ST.

CECILIA’S COLLEGE-CEBU INC

College of Criminology
De La Salle Supervised School
Ward 2, Poblacion Minglanilla, Cebu

SUBJECT:
Character formation with Leadership, Decision making, Management and
Administration

COURSE CODE:
CFLM 2

PREPARED BY:
JHON APRIL F. DE PAZ, RCrim

MODULE 2 – Theories of Leadership and functions of Management

OBJECTIVES:
• Determine the role of effective manager within the organization with respect to the following:
1. Decisional
2. Interpersonal
3. Informational
• Describe the manner on how to use organizational resources for effective management
• Identify the characteristics and difference Problem-solving versus decision-making
• Discuss the different factors affecting decision-making
• Explain decision-making techniques as applied to individual or as a group
• Value the importance of decision-making for public managers
• Identify and consider the information data or research that may serve as the basis for decision
making
• Explain the nature, concept and the basis in the exercise of discretion
• Discuss and understand the Guides for Quick or Fast Decision Making
Role of Manager in an Organization
A manager’s job is very crucial in an organization. He is a planner, coordinator, producer
and a marketer. The success of an organization will depend upon the caliber of the manager in
utilizing the resources for achieving business goals. A manger is a pivotal figure in the task of
creating wealth. There are rapid changes in technology, methods of production, marketing
techniques, financial set up and the manager should be competent enough to cope with the
changes.
Meaning:
A manager is a person in the organization who directs the activities of others. The
managers perform their work at different levels and they are called by different names. The first
line managers are usually called supervisors or in a manufacturing they may be called foremen.
Middle level mangers include all levels of management between the supervisory level and the
top level of the organization.

These managers may be called functional managers, plant heads, and project
managers. Near the top of hierarchy, there may be top managers who are responsible for
making organizational decisions and setting policies and strategies that affect all the aspects of
the organization. These persons may be called vice-president, managing director, chief
executive officer or chairman of the board etc.

Managerial Functions:
A manager has to perform functions like planning, organizing, staffing, directing and
controlling. All these functions are essential for running an organization smoothly and achieving
enterprise objectives. Planning is required for setting goals and establishing strategies for
coordinating activities.
Organization helps in determining what tasks are to be done, how to do them, how to
group the tasks and where decisions are to be made. Staffing function is essential for employing
various types of persons and performing various activities like training, development, appraisal,
compensation, welfare etc.
The directing function requires giving instructions and motivating sub-ordinates to
accomplish their goals. A manager has to perform the controlling function for monitoring
activities to ensure that they are being accomplished as planned and correcting any significant
deviations.

Managerial Skills:
A manager has to perform a number of jobs. It necessitates that a manager should have
proper skills to perform different jobs.

Henry Fayol put the qualities required by managers into the following categories:
1. Physical – health, vigor, address.
2. Mental – ability to understand and learn; judgement, mental vigor and adaptability.
3. Moral – energy, firmness, willingness to accept responsibility, initiative, loyalty, tact,
dignity.
4. Educational – general acquaintance with matters not belonging exclusively to the
function performed.
5. Technical – peculiar to the function.
 6. Experience – arising from the work proper.

Robert L. Katz conducted research during early 1970’s and found that managers need three
essential skills or competencies; technical, human and conceptual. He also found that the
relative importance of these skills varied according to the manager’s level within the
organization.

Technical Skills:
A manager must have the necessary technical skills or the ability to work with the
resources, tools, techniques, procedures etc. First line managers as well as many middle
managers have involved in technical aspects of the organization’s operations. Technical skills
include knowledge of and proficiency in certain specialized such as engineering, computers,
finance or manufacturing. Even though the need for technical skills is less when a manager
moves higher in hierarchy but still technical proficiency helps in taking decisions.

Human Skills:
It is the ability to work well with other people both individually and in a group. Managers
with human skills can get best out of the people working with them. They know how to
communicate, motivate, lead and inspire enthusiasm and trust. These skills are needed by
managers at every level but top managers need them the most.

