Management Process and Skill Development

January –2004
Paper 3.11

Unit –I

Q1. What are the functions of management? Explain Briefly.

Ans. Management is the process of designing and maintaining an environment in which
individuals working together in-groups efficiently accomplishes selected aims.
Functions of the management include planning, organizing, staffing, heading,
motivating, communication and controlling.

Planning: - Involves selecting missions and objectives and the actions to achieve them;
it requires decision making, that is, choosing future courses of action from other
alternatives. Planning bridges to gap from where we are to where we want to go. Morel
plan exists until a decision –a commitment of human or material resources has been
made. Before a decision is made, all that exists is a planning study, an analysis, or a
proposal; there is no real plan.

Organizing: - Is a part of managing that involves establishing an intentional structure of

roles and positions for people to fill in an organization.

For an organizational role to exist and be meaningful to people, it

must incorporate (i) clear idea of the major duties or activities involved and (ii) an
understood area of discretion or authority so that the person filling the role knows what
be or she can do to accomplish goals. It is in this sense that we think of organizing as
(1) the identification and classification of required activities (2) the grouping of activities
necessary to attain objectives (3) the assignment of each grouping to a manager with
the authority (delegation) necessary to supervise it, and (4) the provision for
coordination horizontally and vertically on the organizational structure.

Staffing Involves filling and keeping filled the positions in the organization structure.
This is done by identifying work force requirements; inventorying the people available;
and recruiting, selecting, placing, promoting appraising, planning the careers of
compensating and training or otherwise developing both candidates and current
jobholders to accomplish theirs tasks effectively and efficiently.

Leadership is defined as the art or process of influencing people so that they will strive
willingly and enthusiastically towards the achievement of group goals. Ideally, people
should be encouraged to develop not only willingness to work but also willingness to
work with zeal and confidence. Zeal is ardor, earnestness, and intensity in the in the
execution of work; confidence reflects experience and technical ability. Leaders act to
help a group attain objectives through the maximum application of its capabilities. They
do not stand behind the group to push and prod; they place themselves before the
group as they facilitate progress and inspire the group to accomplish organizational
goals.

The most important problems arise from people-their desires and attitudes, their
behaviour as individuals and in-groups –and that effective managers also need to be
effective leaders. Since leadership implies followership and people tend to follow those
 who offer a make of satisfying their own needs wishes and desires, it is understandable
that leading involves motivation, leadership styles and communication.

Motivation is the process that accounts for an individual’s intensity, direction and
persistence of effort towards attaining a goal.

Intensity is concerned with how hard a person tries. This is the element most of
as focus on when we talk about motivation. However high intensity is unlikely to lead to
favorable Job performance outcome unless the effort is channeled in a direction that
benefits the organization. There fore, we have to consider the quality of effort as well as
its intensity. Finally motivation has a persistence dimension. This is a measure of how
long a person can maintain their effort. Motivated individuals stag with a task long
enough to achieve their goal.

Communication It is the process of passing information and understanding from one

person to another. A successful manager should develop an effective system of
communication so that he may issue instructions and receive the reactions of the
subordinates and motivate them.

A communication is useless until it is transmitted and understood by others.

Perfect communication would exist when a thought or idea was transmitted so that the
mental picture perceived by the receiver was exactly the same as that envisioned by the
sender.

Controlling is the measuring and correcting of activities of subordinates to ensure that

events conform to plans. It measures performance against goals and plans show where
negative deviation exists, and, by putting in motion actions to correct deviations, help
ensure accomplishment of plans. Although planning must precede controlling, plans are
not self achieving plans guide managers in the use of resources to accomplish specific
goals; then activities are checked to determine whether they conform to the plans.

Q2. Write a short note on Social Responsibility of Management in Business.

Ans.As business operates in society, it can’t exist and grows unless it cares for society. It
exists vis-à-vis with society. It is required to meet different needs of the society. For meeting
these needs, business has certain social responsibilities to discharge. ”Cooperate social
responsibilities” is defined as considering the impact of the company’s action on society. A
newer concept,” social responsibilities” , is defined as the ability of a cooperation to relate it’s
operation and policies to social environment in ways that are mutually beneficial to both the
company and society. Social responsibilities of business are different for different sections of
society, which include responsibilities towards
(a) employees
(b) consumers
(c) Government
(d) Society as a whole

Responsibilities towards employee

1. Fair wages and regular payment

2. Good working conditions and safety
3. Reasonable working standards and norms
 4. Labor welfare services,- Health, education , recreation and accommodation
5. Training and promotion
6. Recognition and respect for hard work , honesty, sincerity and loyalty
7. Efficiency of redressing employees grievances.

