Themselves they do not create a motivating environment, but they influence and organization in a number of ways. Outputs of a motivating environment Commitment — of workers to goals and visions and their alignment to it.
Management should be able to communicate the consequences and benefits of sticking to the goals and vision of the organization. Efficiency and effectiveness — employees cannot be productive is they are not efficient and effective. If they cannot do the right thing in the right way you will never out-compete your rivals.
Discus the understanding of commitment of managers and employees. What are the formulas use for aligning commitment By Professor Coetzee Understanding commitment of managers and employees There is a need to understand certain fundamentals that are inherent and practiced by people in organisations. Level 1 Here people are taking note of what they are or being told.
At this level they know about it but this does not mean that they are going to do something about it. This is equivalent to doing nothing. We need to do something better than noting or knowing about it.
Being supportive is equivalent to being on favour of something which means it is acceptable and given a chance you will vote for it. Support is a positive attitude but is not good enough as a manager you need to go beyond just being in favour by contributing something. Level 3 Involvement is much stronger than support. There is participation especially in decision making that allows employees to feel that they are part of what has been or is being done.
Level 5 This is the highest level that is signified by high levels of commitment. Commitment allows employees to be part of or acquire ownership of any endeavour initiated. Aligned commitment of employees — this implies that all members are focused to attaining the same goals and are committed to attaining them. This also refers to employee knowledge, skills and abilities, methods and techniques applied to train, develop and to stimulate employee growth.
Managers should create a learning organisation and make an investment in the knowledge of employees. Information This refers to communication in an organisation, its concern with the dissemination of information in that organisation downwards, laterally, and upwards. The importance of the information and how effective the information is distributed and how well it is understood by the employees take an effort to inform people on what is happening not to hear about it in the press because it affects morale especially when things are bad.
Empowerment This is the extent to which employees can influence and partake in decision making, the enlargement of responsibilities and competences of employees.
Opportunities should be provided for employees to assist with the identification of problems and defining the problems and inviting their inputs in decisions on how work should be done. How work methods could be improved and the delegating of more comprehensive powers and responsibilities has a bearing of levels of commitment and motivation.
Rewards and Recognition This refers to the reward and recognition, philosophies, policies and systems and the way these are applied in the organization e. Shared values and Goals This refers to a combination of what to achieve here and how we do things here.
The shared goals have to be clearly formulated and communicated to employees and have to be clearly understood and accepted. There is no direct link between satisfaction and performance or productivity. Define conflict. What are the views of conflict Conflict refers to perceived incompatible differences resulting in some form of interference or opposition.
It is the clash that occurs when the goal-directed behaviour of one group blocks or thwarts the goals of the other. Because goals, preferences, and interests of stakeholder groups differ, conflict is inevitable in organisations.
This is an early view on conflict. The assumption is that conflict is bad and always has negative effects to an organisation. Conflict was associated with violence, destruction, and irrationality. The argument here was that conflict was natural and inevitable phenomenon in all organisations. It therefore has to be accepted. This group of theorists maintained that conflict should, however, be minimised i. They also conceded that there were times when conflict could actually be beneficial to an organisation.
This view dominated management thought from late s to the mid s. This approach, unlike the other views, maintains that conflict must actually be stimulated encouraged, inspired. The basic argument is that a harmonious, peaceful tranquil and cooperative organisation is prone to become static, apathetic, and non-responsive to needs for change and innovation. Management is, thus, encouraged to maintain a minimum level of conflict. This should be enough to stimulate ideas, innovations etc.
What is functional conflict? Functional conflict refers to conflict that supports the goals of an organisation. The following are the benefits that are derived from this type of conflict: a It fosters creativity b It is a major stimulant for change c It clarifies issues and goals d It enhances communication e It increases energy within a given unit. Define dysfunctional conflict. It is unfavourable because it has the following consequences: It tends to increase labour turnover emanating from dissatisfaction.
