Problems and Prospects for Management of Public Services

Public service is an essential service or commodity linked to the livelihood or existence of the society or the general people. Public service is a means of connecting the government and the general public. Such services are provided by the government through its administrative channels. In order to meet the needs of the people as a whole, the work performed by the state and the goods and services provided are public services.

The flow of public services is the process by which the government or the state provides services to the citizens in a fast, economical and effective manner, which can be guaranteed by the general public. It is the responsibility of the state to provide public services.

In Nepal, all the essential, basic, infrastructure-based, commercial and other services are provided from the public (government) level. Various policies, legal, institutional and procedural arrangements have also been put in place to make the basic service delivery systematic and effective. However, the service delivery does not seem to be as systematic and effective.

The public sector, civil society and the private sector are involved in running the state or providing services to the people. Through the collaboration of these three sectors, people get services and facilities. The public sector includes the following two sub-sectors:

1. Political Subsector
2. Public Administration Subsector

1. Problems of Political Subsector

(A) Rise of unconstitutional power

If a leader or a person becomes a minister or a leader of higher level, all his relatives will be powerful, which will greatly affect to the transfer, promotion, appointment and so on.

(B) Emergence of Vicious Politicians to Enhance the Financial Status of the Party

There is a situation where a certain ministry i.e. a powerful ministry is needed and the party has a habit of supporting such.

(C) Critical situation of party operation

There is a crisis of confidence between the government and the party. Even if one's own party joins the government, there will be disputes. There was a lot of undisciplined work even within the party. All the parties started splitting. Leaders had zero vision. The tendency to try to join the government by removing one's own party government is emerging. The political sector is not right and other sectors cannot be right, so this is a very important sector. Such defects need to be rectified.

Problems of Civil Society

• Civil society should be fair and non-profitable, not as sister organizations of political parties.
• They are morally corrupt and unaccountable to the people.
• They have not been able to represent the voice of the people.

Problems of Private Sector

• Less responsible towards the society due to profit motives.
• The latent syndicate system is still prevalent.
• Trade unions have made the private sector unhealthy.
• Salary facility is very low.
• There is a situation of extreme labor exploitation.
• The private sector is becoming more cities centered.

2. Problems of Public Administration

• Extremely politicized and non-professional.
• Lack of work culture in the public sector and insensitivity to the problems, demands and needs of the people.
• Basic public service delivery to the general public has not been guaranteed.
• Extreme abundance of nepotism, favoritism and violation of merit system.
• The performance of public services is not satisfactory.
• The voice of the people is least reflected in public administration. People are given what we think is right. The public administration has ignored the demands of the people.
• Salary facility is very low and overall people with sharp intellect have not entered the administration. Average people run administration.
• Not enough attention has been paid to transparency and accountability regarding the availability of public services. Also, corruption in service delivery could not be controlled.
• Lack of clear demarcation between politics and administration.
• Representation of some castes is still low i.e. public administration is not inclusive and representative.

Some more problems:

• There is a situation where the right person in the civil service is not in the right place at the right time. When a person is not in the right place, then the overall capacity of the nation is weakened. Proper planning has never been done.
• The approach of conducting public service management activities in a systematic manner has not been followed.
• The role of fair and neutral civil society in the management of public services has not been enhanced.
• Lack of sustainable system. There is no sustainable system in transfers, promotions, postings, scholarships, foreign trips, etc.
• Our governance reform is fragmented, ad-hoc and without overall reform; Only focus on structural change.
• The qualitative and regulatory role of the government is weak. There is lack of monitoring in areas like education, transport, health etc.
• There is a complete lack of concept and use of human resource development. There is nothing greater than wisdom and knowledge, but wisdom is despised.
• Local bodies could not function properly.
• Economic and social development works have not been able to move forward in the required proportion, which has created obstacles in expanding the flow of public services.
• It seems that attention has not been paid to those who perform less work.
• Low status and situation of public institutions and authorities.

Prospect to solve the aforementioned problems

Measures to solve the problems of the political sector

• There should be timely improvement in politics.
• There should be development of good political culture.
• There should be political will and commitment.
• The best brain should go in the political sector.
• Minimum educational qualification should be determined in the political sector as well.
• Politicians should be sent on study visits time and again.

Measures to Solve the Problems of Civil Society

• There should be a fair civil society.
• The registration of the backward civil society should be revoked.

Measures to Solve the Problems of Private Sector 

• There should be effective monitoring. The consumer committee should be more active. Consumers should be aware. The private sector must be punished for wrong doings. The bureaucracy should be stronger. 

Measures to Solve the Problems of Public Administration

• Government should be responsive, sensitive.
• The government should take the lead in meeting the demands of the people.
• The immediate problems of the citizens should be solved.
• Every organization should monitor time and again by forming a team.
• Quality should be regulated.
• To resolve the situation of impunity.
• The government should be strong in anyway.
• Measures should be taken to increase the morale of the employees who are doing a good job.
• Steps against corruption should be made stronger.
• There should be dynamic pay policy.
• Bodies such as the CIAA and the Vigilance Center need to be strengthened.
• Multi-staffed staff should be arranged.
• There should be a result oriented public sector rather than a procedural one.
• A predictable promotion system should be developed.

Finally,

• Political will and commitment;
• Professional will and
• Public wills lead to the development of the country.

These three wills are collectively called national wills. In order to make the availability of public services effective, the management of the public sector must be strengthened as a whole. For the management of Nepal 's public sector which is surrounded by problems and challenges, there is a lot to be done. In the view of the various efforts being made by other nations of the world to achieve the new Millennium Development Goals, Nepal's public administration also needs to move forward with a concrete vision for the future. There is a need to give special emphasis on other aspects such as good governance and transparency, demarcation between politics and administration, innovative public management, public accountability, favorable public service policy, strong and effective staff, simplification of procedures, public grievance management, information management, increasing participation of local bodies, economic discipline, effective monitoring and evaluation.

