BBA Semester I (2019 -22 Batch)

Principles of Management
Consolidated Notes

Topic 1: Concept of Management

Different definitions of Management?
 Getting things done
 The process of setting and achieving goals through the execution of five
management functions namely planning, organising, staffing, directing and
controlling.
 The process of leading and directing all or part of an organisation often a
business through deployment and manipulation of resources.

According to Henri Fayol, Management is to forecast, to plan, to organise, to command,

to coordinate and control activities of others.
According to Harold Koontz, Management is the art of getting things done through
others and with formally organised groups.

Topic 2: Categorisation of Management:

Categorisation 1: Based on Functional Area of Business
1. Strategic Management
2. Sales Management
3. Marketing
4. Public Relations
5. Operations Management
6. Supply Chain Management
7. Procurement Management
8. Financial & Accounting Management
9. Human Resources Management
10. Information Technology Management
11. R& D Management
12. Engineering Management
13. Program Management
14. Project Management
15. Risk Management
16. Change Management
17. Quality Management
18. Innovation Management
19. Design Management

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 20. Facility Management
21. Knowledge Management

Categorisation 2: Based on Availability of Resources

1. Management by Full Fledged Hiring
2. Management from Scratch

Topic 3: Distinguishing between Management and Administration:

Management Administration
1. Organised way of managing people 1. Process of administering an
and assets of a business organisation organisation by a group of people.
2. Authority- Middle and lower level 2. Authority-Top Level
3. Role-Executive 3. Role- Decisive
4. Concerned with policy implementation 4. Concerned with policy formulation
5. Area of operation- It works under 5. Area of operation – full control
under administration. over the activities of the organisation.
6. Applicable to profit making 6. Government organisations, Military Clubs,
organisations hospitals, educational institutions.
7. Decides who will do the work? How will 7. Decides what should be done? And when
it
should be the work be done? be done?
8. Work- Putting policies and plans into 8. Formulation of plans, framing policies
and
action setting objectives.
9. Managing work 9. Making best possible allocation of limited
resources.
10. Key person is manager 10. Key person is administrator
11. Mostly represents employees who work 11. Mostly represents owners who get a
for remuneration. return on the capital invested by them.

Topic 4: Theories of Management

1) Systems Theory: At its creation, Systems Theory (or The Systems Approach) had
nothing to with business management and everything to do with biology. That’s
because Ludwig von Bertalanffy (1901-1972) — a biologist at the time — founded
general systems theory (GST) in an attempt to refute reductionism and revive the
unity of science.
The premise of general systems theory is that a system is composed of interacting
elements that are affected by their environment. Because of this interaction, the

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 system as a whole can evolve (develop new properties) and self-regulate (correct
itself).
When applied to business, experts shorten “general systems theory” to just Systems
Theory. In actual fact, Systems Theory is more a perspective than a fully formed
practice. Systems Theory encourages you to realize that your business is a system
and is governed by the same laws and behaviors that affect every other biological
organization.
This introduces such concepts as:
 Entropy — The tendency for a system to run down and die (a thing to be
avoided in business)
 Synergy — Working together, the parts can produce something greater than
those same parts could produce on their own
 Subsystem — The whole (your business) is built on subsystems, which
themselves are built on yet more subsystems
Because it is a way of looking at your business rather than a concrete management
process, you can use Systems Theory in concert with the other management theories
on this list.

2) Principles of Administrative Management

Miner and engineer Henri Fayol (1841-1925) developed his principles of administrative
management as a top-down approach to examining a business. He put himself in his
manager’s shoes and imagined what situations they might encounter when dealing with
their team.
From this, he concluded that his managers — and indeed management in general — had
six responsibilities when it came to managing employees:
i. Organize
ii. Command
iii. Control
iv. Coordinate
v. Plan
vi. Forecast
With those responsibilities in mind, Henri Fayol developed 14 principles of
administration that influence how managers should lead their teams. These principles,
which range from the importance of maintaining a clean facility to the value of initiative
and teamwork, are the foundation for many of today’s most successful businesses.
i. Division of Work
ii. Authority and Responsibility
iii. Discipline
iv. Unity of Command
v. Unity of Direction
vi. Subordination of Individual Interest

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 vii. Remuneration
viii. The Degree of Centralization
ix. Scalar Chain
x. Order
xi. Equity
xii. Stability of Tenure of Personnel
xiii. Initiative
xiv. Esprit de Corps

3) Bureaucratic Management Theory: Max Weber (1864-1920) took a more

sociological approach when creating his bureaucratic management theory. Weber’s
ideas revolve around the importance of structuring your business in a hierarchical
manner with clear rules and roles.
According to Weber, the ideal business structure (or bureaucratic system) is based
on:
 Clear division of labor
 Separation of the owner’s personal and organizational assets
 Hierarchical chain of command
 Accurate record keeping
 Hiring and promotion based on qualifications and performance, not personal
relationships
 Consistent regulations
Many today see Bureaucratic Management as an impersonal style that can become
overwhelmed by rules and formalities. That said, it can be very useful for new
businesses that are in need of standards, procedures, and structure.

4) Scientific Management
Toward the end of the 19th century, Frederick Taylor (1856-1915) conducted controlled
experiments to optimize his workers’ productivity. The results of these experiments
helped him form the belief that the scientific method — not judgment or discretion — is
the best determiner of efficiency in the workplace.
Scientific Management promotes standardization, specialization, assignment based on
ability, and extensive training and supervision. Only through those practices can a
business achieve efficiency and productivity. This management theory attempts to find
the optimal way to complete a given task, often at the expense of the employees’
humanity.
The theory as a whole isn’t used much anymore, but parts of it — workplace efficiency,
training, and cooperation — are the foundation of some of the most successful
businesses on the planet.
5. Theory X and Y: In 1960, social psychologist Douglas McGregor (1906-1964)
published his book The Human Side Of Enterprise. In it, he outlined two drastically
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 different styles of management (theories X and Y). Each style is guided by a manager’s
perceptions of their employees’ motivations.
Theory X posits that employees are apathetic or dislike their work. Managers who
adhere to Theory X are often authoritarian and will micromanage everything because
they don’t trust their employees.
Theory Y posits that employees are self-motivated, responsible, and want to take
ownership of their work. Managers who adhere to Theory Y include their employees in
the decision-making process and encourage creativity at all levels.
In practice, small businesses tend to operate on Theory Y while large businesses tend to
operate on Theory X.
6. Human Relations Theory: In the first quarter of the 20th century, psychologist
Elton Mayo (1880-1949) was tasked with improving productivity among dissatisfied
employees. Mayo attempted to improve worker satisfaction by changing environmental
conditions like lighting, temperature, and break time. All of those changes had a positive
effect.
Mayo then tried changing variables that he perceived would have a negative effect on
satisfaction, like the length of the workday and quotas (he increased both). What he
observed was that regardless of the change — good or bad — worker satisfaction always
increased.
This led Mayo to conclude that performance was a result of the attention the researchers
paid to the workers. In other words, the attention made the workers feel valuable.
These findings gave rise to Mayo’s Human Relations Theory, in which he states that
employees are more motivated by social factors — like personal attention or being part
of a group — than environmental factors, such as money and working conditions.
7. Theory of Classical Management
Classical Management Theory is predicated on the idea that employees only have
physical needs. Because employees can satisfy these physical needs with money,
Classical Management Theory focuses solely on the economics of organizing workers.
Due to this narrow view of the workforce, Classical Management Theory ignores the
personal and social needs that influence employees’ job satisfaction. As a result,
Classical Management Theory advocates seven key principles:
1. Profit maximization
2. Labor specialization
3. Centralized leadership
4. Streamlined operations
5. Emphasis on productivity
6. Single-person or select-few decision making
7. Priority to the bottom line
When these seven principles are put into practice, they create an “ideal” workplace
based on a hierarchical structure, employee specialization, and financial rewards.

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 Control of the business is held by a select few who exercise exclusive control over the
decisions and direction the company takes. Underneath those select few, middle
managers govern the day-to-day activities of the employees who are at the bottom of the
pecking order.
And all of this revolves around the idea that employees will work harder and be more
productive if they are rewarded in larger and larger increments (via wages or benefits).
While this may not sound like an “ideal” management theory by today’s standards, it
worked well for many years prior to the early 20th century. And even though the system
isn’t applied lock-stock-and-barrel as it once was, there are several strong points that
managers can use in the 21st century. They include:
 Clear managerial structure
 Division of labor
 Clear definition of employee roles
These three principles, combined with other management theories on this list, can
improve the way your employees — and your business — works in this modern age.
8. Contingency Management Theory: Fiedler and others conceived of Contingency
Management Theory in the 1950s and 60s. Fiedler based his theories on the idea that
effective leadership was directly related to the traits the leader displayed in any given
situation.
From that idea sprang the belief that there exist a set of traits that are effective for every
situation and that different situations demand different leadership traits. As such,
leaders must be flexible and adapt to change as the market, the business, and the team
demands.
Fiedler then extended that concept from an individual, management focus to a much
broader organization-focused theory. Fiedler’s theory suggests that there is no one
management approach that suits every situation and every organization.
Instead, three general variables determine business management and structure. They
are:
 The size of the organization
 The technology employed
 The leadership at all levels of the business
What that means for the individual manager who subscribes to Contingency
Management Theory is that they must be able to identify the particular management
style suitable for every given situation. They must also be willing and able to apply that
management style quickly and effectively whenever necessary.
In a larger sense, businesses and managers who adhere to Contingency Management
Theory — whether intentionally or unintentionally — will be concerned, above all else,
with maintaining the alignment of their team and achieving a good fit in all projects and
situations.

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 Ultimately, according to Contingency Management Theory, there is no one best way to
do things. The way a business chooses to organize will depend on the environment in
which they operate.
9. Modern Management
Modern Management Theory developed as a direct response to Classical Management
Theory. Modern-day businesses are faced with navigating rapid change and
complexities that seem to grow exponentially overnight. Technology is both the cause of
and the solution for this dilemma.
As such, businesses that incorporate the Modern Management Theory into their
operations seek to meld technology and, to some extent, mathematical analysis with the
human and traditional elements of their organization.
This combination of scientific and social variables creates a dual-pronged approach to
management, organization, and decision-making. Modern Management Theory
emphasizes:
 Using mathematical techniques to analyze and understand the relationship between
managers and employees.
 That employees don’t work for money alone (in contrast to Classical Management
Theory). Instead, they work for happiness, satisfaction, and a desired lifestyle.
Modern Management Theory embraces the idea that people are complex. Their needs
vary over time, and they possess a range of talents and skills that the business can
develop through on –the –job training and other programs.
At the same time, management can use mathematical techniques such as statistical,
cost, revenue, and return-on-investment (ROI) analysis to make rational decisions
unaffected by emotion. Though Modern Management Theory isn’t perfect by itself, it
does, like Classical Management Theory, offer some useful points that you can combine
with other theories to create a structure that is just right for your business.

