CHAPTER - IV

MANAGERIAL EFFECTIVENESS

The focuss on effective management has become increasingly

imoortant because of the fact that It ensures a maximum

utilization of the productive resources and helps in achieving

the expected results, Effective management implies the pooling

of material resources and organisational efforts of many

Individuals which are guided and directed towards the attainment

of business goals. In this process, the management pi w s the

•;or’<, orealises the enterprise, directs and controls the *nen,

o,chine and methods and obtains the desired level of production.

1 ow efficiently management uses the physical resources for

Generating maximum output with minimum cost, determines the

nnanaaerial effectiveness.

Effective management system possesses certain

characteristics and performs various functions for runnina

the business enterprises successfully, Cameron (1986) and

■ a^Obel!, (l9 7 l ) , conclude that internal oroanisation

'•y'-tem, its characteristics and behavioural orocesses have

been accepted as determinants of organisational effectiveness.

ffectiveness not only pertains to the outcome of a clven

minaoement attempt, but also deals with the effectiveness of

the organisational unit over a period of time. Likert (1967)

identifies three variables — causal, intervening and end-result-

which are useful in ascertaining effectiveness overtime.

General business conditions, leadership strateqies, skill

and behaviour, management*s decisions and the policies and

structure of the organisation are examples of causal

variables. Intervening variables are reflected in the

com'Tiitment to objectives, motivation and morale of members

ind their skills in leadership, communications, conflict

resolution, decision makino and problem solving (Likert,

1/361:2). Out-out or end-result variables are the ^eoen^ent

variables that reflect the achievements of the organisation

vi?; oro^uction, sales, eamincs, manaqement-union r?! ’ tions

etc. Fielder (1967) and Reddin (1967) speak of effectiveness

hy emohasizino on simillar outout variables. In evalua+lno

effectiveness, oerhaos more than 90 per cent of m^raner* In

omanisations look at measures of outout alone (Hersev ?nr»

"*1 =>n chard, 1983! 111). They regard end-result the sole

criterion for evaluation of manaoerial effectiveness.

M th a view to examine the auality of management practices

in public enterprises, Nalini (19T7) and Omar (1900) analysed

the perception of their employees pertainino to different

characteristics of management system.

132

While discussing managerial functioning Adlzes (1976)

m d (1930)( conclude that four managerial roles, vlx; product9 ,

imolementing, Innovating and Integrating oust ba performed

if an organisation is to ba tun affactively. Ha eontands

+h at whenever on* of tha four managerial roles is not performed

in m organisation a certain style of mismanagement is bound

to be observed.

In view of the foregoing view points* a systematic

sessment of the characteristics of a manaoement system

•V an enterprise would be revealing its managerial effectiveness.

against this backdrop an attempt has beer, made in this

chaoter to examine the employee's perception of managerial

effectiveness in silk industry of Kashmir, For this puroose

irportant characteristics of effectiva management pertaining

to different areas of management (General, Financial •

’^-sonnel and Marketing) have been culled out for detailed

f'Y aminatlon. Presence of these characteristics* in a nansnement

"""teflj of an enterprise, determines the degree of efficiency

of its management. In this context table 4 .1 presents the

fr^rruency analysis and chi-srruare (x ) values for each item

nro-’oad under the dimensions of 'general management*. values

1 2h ve been calculated between the poor and good responses

of the respondents pertaining to different items describing

the managerial effectiveness.