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• Future Trends and Implications of Public Administration

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Result Oriented Administration / Result Oriented Management

Every action has a mission, vision or goal. The mission or goal must be determined before taking action. Then strategies are formulated on how to get there and work is done according to the strategy. 

All the people or organization requires inputs to reach the mission or goal. No output can be obtained without input. Automatic output is expected when input is invested. Result or output is also the objective effect of public action. Result-oriented management is when the input is invested in it, what is the outcome, what is the quality maintained, whether the consumer or service recipient is satisfied with the return received or not. Therefore, managerial activities that are aimed at achieving concrete results with an emphasis on outcome and not on input are called result-oriented management. Effective management also requires competent bureaucracy. 

In the view of the public, the reality of the government is the bureaucracy or administration for the citizens to get services and facilities. Administration is also called permanent government which helps in making the activities of running the state effective and result oriented. In fact, result-oriented management is a new dimension of public management. It emphasizes result-oriented rather than procedural action. The emphasis of result-oriented management is not on how the work was done and who did it or whether the policy rules were not fulfilled, but on what was done, how much was done, who went and what was achieved.

Similarly, in result-oriented management, the goals and objectives of each activity are determined and necessary strategies and programs are prepared and implemented towards reaching the goal. In which result oriented efforts / measures are adopted in every action and process from goal setting to accomplishing the set goal.

Result oriented management is not a separate administration but a means of achieving real results through administrative management. It expects excellent performance and pays special attention to both quantitative and qualitative aspects of managerial activities. In particular, it plays an important role in achieving goals. Effective management also plays a role in materializing abstract managerial activities. 

Some Glaring examples are; 

• If money is given to a training center, it should be given on the basis of how many people have been trained and got job rather than on the basis of number of trainees.
• Educational institutions in Arkansas and Florida in the USA stopped giving training funds because they got less than 70 percent work.
• The funding should be done on the durability of road rather than the length of road to be constructed.
• School funding should be based on pass out rate and high rank percentage.

Indicators to Measure Results

• Efficiency criteria: - To increase the return by keeping the budget stable.
• Criteria of economy: - Minimizing the input but the output remains the same.
• Criteria of effectiveness: - The difference between what was expected and what was achieved is the criterion of effectiveness.
• Criteria of service: - Criteria of service is the measurement of citizen's satisfaction in the goods and services provided.
• Output measure: - It measures services and facilities made avail from the specified expenditure.
• Impact measure: - Measuring the level of impact, i.e. the final impact on the society from the amount expenditure.
• SMART: - Criteria should be SMART i.e. SMART objective. SMART means specified, measurable, achievable, reliable / reasonable representative, time bound.

Techniques / Process for Result Orientation

• Clearly defining mission, vision or goal or objective
• Determining strategies / tactics
• Preparation of outline of plans and programs
• Management of necessary resources including budget
• Determining work and working procedures
• Determining the schedule
• Implementation of programs or activities
• Effective monitoring and evaluation
• Analysis of results
• Backing up

Some tips of Result Orientation

• Think of what can be measured and what can be done.
• If we can't measure results, failure can't be separated from success.
• If you can't see success, you can't reward it.
• If you can't reward success, have you rewarded failure? Think of it.
• If you don't see success, you can't learn from it.
• If you don't recognize failure, you can't improve.
• If you can demonstrate the results, you will be with the people.

Significance of Result Oriented Management

• To achieve materialistic achievement
• Benefit to the target group
• Proper use of resources
• Administrative commitment
• Increasing the level of public participation
• Increase in productivity
• Increasing levels of motivation
• Increase the capacity of the working class
• Cost-per-unit return can be measured
• Developing administrative professionalism
• Promoting work culture
• Increase the reputation of the organization
• Increase people's trust in the organization, etc.

Issue / challenges of Result Oriented Management

• Traditional organizational structure
• Domination of politics in the administration
• Lack of modern management
• Lack of professionalism in administration
• Centralized management system
• Excessive government involvement
• Procedural legal complications
• Lack of capacity to use resources
• Lack of administrative responsibility and accountability
• Uncertain Terms of Service
• Corruption
• Lack of managerial values ​​and recognition
• Unbalanced public participation
• Lack of easy access to public services
• Uncertainty in the availability of public services
• Not paying attention to institutional development and expansion
• Public grievance management is not effective
• Lack of guarantee of good governance etc.

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Strategic Management: Meaning, Features and Significance of Strategic Management

Meaning of Strategy and Strategic Management

The word strategy derives from military administration. The term strategy refers to the tactics and tactics adopted during the war to mobilize the army. Whether they are soldiers or administrators or businessmen, the purpose of all these is to achieve the objectives of the organization. Strategy is the crucial method to prepare the organization to face the growing uncertain future. Strategy is a perfect way to achieve the goals and objectives of the organization. When the New Public Management (NPM) is introduced in the administration, strategy became associated with long-term. The main objective of New Public Management (NPM) is to achieve result. So, if there is no strategy, the organization is without direction. According to Nutt and Back Off, the strategy focuses on where the emphasis should be given. Similarly, strategic activities also focuses on the objectives by formulating plan, structure, situations, movement and the perspectives.

Initially, it was developed as strategic planning and later on strategic planning was replaced by strategic management in the 1980s.

Strategic Management refers to managing strategically. That is, the act of strategically identifying a situation and using knowledge strategically is called strategic management. Due to globalization and economic liberalization and open market environment, the use of strategic management has become more widespread to meet the challenges faced by the management of any sector.