According to Pondy, all organizational conflict arises because vertical and horizontal differentiation leads to the establishment of different organizational units with different perceptions of how best to realise those goals. Other potential causes of conflict As organisations differentiate, each sub unit develops a desire for autonomy and begins to pursue goals and interests that it values over the goals of other subunits or organisation as a whole.
Differences in goals and Priorities Differences in departmental orientation affect the way each function or division views the world and cause each unit to pursue different goals that are often inconsistent or incompatible.
Once goals become incompatible, the potential for conflict arises because the goals of one subunit may thwart the ability of another to achieve its goals. Bureaucratic factors The way in which task relationships develop in organisations can also be a potential source of conflict.
Staff Function: advice and support the line function and include functions as personnel, accounting and marketing amongst many others. For example, production and sales can come into conflict, when, to achieve a goal of increased sales, the sales department asks manufacturing to respond quickly to customer — orders- an action that raises manufacturing costs. Competition for scarce resources When resources are scarce, strict choices about resource allocation have to be made, and functions have to compete for their share.
Other causes of conflict are o Individual differences o Structural relationships emanating from organisational structure — hierarchy. Each group also begins to define why the conflict is emerging and to analyse the events that have led up to it. Stakeholders begin to battle over the cause of the problem.
Each department closes ranks and develops a polarized us versus them mentality that puts the blame for the conflict squarely on the other subunit. As conflict escalates, cooperation between subunits falls and so does organizational effectiveness.
A very effective form of conflict is passive aggression frustrating the goals of the opposition by doing nothing. Once conflict is manifest, organizational effectiveness suffers because coordination and integration between managers and departments breakdown.
If a conflict is resolved before it gets to the manifest stage then the aftermath will promote good future working relationships.
If conflict is not resolved until late into the process, or is not resolved at all, the aftermath will sour future working relationships, and the organizational culture will be poisoned by permanently uncooperative relationships. Managerial Implications 1. Analyse the organizational structure to identify potential sources of conflict 2.
Change or redesign the structure to eliminate the potential for conflict whenever possible 3. If conflict cannot be eliminated, be prepared to intervene quickly and early in the conflict to find a solution 4.
Choose a way of managing the conflict that matches the source of the conflict 5. Always try to achieve conflict aftermath so that cooperative attitudes can be maintained in the organisation over time. Discus conflict resolving methods. According to Robin, there are five 5 conflict resolution styles, namely, confrontation, compromise, collaboration, accommodation, and avoidance.
This approach directly addresses the conflict. A confrontational approach usually involves high emotional levels, clear clarity of goals, weak relationship, and low concern for formalities or fear for punishment, moderate concerns for traditions and moderate self-concept. This approach is aimed at solving the problem and could be ideal where conflict is caused by semantic barriers.
It may, however, not suitable for conflict from individual differences. It can be used to get quick resolution, with the prevention of further escalation.
Compromise usually involves high to moderate emotional levels, high to low skills levels, moderate clarity of both goals, moderate status of relationship, win-win attitude toward authority, moderate concern for traditions and moderate fear of punishment.
In this case, conflicts are resolved amicably and no one feels they have lost anything. The conflicting parties sit on the same side working together to achieve a common goal.
Collaboration involves moderate to high skills levels, clear clarity of both goals, strong status of relationship, win-win attitude toward authority, low concern for formalities and traditions, and high self-concept.
This approach is characterised by suppressed emotional levels, high to low levels of parties, moderate clarity of both goals a lose-win attitude towards authority, high concern for formalities, a moderate self concept, and a high fear of punishment. There is a win-lose situation.
One party wins whilst the other party loses. This is not a very healthy method as it leaves ill feelings which may develop into a worse conflict. Define change and change management. Change: In the context of an organisation change is the implementation of new procedures or technologies intended to realign an organisation with relentless changing demands of its business environment, or to capitalize on business opportunities.