10. Quantitative Management Theory: Quantitative Management Theory is an

offshoot of Modern Management Theory developed during World War II in response to
managerial efficiency.Quantitative Management Theory brought together experts from
scientific disciplines to address staffing, materials, logistics, and systems issues for the
U.S. military. The clear-cut, numbers-oriented approach to management (which applies
to business as well) helped decision makers calculate the risks, benefits, and drawbacks
of specific actions. This shift toward pure logic, science, and math is tempered by the
belief that these mathematical results should be used to support, not replace,
experienced managerial judgment.

11) Organizations As Learning Systems

Organizations As Learning Systems Management Theory is fairly new when compared
to many of the other theories on this list. Organizations As Learning Systems
Management Theory — sometimes called Integral or Holistic Management Theory —

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developed as a postmodern response to many of the older management theories that are
still in use today.
It starts with the idea that the business is a system that is built on a succession of
subsystems. In order for the business to run smoothly and efficiently, each subsystem
must also work smoothly and efficiently within itself, but also with the other subsystems
around it.
In this theory, managers are responsible for coordinating the cooperation necessary to
ensure the larger “organism” continues to function successfully.
Learning and change are major components of this theory, and learning is encouraged
and made available to everyone — not just middle and upper-management. The
emphasis in this theory is on teamwork, participation, information sharing, and
individual empowerment.

Topic 5: Definition of Manager

Definition 1: An individual who is in charge of a certain group of tasks, or a certain

subset of a company. A manager often has a staff of people who report to him or her.

Definition 2: A manager is an expert in his or her field and is a support system for
employees. Managers work within a business and work together as a team to achieve
company goals.

Definition 3: A manager is a person responsible for supervising and motivating

employees and for directing the progress of an organization.

Definition 4: Managers are the people to whom this management task is assigned, and it
is generally thought that they achieve the desired goals through the key functions of
planning and budgeting, organizing and staffing, problem solving and controlling.

Topic 6: Roles of Managers

According to Mintzberg there are ten roles for managers, which are as follows:
i. Figurehead.
ii. Leader.
iii. Liaison.
iv. Monitor.
v. Disseminator.
vi. Spokesperson.
vii. Entrepreneur.

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 viii. Disturbance Handler.
ix. Resource Allocator.
x. Negotiator.

Category Roles

Figurehead
Leader
Interpersonal Liaison

Monitor
Disseminator
Informational Spokesperson

Entrepreneur
Disturbance Handler
Resource Allocator
Decisional Negotiator

Interpersonal Category

The managerial roles in this category involve providing information and ideas.
1. Figurehead – As a manager, you have social, ceremonial and legal responsibilities.
You're expected to be a source of inspiration. People look up to you as a person with
authority, and as a figurehead.
2. Leader – This is where you provide leadership for your team, your department or
perhaps your entire organization; and it's where you manage the performance and
responsibilities of everyone in the group.
3. Liaison – Managers must communicate with internal and external contacts. You
need to be able to network effectively on behalf of your organization.

Informational Category

The managerial roles in this category involve processing information.

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4. Monitor – In this role, you regularly seek out information related to your
organization and industry, looking for relevant changes in the environment. You also
monitor your team, in terms of both their productivity, and their well-being.
5. Disseminator – This is where you communicate potentially useful information to
your colleagues and your team.
6. Spokesperson – Managers represent and speak for their organization. In this role,
you're responsible for transmitting information about your organization and its
goals to the people outside it.

Decisional Category

The managerial roles in this category involve using information.

7. Entrepreneur – As a manager, you create and control change within the
organization. This means solving problems, generating new ideas, and implementing
them.
8. Disturbance Handler – When an organization or team hits an unexpected
roadblock, it's the manager who must take charge. You also need to help mediate
disputes within it.
9. Resource Allocator – You'll also need to determine where organizational
resources are best applied. This involves allocating funding, as well as assigning staff
and other organizational resources.
10. Negotiator – You may be needed to take part in, and direct, important negotiations
within your team, department, or organization.

Topic 7: Types of Managers

Categorization 1: 7 types of Mangers

1. The Problem-Solving Manager

This boss is task-driven and focused on achieving goals. These problem solvers are
constantly putting out fires and leading by chaos.

2. The Pitchfork Manager

People who manage by a pitchfork are doing so with a heavy and often controlling hand:
demanding progress, forcing accountability, prodding and pushing for results through
the use of threats and fear tactics. This style of tough, ruthless management is painful

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for people who are put in a position where they are pushed to avoid consequences rather
than pulled toward a desired goal.

3. The Pontificating Manager

These managers will readily admit they don’t follow any particular type of management
strategy. Instead, they shoot from the hip, making it up as they go along, often
generating sporadic, inconsistent results. As a result, they often find themselves in
situations that they are unprepared for. Interestingly, the Pontificating Manager thrives
on situations like this. The Pontificating Manager is the type of manager who can talk to
anyone and immediately make people feel comfortable. This character strength becomes
a crutch to their leadership style, often blinding them to the need to further systemize
their approach. As a matter of fact, the only thing consistent about these managers is
their inconsistency.

4. The Presumptuous Manager

Presumptuous Managers focus more on themselves than anything else. To them, their
personal production, recognition, sales quotas, and bonuses take precedence over their
people and the value they are responsible for building within each person on their team.
Presumptuous Managers often put their personal needs and objectives above the needs
of their team. As you can imagine, Presumptuous Managers experience more attrition,
turnover, and problems relating to managing a team than any other type of manager.

Presumptuous Managers are typically assertive and confident individuals; however, they
are typically driven by their ego to look good and outperform the rest of the team.
Presumptuous Managers breed unhealthy competition rather than an environment of
collaboration.

5. The Perfect Manager

Perfect Managers possess some wonderful qualities. These managers are open to
change, innovation, and personal growth with the underlying commitment to
continually improve and evolve as sales managers—almost to a fault. This wonderful
trait often becomes their weakness. In their search for the latest and greatest approach,
like Pontificating Managers, Perfect Managers never get to experience the benefit of
consistency.

This manager is a talking spec sheet. Their emphasis on acquiring more facts, figures,
features, and benefits has overshadowed the ability of Perfect Managers to recognize the

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critical need for soft skills training around the areas of presenting, listening,
questioning, prospecting, and the importance of following an organized, strategic selling
system.

Perfect Managers rely on their vast amount of product knowledge and experience when
managing and developing their salespeople. Because of this great imbalance, these
manager often fall short on developing their interpersonal skills that would make them
more human than machine.

6. The Passive Manager

Also referred to as Parenting Managers or Pleasing Managers, Passive Managers take

the concept of developing close relationships with their team and coworkers to a new
level. These managers have one ultimate goal: to make people happy. While this is
certainly an admirable trait, it can quickly become a barrier to leadership efforts if not
managed effectively.

Although wholesome and charming, this type of boss is viewed as incompetent,

inconsistent, and clueless, often lacking the respect they need from their employees in
order to effectively build a championship team. You can spot a Passive Manager by
looking at their team and the number of people who should have been fired long ago.
Because all Passive Managers want to do is please, they are more timid and passive in
their approach. These managers will do anything to avoid confrontation and
mistake holding people accountable with confrontation and conflict.

7. The Proactive Manager

The Proactive Manager encompasses all of the good qualities that the other types of
managers possess, yet without all of their pitfalls. Here are the characteristics that this
ideal manager embodies, as well as the ones for you to be mindful of and develop
yourself. The Proactive Manager possesses the

 Persistence, edge, and genuine authenticity of the Pitchfork Manager

 Confidence of the Presumptuous Manager
 Enthusiasm, passion, charm, and presence of the Pontificating Manager
 Drive to support others and spearhead solutions like the Problem-Solving
Manager
 Desire to serve, respectfulness, sensitivity, nurturing ability, and humanity of the
Passive Manager

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  Product and industry knowledge, sales acumen, efficiency, focus, organization,
and passion for continued growth just like the Perfect Manager

The Proactive Manager is the ultimate manager and coach, and a testimonial to the
additional skills and coaching competencies that every manager needs to develop in
order to build a world-class team.

Categorisation 2:

Autocratic

This one is considered the most “old-fashioned,” so we’ll get this out of the way right at
the beginning. This is a leader who is in complete control over everyone else, leaving
little room for flexibility or input from others.

There are benefits to this style. Decisions are made rather quickly, and deadlines are
more likely to be met. Resources and instructions are very clear and there is little to no
confusion in following orders. This doesn’t mean that ongoing training and education
isn’t provided for workers, however, and it also doesn’t mean they don’t have
opportunities to grow.

Unless there is a special circumstance, any instructions given by autocratic leaders

should be followed to the letter. In many cases, this truly could mean the difference
between life or death. For instance, when a Head Surgeon is giving directions to a
surgical student there is absolutely no room for error or veering outside of the strict
structure of the requirements. Employees who seek creative positions are far less likely
to respond to autocratic leadership.

Who uses the autocratic management style?

 High ranking military officers

 Police officers or first responders
 Medical professionals overseeing students or nurses
 Leaders in manufacturing and heavy industry

2. Affiliative

For a business to be truly productive, there must be a certain amount of trust in a fellow
co-worker. In opposition to autocratic managers, affiliative managers are more
relationship-focused. They are best at resolving issues or conflicts between team
members and keeping up employee morale.

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Affiliative managers are also good at recognizing the skillsets of each individual. So if a
project goes off the rails, this type of manager can identify what tasks a person is best at
and assign new roles or responsibilities as needed.

Extroverts particularly thrive in building relationships in the office. They know how to
guide others through stressful situations to preserve a harmonious and happy work
environment.

Who uses the affiliative management style?

 Human resources managers

 Therapists, counselors, and psychiatrists
 Mediators

3. Coaching

Coaches aren’t just for athletics. Professionals know how to use coaching techniques in
the workplace to bring out an employee’s natural strengths.

This style relies much on encouragement, but also plenty of feedback as well. Sometimes
an individual needs to know where they can improve performance, and a coach can
skillfully explain where a person went wrong and how they can make it right in the
future.

For this management style to truly work, employees must be willing to learn, change,
and try new things. Otherwise, coaches will face pushback or even defiance.

Who uses the coaching management style?

 Any management position that requires training employees

 A “life coach” or personal development coach
 An athletic coach or personal trainer

4. Democratic or Participative

This style of management involves everyone. Democratic Leaders allow each team
members’ voice to be heard at work.

This style allows for the highest level of feedback from workers. There are many ways to
do this, including brainstorming sessions on how best to complete a task. When used

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occasionally, it is very effective. However, when used too frequently, a lot of time is
wasted in the discussion process instead of actually accomplishing anything.

The concept of teamwork is key here. Ultimately, however, it is the manager who has a
final say in all decisions, usually lending itself to the majority. Democratic leaders often
find that this allows for more loyalty from the group.

Who uses the democratic or participative management style?

 Office supervisors or coordinators

 Branch leader or team leader
 Operations manager

5. Pacesetting

Pacesetting follows the concept of “leading by example.” In this setting, managers set a
high standard for employees by working hard and meeting the needed deadlines
themselves.

If not done correctly, pacesetting can lead to a poor work ethic or a decline in company
culture. This is because employees must work at a certain “pace.” Instead, these
managers should set clear, but achievable short term and long-term goals.