133

Tabl t

Perception of employees refardiny the General Manayement of the Silk Industry of Kashmir

(n « 159)

It am* Frequencymm, I . Q 0 9 t L . in i O

% Frequency% X

1. Plartniny a* a regular foaturo

98 61.64 61 38.36 3.61*

2. Claar and unambi­guous objectives 74 46.54 85 53.46 0.76

3. Lone tazn policies for inportant matters 105 66.04 54 33.96 16.36*

4. '*an agement' s tip top efficiency 108 67.92 51 32.0?? 20.43*

•W • Participation of subordinatas in decision making 92 57.86 67 42.14 3.93

s. Man ayement *s overall control 41 25.79 118 74.21 37.29*

7. Innovativemanayement 127

>

79.87 32 20.13 56.76*

e. Awareness of constraints & corrective measures 11 6.92 148 93.08 119.041

Q ' • Existence of Management information system 48 30.19 111 69.81 24.96'

10 . Costconsciousness 121 76.10 38 23.90 43.33*

p << .CX)1

Source! Fiald Survay

The above table reveals that out of 10 items evaluated#

5 showed significant X2 values .001) but favourino lack

of positive qualities in the management system. These items

were: planning as a regular feature, lono term policies for

important matters# manaoement’ s tip too efficiency# Innovative

man agement, cost consciousness. More than 61,64 per cent of

the respondents reported poor management oertaininc to these

variables. The other 3 items, that showed significant X

values# positively favourino efficiency of management were#

manaeements overall control, awareness of constraints and

corrective measures and existence of management information

system* Wore than 69.31 per cent of the respondents

perceived good management pertaining to these characteristics.

The items which failed to show significant differences

included clear and unambiguous obi actives and participation

of subordinates in decision makino. A close scrutiny of the

findings substantiates the fact that the general managementci

of the industry operates at a low deor*e of effi'ency.

Having discussed general management effiency of the

silk Industry of <ash»ir, an attempt is now made to assess

the effectiveness of management system of the industry under

study across functional areas. In this connection, tabl

A , 2 reports freauencies percentages and X values for ®ach

item grouped under the rubric of financial management.

la h lM - A * 2

ItemsPoor Good

F £* X2

1. Asslqnrnent of finance function to oualified people. 54 33.96 105 66.04 16.36*

?. Formulation of budqet 52 32.70 107 67.30 19.03"

3. Formulation of lono term plan 101 63.52 53 36.49 11.63*

4. Effective utilization of funds 129 81.13 30 18.87 61 .64*

5. Efficiency? in capital ization 99 62.26 60 37.74 9 .57 r

S. Generation of enough cash-flow to fund wotkinq capital requirement 106

>

66.67 53 33.33 17.67*

7 . Planning for workino capitalrequirement 78 49.06 81 50.94 0 .07

•3. Provision for the function of financial control 105 66.04 54 33.96 16.36-'

9. ?lanninq for capital expenditure 71 44.65 88 55.35 1.82

10. Secular proqranrne of maintenance 90 56.60 69 43.40 2.77

* ? <^.001 Sources Field Survey

The table depicts that out of ten items, five items

showed significant X values favourinq the poor management

oractices. This reveals that predominant number of

respondents reported that important variables* vixj

formulation of Ion© term plan, effective utilization of

funds, efficiency in capitalisation, generation of enouch

cash-flow to fund working capital reauirement and provision

for the function of financial control are hardly present

in the industry. The percentage of respondents reportino

inefficiency in these areas of financial management ranee'-*

f rom 62.26 oer cent to 81.13 per cent. The only items;

Tssionment of finance function to oualified people and

oformulation of budqet, showed sionificant X values

positively favourinc the efficiency of manaqement. The

examination of other items *such as, planning for workino

caoital reauirement, planning for capital expenditure,

recul ar prooramme of maintenance reveal that both the

categories are modestly close to each ot^er; ranging fro^

->1.40 per cent to 56.60 oer cent. This leads us to conclude

that financial manaoement of the industry too operates at

a lew degree of efficiency.

In a similar way table 4 .3 depicts fremiency analysis

2and X values for each item grouped under personnel management.

T flbl a, 3

Employee^ Perception regardino the personnel management of the silk industry of Kashmir

(n * 159)

I terns£oor

frequency '- SfifisLFrerfuency Y9

1. Selection and Recruitment 104 65.41 55 34 .59 15.10*

o• Training and development 102 64.15 57 35.=!? 17 .74*

3. Salary 8- Perks 111 69.81 48 30. 19 24.96*

4 . Service conditions 99 62 .26 60 37 .74 0 .57*

'-s e forking environment 99 61.64 61 3^ .36 ' .6 1 <

6 . Welfare amenities 131 82.39 23 17.61 ''■'.72 !

