SCHOOL OF MECHANICAL ENGINEERING

DEPARTMENT OF MECHANICAL ENGINEERING

SBAA4002 - PRINCIPLES OF MANAGEMENT AND PROFESSIONAL

ETHICS

UNIT – 3 STAFFING AND LEADING

Definition
Staffing as an managerial function , comes after determining strategies, policies,
programmes, activities, procedures and rules formulated for their achievement, and
understanding all work areas .
According to Kootz & O’Donell, “Managerial function of staffing involves manning
the organization structure through proper and effective selection, appraisal and development of
personnel to fill the roles designed in the structure”.
Objectives of Staffing
- To ensure that organizational positions is filled by qualified personnel.
- To define job description, persons acceptance tests, and required training.
- Matching the right persons in the right places.
Functions of Staffing
(a) Manpower planning involving determination of the number and the kind of
personnel required.
(b) Recruitment for attracting adequate number of potential employees to seek jobs in
the enterprise.
(c) Selection of the most suitable persons for the jobs under consideration.
(d) Placement, induction and orientation to fill the roles designed on the structure.
(e) Transfers, promotions (move to higher rank), termination and layoff.
(f) Training and development of employees.
(g) Remuneration (give bonus) is key in terms of attracting the right talent without
damaging the organization’s finances.
2.3.3 Staffing Selection Steps
1. Receiving Application Form.
2. Screening of Applications, to get to the applicants who are found to be qualified for
the consideration of employment.
3. Selection Tests, to accept or to know more or to reject the candidates such as
Achievement, Intelligence, Personality, and Interest tests
4. Interview, to find out overall suitability of candidates for the jobs based on
Education, knowledge, skills and experience.
5. Checking of Candidates References to check information provided by candidates.
6. Physical fitness Examination, to ascertain the physical standards and fitness of
prospective employees.
7. Approval by Appropriate Authority.
 8. Placement selected candidates on their jobs initially under training period which
may range from six months to two years.
Directing (Leading):-
Directing is the function of leading the employees to perform efficiently, and contribute
their optimum to the achievement of organizational objectives.
This function is called by various names: directing, leading, motivating, actuating and
so on. Leading involves the social and informal sources of influence that you use to inspire
action taken by others
To become effective at leading, managers must first understand their subordinates’
personalities, values, attitudes, and emotions.
Studies of leadership and leadership style provide information regarding questions,
such as, “What makes a manager a good leader?” and “In what situations are certain leadership
styles most appropriate and effective?”

INTRODUCTION
Staffing is the managerial function of recruitment, selection, training, developing,
promotion and compensation of personnel. Staffing may be defined as the process of hiring
and developing the required personnel to fill in the various positions in the organization. It
involves estimating the number and type of personnel required. It involves estimating the
number and type of personnel required, recruiting and developing them, maintaining and
improving their competence and performance.
Staffing is the process of identifying, assessing, placing, developing and evaluating
individuals at work.
Definition:
According to Koontz and O’Donnell: “The managerial function of staffing involves
manuring the organizational structure through proper and effective selection, appraisal
and development of personnel to fill the roles designed into the structure.” Staffing is defined
as, “Filling and keeping filled, positions in the organizational structure. This is done by
identifying work-force requirements , inventorying the people available, recruiting, selecting,
placing, promotion, appraising, planning the careers, compensating, training, developing
existing staff or new recruits, so that they can accomplish their tasks effectively and
efficiently.”
1.2 IMPORTANCE
1. Staffing helps in discovering and obtaining competent and personnel for various
jobs.
2. It helps to improve the quantity and quality of the output by putting the
right person on the right job.
3. It helps to improve job satisfaction of employees.
 4. It facilitates higher productive performance by appointing right man for right job.
5. It reduces the cost of personnel by avoiding wastage of human resources.
6. It facilitates growth and diversification of business.
7. It provides continuous survival and growth of the business through development of
employees.
RECRUITMENT AND SELECTION
Recruiting involves attracting candidate to fill the positions in the organization
structure. Before recruiting, the requirement of positions must be cleared identified. It makes
easier to recruit the candidates from the outside. Enterprises with a favorable public image
find it easier to attract qualified candidates.
Definitions –
1. Mc Fariand, “The term recruitment applies to the process of attracting potential
employees of the company.”
2. Flippo, “Recruitment is the process of searching prospective employees and
stimulating them to apply for the jobs in the organization.”
Thus recruitment may be considered as a positive action as it involves attracting the
people towards organization.
Need of recruitment
The need of recruitment may arise due to following situations:
1. Vacancies due to transfer, promotion, retirement, permanent disability or death
of worker.
2. Creation of vacancies due to expansion, diversification or growth.
Methods and sources of recruitment:
According to ‘Dunn and Stephens’ recruitment methods can be classified into three
categories :
1) Direct Methods
2) Indirect Methods
3) Third Party Methods
1) Direct Methods include travelling visitors to educational and professional institutions,
employee’s contacts with public and manned exhibits and waiting lists.
2) Indirect Methods include advertising in newspaper radio, in trade and professional
journals, technical journals, brochures etc.
3) Third Party Methods includes the use of commercial and private employment agencies,
state agencies, placement offices of the colleges and universities, and professional association
recruiting firms.
Sources of Recruitment
The various sources of recruitment may be classified as
A. Internal sources or from within the organisation
B. External sources or recruitment from outside.
A. Internal sources – Many organisations in India give preference to people within the
company because the best employees can be found from within the organisation itself.
Under this policy, if there is any vacancy the persons already working in the organisation
are appointed to fill it. This method is followed mostly in Government organisations.
B. External sources or recruitment from outside – Internal sources may not always fulfill
the needs of an organisation. Naturally, most of the concerns have to look for the external
sources for recruitment the required number of employees with the requisite qualifications.
The external sources of recruitment include.
1. Direct Recruitment – Many organizations having one separate department called personnel
department to select right employees. For that organisaton may receive direct applications from
the candidate. The technical and clerical staff is appointed in this way.
2. Recruitment through the jobbers or Intermediaries – In India mostly unskilled or illiterate
workers are recruited through this method. Under this system the intermediary keeps a
vital link between workers and employers. They are always willing to supply the required
number of workers.
3. Recruitment at the factory gate – Mostly unskilled workers are appointed through
this method. Under this system, large number of unemployed workers assemble at the
factory gate for employment. The factory manager, or labour superintendent or some other
official may select the necessary workers.
4. Recruitment through advertisement – This is most common method for recruiting
skilled workers, clerical staff, managerial personnel, technical personnel. The vacancies are
advertised in the popular daily newspapers and applications are invited from the persons having
required qualifications.
5. Recruitment through the recommendation of the existing employees – The existing
employees recommend the suitable names for the employment.
6. Recruitment from colleges or universities or educational institutions – This method is
used in some enterprises or Government department, when the recruitment of persons
required for administration and technical personnel.
7. Recruitment through employment exchange – The workers who want help in finding
jobs make their registration in the nearest employment office where details are recorded.
Employment exchanges are the special offices for bringing together those workers who are in
need of employment.
8. Other methods –
i) Badli Control system or Decasualisation of labour – It means efforts taken for regularizing
the system or recruitment by means of controlling substitute of badli labour. Under this
system, on the first day of each month, special badli cards are given to a selected number of
persons who are advised to present themselves every morning at the factory when temporary
vacancies are filled up from amount them.
ii) Contract labour – Under this method contractor supplies labours to the industrial enterprises
according to their requirement.
Selection:
Selection is the process of choosing the most suitable person for the current
position or for future position from within the organization or from outside the
organization.
The selection of managers is one of the most critical steps in the entire process
of managing.
PROCESS OF SELECTION
Selection means the taking up the different workers by various acts from the
application forms invited through different sources of internal and externals. According to Dale
Yoder, “Selection is the process in which candidates by employment are divided into two
classes those who are to be offered employment and those who are not.”
Selection Procedure:
Selection of workers is regarded as a policy matter. Every enterprise has its own policy
for recruitment. The following procedure is adopted.
1) Receiving and screening the application : After receiving the applications have
to be screened. In this process the applications of candidates without the requisite qualification
are rejected.
2) Sending the Blank application form : After preparing the list of candidates
suitable for job, blank application forms will be sent to the candidates. In this application form
information should be given about the name and address of the candidate, educational
qualification, experience, salary expected etc.
3) Preliminary Interview : The interviewer has to decide whether the applicant is fit for
job or not. By this interview the appearance, attitudes, behaviour of the candidate can be known
easily.
4) Administering Tests: Different types of test may be undertaken. Tests are
conducted for the knowledge of personal behaviour, efficiency of work and interest.
Generally, following types of tests are conducted.
i) Achievement Test
ii) Aptitude test
iii) Trade Test
iv) Interest Test
v) Intelligence Test etc.
5) Checking References on Investigation of Previous History : Applicants are
generally asked to give names of at least two persons to whom the firm may make a
reference.
6) Interviewing : Interview is the most important step in the selection procedure.
 In interview, the intimation given in the application form is checked. Interview helps
in finding out the physical appearance and mental alertness of the candidate and whether
he possesses the required qualities.
Interviews may be of various kinds these are
1) Direct Interview
2) Indirect Interview
3) Patterned Interview
4) Stress interview
5) Systematic in – depth interview
6) Board of panel interview
7) Group interview
7) Final Selection: On the basic of results of previous interview the candidate is
informed whether he/she is selected for the said post or not.
TRAINING AND DEVELOPMENT
Training is an instrument of developing the employees by increasing their skills and
improving their behavior. Technical, managerial skills are needed by the employees for
performing the jobs assigned to the. Training is required to be given to new employees as
well as existing employees. The methods to be used for training and the duration for
which training should be given is decided by the management according to the objectives
of the training, the number of persons to be trained and the amount of training needed by the
employees.
Training leads to overall personal development. The major outcome of training is
learning. Trainees learn new habits, new skills, useful information that helps to improve
their performance.
Definition:
According to Flippo:
“Training is an act of increasing the knowledge and skill of an employee for
doing a particular job.”
Importance of training and development:
1. Reduction in learning time
2. Better performance
3. Reduced supervision
4. Increases Morale of the employees
5. Facilitates organizational stability and flexibility
6. Develops employees skills, talents, competency
 7. Decreased accidents
8. Better use of raw material and other resources
9. Increase in production.