Strategic thinking is assimilated in the method adopted for the effective management of any organization. The tactical approach adopted as a tactic to mobilize the army during the war is widely used in modern times in the management of the private and public sectors. 

According to Michael Armstrong, “Strategic management is the visionary management that is concerned with creating ideas and maintaining concepts about where the organization should go. But it is also an experience-based management that will decide how to get the organization to that point in practice. ” 

Similarly, in the words of V. P. Michael, "Strategic management is the systematic and justified management process that is adopted to achieve certain long-term objectives in a way that suits the existing and expected forces and elements."

In strategic management, there is a plan but even if there is a plan, attention should be paid to the implementation because there is a human factor. Human is a factor that influences the culture and management of an organization.

Strategic Management deals with the following topics like bringing results, new marketing, new products, new technology, etc. In this sense, strategic management is very broad. It integrates the plan with every component of the organization. It expands the future strategic format through each unit of the organization. It is not mechanical, it recognizes the central role of the individuals and groups present in the organization, it influences the culture of the organization. 

Features of Strategic Management

• Dealing with basic queries related to the organization
• Situation based
• To root out the main problem
• Predicting the impact
• Utilization of different opportunities
• Determining priorities
• Realistic plans
• Us of the best experience
• Ensuring the availability of resources
• Arrangement of practical management structure
• Flexibility
• Top management activeness
• Collective guidance, etc.

Significance of Strategic Management

• Long-term vision
• Oriented towards strategic success
• Motivated managers and employees
• Assist towards environmental needs
• Assist in the formulation of objective plan and its implementation
• More effective decision making process
• Arrangements for procedural monitoring and adjustment
• Strategy in Public Sector

This trend is started in the early 1980s in the public sector. It was introduced in later period in the private sector. The public sector should have the following:

• There should be a statement of overall mission and objectives.
• There should be environmental analysis or scanning.
• There should be an audit of the internal profile and resources of the organization.
• Strategies should be formulated, evaluated and selected.
• Strategic plan should be implemented and controlled.

According to the scholars Osborne and Gaebler, strategic planning is the current and future projection of an organization or community, setting and measuring goals. It should include the following:

• Analysis of external and internal situation
• Identification of important issues faced by the organization
• Basic mission of the organization
• Presentation and adjustment of basic goals of the organization
• Creation of the future form of the organization
• Imagine the success of the organization
• Development of strategies for realizing vision, mission and goals
• Development of time table for measuring strategy and evaluating results

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Lean Management: Establishing a Competitive Management System

Lean management means establishing a competitive management system by making the organization structurally and procedurally agile. It aims at developing efficiency in production, simplicity and efficiency in service delivery, improvement in quality, adoption of prompt production cycle measures, and development-oriented tendencies. Lean management emphasizes on the structural aspects of management, the systemic aspect of work and the agility of staff management. This lean management can be changed as per the need, acceptable to the client, operated by expert and skilled and technically skilled staff, economical and efficiency based, more productive than procedural, encouraging change oriented creativity, reduced hierarchy and wide scope of control.

Lean management is a unique and effective tool to ensure continuous improvement of organizational management. It is a process of gradual but continuous improvement. It is also a strategic improvement of the accelerated process. It was first used only in the manufacturing sector, later in the service sector and is now used in the military, police and public sectors. Lean management reduces unnecessary costs and aims to measure the satisfaction of its customers as well as stakeholders. 

Techniques/ Processes of Lean Management

• Unnecessary staff cuts
• Development of group work
• Focus on production process
• Participatory management
• Delegation of rights and responsibilities
• Minimization of waste
• Minimization of human resources
• Development of human resources
• Focus on creative discipline
• Cooperation and partnership building
• Use of new technology
• Use of flexible time
• Unproductive costs and system reduction
• Emphasis on quality service delivery
• Expert service contracts
• Appropriate structural framework
• Utilization of external capacity
• Quick fulfillment of customer needs
• Support for good governance
• Focus on continuous improvement

Steps and Processes of Lean Management

1) In terms of policy

The organization should clearly identify its scope of work; do not work by government sector in such areas where the private sector and non-governmental organizations work; Emphasizing decentralization and liberalization; Focus all attention towards customer / consumer.

2) As a resource

To motivate, coordinate and arrange contracts for human resources as per the need; Arranging optimal use of financial resources; Achieving results using the full potential of physical resources; To make effective use of sources of data and information.

3) Organizational view

To establish an organization only for clear objectives and goals; Improving and changing the organizational structure; To carry out local level works from the community or private sector on issues other than the mandatory presence of the government. 

4) Administrative view

To expedite the work through modern information technology; Reducing levels of decision; Competent leadership and delegation of authority; Motivated staff management etc.

5) Simplified process

Assign the contact person; effective management of Citizen Charter; Arranging procedures and directives; Implementing e-governance.

In the context of Nepal,

• Lean concept is accepted
• Started organizational reform
• Arranged a Citizen Charter with compensation
• Arrangement of helpdesk
• Arrangement of Nodal Officer
• Mobile governance
• Hello Sakar system
• Arrangement of two shift operations in urgent places
• Arrangement of compulsory training for employees
• Employee contract arrangement etc.

Value Production Process

Value production is the ultimate goods and services. Each layer in the line adds value. Whatever results are obtained at the end point of the organization is the result of a series of long steps. The main basis for the survival of any organization is to produce the right value at the right time and at the right price. 