More than that, it is vital to prevent the “burnout” and high turnover rates that
sometimes occur when this is put into practice. Healthy work schedules and balance
gives the best results for pacesetting.

Who uses the pacesetting management style?

 Managers who oversee sales positions

 Team leaders in retail and food service
 Directors in hospitality

6. Visionary

Do you like to inspire others? You might be a visionary. Visionary leaders motivate their
teams to perform well. They accomplish this through the concept of making work
meaningful for their employees. Because everyone is working towards a shared vision
for the company as a whole, this empowers everyone involved.

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Those who use this style should use caution and pair a visionary style with real, tangible
goals and timelines. This keeps employees grounded and rooted in the company’s
expectations as well as goals for success for the future.

Who uses the visionary management style?

 CEOs and other C-level executives

 Learning and development managers
 Public speakers or presenters

7. Laissez-faire

If there was a style that was a perfect opposite of autocracy, it’s Laissez-faire or “hands-
off” management. In this case, the leader is more like a mentor than a true manager.

Laissez-faire is all about delegation and allowing your team members to step up and
make decisions for themselves. While there is little guidance, Laissez-faire managers
must also provide the needed tools for success.

While this is the most “relaxed” form of management and is popular among workers,
researchers say that this is also one of the least productive methods of leadership.

Who uses the Laissez-faire management style?

 Startup companies
 Creative firms, such as advertising agencies
 Leaders in art, photography, and graphic design

Categorisation 3:

i. Top level
ii. Middle Level
iii. First Line
iv. Team leader

Categorization 4:

i. Micro Manager
ii. Consultative Manager
iii. Leader Manager
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 iv. Perfect Manager
.
1. The Micromanager
How They Are: Micromanagers always want their instructions followed—to the letter.
They are the “do it the way I tell you” type. Don’t be surprised if they’re constantly
behind your back, watching every moment you work, waiting for you to make a mistake,
and nitpicking any liberty you take with your task. This not only puts you in an
uncomfortable position, in more ways than one, but also disrupts the natural flow of
work, making the whole process take longer than it should be.
2. The Consultative Manager
How They Are: They are typically the ones who, like their type name, consult before
making decisions. This could be in the form of a team meeting, asking for input on
better procedures, or a one-on-one meeting, looking for feedback on their style. While
this is good (and even admirable) in its own right, it does have some cons. If the
consultation turns democratic, then the whole decision-making process may double
since explaining plans, consequences, and counting of votes take time. But this type of
manager will always be on the good side of their people because they respect the
individual and collective voices of the team.
3. The Leader Manager
How They Are: This type of manager takes pride in how they do their work. They always
strive to set an example. The pro: if they are good workers, then they are the model
managers, always aiming for excellence. The con: if they are less than desirable, then no
matter how much you want to make them change, they won’t. On one hand, you have a
manager you can emulate, even after you resign from work. On the other, you’ve got
someone no one wants to work with because they think they’re right even when they’re
wrong.
4. The Perfect Manager
How They Are: These are the managers you paradoxically have lots and nothing to say
about. They are extremely competent in any service. They are very open when it comes
to anything that can be beneficial to the team. They are understanding of the different
problems that can arise in work and life, and will actually do their best to help you in
any way they can. In short, not only are they the perfect managers; they are also the
perfect friends.

Categorisation 5:
i. General Managers
ii. Functional Managers
iii. Frontline Managers
There are three main types of managers: general managers, functional managers, and
frontline managers. General Managers are responsible for the overall performance of an
organization or one of its major self-contained subunits or divisions. Functional

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managers lead a particular function or a subunit within a function. Frontline Managers
are the managerial glue of a business, responsible for many critical day-to-day
operations.

Topic 8: Qualifications of Managers

The basic qualifications for managers is a bachelors degree in business administration

or management and work experience in a business setting. Depending on the particulars
of the management role, managers may be required to also hold a particular degree or
certification, or have a degree or specialized training related to their business or
industry.

Industry Knowledge
One of the most critical qualifications for a manager is that of knowledge of the industry.
Understanding the best practices in a business and having a good grasp of overall
operations is key to effectively managing people and processes. That knowledge may be
gained from formal or vocational education, or from work experience.
Good Communication Skills
Managers must be able to communicate effectively with employees, customers and
supervisors. This means having good written and verbal communication skills and an
ability to read people, troubleshoot problems and help teams collaborate as necessary. A
manager should also be able to effectively articulate needs, convey information and
provide status updates to higher-ups in a company.
Ability to Direct People
Managers often direct the activities of other staffers, and as such, must possess the
ability to bring people together around a common goal. This may mean helping
employees set goals, establishing parameters for how work is performed and ensuring
that staffers have the resources necessary to do their jobs efficiently. Managers must be
able to match individual employee skill sets to necessary job tasks and help them pivot
as necessary to accomplish objectives.
Time Management Skills
Solid time management skills are a critical management requirement. This means not
only being able to effectively budget their own time, but also that of employees. This
relates to prioritization, delegation, juggling multiple competing priorities and ensuring
that the most critical tasks are always addressed. Managers must also have the ability to
pick up slack for their teams, when necessary.

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Problem-Solving Ability
Managers are regularly charged with solving problems, ranging from the simple to the
complex . This requires a clear head, a calm demeanor and an ability to have pinpoint
focus when necessary. Managers must have a strong internal fortitude that enables them
to help staffers assess and resolve issues, all while maintaining the integrity of the
organization.

Topic 9: Management Styles

A management style is the particular way managers go about accomplishing these
objectives. It encompasses the way they make decisions, how they plan and organize
work, and how they exercise authority.
Management styles vary by company, level of management, and even from person to
person. A good manager is one that can adjust their management style to suit different
environments and employees. An individual’s management style is shaped by many
different factors including internal and external business environments, and how one
views the role of work in the lives of employees.
Internal company factors that determine a management style include, but are not
limited to, policies, priorities, and corporate culture, staff skill levels and motivation,
and management structures.
External factors affecting management styles are those that are outside of the control of
the organization. These include, but are not limited to consumers, suppliers,
competitors, the economy, and the law.
All management styles can be categorized by three major types: Autocratic, Democratic,
and Laissez-Faire, with Autocratic being the most controlling and Laissez-Faire being
the least controlling.
Autocratic
Autocratic management is the most controlling of the management styles. Variations of
this style are authoritative, persuasive, and paternalistic. Autocratic managers make all
of the decisions in the workplace. Communication with this type of management is one
way, top-down to the employees. Employee ideas and contributions are not encouraged
or considered necessary. Roles and tasks are clearly defined, and workers are expected
to follow these directions without question while being consistently checked and
supervised.
This type of style is particularly useful in organizations with hierarchical structures
where management makes all of the decisions based on positioning in the hierarchy.
Employees that benefit from this style of management include those who are new,
unskilled, or unmotivated, as they need the supervision and clear direction. Managers
can benefit greatly from using this style in times of crises or serious time constraints.

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The advantages of the autocratic management style are little uncertainty, clearly defined
roles and expectations for employees, and the speed of decision-making. All decisions
are made by the manager and employees are expected to be compliant leaving little
room for variation or confusion. Decision-making speed is ideal and is not slowed by
conflicting thought or agendas.
Disadvantages include lack of staff input with ideas are not encouraged or shared. This
can lead to job dissatisfaction, absenteeism, and employee turnover. Because managers
make all of the decisions, the employees is not inclined to act autonomously and may
become too dependent on the manager. Not all employees want or need supervision,
and as a result can become resentful and unhappy.[5] Too many dissatisfied employees
and the separation of power with an autocratic management style can lead to an ‘us vs
them’ mentality.
Authoritative style
With this management style there is little trust or confidence in employees. This
manager dictates orders to employees and expect that they do exactly as required. These
employees are unskilled. This requires constant teaching and coaching of the staff as
well as consistent supervision.
Persuasive style
Using this management style, the manager still makes all decisions for employees but
then convinces employees that these decisions were made in the best interest of the
team. The only real difference here is that it can establish a higher level of trust between
management and staff.
Paternalistic or Exploitative/Authoritative style
The manager still makes all of the decisions in this style of management and treats the
employees in a condescending or paternalistic way.[2] The decisions are made in the best
interest of the employees and the manager explains these decision and the importance
of them to the employees. These employees may feel well taken care of and looked after
by the paternalistic manager but may become resentful of not being taken seriously.
This style breeds highly dependent employees.
Democratic
The democratic management style involves managers reaching decisions with the input
of the employees but being responsible for making the final decision.[4] There are many
variations of this style of management including consultative, participative, and
collaborative styles. Employee ideas and contributions are encouraged, but not
necessary. Communication is both top-down and bottom-up and makes for a cohesive
team.
This type of style is versatile with the advantages being more diverse perspectives
involved in decision making. As employees are being taken into account before the

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manager makes decisions, the employees feel valued which increases motivation and
productivity.
Disadvantages of the democratic management style are the time it takes to make a
decision due to the gathering of ideas and opinions. There is also the potential conflict of
different viewpoints playing a role in the decision making and as a result, employees can
feel less valued if their input is not taken, leading to decreased morale and productivity.
Consultative style
With this management style trust and confidence is place in the employees and
management actively seeks out their opinions.
Participative style
Similar to consultative, management trusts the employees, but trusts them completely
and not only seeks out their opinions and ideas, but they act on them. They work
together to make decisions as a group and the staff is highly involved. As a result the
employees feel valued, and show increased motivation and productivity. However a
drawback to this style is that some employees do not want to be involved in decision
making and can come to resent a manager with this style
Collaborative style
Managers with the collaborative style communicated extensively with employees and
make decisions by the majority. The manager believes that involving everyone and
making the team take ownership will result in the best decisions made. The main
disadvantage of this style is that it is time-consuming, and sometimes the majority
decision is not the best decision for the business entity, in which case, the manager
should take control of the final choice.
Laissez-faire
The laissez-faire management style involves little or no interference from management.
The staff do not need supervision and are highly skilled which allows management to
take the hand’s off approach and leave the problem solving, and decision making to the
staff.[1] Variations of this style include the delegative style and what is referred to as
bossless environments or self-managed teams.
This type of style works best in organizations with flatter decentralized management.
Typically, the staff is highly skilled, more so than the management, and is trusted with
setting the bar for innovation and setting the objectives.
The advantages of the Laissez faire are increased innovation and creativity through the
autonomy of expert staff. Some examples of this type of employee are be teachers,
creatives, and designers.
Disadvantages include the risk of low productivity by unsupervised staff, loss of
direction due to the hands-off style of management.

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Delegative style
A delegative management style allows employees to take full responsibility of their work
areas. The manager assigns tasks with little or no direction and expects the staff to
achieve results of their own accord. The manager retains responsibility for meeting
objectives. The major drawbacks of this style are lack of uniformity among team
members and uncoordinated efforts toward productivity. Also because little direction
and guidance is given the team can lack direction and focus.