7. ^elationship between management and workers 53 33.33 106 66.67 17.67*

Job analysis and job evaluation * 77 48.43 82 51 .57 0 .16

9. vork motivation 91 57.23 68 4 2.77 3.33

10 .Grievance red res sal 73 45.91 86 5*5.00 l.'VS

' ^ .001

jourcet- Field Survey

It apoears froni the table that a predominant number

of resoondents felt that personTirt management of the industry

was poor. The table clearly reveals that personnel

management pertaininc to selection and recruitment, training

and development, salary and perks, service conditions,

working environment and welfare amenities, showedA

significant X values (? <1 .0 0 1 ) , poorly f avourino the

efficiency of quality of manaqement practices. The

percentage of respondents reporting inefficiency in these

areas of personnel manaaement ranged from 61.64 per cent

to 32.39 per cent, relationship between management and

workers was the only item which showed significant

difference, positively favourino the management efficiency.

The other items such as job analysis and job evaluation,

work motivation and grievance redressal did not manifest

any significant differences. Thus, personnel manaaement

of the industry was ranked as very poor by the sizeable

majority of the respondents.>

Table 4 .4 presents the frequencies, percent aces

< values for items grouped under the dimensions of

marketing management.

The table highliohts that out of the ten items, six

showed significant X values (P ^ .001) favourino the

inefficiency of the management. The data reflects the

poor management pertaining to forecasting of marketino

opportunities, calculation of market share, promotional

Tahle 4 .4

(n * 159)

Poor Good

Items F p f0'•V

1. Qualification of marketino personnel P7 54.72 72 *5 .2 ^ 1.4?

Forecasting of market opportunities 134 34.23 25 15.7? 74 .7?*

3. Calculation of market share 131 92 .39 29 17.61 6^ .72 '

4. 'arketinoinformation system 77 49.43 92 51.57 0 .16

5. Study of consumer behaviour 112 70.44 47 29.56 Of.. 57 *

6. :iroduct planning and development

>

70 44 .03 39 55 .97 ?. ?'7

7 . Distributionsystem 107 67.30 52 32.60 r . ~ y

3. Pricing policies and strategies 101 63.52 59 36.43 11.63*

Promotionalcompainn 117 73.58 42 26.42 35.3^*

1^. Sales management 90 56.60 69 43.40 2.77

Source:- Field Survey

compaion, study of consumer behaviour, distribution system

and pricino, policies and strategies* Wore than 63,52 per

cent of respondents reported poor manaoement pert ainina

to these characteristics of marketing manaoement. The other

items such as qualification of marketing personnel,

marketing information system, product planning and develooment

and sales manaoement failed to show si on if leant differences.

K-ione of the items showed significant values, positively

favourino the efficiency of management. Therefore, it c^n

be concluded that sizeable majority of respondents felt

that marketing management of the industry is very poor.

M th respect to the overall evaluation of management

efficiency table 4 ,5 shows the freouencies, percentages

^nd X* values for different areas of management.

TdfrLfi

Perception of employees reoardino the overall managerial effectiveness /

Poor Goodr " ¥ F x*-

General Manaoement ‘-an cement of Finance

anaceraent of Personnel 'manaoement of Marketing

325«3R5939

1026

51.3955.6659.0664.53

765705651564

4S.1144.3440.9435.47

2.26 70.3*? ' 52 ,17 *13“ . ?4 *

'■* ^ < .001

iorjreei- Pi eld -Survey

The table clearly demonstrates that significantly

hioher number of respondents have perceived that overall

management of the industry is ineffective. Although the

inefficiency of management is reported in all the areas of

management by majority of the respondents, but the intensity

of inefficiency recorded has been very high under the

dimensions of personnel and marketing managements. Persor^el

3nd marketing functions have been reported as poor by

SO.06 per cent and 64.53 ner cent resoondents respective!v.

