2.1. ORGANIZATIONAL BEHAVIOR
2.1.1.Stress
Stress is the general term applied to the pressures people feel in life.
2.1.2.Stress and performance:
For every individual there is an optimum level of stress under which he or she will perform to full capacity. If the stress experience is below this optimum level. and then the individual gets bored, the motivational level to work reaches a low point. This will results in careless mistakes this initiates absenteeism and may increase inn higher employee turn over. If the stress is too intense, again the performance will revenue.
2.1.3. Symptoms of stress
Digestive problems emotional instability, problems with steep chronic wares inability to relaxes, high blood pressure.
2.1.4. Sources of stress:
(i) Stresses related to job
If the job is monotones, dull and bulling, individual is likely to experience stress
Role ambiguity:
If the work activities are not precisely defined, there is lot of uncertainties regarding job, usually in case of managerial jobs. This produces psychological strain and dissatisfaction and leads to under utilization of resources.
Role Conflict:
Role conflict occurs when two or more persons have different and sometimes opposing expectations of a given individual.
Role overload:
When work requirements are so excessive, ie, too much work to complete, it is difficult to accomplish because of lack of skills and ability.
Role under load:
Role under load occurs when a person’s ability is underutilized so that either there is too little work or there is too little variety in the works. Leads to excessive absenteeism and lack of interest of employees in organizational activities.
Work (environmental) factors:
Noise, heat, light, termite resources, No carrier patters.
Juter personal and group factors
Conflicts, poor communication and unpleasant relationship.
Personal factors –
Family problems.
2.1.5. Stress management strategies:-
Following strategies are mainly used to reduce stress level.
(1) Individual Strategies.
(2i) Organizational Strategies
(1) Individual Strategies.
(i) Redefining and adjusting life goals:-
High expectations and failure causes stresses. So people must readjust their goals and make sure they have the ability and proper recourses to each such goals.
(ii) Social Support:
Social is the network of activities, interaction and relationships that provides on employee with the satisfaction of important needs. There are four types of support in a total work environment instrumental, informational, evaluation and emotional.
(iii) Planning one’s life
Proper planning of utilization of one resources and anticipating the events will reduce the stress to he greater extent.
(iv) Physic logical fitness:
Individuals who exercise and strengthen their endurance and cardio-vascular system are much less likely to suffer fever certain types of stress related illness.
(vi) Yoga:
Yoga stimulated nervous system. With proper body postures and controlled bridling the nerves muscular co-ordination is strengthened affecting glandular activity which is responsible for physical as well as mental health.
(vii) Meditation
Meditation involves concentration of mind from stress produced areas, Meditations highly regarded that a few organizations have established meditation rooms for their employee use.
(viii) Bio feedback
Bio feedback is a methodology designed to ate undesirable physiological responses through psychological sterilities. In this people under medical guidance learn from instrument feed back to influence symptoms of stress such as increased heart rate and severe headaches.
(2) Organizational strategies:
It is equally important for the organizatins to develop programs that will help employees reed their stress. This well help in controlling employee turnover, absenteeism and as a result productivity will improve. Some of the steps the organizations can take are.
(i) Health maintenance
Selection and placement process should be based on matching of skills, personality and work requirements.
(ii) Job enrichment: Redesigning jobs in such a manner as the use the maximum political of the employee with emphasis on employee involvement. This well help to reduce the stress caused due to monotony, routine work etc. Effective and equitable performance approval and rewashed system.
(iii) Involvement of employees in decision making.
(iv) Building team work.
2.2. MOTIVATION:
Motivation is an important factor which encourages persons to give their best performance and help in reaching enterprise goals. The mean task of management is the direct the working force in such a way so that by their collective efforts objectives of the enterprise are achieved.
Motivation is a psychological act which attracts the worker to do more work and instigates. If the workers are instigated, they will try to do more work than the standard work and earn more for themselves which increases their living standard.
