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Henry Fayol, a French industrialist, developed the theory of management.

According to him,
managerial excellence is a technical ability and can be acquired. He developed theories and
principles of management which are universally accepted and make him universalistic. He was
pioneer of the formal education in management. Fayol's principles of management meet the
requirements of modern management. Henry Fayol, offered fourteen principles of management for
the first time in 1916. During the period of 1920-40 in the U.S. many authors did hard work in
developing and testing various principles of management. Today, there is a very lengthy list of
management principles and it is not possible to give an exhaustive lot of these management
principles. Here, we are giving some important principles of management.
Henry Fayol's Principle of Management
Followings are the 14 principles of management developed by the Henry Fayol:1.
Division of Work:
According to Henry Fayol under division of work, "The worker always on the same post, the
manager always concerned with the same matters, acquire an ability, sureness and accuracy which
increases their output. In other words, division of work means specialization. According to this
principle, a person is not capable of doing all types of work. Each job and work should be assigned to
the specialist of his job. Division of work promotes efficiency because it permits an organizational
member to work in a limited area reducing the scope of his responsibility. Fayol wanted the division
of work not only at factory but at management levels also.
Authority and Responsibility:
Authority and responsibility go together or co-existing. Both authority and responsibility are the two
sides of a coin. In this way, if anybody is made responsible for any job, he should also have the
concerned authority. Fayol's principle of management in this regard is that an efficient manager
makes best possible use of his authority and does not escape from the responsibility. In other words
when the authority is exercised the responsibility is automaticallygenerated.3.
According to Henry Fayol discipline means sincerity about the work and enterprise, carrying out
orders and instructions of superiors and to have faith in the policies and programs of the business
enterprise, in other sense , discipline in terms of obedience, application, energy and respect to
superior. However, Fayol does not advocate warming, fines, suspension and dismissals of worker for
maintaining discipline. These punishments are rarely awarded. A well disciplined working force is
essential for improving the quality and quantity of the production.
Unity of Command:
A subordinate should take order from only one boss and he should be responsible and accountable
to him. Further he claimed that if the unit of command is violated, authority is undermined,
disciplined in danger, order disturbed and stability threatened. The violation of this principle will
face some serious consequences. In this way, the principle of unity of command provides the
enterprise disciplined stable and orderly existence. It creates harmonious relationship between

officers and subordinates, congenial atmosphere of work. It is one of the Fayol's important essential
principles of management.5.
Unity of direction:
Fayol advocates "One head and one plan" which means that group efforts on a particular plan be led
and directed by a single person. This enables effective co-ordination of individual efforts and energy.
This fulfils the principles of unity of command and brings uniformity in the work of same nature. In
this way the principle of direction create dedication to purpose and loyalty. It emphasizes the
attainment of common goal under one head.6.
Subordination of individual interests to general interests:
the interest of the business enterprise ought to come before the interests of the praise individual
workers. In other words, principle of management states that employees should surrender their
personnel interest before the general interest of the enterprise. Sometimes the employees due to
this ignorance, selfishness, laziness, carelessness and emotional pleasure overlook the interest of the
organization. This attitude proves to be very harmful to theenterprise.7.
Fair Remuneration to employees:
According to Fayol wage-rates and method of their payment should be fair, proper and satisfactory.
Both employees and ex-employers should agree to it. Logical and appropriate wage-rate and
methods of their payment reduces tension and differences between workers and management,
create harmonious relationship and a pleasing atmosphere of work. Further Fayol recommends that
residential facilities be provided including arrangement of electricity, water and facilities.8.
Centralization and Decentralization:
There should be one central point in the organization which exercises overall direction and control of
all the parts. But the degree of centralization of authority should vary according to the needs of
situation. According to Fayol there should be centralization in small units and proper
decentralization in big organization. Further, Fayol does not favor centralization or decentralization
of authorities but suggests that these should be proper and effective adjustment between
centralization and decentralization in order to achieve maximum objectives of the business. The
choice between centralization and decentralization is made after taking into consideration the
nature of work and the efficiency, experience and decision-making capacity of theexecutives.9.
Scalar chain:
the scalar chain is a chain of supervisors from the highest to the lowest rank. It should be shortcircuited. An employee should feel the necessity to contact his superior through the scalar chain. The
authority and responsibility is communicated through this scalar chain. Fayol defines scalar chain as
"the chain of superiors ranging from the ultimate authority to the lowest rank." The flow of
information between management and workers is a must. Business opportunities must be
immediately avoided of. Sowe must make direct contact with the concerned employee. Business
problems need immediate solution, so we cannot always depend on the established scalar chain. It
requires that direct contact should be established.