Topic 10: Self Management Teams and MBWA

Although self managed teams (SMT) and bossless environments are not management
styles, they are a style of management chosen by an organization. Like the Laissez-Faire
management style, employees in these environments are highly skilled and motivated,
but take it a step further as they are also highly educated, self directed, and know a great
deal more about the work than management. SMT’s can report directly to directors or
can have managers who follow the delegative, or participative style, but these teams
require more leadership than management to remain productive.
Management by walking around is not an actual management style, it is more of a
practice, but still it is labeled as such. Managers who practice MBWA place importance
on rich levels of interpersonal communication. They believe that managers have a
tendency to become separated from staff and should focus efforts on understanding
employees’ work and being visible and accessible. Managers walk around the premises
checking with employees and on the status of ongoing projects. This practice can be
helpful in maintaining contact with employees and offering guidance as well as
mitigating problems, however MBWA may also lower productivity levels by distracting
employees.

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Topic 11: Levels of Managers:

23
Topic 12: Training and Education for Managers

i. Full Time Executive Education Programs

ii. Diploma and Certificate Program
iii. Short term customized training programs
iv. Seminars
v. Workshops
vi. Short term training programs (including domain specific)
vii. Long term training programs ((including domain specific)

Topic 13: Management Challenges in Digital Era

Some of the major challenges of management in the digital era are as follows:

1. Being concurrently nomadic and collaborative.

2. Renewing the workplace social contract.
3. Creating new modes of leadership.
4. Creating value, not just revenue.
5. The production of collective knowledge.
6. Managing with both IQ and EQ (emotional quotient).
7. A diverse community rather than a disciplined unity.

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 8. Learning about the reality of the virtual.
9. Managing a large volume of information
10. Hiring and retaining talent
11. Satisfying customer needs
12. Managing the change

Topic 14: Role of managers in Digital Age

(i) Change Agents

(ii) Collaborators
(iii) Innovators
(iv) Technology Promoters
(v) Mentors
(vi) Consultants
(vii) Communicators

Topic 15: Attributes of a digital business manager:

(i) Creativity: The managers of modern time are expected to be highly creative and
able to suggest new and innovative ideas. Creativity can make a huge difference
in the organization.
(ii) Flexibility: Managers in today’s time must encourage experimentation and
always be open to try new solutions.
(iii) Open to Feedback: More often than not, managers feel offended by criticism. This
is not going to bode well in the modern workplace. Digital business managers
must possess the ability to understand things from different perspectives and
take criticism constructively.
(iv) Cloud Migration: Digital business managers must embrace the new technologies
that can improve their efficiency by a considerable margin. Managers must be
able to make any transition in the organization a smooth process. For instance,
moving the business to the cloud for easy, efficient and centralized management.
(v) Problem solving: This is an important quality for a business manager in digital
era. Problems arise everywhere but how you solve it impacts the results. A
business manager is always looked upon for guidance and solutions. So a
business manager must be informed and skilled enough to provide directions to
overcome barriers and create effective output.
(vi) Leadership Attitude: The managers must have leadership skills. Rather than
leading by just giving directions, today digital business managers are expected to
lead by example. So, they must be able to stay calm, in the times of transition and
chaos.

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 (vii) Decision making: Many a times, situations become too complex to arrive
at any decision. But a good business manager will always be able to make quick,
analytics-based and result-oriented decisions.
(viii) Collaboration: A business manager today must be able to meet different
segments in the organization to leverage diverse skill-sets for better output.

Topic 16: Business Agility

Business Agility is concerned with the adoption of evolution of values, behaviours and
capabilities. These enable businesses and individuals to be more adaptive, creative and
resilient when dealing with complexity, uncertainty and change leading to improved
well-being and better outcomes.
Business Agility is the ability of an organization:
 To adapt quickly to market changes - internally and externally.
 Respond rapidly and flexibly to customer demands
 Adapt and lead change in a productive and cost effective way without
compromising on quality.
 Continuously be at a competitive advantage.
Business Agility needs two things. One is a dynamic capability, the ability to move fast—
speed, nimbleness, responsiveness. Agility without a well-defined and effective process
is chaos.

Technical Agility: Technical Agility is the ability to quickly nd smoothly adapt to or

integrate current technologies with newer, different, disruptive, expansive or convergent
technologies.

Data Agility: Data Agility is about removing barriers to data usage.

Project Agility: Project Agility is a technique, or a set of techniques that helps in

maintaining project performance and progress in the face of changing customer needs,
business priorities, technology, and organizational dynamics.

A process that is agile is more likely to be effective than one that is rigid, particularly
when what is being done is complex and subject to change. Why? Because the ability to
adapt is necessary if objectives are to be met and people's expectations are to be
satisfied, especially in a volatile environment in which there is uncertainty about
requirements.

Organisational Agility: The capability of a company to rapidly change or adapt in

response to changes in the market. A high degree of organizational agility can help a
company to react successfully to the emergence of new competitors, the development of
new industry-changing technologies, or sudden shifts in overall market conditions.

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Operational Agility: Operational Agility is a company's ability or capacity to find and
seize opportunities to improve operations and processes, within a focused business
model.
Strategic agility is about gaining a competitive advantage by capitalizing on new
innovations. If a new technological advancement is made, a company with strategic
agility is able to quickly take advantage of this change. Strategic agility means a
company is fluid.

Topic 17: Soft skills

Definition 1: Desirable qualities for certain forms of employment that do not depend
on acquired knowledge: they include common sense, the ability to dal with people and a
positive flexible attitude.

Definition 2: Soft skills are the combination of people skills, social skills,
communication skills, emotional intelligence and personality traits that make it easy to
get along and work harmoniously with other people.

Soft skills can be taught, but they're not as straightforward as hard skills: those specific
qualities and skills that can be clearly defined, measured, and taught for success in a job.

Topic 18: Some of the Important Soft Skills

1) Emotional Intelligence

Emotional intelligence is often referred to as the ability to recognize and manage your
emotions and the emotions of others. It's made up of five key elements:

i. Self-awareness

ii. Self-regulation

iii. Motivation

iv. Empathy

v. Social skill

In the context of the workplace, emotional intelligence boils to a few key abilities:

 Can you recognize and regulate your emotions and reactions in the workplace?

 Can you build rapport and positive relationships with other people?

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 Can you empathize with others?

 Can you give -- and receive -- effective, constructive feedback?

2) Team Player Attitude

The ability to play well with others is a soft skill you've been working on -- unknowingly
-- since your first day of pre-school or daycare. You might not have known it when you
were fighting over blocks or figuring out the rules of a made-up game, but you were
actually preparing for a lifetime of workplace collaboration.

Whether you're an individual contributor or a people manager, you have to work with
other people -- in meetings, in brainstorms, and on various cross-functional projects
within your company. A positive, can-do attitude when it comes to working with others
is essential to team harmony, which means you need to be able to run an effective and
inclusive meeting, be open to new ideas, and work respectfully with others.

3) Growth Mindset

In any job, no matter what the role, you'll encounter roadblocks, disappointments, and
other situations that might frustrate you. A soft skill that's critical to your ability to
persevere is having a growth mindset -- a term psychologist Carol Dweck coined to refer
to a frame of thinking that reflects viewing your abilities, talents, and intelligence as
skills you can grow and improve upon.

Someone with a growth mindset might look at a failure to meet a quarterly goal as an
opportunity to identify their strengths and weaknesses to tackle the next quarter's goal.
A person with a fixed mindset, however, might say to themselves, "I'm not good at
blogging," and let that negative outlook -- without any belief in the capability of
improvement -- impact their next quarter's success, too.

4) Openness to Feedback

This is part of emotional intelligence, but especially when it comes to the workplace,
being open and able to receive development feedback is critical to success at a job --
especially a new job.

Think about it: Constructive feedback helps you do the best job you can, and if you take
it personally or react defensively, you aren't able to hear the feedback and adapt it to
your current strategy.

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The key to giving and receiving feedback is to come into the conversation from a place of
kindness: You aren't receiving constructive feedback because that person hates you
personally, it's because they want you to be the best you can be. You should be chomping
at the bit to receive feedback that can help you more effectively hit your goals.

If you don't feel comfortable with feedback yet, try immersion therapy -- make feedback
a part of your daily to-do list. Ask for feedback from more people you work with to get
immediate help honing your skill set -- and to help make it easier to take.

5) Adaptability

No matter what your role, and no matter what your industry, the ability to adapt to
change -- and a positive attitude about change -- go a long way toward growing a
successful career.

Whether it's a seat shuffle or a huge company pivot, nobody likes a complainer. It's
important not only to accept change as a fact of life in the constantly-evolving business
world, but as an opportunity to try out new strategies for thriving in environments of
change (remember the growth mindset?).

If you don't feel comfortable with frequent changes, either on your team or at your
company, write down your feelings and reactions, instead of immediately voicing them.
By laying out how you feel and why you feel a certain way, you'll be able to distinguish
legitimate concerns from complaints that might not need to be discussed with your
team.

6) Active Listening

You probably can tell the difference between when someone is hearing words you're
saying and when they're actively listening to what you're saying. If someone is typing
while you're presenting at a meeting, or they're giving you that slack-jawed look, they
probably aren't really hearing what you're saying.

Active listeners, meanwhile, pay close attention to meeting presenters, offer up

clarifying questions or responses, and refer back to notes in future discussions. They
don't need things repeated to them because they heard them the first time -- making
active listeners not only respectful colleagues, but more effective workers, too.

If you think you could stand to improve your active listening skills, challenge yourself
not to look at your various devices during meetings -- instead to focus completely on
speakers, and take notes by hand if needed.

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7) Work Ethic

You can't succeed in a role without being willing to put in the time, effort, and elbow
grease to hit your goals, and company leaders and hiring managers are looking for
people who will put in the extra legwork to succeed without being asked.

If you want to get a new job or get promoted, it's essential that you hone your work ethic
-- so quit bellyaching and put in the extra time you need to succeed. Or, if excelling
means learning new skills or tools, dedicate time to learning those outside of work hours
so you can make your time in the office as effectively as possible.

What weaves all of these soft skills together is a positive attitude. It might sound cheesy,
but believing that there's a positive outcome in any and all challenging situations will
help you navigate the day-to-day of your job while making other people really want to
work with you. These soft skills are harder to teach, but the payoff might be even bigger,
so make sure you're investing time and effort into auditing and improving your soft skill
set.