Kinds of Motivation
There are two kinds of aerostation
• Positive motivation
• Negative motivation
• Positive Motivation
It means workers may be motivated to work with some facilities or by giving some prize so that he way do more work than was done previously and with less supervision.
The prize or facilities may be financial or non financial.
Financial Motivation:Giving more wages for more work.
Non financial:Appraisal of the workers work, promotion, appreciation etc.
Negative motivation:Based on punishment or fines. That means workers must be perished for wrong work or for not doing work.
Negative motivation of two kinds (These type of punishment is of two types): Financial or non financial
Financial Punishment: A cut is made in the wages of the labour
Non financial : do work for more time, reduction in the facilities of leave, etc.
Factors affecting motivation
(i) Satisfaction through achievement
(ii) advancement
(iii) Growth
(iv) Responsibility and authority
(v) Recognition
(vi) Job security
(vii) Company administration
(viii) Salary including fringe benefits
(ix) Status
(x) Interpersonal relations
(xi) Working conditions
(xii) Personal life
Motivational techniques
Every employer tries that the person working in his organisation should be highly motivated to his organisation goals. Management generally use financial and non financial motivation technique to motivate their employees.
(1) Financial motivations
There is connected directly or indirectly with money. This may be in the form of more wages and salaries, profit sharing, leave wita pay, medical reimbursements company paid insurance etc.
(2) Non financial motivations:
There are not connected with monetary rewards
Some of the most commonly used non financial motivations are.
(1) Appraisal, praise and prestige
(2) Stators
(3) Competition
(4) Delegation of authority of authority
(5) Participation Physical & mental involvement of people in decision making process.
(6) Job Security: Providing security against sickness, unemployment, old age and death.
(7) Job enlargement:- Increasing the complexity of the job
(8) Job rotation: Shifting of an employee from one job to author
(9) Job loading: making the job more interesting
(10) Job enrichment: Changing or improving a job
(11) Reinforcement
(12) Quality of work life
The quality of work life means the degree to which members of a work organisation are able to satisfy important personal needs through their experiences in the organization.
(i) Adequate & fair compensation
(ii) Safety and healthy working conditions
(iii) Security and growth opportunities
(iv) Opportunity to use and develop creating
(v) Work & family life, including fraudsters, schedule of hours of work, travel requirements, overtime requirements etc.
2.2.1. Theories of motivation
(1) Traditional or X-theory
This theory is based on traditional view in which management or authority do not trust the workers. Management considers that work, could be extractor from labour through fear, strict disciplines and rebukes, there cooperation should not be taken in management. Authority or power in thought to be superior.
Assumptions of X-theory
Most people just do not like to do work. They are lazy and try to avoid work if they can. To get work from an employee, he should have fear.
The workers are less ambitions, avoid responsibility and do not try to improve their works through interest, but always wait for instructions.
Workers want Security
Workers act on the basis of financial geed if they are paid rose wages, they will take move interest in work.
Management doesn’t give importance to labour, they think them to be an instrument of machines.
This theory has authority for superior. Theory X implies one way communication decision at top level only, minimum delegation and centralized control. This theory presents a pessimistic view.
(2) Modern theory or Y theory
Opposite to X-theory
Labour is a part of management
Theory believes that workers have self control and self direction
Assumptions of Y theory
(i) Every work is not disinfesting
(ii) They seeks responsibility if conditons are favourable.
(iii) For executive of work, it is necessary that it should be recognised. Recognition of work is a great prize.
(iv) This based on democratic principles, where everybody has equal chances.
(v) Labour can also co-operate to solve the problems of enterprise.
(vi) Management treats all personal on equal footing for advices.
(3) Theory Z (Hybrid model)
William Qucki after making a comparative study of American and Japanese management practices, suggested the adoption of & theory which represent on integration of American and Japanese practices.
Features of Japanese organisations American organisations
Life twice employment Short from employment
Slow advancement Rapid advancement
Collective decision making Personal
Group responsibilities Jadinedual
General career Specialization in carrier
Theory & represents the adoption of hybrid type of system which in corporate the straights of Japanese management.