The structure of our organizations is based on a vertical process, which is the structure of organizations around the world, while the facilities and goods available to the people are horizontal. If there is no one to look horizontally in the organizational structure, then that organization becomes an orphan. As most of the management's assessments are accountable only to their respective departments, the results have been poor. Usually the flow of value is not completely normal, as well as what the needs of the people are, not even looking at the important business needs of the organization, they use what they have learnt or know. 

Lean Value Principles

1. Price Specialization:- Ingredient based and satisfaction based.
2. Identify the flow of value
3. Flow - to make value creating
4. Continuous pulling
5. To adopt perfection
6. Price instead of waste

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Business Process Re-engineering (BPR): Concept | Business Process Reengineering in Public Sector

Introduction of Business Process Re-engineering (BPR)

Business Process Re-engineering (BPR) is the process / method of emphasizing the improvement of the working processes of any organization. This is a revolutionary process. This process forgets the previous process and start from zero. The goal of business process re-engineering (BPR) is to dramatically increase or change efficiency, effectiveness and quality. It seeks holistic change within the organization. Changes are sought in each structure. BPR is not a continuous improvement, it is a revolutionary change. To restructure the organization's processes, activities, related systems and organizational structures through BPR in order to dramatically improve the work process. The BPR method is to forget the whole process of today and start a new process. There are four reasons why BPR is needed:

• Financial performance
• External competition
• Declining market share
• New opportunities created in the market, etc.

Business process re-engineering (BPR) does not mean down sizing, mechanization, restructuring, new technology, reorganization, etc. BPR is the testing and modification of the five major components of an organization. These include;

• Testing and changing strategies
• Testing and changing processes
• Testing and changing technology
• Testing and changing organizations
• Testing and changing culture, and so on. 

This concept of business process re-engineering (BPR) originally came from the private sector. Re-engineering, a 1993 book by Michael Hammer and James Champy, brought this idea to the force. According to the book, BPR is a process of fundamentally redesigning its business processes and revolutionizing its structure in order to dramatically change the way an organization performs. As in TQM, it incorporates customer control systems and culture and information systems strategies into the BPR process. TQM adopts small improvement processes but BPR improves and changes the whole process.

BPR Process: - BPR goes through the following five specific stages:

Business Process Re-engineering

• Define the goals and objectives of the BPR Process.
• Start the learning process with customers, employees and non-competitors and with new technologies.
• See the future today, to start the necessary new process.
• Planning will be done on the basis of projections and gaps in the existing process.
• Implementing appropriate solutions. 

Business Process Re-engineering (BPR) in Public Sector

• BPR is more challenging to implement in the public sector than in the private sector.
• It seeks change and coordination between the lines of every authority of the bureaucracy.
• The more revolutionary change is sought in the government sector, the greater the risk, the more radical change, the more opposition.
• The US General Accounting Office has developed a guideline for the evaluation of BPR, in which nine issues are identified and placed in the following three major areas. 

Section 1:

1. Has the organization really re-evaluated its mission, fundamental and strategic goals?
2. Has the organization identified the performance problem and set the criteria for its improvement?
3. Has the organization really done re-engineering? 

Section 2:

1. Is this re-engineering process properly organized?
2. Has BPR's project team analyzed the intended targeting process and developed possible alternatives based on it?
3. Has the team implementing BPR prepared a healthy business case to implement the new process?

Section 3:

1. Has this organization followed the overall implementation plan?
2. Have the organization's chief executives addressed change management issues?
3. Did the new process achieve the expected results?

In the early stages, more than half of the Re-engineering (BPR) projects failed. So, there was a lot of discussion about the key to its success, and after 24 months of research into 150 BPR implemented companies, it was discovered that BPR could be implemented if the following things were done:

• Commitment of top management (strong / strong consistent engagement)
• Strategic affiliation (organization strategy and direction)
• Pressurized business case for change (with measurable purpose)
• With a clearly defined method (including future formatting)
• Effective change management (addresses cultural transformation
• Line ownership
• Re-engineering group structure (all necessary groups including those with knowledge)

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Scientific Management Theory

Fredric W. Taylor (1856-1915) was a mechanical engineer. He joined the Midvale Steel, works as a laborer and rose rapidly to Foreman and later chief engineer. He was afterward employed at Bethlehem Steel, works as a consultant and devoted to the propagation of his idea.

Theoretical View for Scientific Management

To find out the best way of doing things was the essence of the movement knows as scientific management. The central tenets of their approach is that if material rewards are closely related to work effort, the worker will respond with maximum performance if he is physically capable of Taylor essentially paid attention to the physical character of the human body in routine job in using hammer, pick up loads. Eventually Taylor come to view human and machine resources as complementary to one another. Motivation, division of work, responsibility, good salary, time and motion study are the main contribution of the Taylor.

The following are some typical proposition or statement of scientific management:

• The two hands should begin and complete their motion simultaneously.
• Smooth, continuous motion of hands are preferable to zigzags or straight line motion involving sudden and sharp changes in direction.
• Proper illumination increases productivity.
• There should be a definite and fixed place for all the tools and materials. (Taylor wanted the worker to be paid weekly if not daily).

Taylor pioneered the scientific method with its emphasis on experimentation, observation, collection of data, classification and analysis and derivation of laws and principles.

Taylor stated the principle object of management is to secure maximum prosperity for the employer as well as to the employee. For the employer maximum prosperity means not just large profits in the short term but the development of all aspects of enterprise to a state of permanent prosperity. Likewise, for the employee, maximum prosperity mean not just immediate higher wages but his development and security for his future so that he may perform efficiently in the higher grade of work for which his natural ability fit him.

What the workmen want from their employer beyond anything else in higher wages and what employers want from their workmen in low labor cost of manufacture. What are the inefficiency or drawback to achieve this common aim of the both? He suggested three causes:

a) The fallacious belief of workers that nay increase in output may cause unemployment to them.

b) The defective system of management, Taylor after serious observation and study of operation of many factories, identified the following defects of management.