According to Fayol there should be proper, systematic and orderly arrangement of physical and
social factors, such as land, raw materials, tools and equipments and employees respectively. As per
view, there should be safe, appropriate and specific place for every article and every place to be
used effectively for a particular activity and commodity. In other words, principles that every piece
of land and every article should be used properly, economically and in the best possible way.
Selection and appointment of the most suitable person to every job. There should be specific place
for everyone and everyone should have specific place. This principle also stresses scientific selection
and appointment of employees on every job.11.
The principle of equality should be followed and applicable at every level of management. There
should not be any discrimination as regards caste, sex and religion. An effective management always
accords sympathetic and human treatment. The management should be kind, honest and impartial
with the employees. In other words, kindness and justice should be exercised by management in
dealing with their subordinates. This will create loyalty and devotion among the employees. Thus,
workers should be treated at par at every level.12.
Stability of use of personnel:
Principle of stability is linked with long tenure of personnel in the organization. This means
production being a teamwork, an efficient management always builds a team of good workers. If the
members of the team go on changing the entire process of production will be disturbed. It is always
in the interest of the enterprise that its trusted, experienced and trained employees do not leave the
organization. Stability of job creates a sense of belongingness among workers who with this feeling
are encouraged to improve the quality and quantity of work.13.
Under this principle, the successful management provides an opportunity to its employees to
suggest their new ideas, experiences and more convenient methods of work. The employees, who
has been working on the specific job since long discover now, better alternative approach and
technique of work. It will be more useful, if initiative to do so is provided to employees. In simple, to
ensure success, plans should be well formulated before they areimplemented.14.
Spirit of Co-operation (Spirit de crops):
In order to achieve the best possible results, individual and group efforts are to be effectively
integrated and coordinated. Production is a team work for which the whole-hearted support and cooperation of the members at all levels is required. Everyone should sacrifice his personal interest
and contribute his best energies to achieve the best results. It refers to the spirit of loyalty, faith
fullness on the part of the members of the group which can be achieved by strong motivating
recognition and importance of the members for their valuable contribution, effective coordination,
informal mutual social relationship between members of the group and positive and constructive
approach of the management towards workers' welfare.

Leadership Theories
By Steve Wolinski on April 21, 2010
257 68 173

There is a wide and ever growing variety of theories to explain the concept and practice
of leadership. I will provide a brief overview of the more dominant or better known
theories. I hope that others will share their thoughts on whether this list neglects any
theories of note. In the future we can discuss some of the emerging leadership
theories/approaches such as adaptive, authentic, and appreciative. It is important to
note that this submission attempts to provide an overview of
leadership theoriesversus models. I view models as attempts to functionalize the more
theoretical aspects of leadership and make them easier to put into play by organizations
and consultants. This is, in and of itself, an important activity.
Most theories view leadership as grounded in one or more of the following three
perspectives: leadership as a process or relationship, leadership as a combination
of traits or personality characteristics, or leadership as certain behaviors or, as they are
more commonly referred to, leadership skills. In virtually all of the more dominant
theories there exist the notions that, at least to some degree, leadership is
a process that involves influence with a group of people toward the realization
of goals. I will say on the front end that, in my opinion, leadership is a dynamic and
complex process, and that much of what is written these days tends to over-simplify this
process. My goal here is to provide an overview that keeps things simple, without
crossing into over-simplification, and for the most part refraining from any critiquing of
the various theories. I will leave that to my fellow bloggers for now.
Trait Theory
This theory postulates that people are either born or not born with the qualities that
predispose them to success in leadership roles. That is, that certain inherited qualities,
such as personality and cognitive ability, are what underlie effective leadership. There
have been hundreds of studies to determine the most important leadership traits, and
while there is always going to be some disagreement, intelligence, sociability, and
drive (aka determination) are consistently cited as key qualities.
Skills Theory
This theory states that learned knowledge and acquired skills/abilities are significant
factors in the practice of effective leadership. Skills theory by no means disavows the
connection between inherited traits and the capacity to be an effective leader it simply
argues that learned skills, a developed style, and acquired knowledge, are the real keys
to leadership performance. It is of course the belief that skills theory is true that
warrants all the effort and resources devoted to leadership training and development
Situational Theory
This theory suggests that different situations require different styles of leadership. That
is, to be effective in leadership requires the ability to adapt or adjust ones style to the
circumstances of the situation. The primary factors that determine how to adapt are an
assessment of the competence and commitment of a leaders followers. The assessment
of these factors determines if a leader should use a more directive or supportive style.
Contingency Theory
This theory states that a leaders effectiveness is contingent on how well the leaders
style matches a specific setting or situation. And how, you may ask, is this different
from situational theory? In situational the focus is on adapting to the situation, whereas

contingency states that effective leadership depends on the degree of fit between a
leaders qualities and style and that of a specific situation or context.
Path-Goal Theory
This theory is about how leaders motivate followers to accomplish identified
objectives. It postulates that effective leaders have the ability to improve the motivation
of followers by clarifying the paths and removing obstacles to high performance and
desired objectives. The underlying beliefs of path-goal theory (grounded in expectancy
theory) are that people will be more focused and motivated if they believe they
are capable of high performance, believe their effort will result in desired outcomes, and
believe their work is worthwhile.
Transformational Theory
This theory states that leadership is the process by which a person engages with others
and is able to create a connection that results in increased motivation and morality in
both followers and leaders. It is often likened to the theory of charismatic
leadership that espouses that leaders with certain qualities, such as confidence,
extroversion, and clearly stated values, are best able to motivate followers. The key in
transformational leadership is for the leader to be attentive to the needs and motives of
followers in an attempt to help them reach their maximum potential. In addition,
transformational leadership typically describes how leaders can initiate, develop, and
implement important changes in an organization. This theory is often discussed in
contrast with transactional leadership.
Transactional Theory
This is a theory that focuses on the exchanges that take place between leaders and
followers. It is based in the notion that a leaders job is to create structures that make it
abundantly clear what is expected of his/her followers and also the consequences (i.e.
rewards and punishments) for meeting or not meeting these expectations. This theory is
often likened to the concept and practice of management and continues to be an
extremely common component of many leadership models and organizational structures.
Servant Leadership Theory
This conceptualization of leadership reflects a philosophy that leaders should be servants
first. It suggests that leaders must place the needs of followers, customers, and the
community ahead of their own interests in order to be effective. The idea of servant
leadership has a significant amount of popularity within leadership circles but it is
difficult to describe it as a theory inasmuch as a set of beliefs and values that leaders are
encouraged to embrace.
Closing Comments and Questions
I have a bias toward trait, skills, and transformational theories. I am a psychologist and
there is no doubt in my mind that people are born with certain qualities. But I
am equally sure innate traits inevitably become fully interwoven with a persons acquired
knowledge and skills. And I lean toward transformational theory because of how it views
the practice of leadership as, more than anything else, relational interaction.
So how can these theories apply to ones work? Well, in my work, if I am hired to
help an organization select a leader via an assessment process, some of the theories
become readily apparent. To start, it is important that the first step in the assessment is
a meeting in which the client clarifies the qualities needed for the specific role and paint
a picture for me of the organizational culture. By doing this I am able to be look for
those qualities, skills, knowledge, to assure finding someone that is a good fit for the job
and the culture (Contingency Theory). The assessment process includes tools to
measure personality, cognitive abilities, and drive (Trait Theory), adaptability