Methods of training:

Development
Development is a continuous process. It is fox for refreshing information
knowledge and skills of the executives. In the case of development, off the job methods
are used. It provides wider them capable to face organizational problems and challenges is a
bold manner.
Management development is a planned systematic process of learning. It is
designed to induce behavioural change in individuals by cultivating the mental abilities and
inherent qualities through the acquisition and Understanding of use of new knowledge.

PERFORMANCE APPRAISAL
Performance appraisal is one of the oldest and most accepted universal principles
of management. It refers to all the formal procedures used in working organizations to
evaluate the personalities, contributions and potentials of group members. It is used as
a guide by formulating a suitable training and development programme to improve the
quality of performance in his present work. Performance appraisal is the judgment of an
employee’s performance in a job. It is also called as merit rating. All managers’ are constantly
forming judgment of their subordinates and are continuously making appraisals.
It is the systematic evaluations of the individuals with respect to his performance
on the job and his potential for development. The immediate superior is in-charge of such
appraisal. The managerial appraisal should measure both performances in achieving goals
and plans as well as all managerial function such as planning, organizing, leading and
controlling.
Objectives of performance appraisal:
1. To help a manager to decide the increase in pay on ground of merits.
2. To determine the future use of an employee
3. To indicate training needs.
4. To motivate the employees to do better in his or her present job.
5. To contribute the growth and development of an employee.
6. To identify employees for deputation to other organizations
7. To help in creating a desirable culture and tradition in the organization.
8. To nominate employees for training programmes.
 DIRECTING
Directing is a very essence of management. It is the important element of management
without which nothing in the managerial process can be successful. Directing helps to create
an appropriate work environment that facilitates efficient discharge of duties to the
employees. Directing and leading comprise the managerial functions of guiding, overseeing
and leading people. The primary function of directing is to deal with human elements to build
personal relationships. Directing is concerned with directing human efforts towards
organizational goal achievements. The success of these directional efforts determines the
satisfactory or unsatisfactory performance within the organization. Thus, directing is the
function the will test the managerial capability in running the organization.

Definition:
According to Haimann: “Directing consists of the process and techniques utilized in
issuing instructions and making certain that operations are carried on as originally planned.”
According to Koontz and O’Donnel: “Direction is the interpersonal aspect of managing by
which subordinates are led to understand and contribute effectively to the attainment of
enterprise objectives” According to Urwick and Brech: “Directing is the guidance, the
inspection, the leadership of those men and women that constitute the real course of
responsibility of management.”

Direction focused on:

1. To ensures that sub-ordinates do their work.
2. The subordinates do it well not only according to plan but also as per the expectation
of management in order to achieve the goals.
3. To develop interpersonal relations n a group.
NATURE OF DIRECTION
Directing is the heart & soul of management. Without directing management may come
to stand still.
1) Important function of management: -
Any amount of planning, organizing & staffing can be done with proper direction.
Responsibility for attaining the objectives must be guided and directed for truthful result.
2) Performed by all levels of management: -
Direction function is performed by top level, middle level or low level. Every superior
is expected to provide guidance and direction to those who lose to him for such direction.
3) Continuous process: -
It is an unending process. It goes with work. As long as work is there direction is there.
4) Result oriented: -
a) To get the work done.
b) To see the management work more responsibly.
The manager’s job is not only to see that the work is completed according to him and proper
direction is provided but he has to ensure that the problems faced by men are solved without
delay.
5) Provides link between different management functions: -
It provides effective link in planning, organizing, staffing in the organization with
proper control.
6) Involvement of human relationship: -
Directing creates co-operation & harmony among the members of the group.
IMPORTANCE OF DIRECTION
Direction is described as the heart of the management process. It is the life spark of an
organisation which sets the organizational machine into motion. Thus direction is an
important function of management on account of following reasons.
1) Direction initiates action : Management through direction conveys and motivates
individuals in the organisation to function in the desired way to achieve organisational
objectives in the absence of direction.
2) Direction integrates an effort of employees in order to achieve organisational objectives
interrelated activities of all the employees need to by systematically integrated which is done
through direction.
3) Direction attempts to get maximum from individuals : Individuals in the organisation
have enough potentialities and capabilities, which can be used through proper motivation
leadership and communication which are the elements of direction.
4) Direction facilities changes in the organisation : Organisation is described as a subsystem
of a social system, hence any change in the social system, has to be accommodated by the
organisation by changing itself. In order to accept and implement these changes
management has to motivate the employees affected by these changes, which is the essential
part of direction.
5) Direction provides stability and balance in the organisation : Direction through effective
motivation communication and leadership provides stability in the organisation and helps
in maintaining balances between different departments in the organisation. Hence the
organisation can function efficiently and effectively over a long period of time.
Thus direction stands out as an important function of management. It has also been observed
that there is a high correlation between direction and work performance.
PRINCIPLES OF DIRECTON
1) Principle of Harmony of objectives: -
The direction is effective only when the individual objectives are harmonized with group
activities. Directing is regarded as essential in personnel management directing helps all
the members to satisfy their personal goals as well as organizational goals.
2) Principle of efficiency: -
The executive should try to motivate sub-ordinates to increase performance & attain
objectives at minimum cost; other wise direction will be ineffective.
3) Principle of unity of command: -
Command must be come from only one executive or one superior. Workers come to know
from one of the executives what to achieve & how to achieve. If there is no unity of command
there will be a duplication of work.
4) Principle of direct supervision: -
Direct supervision and advice by the executive will boost the Morale of the workers.
This makes the atmosphere trustworthy in the organization.
5) Principle of communication: -
A good system of communication between executives & sub-ordinates ensures the success.
Effective communication serves as an instrument of direction, supervision & advice.
6) Principle of leadership:
Every one wants a good executive who is interested in the work & who is interested
in solving problems faced by workers. Good leadership will lead to co-operation, co-ordination
& confidence in the working force.

ELEMENTS OF DIRECTION
1) Motivation: -
Employees come forward to work in any organization to satisfy their needs. Motivation
relates to continuous attempt made by executives to influence on the behavior without any
force.
2) Leadership: -
Leadership is essential aspect of directing. Inspiring leadership act as a spark plug for
lightening the efforts and a desire to work in sub-ordinates. The success depends upon good
quality leaders.
3) Communication: -
It creates mutual understanding between management & other members of the organization.
The manager should explain in simple and clear terms what to do, how to do & whom to
do to the workers. Modern management needs effective communication as well as active
participation by all the members.
4) Co-ordination: -
It is the essence of management. It is the duty of manager to co-ordinate all the activities within
the organization. Co-ordination will lead to unity of direction.
5) Supervision: -
The supervision means a job of sub-ordinate is supervised by the superior. It is essential part
in directing. It is to be done at all levels of management from top to bottom. He gives
instructions and guide to the people for attaining the objectives. The supervisory management
supervises the workers for solving their problems.
 INTRODUCTION - MOTIVATION
Motivation is a general term that is applicable to the entire class drives, desires,
needs wishes and similar forces. Motivation is productivity factor in industry. It is the same
total managerial science. Motivating workers is to create desire in the mind of workers for
better performance. One can buy employee’s physical presence at work place for a
certain time but cannot buy his willingness to work. The capacity to work and willingness to
work is important to get better results. Hence, motivation is the function of a manger to induce
the employees to work willingly, efficiently, effectively and contribute their best to the
achievement of the goals of the organization.

Definition:
Motive:
“An inner state that energizes, activates or moves and that directs or channels behaviour
towards goals”
According to W.A. Scott:
“Motivation means process of stimulating people to action to accomplishment of desired
goals.” Motivation can be defined as: ‘willingness to expand energy to achieve goals
and getting rewards.’
OBJECTIVES OF MOTIVATION
Motivation is one of the primary functions of a manager. He has to motivate his sub-
ordinates to perform their activities at high level & to make positive contribution towards
the efficient & effective achievement of organizational objectives. The work performance
of an individual depends upon motivation as well as his ability and environmental
conditions. The performance on the job is determined by following relationship:
P = F [M, A & E]
P = Performance
M = Motivation
A = Activity
E = Environment
Using this relationship and employee who can achieve high level of desire &
ability to perform his job must be provided with proper material equipment & process. It is the
responsibility of the manager to ensure that all these 3 parts are essential i.e. Motivation,
ability & environment. Motivation aims at creating an environment which will make the
personnel of an organisation.
1. To take initiative
2. To show dynamism and curiosity
3. To work willingly and co – operatively
4. To work in a disciplined manner
5. To take interest in their work
6. To be dynamic and enthusiastic
7. To be responsible and loyal
8. To take pride in their job
9. To have job satisfaction
10. To have personal and group morale satisfaction and
11. To contribute their best to achieve their personal and organizational objectives.
TYPES OF MOTIVATION
1) Motivation may be positive or negative: -
Positive motivation is the process which influences the employee through rewards. E.g.
Bonus, promotion, permanent settlement, increase in working condition, etc. Negative
motivation is based on fear. i.e. fine, discharge, lay-off etc.
2) Motivation may be financial or non-financial: -
Financial motivations are those which are associated with money. It includes wages,
salaries, bonus and retirement benefit. Non-financial motivations are not associated with
monetary rewards. It includes ego satisfaction, participation in the process of decision
making, providing good working conditions and providing more responsibility to them.
3) Primary & secondary motivation: -
Primary motivation relates to satisfying basic human needs & secondary motivation
relates to social needs & self acquisition.
THEORIES OF MOTIVATION
Maslow’s Need of Hierarchy Theory : -
Abraham Maslow was the Pioneer in contributing to a system of hierarchy of needs.
Maslow’s concluded that there are certain needs of employee when he joins an
organization. They have certain expectations from the organization where they are
motivated to satisfy their own needs. The following are important positions advocated by
Maslow about human behavior.
1) Man is a wanting being. Man is a continuously working more & more. What he wants or
will want depend upon what he has. As soon as man’s one need is satisfied another
immediately takes place. It keeps a man to work continuously, demanding more & more.
2) A satisfied need is not a motivator where as an unsatisfied needs work as motivator.
Hence a man works to satisfy his needs.
3) The need of man has hierarchy: - Maslow thinks that a man’s needs are arranged in a series
of level. As soon as the need at lower level is satisfied, a worker is motivated to satisfy another
need in hierarchy.
Different types of needs: -
1) Physiological needs: -
It is the lowest level in hierarchy. These needs which are most the important in the human life
must be satisfied by him. It includes food, clothing, housing, air, water, etc. Physiological
needs arise for the survival of human being. Physiological needs are important for every
human being.
2) Safety needs: -
Safety needs are known as ‘security needs’. These needs are concerned with protection
i.e. financial security, job security, emotional harm, etc. As soon as physiological needs
are satisfied these needs emerge. It acts as motivating factor.
3) Social needs: -
Social needs relates to love, affection & belonging & social security. Every individual
is associated with group members or group of society. He gets affection from his group
members. A man is motivated to satisfy his social needs in following ways by :
1. Establishing a team work, team culture & team spirit.
2. Providing proper training facilities.
3. Conducting frequent meetings with team members.
4. Providing extra activities like social, cultural, sports to encourage the people.
5. Arranging periodical get together & participation with managers.
4) Esteem needs: -
It includes two parts i.e. internal esteem & external esteem needs, such as achievement
of respect & status. It can be done in following ways by:
1. Providing higher level of training & better educational facility.
2. Assigning challenging task, high responsibility & position.
3. Delegating some powers to subordinates.
4. Involving sub-ordinates in goal setting & decision making.
5) Self actualization: -
This includes self fulfillment of job growth & achieving once potential. Some methods to
satisfy self actualization needs are: -
1. Involvement of capable people in policy making.
2. Realizing a sense of fulfillment & development.
3. Providing opportunity for involvement.
4. Providing training facility according to capacity.

