Sunday, 9 October 2016

Evolution of Management Thought

Management is a recent discipline and it draws from the disciplines of Economics, Psychology, Sociology, Anthropology, etc. However, as we have seen earlier, management has evolved as an independent discipline.


  • Scientific management theory : The focus of this thought is increase in productivity and efficiency through applying scientific methods on the shop floor or workplace. It tries to identify one best way of doing a job; however, emphasizes on worker’s cooperation, management-labor relations and developing workers and motivating. However, the focus is on shop floor efficiency through scientific methods and even motivation is proposed to be executed through piece rate system or paying based on the number of pieces of work produced.
  • Operational management theory : This thought was led by Henri Fayol. The thought identified six groups of activities in an organisation, i.e., technical, commercial, financial, security, accounting, and managerial. He recognized the need for teaching management and identified 14 principles in 1916 which enabled the management to grow as a discipline and is therefore often called the ‘father of modern management’.
  • Behavioral science theory : The thought was originated by Vilfredo Pareto in 1896, and he researched on organisation and management relationship. Later, Hugo Munsterberg applied psychology to increase industrial production in 1912 and around the same time, Walter Dill Scott applied psychology to advertising, marketing, and personnel in 1910 and 1911. But it was Elton Mayo and F.J Roethlisberger who made an impact on the behavioral science theory through their Hawthorne experiments in Western Electric Company in 1933. These experiments proved that good working relationship with the supervisor and colleagues and the idea of challenge in the job accounted for higher productivity. Challenge is created through setting high goals which cannot be normally achieved but which can be achieved with a little additional effort. These experiments brought to fore the importance of behavioral science in management. Extending the idea sometime in 1946 and 1947, Max Weber propounded the theory of bureaucracy.
  • Systems theory : Though the systems theory can be traced to biology, where we have cardiovascular system, nervous system, etc which are fairly independent yet interdependent, it was Chester Barnard who extended this into management area through his writing ‘Functions of the Executive’ in 1938. In systems theory, we perceive that organisations have a number of fairly independent systems such as purchase system, operations system, marketing system, financial system, etc. The working of these are independent, but it has to be integrated by the manager. This theory, perhaps, brings the idea of integration as a key component of management.

Introduction to Management and Management Process

During the prehistoric days of man living on hunting, life was rather simple but then too, men hunted and women tended for food. They chose a leader who could lead them into hunting, and they chose someone to make their hunting equipment sharp and precise. They stored food for the lean days and sought new places to find food.

At a very rudimentary level, this was planning, specialization, and division of labor, all of which are part of management. As man progressed, his activities became more complex and multi functional teams came into being. His management techniques, perhaps, became more complex too, but its fundamental remained the same.

According to Harold Koontz, “Management is an art of getting things done through and with people in formally organised groups. It is an art of creating an environment in which people can perform as individuals and can co-operate towards the attainment of group goals”. According to F.W. Taylor, “Management is an art of knowing what to do, when to do, and see that it is done in the best and cheapest way”.

Importance of Management

  • It helps in achieving group goals
  • Optimum utilization of resources
  • Reduces costs
  • Establishes sound organisation
  • Establishes equilibrium
  • Essentials for prosperity of society

Sunday, 2 October 2016

Changing Role of Human Resource in India

In the previous post we have discussed about HRM in India. Let us now look at the changing role of HR in India.

The role of HR has evolved from a compliance checking body to a strategic partner to the organization. Thei role is not limited to meet the changing the market demands, attract high performing talent, evaluating performance, retaining top talent and ensuring that employees are motivated adnd engaged.

They are the change agents, counselors, motivators, trainers and the spokeman of the employees.

HRM Challenges :

Upgrading Skill Set : One of the challenges faced by HR is upgrading the skill set of the employees through training and development.