Conceptual Skills:
Conceptual skills are the ability to integrate and coordinate various activities. Managers
must have the ability to think and to conceptualize about abstract solutions. They must be able
to see the organization as a whole and the relationships among its various subunits and to
visualize how the organization fits into its broader environment. Conceptual skills are helpful in
decision-making. Since all managers have to take decisions so these skills are essential for all
managers but these become more important as they make up the organizational hierarchy.

These skills can be depicted in a diagram:

Qualities of a Manager:
A manager has to undertake a number of functions from planning to controlling. He has to take
decisions for every type of activity. The decisions of the manager influence the working of an
organization.

He should have the following qualities so for performing his work properly:
1. Education:
A manager must have proper educational background. These days managers are
supposed to have management education, besides other educational qualifications.
Education not only widens mental horizon but also helps in understanding the things and
interpreting them properly. The knowledge of business environment is also important for
dealing with various problems the organization may face.

2. Intelligence:
A manager has to perform more responsibilities than other persons in the organization.
He should have higher level of intelligence as compared to other persons. Intelligence will
help a manager in assessing the present and future possibilities for the business. He will be
able to foresee the things in advance and take necessary decisions at appropriate time.

3. Leadership:
A manager has to direct and motivate persons working in the organization. He will
provide leadership to subordinate. The energies of the subordinates will have to be
channelize of properly for achieving organizational goals. If a manager has the leadership
qualities then he can motivate subordinates in improving their performance and working to
their full capacity for the benefit of the organization.

4. Training:
A manager has to acquire managerial skills. These skills consist of technical skills,
human skills and conceptual skills. These skills have to be acquired through education,
guidance, experience etc. These skills are needed for all levels of managers.

5. Technical Knowledge:
A manager should have technical knowledge of production processes and other
activities undertaken in the enterprise. He will be in a better position to inspect and guide if
he himself has a knowledge of those activities.

6. Maturity:
A manager should have mental maturity for dealing with different situations. He should
be patient, good listener and quick to react to situations. He has to take many awkward
decisions which may adversely affect the working if not taken properly. He should keep calm
when dealing with subordinates. All these qualities will come with mental maturity.

7. Positive Attitude:
Positive attitude is an asset for a manager. A manager has to deal with many people
from inside as well as from outside the organization. He should be sympathetic and positive
to various suggestions and taken humane decisions. He should not pre-judge the things and
take sides. He should try to develop good relations with various persons dealing with him.
He should understand their problems and try to extend a helping hand.
 8. Self-confidence:
A manager should have self- confidence. He has to take many decisions daily, he may
analyze the things systematically before taking decisions. Once he takes decisions then he
should stick to them and try to implement them. A person who lacks self-confidence will
always be unsure of his decisions. This type of attitude will create more problems than
solving them.

9. Foresight:
A manager has to decide not only for present but for future also. There are rapid
changes in technology, marketing, consumer behavior, financial set up etc. The changes in
economic policies will have repercussions in the future. A manager should visualize what is
going to happen in future and prepare the organization for facing the situations. The quality
of foresight will help in taking right decisions and face the coming things in right perspective.
In case the things are not rightly assessed then the organization may face adverse
situations.

Role of the Manager:

A role is concerned with the behavior pattern of a manager within an organization. Henry
Mintzberg did a careful study of five chief executives at work in the late 1960’s. He discovered
that the role of a manager is quite different from the notions held at that time. For instance, the
prominent view at that time was that managers were reflective thinkers who carefully and
systematically processed information before taking decisions.

Mintzberg found that his managers were engaged in a large number of varied, un-
patterned, and short-duration activities. There was little time for reflective thinking because
managers encountered constant interruptions. Mintzberg provided a categorization scheme for
defining what managers do based on actual managers on the job. He concluded that managers
perform ten different but highly interrelated roles. The term management roles refer to specific
categories of managerial behavior. Table gives the ten different roles of the manager.

1. Interpersonal roles

A manager has to perform some duties as a figurehead. He may receive the guests from
outside or preside over a social function of employees. He may have to sign some legal
documents as head of the organization. These are the roles played as figurehead. He has
also to act as leader when he has to sort out the activities of subordinates. He has not only
to motivate the employees but is also involved in hiring, firing and discipline employees. The
third role in interpersonal roles is of liaisoning. He has to contract outside agencies for
collecting business related information. The outside information providers may be individuals
or groups.