These areas of management showed the highest significant

values, revealing thereby the inefficiency of manacernpnt

^ .001 ).

Thus, the analysis of the important characteristics of

■he effective management, pert ainino to different areas of

maoement (tables 4 .1 to 4 .4 ) , coupled with overall

pv.iluation (table 4 .5 ) , unfolds a grim story about the

efficiency of management of the silk industry of Kashmir, 's a

result thereof, the performance of the industry under stu'iy hashea*.

- ery poor. The ineffective management of the industry ha , not

ueen in a position to arrest the declining trend of the

industry. The oroduction and oroductivity levels are

ecreasing at an al armino rate and the industry has been

makino heavy losses every year. This leads us to the

conclusion that the inefficiency of manaqement and the

lower productivity levels are positively correlated.

Therefore, the findings lend a positive support to the

hypotheses put forth in the study that, "Inefficiency of

manaqement contributes significantly towards poor

performance of the silk industry of Kashmir",

Despite the poor performance attributed to the

ineffective manaqement, the fact remains that the man accent

of the industry does possess some positive features of

effective manaqement as well. This is quite disceinable

in respect of all functional areas as depicted in the

tables oiven in the foreqoinq paqes. Wore specifically,

in the area of General management, (table 4 .1 ) predominent

number of respondents reported efficiency of manaoement

pertainino to manaqement* s overall control (7 4 .2 1 * ) ,

awareness of constraints and corrective measures ( 9 3 . )

existence of manaqement information system (69.91'*) and

c! ?ar and unambiguous objectives (53 .46^ ). Besides, the

respondents ranqinq from 20.13 per cent to 42 .14 per cent

also arqued that the manaaement of the industry pertainlnc

to other items too was qood (table 4 .1 ) .

In a similar way, in the area of financial man aoement

as observed in table 4 ,2 manaqement pertaininq to, assionment

of finance function to qualified people, formulation of

budget, planning for capital expenditure h a s b e e n reported

good by 66,04 per cent, 67 .30 per cent and 55.35 per cent

respondents respectively. 33.33 per cent to 50 ,94 per cent

of the respondents pleaded that management pertaining to

other characteristics was also efficient. In the area of

nersonnel management efficient management pertaining to

relationship between management and workers, grievance

redressal and job analysis and job evaluation has been

reported by 66.67 per cent, 54.09 per cent and 51.57

cent respondents respectively, (table 4 .3 ) . 17.61 p*r cor-t

lo 42.77 per cent of the respondents argued that there w=>s

efficient management relating to other variable also. In

-the area of marketing management (table 4 *4 ), product

rlannino and development was reported as being efficiently

anaced, by the majority of the ^respondents (55 .97 per c«nt).

esoondents ranging from 17.61 per cent to 4 5 .2% per cent

pi pided that management relating to other items was also

oood.

The summary of the above discussion leads us to the

I Trtant conclusion that the management of the industry

under review possesses some important characteristics of

efficiency manaoement as well. Therefore, the inefficiency

of management reported by the resoondents may be the result

of some crucial inherent constraints making the management

helpless and Ineffective, With this in view an attenrot has

been made in the following section of this chapter to

identify and analyse these curcial and critical factors

which are responsible for rendering the management of the

industry ineffective and as such contributing significantly

towards the perniciously low productivity levels. To

suooort this argument, table 4 ,6 presents the overall

problem-profile of the silk industry as perceived by its

internal members (managers aid workers),

Tahl,fi..4..ȣ

Problem-profile of the Silk Industry; perceived levels of respondents / ,-Q\

’roblem‘Dimensions Ranks Frequency Percentages(W O (F) (v)

