular follow up and review of the instruction given to the subordinates help in removing difficulties in implementing the instructions.

(ix) Be a Good Listener: It has been well established that listening attentively solves more than half the problems in any organisation. Hence, to overcome all likely communication barriers a manager should try to be a good listener too.

26. Write short note on:

(i) Supervisory or operative level management.

Ans: This level consists mostly of supervisors, foremen and first line managers. The main role of these people are:

(a) Handing over jobs or responsibilities to a variety of workers. 

(b) Guidance towards day to day activities of the organization.

(c) These managers are directly responsible for quality and amount of production.

(d) They act as mediators in communicating the problems of workers and also undertake recommending solutions to higher levels of organization.

(e) They take stock of the machines and material required for the work to be done

(f) They are the role models for the workers as they are directly and constantly in touch with them.

(g) It is their duty to uphold discipline and decorum in the organization.

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