• Management had no clear understanding of worker’s management responsibilities.
• Lack of effective standard of work.
• Failure of management to design jobs properly and to offer the proper incentives to worker.
• Most decisions of the management were unscientific as they were based on hunch (idea not based on evidence), intention and past experience.
• Placement of worker without consideration of their ability, aptitude (natural ability) and interests.

c) The rule of thumb or effort wasting method to avoid all these weaknesses or drawbacks, Taylor lays down four slogans of management. He says,

1. Science – Not rule of thumb
2. Harmony – Not discord (disagreement or quarreling)
3. Co-operation – Not individualism
4. Maximum output – In place of restricted output

Besides this, Taylor lays down four principles of management:

1. The development of true science of work

When science is viewed as an ‘organized knowledge’, every act of a work men can be reduced to a size in the interest of the worker and management. It is necessary to know as to what constitutes a fair day’s work. It saves the worker from the unnecessary criticism of the boss, and enables the management to get the maximum work from the worker. This needs a scientific investigation of ‘a large daily task’ to be done by qualified workers under optimum (most favorable) condition. Such development of science of work enables the organization to produce more; enables the worker to receive higher wages and much larger profit to the company.

2. The scientific selection and progressive development of the workmen

To ensure the effective performance of the scientifically developed work, there is also need to select the worker scientifically possessing physical and intellectual qualities. This need a deliberate study of the aptitude, nature and performance of the worker and finding out what possibilities and limitation one has for future development. Taylor believed that every worker has potentialities for development. He insisted that every worker must be systematically and thoroughly trained. He felt that it is the responsibility of the management to develop the worker offering him opportunities for advancement to do the job to the fullest realization of his natural abilities. Employees accept the new methods, tools and conditions willingly and enthusiastically in learning to do a good job for a high rate of pay.

3. The bringing together of the science of work and the scientifically selected and trained men

To enable the workers to do his job and to ensure that he may not slip back to the early methods of doing works, there must be somebody to inspire the workers. Taylor felt it as the exclusive responsibility of the management. He believes that workers are always willing to co-operate with the management, but there is more opposition from the side of management. Taylor maintained that this is process of bringing together causes the mental revolution.

4. The division of work and responsibility between management and workers

In the traditional management theory, the worker bares the entire responsibilities. But Taylor’s scientific management assumes the equal responsibility between management and worker. The manager unlike in the part, is equally busy as the worker. This division of work creates between them as understanding and mutual dependencies. This led to the constant and intimate cooperation between them. All this results in elimination of conflicts and strikes.

After the use of scientific management principles the following result appeared;

30 percent production roses

50 percent labor force decreased, and

60% percent income increases.

Criticism or intellectual exercise (Art of making judgment on literature)

1. The trade union were against the modern methods of increasing outputs. The labor leader considered Taylorism as not only destroying trade unionism but also destroying the principle of collective bargaining and creating employment.
2. Taylorism was also often attacked by the mangers. Those who wanted quick promotion to the high managerial position without any merit based on higher education opposed Taylor’s stand, which advocated tanning by highly trained experts. Taylor had to resign from both Midvale Steel works and Bethlehem Steel because of friction with the company managers.
3. Among others who criticized Taylor include Oliver Sheldon, Miss Marry Parker Follett, Elton Mayo, Peter Drucker and others. They changed that Taylor’s scientific management was mechanical, impersonal and under emphasized the human factor.
4. Behaviorist charged that Taylor’s method of scientific management sacrifices the initiatives of the worker, his individual freedom and the use of his intelligence and responsibility. 
5. Herbert A. Simon and March have described the scientific management as the physiological organist theory.

Conclusion

Despite the limitations concerning an adequate understanding of human psychology, sociology and anatomy of work – Taylor’s work remains supremely important. By all accounts Taylor must be regarded as a pioneer in the study of human beings at work. He was the first person to initiate the quest (search or trying to find) for better performance at work.

Scientific management had a tremendous effect on industrial practice in the USA. It even spread to Germany, England, France, USSR and other European countries. Taylor’s principles were included in the curriculum of the education and training of the engineers in Russia.

Taylor, in brief, combined theory and practice, thought and experiment and doing and teaching all in the one person and in one life. This movement had a major influence on the growing reform and economy movements in Public Administration.

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Factors Influencing Investment Decision

There are many factors which directly or indirectly influence capital investment decisions besides the availability of funds to invest, profitability of the investment, market for the product, etc. They are discussed below.

Related Topic:

- Investment Decision

1. Technological Changes

Technological development changes at present is much faster than that at past. The new technology increases the productivity of labor and capital. The selection of new technology depends on the net benefit over the cost of having the technology. Benefits from and cost of new technological change also influences the investment decisions.

2. Competitors’ Strategy

If the competitors are installing new equipment to expand output or to improve quality of their products, the firm under consideration will have no alternative but to follow suit, else it will be in loss. It is, therefore, often found that the competitor’s strategy regarding capital investment plays a very significant role in forcing capital decision of a firm.

3. Demand Forecast

The long-term demand forecast is one of the determinants of investment decisions. If the firm finds market potentials for the product in the long run, the firm will have to take decisions for investment.

4. Outlook of Management

Investment decision depends on the management outlook. If the management is modern and progressive in its outlook, the innovations will be encouraged, whereas a conservative management discourages innovations. Innovations increase the output as well as profit of the firm. The modern and progressive management takes decision to invest without any hesitation.

