UNIT – I Lesson 1 HRM – AN OVERVIEW Lesson Outline Nature of ...

Based on continuous field experience and experimentation, Edward Deming
presented his fourteen principles for achieving quality and reliability. Some of the
principles have a bearing on productivity as well. For example, Deming has urged
managers to reduce fear throughout the organization by encouraging open, two-way, nonpunitive
communication. This was because the economic loss resulting from fear to ask
questions or reporting trouble was appalling. Deming also appealed to manufacturers to
help reduce waste by encouraging design, research, and sales people to learn more about
the problems of production. Two sources of waste were identified by Deming namely
system and local faults. He urged the managements to use statistical techniques to identify
them and strive to constantly reduce wastes.
Deming called for the elimination of the use of goals and slogans to encourage
productivity, unless training and management support is also provided. Close examination
of the impact of work standards was recommended to ensure if they considered quality or
helped anyone do a better job as they often act as an impediment to productivity
improvement. Institution of rudimentary statistical training on a broad scale, institution of
a vigorous program for retraining people in new skills, to keep up with changes in
materials, methods, product designs and machinery were the other principles advocated by
Edward Deming.
4.11. EMPLOYEES’ MORALE AND MOTIVATION
MORALE: Employees’ Morale in general refers to the atmosphere created by the
attitudes of the members of an organization. According to the Oxford Dictionary, Morale
is understood to be the mental and emotional attitude of a person or group with regard to
aspects like confidence, optimism, enthusiasm and willingness. It depicts the degree of
contentment with one's lot or situation. Morale can be drastically improved through
morale-boosters like an event, occurrence, or saying which has the potential to change the
attitudes of employees. The subject of morale has been gaining the attention of industrial
and organizational psychologists and management researchers for more than half a
century, since the 1950s.
Morale and productivity are said to be positively correlated, especially combined
with group cohesiveness, though the increase in productivity is not always proportionate to
the extent of morale improvement. Morale could be built in many ways. A free, frank and
fair approach to managing by employers pave way for good morale and organizational
health. Employees watch closely to see whether profits are being pumped back into the
organization as facilities, whether old equipments are being replaced with new ones,