Features if &-theory
Strong bond between company and employees
Employees participation
Mutual frust
Integrated organisation
Hearn resiyrce development
Herzburg’s motivation Hygiene theory
Frederict Herzberg developed a theory of works motivation by indicating the way to better performance through increased job satisfaction. He conducted his study on a group of 200 enginers and accountants from 11 industries from Pittsburg (U.S.A) He brews a distinction between what he called nominator and hygiene factors.
Motivations:
Factors connected with satisfactory or motivation were called as motivations, by Herzberg. They have positive power to satisfy and produce high performance. The factors are
(i) Achievement (2) Recognition
(3) Challenging work (4) Increased responsibility
(5) Advancement
Hygiene factors
Factors related to dissatisfaction were called as hygiene factors. These factors can prevent dissatisfaction. They are reacted to work environment.
These factors are
(i) Company policies and administration
(ii) Supervision
(iii) Interpersonal relation
(iv) Salary
(v) Working conditions
(vi) Slates and security
(5) Marlow’s hierarchy of needs:
Many of the psychologists believe that all motivation ultimately derives from a tension that results when one or more of the important needs are unsatisfied.
According to Maslow, human motivation is a hierarchy of five needs.
The five basic categories are psychological, safety, social, esteem needs, self actualization needs.
These needs form a hierarchy or laddle and each need becomes active or aroused when the next lower need is reasonably satisfied.
(1) Physiological needs
This is the first level in the Marlow’s hierarchy of needs. These are the basic needs anyone has eg, food, drink, shelter and rest. These are the most basic needs and the people will be motivated to fulfils them first.
(2) Safety needs
When the physiological needs are satisfied then the needs become activated. The safety needs are mainly job security, protection against danger and the need for security.
(3) Social needs include the need to be liked by others, to be wanted member, developing meaningful relationship on he job and becoming a prominent member of the informal organisation.
(4) Esteem needs
If includes, need for self respect a sense of achievement and recognition from others.
Desire for Status and prestige is an important aspect of need fore self esteem. These types of needs are rarely satisfied.
(5) Self satisfaction
This is the ultimate need which dominates a persons behavior when all lower needs are satisfied.
2.2.2. Group dynamics
The term group dynamics refers to the forces operating in groups. The study of this subject is necessary to investigate these forces and conditions modifying them. In order to fulfill their social needs, people form small group on the job itself.
Group dynamics is a social process by which people interact face to face in small groups. Group dynamics focuses a team work, where in the small member group are constantly in touch with each other and effectively contribute their ideas to accomplish a tasks. The group develops its goal clearly. Every member participates in discussions. The group creates leaders who can coordinate group efforts effectively towards the achievement of their objectives.
Group
A group is any number of people who
(i) have a common propose or objective
(ii) Interact with each other to accomplish their objective.
(iii) Are aware of one another
(iv) Perceive themselves to be part of the group.
2.2.3. Group Norms
Group norms are rules or guidelines of accepted behaviour which are established by a group and used the monitor the behaviour of its members or norm is an agreement among group membership as to how the members in a group should behave. The move an individual compiles with norms, the move one is accepting the group standards of behaviour.
Norms can be social, moral or institutional in nature. Examples of social norms include, expectations about dress, courtesies. Normal norms relate to personal obligations, righter and princilatges, and they play an important art in societal institutions such as religious, family and marriage.
Norms are firmed in matters of consequences of the group. Generally any matter of group. Generally any matter of group maintenance and group functioning relating to the achievement of the goals, is a matter of consequence to the group as a whole. The main purpose of the norms is the maintenances of the group solidarity or its self perpetuation, to that end norms are evolved governing the behaviour and relationships of members to our another. Secondly, norms are directly related to behavour, conductive to the realisation of the group goals. Thridly, norms govern the relationship of group members to considers. Finally, norms of a group apply to all members of the group.
