Course Content
Definition and importance of management Functions of management Managerial roles Evolution of management thought Types of management environment
Meaning and importance of planning Principles of planning Purpose of planning Types of plans Planning tools Process of planning Planning challenges Making plans effective Management by objectives
Meaning and Importance of Organizing Structure and Designs of Organizations Principles of Organizing Process of Organizing Delegation Coordination Centralization and Decentralization Informal Organizations
Meaning and Importance of Staffing Human Resource Planning Recruitment and Selection Training and Development Performance Management Reward Management Separation
Meaning and Importance of Directing Leadership Motivation Communication Group Dynamics Conflict Management
Meaning and Importance of Controlling Elements of Control Characteristics of Effective Controls Control Process Role of Control in an Organization Tools of Controlling
Overview of Strategic Management SWOT Analysis Strategy Formulation Strategy Implementation Strategy Evaluation
Organization Culture Ethics and Social Responsibility Managing Innovation and Change Diversity and Inclusion Corporate Governance Globalization
Principles and Practices of Management
About Lesson

1. Highlight six benefits of the directing function to an organisation.

  1.  It guides and helps the subordinates to complete the given task properly and as per schedule.
  2. It provides the necessary motivation to subordinates to complete the work satisfactorily and strive to do the best. –
  3. It helps in maintaining discipline and rewarding those who do well.
  4. Directing involves supervision, which is essential to make sure that work is performed according to the orders and instructions.
  5. Different people perform different activities in the organisation.
  6. All the activities are interrelated. In order to ‘co-ordinate the activities carried out in different parts and to ensure that they are performed well, directing is important. It thus, helps to integrate the various activities and so also the individual goals with organisational goals.
  7. Directing involves leadership that essentially helps in creating appropriate work environment and build up team spirit.

2. Describe five principles of delegation.

  1. Principle of result excepted: This principle suggests that every manager before delegating the powers to the subordinate should be able to clearly define the goals as well as results expected from them. The goals and targets should be completely and clearly defined and the standards of performance should also be notified clearly.
  2. Principle of Parity of Authority and Responsibility: According to this principle, the manager should keep a balance between authority and responsibility. Both of them should go hand in hand. According to this principle, if a subordinate is given a responsibility to perform a task, then at the same time he should be given enough independence and power to carry out that task effectively. The authority should be given in such a way which matches the task given to him.
  3. Principle of Absolute Responsibility: This says that the authority can be delegated but responsibility cannot be delegated by managers to his subordinates which means responsibility is fixed. The manager at every level, no matter what is his authority, is always responsible to his superior for carrying out his task by delegating the powers. It does not means that he can escape from his responsibility. He will always remain responsible till the completion of task. Every superior is responsible for the acts of their subordinates and are accountable to their superior therefore the superiors cannot pass the blame to the subordinates even if he has delegated certain powers to subordinates example if the
    production manager has been given a work and the machine breaks down.
  4. Principle of Authority level: This principle suggests that a manager should exercise his authority within the jurisdiction /framework given. The manager should be forced to consult their superiors with those matters of which the authority is not given that means before a Manager takes any important decision, he should make sure that he has the authority to do that on the other hand, subordinate should also not frequently go with regards to their complaints as well as suggestions to their superior if they are not asked to do.

3. Factors that might hinder effective coordination by line managers in an organisation

  1. Differences in orientation towards particular goals: Members of different departments develop their own views about how best to advance the interests of the organization. Accounts may see cost control as most important to the organization’s success, sales people may see product features as more important than product quality etc. i.e. people are buried in departmental attachments.
  2. Differences in time orientation: Time periods mean different things for the various specialists e.g. research people may be preoccupied with problems that will take years to solve while production managers may be concerned with problems that must be solved immediately.
  3. Differences in interpersonal orientation: Members of different departments may have different approaches to interpersonal relationships and especially to communication. Some may adopt a relaxed attitude to communication while  others are abrupt and quick in decision-making_
  4. Differences in formality structure: Each type of unit in the organization may have different methods and standards of evaluating progress toward objectives and for rewarding employees.