1. Shortage of raw material andits inferior quality 1 142 39.^1

oe deputation of people on top

without required experience of managing businessorganisations 4 96 60.39

' • Political interference 2 119 74. Q4

Lack of financial resourcesfor modernization 3 99 61,64

5. rnt erfcrence of unions making ^anaoement helpless in

mairtaining discipline 9 46 28.03

6. Lack of competitive environment 11 21 13.217. Over staffing 5 84 52,9 3

Profit making not perceivedas main objective 7 71 44. v*

ov e Inadequate salary & perks 9 68 47.77

10 ,Poor ouality of people employed 6 79 49.69

1 1 ,, Excessive job security 10 29 lfl.24

Source* Field Survey

The table reflects that shortage of raw material and

its inferior ouality, political interference, lack of

financial resources, deputation of people on top without

required experience of managing business organisations and

over staffing are perceived to be the primary critical

factors making the management ineffective. These factors

are ranked as 1st, 2nd, 3rd, 4th and 5th in order of th<M r

importance. All these factors except over staffing ar«

identified as crucial problems by more than 60 .00 per cent

of the respondents. Over staffino has been seen as a

crucial variable by 52.^3 per cent of the respondents. ;;>oor

ouality of people employed, profit making not perceived

as main objective, inadequate salary and perks and

interference of unions are viewed as moderate factors in

the total problem profile, they are ranked as 6th, 7th,

3tb and 9th in the order of their importance. The percentage

of respondents identifying these variables as crucial

ranoed from 29.93 per cent to 49 .69 per cent. The oth^r

" ctors viz? excessive job security and lack of competl+ive

environnent are not conceived to be critical and vital. The

percentage of respondents reportino these factors as

crucial are IS .24 per cent and 13.21 per cent respectively.

These factors are assigned considerably low importance

by the respondents*

With a view to analyse the perception of employees

in detail* the table 4 .7 given below reports the problem-

orofile of the industry under study perceived by the sample

managers and workers separately.

LflLaJLTE

Problems of Silk Industry perceived levels of ’<*anagers and ‘ orkers separately

Problem Dimensions Manaoe rs(n*31)'?*ork• rs (n == 12?)m ~ r — %— r?— ----

1. Shortaae of rawmaterial & its inferiorauality 3 23 74.19 1 119 92.97

2. Deputation of people on top without requi­red experience of rnanaoinc business organisation 6 19 61.29 3 77 60.16

3. Political interf srence 29 93.55 2 90 70.31

4. Lack of financial resources formodernisation 2 25 80.65 4 73 57.0?

5. Interference ofunions making the management helpless in maintaining discipline 4 22 70.97 10 24 13.75

• Lack of competitive °nvi ronment 9 7 22.58 11 14 10.94

7 . v?r staffing 7 14 45.16 5 70 54.60

a. rofit making not perceived as main objective a 8 25.81 7 63 4Q. 77

9. Inadeouate salary and perks 11 2 6.45 6 66 51.56

10 .Poor nfuality of people employed 5 20 64.52 8 59 46.(39

11 .Excessive job security 10 4 12.90 9 25 19.53

r — between perception of managers & workers * 0 .555 tr t to be significant at ? <,0.Q5 should be« 0 .602

Source:- Field Survey.

The table depicts that tnanaeers have identified

political interference, lack of financial resources,

shortage of raw material and its inferior ouality,

ini erference of unions and poor quality of people employed

as the primary critical factors. These variables are

ranked as 1st, 2nd, 3rd, 4thf and 5th respectively and

i eotified as crucial factors by more than 64.00 per cent

of 'he respondants. *s aoainst this, in case of workers

sVxtsce of raw material and its inferior ouality is

o-T reived to be the most crucial factor and ranked as 1st,

fm lov:ed by political interference (2nd) deputation of

oeoole on too (3rd ), lack of financial resources (4th) ani

ov-r-r staffinq (5th), These factors are reported as crucial

h’/ no re than 54.00 per cent of sample workers. Profit mak ino,

nv: d iceived as main objective, is viewed as moderate

factor by both the qroups of respondents, "anaqers perceived

interference of unions makine the manaaement helpless in

>t=?ininc discipline as a sionificant problem and ranko'

‘ is ^th, vhileas workeis rank it as quite low ( 10th r

rs oave considerable importance to deputation of

oeo:.'l e on top without required exoerience of manaaino business

c c 'anisations and ranked it as 3rd, whileas manaoers rrTV

u s

it as 6th. Managers qave sianiflcant imoortance to ooor

quality of people employed and ranked it as 5th, whileas

workers ranked it as 8th. Inadequate salary and perks is

ranked 6th by workers, whileas manaqers rank it the lowest

(11th).