The norms set by the group are accepted by its members. That beings about coherences in the group. The more attractive a group is the its members, the more likely they are to members of an informal norms group, by conforming to group norms, may enhance group cohesiveness, increase satisfaction and support which members relive from it.
There specific social processes being about compliance with group norms, namely group pressure, group review and enforcement.
(i) Group pressure
Individuals who nature there group membership highly and who satisfy some combination of personal needs by being a part of a group allow group pressures to influence their behaviour and performances.
(ii) Group review and enforcement
The group position on matters like production, absolutism and quality of output is communicated to individuals and they are not being followed, different approaches may be employed such as discussion between respected leaders and the deviators. If this doesn’t prove effective, more rigid corrective action as scolding, strolling the non-acceptors ridicule silent treatment, avoidance, use of rewards or incentives physical punishment like bringing and with death as the original gangs.
(iii) Personal values and norms:
The behaviour patterns of the individuals are influenced significantly by there value system. The values of the people are influenced by the events occurring around
2.2.4. Group Cohesiveness
This refers to the attractiveness which a group holds for its members, ie, each group involves participation by members through loyalty and solidarity. This concept involves the stick together characteristics of groups and their impact on group members. Cohesiveness has been defined as the resultant power of a group to think and act as a single unit in pursuit of a common objective. If is in effect the subtotal of force activity on group members. The level of cohesiveness appears to may significantly among informal groups . Some groups maybe tightly bound together by mutual support.
Groups that are highly cohesive are capable of influencing individual behaviour.
Several factors determine group cohesiveness. If may be higher when a majority of the following conditions are present.
(i) The members have a broad agreement concerning the goals and objective the uniformed group will serve. Where groups have attained pre-established goals, they are likely to be highly cohesive units.
(ii) The size of the group is sufficient for illiterates but is for large to signs personal attention. Normally the optimum size of an informal organization is form four to seven members.
(iii) There is a satisfactory level of homogeneity in social status and social background among the members.
(iv) Individual characteristics
Co-operative ness, maturity and being an accepting person-tend to develop cohesiveness and friendliness, while striving for prominence or being a suspicious, non accepting person may inhibit unity.
(v) There is a significant amount of commercials and interaction among participating members.
(vi) There should be a capable and effective leadership which effects in its role in building and maintaining group cohesion. There a cohesive group is one in which members act toward an agreed goal in which everyone assurance a position of responsibility with respect to its achievement.
2.3. MARKETING MANAGEMENT
2.3.1. Identification of product:
Identification of product is required to find out customers perfection for the products. This will enable management to make improvements that will must the requirements of customers. These will fulfill the present requirements of the market and will be more acceptable than those of competitions products.
It is also carried out to simplify product identification, by laminating those which have a limited demand or are unprofitable, to determine the method of packing that will belong best sales and to find the suitable price which may be accepted by the customers and results in handsome profits. It is important to find what characteristics the manufactures product have not reduce to know their relative advantages so that customers can be persuaded to purchase your products only.
The following questions are to be considered for product analysis.
(i) Whether the product fulfils the market requirements.
(ii) Whether the product competitive in character, performance and price.
(iii) Whether the product pursuits effect distribution.
(iv) Whether the product can be sold at handsome projects.
(v) Whether some design improvement are needed
(vi) How product can be designed to reduce cost of production in distribution, transportation and maintenance.
(vii) Whether reduction of a selling prices has effect in demand.
(viii) How repairs and replacements method can be improved.
(ix) What is the future trends of changes.
(x) What new changes and inventions are likely to occur.
(xi) What is competition offering.
2.3.2. Pricing:
The price of the product is the means whereby manufactures obtain a fair return for their labours and replace and increase their wealth and purchasing power in return for supplying the products. All business enterprise face the tasks of setting a price for their products or services. The task of is faced in the following situations.
(i) When a company makes a new per duct and it has to set price for the first time.