Modern day environment is highly characterised by rapid change and since the business organisation is a sub-system of the environment, there is need to constantly revise organisational goals and policies to ensure that they are kept abreast with environmental changes.
Change Management: Refers to the proactive anticipation of change and being prepared for the change in order to cope with, introduce and sustain transformation. It looks at the way managers adjust their plans, activities etc to cope with the turbulent environment. Why is planned change necessary? Planned change occurs when an organisation deliberately implement a new policy or goal, or a change in operating philosophy, climate or style.
Employees and management alike have to be prepared to surrender familiar work habits for new policies, procedures and expectations. This contrasts sharply with the reactive approach to management of change where changes are largely unscheduled and random.
Failure to change may give rise to failure to keep in touch with the environment, and this may translate to loss of market share and hence sales revenue. Changes offer new opportunities for survival of the organisation e. Needs constant review to ensure that it is abreast with environmental changes.
Give factors and reasons why people resist change. There are two major factors in which resistance is a function in organisations a Rational. Resistance can occur where an individual's own rational assessment of change outcomes differ with those of management b Non-Rational. Individual reaction to change is also a function of predispositions and preferences not necessarily based on a rational assessment of change c Political. Resistance is also influenced by political factors such as favoritism or "point scoring" against those initiating the change.
Poor management styles also contribute to resistance. Why People Resist Change Organisational members are usually resistant to the implementation of changes. Various reasons have been advanced. In an organizational setting, resistance is an expression of reservation which normally arises as a response or reaction to change.
How can an organisation overcome resistance to change? An organisation can overcome resistance to change use of the following criteria:- a Education and Communication. Explain the need and logic for change to individuals, groups, etc. Benefits also need to be explained. Ensure everyone is involved to make fell part of the process, especially in initial stages. Offer re-training, time off, emotional support, and understanding during period of change.
This will minimise negative effects on those affected by the change. Interact with potential resistors; establish their interests, compromise, solicit for support.
Entails giving key position to resistors to minimize resistance. Threaten job loss or transfer, lack of promotion etc. The change agent must be competent and capable of minimising resistance. Discus the change process The basic change management process includes three steps to help a program achieve its goal. This is the implementation of the actual systems and operational mechanisms o This is the most painful stage of change. Conclusion The "change process" is usually a challenging one.
And interesting aspect about organisational culture is that some or most of its characteristics may be largely unstated and in some instances individual organisational members may even be unaware of these. The organisational culture is therefore not an overnight thing — it is cultivated over a period of time by management, learnt by employees and subsequently passed over to new employees.
It also tends to changes over time. Culture is indeed not entirely positive phenomenon. For instance, the establishment of sub-cultures within organisations may in fact create politics which may cause organisational instabilities and ineffectiveness.
What are the sources of Organisational Culture? What are the implications of organisational culture to management? Organisational culture is created from the following 1 core values, 2 Organisational Socialisation, 3 Rites, and 4 legends.
These are the work-related values of the society in which the organisation operates. The core values could not be further sub-divided into the following: i Power Distance. This is the extent to which individuals accept the unequal distribution of power. Cases if high power distance are epitomised by autocratic management styles.
This, on the other hand, is the process by organisation bring new members into their culture. Strong cultures tend to be characterised by well-developed methods of selecting and moulding employees into the organisation. Here a combination of modelling, coaching, teaching and enforcement by managers tends to be an effective means of socialisation. Thus, socialisation is supposed by organisation - wide norms and maybe both explicit and formal and implicit and informal.
Refers to an elaborate, well planned expression carried out through an event. Performance driven organisations tend to use a number of rites of enhancement to: o Publicly recognise individuals for outstanding performance.
A legend is a story of some significant event, typically based on historical fact but exaggerated by functional details. The implications of organisational culture to management Managers constantly need to ascertain which organisation cultural attributes needs to be preserved. In this respect he should: o Set the example.