Further examination of the table 4 .7 Indicates that

both the categories of respondents perceived political

interference, shortane of raw material and its inferior

~tJality and lack of financial resources as crucial factor*.

The problems viz; excessive job security and lack of

conoetitive environment are assiqned considerably low

l-nnortance by both the cateoories of respondents. Findincs

rf the table 4 .7 show that there is a moderate decree of

similarity in the perception of manaaers and workers,

because coefficient of rank, cor rel at ion is 0 .5 5 5 . This

coefficient of rank correlation is not sionifleant at 5

ier cent level (P <£.05).

Vi endeavour have also been made here under to x> •->]v -

oroblem orofile of the industry under study across tho

resr ^ i t s job experience. Job experience has been selected

as an explanatory variable on the assumption that 1 enr+h of

service sionificantly influences the oerception of tho

employees as recards th© problem faced by the industry.

"or th# purpose of the present study, respondents have

been stratified into hich, medium and low orouos accordino

to their lenqth of service. The low group consists of

respondents having below ten years experience, the Tiedi'ri

^rouo includes respondents between 10-20 years servi ce

*nd the hich grouo comprises of respondents with more t'-.an

years of job exoorience. The results are presented in

the table 4 .3 .

The table shows that respondents belonoinq to the.

hiah proup, considers political interference, short ace o*

raw material and its inferior crualitv, lack of financi-)1

resources, poor quality of oeople employed and interference

of unions as the primary problem factors. These factors are

ranked as 1st, 2nd, 3rd, 4?th and 5th respectively. The

medium qroup considers shortage of raw material and inferior

ouality as crucial factor, followed by political

interference, poor ouality of peoole emoloyed, i n =>I

s 1 ^ry and oerks and lack of financial resources for

*-iode r i ? rtion. These factors are ranked as 1st, 2nd, 3r ' ,

4ih and 5th resoectiveiy. Profit makino not perceived a*

•nain objective and excessive job security are att cbec' i oy,-

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imoortance by both the high and medium croups. These factors

are assigned *th and 10th ranks respectively by both the

croups. However, the lower group views deoutatlon of people

on top without required experience of managinq business

oraanisatlons, as the most crucial variable, followed by

shortaqe of raw material and its inferior quality, over

staffino, lack of financial resources and political

interference. Interference of unions making the manaoement

heloless in maintaining discipline and poor quality of

oeoole employed are given considerably low importance by

the lower group.

It may be observed from the table 4 .8 that shortage

of raw materials and it* inferior quality, political

Interference and lack of financial resources are identified

as significant problems by* *11 the categories of respondents,

Profit making not perceived as main objective is assigned

secondary importance by all the categories of resDondeni s.

Interference of unions making the manaoement helpless to

maintain discipline is viewed as crurical factor by high

group, but medium and low groups assigned low importance to

it . Overstaffing is identified as crucial factor by lower

group, while as high and medium groups assigned secondary

importance to it . Poor quality of people employed Is viewed

as crucial factor by high and medium groups whileas lower

group assigned lowest place to it . Inadequate salary and

perks have been reported as crurical problem by medium group.

whileas lower and higher groups attached secondary and the

lowest importance to it respectively. Deoutatlon of oeople

on top without re<juired experience of managing business

oreanisations is considered as a critical oroblem by lower

q roup, whileas it is not assigned a high rank by the high

and medium groups. Other items like lack of competitive

environment, excessive job security are perceived to be of

low importance by all the categories of respondents. The

coefficient of rank correlation (r * 0 .645) between hich and

medium groups turns out to be significant (** <^.05). This

reveals that there is significant similarity in their

perception with regards to the problems of the industry.