(Situational Theory), and sociability (Transformational Theory). It also involves, through

interviews and work simulations, an evaluation of a persons work-related skills and
knowledge of the business (Skills Theory).

Organizational effectiveness is the concept of how effective an organization is in

achieving the outcomes the organization intends to produce.[1] The idea of organizational
effectiveness is especially important for non-profit organizations as most people who donate
money to nonprofit organizations and charities are interested in knowing whether the
organization is effective in accomplishing its goals.
However, scholars of nonprofit organizational effectiveness acknowledge that the concept has
multiple dimensions [2] and multiple definitions. [3] For example, while most nonprofit leaders
define organizational effectiveness as 'outcome accountability,' or the extent to which an
organization achieves specified levels of progress toward its own goals, a minority of nonprofit
leaders define effectiveness as 'overhead minimization,' or the minimization of fundraising and
administrative costs.
According to Richard et al. (2009) organizational effectiveness captures organizational
performance plus the myriad internal performance outcomes normally associated with more
efficient or effective operations and other external measures that relate to considerations that are
broader than those simply associated with economic valuation (either by shareholders,
managers, or customers), such as corporate social responsibility.[4]
An organization's effectiveness is also dependent on its communicative competence and ethics.
The relationship between these three are simultaneous. Ethics is a foundation found within
organizational effectiveness. An organization must exemplify respect, honesty, integrity and
equity to allow communicative competence with the participating members. Along with ethics and
communicative competence, members in that particular group can finally achieve their intended
Foundations and other sources of grants and other types of funds are interested in organizational
effectiveness of those people who seek funds from the foundations. Foundations always have
more requests for funds or funding proposals and treat funding as an investment using the same
care as a venture capitalist would in picking a company in which to invest.
Organizational effectiveness is an abstract concept and is difficult for many organizations to
directly measure. Instead of measuring organizational effectiveness directly, the organization
selects proxy measures to represent effectiveness. Proxy measures may include such things as
number of people served, types and sizes of population segments served, and the demand
within those segments for the services the organization supplies.
For instance, a non-profit organization which supplies meals to house bound people may collect
statistics such as the number of meals cooked and served, the number of volunteersdelivering
meals, the turnover and retention rates of volunteers, the demographics of the people served, the
turnover and retention of consumers, the number of requests for meals turned down due to lack
of capacity (amount of food, capacity of meal preparation facilities, and number of delivery

volunteers), and amount of wastage. Since the organization has as its goal the preparation of
meals and the delivery of those meals to house bound people, it measures its organizational
effectiveness by trying to determine what actual activities the people in the organization do in
order to generate the outcomes the organization wants to create.
Organizational effectiveness is typically evaluated within nonprofit organizations using logic
models. Logic models are a management tool widely used in the nonprofit sector in program
evaluation. Logic models are created for specific programs to link specific, measurable inputs to
specific, measurable impacts.[5] Typically, logic models specify how program inputs, such as
money and staff time, produce activities and outputs, such as services delivered, which in turn
lead to impacts, such as improved beneficiary health.
Activities such as administration, fundraising, and volunteer training are important inputs into
organizational effectiveness because although they do not directly result in programmatic results,
they provide the essential support functions needed for the organization to successfully finance
and administer its programs. These other activities are overhead activities that indirectly assist
the organization in achieving its desired outcomes.
However, some nonprofit watchdog agencies regard overhead spending not as indirect program
spending but as in indication of organizational ineffectiveness or inefficiency since funds are not
being spent directly on programs. Cost ratios such as overhead are much simpler to measure
than actual programmatic results and can be easily calculated from publicly available information
disclosed on nonprofit organizations' IRS Forms 990. Several nonprofit watchdog agencies
provide ratings of nonprofit organizations using these data. However, this practice is widely
criticized by scholars and practitioners.[6][7] A nonprofit with low overhead may have ineffective
programs that have no impact, while a nonprofit with relatively higher overhead may be
significantly more effective in terms of achieving meaningful results.[8][9] Some studies suggest
that low overhead may actually reduce organizational effectiveness.[10] Moreover, an organization
with higher overhead is more efficient than one with lower overhead if the organization with
higher overhead achieves the same results at a lower total cost.
The term Organizational Effectiveness is often used interchangeably with Organization
Development, especially when used as the name of a department or a part of the Human
Resourcesfunction within an organization.