Responsibilities towards customers

1. Providing goods and services at a reasonable price

2. Supply goods and services of promised quality, durability and services.
3. Supply social harmless product.
4. Offering an efficient consumer redressal mechanism
5. Resisting profiteering and black marketing.
6. Improving product quality towards R & D.

Responsibilities towards government

1. Regular payment of taxes.

2. Resisting bribing, bureaucrat and administers.
3. Cooperating with go of in up gradation of environment.
4. Cooperating with go of in social values.
Responsibilities towards society as a whole

1. Prevention of environmental pollution

2. Preservation of ethical and moral values.
3. Making provision of health education and cultural services.
4. Minimizing ecological imbalance.

Unit –II

Q3. Describe various stages in decision-making process.

Ans. Decision making is defined as selection of a course of action from among alternatives; it
is core of planning. The process leading to making a decision might be thought of as (1)
Premising (2) Identifying alternatives (3) evaluating alternatives in terms of the goal
sought and (4) choosing an alternative, that is making a decision.

The optimizing decision-making is rational i.e. the decision-maker makes

consistent value maximizing choices within specific constrains. These choices are made
following a six-step rational decision-making model.

The model begins by defining the problem. Problem exists when there is a
discrepancy between an existing and desired state of affairs many poor decisions can
be traced to the decision-maker overlooking a problem or defining the wrong problem.

Once a decision-maker has defined the problem, he or she needs to identify the
decision criteria that will be important in solving the problem. In this step, the decision-
maker determines what is relevant in making a decision. This step brings the decision-
makers interest, values and similar personal preferences into the process. Identifying
criteria is important because what one person thinks is relevant, other person may not.
Any factors not identified in this stage are considered irrelevant to the decision-maker.
 The criteria identified are rarely all equal in importance. So the third step requires
the decision-maker to weight the previously identified criteria in order to give them the
correct priority in the decision.

The fourth step requires the decision-maker to generate possible alternatives that
could succeed in resolving the problem. Once the alternatives have been generated the
decision-maker must critically analyze and evaluate each one. Rating each alternative
on each criterion does this. The strengths and weaknesses of each alternative become
evident as they are compared with the criteria and weights established in the second
and third steps.

The final step in this model requires computing the optimal decision. This is done
be evaluating each alternative against the weighted criteria and selecting the alternative
with the highest total score.

Q4. Write short note on

(i) Span of Control and (ii) Delegation

Ans. (i) Span of Control: - is defined as the number of subordinates a manager can
efficiently and effectively direct. A wide span of management is associated with few
organizational levels; a narrow span with many levels. Factors that determine the span
of control include.

a) Subordinate Training: - The better the training of subordinates the fewer the
number of necessary superior-subordinate relationships. Well-trained subordinates
require not only less of their managers time but also less contact with their
managers.

b) Clarity of Delegation of Authority: - The Principle cause of the heavy time burdens
of superior-subordinate relationships is to be found in poorly conceived and
confused organization. The most serious symptom of poor organization affecting the
span of management is inadequate or unclear authority delegation. If a manager
clearly delegates authority to undertake a well defined task a well trained
subordinate can get it done with a minimum of manager’s time and affection.

Clarity of Plans Much of the character of a subordinate’s job is defined by the plans to
be put into effect. If these plans are well defined, if they are workable, if the authority to
undertake them has been delegated, and if the subordinate understands what is
expected, a little of supervisor’s time will be required.

Rate of Charge certain enterprise charge much more rapidly than others. The rate if
charge is an important determinant of the degree to which policies can be formulated
and the stability of polices maintained.

