Page 25 - DMGT402_MANAGEMENT_PRACTICES_AND_ORGANIZATIONAL_BEHAVIOUR

Management Practices and Organisational Behaviour

Notes 3. Discipline: The objectives, rules and regulations, the policies and procedures must be
honoured by each member of an organisation. There must be clear and fair agreement on
the rules and objectives, on the policies and procedures. There must be penalties
(punishment) for non-obedience or indiscipline. No organisation can work smoothly
without discipline - preferably voluntary discipline.
4. Unity of Command: In order to avoid any possible confusion and conflict, each member of
an organisation must received orders and instructions only from one superior (boss).
5. Unity of Direction: All members of an organisation must work together to accomplish
common objectives.

6. Emphasis on Subordination of Personal Interest to General or Common Interest: This is
also called principle of co-operation. Each shall work for all and all for each. General or
common interest must be supreme in any joint enterprise.
7. Remuneration: Fair pay with non-financial rewards can act as the best incentive or
motivator for good performance. Exploitation of employees in any manner must be
eliminated. Sound scheme of remuneration includes adequate financial and non-financial
incentives.
8. Centralization: There must be a good balance between centralization and decentralization
of authority and power. Extreme centralization and decentralization must be avoided.
9. Scalar Chain: The unity of command brings about a chain or hierarchy of command
linking all members of the organisation from the top to the bottom. Scalar denotes steps.
10. Order: Fayol suggested that there is a place for everything. Order or system alone can
create a sound organisation and efficient management.
11. Equity: An organisation consists of a group of people involved in joint effort. Hence,
equity (i.e., justice) must be there. Without equity, we cannot have sustained and adequate
joint collaboration.
12. Stability of Tenure: A person needs time to adjust himself with the new work and
demonstrate efficiency in due course. Hence, employees and managers must have job
security. Security of income and employment is a pre-requisite of sound organisation and
management.
13. Esprit of Co-operation: Esprit de corps is the foundation of a sound organisation. Union is
strength. But unity demands co-operation. Pride, loyalty and sense of belonging are
responsible for good performance.
14. Initiative: Creative thinking and capacity to take initiative can give us sound managerial
planning and execution of predetermined plans.

Case Study KBC's Win or SDCK's Loss?

n early 2000, to beat Zee TV in TRP ratings and increase the viewership, Star Plus, the
second most viewed TV channel sought the help of research agency MARG to improve
Iits TRP ratings. MARG stressed on a new brand positioning for the channel to garner
more viewership. On MARG's advice, Star Plus launched the biggest game show in Indian
television history 'Kaun Banega Crorepati' (KBC). It was hosted by none other than
Bollywood superstar Amitabh Bachchan. Overnight, KBC pushed Star Plus into the
leadership position.
Contd....

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