Organizational EffectivenessDocument Transcript

1. Organizational effectiveness Organizational effectiveness is the concept of how effective an

organization is in achieving the outcomes the organization intends to produce. The idea of
organizational effectiveness is especially important for non-profit organizations as most people
who donate money to non-profit organizations and charities are interested in knowing whether
the organization is effective in accomplishing its goals. An organization's effectiveness is also
dependent on its communicative competence and ethics. The relationship between these three is
simultaneous. Ethics is a foundation found within organizational effectiveness. An organization
must exemplify respect, honesty, integrity and equity to allow communicative competence with
the participating members. Along with ethics and communicative competence, members in that
particular group can finally achieve their intended goals. Foundations and other sources of grants
and other types of funds are interested in organizational effectiveness of those people who seek
funds from the foundations. Foundations always have more requests for funds or funding
proposals and treat funding as an investment using the same care as a venture capitalist would
in picking a company in which to invest. Organizational effectiveness is an abstract concept and
is basically impossible to measure. Instead of measuring organizational effectiveness, the
organization determines proxy measures which will be used to represent effectiveness. Proxy
measures used may include such things as number of people served, types and sizes of
population segments served, and the demand within those segments for the services the
organization supplies. For instance, a non-profit organization which supplies meals to house
bound people may collect statistics such as the number of meals cooked and served, the number
of volunteers delivering meals, the turnover and retention rates of volunteers, the demographics
of the people served, the turnover and retention of consumers, the number of requests for meals
turned down due to lack of capacity (amount of food, capacity of meal preparation facilities, and
number of delivery volunteers), and amount of wastage. Since the organization has as its goal
the preparation of meals and the delivery of those meals to house bound people, it measures its
organizational effectiveness by trying to determine what actual activities the people in the
organization do in order to generate the outcomes the organization wants to create. Activities
such as fundraising or volunteer training are important because they provide the support needed
for the organization to deliver its services but they are not the outcomes per se. These other
activities are overhead activities which assist the organization in achieving its desired outcomes.
The term Organizational Effectiveness is often used interchangeably with Organization
Development, especially when used as the name of a department or a part of the Human
Resources function within an organization.

2. To be effective and achieve its goals, an organization must successfully respond to

environmental factors. How can the effectiveness of an organization be measured? Various
models of determining organizational effectiveness exist because organizations face different
environments, they produce different products, their organizational members are made up of
different kinds of people, and the organizations are at different stages of development. Each
model is most useful to an organization having a particular combination of these environmental
and organizational attributes. Two different underlying dimensions may be considered to develop
models of organizational effectiveness. The first is the organizations internal versus external
focus. The second dimension is the organizations emphasis on flexibility versus control.
Flexibility allows faster change, whereas control allows a firmer grasp on current operations.
When these two dimensions are drawn at right angles to each other, the first four models of
organizational effectiveness can be plotted. They are the rational goal, open system, internal
process, and human relations models. According to the rational goal model of effectiveness, an
organization is effective to the extent that it accomplishes its stated goals. For example, the
formal goals of the Toronto Blue Jays are to win their division, the American League pennant,
and the World Series. With an open system model an organization is effective to the degree that
it acquires inputs from its environment and has outputs accepted by its environment. The
University of Alberta follows this model when it is concerned about the quality and number of
students applying for admission and what jobs they receive on graduation. The internal process
model focuses on the effectiveness of the internal transformation process. When Hamiltons

Stelco Inc. examines its steel-making methods to determine price and quality competitiveness, it
is focusing on its internal processes. The human relations model focuses on the development of
the organizations personnel. Marlin Travel sends its agents on familiarization trips to expand
their knowledge of specific hotels, cruises, and destinations. The competing values model
requires that an organization scrutinize the balance among the above four effectiveness models.
In this model there are three sets of competing values. The first is the tension between internal
versus external focus. The more the organization focuses on one, the less it can concentrate on
the other. For example Apple Computer has focused externally on its customers and making
computers that are intuitive and easy to use. The computer chip maker Intel has had a more
internal focus on how to make faster and more powerful central processing units at a low price.
The second set of values in competition is flexibility versus control. Flexibility allows quick
response to changing conditions and values innovation.
3. Control values the opposite. Stability and predictability mean that routine activities are
performed well but change is more difficult. The third set of competing values is the relative
concern with the feelings, needs, and development of the people making up the organization
versus the organization and its requirement to accomplish its tasks. A private hospital, for
example, is concerned with how patients are treated and the success rate of surgeries (the
rational goal model). It is also interested in how hospital procedures are performed (the internal
process model) and with the skills and abilities of hospital staff (the human relations model).
Finally, because it is a private hospital and must make a profit to survive, it needs to take into
account how many and what kinds of patients are admitted (the open system model). The
hospital must balance the three sets of competing values in order to be effective. With the
strategic constituencies model an organization would aim to at least minimally satisfy the most
important constituents (or stakeholders) in its environment. The owner of an A&W franchise must
satisfy the customers and A&W head office management. Customers care about the quality and
price of the food as well as the speed and friendliness of service. Head office cares about these
issues along with financial reporting, product promotions, and the stores relationship with its
community. An organization seeking legitimacy survives by acting in a manner seen by other
organizations as legitimate. An example would be producing a business plan and projected
income statement in order to obtain a bank loan. The organization adopting the fault-driven
model of effectiveness seeks to eliminate traces of ineffectiveness in its internal functioning. The
National Aeronautics and Space Administration (NASA) in the United States is a good example.
Its systems are designed with backups to be reliable even if some components fail. Finally, the
organization as a high performing system compares itself to other similar organizations. The
Vancouver Symphony Orchestra can measure ticket sales and customer satisfaction with
performances. But to determine the quality of the orchestra itself, comparison is made to other
orchestras in the world. Effectiveness is seen as the degree to which that comparison is positive.
One method used by high performers to make such comparisons is to examine industry
rankings. An example is the MacLeans magazine ratings of Canadian universities.
Organizational Effectiveness Approaches The creative change biz approach Many company
leaders scratch their heads over the difficulty of implementing technical and process
improvements. Are you one of those leaders? Do your change initiatives get sidetracked or
altogether de-railed?
4. Do you quietly declare victory and move on to another change initiative? Whether they are a
relatively modest effort such as a new order fulfilment system, or computer aided product design,
or wholesale changes to your product development process, change is tough for you and your
employees. Would you like to increase the success rate of your change initiatives? We offer you
an opportunity to do just that. As Organization and Systems Development experts, we offer a
systemic framework for understanding your business challenges, and as experienced coaches,
we can offer you on-going coaching support. In our work with organizations, we apply a systems
view of our clients that greatly improves the success of your change initiative. We use a model
that employs the proverbial three-legged stool: --->People ---> Process ---> Technology --->
People: includes formal structures, informal relationships, and organizational culture Process:
includes manufacturing and business activities such as Lean Thinking and Six Sigma
Technology: includes computers, robots, etc. While it isn't always apparent to managers and
leaders, implementing new Processes and Technology always forces a culture change and quite
often changes in structures and organizational power relationships. Organizational leaders are