Topic 19: Ethics

Ethics is defined as a moral philosophy or code of morals practiced by a person or group
of people. The purpose of ethics is to define acceptable human behavior through
knowing the types of actions, its consequences, and the limits of both humans and
actions, as well as their acceptability.
Business Ethics:
Business Ethics (also known as corporate ethics) is a form of applied ethics or
professional ethics, that examines ethical principles and moral or ethical problems that
can arise in a business environment. These norms, values, ethical, and unethical
practices are the principles that guide a business.
These ethics originate from individuals, organizational statements or from the legal
system. These norms, values, ethical, and unethical practices are the principles that
guide a business. They help those businesses maintain a better connection with their
stakeholders.
Business ethics refers to contemporary organizational standards, principles, sets of
values and norms that govern the actions and behavior of an individual in the business
organization. Business ethics have two dimensions, normative business ethics or
descriptive business ethics. As a corporate practice and a career specialization, the field
is primarily normative. Academics attempting to understand business behavior employ
descriptive methods. The range and quantity of business ethical issues reflects the
interaction of profit-maximizing behavior with non-economic concerns.
Some unethical issues are:

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1. Lack of Fairness: The three aspects that motivate people to be fair is; equality,
optimization, and reciprocity. Fairness is the quality of being just, equitable, and
impartial.
2. Misuse of company's times & Resources: This particular topic may not seems to
be a very common one, but it is very important, as it costs a company billions of dollars
on a yearly basis. This misuse is from late arrivals, leaving early, long lunch breaks,
inappropriate sick days etc. This has been observed as a major form of misconduct in
businesses today. One of the greatest ways employees participate in the misuse of
company's time and resources is by using the company computer for personal use.
3. Consumer Fraud: There are many different types of fraud, namely; friendly fraud,
return fraud, wardrobing, price arbitrage, returning stolen goods. Fraud is a major
unethical practice within businesses which should be paid special attention. Consumer
fraud is when consumers attempt to deceive businesses for their very own benefit.
4. Abusive Behavior: A common ethical issue among employees. Abusive behavior
consists of inflicting intimidating acts on other employees. Such acts include harassing,
using profanity, threatening someone physically and insulting them, and being
annoying.

Topic 20: Managing Ethics in the Workplace

1. Recognising that managing ethics is a process
Ethics is a matter of values and associated behaviors. Values are discerned through the
process of ongoing reflection. Therefore, ethics programs may seem more process-
oriented than most management practices. Managers tend to be skeptical of process-
oriented activities, and instead prefer processes focused on deliverables with
measurements. However, experienced managers realize that the deliverables of
standard management practices (planning, organizing, motivating, controlling) are only
tangible representations of very process-oriented practices. For example, the process of
strategic planning is much more important than the plan produced by the process. The
same is true for ethics management. Ethics programs do produce deliverables, e.g.,
codes, policies and procedures, budget items, meeting minutes, authorization forms,
newsletters, etc. However, the most important aspect from an ethics management
program is the process of reflection and dialogue that produces these deliverables.

2. The bottom line of an ethics program is accomplishing

preferred behaviours in the work place.

As with any management practice, the most important outcome is behaviors preferred
by the organization. The best of ethical values and intentions are relatively meaningless
unless they generate fair and just behaviors in the workplace. That’s why practices that
generate lists of ethical values, or codes of ethics, must also generate policies,
procedures and training that translate those values to appropriate behaviors.

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3. The best way to handle ethical dilemmas is to avoid their occurrence in
the first place

That’s why practices such as developing codes of ethics and codes of conduct are so
important. Their development sensitizes employees to ethical considerations and
minimize the chances of unethical behavior occurring in the first place.

4. Make ethics decisions in groups, and make decisions public, as

appropriate.

This usually produces better quality decisions by including diverse interests and
perspectives, and increases the credibility of the decision process and outcome by
reducing suspicion of unfair bias.

5. Integrate ethics management with other management practices.

When developing the values statement during strategic planning, include ethical values
preferred in the workplace. When developing personnel policies, reflect on what ethical
values you’d like to be most prominent in the organization’s culture and then design
policies to produce these behaviors.

6. Use cross-functional teams when developing and implementing the

ethics management

It’s vital that the organization’s employees feel a sense of participation and ownership in
the program if they are to adhere to its ethical values. Therefore, include employees in
developing and operating the program.

7. Value Forgiveness

This may sound rather religious or preachy to some, but it’s probably the most
important component of any management practice. An ethics management program
may at first actually increase the number of ethical issues to be dealt with because
people are more sensitive to their occurrence. Consequently, there may be more
occasions to address people’s unethical behavior. The most important ingredient for
remaining ethical is trying to be ethical. Therefore, help people recognize and address
their mistakes and then support them to continue to try operate ethically.

8. Note that trying to operate ethically and making a few mistakes is better than not
trying at all.

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Some organizations have become widely known as operating in a highly ethical manner,
e.g., Ben and Jerrys, Johnson and Johnson, Aveda, Hewlett Packard, etc. Unfortunately,
it seems that when an organization achieves this strong public image, it’s placed on a
pedestal by some business ethics writers. All organizations are comprised of people and
people are not perfect. However, when a mistake is made by any of these organizations,
the organization has a long way to fall. In our increasingly critical society, these
organizations are accused of being hypocritical and they are soon pilloried by social
critics. Consequently, some leaders may fear sticking their necks out publicly to
announce an ethics management program. This is extremely unfortunate. It’s the trying
that counts and brings peace of mind — not achieving an heroic status in society.

Topic 21: Ethical Principles for Managers and Executives

Ethical values, translated into active language establishing standards or rules describing
the kind of behavior an ethical person should and should not engage in, are ethical
principles. The following list of principles incorporates the characteristics and values
that most people associate with ethical behavior.

1. Honesty: Ethical executives are honest and truthful in all their dealings and they do
not deliberately mislead or deceive others by misrepresentations, overstatements,
partial truths, selective omissions, or any other means.

2. Integrity: Ethical executives demonstrate personal integrity and the courage of

their convictions by doing what they think is right even when there is great pressure to
do otherwise; they are principled, honorable and upright; they will fight for their beliefs.
They will not sacrifice principle for expediency, be hypocritical, or unscrupulous.

3. Promise-Keeping & Trustworthiness. Ethical executives are worthy of trust.

They are candid and forthcoming in supplying relevant information and correcting
misapprehensions of fact, and they make every reasonable effort to fulfill the letter and
spirit of their promises and commitments. They do not interpret agreements in an
unreasonably technical or legalistic manner in order to rationalize non-compliance or
create justifications for escaping their commitments.

4. Loyalty: Ethical executives are worthy of trust, demonstrate fidelity and loyalty to
persons and institutions by friendship in adversity, support and devotion to duty; they
do not use or disclose information learned in confidence for personal advantage. They
safeguard the ability to make independent professional judgments by scrupulously
avoiding undue influences and conflicts of interest. They are loyal to their companies
and colleagues and if they decide to accept other employment, they provide reasonable

33
notice, respect the proprietary information of their former employer, and refuse to
engage in any activities that take undue advantage of their previous positions.

5. Fairness: Ethical executives and fair and just in all dealings; they do not exercise
power arbitrarily, and do not use overreaching nor indecent means to gain or maintain
any advantage nor take undue advantage of another’s mistakes or difficulties. Fair
persons manifest a commitment to justice, the equal treatment of individuals, tolerance
for and acceptance of diversity, the they are open-minded; they are willing to admit they
are wrong and, where appropriate, change their positions and beliefs.

6. Concern for Others: Ethical executives are caring, compassionate, benevolent and
kind; they like the Golden Rule help those in need, and seek to accomplish their
business objectives in a manner that causes the least harm and the greatest positive
good.

7. Respect for Others. Ethical executives demonstrate respect for the human dignity,
autonomy, privacy, rights, and interests of all those who have a stake in their decisions;
they are courteous and treat all people with equal respect and dignity regardless of sex,
race or national origin.

8. Law Abiding. Ethical executives abide by laws, rules and regulations relating to
their business activities.

9. Committment to Excellence: Ethical executives pursue excellence in performing

their duties, are well informed and prepared, and constantly endeavor to increase their
proficiency in all areas of responsibility.

10. Leadership: Ethical executives are conscious of the responsibilities and

opportunities of their position of leadership and seek to be positive ethical role models
by their own conduct and by helping to create an environment in which principled
reasoning and ethical decision making are highly prized.

11. Reputation and Morale. Ethical executives seek to protect and build the
company’s good reputation and the morale of its employees by engaging in no conduct
that might undermine respect and by taking whatever actions are necessary to correct or
prevent inappropriate conduct of others.

12. Accountability: . Ethical executives acknowledge and accept personal

accountability for the ethical quality of their decisions and omissions to themselves,
their colleagues, their companies, and their communities.

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Topic 22: Types of Business Ethics
1. Personal responsibility.z
2. Representative or official responsibility.
3. Personal loyalties.
4. Corporate responsibilities.
5. Organizational loyalties.
6. Economic responsibilities.
7. Technical morality.
8. Legal responsibility.

Topic 23: Key Roles and Responsibilities in Ethics Management

Depending on the size of the organization, certain roles may prove useful in managing
ethics in the workplace. These can be full-time roles or part-time functions assumed by
someone already in the organization. Small organizations certainly will not have the
resources to implement each the following roles using different people in the
organization. However, the following functions points out responsibilities that should be
included somewhere in the organization.

1. The organization's chief executive must fully support the program.

If the chief executive isn't fully behind the program, employees will certainly notice --
and this apparent hypocrisy may cause such cynicism that the organization may be
worse off than having no formal ethics program at all. Therefore, the chief executive
should announce the program, and champion its development and implementation.
Most important, the chief executive should consistently aspire to lead in an ethical
manner. If a mistake is made, admit it.
2. Consider establishing an ethics committee at the board level.
The committee would be charged to oversee development and operation of the ethics
management program.
3. Consider establishing an ethics management committee.
It would be charged with implementing and administrating an ethics management
program, including administrating and training about policies and procedures, and
resolving ethical dilemmas. The committee should be comprised of senior officers.
4. Consider assigning/developing an ethics officer.
This role is becoming more common, particularly in larger and more progressive
organizations. The ethics officer is usually trained about matters of ethics in the
workplace, particularly about resolving ethical dilemmas.
5. Consider establishing an ombudsperson.
The ombudsperson is responsible to help coordinate development of the policies and
procedures to institutionalize moral values in the workplace. This position usually is

35
directly responsible for resolving ethical dilemmas by interpreting policies and
procedures.
6. One person must ultimately be responsible for managing the ethics
management program.

Topic 24: Corporate Governance

Corporate governance is the system of rules, practices, and processes by which a firm is
directed and controlled. Corporate governance essentially involves balancing the
interests of a company's many stakeholders, such as shareholders, senior management
executives, customers, suppliers, financiers, the government, and the community. Since
corporate governance also provides the framework for attaining a company's objectives,
it encompasses practically every sphere of management, from action plans and internal
controls to performance measurement and corporate disclosure. The three pillars of
corporate governance are: transparency, accountability, and security. All three are
critical in successfully running a company and forming solid professional relationships
among its stakeholders which include board directors, managers, employees, and most
importantly, shareholders.

Topic 25: Purpose and Objective of Corporate Governance:

The purpose of corporate governance is to facilitate effective, entrepreneurial and

prudent management that can deliver the long-term success of the company. Corporate
governance is the system by which companies are directed and controlled. Boards of
directors are responsible for the governance of their companies. Good corporate
governance incorporates a set of rules that define the relationship between stakeholders,
management and the board of directors of a company and influence how the company is
operating. The fundamental objective of corporate governance is to enhance
shareholders' value and protect the interests of other stakeholders by improving the
corporate performance and accountability.