Changing BusinessEvery little challenge in the business or market bring along a change in the workforce. This poses a challenge to HR to attract the right talent who meet the international work standard, to create high performing teams, to create faster communication patterns, to device innovative employee recognition patterns and to ensure that top talent is retained.

Managing Technology : All organizations want to be technologically oriented. They want their employees to quickly adapt and learn the new technologies. HR personnel have to attract the right people with required knowledge and train the employees, motivate them to learn, absorb and come out of their comfort zones.

Developing Accountability : With the advent of Six Sigma methodologies, tolerance for mistakes are lowered. It is hard to train people to shoulder responsibility.

Managing Workforce Stress and Employment Relations : HR is the face of the organization. If HR is not emphatic towards its workforce, it is not helping the organization.

Managing Inter-functional Conflict : With organization restructuring becoming more common, HR has to reduce the inter-functional conflicts.

Managing Workplace Diversity : Organizations hire as well as depend on people from different countries, cultures and ethnicity. To manage such a workforce with diverse physiological and psychological influences is also a challenge for HR.

Progressive HR Policies 

Today employers are increasingly realizing the importance of the role of HR. Some organizations change their policies to retain employees. MNCs provide flexible options like an extended maternity leave, sabbatical from corporate life, working form a different city so that female employees, at various life stages, benefit from these policies.

Entrepreneurship by Employees 

Organizations encourage 'entrepreneurship' among their employees so that people with ideas that could become an asset. HRM has a leading role in Corporate Social Responsibility (CSR) activities at all levels. Corporate presentation and regular newsletters are tools used by HR to keep the employees energized and interested towards CSR activities. Over the decade, India's large manpower has played a crucial role in its economic success. Indeed, the success of Indian organizations is based on human skill rather than superior raw material or technology. The synergy between the strategic planning and innovative HRM practices will be pivotal as India embarks on a global journey.

Globalization and Its Impact on HR :

Business have a tendency to expand to newer markets and a well trained and high performing workforce attracts new business, brings in new investments and employment and in turn generate additional training and experience.

Technology : to use and maintain the organization's Human Resource Information System.

Trends in the nature of work : technological and globalization are producing change in the nature of jobs. Following are a few trends:

  • Increase use of part-time employees
  • IT and computers have allowed organizations to relocate work to locations with lower wages
A Service Society
  • A shift from manufacturing jobs to service jobs.
  • new types of knowledge workers and new HRM methods to manage them
Knowledge Work and Human Capital :
  • Growing emphasis on human capital, their training and development
  • Companies are relying more on employees creativity and skills.

Other Trends affecting HRM :

  • Equal employment opportunities that bar discrimination based on any race, age, sex etc.
  • Mandated health benefits, occupational  safety and health requirements
  • Union-management relations

Workforce Diversity :

Managing diversity means establishing a heterogeneous workforce to perform to its potential where no members have an advantage or disadvantage. Young, skillful employees occupy positions of importance. HRM has to listen to senior employees to draw from their experience and devise appropriate programmes to attract and retain young brains.



Previous Topic : Human Resource Management in India

Human Resource Management in India

After Indian government liberalized the economy in 1991 and allowed foreign competition, domestic organizations were forced to raise the bar on their products and services. More private organizations emerged bringing along the global HR practices.
The critical HR issues today are performance management, employee motivation and retention, career and succession planning.

HRM in India :
The economic liberalization created a massive change in HRM perspective in India forcing organizations to think and implement innovative measures to attract and retain employees.
Indian workforce is globally acknowledged for its talent. However, there is an equally strong cultural impact on hiring practices, compensation standards, benefits and statutory benefits etc. Listed below are a few differentiators that impact HRM in Indian organizations :