more often than not, naive about the impact of the Process and Technology "improvements" to
their organizations. For example: a utility company we worked with implemented a new
computerized order fulfilments system. Employees resisted the change because the new system
completely upended the formal and informal power hierarchy among order fulfilments
techniciansit equalized the playing field between telephone order takers and senior technicians
who saw themselves as engineers. Senior technicians viewed the new system as a Trojan horse:
management's real intent was to weed out higher paid employees. Senior management was
astonished by and unprepared for the revolt. Our expertise is in people systems. Improve your
success rate implementing whatever technical process you wish Lean Systems, Six Sigma,
new order fulfilment processes, etc, by paying attention to the people side. Further, we help you
appropriately integrate structural and people changes that overlooked, will undermine your
initiative. That includes assessing and eliminating outdated and redundant processes and
procedures, implementing new accounting procedures designed to accurately track your new
initiative's ROI, a performance management system that rewards cross-functional collaboration
rather than rewarding only individual performance, coaching for leaders.
5. We teach leaders new ways of assessing and leading their organizations that will sustain the
new systems they are implementing. After all, Rome did not fall in a day, and a century's worth of
habits won't either, no matter how much self-discipline is employed! Strategic Planning - We
provide a systemic approach to planning for the future which ensures that everyone in your
organization is working together toward common objectives. Change Management - We provide
an integrated seven-element model, which emphasizes the importance of quality execution as
well as the appropriate balance of all the change activities. Lean Thinking - We help you
understand the culture change inherent in Lean Thinking, whether it be manufacturing or in any
other part of your organization. We also assist you in creating plans for change that ensure your
successful transition to Lean. Business Start-up - Our consultants have the process and content
expertise and experience to assist you in anticipating and implementing all the components of a
new business start-up. How do we increase organizational effectiveness To increase
organizational effectiveness, winning companies create sustainable competitive advantage by
aligning their talent and business strategies. Mergers or acquisitions, restructurings or shifts in
business strategy are examples of fundamental organizational change that create strong demand
for processes and systems to bring focus and restore the organizations capability to function
effectively. Our organizational effectiveness capability brings value to our clients organizations
by facilitating the integration and alignment of the business strategy with a workable talent
management strategy. At the heart of Right Management's organizational effectiveness
capabilities, is our holistic approach to helping companies build and align the capabilities,
processes, attitudes, and talent needed to more effectively implement its chosen strategy.
Organizational Effectiveness Solutions Strategy-implementation: Right Managements Strategy
Implementation consulting services improve an organizations ability to successfully execute
strategy. This is achieved by focusing on structure, people systems and processes, and to
deliver great customer experiences.
6. Strategic Workforce Alignment Strategic Workforce Alignment is a unique interactive process
for executives to quickly assess and prioritize various workforce strategies, employee needs and
investments. Based on proven Six-Sigma methodologies, individuals use a specially designed
diagnostic process called Right Navigator to prioritize (based on importance and satisfaction) a
comprehensive set of organizational workforce strategies. Chang-Effectiveness Right
Managements Change Effectiveness offerings are designed to support change at all levels of
the organization. Our change management programs assist executives to drive organizational
change, empower managers to lead through change, and enable employees to navigate and
respond to change appropriately. Group-2 (PR No. 07, 08, 09, 10, 11, 12)

Job satisfaction refers to a persons feeling of satisfaction on the job, which

acts as a motivation to work. It is not self-satisfaction, happiness or selfcontentment but satisfaction on the job.