4. Eight factors that might influence a manager’s style of leadership.

  1. Leader personality and past experiences: Managers’ value background and experiences will affect his or her choice of leadership styles. A manager who has had success in exercising little supervision or values the self fulfilment needs of subordinates may adopt an employee-oriented style of leadership. A manager who distrusts subordinates or who simply likes to manage all work activities may adopt a more authoritarian role.
  2. Expectation of superiors: A superior who favours task oriented leadership may cause a manager to adopt that style of leadership. A superior who favours an employee-oriented style on the other hand may encourage the manager to adopt the employee-oriented leadership.
  3. Subordinates characteristics and expectations: The response of subordinates to managers will be subordinates characteristics in terms of skills and training influence the mangers choice of style. Highly capable employee would normally require less directly approach. The expectation of subordinates is another factor in determining how appropriate a particular style will be. Subordinates who had employee centred managers in the past may expect a new manager to have similar style and may react negatively to authoritarian leadership.
  4. Tasks requirements: Jobs that precise instructions are to be followed demand more task oriented style than jobs whose operating procedures can be left largely to the individual employees e.g. University teaching.
  5. Organisational climate and policy: The “personality” or climate of an organisation influences the expectations and behaviours of organisation members. In organisations where climate and policies encourage strict accountability for expenses and results, managers usually supervise and control subordinates tightly.
  6. Peer expectation and behaviour: Ones fellow managers so as not to appear odd. Also conformance to their expectations is required.
  7. Forces in the leader: It include his value system, confidence in own leadership inclinations, feelings of insecurity and uncertainty, and confidence in his subordinates.
  8. Forces in subordinates: Each employee has different needs, wants, desires, experience, training abilities, skills etc. It is therefore beneficial for the manager to understand the forces at work within his employees. A manager could for instance allow participation in decision making if the employees. are Competent, well trained, ready to assume responsibility, have high needs for independence, understand and identify with the goals of the organization and necessary knowledge. If these are absent then the leader may be forced to lead autocratically.
  9. Forces in the situation: Include environmental pressures such as type of organization, effectiveness of work group, type of problem and urgency of the problem. For example production workers may work better under one style while professionals may work better under a different style

5. Problems associated with the existence of informal groups in an organisation.. .

  1. Negative attitude of informal leaders: The informal leader may turn out to be a trouble-shooter for the organization. In order to increase his influence, he may work against the policies of management and manipulate the behaviour of his followers. Thus, he can be a source of conflict between the management and the workers.
  2. Conformity: The informal group exerts strong pressure on its members for conformity. The members may become so loyal to their groups that following the group norms becomes a part of their life. This implies that members become subject to wilful control of the group leader who may lead the group towards selfish ends. This will lead to dilution of the effect of organizational policies and practices on the group members
  3. Resistance to change: Informal groups generally have a tendency to resist change. Change requires group members to make new adjustments and acquire new skills. But groups want to maintain status quo.
  4. Rumour: Informal communication may give rise to rumours. This is not desirable from organization’s point of view. Rumour originates for a number of reasons. One cause if plain maliciousness, but it is probably not the most important. A more frequent cause is employee’s anxiety and insecurity because of poor communication in the organization.
  5. Role conflict: Every member of the informal groups is also a member of the formal organization. Sometimes, there may be role conflict because what the informal group requires of members is just the opposite of what is expected of him by the formal organization. In such a situation, group members may conform to their social normal.

6. Reasons why managers might be reluctant to delegate.

  1. Negative personal attitudes—some managers may lack confidence and trust in their subordinates and therefore find it difficult to delegate to them.
  2. Unreceptiveness of other people’s views—some managers are unable to welcome other people’s views.
  3. Unwillingness to let go—delegation entails willingness to give others the right to use their discretion. Managers who are unwilling to part with some of their authority find it
    difficult to delegate.
  4. Unwillingness to let others make mistakes—mistakes are part of learning and subordinates must be allowed to make mistakes, but managers who fear to be let down by subordinates mistakes will not delegate easily.
  5. Perceived threat— superiors are usually afraid of being replaced or outshone by brighter and better educated subordinates, and hence may limit the authority they pass to them.
  6. A feeling of inadequacy—a manager who is not competent fears that they will expose their lack of skill through delegation.