5. Fiscal Policy

Various tax policies of the government relating the tax concession on prioritized investment, rebate on new investment, method allowing depreciation, deduction allowance etc. also have influence on the capital investment.

6. Cash Flows

Every firm makes a cash flow budget. Its analysis influences capital investment decisions. On the basis of cash flow budget, the firms plan the funds for acquiring the capital assets. The budget also shows the timing of availability of cash flows for alternative investment proposals.

7. Expected Return from the Investment

Investment decisions are mostly done in anticipation of increased return in future. So, it is necessary to estimate future net returns from the investment proposals while evaluating the investment proposals.

8. Non-economic Factors

The factors, which cannot be evaluated in monetary terms, are called non-economic factors. Sometimes the non-economic factors also influence investment decisions. Working environment in the firm, safety measures in the operation of machines, brotherhoods among employees, good relationship between employer and employees etc., influences the firm’s output and also the investment decisions.

 Some Related Links:      

• Investment Decision under Uncertainty

• Utility and Risk Aversion in Investment Decision

• Investment Decision

• Risk and Uncertainty in Managerial Decision Making

• Marginal efficiency of capital and rate of interest influence the investment decisions | Evaluation of Investment Project by Benefit-Cost Ratio Method

• Uses/Significance of Managerial Economics in Business Decision Making

• Measurement of Risk by Probability Distribution

Contemporary Issues in Labour Relations in Nepal

Labour relations determinate sharply immediately after reinstallation of democracy in Nepal. Union activities have subsided in the privatized units. Labour strike, agitation and protests are still going on in some enterprises. In the case of extreme disputes, almost all workers took voluntary retirement. The need for the government to undertake responsibility to pay

gratuity or other termination benefits without any commensurate change in the price of the enterprise may have affected seriously the actual realization. There is a sincere need to value the price of enterprise on the basis of workers retention or retirement or other pertinent conditionality.

The following are the major contemporary issues in labour relations in Nepal:

1. Suspicious management: The Nepalese management has remained suspicious of trade unions and their activities. It has taken a confrontation oriented reactive approach to labour relation wherever these is industrial unset or strike management reacts. There is a need of change in the attitude of management towards unions. Instead of using reactive approach, the management should adopt the supportive approach to the unions, which will not only smoothen the relationship between the management and unions but will also chances of increased productivity.
2. Collective bargaining: Industries of Nepal have lack of collective bargaining. Getting an optimum bargaining for both groups is important and for that is need of professionals specializing in collective bargaining. Training should be given to the members of each party which will enhance their skill in negotiating and bargaining.
3. Quality of work-life: In theory, QWL (Quality of Work Life) are simple. It involves giving workers the opportunity to make decisions about their jobs, the design of their workplaces, and what they need to make products or to deliver services most effectively. It requires managers to treat workers with dignity on the job. Its focus is on employees and management operating the business together.
4. Grievance handling: A grievance handling procedure should be based on a policy statement to the effect that employees should be given a fair hearing by their immediate supervisor or manager covering any grievances that may wish to raise have the right to appeal to a more senior manager against a decision made by their supervisor or manager have the right to be accompanied by a follow employee of their own choice when raising a grievance or appealing against a decision. The procedure should be staged as follows:
1. The initial hearing by the immediate supervisor or manager.
2. If a satisfactory conclusion is not reacted at that meeting, a hearing with a more senior manager.
3. The right of final appeal to a director or equivalent. Time limits should be laid down for the intervals between meetings.
4. Training and skill development when the training proposal for the staff to the management to improve the working condition, the management usually sees it as with the worthless to spend the money and sees it as unnecessary expenses. This concept should be changed of as to encourage the employee in getting good productivity.
5. Labour policy: Nepal lacks a comprehensive labour policy. There is need of formulation of comprehensive labour policy to manage labour relations. It should be in conformity with the management needs and socio-political realities of the country.
6. Evolving legal framework: Nepal needs an evolving legal framework improving labour relations. The industrial unrest and disputes are growing. There is need of efficiency implementing the existing laws and develop a comprehensive legal framework.

  SOME RELATED LINKS  

• Concept of Labour Relation

• Meaning of Unionism | Process of Unionization | Labour Legislation

• Collective Bargaining

• Meaning of Discipline and Grievance | Grievance Handling Procedures

• Causes of Labour Disputes in Nepalese Organization

Collective Bargaining and Importance of Collective Bargaining

Collective bargaining is one of the efficient ways of resolving industrial disputes. It is concerned with the relations between trade unions representing workers and the management representing employers. It is the distinct feature of modern industrial era. Industrial peace and harmony can be achieved only if there are healthy industrial relations in the country.

Collective bargaining is defined to cover the negotiation, administration, interpretation, application and enforcement of written agreement between employers and unions representing their employees settling for the joint understanding as to policies and procedures governing wages, rates of pay, hours of work and other condition of employment, so the collective bargaining is the technique of solving an industrial disputes. The term collective bargaining can be defined as;

According to E. B. Flippo,“Collective bargaining are a process in which the representatives of a labour organization and the representatives of the business organization meet and attend to negotiate a contract or agreement which specifies the nature of the employee-employer union relationship.”

Thus, the collective bargaining is the process of voluntary agreement. It is an agreement under which employees jointly or collectively undertake to resolve their existing or future conflicts or differences through negotiation usually between interested parties and if necessary, with the assistance of the third party. The agreement is known as labour contract or a union contract or labour management agreement. It gives the mutually agreed terms and conditions of services and represents voluntary arbitration and never a compulsory adjustment.

Importance of Collective Bargaining

Collective bargaining is considered as important for shaping better labour relation because of the following reasons.