However, the coefficient of rank correlation between hich

and low (r * 0 .2 9 ) and between medium and low (r * 0 .355)

groups is recorded to be insigifdeant. This reveals that

there is no significant similarity in their perception as

regards the problems faced by the industry.

The overall analysis of the problem-proflie of the

silk industry of Kashmir brings to light that shortage of

r^w material and its inferior cuality, oolitical interference,

lack of financial resources, deputation of people on top

and over staffing are the primary critical factors maklne the

management ineffective and contributing significantly

towards lower productivity level s. The shortaoe of raw

material and its inferior quality forces the management to

to declare lay offs from time to time. This Is even accented

by the manaoement of Jammu and Kashmir Industries that,

the reduced availability of raw material suffices factory

working for only eight months in a year (Jammu and Kashmir

Industries, 1989:203).

Political interference by the interested oarties h*ve

eroded the power of managerial commontly . Erosion of

managerial power forces the managers to be defensive in their

styles and aporoach, leadlno to playing safe while resoondino

to managerial challenges. Indiscipline is encouraced by

individual cases beinp taken up for redress at the political

forums without first discusslno these matters with the

manaoement. "ven the decisions of the highest authority in

management, the Board of Directors are not considered as the

final arbiters In individual cases* Political interference

by ruling parties at the instance of inefficient and undesirable

emoloyees has caused frustration In management. The situation

has so deteriorated that the autonomy of top executive deoends

mainly on his personal relationship with the ministry leadino

to a lot of sycophancy and insecurity. Therefore, man w w e n t

trios to keep political bosses in oood humour. This has

resulted into overstaffing of employees at all levels and

cadres. Aoainst a lob vacancy of one worker as many as eioht

to ten workers have been employed. Shortage of financial

resources compels the factories to use ape old machinery

installed about ninety years back, resulting into under­

utilization of capacity In the factories. Deputation of

peoole on top without reguired experience of managino business

organisations makes the management ineffective. These oeoole

are not In a position to understand the oroblems of the

industry and workers. They believe just In raalntalnino the

status eruo rather than evolvina new approaches. This all

makes the management helpless and Ineffective. In a similar

way the other factors too contributes towards the helplessness

of the manaoement in one way or the other. As a consequence,

the management of the industry is not in a position to

manage effectively.

Conclusion:

Summing uo the discussion of the present chaoter it

may be concluded that the management of the industry un^er

study, as perceived by Its Internal members, operates at a

low degree of efficiency. Although the inefficiency is

reported in all the areas of management, but the degree

of inefficiency is higher in the areas of personnel and

marketing managements. However, It has been observed that

the management of the industry enjoys some oood features of

effective management as well, ftit, a number of factors

lying beyond the control of management have been strono

i^oediments, which are mainly responsible for the ineffective

functioning of the management. There are sound reasons to

believe that the manaoerlal efficiency of the industry can

definitely improve provided the bottlenecks highlighted in

this study are properly analysed and effectively eradicated.

ith this in view the chapter that follows puts forth some

important suqqestion# for making the management of the

industry effective and boosting uo the development of the

silk industry in Kashmir.

Motes and References:

1. A characteristic of effective management has been described as poor by the respondent when in his opinion it is not managed/implemented oroperly inthe silk enterprise. Besides, some questions contained the answers as yes or no. If the respondent answered majority of the questions pertaining to a particular characteristic as no, the characteritic was described as poor.

2. A characteristic of effective management has been described as good by the respondent. *#ien in his ooinion it is managed/implemented properly in the silk enterprise* Besides, some questions contained the answers as yes or no. If the respondent answered majority of questions pertaining to a particular characteristic as yes, the characteristic was described as good.