Communication Techniques An ability to communicate plans and instructions clearly

and concisely also tends to increase managers span. The subordinate’s Job is greatly
facilitated by superiors who can express themselves well.
 Organizations with narrow span

Organization with wide span

b) Delegation : Organization authority is the discretion conferred on people to use their

judgement to make decision and issue instruction. Decentralization is the tendency to
dispersed decision making authority in an organized structure.
The factors to the promote decentralization:-
1) size and complexity of the organization :- large organization with diverse product line
and conglomerates and companies involved in different field would find decentralization to
be more effective due to limitation in managerial expertise as well as increased executive
work load.
2) Location of target market: - if the customer of an organization are located geographically
for apart,decentralization would be more appropriate management resources would be
placed close to the customers allowing quicker decisions and faster customer service.
3) Desirability of creativity in the organization :- Decentralization is suggested if creativity
within the organization is desirable and necessary. It gives the subordinates freedom to be
innovative and find better ways of doing things this freedom is a highly motivational factor
which encourages creativity.
4) The time frame of decision :- where quick on-the-spot decisions must be made, the
authority to make them must be delegated encouraging decentralization.

Authority is delegated when a superior gives a subordinate desecration to make decisions.

Delegation is necessary for an organization to exist. Just as no one person in an enterprise
can do all the tasks necessary for accomplishing a group purpose, so it impossible ,as an
enterprise to grow, for one person to exercise all the authority for making decisions.The
process of delegation involves:-
(a) Determining the results expected from a position.
(b) Assigning tasks to a person .
(c) Delegating authority for accomplishing these tasks
(d) Holding the person in that position responsible for the accomplishment of the tasks.
Delegation of authority should be affective and result oriented. Some of the operation that
serve as guidelines for effective delegation are:-
1) Functional clarity:- The function to be performed, the methods of operation and the results
expected must be clearly defined. the authority delegated must be adequate to ensure that
these function are well performed.
2) Matching authority with responsibility:- Responsibility and authority are highly
interconnected. Authority should be adequate and should not only match the duties to be
performed but also the personal capabilities of the subordinate.
3) Unity of command :- A subordinate should be responsible to only one superior who is
delegating the authority in the first place. In this manner the responsibility for mistakes or
accomplishments is traceable and chances of conflict or confusion is minimal.
5) Principle of communication :- A misunderstood responsibility can be very dangerous . A
general authority can be easily misused. Accordingly,both the responsibility and authority
must be clearly specified openly communication must be continuously kept open for issuing
directions as well as receiving feedback.

Even though delegation of authority has some definite advantages and is necessary for
optimal organizational operations ,some managers are very reluctant to delegate authority and
many subordinate avoid taking on the responsibility and authority. The causes for such
reluctance are based upon certain beliefs and attitudes which are personal and behavioral in
nature

Reluctance of manager:-
(a) A manager may believe that he can do his work better than his subordinate. He might think
that his subordinates are not capable enough.
(b) Since the manager is responsible for the action of his subordinates, he many not be willing
to “take chances” with the subordinate s.
(c) Some managers lack the ability to direct their subordinate. They may not be good in
organizing their thoughts as well as activities and thus may not know what to do after
delegation in order to help the subordinate complete the task.
(d) Some manager feel very insecure in delegating authority ,specially when the subordinate is
capable of doing the job better.
Reluctance of subordinate - while delegation of authority can be highly motivating factor for
some subordinate, other may be reluctant to take it for the following reasons:-
(a) Many subordinates are reluctant to accept authority and make decision for fear that they
would be criticized or dismissed for making wrong decision. This is specially true in
situations where a subordinate has make a mistake earlier.
(b) Some subordinate hesitate to accept new and added assignments where there is a lack of
necessary information and when the available resource are not adequate or proper.
(c) The subordinate may lack self. Confidence in doing te job and may fear that the supervisor
will not be available for guidance once the delegation is made and this makes them feel
uncomfortable with additional responsibility.
(d) The subordinate may not be given sufficient incentives for assuming extra responsibility
which could mean working harder under pressure. According in the absence of adequate
compensation in the form of higher salary or promotion opportunities a subordinate may
avoid promotional opportunities a subordinate may avoid additional authority.
 Unit –III

Q5. Explain main leadership styles.

Ans. A leader is one who guides and directs other people he gives the efforts of his followers
a direction and purpose by influencing their behavior.