• It is flexible means of adjusting wages and conditions of employment to changing economic, social, political, technological and other factors. Both the parties can meet whenever they desire and can adopt the term and conditions suited to the changing environment.
• It is an effective method of regulating the conditions of employment of the worker by trade unions.
• Collective bargaining is helpful in fixing standards of every worker and establishing a code of conduct defining rights, duties and obligations of each party. In other words, through collective bargaining some kinds of industrial jurisprudence is created.
• Collective bargaining results in better understanding and empathy between employer and workers. When issues regarding wages, incentives, grievances and complaints are discusses at the bargaining table, there is absolutely no room for misunderstanding between workers and management.

  SOME RELATED LINKS  

• Concept of Labour Relation

• Meaning of Unionism | Process of Unionization | Labour Legislation

• Contemporary Issues in Labour Relations in Nepal

• The Process of Collective Bargaining as a Mechanism for the Settlement of Labour Disputes

• Causes of Labour Disputes in Nepalese Organization

• Contemporary Issues in Labour Relations in Nepal

• Meaning of Unionism | Process of Unionization | Labour Legislation

• Meaning of Discipline and Grievance | Grievance Handling Procedures

Elements of Communication Process

The process of communication includes the following seven elements. These are shown in figure. Each of these components needs due elaboration.

1. Communicator: The communication process begins with an intended message to communicate. The characteristics of the communicator influence the communication process. For example, while a sensitive communicator will look at the communication process from the receiver’s perspective, an insensitive one will be primarily concerned with his/her own interest. 
2. Encoding: It refers to converting a communication message into symbolic form. Encoding is necessary because information can only be transmitted from communicator to receiver through symbols or gestures.
3. Message: The message is the actual physical product from the source of encoding. When we speak, the speech is the message. When we write, the writing is the message. When we gesture, the movements of our arms, the expressions on our face are the message. Thus, message is what is communicated.
4. Medium: Medium is a channel through which a communication message travels. Medium is the link that connects the communicator (sender) and the receiver. Face to face verbal communication, use of telephone, use of memorandum, notice, circulars, statements, etc. are the various means available as media of communication. Besides, non-verbal media like signals, symbols, gestures, etc. may also be used. The choice of medium assumes significance as the use of proper medium also determines the effectiveness of communication.
5. Decoding: Translating the sender’s message by the receiver is called decoding. Decoding is the process by which the receiver draws meaning from the symbols encoded by the communicator or sender. One’s knowledge, attitude, and cultural background influence one’s ability to encode or receive, just as they do the ability to send.
6. Receiver: The person who receives the message is called receiver. The communication process is incomplete without the existence of receiver of message. Communication to be effective needs to be receiver-oriented.
7. Feedback: The actual response of the receiver to the message communicated to him is known as “feedback”. In other words, if a communicator or sender decodes the message that he encodes if the message is put back into his system, we have feedback. Feedback enables the communicator to check whether or not the message received has been properly understood by the receiver.

Importance of Communication Management
The need or importance of communication is felt for the following reasons: 

1. Adequate and timely communication helps managers discharge their functions of planning, organizing, staffing, directing and controlling.
2. Effective communication ensures willing cooperation of others. This, in turn, contributes positively to the quality of decisions.
3. Communication by flowing information throughout the organization maintains coordination of activities across departments in the organization.
4. A good communication system communicating quality information contributes positively to the quality of decisions.
5. Effective communication also helps in moulding attitudes and building up employee morale. It also helps in developing harmonious labor management relations.

Leadership Concept and Nature of Leadership

Leadership is the process of influencing other towards the accomplishment of goals. It is the ability of a manager to induce subordinates to work with confidence and zeal. A key to effective leadership is helping followers to achieve their respective essentials goals as well as their maximum potentialities. Dynamic leader, therefore, should have the ability to awaken in other the desire to follow a common objective in a given situation. Leadership thus, is a function of the leader, the followers and other situational variables.

L = F(I, F, S)

Leadership does not flourish in vacuum. It always envisages followers. Further leadership envisages the idea of interpersonal influence.

The term "leadership" has been derived from the word "to lead". The word "to lead" has two meanings as 'to excel or to be in advance' and 'to guide, govern and command others or to head an organization'. Therefore, leadership is the process of influencing others towards the accomplishment of goals. It is the ability of a manager to induce staffs to work with confidence. In other words, leadership is the special quality of a person who can influence the other people. In other words, it is the ability to influence the people for accomplishment of the goal of an organization. Leadership is the ability to build up confidence and zeal among the people and to create the urge in them to lead. To be a successful leader, a manager must possess qualities of foresight, initiative, drive, self confidence, positive attitude and personal integrity.

A key to effective leadership is helping followers to achieve their respective essential goals as well as their maximum potentialities. Dynamic leaders, therefore, should have the ability to awaken in others, the desire to follow a common objective in a given situation. Leadership, thus, is a function of the leader, the followers and other situational variables. Without leadership no organization can run smoothly. A leader may or may not be manager, but a successful manager must be a leader. It means, every manager is a leader but every leader is not a manager. A manager must build up confidence in the subordinates and he must have influencing behavior, controlling power, organizing and convincing ability, trust worthy and positive attitude. A manager having positive attitude and formal authority can direct and guide his subordinates and command them by virtue of his personal power. But, as a leader, the manager can influence the work behavior by means of his leadership ability to get the cooperation of all members of the group without use of the force.

The following are some of the important definitions given by different experts.