The term relates to the total relationship between an individual and the
employer for which he is paid. Satisfaction does mean the simple feeling
state accompanying the attainment of any goal, the end-state is feeling
accompanying the attainment by an impulse of its objective. Job
dissatisfaction does mean absence of motivation at work. Research workers
differently described the factors contributing to job satisfaction and job
dissatisfaction. Hoppock describes job satisfaction as any combination of
psychological, physiological and environment circumstances that cause any
person truthfully to say that I am satisfied with my job.
Job satisfaction is defined as the pleasurable emotional state resulting from
the appraisal of ones job as achieving or facilitating the achievement of ones
job values. In contrast, job dissatisfaction is defined as the unpleasurable
emotional state resulting from the appraisal of ones job as frustrating or
blocking the attainment of ones job values or as entailing
disvalues. However, both satisfaction and dissatisfaction were seen as a
function of the perceived relationship between what one perceives it as
offering one entailing.

job satisfaction

"Job satisfaction is defined as "the extent to which people like (satisfaction) or dislike (dissatisfaction)
their jobs"
This definition suggests job satisfaction is a general or global affective reaction that individuals hold
about their job. While researchers and practitioners most often measure global job satisfaction, there
is also interest in measuring different "facets" or "dimensions" of satisfaction. Examination of these
facet conditions is often useful for a more careful examination of employee satisfaction with critical job
factors. Traditional job satisfaction facets include: co-workers, pay, job conditions, supervision, nature
of the work and benefits."
Job satisfaction, a worker's sense of achievement and success, is generally perceived to be directly
linked to productivity as well as to personal wellbeing. Job satisfaction implies doing a job one enjoys,
doing it well, and being suitably rewarded for one's efforts. Job satisfaction further implies enthusiasm
and happiness with one's work. The Harvard Professional Group (1998) sees job satisfaction as the
keying radiant that leads to recognition, income, promotion, and the achievement of other goals that
lead to a general feeling of fulfillment.

Importance to Worker and Organization

Frequently, work underlies self-esteem and identity while unemployment lowers self-worth and
produces anxiety. At the same time, monotonous jobs can erode a worker's initiative and enthusiasm
and can lead to absenteeism and unnecessary turnover. Job satisfaction and occupational success
are major factors in personal satisfaction, self-respect, self-esteem, and self-development. To the
worker, job satisfaction brings a pleasurable emotional state that often leads to a positive work
attitude. A satisfied worker is more likely to be creative, flexible, innovative, and loyal.
For the organization, job satisfaction of its workers means a work force that is motivated and
committed to high quality performance. Increased productivitythe quantity and quality of output per
hour worked seems to be a byproduct of improved quality of working life. It is important to note that
the literature on the relationship between job satisfaction and productivity is neither conclusive nor
consistent. However, studies dating back to Herzberg's (1957) have shown at least low correlation
between high morale and high productivity, and it does seem logical that more satisfied workers will
tend to add more value to an organization. Unhappy employees, who are motivated by fear of job
loss, will not give 100 percent of their effort for very long. Though fear is a powerful motivator, it is also
a temporary one, and as soon as the threat is lifted performance will decline.
Tangible ways in which job satisfaction benefits the organization include reduction in complaints and
grievances, absenteeism, turnover, and termination; as well as improved punctuality and worker
morale. Job satisfaction is also linked to a more healthy work force and has been found to be a good
indicator of longevity. And although only little correlation has been found between job satisfaction and
productivity, Brown (1996) notes that some employers have found that satisfying or delighting
employees is a prerequisite to satisfying or delighting customers, thus protecting the "bottom line." No
wonder Andrew Carnegie is quoted as saying: "Take away my people, but leave my factories, and
soon grass will grow on the factory floors. Take away my factories, but leave my people, and soon we
will have a new and better factory"

Creating Job Satisfaction

So, how is job satisfaction created? What are the elements of a job that create job satisfaction?
Organizations can help to create job satisfaction by putting systems in place that will ensure that
workers are challenged and then rewarded for being successful. Organizations that aspire to creating
a work environment that enhances job satisfaction need to incorporate the following:

Flexible work arrangements, possibly including telecommuting

Training and other professional growth opportunities

Interesting work that offers variety and challenge and allows the worker opportunities to "put

his or her signature" on the finished product

Opportunities to use one's talents and to be creative

Opportunities to take responsibility and direct one's own work

A stable, secure work environment that includes job security/continuity

An environment in which workers are supported by an accessible supervisor who provides

timely feedback as well as congenial team members

Flexible benefits, such as child-care and exercise facilities

Up-to-date technology

Competitive salary and opportunities for promotion

Probably the most important point to bear in mind when considering job satisfaction is that there are
many factors that affect job satisfaction and that what makes workers happy with their jobs varies
from one worker to another and from day to day. Apart from the factors mentioned above, job
satisfaction is also influenced by the employee's personal characteristics, the manager's personal
characteristics and management style, and the nature of the work itself. Managers who want to
maintain a high level of job satisfaction in the work force must try to understand the needs of each
member of the work force. For example, when creating work teams, managers can enhance worker
satisfaction by placing people with similar backgrounds, experiences, or needs in the same
workgroup. Also, managers can enhance job satisfaction by carefully matching workers with the type
of work. For example, a person who does not pay attention to detail would hardly make a good
inspector, and a shy worker is unlikely to be a good salesperson. As much as possible, managers
should match job tasks to employees' personalities.
Managers who are serious about the job satisfaction of workers can also take other deliberate steps
to create a stimulating work environment. One such step is job enrichment. Job enrichmentis a
deliberate upgrading of responsibility, scope, and challenge in the work itself. Job enrichment usually
includes increased responsibility, recognition, and opportunities for growth, learning, and

achievement. Large companies that have used job-enrichment programs to increase employee
motivation and job satisfaction include AT&T, IBM, and General Motors (Daft, 1997).
Good management has the potential for creating high morale, high productivity, and a sense of
purpose and meaning for the organization and its employees. Empirical findings show that job
characteristics such as pay, promotional opportunity, task clarity and significance, and skills utilization,
as well as organizational characteristics such as commitment and relationship with supervisors and
co-workers, have significant effects on job satisfaction. These job characteristics can be carefully
managed to enhance job satisfaction.
Of course, a worker who takes some responsibility for his or her job satisfaction will probably find
many more satisfying elements in the work environment. Everett (1995) suggests that employees ask
themselves the following questions:

When have I come closest to expressing my full potential in a work situation?