Leadership is psychological process of influencing followers or subordinates and providing

guidance to them. It is always related to situation, which means a leader may be effective in
one situation while ineffective in another. To be effective, a leader should change his
leadership style dependency upon the requirements of the situations. Leadership is a
compound of at least four major ingredients.
a) The ability to use power effectively and in responsible manner.
b) The ability to comprehend that human beings have different motivation forces at
different times and different situations.
c) The ability to inspire and
d) The ability to act in a manner that will develop a climate conductive to
responding to and arousing motivation.

Style of leadership
Leadership style refers to a leader’s behavior. Behavioral pattern, which the leader reflects in
his role as a leader, is often described as the style of leadership. Different leadership patterns
exits among leaders in different times and in different situations. Leadership style is the result
of leader’s philosophy, personality, experience and value system. It also depends upon the
type of followers and organizational atmosphere prevailing in the enterprise. Different types of
leadership styles are:

1. Autocratic leadership
2. Participative leadership.
3. Free rein leadership.

1. Autocratic or Dictatorial Leadership

Autocratic leaders keep the decision-making authority and control in their own hands and
full responsibility for all actions. Also, they structure the entire work situation in their own
way and expect the workers to follow their orders and tolerate no deviation from their
orders. The autocrat ranges from tough to paternalistic, depending upon whether his
motivational approach is threat and punishment or rewards. The autocratic leader believes
that his leadership based upon the authority conferred upon him by some source, such as
his position, knowledge, strength or the power to punish and reward.

Advantages

a) Autocratic leadership is useful when the subordinates are new on the job and
have no experience either in the managerial decision making process or
performing without active supervision.
b) It can increase efficiency, when appropriate, and get quicker results, specially in
a crisis or emergency situation, when the decision must be taken immediately.
c) The paternalistic autocrat is useful when the subordinates are not interested in
seeking responsibility or when they feel insecure at the job or when they work
better under clear and detailed directives.
 d) It is useful when the chain of command and the division of work is clear and
understood by all.

Disadvantages

a) One-way communication without feedback leads to misunderstanding and

communications breakdown.
b) An autocratic leader makes his own decisions which can be very dangerous in
this age of technological and sociological complexity.
c) Since it inhibits the worker’s freedom, it fails to develop his commitment to the
objectives of the organization.
d) Since it provides for worker resentment, it creates problems with their morale
resulting in poor productivity in the long run.
e) It is unsuitable when the work force is knowledgeable about their jobs and the job
calls for teamwork and cooperative spirit.

2. Participative or Democratic Leadership

In this type of leadership, the subordinates are consulted and their feedback is
taken into the decision making process. The leader’s job is primarily of a moderator,
even though he makes the final decision and he alone is responsible for the results. The
group members are encouraged to demonstrate initiative and creativity and take
intelligent interest in setting plans and policies and have maximum participation in
decision-making. This ensures better management – labour relations, higher moral and
greater job satisfaction. This type of leadership is especially effective when the work –
force is experience and dedicated and is able to work independently with least directive.

Advantages
a) Active participation in the management by labour assures rising productivity
satisfaction.
b) Workers develop a greater sense of self – esteem, due to importance given to
their ideas and their contribution.
c) They become more committed to changes that may be brought about by policies
changes, since they themselves participated in bringing about these changes.
d) The leadership induces confidence, cooperation and loyalty among workers.
e) It results in higher employee morale.
Disadvantages
a) The democratic leadership requires some favorable conditions in that the labour
must be literate, informed and organized. This is not always possible.
b) This approaches assumes that all workers are genuinely interested in the
organization and that their individual goals are successfully fused with the
organization goals. This assumption may not always be valid.
c) There must be total trust on the part of management as well as employees.
Some employees may consider this approach simply an attempt to manipulate
them. Accordingly, the employees must be fully receptive to this approach to
make it meaningful.
d) Some group members may feel alienated if their ideas are not accepted for
action. This may create a feeling of frustration and ill – will.
e) This approach is very time consuming and too many viewpoints and ideas may
make the solid decision more difficult and may be source of frustration of
impatient management.
f) Some managers may be uncomfortable with this approach because they may
fear an erosion of their power – base and their control over labour.
 g) This approach relies heavily on incentives and motivation of recognitions.
Appreciation, status and prestige. The labour may be more interested in financial
incentives instead of prestige.