This they achieve through the formulation of policies in their day to day activities, interactions, sentiments, and norms, as perceived throughout the organisation.
They must attempt to create a sense of unity without blind conformity and blend individuality with group and organisational concerns. State and explain at least five strategies that can be used to effectively manage workforce diversity? A diverse workforce can be well managed if there are well planned strategies in place in and organization. If workforce diversity is managed in an effective way, there is a potential for an organization of reaping organizational benefits.
Effectively managed organizations with diverse workforce have effective competitive edge as a diverse group of employees is perceived to be more creative and efficient in problem solving as compared to a homogeneous group.
A benefit of a diverse workforce is the ability to tap into the many talents which employees from different backgrounds, perspectives, abilities, and disabilities bring to the workplace.
Judith Lindenberger and Marian Stoltz-Loike say: "Diversity is about our relatedness, our connectedness, our interactions, where the lines cross. Robinson and Marry Coulter There are many different innovative strategies that organizations have adopted to manage diversity.
An organisation must have policies which has a holistic approach to diversity. Workforce diversity can provide tremendous benefits if the organisation has a workforce diversity policy which is fully implemented. This will help to improve morale, outside-the-box thinking, greater teamwork, and an atmosphere of mutual understanding and respect. The challenge that diversity poses, therefore, is enabling your managers to capitalize on the mixture of genders, cultural backgrounds, ages, and lifestyles to respond to business opportunities more rapidly and creatively.
Walk the talk. Implementation process is vital as this will show the true picture of the organisation. When implementing, an organisation should at all levels remove artificial barriers to the success of the policies. Diversity must also be retained at all levels. Training programmes are needed — the training programmes must emphasise diverse ideas. When the organisation encourages workforce to work in teams this will create a favourable environment for people from different nations, cultures, gender, age groups etc to work together.
Organisational goals will be effectively achieved. Find someone from a different background, a different race, or a different gender. Find someone who thinks differently than you do. Talent is gender blind. Talent has nothing to th do with dialects, whether they are Hispanic, Irish or Polish, or Chinese.
F and Freeman, E. An organisation must keep lines of communication open. People from different cultures, nations, religions have different values and norms.
This will create a favourable working environment. If you focus on building a well-integrated multi-cultural team, you will find other ideas to make the team work well together. As a manager one should frequently evaluate if workforce is working together in harmony to achieve the organisational goals. Organisational assessments must be conducted in order to be in the know of the work environment. This will help the manager to keep doing what is good for diversity and correct what is not working.
If you and your team work together, and learn from one another, you will discover the real synergy of bringing your collective knowledge and skill together to achieve a goal, and your company environment will be better for the effort. Welcome to the global economy! Organisations around the world have realised that diversity within an organisation is not a negative aspect, rather can facilitate organisational stalk for glory. It reflects the good management. Define Ethics. Discus the ethical approaches.
Ethics are the moral that govern the actions and decisions of an organisation or group. It therefore follows that values are fundamental to ethics Ethics can also be defined as the process of clarifying what constitutes human welfare and the kinds of decisions and behaviours necessary to promote it.
This approach judges the effect of decisions and behaviours on others, with the primary objective of providing the greatest number of people. It focuses on actions or behaviours as opposed to motives. In this case the manager should consider the effect of the alternative actions on those who will be affected, then select the alternative benefiting the greatest number of people.
The manager acknowledges that this alternative may help some but harm others, but for as long as potentially positive results outweigh negative results, the decision is considered ethical. A good business example could be the merit pay system, whereby employees are paid different rates. The ethics lies in the fact that those who perform best receive the greatest reward. The utilitarian approach is based on the following standards: o Organisational goals e.
Maximising profits provides the greatest good for the greatest number of people. Encourages efficiency and productivity. It is consistent with profit maximisation and hence easier for management to understand.