  • Indian culture is deeply rooted in its societal and collectivistic values whereby there is a natural urge to collaborate at workplace, work in teams with ease.
  • The natural ability to work hard and long hours, perseverance and the need to earn money impacts the way the work is organized in Indian Organizations. There is an overwhelming sense of Service that manifests itself in the workplace.
  • Indians are quick at accepting diverse views and ideas as a result of their diverse culture.
  • Tolerance for ambiguity and uncertainty is however low in Indian workforce. Hence there is a need to establish boundaries, roles and responsibilities, authority.
  • Availability of large workforce of different knowledge and skills enable them to undertake different kinds of work starting from BPO and moving up the value curve to KPO.
  • Availability of large employable individuals, compensation and benefit costs continue to provide a competitive advantage for India.
  • There is a lot more scope for socializing that exists in the Indian organizations.
HRM in India is not well-researched. There is a lot of dependency on developed countries to emulate best practices in the way people are hired and managed. Today Indian organizations have their own HR strategies. Work more and earn more is a common philosophy at Indian workplace. Work is revered and respected. There is an increased focus on cash in hand rather perks and benefits.

Classification of Communication Channels

In the previous posts we have written about two broad types of communication - verbal and non-verbal. Based on this we could classify the communication channels into :

  • Two-way, face-to-face channels : here the communication is oral and non-verbal. Immediate feedback is possible and the communication is of personalized nature. Ex: meetings, gatherings or video-conferencing.
    • Advantages:
      • Non-verbal communication such as gestures, facial expressions and tone of voice can be used to make the communication more effective.
      • Immediate feedback is possible with questions, clarification or suggestions.
      • The personal quality of communication is enhanced.
    • Disadvantages :
      • Getting people together for a fact-to-face meeting is difficult.
      • Personal meeting is time consuming and expensive especially when people are separated by distance.
  • Two-way, but not face-to-face channels : With technology, communication can now be two way without being face-to-face. Ex :Teleconferencing and E-mail communication.  Due to lack of face-to-face contact, the personal nature of meetings is reduced.  Also communication oral without non-verbal cues.
  • One-way, face-to-face channels : All forms of written communication such as letters, reports, memos, notices, e-mails etc. No instantaneous feedback, largely one-way communication.

Selecting the Appropriate Channel :

Though there is no hard and fast rule to select an appropriate channel of communication, the following guidelines would be useful :
  • When trying to solve problems or improve relations, oral face-to-face communication is most effective.
  • When visual presentation for explaining an idea is required, oral face-to-fact is better.
  • To command a high degree of control over receiver or when there is a need for immediate feedback, oral face-to-face works best.
  • When the tone of the communication needs to be more formal, written communication is more appropriate.
  • To explain complex ideas in detail, written communication is more preferred.
  • To communicate large amount of information, written communication must be preferred.
  • Written communication is also appropriate when you want to keep a record of the communication.
Comparison of Oral and Written Communication Channels :

Charateristic Oral Communication Written Communication
Interactivity High Low
Level of Feedback High Low
Formal Nature Low High
Personal Nature High Low
Permanent Nature Low High
Cost High Low
Control over Receiver High Low
Effectiveness for Complex Messages Low High
Effectiveness for Detailed Messages Low High

Characteristics of Non-Verbal Communication

The characteristics of non-verbal communication are :

  • Non-verbal communication cannot be avoided : Verbal communication can be avoided by refusing to speak but Non-verbal communication cannot be avoided. It is not always intentional. Sometimes silence, other actions like nodding head or yawning any itself communicate a message.
  • Non-verbal communication is powerful : Non-verbal communication helps us form first impressions which generally tend to last longer.
  • Non-verbal communication is ambiguous : using precise words can convey a clear message but Non-verbal communication is not always clear. Ex: sitting in a relaxed posture may be a signal of boredom or fatigue.
  • Non-verbal communication cannot express all messages : Non-verbal communication can only express a person's attitude, level of interest, feelings but their ideas can only be expressed orally or in written form.
  • Non-verbal communication varies across cultures : certain types of non-verbal behavior is universal but others may be different in different countries. Ex: handshake, while physical contact is not common in some countries;bowing to your superiors as a mark of respect is common in Japan but might not be in other countries. 