What did it look like?

What aspects of the workplace were most supportive?

What aspects of the work itself were most satisfying?

What did I learn from that experience that could be applied to the present situation?

Workers' Roles in Job Satisfaction

If job satisfaction is a worker benefit, surely the worker must be able to contribute to his or her own
satisfaction and well-being on the job. The following suggestions can help a worker find personal job

Seek opportunities to demonstrate skills and talents. This often leads to more challenging

work and greater responsibilities, with attendant increases in pay and other recognition.

Develop excellent communication skills. Employers value and reward excellent reading,

listening, writing, and speaking skills.

Know more. Acquire new job-related knowledge that helps you to perform tasks more

efficiently and effectively. This will relieve boredom and often gets one noticed.

Demonstrate creativity and initiative. Qualities like these are valued by most organizations

and often result in recognition as well as in increased responsibilities and rewards.

Develop teamwork and people skills. A large part of job success is the ability to work well with

others to get the job done.

Accept the diversity in people. Accept people with their differences and their imperfections

and learn how to give and receive criticism constructively.

See the value in your work. Appreciating the significance of what one does can lead to

satisfaction with the work itself. This helps to give meaning to one's existence, thus playing a vital role
in job satisfaction.

Learn to de-stress. Plan to avoid burnout by developing healthy stress-management

Assuring Job Satisfaction
Assuring job satisfaction, over the longterm, requires careful planning and effort both by management
and by workers. Managers are encouraged to consider such theories as Herzberg's(1957) and
Maslow's (1943) Creating a good blend of factors that contribute to a stimulating, challenging,
supportive, and rewarding work environment is vital. Because of the relative prominence of pay in the
reward system, it is very important that salaries be tied to job responsibilities and that pay increases
be tied to performance rather than seniority.
So, in essence, job satisfaction is a product of the events and conditions that people experience on
their jobs. Brief (1998) wrote: "If a person's work is interesting, her pay is fair, her promotional
opportunities are good, her supervisor is supportive, and her coworkers are friendly, then a situational
approach leads one to predict she is satisfied with her job" (p. 91). Very simply put, if the pleasures
associated with one's job outweigh the pains, there is some level of job satisfaction

Mood and emotions while working are the raw materials which cumulate to form the affective element
of job satisfaction. (Weiss and Cropanzano, 1996).


Moods tend to be longer lasting but often weaker

states of uncertain origin, while emotions are often more intense, short-lived and have a clear object
or cause.
There is some evidence in the literature that state moods are related to overall job satisfaction.
Positive and negative emotions were also found to be significantly related to overall job satisfaction
Frequency of experiencing net positive emotion will be a better predictor of overall job satisfaction










Emotion regulation and emotion labor are also related to job satisfaction. Emotion work (or emotion
management) refers to various efforts to manage emotional states and displays. Emotion regulation
includes all of the conscious and unconscious efforts to increase, maintain, or decrease one or more
components of an emotion. Although early studies of the consequences of emotional labor
emphasized its harmful effects on workers, studies of workers in a variety of occupations suggest that
the consequences of emotional labor are not uniformly negative.
It was found that suppression of unpleasant emotions decreases job satisfaction and the amplification
of pleasant emotions increases job satisfaction.The understanding of how emotion regulation relates
to job satisfaction concerns two models:


emotional dissonance. Emotional dissonance is a state of discrepancy between

public displays of emotions and internal experiences of emotions, that often follows the
process of emotion regulation.Emotional dissonance is associated with high emotional
exhaustion, low organizational commitment, and low job satisfaction.

Social interaction model. Taking the social interaction perspective, workers emotion

regulation might beget responses from others during interpersonal encounters that
subsequently impact their own job satisfaction. For example: The accumulation of favorable
responses to displays of pleasant emotions might positively affect job satisfaction.
performance of emotional labor that produces desired outcomes could increase job


Job Satisfaction can be an important indicator of how employees feel about their jobs and a predictor
of work behaviours such as organizational citizenship, absenteeism,and turnover. Further, job
satisfaction can partially mediate the relationship of personality variables and deviant work behaviors.
One common research finding is that job satisfaction is correlated with life satisfaction. This
correlation is reciprocal, meaning people who are satisfied with life tend to be satisfied with their job
and people who are satisfied with their job tend to be satisfied with life. However, some research has
found that job satisfaction is not significantly related to life satisfaction when other variables such as
nonwork satisfaction and core self-evaluations are taken into account.
An important finding for organizations to note is that job satisfaction has a rather tenuouscorrelation to
productivity on the job. This is a vital piece of information to researchers and businesses, as the idea
that satisfaction and job performance are directly related to one another is often cited in the media
and in some non-academic management literature. A recent meta-analysisfound an average
uncorrected correlation between job satisfaction and productivity to be r=.18; the average true
correlation, corrected for research artifacts and unreliability, was r=.30. Further, the meta-analysis
found that the relationship between satisfaction and performance can be moderated by job
complexity, such that for high-complexity jobs the correlation between satisfaction and performance is
higher (=.52) than for jobs of low to moderate complexity (=.29). In short, the relationship of
satisfaction to productivity is not necessarily straightforward and can be influenced by a number of
other work-related constructs, and the notion that "a happy worker is a productive worker" should not
be the foundation of organizational decision-making.
With regard to job performance, employee personality may be more important than job satisfaction.
The link between job satisfaction and performance is thought to be a spurious relationship; instead,
both satisfaction and performance are the result of personality.