It is impossible to clarify all important variables. May result in biased resource allocation, especially when those affected are not represented. Can result in ignoring rights of some who are affected to achieve utilitarian outcomes.
This view maintains that managerial decisions should be consistent with fundamental liberties and privileges e. These privileges are usually governed by the constitution or the bill of rights.
The following are some of the moral rights that should be taken into cognisance in managerial decision making. Life and Safety, truthfulness, privacy, freedom of conscience, private property etc. This judges decisions and behaviours by their consistency with an equitable, fair and impartial distribution of benefits rewards and cost among individuals and groups.
The justice approach is subdivided into the following: a Distributive Justice Principle: Individuals who are similar in relevant respects should be treated equitably. Conversely, individuals who differ in respects should be treated differently in proportion to the differences between them. Organisations and individuals dealing with a company expect certain standards of ethical behaviour from the company representatives they deal with, but they also expect similar standards from the company as a whole.
There is a view that the best managed companies are those that are aware of their responsibilities towards all stakeholders and society as a whole. In other words, the best-managed companies show a large degree of corporate social responsibility CSR.
Business in the Community, a voluntary group of UK companies working for the application of responsible business practices, has set out five principles that companies should apply: a to treat employees fairly and with respect; b to operate in an ethical way and with integrity; c to respect basic human rights; d to sustain the environment for future generations; e To be a responsible neighbour in their communities. A multinational mining company operating in less-developed economies might give money to local tribal communities for the purpose of preserving them.
At least one US company sets aside one day each year for its employees to do voluntary work in their local community. However, there are differing views about the significance of CSR for companies. The document then comments, interestingly, that these responsibilities can be divided into two distinct elements: 1.
The potential benefits of CSR for companies There are differing views about the extent to which companies benefit commercially from CSR policies. The key findings of the report were as follows: Some studies have found that companies with active CSR policies benefited financially.
The evidence is not conclusive but it points to benefits in areas such as corporate reputation, consumer acceptance, employee loyalty and environmental management. What are the views of Corporate Social Responsibility? Give four dimensions of corporate social responsibility. There are two views to Corporate Social Responsibility which are the classical view and the socio economic view.
It proposed that the only social responsibility of an organisation is to maximise profits. It argues that managers are the owners of the business therefore they should not be socially responsible for the costs of social responsibility. Is it the consumers in raised prices, is it the employees in lower wages or is it the shareholders in lower returns. In most cases it is the owners who lose out therefore managers would not be socially responsible. It argues that business has an obligation towards the society that creates and supports it.
If the business is socially responsible, it maximises profits in the long run as a result of a good image and acceptance by the society. Business should therefore play an activist role by supporting charitable organisations, creating employment, and protecting the environment.
It also looks at how resources for the production services are distributed in the system. The responsibility is said to be primary because without financial viability the other responsibilities will not be there. Some issues of concern here are economic development, technological progress, profits generation, employment, wages and benefits, pollution and maintaining competition.
Legal dimension refers to obeying laws and regulations established by government to set minimum standards of acceptable behaviour. Civil laws - defines the rights of individuals and organisations. The laws are enforced by individuals generally in courts. Criminal laws — prohibits specific actions and imposes penalty. Criminal laws are enforced by the state. Most laws affecting businesses fall into one of the following categories. The right to have information.
Work place safety. This encompasses the more general responsibility to do what is right and avoid harm. These are behaviours and activities that are expected or prohibited by the organisation members, the community and society. These are not codified into law. They include serving stakeholder interest and addressing social concerns. The ethical dimension interacts with the law category pushing expansion of legal responsibilities and placing expectations on business persons to function at a level above the law.
Philanthropic means intervening in the lives of others for their benefit not merely for own. Since this is voluntary, failure to be philanthropic is considered to be ethical. Public opinion now supports businesses pursuing economic and social goals.