7. Ten qualities of an effective manager.

  1. Communication: The success of every business depends on the teamwork of its employees. Effective communication is the key to make the goals or the targets of the organization, clear to each and every employee. It is also a key to harness energy, with a word of encouragement for the employees, at the individual and team level. On the other hand, he needs to be firm with a misbehaving staff member and communicate a warning using firm words.
  2. Knowledge: As a manager, you must put extra efforts to know all about the business you are involved in. You must have specific information about the business activities and practices of your organization. Your-knowledge is incomplete, if you do not know what your competitors are doing to promote their services and products. The perfectness of your business knowledge will enable you to arrive at a timely decision and act decisively. It will also help you in planning, organizing tasks and meeting targets.
  3. Handling of Staff: Knowing how to handle the staff is of at most importance to any manager. Each man is different from the other and needs different approach to cultivate, motivate and inspire. A good manager recognizes the need for self-fulfilment and recognition of each employee. A little tactful approach in this matter, works well for a manager.
  4. Reliability: The key is to promise within the reason and deliver more. Trust is the most fragile commodity. You have to gain the trust of your employees. It is also necessary to demonstrate to them that you are fair in dealing with all of them. Your willingness to listen patiently to their problems and complaints will be your goodwill. Reliability is one of the good attributes. Without this attribute, it is hard to see a person, succeed as a manager.
  5. Delegation: Even though, you are the decision maker, you cannot do all the work yourself. It is necessary to delegate some of your responsibility to your juniors. It is important to choose safe hands and a sound mind to take up a part of the workload off you. You should also make it quite clear that with authority goes responsibility.
  6. Introspection: A manager must know the importance of introspection. It helps him to understand how effective is the management style he is using to conduct his business. It also helps him understand which aspect of the business or his own personality is the driving factor. For him it is important to know, whether it is having a good or bad effect on his decision-making capability and so on.
  7. Trusting your employees: Micromanaging, unless specifically requested by your employee, is rarely a good thing. After you’ve clearly laid the tasks and expectations, trust them to do the best job they can. You are their leader and to acquire their trust, you must lead by example.
  8. Embracing technology: A good manager always keeps an eye out of technology that will promote the productivity of the team. Though some employees may be resistant to change, the bottom line is that technology may be able to take care of the more tedious aspects of their job responsibilities, which frees up time to be more strategic in their thinking.
  9. An expert in the field:  Being a leader means also means that you need to have answers to some, if not all, of the questions. A good manager is an authority in the industry and understands each role of the company. Consider some training sessions for your team that allow you to share some new strategies and refresh on methods to keep your team learning from you.
  10. Leading with transparency and honesty: Everyone hates being kept in the dark. Whenever possible, update your team on anything from small successes/concerns to large restructuring possibilities so that they are aware of what’s going on at all times. Even if the issue at hand does not pertain directly to them, it helps to assure that they are an integral part of the company and that their support and understanding is valued.

8. Advantages of centralization to the organization.
A centralized organizational structure is a setup in which most power and critical decision making responsibilities are concentrated with a few key leaders. A centralized organization often houses its primary decision makers or executives in a central headquarters with offices and meeting areas for leaders to discuss business.

  1. Facility for personnel leadership: There is absolutely no doubt that the centralized Office organization helps in establishing a personnel leadership which may even be able
    to convert a losing business house into a profitable one because of strong, efficient, purposeful and non¬controversial central leadership.
  2. Equitable distribution of work: In order to group together and economies the working as well as cost the grouping of two and more departments into one also placing the same under one control goes a long way in equitably distributing in workload not only between different departments but between individual worker as well. This brings economy and speed.
  3. Uniformity of activities: Obviously when centralized, the activities will be either in the hand of one individual or a few ones but under his (one) direct, control. This will result into uniformity of activities and thereby ensuring uniform decision and uniform process.
  4. Specialization: Specialization of work as well as process and handling of the work by the staff who has specialized in the work he is handling are a few of the meaningful advantages of specialization.
  5. Economy: The uniformity of activities and specialization of work lead to economic operation and best utilization of the staff services. This brings efficiency and smoothness as well. All these bring economy.
  6. No duplication of work: Centralized personal leadership, uniformity of activities and specialization leave no scope for duplication of work in the office. Thus extra labour and extra cost involved in duplication is avoided and economy is ensured.
  7. Quick decision: For taking advantage of rare opportunities coming in the way, it is necessary that decision should he quickly taken lest the opportunity so available may be
    slipped away. Centralized office organization helps in such a quick decision.
  8. Greater flexibility: In case of any emergency arising the uniformity of activities help in adjusting the. activities, procedure and decisions taken. This adjustment ensures flexibility the opportunity for which is available in centralized office organization in greater degree.
  9. Standardization and training facilities enhanced: Centralized office organization helps in standardizing the work and thereby helps in extending the training facilities to
    everyone and every work in the organization which needs specialization, standardization and attention The new staff member can easily pick up the work and can easily be
    accommodated and adjusted in such a set-up.
  10. Effective control: Uniformity in activities, specialization and standardization facilitates greater degree or supervision, effective co-ordination, self and departmental integration and thus ensure effective control.
  11. Fixing of responsibility is facilitated: It is possible in centralized system to locate the fault and detect the deviations and thus is able to pinpoint and take effective measures to improve by knowing and then fixing the responsibility and thereby improving the working and efficiency.