Job Satisfaction:
Job Satisfaction is the favorableness or un-favorableness with which the employee views his work. It
expresses the amount of agreement between ones expectation of the job and the rewards that the
job provides. Job Satisfaction is a part of life satisfaction. The nature of ones environment of job is an
important part of life as Job Satisfaction influences ones general life satisfaction.
Job Satisfaction, thus, is the result of various attitudes possessed by an employee. In a narrow sense,
these attitudes are related to the job under condition with such specific factors such as wages.
Supervisors of employment, conditions of work, social relation on the job, prompt settlement of
grievances and fair treatment by employer.
However, more comprehensive approach requires that many factors are to be included before a
complete understanding of job satisfaction can be obtained. Such factors as employees age, health
temperature, desire and level of aspiration should be considered. Further his family relationship,
Social status, recreational outlets, activity in the organizations etc. Contribute ultimately to job


The major factors influencing job satisfaction are presented below:

To a worker, Supervision is equally a strong contributor to the job satisfaction as well as to the job
dissatisfaction. The feelings of workers towards his supervisors are usually similar to his feeling
towards the company. The role of supervisor is a focal point for attitude formation. Bad supervision
results in absenteeism and labor turnover. Good
supervision results in higher production and good industrial relations.

Various studies had traced this factor as a factor of intermediate importance. Ones associates with
others had frequently been motivated as a factor in job satisfaction. Certainly, this seems reasonable
because people like to be near their friends. The workers derive satisfaction when the co-workers are
helpful, friendly and co-operative.

Studies also show that most of the workers felt satisfied when they are paid more adequately to the
work performed by them. The relative important of pay would probably changing factor in job
satisfaction or dissatisfaction.


Age has also been found to have a direct relationship to level job of satisfaction of employees. In
some groups job satisfaction is higher with increasing age, in other groups job satisfaction is lower
and in other there is no difference at all.

Marital status has an important role in deciding the job satisfaction. Most of the studies have revealed
that the married person finds dissatisfaction in his job than his unmarried counterpart. The reasons
stated to be are that wages were insufficient due to increased cost of living, educations to children

Studies conducted among various workers revealed that most of workers who had not completed their
school education showed higher satisfaction level. However, educated workers felt less satisfied in
their job.

The result of various studies shows that working condition is an important factor. Good working
atmosphere and pleasant surroundings help increasing the production of industry. Working conditions
are more important to women workers than men workers.


While analyzing the various determinants of job satisfaction, we have to keep in mind that: all
individuals do no derive the same degree of satisfaction though they perform the same job in the
same job environment and at the same time. Therefore, it appears that besides the nature of job and
job environment, there are individual variables which affect job satisfaction. Thus, all those factors
which provide a fit among individual variables, nature of job, and situational variables determine the
degree of job satisfaction. Let us see what these factors are.

Individual factors:
Individuals have certain expectations from their jobs. If their expectations are met from the jobs, they
feel satisfied. These expectations are based on an individuals level of education, age and other

Level of education: Level

of education of an individual is a factor which determines the

degree of job satisfaction. For example, several studies have found negative correlation between the
level of education, particularly higher level of education, and job satisfaction. The possible reason for
this phenomenon may be that highly educated persons have very high expectations from their jobs

which remain unsatisfied. In their case, Peters principle which suggests that every individual tries to
reach his level of incompetence, applies more quickly.

Age: Individuals experience different degree of job satisfaction at different stages of their life. Job
satisfaction is high at the initial stage, gets gradually reduced, starts rising upto certain stage, and
finally dips to a low degree. The possible reasons for this phenomenon are like this. When individuals
join an organization, they may have some unrealistic assumptions about what they are going to drive
from their work. These assumptions make them more satisfied. However, when these assumptions
fall short of reality, job satisfaction goes down. It starts rising again as the people start to assess the
jobs in right perspective and correct their assumptions. At the last, particularly at the fag end of the
career, job satisfaction goes down because of fear of retirement and future outcome.

Other factors:
Besides the above two factors, there are other individual factors which affect job satisfaction. If an
individual does not have favourable social and family life, he may not feel happy at the workplace.
Similarly, other personal problems associated with him may affect his level of job satisfaction.
Personal problems associated with him may affect his level of job satisfaction.

Nature of job:
Nature of job determines job satisfaction which is in the form of occupation level and job
content.Occupation level: Higher level jobs provide more satisfaction as compared to lower levels.
This happens because high level jobs carry prestige and status in the society which itself becomes
source of satisfaction for the job holders. For example, professionals derive more satisfaction as
compared to salaried people: factory workers are least satisfied.

Job content: Job

content refers to the intrinsic value of the job which depends on the

requirement of skills for performing it, and the degree of responsibility and growth it offers. A higher
content of these factors provides higher satisfaction. For example, a routine and repetitive lesser
satisfaction; the degree of satisfaction progressively increases in job rotation, job enlargement, and
job enrichment.
In the literature export barriers have been operationalzed as export obstacles/ inhibitors, problems or
impediments. They all refer to, attitudinal, structural, operational and other international operations
(Leondidou, 1995). This definition of export barriers includes several factors, which go beyond the
marketing domain. Lall (1991, p.139) restricted his definition only to marketing barriers. He defined
marketing barriers as those gaps, which need to be filled before the competitive producer becomes a

successful exporter. Since the focus of this research is on export marketing problems the latter
definition is suitable to this study.