(ii) When circumstances such as inflation or shortages lead firm to consider initialing a price change.
(iii) When market competition initiates a price change.
(iv) When a company produces several products that have interrelated demands or costs.
Factors affecting price fixation:
(i) Fair trade laws
(ii) Nationally advertised prices and government
(iii) Desired customer clientele.
(iv) Company monopoly
(v) Manufactures suggested prices.
(vi) Type of merchandises
(vii) Nature of sales
(viii) Price living
(ix) Whether large volume with low profit or relatively small volume with high unit profit is desired.
(x) Suitable channels of distribution
(xii) Sales promotional strategy
2.3.2.1. Policy
Pricing policy can be expressed diagrammatically
1. Sales at more than average mark up
2. Average mark up sales
3. Sales at less than average mark up
4. Sales at less than cost
Figure : Pricing Policy
Assume that company has a sales of Rs.100,000 and gross margin of Rs. 45,000 it means that if has an average marks up of 45% on the total sales. This doesn’t mean that very product was marked up to 45% of sales, actually the product had more than this, and others less than this but the overall average markup reached 45% make up or gross margin represents the difference between what the shopkeeper has paid to the wholesales for getting the product and price at which he has sold the product to the customer.
2.3.2.2. Make up covers:
(1) Overturning expenses
(2) Markdowns
(3) Shortages
(4) Damaged merchandise
(5) Profits
2.3.3. Sales promotion:
Sales promotion includes those marketing activities, other than personal selling, advertising and publicity, that stimulate consumer purchasing and drake effectiveness, such as displays shows and exhibition, demonstrations, and various non-recurrent selling effects not in the ordinary confine.
The sales promotion methods are
(1) Consumer promotion:
Persuading consumers to buy, these include samples, money refund offers, prices off trading stamps, contests and competitions.
(2) Trade promotion:
Incentives to distributors, and others to hold stocks of company products. These include special discounts, buying allowance one or two fee units/bulk container, dealer competitions such as free holidays, push money etc.
(3) Sales force promotions:
Bonuses, contests, sales tallies etc for the salesmen
(4) Good public relations:
Develop goodwill and increase sales.
(5) Good customer relations:
Good customer relations are basically the result of their past transactions with the company.
(6) Display:
Displays at points of sale, using posters, bankers, placards & leaflets to attract the customers attention to the product.
(7) Product Exhibitions, demonstrations, and conferences
(8) Holding competitions and awarding prizes to winners
(9) Latest product styling and appealing product packaging
2.3.4. Channels of distribution
Producers generally do not sell their products directly to the final users. Between them and the final uses stand a number of marketing intermediaries performing a variety foundation and bearing a variety of names.
The marketing intermediaries are called channels of distributions, treads channel or marketing channels.
Distribution channels are characterized according to the number of channel levels. Commonly used channels of distribution are.
(a) Manufacture consumer
(b) Manufacturer Retailer consumer
(c) Manufacture whole sale Retailed consumer
(a) Represents a two level distribution channel
(b) Represents a three level distribution channel
(c) Represents a four level distribution channel
If can be observed from the above discussion that goods are sold either.
(1) Direct from product to consumer or
(2) From producer to consumer via a middleman.
The direct channel is very effective and profitable for goods which have a high profit margin, eg, office machinery such as photocopying mks, accounting mks, computers etc. Because more specialized or technical the product, the better is to sell if directly.
In direct selling the produce has maximum control over selling practices and policies
(2) Selling through a middleman is known as indirect distribution. This method does very well for product with a low profit margin.
Eg: Consumer goods tooth paste, face creams etc.
Middleman buys goods in bulks and these enables a producer to avoid risks connected with stocking of goods. The risk may be in the form of a fall in price or physical deterioration of the products.
Middleman keep the producer informed about the per talent market trends. Middleman such as wholesalers many tines pay immediately to the producers the price of goods and thus help producers whose financial resource are not big.
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