HIERARCHY OF NEEDS
Limitations / Disadvantages of Maslow’s Theory : -
1) It is general expression not specific.
2) The level in the hierarchy are not fixed, the boundaries are overlapping.
3) This approach is related to personal inner action needs. But person does not have
any single need at a time. He has many needs.
These limitations should be kept in the mind by the management while preparing
any plan for motivation. The people are different in their expectation. The same need can
not act as a motivating factor to many people in the same manner.
Fredrick Herzberg’s two factor theory : -
Maslow Hierarchy of need point out about the behavior of the people. Using this as a
base, Herzberg & his associates interviewed 200 engineers & accountants. The engineer &
accountant describe the factors about the feelings. He asked them what are the good
times & the bad times on their jobs. Engineer & accountants brought up the things
[bad]. Unfair co policies, poor relationship with boss, low payment etc. They did not
mention about good job experience. They talked about the opportunities they got for personal
growth & development. Then they took interview with the workers with different industries.
The results were same. So he developed 2 factors theory. As per him a man has two sets
of needs:
1. Lower level needs: It denotes hygiene, maintenance or environmental factors which do not
motivate satisfaction, but their absence causes dissatisfaction.
2. Higher level needs: these needs are termed as motivators because they area the real cause of
job satisfaction and they lead to better performance.
3.

Maintenance seekers are explained in natural state of motivation. These are

important for the growth of the organization. It mainly satisfies security, psychological, social
& esteems needs. In absence of maintenance factor worker may feel dis-satisfied so
absenteeism & labour turn over will increase but if they are present it will act as natural
motivating factor. Motivation seekers are explained by him in 6 points in high state of
motivation & job satisfaction. However if these factors are not present, they do not lead to
strong dis-satisfaction. Maintenance seekers are more important in every organization.
Merits: -
1) According to Herzberg one important way to increase job satisfaction is to enhance
job enrichment, job enrichment means more challenging work.
2) Introducing new & more difficult task not handle earlier.
3) Eliminating a layer of supervision.
4) Increased worker’s autonomy & authority.
5) Workers may be given a complete natural unit of work. A natural unit of work
helps to increase identity.
Demerits: -
1) Limited samples: -
A theory is based on a sample of 200 accountants & engineers. The critical
question is that these samples are limited & they are from different occupation.
2) Critical Methodology: -
It suffers from ego defense at work. Motivational & maintenance factors are not completely
described.
McGregor’s Theory of X & Theory of Y : -
According to McGregor’s theory of X & Theory of Y explains the relationship of man
& his behavior. He has explained his theory in 2 terms. They are theory of X & theory of
Y. Theory X has traditional approach where as theory of Y has modern approach. This is
traditional theory of human behavior. The management has to motivate human beings in the
organization.
Theory X :
It involved certain assumptions are follows: -
1. The average human being has an inherent dislike of work & will avoid it.
2. The average human beings are lazy & avoid responsibility.
3. The average human being is not aware about the goals of the organization.
4. The average human being prefers to be directed.
5. Management is responsible for organization. The elements of production are money,
machine, material, people etc.
6. It is the process of directing the people, motivating them & controlling their action by
management.
7. Without any intervention by management people would be passive they must be punished,
controlled or rewarded.
8. He lacks ambitions; avoids responsibility & prefer to be led. Some assumptions deal with
human behavior, human nature. Some assumptions deal with managerial actions. These all
assumptions are negative in their approach. The manager feels that control is the most
appropriate for dealing with sub-ordinates. McGregor believes that these assumptions about
human nature can not drastically change. There is considerable change.
Theory Y : -
According to McGregor theory of Y has the following assumptions: -
1. The average human being does not inherently dislike work, depending upon
controllable condition work may be a source of satisfaction or punishment.
2. The average human being will excuse self direction, self control.
3. Commitment to objective is the function of reward associated with their achievement
the human being is directed for self actualization.
4. The average human being likes to accept the responsibility. Avoidance of responsibility
is lack of ambition for them.
5. Under the modernization & competitive world potential of the workers should be utilized.
Theory Y produces better results because there is no domination. There is no
harsh leadership. It is not optimistic. It is a participative. Theory Y is more realistic so it gives
better results than Theory X. So Theory Y should be used frequently in the organization.
Difference between Theory X & Theory Y: -
Theory X Theory Y
1. Assumption regarding work Theory Y assumes that human being
& human being: Theory X assumes human work
being to be inherently dislikes the work. as natural as play.
2. Motivating factor: In Theory Y high order needs are more
In the Theory X motivating factors important for motivation. Though
are the lower needs. unsatisfied
lower needs are important.
3. Need for supervision: In Theory Y people are self directed &
In Theory X people lack self prefer self control & are creative.
motivation & required to be control
extremely. After strict control large
output can be achieved.
4. Emphasis: Theory Y emphasizes decentralization of
Theory X emphasizes scale authority & greater participation in the
system & centralization of authority decision making process.
in the organization.
5. Extent of capacity for According to Theory Y there is capacity
creativity: - as
According to Theory X most well as creativity in the individual.
people have little capacity for Many
creativity. problems can be solved with the capacity of
individual.
6. Ambition & responsibility in Theory Y states that the average human
the job: - being learns under proper conditions and
Theory X states that people do not they take responsibility.
have ambitions & they avoid
responsibility in job.