Classification of non-verbal communication :

Non-verbal communication can employ audio and video signals. Ex: audio - a blaring siren, visual signals - drawings, charts graphs etc. These can be used to overcome language barriers.
Non-verbal communication is not only synonymous with body-language. It includes several aspects like :

Body Language Communication Terminology
Body Language Kinesics
Touching Haptics
Personal space and distance Proxemics
Use of time Chronemics
Toen of Voice Paralanguage
Physical environment Physical context

Kinesics : 
  • Facial expressions : can convey feelings of sadness, surprise, happiness and anger.
  • Eye movements : eye movements such as wide open pupils cann indicate  surprise, excitement or fear. Direct eye contact indicates intensity and interest, while lack of it can convey guilt and nervousness.
  • Gestures : movement of hands while giving a presentation can indicate level of involvement, where as hands in your pocket can mean rude or casual.
  • Head movements : like nodding your head can indicate that the message has been received.
  • Posture : carriage or attitude can indicate feelings. An erect posture while sitting may convey that you are attentive while a relaxed position can indicate various things such as boredom, tiredness etc.
  • Physical appearance : the outward appearance of a person can indicate a lot a about the person. Jewelry, make-up or sticking to ca dress code can tell a lot about a person.
Haptics : communication through touch. Through touch we can covey feeling like affection, assuarance, famialiarity, comfort, sympathy and other emotions. Touchin is used for following :
  • Working : hair dresers, security staff, doctors etc. touch people in the course of work
  • Greeting : using handshakes to greet people
  • Establishing friendships : a freindly pat
  • Guiding
  • Managing interaction
Proxemics : derived from the word 'proximity' or closeness. The space we keep from people is also part of non-verbal communication. Different types of spaces are :
  • Intimate space : our inner most circle, family and close freinds
  • Personal space : other freinds, colleagues or co-workers
  • Social and public space : official or workplace relations
In a business context :
  • Fixed space : physical features of work environment such as seating arrangement, furniture etc.
  • Semi-fixed space : some features that can be changed like the seating arrangement
Chronemics : Study of usage of time. Includes our attitude towards punctuality and willingness to wait.

Paralanguage : means 'similar to'. This is the closest to verbal communication. This includes tone of voice.

Physical Context : is the physical environment within which we communicate. This includes :
  • Color and layout : colors have symbolic meaning and association with feelings. Black and Grey are associated with mourning and death while Yellow and Green can convey positive feelings.
  • Design : types of chairs, desk or carpets etc.
  • Space management  : arrangement of work spaces of people who work together. It can influence communication.
  • Location  : while giving a speech, a podium is optimum for communication. Similarly, office location in the financial district can indicate success.
  • Distance : physical distance between people communicating also influences the nature of communication.

Sunday, 25 September 2016

Types and Channels of Communication

There is a saying, 'the medium is the message', which tells a lot about the channel we select for the communication.

Types of communication :

  1. Verbal communication : occurs with the help of words, opportunity for personal contact and two-way flow of information. These are two types :
    1. Oral communication : a speaker interacts verbally with one or more listeners in order to influence their behavior in some manner. Ex : meetings, presentations, performance reviews
    2. Written communication : correspondence made in writing. It can be hand written, printed or typed. This takes several forms such as letters, memos, circulars, notices, reports and email. Ex : an apology letter to a customer in response to his complaint.
  2. Non-verbal communication : communication without words or any way of conveying meaning without the use of verbal language. This can have more impact than verbal communication as 'how you say' is sometimes more important than 'what you say'.
Verbal communication have some drawbacks such as the message may not be properly worded or the message is misunderstood or interpreted differently. We can avoid this by following some simple guidelines :
  • Avoid words with multiple meanings
  • Ensure clarity through highly specific statements
  • Avoid overuse of jargon
  • Avoid biased language and offensive word