3. Laissez – faire or Free – reign Leadership

In this type of leadership, the leader is just a figurehead does not give any
direction. He acts principally as liaison between the group and the outside elements
and supplies necessary materials and provides information to group members. He
lets the subordinates plan and organize and develop their own techniques for
accomplishing goals within the generalized organizational policies and objectives.
The leader participates very little and instead of leading and directing, he becomes
just one of the members. He does not attempt to intervene or regulate or control and
there is complete group or individual freedom in decision-making. This type of
leadership is highly effective when the group members are highly intelligent and are
fully aware of their roles and responsibilities and have the knowledge and skills to
accomplish these tasks without direct supervision.
This type of leadership is evident in research laboratories where the scientists
are fairly free to conduct their research and make their decisions. Similarly, in a
university or a college, the chairperson does not interfere in the professor’s teaching
methods, but only assigns the courses to be taught. From then onwards, the
professors are very much their own leaders.

Advantages
a) It creates an environment of freedom, individuality as well as the team sprit.
b) It is highly creative, with a free and informal work environment.
c) This approach is very useful where people are highly motivated and achievement
oriented.

Disadvantages
a) It may result in disorganized activities, which may lead to inefficiency an chaos.
b) Insecurity an frustration may develop due to lack of specific decision - making
authority and guidance.
c) The team sprit may suffer due to possible presence of some uncooperative
members.
d) Some members may put their own interests above the group and team interests.

In practice, a leader may use all styles over a period of time, but one style tends to
predominate as his normal way of using power. For example, factory supervisor who is
normally autocratic may be participative in determining vacation schedules and free rein in
selecting the departmental representative for safety committee. It should be noted that the
classification is not scientific.

Q6. Define Control Process. Why is control so essential in business?

Ans. The managerial function of controlling is the measurement and correction of
performance in order to make sure that enterprise objectives and the plans devised to
attain them are accomplished.

The essential elements of any control process are (1) Establishment of

Standards (2) Measurement (3) Comparing performance with the standards and (4)
Taking corrective actions.
 1) Establishment of Standards is the first step in control process. Standards
represent criteria for performance. A standard acts as reference line or a basis of
appraisal of actual performance. Standards should be set precisely and preferable in
quantitative terms. Setting standard is closely linked and is and integral part of the
planning process. Standards are used or bench marks by which performance is
measured in the control operations at the planning stage, planning is the basis of
control.

2) Measurement of Performance After establishing the standards, the second step is

to measure actual performance of various individuals, groups or units. Management
should not depend upon the guess that standards are being met measurement of
performance against standards should ideally be done on a forward looking basis so
that deviations may be detected in advance of their occurrence and avoided by
appropriate actions.

3) Comparing Performance with Standards Appraisal of performance or comparing

of actual performance with pre-determined standards is an important step in control
process.

Comparison is easy where standards have been set in quantitative terms as in

production and marketing. In other cases, where results are intangible and cannot
be measured quantitatively direct personal observations, inspection and reports are
few methods which can be used for evaluation. The evaluation will reveal some
deviations from the set standards. The evaluator should point out defect or
deficiencies in performance and investigate the causes responsible for these.

4) Taking Corrective Actions Managers should know exactly where in the assignment
of individual or group duties, the corrective action must be applied. Managers may
correct deviations by redrawing their plans or by modifying their goals. Or they may
correct deviations by exercising their organizing functions through reassignment or
clarification of duties. They may correct, also, by additional stapling or better
selection and training of subordinates.

Unit –IV

Q7. What are methods of communication in management?

What are essential qualities of a good business report.
Ans. There are various methods of communication in management. These include (i) Oral
Communication (ii) Written Communication and (iii) Non Verbal Communication.

1) Oral Communication The chief means of conveying messages is oral

communication. Oral communication may take place (a) face to face conversation
and (b) through mechanical devices.

Face to face conversation is the most natural way of transmitting message. It is the
best means of securing cooperation and resolving problems. Various studies have
shown that face to face communication carries the message better than any other
media. It avoids misunderstanding between persons talking face to face. It is
because by having face to face conversation one can convey the message both by
words as well as expressions and receive the response in minimum amount of time.
 If the receiver is unsure of the message rapid feedback allows for early detection by
the sender and hence allows for early correction.