Topic 26: Main Principles of Corporate Governance:

i. Right and Equitable treatment of Shareholders

ii. Consistency
iii. Responsibility
iv. Accountability
v. Disclosure
vi. Fairness
vii. Transparency

36
viii. Roles and Responsibilities of Board
ix. Interest of Stakeholders Integrity
x. Ethical Behaviour Mechanisms and Control.

Topic 27: Eight Elements of Good Governance

Good governance means that processes and institutions produce results that meet the
needs of society while making the best use of resources at their disposal.

Good governance has 8 major characteristics. It is participatory, consensus oriented,

accountable, transparent, responsive, effective and efficient, equitable and inclusive,
and follows the rule of law. Good governance is responsive to the present and future
needs of the organization, exercises prudence in policy-setting and decision-making,
and that the best interests of all stakeholders are taken into account.

1. Rule of Law
Good governance requires fair legal frameworks that are enforced by an impartial
regulatory body, for the full protection of stakeholders.

2. Transparency
Transparency means that information should be provided in easily understandable
forms and media; that it should be freely available and directly accessible to those who
will be affected by governance policies and practices, as well as the outcomes resulting
therefrom; and that any decisions taken and their enforcement are in compliance with
established rules and regulations.

3. Responsiveness
Good governance requires that organizations and their processes are designed to serve
the best interests of stakeholders within a reasonable timeframe.

4. Consensus Oriented
Good governance requires consultation to understand the different interests of
stakeholders in order to reach a broad consensus of what is in the best interest of the
entire stakeholder group and how this can be achieved in a sustainable and prudent
manner.

5. Equity and Inclusiveness

The organization that provides the opportunity for its stakeholders to maintain,
enhance, or generally improve their well-being provides the most compelling message
regarding its reason for existence and value to society.

37
6. Effectiveness and Efficiency
Good governance means that the processes implemented by the organization to produce
favorable results meet the needs of its stakeholders, while making the best use of
resources – human, technological, financial, natural and environmental – at its
disposal.

7. Accountability
Accountability is a key tenet of good governance. Who is accountable for what should be
documented in policy statements. In general, an organization is accountable to those
who will be affected by its decisions or actions as well as the applicable rules of law.

8. Participation
Participation by both men and women, either directly or through legitimate
representatives, is a key cornerstone of good governance. Participation needs to be
informed and organized, including freedom of expression and assiduous concern for the
best interests of the organization and society in general.

Topic 28: Key Roles and Responsibilities in Ethics Management

Depending on the size of the organization, certain roles may prove useful in managing
ethics in the workplace. These can be full-time roles or part-time functions assumed by
someone already in the organization. Small organizations certainly will not have the
resources to implement each the following roles using different people in the
organization. However, the following functions points out responsibilities that should be
included somewhere in the organization.

1. The organization's chief executive must fully support the program.

If the chief executive isn't fully behind the program, employees will certainly notice --
and this apparent hypocrisy may cause such cynicism that the organization may be
worse off than having no formal ethics program at all. Therefore, the chief executive
should announce the program, and champion its development and implementation.
Most important, the chief executive should consistently aspire to lead in an ethical
manner. If a mistake is made, admit it.
2. Consider establishing an ethics committee at the board level.
The committee would be charged to oversee development and operation of the ethics
management program.
3. Consider establishing an ethics management committee.
It would be charged with implementing and administrating an ethics management
program, including administrating and training about policies and procedures, and
resolving ethical dilemmas. The committee should be comprised of senior officers.
4. Consider assigning/developing an ethics officer.

38
This role is becoming more common, particularly in larger and more progressive
organizations. The ethics officer is usually trained about matters of ethics in the
workplace, particularly about resolving ethical dilemmas.
5. Consider establishing an ombudsperson.
The ombudsperson is responsible to help coordinate development of the policies and
procedures to institutionalize moral values in the workplace. This position usually is
directly responsible for resolving ethical dilemmas by interpreting policies and
procedures.
6. One person must ultimately be responsible for managing the ethics
management program.

Topic 29: Concept of Planning

 Planning is the process of thinking about the activities required to achieve a

desired goal. It is the first and foremost activity to achieve desired results.

 Planning is also a management process, concerned with defining goals for a

company's future direction and determining the missions and resources to
achieve those targets.

 It is the process of charting out the path for attaining the ultimate purpose of
business operations by outlining the sequence of events forecast with reasonable
degree of certainty.

 Planning decides in advance as to what is to be done and how it is to be done.

 When it is to be done and who is to do? Planning decides as to where to start and
where to reach? Planning is an intellectual process. It includes thinking before
acting.

 According to Theo Haimann, “Planning is deciding in advance what is to be done.

When a manager plans, he projects a course of action for the future, attempting
to achieve a consistent, co-ordinated structure of operations aimed at the desired
results.”

 According to George R. Terry, “It is the selecting and relating of facts and the
making and using of assumption regarding the future, in the visualisation and
formulation of proposed activities believed necessary to achieve desired results.”

 According to Alford and Beatty, “Planning is the thinking process, the organised
foresight, the vision based on fact and experience that is required for intelligent
action.”

39
 Purpose of Planning: Its purpose is to ensure optimum utilisation of human and
economic resources in the business processes. It precedes all other activities of the
business undertaking.

Alternative to Planning:

Opportunism is the practice of taking advantage of circumstances – with little regard

for principles or with what the consequences are for others. Opportunist actions are
expedient actions guided primarily by self-interested motives.

Two important Components of Planning:

1. Creation of a plan

2. Maintenance of a plan

Topic 30: Process of Planning:

3 Steps in planning

Step 1: Choosing a destination

Step 2: Evaluating alternative routes

Step 3: Deciding the specific course of the plan

4 Steps in planning

Step 1: The determination of objectives of the enterprise.

Step 2: The undertaking of research to understand the problems likely to be

encountered in achieving these objectives.

Step 3: The discovery of alternative solutions to such problems.

Step 4: Choosing between different alternatives—making policy.

Topic 31: 4 Questions to consider for Planning:

1. Where are we today in terms of our business or strategy planning?

2. Where are we going?

3. Where do we want to go?

4. How are we going to get there?

40
Topic 32: Major Types of Planning:

1. Strategic

2. Tactical

3. Operational

4. Contingency

Topic 33: Questions raised during Planning:

 What is to be done?

 Why is action necessary?

 Where shall it be done?

 How shall it be done?

 Who will do it?

 What physical resources will be required?

Topic 34: Advantages of Planning:

i. Attention on Objectives

ii. Minimizing Uncertainties

iii. Better Utilization of Resources

iv. Economy in Operations

v. Better Co-ordination

vi. Encourages Innovations and Creativity

vii. Management by Exception Possible

viii. Facilitates Control

ix. Facilitates Delegation

Topic 35: Limitations of Planning:

i. Planning Creates Rigidity.(Internal

ii. Planning Does Not Work in a Dynamic Environment.

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 iii. Planning Reduces Creativity

iv. Planning Involves Huge Costs

v. Planning is a Time-consuming Process

vi. Planning Does Not Guarantee Success

vii. Lack of Reliable Data

viii. Time Consuming Process
ix. Expensive

Topic 36: Planning Fallacy

 The Planning Fallacy, first proposed by Daniel Kahneman and Amos Tversky in
1979, is a phenomenon in which predictions about how much time will be needed
to complete a future task display an optimism bias and underestimate the time
needed.

 This phenomenon sometimes occurs regardless of the individual's knowledge

that past tasks of a similar nature have taken longer to complete than generally
planned.

Topic 37: Concept of Organisation:

 An organization or organisation is an entity comprising multiple people, such as

an institution or an association, that has a particular purpose.

 A social unit of people that is structured and managed to meet a need or to

pursue collective goals.

 It is a process of bringing and uniting people to achieve the objectives of the

organisation.

 It also implies the grouping of the staff achieve the common objectives.

 In a nutshell, an organisation can be defined as a process that defines the

resources as well as allocate them, coordinates human efforts and integrates both
in order to achieve the defined goals.

Topic 38: Steps in the Process of Organisation

1. Identification and Division of work

2. Departmentalisation

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3. Assignment of Duties

4. Establishing Reporting Relationships

Topic 39: Importance of Organisation

1. Benefits of Specialisation

2. Clarity in Working Relationships

3. Optimum Utilisation of Resources

4. Effective Administration

5. Development of Personnel

6. Growth and Expansion

Topic 40: Cultural Types

 Goffee and Jones have identified four distinct cultural types.

 They argue that these four culture types are based on two dimensions which they
call sociability and solidarity.

 Sociability refers to high concerns for people i.e. it is people oriented and focuses
on processes rather than on outcomes.

 The second dimension i.e. solidarity is however task oriented.

1. Networked Culture:

 Networked culture is high on sociability and low on solidarity. Which means that
the organisation treats, its members in a quite friendly manner and there is open
sharing of information. However, this culture type may lead to poor performance
as the focus is on the people rather than on tasks.

2. Mercenary Culture:

 It is low on sociability and high on solidarity. The organisations with mercenary

culture are task oriented and believe in competition. The people are highly
focussed and goal oriented but, this type of culture may at times lead to
frustration and stress among poor performers.

3. Fragmented Culture:
 Fragmented culture is low on both sociability and solidarity. There is little or
no identification with the organisation. It is the individual members’

43
 commitment, productivity and quality of work which is of utmost importance.
This type of culture however suffers from lack of collegiality.

4. Communal Culture:

 It is high on both sociability and solidarity. The organisations with communal

culture value both people and tasks. Work accomplishment is from committed
people, and there is a relationship of trust and respect.

Topic 41: Characteristics of Culture

1. Individual Autonomy:

The degree of responsibility, freedom and opportunities of exercising initiative that

individuals have in the organisation.

2. Structure:

The degree to which the organisation creates clear objectives and performance
expectations. It also includes the degree of direct supervision that is used to control
employee behaviour.

3. Management Support:

The degree to which, managers provide clear communication, assistance; warmth and
support to their subordinates.

4. Identity

The degree to which, members identify with the organisation as a whole rather than
with their particular work group or field of professional expertise.

5. Performance Reward System:

The degree to which reward system in the organisation like increase in salary,
promotions etc. is based on employee performance rather than on seniority, favouritism
and so on.

6. Conflict Tolerance:

The degree of conflict present in relationships between colleagues and work groups as
well as the degree to which employees are encouraged to air conflict and criticisms
openly.

7. Risk Tolerance:

44
The degree to which, employees are encouraged to be innovative, aggressive and risk
taking.

8. Communication Patterns

The degree to which, organisational communications are restricted to the formal

hierarchy of authority.

9. Outcome Orientation:

The degree to which, management focuses on results or outcomes rather than on the
techniques and processes used to achieve these outcomes.

10. People Orientation:

The degree to which, management decisions take into consideration the impact of
outcomes on people within the organisation.

Topic 42: Legal Types of Organisations

1. Corporations

2. Governments

3. Non-governmental organisations

4. Political Organisations

5. International Organisations

6. Armed Forces

7. Charities

8. Partnerships

9. Not-for-Profit Cooperatives

10. Educational Institutions

Topic 43: Four aspects that are Essential for an Organisation

1. A goal in mind

2. A leader or committee making the decision

3. Action involved

4. Communication and members.

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Topic 44: Organisational Structure

 An organizational structure is defined as “a system used to define a hierarchy

within an organization.