David McClelland’s theory of motivation : -

McClelland has made an important contribution in the motivation theory. The need
for power is more important according to him his theory is based on following assumption:
1. Divide needs for power, need for achievement & need for affiliation.
2. Only higher needs are highlighted.
3. Higher needs are classified into 3 types: -
1) Power 2) Achievement 3) Affiliation
4. Taken for granted that lower needs are generally satisfied.
5. Higher level needs are always act as motivating factors.
6. Management must take care of power, achievement & affiliation.
According to McClelland, needs motivate every individual. It acts as high
motivators. McClelland contributes his need aspect into 3 types of needs:-
The need for power: -
The need for power is inherent in every individual. This is the need to dominate
influence or control people. Power means authority but authority is not always related
to power. Power can be expert power, reward power, legitimate & coercive power. A
person acts as a dominated when he act as a leader even in small group. The need for power is
drive for superiority over others. Thus need for power is inherent.
The need for affiliation: -
The need for affiliation is a social need. It is a motivating factor. It is a social motive.
The sense of affiliation is essential for every individual who is a high performer. Every human
being has social entity, social contact and he involves in social activities.
There is similarity between McClelland affiliation motive & Maslow affiliation
needs. Because according to both, people dominated by affiliation needs are attracted
towards job. They must establish a bridge between such people.
The need for achievement: - He has highlighted the needs for achievement. This is the
need for challenge, success & accomplishment. Higher achievers are motivated for
achievement and canbe placed between Maslow esteem needs & self actualization needs.
According to McClelland achievement motive is a desire to make the best performer in the
term of standard of excellent. So that success can be achieved. He has made study on
achievement motives & given following characteristics:
1) Higher achievers want feed back on their performance. They want to know how
will they are doing.
2) High achiever likes to take personal responsibility for finding a solution to
problem.
3) High achievers like to take risk for achieving the goals. They want to win in the
competition.
Limitation: -
1) Achievement motivation cannot be taught.
2) The evidence supported to this theory is doubtful.
3) The use of projective technique is objection.
 4) Achievement training is time consuming & expensive.
5) The theory does not explain the process of motivation & the result of motivation.
The Expectancy Theory of Motivation:
This is a modern expression of what Martin Luther observed centuries ago when
he said, “Everything that is done in the world is done in hope.”
The famous psychologist Victor Vroom says that the people’s motivation towards
doing anything will be determined by the value they place on the outcome of their
efforts, multiplied by the confidence they have that their efforts will materially aid in
achieving a goal.
The theory is expressed in mathematical terms as:
Force = valence * expectancy
Where
Force = the strength of a person’s motivation
Valence = the strength of an individual’s preference for an outcome
Expectancy = the probability that a particular action will lead to a desired outcome.
One of the great attractions of the Vroom theory is that it recognizes the
importance of various individual needs and motivation. But it is difficult to apply
in practice. Despite it’s difficulty in application, the logical accuracy of Vroom’s theory
indicates that motivation is much more complex than the approaches of Maslow and
Herzberg.
Equity theory:
An important factor in motivation is whether individual perceives the reward
structure as being fair. One way of addressing this issue is through Equity theory,
which refers to an individual’s subjective judgments about the fairness of the reward he gets,
relative to the inputs in form of efforts he puts in, experience and education he makes
use of.
J.Stacy Adams has formulated the above concept as under:
Outcome by a person outcomes by another person
--------------------------- = ---------------------------------
Inputs by a person inputs by another person
There should be a balance of the outcomes/inputs relationship for one person in
comparison with that for another person. If people feel that they are inequitable rewarded,
they may be dissatisfied, reduce the quantity or quality of output or leave the organization. If
people perceive the rewards as equitable, they probably will continue at the same level of
output. If people think that rewards are greater than what is considered equitable, they
may work harder. It is also possible that some may discount the rewards.
 One of the problems is that people may overestimate their own contributions and
the rewards are received by others. Employees may tolerate certain inequities for some time.
But prolonged feelings of inequity may result in strong reactions to an apparently minor
occurrence.
Reinforcement Theory:
The psychologist B.F. Skinner of Harvard developed an interesting but controversial
technique for motivation. This approach is called as positive reinforcement or behavioral
modification, states that individuals can be motivated by
proper design of their work environment and praise for their performance.
However, the punishment for poor performance produces negative results. Skinner and his
followers analyze the work situation to determine what caused workers to act the way they
do, and then they initiate changes to eliminate troublesome areas and obstructions to
performance. Specific goals are set with worker’s participation and assistance. Prompt and
regular feedback of results is made available and performance improvements are rewarded with
recognition and praise.
Even when performance does not equal goals, ways are found to help people and praise
them for the good things they do. It has also been found that it is highly useful and
motivating to give people full information on a company’s problems, especially those in
which they are involved.
This technique sounds almost too simple to work and many behavioral scientists and
managers are skeptical about its effectiveness. However, a number of prominent companies
have found this approach beneficial. Perhaps, the strength of this approach is that it is
concerned to the requirements of good management.
TECHNIQUES OF MOTIVATION
1) Money: -
Money is a good technique of motivation in any form. Money is important. Money is
an urgent means of achieving a good standard of living. Money as a motivator trends to be
less by offering similar salaries to various managers. It is a monetary revote leads to
increase in the performance. It is the most affecting motivator.
2) Participation: -
The right kind of participation yield motivation. It gives people a sense of
accomplishment. Workers participation in decision making act as a good motivator.
3) Quality of working life: -
QWC This program is a system approach to job decision. It promises development
in the job enrichment. It is a broad approach. It convinces industrial engineering, organizational
theory, sociology, development, motivation & leadership.
Job enrichment: -
As job enrichment aims to build a higher sense of challenges & achievement in the
existing job, it can be done by giving workers more freedom in deciding about the
methods of working on their own. The participation of sub-ordinates & interaction
between workers make them aware about how they lead to welfare of the organization, by
giving feedback to the employees about their job performance.
While using motivational techniques, a manager should note that job enrichment
is mainly applied to which skill level. Workers may not like to have changes in the basic