Mechanical devices, which are used, for oral communication include telephones,
intercom system and dictating machines.

The major disadvantage of oral communication in management is where decisions

and other communication are verbally passed up and down to authority hierarchy,
there are considerable opportunity for message to become distorted.

2) Written Communication Written Communication include memos, letters, electronic

mail, fax transmissions, organizational periodicals notice place on bulletin boards or
any other device that is transmitted via written words or symbols. Organizations use
written communication because it is tangible and verifiable. Typically both the sender
and receiver have a record of the communication. The communication can be stored
for an indefinite period. The marketing plan for a new product for instance is likely to
contain a number of tasks spread out over several months. By putting it in writing
those who have to initiate the plan readily refer to it over the life of plan.

The final benefit of written communication comes from the process itself. A person is
usually more careful with the written word than the oral word. One is forced to think
more thoroughly about what one has to convey in a written message than in the
spoken one.

Written messages have their drawbacks. They are time consuming so although
writing may be more precise, it also consumes great deal of time. The other major
disadvantage is pack of feedback oral communication allows the receiver to respond
rapidly to what he thinks he hears. Written communication however, does not have a
feedback mechanism.

3) Non Verbal Communication: Communication through gestures or postures is often

used as a means to supplement verbal communication. If there is a face to face
conversation between two persons, they can better understand the feelings,
attitudes and emotions of each other. Gestural communication is very much helpful
to motivate the subordinates, as for instance a pat on the back of the subordinate.
Similarly gestures taken by the listeners can help the communicator to know their
reactions.

Essential Qualities of Good Business Report

A well written business report can help avoid semantic and perception barriers. A well
written business report eliminates the possibility of misunderstanding and
misinterpretation. In writing messages, it is necessary to be precise, making the
meaning as clear as possible so that it accomplishes the desired purpose. The
language used should be simple, as it will be easier for the receiver to understand the
message. The message will be lost if the words used are complex and do not lend to
clear single meaning. Vagueness destroys accuracy which leads to misunderstanding of
the meaning or intent of the message. Accordingly be specific and to the point.

There is great importance of timing in Business communication. The communication

should not only be timely so that the decisions and actions can be taken in time and
 when necessary but also the timing of the message and the environment setting in
which the message is delivered and received is equally important. An important
message delivered at he wrong time or in a non-conducive environment may lose its
effectiveness.

Business communication must pass through the proper channels to reach the intended
receiver. The communication flow ant its spread must avoid by passing levels or people.
When these concerned levels are omitted or by passed, it creates bickering distrust
confusion and conflict. Accordingly the established channels must be used as required.

Unless it is one-way communication that is simply meant to inform all business,

communication needs a follow up to ensure that is was properly understood and carried
out. A verbal communication may need to be followed up by written confirmation. The
response and feedback to the communication would determine. Whether the action to
the communication has been appropriate and accurate.

Business communication should be complete so as not only to meet the demands of

today but should also be based on future need of the organization as well as individuals.
A reasonable projection and assessment of future needs and environment both work
and social should be incorporated when planning and executing communication.

Q8. What are the barriers in communication? How can you overcome them?
Ans. The communication must be interpreted and understood in the same manner as it was
meant to be sent by the sender, otherwise it will not achieve the desired results and a
communication break-down will occur. There are certain external roadblocks to effective
communication like noise, poor timing, incomplete, inadequate or unclear information , poor
choice of channel of transmission of information etc. which can affect the proper reception of
the communication. In addition there are personal factors which may interest the
communication not in the same manner as it was intended by the sender but in a way that the
receiver wants to receive depending upon the stimuli present emotions or prejudices for or
against a concept or ideology or personal conflict so that instead of interpreting the content of
the communication, the intent of the sender my be interpreted.
Some of the organizational barriers and some of the interpersonal barriers to effective
communication are:-
(1) noise barriers
(a) poor timing
(b) inappropriat channel
(c) improper or inadequate information
(d) information overload
(e) network breakdown
(2) semantic barriers
(3) feedback barriers
(4) cultural barriers
(5) perception
(6) sender credibility

Communication can be made effective by using following guidelines:-

(1) the ideas and message
(2) Communication should be comprehensive and executing communication.
.