 It identifies each job, its function and where it reports to within the organization.

Two Basic Types of Organisational Structures

1. Formal

2. Informal

Topic 45: Six Basic Functions of Organizational Structure

1. Departmentalization
2. Chain of Command
3. Span of Control
4. Centralization or Decentralization
5. Work Specialization
6. Degree of Formalization.

Topic 46: Types of Organisational Structures

1. Line Organisational Structure

2. Staff or Functional Authority Organisational Structure
3. Line and Staff Organisational Structure
4. Committee Organisational Structure
5. Divisional Organisational Structure
6. Project Organisational Structure
7. Matrix Organisational Structure
8. Hybrid Organisational Structure
9. Flatarchy

Topic 47: Line Organisation Structure

1. A line organisation has only direct, vertical relationships between different levels
in the firm.
2. There are only line departments-departments directly involved in accomplishing
the primary goal of the organisation.
3. For example, in a typical firm, line departments include production and
marketing. In a line organisation authority follows the chain of command.

46
Topic 48: Staff or Functional Authority Organisational
Structure
 An organisation where staff departments have authority over line personnel in
narrow areas of specialization is known as functional authority organisation.
 The principle of unity of command is violated when functional authority exists
i.e., a worker or a group of workers may have to receive instructions or orders
from the line supervisor as well as the staff specialist which may result in
confusion and the conflicting orders from multiple sources may lead to increased
ineffectiveness.

Topic 49: Line and Staff Organisation

 Most large organisations belong to this type of organisational structure.

 These organisations have direct, vertical relationships between different levels
and also specialists responsible for advising and assisting line managers.
 Such organisations have both line and staff departments.
 Staff departments provide line people with advice and assistance in specialized
areas (for example, quality control advising production department).

Topic 50: Committee Organizational Structure

 A Committee Organization is an association of people set up to arrive at solutions
to common problems. The line people are given opportunities to discuss their
problems in the committee.
 The Committee Organizational Structure is not like line or functional
organization. but is similar to staff organization.
 It is a formal part of the organizational structure, wherein the members are
specifically mentioned. For example, the Finance Committee will include all the
functional managers, viz. Marketing Manager, Production Manager, Personnel
Managers, etc. as members, and the Managing Director as the Chairman.
 It will decide the financial requirements of each and every department. The
decisions taken by the committee are followed by the line people, as the
committees are representatives of various functional departments.

Topic 51: Advantages of Committee Organisational Structure

1. Committee Organizational Structure provides integrated ideas of various related
people of the company. Participative management in true form is visible under
committee organization.
2. It is an incentive to volunteer to from integrated ideas and to willingly follow
them. New ideas and solutions of various problems are feasible with the
committee organization.

47
 3. It is a very good example of democratic management wherein every member has
an equal opportunity to raise his voice and come to a common solution.
4. Flexibility and technical excellence are possible under this organization.
5. The top management is relieved from certain problems. The company can
encounter the changing and uncertain environment in a better way.
6. It facilitates high quality and innovative solutions to technical problems.
7. Coordination and control become easy because open discussion is invited in the
committee.
8. Ideas and specialized functions are feasible under committee organization

Topic 52 : Disdadvantages of Committee Organisational Structure

 However, committee organizational structure may prove ineffective in some cases
because of time consuming and inefficient devices, aggressive attitudes of some
persons and inactive role of a particular group.
 The committee organization should not be used to supplement or support
inefficient managers.
 An able and competent top manager with the capacity to handle the proceedings
of the committee and manage disgruntled employees during meetings can get the
maximum benefits out of committee organization.
 On the contrary, a weak and submissive manager or chairman may cause a
number of problems in committee organization.

Topic 53: Divisional Organisation Structure

 Larger companies that operate across several horizontal objectives sometimes use
a divisional organizational structure.
 This structure allows for much more autonomy among groups within the
organization. One example of this is a company like General Electric. GE has
many different divisions including aviation, transportation, currents, digital and
renewable energy, among others.
 Under this structure, each division essentially operates as its own company,
controlling its own resources and how much money it spends on certain projects
or aspects of the division.

Topic 54: Advantages of Divisional Organisational Structure

 This type of structure offers greater flexibility to a large company with many
divisions, allowing each one to operate as its own company with one or two
people reporting to the parent company’s chief executive officer or upper
management staff.
 Instead of having all programs approved at the very top levels, those questions
can be answered at the divisional level.

48
Topic 55: Disadvantages of Divisional Organisational Structure
 A downside to this type of organizational structure is that by focusing on
divisions, employees working in the same function in different divisions may be
unable to communicate well between divisions.
 This structure also raises issues with accounting practices and may have tax
implications.

Topic 56: Matrix/Hybrid hybrid organizational structure

 A hybrid organizational structure, the matrix structure is a blend of the

functional organizational structure and the projectised organizational structure.

Topic 57: Advantages of Matrix/Hybrid hybrid organizational Structure

 Advantages of this structure is that employees can share their knowledge across
the different functional divisions, allowing for better communication and
understanding of each function’s role.
 And by working across functions, employees can broaden their skills and
knowledge, leading to professional growth within the company.

Topic 58: Disadvantages of Matrix/Hybrid hybrid organizational Structure

 On the other hand, reporting to multiple managers may add confusion and
conflict between managers over what should be reported. And if priorities are not
clearly defined, employees, too, may get confused about their roles.
 The matrix structure is challenging because it can be tough reporting to multiple
bosses and knowing what to communicate to them.

Topic 59: Flatarchy Organizational Structure

 Blending a functional structure and a flat structure results in a flatarchy

organizational structure, which allows for more decision making among the levels
of an organization and, overall, flattens out the vertical appearance of a
hierarchy.
 The best example of this structure within a company is if the organization has an
internal incubator or innovation program.
 Within this system, the company can operate in an existing structure, but
employees at any level are encouraged to suggest ideas and run with them,
potentially creating new flat teams.

49
  Google, Adobe, LinkedIn and many other companies have internal incubators
where employees are encouraged to be creative and innovative in order to
promote the company’s overall growth.

Topic 60: Advantages and Disdavatages of Flatarchy Organizational

Structure
Advantages
 A benefit of this system is it allows for more innovation company-wide, as well as
eliminating red tape that could stall innovation in a functional structure.
Disadvantages
 As for the negatives, the structure could be confusing and inconvenient if
everyone involved doesn’t agree on how the structure should be organized.

Topic 61: Project Organisation

 A project organization is a structure that facilitates the coordination and
implementation of project activities.
 Its main reason is to create an environment that fosters interactions among the
team members with a minimum amount of disruptions, overlaps and conflict.
 Project organization structure is found in industries with highly complex product
systems, such as the aerospace or weapon industry.
 In this structure, project members are chosen for their special capabilities in the
light of the goals to be accomplished from different functional departments, viz.,
production, engineering, quality control, marketing research, and marketing.
 When the project has been completed, this task force is dissolved and personnel
are returned to their regular organization units.

Topic 62: Advantages of Project organization

1. It is an effective way of producing highly complex product systems.
2. Project organization, based on team concept, is the best means of getting the right
things done right.
3. In a turbulent environment, such organization is preferable for planning,
implementing and control of costs projects.
4. Diverse interests are consolidated to the above problems.
5. Creativity is developed through interaction with various specialists.
6. It leads to the development of strong team-work and teams with identity fully with
project goals.

Topic 63: Disadvantages of Project organization

1. A deliberate conflict is established between the project officer and the existing
department heads because of the overlapping of authority delegation.

50
 2. At the close of the project, there is every likelihood of insecurity of employment.
3. There always lurks and danger of over-specialization in the course of project
involvement.
4. Rotation from project to project reduces employees’ loyalty to the parent functional
department.

Topic 64: Deciding the Right Organisational Structure

Step 1: Review the company strategy. Structure must always follow from a company's
strategy.
Step 2: Consider how dynamic, flexible and agile the company needs to be to compete.
Next, determine the stability of the market and industry.
Step 3: Consider the organization’s size and age. Small, young organizations require less
of a management hierarchy than do larger, older organizations.
Step 4: Consider different organizational structures.
Step 5: Review your analysis from the previous steps to determine whether the company
is better served with a mechanistic or organic approach to structure, or something in
between.
Step 6: Create an organizational chart of the structure or structures the company is
considering. Graphically representing the company this way will clarify issues such as
who reports to whom, where responsibility will fall, the need to add or cut employees or
management levels, and changes that might have to be made in procedures.

Topic 65: Authority, Responsibility and Accountability

Authority is the power to give orders and get it obeyed or in other words it is the power
to take decisions.
Responsibility means state of being accountable or answerable for any obligation, trust,
debt or something or in other words it means obligation to complete a job assigned on
time and in best way.
Authority is the right of a superior to give orders and instructions to his subordinates to
get things done. Responsibility means the duties assigned to a person at the time of
delegation of authority. Accountability means responsibility to answer for the work.

Three types of authority

 The first type discussed by Weber is legal-rational authority. ...

 The second type of authority, traditional authority, derives from long-established
customs, habits and social structures. ...
 The third form of authority is charismatic authority.

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 Topic 66: Span of Control

Span of Control refers to the number of subordinates under the manager's direct
control. For example, a manager with ten direct reports has a span of control of ten.

Topic 67: Centralisation and Decentralization

S.No. Basis of Centralised Decentralised

Comparison
1. Communication Vertical Open Tree
2. Decision Making Slow Comparatively Faster
3. Advantage Proper coordination and leadership Sharing of burden and
responsibility
4. Reasons Inadequate control over the Reasonable control over the
organization organisation
5. Best suited for Small sized organization Large Decentralisation
6. Reaction to change Resistant to change Potentially responsive to
change
7. Decision making Decision making is often efficient Decision making is time
consuming
8. Style of operating Tends to become bureaucratic Tends to remain flexible
9. Burden on Top More burdens Fewer burdens
Management

Topic 68: Line and Staff Organisations

While line authority relies on command, line and staff authority is based on command
and advise. On the other hand, in line and staff organization, the staff executives are
specialist who supports and advice the line managers in the accomplishment of
organization's objectives. Staff and line are names given to different types of functions in
organizations. A "line function" is one that directly advances an organization in its core
work. This always includes production and sales, and sometimes also marketing. A "staff
function" supports the organization with specialized advisory and support functions. For
example, human resources, accounting, public relations and the legal department are
generally considered to be staff functions. It is very common for line and staff workers to
come into conflict. Staff specialists say line workers avoid and ignore them, and line
workers say staff workers lack expertise in the organization's core work, distract them,
and get in their way.

Management has several ways to resolve the conflict between line and staff employees.
One way is to define the responsibilities and authority levels of each line and staff

52
position so that each person understands their role in the business. This makes it
possible to hold all employees accountable for the consequences of their activities.
Another way is to combine line and staff workers into a team that is responsible for
achieving specific goals of the organization. This method forces the group to work
together in their efforts to improve performance and meet objectives.