contents of their job, and also technical consideration put serious limitations to any attempt
job enrichment.
 INTRODUCTION - LEADERSHIP
Leadership is the ability to persuade others to seek certain goals. Effective direction
is not possible without leadership. Leadership is a means of direction. It means the activity by
the manager for guidance to his sub ordinates for achieving the goal. The qualities of the leader
are natural and inborn. It is an art & science. Leaders must maintain his separate identity
.Leadership is a dynamic process and it involves influence, direction & guidance.
Definitions:
According to Chester Barnard, “Leadership is the quality of the individual where
by he guides the people on there activities in organized efforts.” According to Koontz &
Donnell, “Leadership is influencing people to follow you & work willingly for the
advancement of common goal.”
Leadership is the process of influencing group activities toward achievement of
goals in a given situation.
Thus the leadership may be defined as
L = F (f, g, w, s)
L = Leadership
F = is a function of (or depends upon)
f = followers
g = goal
w = willingness on the post of followers
s = a given situation
FEATURES OF LEADERSHIP
1. Co-existence:
Leadership cannot function in isolation and it cannot be conferred or ordered but it must
be learned.
2. Functional relationship:
The relationship between a leader and the followers is functional. It is not a mere
passive status but provides the basis for some definite activity.
3. Situational:
Leadership is the interpersonal influence relationship exercised in a situation and in the
abstract. Leadership cannot be same in every situation, but is bound to change according
to need of situation.
 4. Communication of interests:
There must be a proper communication between a leader and his followers. He should
try to reconcile differences and bring out a workable compromise between the goals of
the organization which he presents.
NATURE/CHARACTERISTICS OF LEADERSHIP
1. Leadership is a personal quality. It is ability to induce subordinates of followers to
work with confidence and zeal towards the achievement of organizational goals.
Leadership is the ability to form a group of followers voluntarily, without the use of coercion.
2. The essence of leadership is followers. It is the willingness of people to follow that
makes a person a leader. People accept a person as their leader when they feel that he can
satisfy their needs and goals.
3. Leadership is a process of interpersonal influence by which one person influences
others in a situation to strive willingly towards the realization of common goals.
4. Leadership involves a community of interests between the leader and his
followers. The objectives of both are one and the same.
5. Leadership is a continuous process of influencing behaviour of his followers.
An individual is a leader when he is accepted as a leader by a group of persons and there is
communication between the leader and the group.
6. Leadership is exercised in a particular situation at a given point of time and under
a specific set of circumstances. The effectiveness of leadership depends upon the situational
variables. Different leadership styles will be appropriate under different circumstances. The
leadership is an dynamic art.
7 Leadership is a reciprocal relationship. A leader not only influences his group but at
the same time is influenced by it.
Thus leadership is a psychological process of influencing followers and providing
guidance to them. Leadership is essential to influence people to achieve mutually
compatible objectives. Hence all organizational success can be attributed to leadership.
PRINCIPLES OF LEADERSHIP
Principles are given by Koontz & Donnell: -
1. Principle of Harmony: -
The harmony of the objectives must be followed by proper leader. They must see
that they have understood their personal goals in the organization, to maintain harmony
of objectives in the enterprise.
2. The principle of motivation: -
Motivation is not a simple task. The manager is responsible for this, should make
motivational program by:
A) Carefully giving proper reward structure.
 B) Looking it from a situational point of view.
3. The principle of supplemental use of informal organization: -
The manager should make proper communication with his sub-ordinates. The
informal organization works as an effective tool in the organization.
4. Principle of maximum clarity in the communication: -
When there is no proper communication then organization can not achieved its goals.
Communication must be clear so that each individual will understood what they want to
achieve & he will give proper co-operation.
5. The principle of leadership: -
Manager will act as a effecting leader when he knows correctly the motivating
factor & application of it.
IMPORTANCE OF LEADERSHIP
1. Leadership serves as a motive to group efforts. Management has to provide
leadership in the organization in order to get work done by others. Leadership becomes
important for teamwork & co-operation. Manager as a leader can influence any group for
achieving goals & high level of performance.
2. Leadership is an important authority. A manager can exercise authority in
managing the members. Authority helps him for effective leadership. Leadership contains
proper direction, inspiration in people & accomplishment of goals.
3. Leadership provides a basis for co-operation in several ways. Two way
communications, man to man personal relationship, use of participation & creation of
opportunity for needed satisfaction are important. It will lead to increase understanding.
4. In leadership there is emphasis on human performance. Leadership is needed at all
levels of management from top to bottom. Management is transformed as a social process
with leadership action. It is a social scheme of leadership that to achieve objective with proper
utilization of people.
THEORIES OF LEADERSHIP
Great man theory of leadership:
One of the early notions of leadership, which is still popular in certain circle, is that
leadership is an inborn quality. This is the great man theory of leadership that asserts
that leaders are born and not made. According to this theory, leadership calls for certain
qualities like charm, persuasiveness, commanding personality , high degree of intuition,
judgment, courage, intelligence, aggressiveness and action orientation are such nature that they
cannot be taught or learnt in a formal sense.
In other words, leaders are born or sometimes inherited in family from generation
to generation. It is said that history is nothing but the biographies of great men and women.
They were great leaders of their time because they were inherently endowed with
leadership traits and skills. They were not trained in leadership nor did they acquire
any leadership skills in their lives, such skills were natural to them. They had an
instinctive urge to assume leadership and had an inborn will to achieve greatness and success.
The further implications of the theory that leaders are born and not made are:
1. Leaders are gifts of god to mankind. A measure of divinity is attributed to
leaders and their actions.
2. Everyone cannot aspire to become a leader and to attain greatness.
3. The inborn leadership qualities alone are necessary and sufficient for a leader to
exercise influence over his followers and to become successful.
4. Leadership qualities and effectiveness are independent variables. Situational
factors like the nature and needs of followers, the demand of task and the general socio-
economic environment have little or no influence on a leader’s effectiveness.
5. The theory believes that individual can’t be trained for assuming leadership
positions and roles. Leadership qualities cannot be transmitted through education and
exposure.
Great Man theory of leadership carries some credibility to the extent that leaders
in general and great leaders in particular have certain mystique about them and are
viewed with respect by their followers.