"Leadership refers to the quality of behavior of the individual whereby they guide people on their activities in organized effort." – Chester Barnard

"Leadership is the ability to persuade others to seek defined objectives enthusiastically. It is the human factor which binds a group together and motivates it towards goals." – Keith Davis

"Managerial leadership is the process of directing and influencing the task related activities of group members." - Stoner

"Leadership is the ability of influencing people to survive willingly for mutual objectives." – George R. Terry

"Leadership may be defined as the ability to exert interpersonal influence by means of communication towards the achievement of a goal." – Koontz and O'Donnel

From the above definitions, leadership may be defined as a process of influencing group activity towards the achievement of certain goals. Thus, a leader is a person on a group who is capable of influencing the group work willingly. He guides and directs other people and provides purpose and effect to their efforts. Leadership can be an important modifier of behavior of people working in the organization. Effective leadership is necessary for inspiring the people to work for the accomplishment of given objectives. It provides a cohesive force, withholds the group, intact and develops a spirit of co-operation. Effective leadership is also essential for efficient direction of human efforts towards the predetermined goals.

Nature / Characteristics of Leadership 

Leadership has following characteristics: 

1. Leadership is the process of interpersonal influence by which leader influences the followers.
2. Leadership is a personal quality. Leadership is the ability to form a group of followers voluntarily without the use of coercion.
3. Leadership involves the sharing of interest between the leaders and has followers.
4. Leadership pre-supposes the existence of a group of followers.
5. Leadership is a continuous process of influencing behavior.
6. Leadership is not only influences the group but group also influence the leader. In a way, it is a reciprocal relationship.

Effectiveness of Leadership in an Organization

An effective leader represents the organization, initiates the action necessary to keep the organization dynamic and progressive, administers the organization and arranges for planning, organizing, directing and coordinating and interprets the organizational philosophy to internal and external groups in a satisfying manner. Similarly, effective leadership is the process of influencing the behavior and activities of an individual or group for achieving common goals. Effective leadership has following characteristics.

1. Common Goals

Leadership is the ability of influencing behavior of people to work willingly to achieve some common goal. Terry and Franklin states "Leadership is the activity of influencing people to strive willingly mutual objectives". Thus, leadership involves of community of interests between the leader and his followers.

2. Continuous Process

Leadership is a continuous process. A leader continuously makes efforts to influence behavior of his group members. He carries on this process by maintaining free flow of two-way communication with the entire group of his followers.

3. Personal Quality

Leadership is a personal quality of a person. It is a behavioral quality and ability to influence others towards accomplishing a goal.

4. Interpersonal Relations

Leadership involves interpersonal relationship between the leader and his group members. A leader influences his group members and at the same time, group members also influence the leader. Thus, a leader does not dominate the will of others but tries to relate the wills of many people to get them work as a team.

5. Shared Function

Leadership is a shared function. A good leader shares everything with his followers. He shares ideas, opinions, experience, credits, blames and soon with his followers. 

6. Dynamic Art

Leadership is a dynamic art. No particular style of leadership is effective in all situations. The effectiveness of leadership depends heavily on the situational variables. Therefore, art of leadership is exercised applied in accordance with the demands of the situations.

7. Influencing and Inspiring Process

Leadership is a process of influencing and inspiring others to work towards objectives. Influencing means regulating and changing behavior, attitudes and feelings of others. The means of influencing others include reward, coercion, expertise, reference and tradition. Leaders can also influence with rational faith, participation and persuasion.

8. Power

Leadership is based on power. A person holding power over others is a leader. By virtue of power, a person is in a position to influence behavior of his group members. A leader may derive power from 

(i) superior knowledge, information experience, or performance, 

(ii) formal authority 

(iii) charisma, and 

(iv) distinct personality characteristics.

Difference between Leadership and Management

Basis	Leadership	Management
Meaning	Leadership is the process and the art of influencing people to work willingly for achieving a goal.	Management is the process of setting things done through people.
Power and Authority	Leadership is based on power. The power may be derived from formal authority or from any other source.	Management is based on authority which is delegated to a managerial position by a person in superior position.
Relationship	There need not be a formal relationship between the leader and his followers.	There is a formal relationship between a manager and his sub-ordinates.
Structures	Leadership structures are more flexible, open, informal and dynamic than management.	Management is bound by organized formal structure.
Achievement of Goal	Leaders achieve goals by influencing and inspiring others.	Management is bound by organized formal structure.
Guidance	A leader guides his followers through a special kind of behavior.	Manager guides his subordinates through policies, plans, rules, procedures etc.
Education and Training	There is almost negligible arrangement for formal education and training for leadership.	There are many programs for formal education and training of management.
Dependence	Leadership does not depend on manager-ship. Hence, all leaders need not be good managers.	Manager-ship includes leadership. Hence, all managers need to be good leaders.

Difference between managers and leaders

Managers	Leaders
1. Who direct the work of employees and is responsible for results.	1. Who cope with changes.
2. A manager is appointed and after that get a position.	2. A leader emerges emergence depends a number of situational factors.
3. A manager seeks those objectives, which his subordinates do not regard as their own. Thus there is clash of objectives.	3. A leader generally seeks those objectives, which are the objectives of his subordinates. Thus, there is mutuality of objectives between leader and his followers.
4. Manage complexity through planning and budgeting i.e. setting goals, establishing steps to achieve them and then allocate resources to achieve them.	4. Sets a direction or vision of what the future might look like and then develop strategies to produce changes needed to achieve that vision or direction.
5. Ensure that employees reach their goal by controlling their behavior i.e. they monitor the result by means of reports and meetings and note derivations from the goals.	5. Requires 'motivating and inspiring teams of employees' taps their needs values and emotions.
6. Achieve their goals by 'organizing and staffing' creating an organizational structure and sets of jobs for accomplishing the plans requirements. Staffing the jobs with qualified employees communicating the goals and monitoring the progress.	6. Try to align employees who share their vision create teams who understand and share their vision.

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