Socially responsible companies tend to have more secured long term profits. Businesses should be socially responsible because responsible actions are the right thing to do. Businesses can create a favourable public image by pursuing social goals. Business involvement can help solve difficult social problems. By becoming socially responsible, businesses can expect less government regulation. Businesses have a lot of power and equally large amount of responsibility is needed to balance against that power.
Businesses have the resources to support public and charitable projects that need assistance. Businesses should address social problems before they become serious and costly to correct. Business is being socially responsible only when it pursues its economic interests. Many socially responsible actions do not cover their costs and someone must pay those costs. Businesses have a lot of power already and if they pursue social goals they will have even more.
There are no direct lines of accountability for social actors. Those of us who spend our time marshalling the case for would do well to spend a little time hearing the case against, and considering what should be the response. Of course, one of the challenges in considering cases "for" and "against" CSR is the wide variety of definitions of CSR that people use.
We assume here we are talking about responsibility in how the company carries out its core function - not simply about companies giving money away to charity. Below are some of the key arguments most often used against CSR and some responses. We can't afford to take our eye off the ball - we have to focus on core business 4 It's the responsibility of the politicians to deal with all this stuff.
It's not our role to get involved 5 I have no time for this. I've got to get out and sell more to make our profit line. Corporations don't really care - they're just out to screw the poor and the environment to make their obscene profits 1 Businesses are owned by their shareholders - money spent on CSR by managers is theft of the rightful property of the owners This is the voice of the laisser-faire s, still being given powerful voice by advocates such as Elaine Sternberg.
Sternberg argues that there is a human rights case against CSR, which is that a stakeholder approach to management deprives shareholders of their property rights. Not all aspects of CSR are guilty of this, however. Sternberg states that ordinary decency, honesty and fairness should be expected of any corporation.
Response: In the first instance, this case strongly depends on the model of social responsibility adopted by the business being a philanthropic one. The starting point assumption is that, through CSR, corporations simply get to "give away" money which rightfully belongs to other people. If CSR is seen as a process by which the business manages its relationships with a variety of influential stakeholders who can have a real influence on its licence to operate, the business case becomes immediately apparent.
CSR is about building relationships with customers, about attracting and retaining talented staff, about managing risk, and about assuring reputation. The market capitalisation of a company often far exceeds the "property" value of the company.
Only a fool would run risks with a company's reputation when it is so large a part of what the shares represent. In any case, if shareholders are to be accorded full property rights one would expect to see the balancing feature of responsibility for the actions taken by the enterprises they often fleetingly own. Since most shareholders remain completely unaware of any such responsibility, it can only fall to the management - the "controlling mind" of the company, to take that responsibility on.
When surveys are carried out of the "Most Respected Business Leaders" you will often find names there, such as Bill Gates of Microsoft, a few years ago Jack Welch of GE, who have not achieved their world class status by playing nice.
Welch is still remembered for the brutal downsizing he led his business through, and for the environmental pollution incidents and prosecutions. Microsoft has had one of the highest profile cases of bullying market dominance of recent times - and Gates has been able to achieve the financial status where he can choose to give lots of money away by being ruthless in business. Doesn't that go to prove that "real men don't do CSR"?! Response: There is no denying the force of this argument.
We do not live in a Disney world where virtue is always seen to be rewarded, and that's a fact. Nevertheless, the picture is not as simple as the above argument makes out. In the first instance, very few businesses operate in a black or white framework, where they are either wholly virtuous or wholly without redemption. There are many aspects in the way Jack Welch restructured General Electric which would play to the kind of agenda recognisable to advocates of social responsibility - in particular that of employee empowerment.
Welch has gone on record as saying that he believes the time has passed when making a profit and paying taxes was all that a company had to worry about. And since Welch moved on, General Electric has been busy catching up big time with its EcoMagination initiative.
Also, many of the leading companies with regard to their social responsibility are equally successful companies. The same "Most Respected" surveys will usually provide other names at, or near, the top such as IBM and Motorola - and these are companies that have been much more strongly associated with the CSR movement.