DIFFERENT STYLES OF LEADERSHIP

1) Autocratic style: -
Under this style of leadership, all decisions are taken by the leader. The authority
& power is vested in the hands of leader. There is no participation by sub-ordinates in
decision making process. Leader never allows his sub-ordinates to think or participate in
the decision making. He gives order & assign task without taking sub-ordinate into confidence.
Normally sub-ordinates dislike this type of leadership.
Advantages: -
1. It provides strong motivation & reward for the leader.
2. No delay in the process of decision making.
3. Responsibility can be easily fixed.
Disadvantages: -
1. It creates low Morale & less confidence in subordinates.
2. Ideas and capabilities of subordinates are not fully utilized.
3. Subordinates will never get an opportunity for development.
Autocratic leadership may be appropriate when subordinates are uneducated, unskilled,
lack of knowledge & experience in modern competitive world. This type of leadership
becomes less desirable for the employees.
 2) Democratic style or participative style: -
The participative leadership allows an active participation of the subordinates in the
process of decision making. The leaders adopting this style of leadership always allow
participation of his sub-ordinates in the process of decision making. The leaders follow
majority of opinions which are expressed in a group & his decision is always depend
upon these. The relationship between leaders & sub-ordinate is friendly. It creates positive
impact on subordinates. This style of leadership is preferred by the subordinates &
managers.
Advantages: -
1. It creates job satisfaction & increases the moral of subordinates.
2. It develops positive attitude & reduces resistance to change.
3. It helps to think over creative ideas of all sub-ordinates.
Disadvantages: -
1. Participative style is time consuming & delays in decision making.
2. These types do not yield positive results.
3. It requires more communication between subordinates & superiors.
4. When leader is incompetent it will create problems.
This type of leadership is considered to be more effective than autocratic style. It is
more useful in this competitive world as it helps to increase productivity.
3) Free-rein style: -
Unlike autocratic style free-rein style falls on other extremes. It includes complete
surrender of decision making power to a group leader. A leader leaves all the control
& decisions with subordinates. Leader leaves all responsibility & most of the work of
him to the group, interference of a leader is very less. It is known as lazy fair & permissive
style. In this style a leader gives complete freedom to his group & sub-ordinate in their
work.
Advantages: -
1. Maximum development of sub-ordinate.
2. Full utilization of the capacity of sub-ordinate.
3. It creates job satisfaction & increase Morale of sub-ordinate.
4. This style produces good & quick results when sub-ordinates are highly
educated & brilliant.
Disadvantages: -
1. Sub-ordinate does not get guidance to leader.
2. It ignores the contribution of leader just as autocratic style where contribution
sub-ordinate is totally ignored.
STYLES OF LEADERSHIP
QUALITIES OF A LEADER
1. Physical and mental vigour:
A leader should be ready to work hard. His physical stamina and mental vigour to
sustain long and irregular hour of work is the most required to be successful.
2. Ability to understand others:
A leader should possess emotional feelings such as confidence, respect, love
and faith. He should be able to analyze the problems rationally and logically the leader must
share with his followers and at the same time must influence them.
3. Quick grasping:
A leader should understand human psychology. His grasping of situation should be
quick and decision should also be communicated at the earliest. He should possess
understanding of human behavior, emotions, sentiments, needs, motives etc. This needs
maturity of mind and scientific way of approach.
4. Initiative:
The leader must possess certain creative abilities, quality of imagination, invention
and courage to face realities of life boldly.
5. Ability to inspire:
The leader must have the knowledge of men working under him. He must be
skillful in handling human relations that helps to inspire subordinates.
6. Ability to communicate:
A leader should be good at communication ideas, feelings, decisions, orders etc. He
should be a good and effective speaker, writer so that he will be able to inform,
stimulate and direct his subordinates.
7. Acceptance of responsibility:
A reliable leader is one who is prepared to shoulder the responsibility for the
consequences of any steps he takes. He has to be aware of the duties and obligations
associated with the position he holds.
8. Intelligence and technical competence:
A leader should possess a thorough knowledge of the theory and practice of his job.
With this quality, he can perform the functions of planning, organizing, directing and
controlling.
9. Motivation:
In order to motivate others, one must be well motivated. The desire to lead
should come from within. If a person is forced to do his job under the fear, he
would behave like a follower than a leader.
10. Flexibility:
A leader should be ready to absorb and adopt new ideas and views of others as per
demanded by the situation. He should not be critical of others. He should be ready to accept
others’ views and alter his decisions. Open-mindedness of a leader makes the leader more
identified with the group.
11. Impressive personality:
A leader should have an impressive and pleasing personality. He must possess
cheerful and an optimistic outlook. He must have physical mad mental health in order to
influence others and induce them to work with energy, vigour, energy and creativity.
 INTRODUCTION - COMMUNICATION
The word communication is derived from the Latin word “Communis” which
means common i.e. sharing of information. Communication is transferring some
information and understanding of that information from one person to
another.Communication is the sum of all things one person does when he wants to
createunderstanding in the mind of others. Not only the human beings but also animals,
plants communicate between themselves. The main purpose of communication is to
convey ideas, thoughts, and opinions from one person to others.
Definition:
According to Keith Devis: “Communication is the process of passing information and
understanding from one person to other. It is essentially a bridge of meaning between people
by using this bridge of meaning a person can safely cross the ruin of misunderstanding
that separates all people.
According to Leland Brown:
“Communication is the transmission and interchange of facts, ideas, feelings or course of
action.
According to George Terry:
“Communication is a continuous and thinking process dealing with the transmission
and interchange with understanding of ideas, facts and course of action.
FEATURES OF COMMUNICATION
1. Necessity of receiver and sender:
Communication cannot place at least there are 2 persons. One is the receiver
and other is the sender.
2. Medias of communication:
There are numerous media of communication, e.g. TV, telephone, newspaper,
symbols, etc.
3. Continuous process:
Communication is continuous and on going process.
4. Facts and feelings:
Communication deals with exchange and transmission of facts and feelings.
5. Understandable information:
Understandable information should be exchanged in proper communication. If the
information is not understood communication cannot take place.
ELEMENTS OF COMMUNICATION
1. Sender: The person who speaks out or sends a written message or ideas to other
person.
2. Receiver: The receiver is the person to whom the message is communicated.
3. Message of communication: The information order, instruction i.e. to be communicated
that exists in the mind of communicator.
4. Encoding: It is the actual content of communication. The communicator organizes
his ideas into a series of symbols such as words, signs, actions, pictures, etc. which
will be communicated to receiver.
5. Decoding: The receiver converts the symbols received from the sender to give him
the meaning of the message.
6. Ideas: It refers to the subject of communication which may include opinion
suggestion, ideas, orders, etc.
7. Channel: These symbols are transmitted to the receiver through certain media, for
e.g.TV, telephone, radio, etc.
8. Feedback: Feedback refers to the reply or response of the receiver. It is always directed
towards sender.
PROCESS OF COMMUNICATION
1. Source :
When an idea or information is generated in the sender’s mind the communication
cycle begins. If this information is to be communicated to the other person it must have
some purpose. The sender should have some important information guidelines which are
essential for the receiver.
2. Encoding :
The first step of this process is encoding. The sender puts the ideas and thoughts
into some form of message which may be oral or written. It may be telegraph, a letter
or in a verbal talks. When the sender sends the information he should be aware that
receiver has some knowledge regarding the same. The success of the person in the
communication depends upon his writing skills, his reading and speaking abilities, facial
expressions, sound words are all signals. The choice of the signals should be made
carefully so that they can be properly understandable and suitable for the receiver.
Encoding means reducing ideas and transferring them into signals. The most common form
of encoding is using words.
3. Dispatch and reception :
A message is the actual physical product from encoding .When we speak, speech
is the message and when we write, writing is the message. The message is depended
upon the symbols and contents used. For sending the message some medium has to be
related. It may be face to face communication or written communication. The encoded message
is dispatched to its destination depending upon the efficiency of the medium used. There
may sometime interval between dispatch and reception. For e.g. face to face
communication reach immediately. But a letter takes 2 to 3 days to reach to its proper
destination.
4. Decoding :
Receiver takes the message and tries to discuss the meaning of it. He translates the symbols,
ideas that can be understood by him. The process of retranslation is called as decoding. For that
the receiver must be skillful in reading .So if the message is properly encoded by the sender
and decoded by the receiver then it is a fair communication.
5. Receiver’s response :
When message has been decoded by the receiver he immediately gives the
response. This response is present in his mind in the form of ideas and emotions.
6. Feedback :
Feedback is the response which is communicated back to the sender. Feedback again includes
the process of encoding, dispatch, reception and decoding. So the receiver of the message
becomes sender and original sender becomes the receiver. Feedback can be given by using
same signals or different signals. One cycle of the communication is completed by decoding
of feedback. In face to face communication both the sender and receiver continuously
give feedback. The responses likely to be as rewards are called as positive feedback and
the responses likely to be as punishment are called as negative feedback.
IMPORTANCE OF COMMUNICATION
1. Communication must be for each and every business. A good business can be done with
effective communication only.
2. For maintaining proper co-ordinance in various department of business, up to date
communication system has to be established.
3. Effective communication reduces the gap between management and employees.
4. Communication plays an important role in negotiation.
5. Acquiring excellent communication skill is an important qualification.
6. It is a tool of collecting information.
7. Communication helps in exchanging ideas and information.
PRINCIPLES FOR EFFECTIVE COMMUNICATION
1. Principle of clarity :
Whenever an idea or message is ready for the communication the sender should give
the attention towards the clarity of message. Because of the clarity the message can be
understood by all people at various levels. If it is not understood by the receiver it can
be said that there is no effective communication.
2. Principle of consistency :
Any person who wants to communicate should have the idea and thought of the
message. There should not be any difference between the statements and action of sender.
3. Principle of completeness :
The messages, ideas, thoughts which are to be communicated should be adequate and
complete in all respects. Inadequate statement may lead to unnecessary confusion.
4. Principle of time element :
While conveying the message the sender has to take into consideration the time factor.
If the message is not conveyed in proper timing it may result in failure of expected results.
5. Principle of flexibility :
Any type of organization should have a perfect system of communication. It should be
flexible to suit the changing requirements of the business. The organization should be
able to adjust according to needed techniques.
6. Principle of integration :
For achieving the goals of the organization it is necessary to prepare the Integrated
System of communication.
7. Principle of information :
Sender of the message must have perfect clarity in his mind about what is to be
communicated. There should be sufficient information with the senders so that he can
communicate effectively Information plays an important role in communication
8. Principle of feedback :
Communication requires good management to operate effectively and efficiently.
When the communicators are responded by proper feedback system it enhances the speedy
growth or progress of the organization.