Topic 69: Leadership

Leadership is the ability of an individual or a group of individuals to influence and guide

followers or other members of an organization. Leadership is the art of motivating a
group of people to act towards achieving a common goal. Leadership defines what the
future should look like, aligns people with that vision, and inspires them to make it
happen despite the obstacles. According to Kotter, management is focused on creating
order through processes, whereas leadership is focused on creating change through a
vision.

Topic 70: Leadership Styles

1. Democratic Leadership

Democratic leadership is exactly what it sounds like -- the leader makes decisions based
on the input of each team member. Although he or she makes the final call, each
employee has an equal say on a project's direction.

2. Autocratic Leadership

Autocratic leadership is the inverse of democratic leadership. In this leadership style,

the leader makes decisions without taking input from anyone who reports to them.
Employees are neither considered nor consulted prior to a direction, and are expected to
adhere to the decision at a time and pace stipulated by the leader.

3. Laissez-Faire Leadership

Leaders who embrace it afford nearly all authority to their employees.

In a young startup, for example, you might see a laissez-faire company founder who
makes no major office policies around work hours or deadlines. They might put full trust
into their employees while they focus on the overall workings of running the company.

Although laissez-faire leadership can empower employees by trusting them to work

however they'd like, it can limit their development and overlook critical company
growth opportunities. Therefore, it's important that this leadership style is kept in
check.

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4. Strategic Leadership

Strategic leaders sit at the intersection between a company's main operations and its
growth opportunities. He or she accepts the burden of executive interests while ensuring
that current working conditions remain stable for everyone else.

This is a desirable leadership style in many companies because strategic thinking

supports multiple types of employees at once.

5. Transformational Leadership

Transformational leadership is always "transforming" and improving upon the

company's conventions. Employees might have a basic set of tasks and goals that they
complete every week or month, but the leader is constantly pushing them outside of
their comfort zone.

This is a highly encouraged form of leadership among growth-minded companies

because it motivates employees to see what they're capable of.

6. Transactional Leadership

Transactional leaders are fairly common today. These managers reward their employees
for precisely the work they do. A marketing team that receives a scheduled bonus for
helping generate a certain number of leads by the end of the quarter is a common
example of transactional leadership..

Transactional leadership helps establish roles and responsibilities for each employee,
but it can also encourage bare-minimum work if employees know how much their effort
is worth all the time. This leadership style can use incentive programs to motivate
employees, but they should be consistent with the company's goals and used in addition
to unscheduled gestures of appreciation.

7. Coach-Style Leadership

Similarly to a sports team's coach, this leader focuses on identifying and nurturing the
individual strengths of each member on his or her team. They also focus on strategies
that will enable their team work better together. This style offers strong similarities to
strategic and democratic leadership, but puts more emphasis on the growth and success
of individual employees.

Rather than forcing all employees to focus on similar skills and goals, this leader might
build a team where each employee has an expertise or skillset in something different. In
the longrun, this leader focuses on creating strong teams that can communicate well and
embrace each other's unique skillsets in order to get work done.
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8. Bureaucratic Leadership

Bureaucratic leaders go by the books. This style of leadership might listen and consider
the input of employees -- unlike autocratic leadership -- but the leader tends to reject an
employee's input if it conflicts with company policy or past practices.

You may run into a bureaucratic leader at a larger, older, or traditional company. At
these companies, when a colleague or employee proposes a strong strategy that seems
new or non-traditional, bureaucratic leaders may reject it. Their resistance might be
because the company has already been successful with current processes and trying
something new could waste time or resources if it doesn't work.

Topic 71: Maslow’s Hierarchy

Maslow posited that human needs are arranged in a hierarchy:

Physiological needs - these are biological requirements for human survival, e.g. air,
food, drink, shelter, clothing, warmth, sex, sleep.

If these needs are not satisfied the human body cannot function optimally. Maslow
considered physiological needs the most important as all the other needs become
secondary until these needs are met.

2. Safety needs - protection from elements, security, order, law, stability, freedom
from fear.

3. Love and belongingness needs - after physiological and safety needs have been
fulfilled, the third level of human needs is social and involves feelings of belongingness.
The need for interpersonal relationships motivates behavior

Examples include friendship, intimacy, trust, and acceptance, receiving and giving
affection and love. Affiliating, being part of a group (family, friends, work).

4. Esteem needs - which Maslow classified into two categories: (i) esteem for oneself
(dignity, achievement, mastery, independence) and (ii) the desire for reputation or
respect from others (e.g., status, prestige).

Maslow indicated that the need for respect or reputation is most important for children
and adolescents and precedes real self-esteem or dignity.

5. Self-actualization needs - realizing personal potential, self-fulfillment, seeking

personal growth and peak experiences. A desire “to become everything one is capable of
becoming”(Maslow, 1987, p. 64).

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Topic 72: Personality Traits of Leaders

1. Integrity
2. Self-confidence
3. Inspire Others
4. Commitment and Passion
5. Effective Communicator
6. Decision making capability
7. Delegation and Empowerment
8. Creativity and Innovation
9. Empathy
10. Resilience

Topic 73: Team-building

The formal definition of team-building includes:

 aligning around goals

 building effective working relationships
 reducing team members' role ambiguity
 finding solutions to team problems

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Team building describe four approaches to team building:
Setting Goals [
This emphasizes the importance of clear objectives and individual and team goals. Team
members become involved in action planning to identify ways to define success and
failure and achieve goals. This is intended to strengthen motivation and foster a sense of
ownership. By identifying specific outcomes and tests of incremental success, teams can
measure their progress. Many organizations negotiate a team charter with the team and
(union leaders)
Role clarification
This emphasizes improving team members' understanding of their own and others'
respective roles and duties. This is intended to reduce ambiguity and foster
understanding of the importance of structure by activities aimed at defining and
adjusting roles. It emphasizes the members' interdependence and the value of having
each member focus on their own role in the team's success.
Problem solving
This emphasizes identifying major problems within the team and working together to
find solutions. This can have the added benefit of enhancing critical-thnking.
Interpersonal-relations
This emphasizes increasing teamwork skills such as giving and receiving support,
communication and sharing. Teams with fewer interpersonal conflicts generally
function more effectively than others. A facilitator guides the conversations to develop
mutual trust and open communication between team members.
Effectiveness

The effectiveness of team building differs substantially from one organization to

another. The most effective efforts occur when team members are interdependent,
knowledgeable and experienced and when organizational leadership actively establishes
and supports the team.
Effective team building incorporates an awareness of team objectives. Teams must work
to develop goals, roles and procedures. As a result, team building is usually associated
with increasing task accomplishment, goal meeting, and achievement of results within
teams.

Topic 74: Important Team Building Skills

i. Communication
ii. Problem Solving
iii. Leadership

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 iv. Teamwork
v. Motivation
vi. Delegation
vii. Positive Reinforcement
viii. Negative Reinforcement
ix. Human Resources
x. Customer Service
xi. Assessing Group Progress
xii. Coaching
xiii. Identifying the Strengths and Weaknesses of Team Members
xiv. Training
xv. Creativity
xvi. Creating Mission Statements
xvii. Creating Milestones
xviii. Coordinating
xix. Evaluating
xx. Goal Oriented
xxi. Resilience
xxii. Innovation
xxiii. Empathy
xxiv. Imagination
xxv. Passionate About Diversity
xxvi. Interviewing
xxvii. Integration
xxviii. Versatility
xxix. Concision
xxx. Confidence
xxxi. Process Management
xxxii. Ongoing Improvement
xxxiii. Presentation

Topic 75: Characteristics of Teams

i. They communicate well with each other. ...
ii. They focus on goals and results. ...
iii. Everyone contributes their fair share. ...
iv. They offer each other support. ...
v. Team members are diverse. ...
vi. Good leadership. ...
vii. They're organised. ...
viii. They have fun.

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Topic 76: Leader Development Grooming

i. Develop a buy-and-build strategy. Identify the needs you can address by buying
short-term talent and the areas you can improve by grooming long-term leaders.

ii. Train senior leaders to coach and mentor younger employees. Many senior
employees want to help create a succession plan but don't know how to go about
it.

iii. Encourage collaboration across generations through formal mentoring programs

and skill-based volunteer opportunities.

iv. Design well-thought-out mentoring programs. Curate focused discussions that

maximize the time experienced leaders spend with high-potential employees.

v. Make sure your leadership programs are multi-tiered so you engage everyone
from younger C-suite leaders to new hires.

vi. Identify the skills you need so you can most effectively develop leaders who
address those needs.

vii. Create a respectful succession plan so older leaders do not feel forced out.

viii. Find new motivating techniques for young employees who may expect different
benefits than their older predecessors.

ix. Offer tuition assistance or stand-alone courses for employees who want to learn
about managerial techniques in a more formal setting.

x. Remember to delegate and give your employees the opportunity to demonstrate

their skills.

Topic 77: Self Limiting and Social Loafing

Self Limiting
Self Limiting is the indifference demonstrated by an individual to a task while working
in a team because of the bullying nature of another team member.

Social Loafing
Social Loafing is intentionally putting reduced effort.

Topic 78: Succession Planning

Succession planning is a process for identifying and developing new leaders who can
replace old leaders when they leave, retire or die. Succession planning increases the

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availability of experienced and capable employees that are prepared to assume these
roles as they become available.
i. Get to know your company’s vision and growth plans
ii. Create an inventory of existing Skill Sets
iii. Ask people about where they would like to be
iv. Evaluate each person’s future potential
v. Inform employees of their succession potential
vi. Groom according to skill sets, desired trajectory and potential
vii. Offer retention programs that help ensure key staff will stay

Topic 79: Organization workshop (OW)

The Organization workshop (OW) is a CHAT-based learning event where participants
master new organizational as well as social knowledge and skills through a learning-by-
doing approach.
It is aimed at large groups of unemployed and underemployed, a large number of whom
sometimes may be persons with lower levels of education (LLEs). The OW addresses
locally identified problems which can only be solved by collaborating groups. During a
Workshop participants form a temporary enterprise which they themselves manage, an
enterprise which contracts to do work at market rates. Once the workshop temporary
enterprise is over, organizational, management and vocational skills gained can be used
to form new businesses or social enterprises.

Topic 80: People Management and Steps to Improve People Management

People Management, also known as human rsource management (HRM), encompasses
the tasks of recruitment, management, and providing ongoing support and direction for
the employees of an organization.
These tasks can include the following: compensation, hiring, performance management,
organization development, safety, wellness, benefits, employee motivation,
communication, administration, and training.

Steps to Improve People Management

Step 1: Outline Your Goals
Step 2: Determine Where You Can Improve
Step 3: Talk to Your Team
Step 4: Get Organized
Step 5: Take a Leadership Course
Step 6: Read Management Books
Step 7: Learn How to Listen

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Step 8: Practice Praising and Rewarding
Step 9: Find a Mentor or Coach
Step 10: Learn How to Effectively Communicate
Step 11: Be Transparent
Step 12: Create a Feedback System

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