9. Differences between leadership and management Management

  1. The manager maintains; the leader develops.
  2. The manager focuses on systems and structure; the leader focuses on people.
  3. The manager relies on control; the leader inspires trust.
  4. The manager has a short-range view; the leader has a long-range perspective.
  5. The manager asks how and when; the leader asks what and why.
  6. The manager has his or her eye always on the bottom line; the leader’s eye is on the horizon.
  7. The manager imitates; the leader originates.
  8. The manager accepts the status quo; the leader challenges it.
  9. The manager is the classic good soldier; the leader is his or her own person.
  10. The manager does things right; the leader does the right thing

10.  Explain McGregor’s Theory X and Theory Y of human behaviour.

Theory X.
Theory X is based on traditional assumptions about people (employees). Here, the conventional approach of management is used as a base. It suggests the following features of an average human being/employee (assumptions about human nature):
Assumptions of Theory X.

  1. The average human being is inherently lazy by nature and desires to work as little as possible. He dislikes the work and will like to avoid it, if he can.
  2. He avoids accepting responsibility and prefers to be led or directed by some other.
  3. He is self-centered and indifferent to organizational needs.
  4. He has little ambition, dislikes responsibility, prefers to be led but wants security.
  5. He is not very intelligent and lacks creativity in solving organizational problems.
  6. He by nature resists change of any type.

In the case of such employees, self-motivation is just not possible. They will work only when ere is constant supervision on them. A manager has to persuade, punish or reward such workers in order to achieve organizational goals.
Theory Y
Theory Y is based on modern or progressive or professional approach. Here, the assumptions about people i.e. employee’s are-quite different.
Assumptions of Theory Y

  1. Work is as natural as play, provided the work environment is favorable. Work may act as a source of satisfaction or punishment. An average man is not really against doing work.
  2. People can be self-directed and creative at work if they are motivated properly.
  3. Self-control on the part of people is useful for achieving organizational goal. External control and threats of punishment alone do not bring out efforts towards organizational objectives.
  4. People have capacity to exercise imagination and creativity.
  5. People are not by nature passive or resistant to organizational needs. They have become so as a result of experience in organisations.
  6.  An average human being learns under proper conditions. He is also willing to accept responsibility.
  7. The intellectual capacity of an average human being is utilised partially under the conditions of modern industrial life.

11. Name and explain the various types of communication networks

  1. Circle Network: Type of communication network where members communicate if they share something in common, such as experiences, beliefs, areas of expertise, background or office location. For example, the people who you may informally socialize with in your office area may be a part of your circle network. Circle networks are not described as teamwork.
  2. Wheel Network: Communication network where, information flows from one central member of the group to the rest of the members. Other group members may not have to communicate with each other to perform well. An example would be a group of independent makeup consultants who report to one regional mentor. The independent makeup consultants do not need to interact with one another in order to perform. Wheel networks do not exist in teams, since teams signify intense interaction between all members of a group.
  3. All-Channel Network: An all-channel network is found in teams. Teamwork is characterized with high levels of intense communication. Each team member communicates with every other team member. Information flows in all directions. Computer programs are often utilized to maintain effective communication in teams due to their efficiency.
  4. The Y network: The Y network is similar to the chain except that two members fall outside the chain. In the Y network, for example, members A and B can send information to C, but they can receive information from no one. C and D can exchange information; E can receive information from D but cannot send any information. For example, two assistant principals, (A and B) report to the principal (C). The principal, in turn, reports to the assistant superintendent (D), who reports to the superintendent (E).

12. Advantages and disadvantages of the following styles of leadership
i. Autocratic leadership
Type of leadership style where all authority and decision making is centered in the leader. He makes all decisions, exercises total control by use of rewards and punishment.
– It allows faster decision making
– It can easily cause workers to experience dissatisfaction
– Dependence on the leader or passiveness towards organizational goals.
ii. Democratic leadership
This style of leadership seeks to obtain cooperation of workers in achieving organizational goals by allowing them to participate in decision-making.
– Participative decision-making can lead to improved manager-worker relations
– Higher morale and job satisfaction
– Decreased dependence on the leader and better acceptance of decisions
– Delayed decision-making
– ‘Group think’, time consuming
– Diluted decisions due to compromising.
(iii) Laissez fair leadership
This style does not depend on the leader to provide external motivation but, the workers motivate themselves based on their needs, wants and desires. They are given goals and left on their own to achieve them. The leader assumes the role of a group • member.
– This approach increases worker independence and expression and forces him to function as a member of a group.
– Without a strong leader the group could lack direction or control, which may result into frustration in the workers.
– For laissez faire to work the subordinates must be competent, reliable and well versed with the goals of the organization.

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