TYPES OF COMMUNICATION

A. On the basis of expressions:

1. Oral Communication:
This is the important category of communication. Oral communication helps to built up
human relationship. Words are the symbols that express our thoughts about what we see or
think about.
Purposes:
1. Sharing information
2. Directing employees
3. Decision making
4. Training and development
 5. Reporting progress and performance
Advantages:
1. Saves time and money :
It saves time and money so it is very economically. There is no other device
which is so short and simple.
2. Personal touch :
Verbal communication needs a personal touch. It is more effective because of
facial expression tones, which make communication effective and efficient.
3. Easy understanding :
In verbal communication relations and responses can be quickly and easily
accepted doubts are easily cleared. Queries can be easily simplified so communication
becomes easy and simple.
4. More flexibility :
Oral communication is more flexible. No record of this is kept. One is free to
modify his comments.
5. Verbal communication is the only way during the period of emergency.
Disadvantages
1. Unsuitable for lengthy matter :
If the matter to be expressed is lengthy or to be communicated to a large
number of persons then verbal communication becomes unsuitable.
2. Absence of any permanent record :
Verbal communication cannot be produced again and again. If it is to be repeated
at intervals it will have to be in writing as proof.
3. Temporary impact :
In most of the cases the impact of oral communication is temporary.
4. Misunderstanding :
Oral communications are likely to be misunderstood and misinterpreted because it
depends upon the nature of the sender and the receiver.
5. Methods of records :
When subject matter of communication has to be maintained as record, verbal
communication will fail to serve the purpose. For e.g. policy statements, letters, purchase
orders should be in writing.
6. Time consuming :
 Sometime verbal communication becomes time consuming in meeting and
conferences when subject matter has to be repeated after certain intervals.
Medias of oral communication
1. Face to face communication
2. Telephonic talk
3. Social gatherings
4. Conferences or meetings
5. Demonstrations
6. Interviews, lectures, etc.
2. Written communication:
When information is conveyed by writing, typing, painting or any other
mechanical means it is called as written communication. Speech comes to us naturallyand
spontaneously but writing comes after practice and careful organization of thoughts.
Purpose:
1. Clarity of message
2. Completeness
3. Sequence
4. Consistency
5. Accuracy
Advantages:
1. It is convenient for distantly placed people :
The written communication is the only means of communication where the
communicator and recipient are at distant place and even telephonic conversation is not
very much possible.
2. Suitability :
Where the communication is lengthy and needs a clarification and is meant for large
number of persons, written communication is useful.
3. Future reference :
When the subject matter is to be preserved for the future such as policy matters,
instructions, secret orders, etc. can only be effectively communicated through written
communication.
4. Helpful in remaining disputes :
Written communication provides a permanent record and is helpful in reducing
disputes as it can be referred as evidence.
Disadvantages:
1. Time consuming and expensive :
In the case of written communication everything is in writing which takes more
time and money. Face to face contact may be short and quick but written communication
must be long and meaningful.
2. Additions are difficult :
It is not always possible to reduce anything in writing and if any point is left out
additional written communication may become a necessity which is expensive and takes
more time.
3. Chances of leakage :
Oral talks may remain secret but there are greater chances of leakage in the
case of written communication.
4. No flexibility :
These types of communications are very formal and there is no personal touch.
Once it is transmitted it cannot be withdrawn.
Medias of written communication:
1. Letters
2. Handbill
3. Pamphlets and leaflets
4. Memorandum, articles, reports
5. Written speech
6. Telegrams
7. Books, periodicals, magazines, etc.
B. On the basis of organizational structure:
1. Formal Communication:
It is mostly in writing. These are generally associated with the particular position of the
receiver in that structure. For e.g. when the general manager instructs his subordinates as a
superior authority it is a formal communication.
2. Informal Communication:
These communications are free from all the formalities they are based on informal
relationships between the parties. It may be conveyed by simple smile, glance or silence.
C. On the basis of direction
1. Upward communication:
Communication is termed as upward if it flows from subordinates to their superior
levels such communication includes reaction and suggestions from employees. This type
of communication is considered as a main source of motivation for employer.

2. Downward communication:
Communication is termed as downward if it flows from the uppermost level of
management towards the operating level. It includes rules, order, regulations, installations,
etc. They are directive in nature.

3. Horizontal communication:
It takes place between two subordinates working at the same level i.e. between two or
more persons who are on equal level. All these communication may be verbal or
written.
Non-verbal communication:
Communicating a message without using words or sequences of words is termed
as non-verbal communication. It is a wordless communication. In simple terms non-verbal
communication includes all messages other than those expressed in oral or written words.
Non-verbal message express true feelings in more accurate manner than the spoken or
written language. Both kinds of data can be transmitted intentionally or unintentionally.
Simple symbols or friendliness just expressed in words.
 Media of Non-verbal communication:
1. Sign language:
Marks or symbols used to mean something is termed as sign language. For e.g. different
traffic symbols, neon signs, etc.
2. Action language:
It is a language of movement. By action one may knowingly or unknowingly be
communicate to others. Actions speak louder than words. The language system of deaf
people is the example of action language.
3. Objective language:
This medium of non-verbal communication indicates display and arrangement of
material things like clothing, ornaments, books, buildings, etc. Dress of political
leaders, religious heads, lawyers, doctors, nurses; sportsmen differ from one to another.
Objective language is a non verbal message communicated through appearance of
objects.
4. Silence:
Silence is an effective way of communication. In the number of situations, no
response or no reply is recorded within a specific period then it is a silence.
Silence is considered as equivalent to speech.
5. Demonstration:
It is a process of showing how something works. It indicates a display of exhibition
of how something works. Demonstration is made as a mean of emphasis on a
subject matter under consideration. Demonstration provides a clear and better
understanding of a product.
6. Time:
Time also conveys the message. It is an important factor which is precise and
valuable. In group activities in any organization in certain situation like arriving at an
appointment late or before time communicates something. A telephone call at too early
or late night conveys significant message.