Coca Cola achieved its place partially because of its profile in social responsibility. When still in charge, Sir John Browne of BP was widely respected as having led BP into a strong position as one of the world's leading companies whilst also showing environmental leadership. The events that latterly tarnished that reputation simply show that skill in execution is key to success - but even those events don't disprove the fact that success in business and commitment to responsibility can go hand in hand.
We can't afford to take our eye off the ball - we have to focus on core business. It's all very well for the very big companies with lots of resources at their disposal. For those fighting for survival, it's a very different picture. You can't go spending money on unnecessary frills when you're laying people off and morale is rock bottom.
And the odd bit of employee volunteering won't make any difference to our people when they feel cynical and negative about how the company operates. Response: Managing your social responsibility is like any other aspect of managing your business. You can do it well, or you can do it badly. Well managed CSR supports the business objectives of the company, builds relationships with key stakeholders whose opinion will be most valuable when times are hard, and should reduce business costs and maximise its effectiveness.
And it doesn't matter if employment tribunals occur as a result of my poor employment practices. I can keep making things just the way I always have.
Even if an organisation is functioning in a dynamic environment, plans can help in determining objectives, so that work can be done in a systematic order Frese, Mumford, and Gibson, This will enable managers to forecast results that have to be achieved.
Management of contingencies Planning will help to ensure that future contingencies can be managed, when or if they arise. With the dynamic environment in which an organisation runs, there are high chances of risks.
Making plans can aid in proper management of such uncertainties. Optimally utilising resources 2. Planning in organisations is vital as they have limited access to resources.
Performing this management function will enable them to use these resources in an optimal manner so that there is less wastage and high productivity in achieving goals.
To learn more, view our Privacy Policy. To browse Academia. Log in with Facebook Log in with Google. Remember me on this computer. Enter the email address you signed up with and we'll email you a reset link. Need an account? Click here to sign up. Download Free PDF. Thirukk Raghuveer. A short summary of this paper. Download Download PDF. Translate PDF. The principles of scientific management differ from the ordinary principles. Give your comments. Q2 Discuss the new challenges and tasks of management.
Explain the contributions of Taylor and Henry Feyol in modern management thoughts. Q3 Define leadership. Q4 Are strategies and policies as important in a non business enterprise such as a lobour union, State Department, a hospital or a city fire department as they are in a business? Why and how? Q5 Your Company offers you a promotion to a position in a location your family does not like. Make the necessary assumptions and then state how and what you would decide.
Assignment-B Q1 What are the major limitations of Planning? What action can be taken to make planning effective? Q3 Accurate appraisal of performance is difficult. In the light of this discuss the problems involved in appraising an employee. It supplies filters directly to automobile manufacturers in bulk quantity besides supplying to the market for replacement. One day, two engineers from a reputed engineering consultant visited the factory.
They inspected the production facilities and workshop. They came on the next two days also. During their visit, the atmosphere in the workshop was tense as the engineers made several enquiries from the foreman of the workshop. Three days after the last visit of these engineers, a notice was put up asking the workers to shut off motors and lights during the lunch break. During the following week, a rumour spread that the company was not able to discharge its contractual commitments because of the technical defects in the plant.
Therefore, a big order was likely to be cancelled resulting into closure of the plant for some time. This period became quite disturbed both for workers as well as for the foreman. The foreman himself being ignorant in the matter had little to say. Thus, rumours spread further about the likely layoff and retrenchment of some workers.
The workers became nervous and productivity dropped. They approached their union leaders about the possible layoff and retrenchment. The union leaders criticised the approach of the management and threatened strike if any worker was laid off or retrenched On getting this news of lower productivity and threat of strike, the production manager visited the plant and talked to the foreman and some of the senior workers.
One of the office bearers of the union questioned angrily as to when some of them are to be thrown out.
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