2. Informational roles

All managers are required to perform informational roles. They have to collect
information from organizations and institutions outside their own. Managers also play the
role of disseminators when they supply information to subordinates in the organization. This
information is factual as well as with interpretations for the benefit of users. A manager acts
as a spokesperson when he represents the organization to outsiders.
3. Decisional roles

According to Mintzberg, a manager performs four decisional roles. He initiates and

oversees new projects for the improvement of organizational performance, this is the
entrepreneurial role played by him. As disturbance handler, manager takes corrective
actions in response to previously unforeseen problems. He also acts as resource allocation
when he assigns and monitors the allocation of human, physical, and monetary resources.
He acts as a negotiator when he discusses and bargains with other groups to gain
advantage for his own unit.
What Is a Resource?

In the context of business and economics, a resource is any factor that’s necessary to
accomplish a goal or carry out an activity. In short, they are the components that a business
needs in order to do business. Resources often include employees, working space, equipment,
or capital. Understanding precisely what your business uses is critical in order to ensure that
you are making the most of the resources available, and not missing any holes in your business
model.

Types of Resources

A business’s resources can be broken down into several different kinds. Some of the most
commonly used include:

• Labor: Almost every business requires human labor to get through a workday. Labor
includes all of the people who work for you, and the jobs that they do.
• Management: Without a guiding hand, many businesses would end up achieving very
little. This is why managerial skills and execution are an essential resource for many
companies.
• Expertise: In order to really help a business excel, labor and management need to be
executed with expertise. Knowledge of your domain and the practices that help you
succeed is crucial.
• Equipment: Most businesses require specialized tools to do their work, whether it’s
special hardware, a unique piece of software, or a machine designed to do a certain
task.
• Finances: A company’s finances enable it to use many of its other resources. This can
include: the payment of wages, the purchase of equipment, or the renting of a
workspace.
• Energy: In the 21st century, it’s difficult to run a business without tapping into energy,
whether it comes in the form of gasoline to power a fleet of trucks, or electricity to keep
an office full of computers up and running.
• Land: Land is exceptional as a resource insofar as it does not need to be produced.
Instead, it can be refined to suit a particular business’s needs.
• Time: Since no business can achieve its ends instantaneously, every business needs to
treat time as a resource. Since the cost of time is measured in terms of another
resource, time often needs to be considered alongside resources such as labor, energy,
and land.

These are just some of resources that many businesses use every day; this is not an exhaustive
list of resources, since every business has its own unique needs. When thinking about the
resources that your own business uses, try to consider the things that it needs to keep going,
both on a day-to-day scale and in the long term.
What Is Resource Management?

The resources that a business uses can be broken down into various types. Resource
management is the process of allocating resources in order for a company to complete its work
in the most efficient way possible. This process is often done by people with training in project
management who have the expertise and background to make these kinds of judgments calls
on behalf of a business.

As business manager or owner, it’s up to you to decide how to best utilize the resources you
have available, figure out what additional resources you might need, and determine where
resources are being wasted in your business model. Resource management is a necessity for
any business that wants to remain competitive with its rivals.

Resource Management Key Terms

Some key terms often used in discussions of resource management include:

• Cross-Functional Resource Allocation: The process of allocating resources across

different functional teams within an organization, where each team is focused on the
same ultimate goal.
• Functional Resource Allocation: The process of allocating resources within a single
functional team.
• Functional Team: A team that aims to satisfy a single project function. Some examples
of different functional teams within the same organization might include the writing team,
the editing team, and the publishing team.
• Organizational Management: The process of managing and allocating the resources
within organization.
• Resource Allocation: The process of assigning resources to tasks and projects with the
goal of distributing them efficiently.
• Resource Assignment Matrix: A term associated with the management of human
resources. People in a resource assignment matrix are determined to have a certain
relationship with a given task, whether it’s being responsible, being accountable, being
consulted, or being informed.
• Resource Plan: A comprehensive plan of all of the resources needed to complete a
certain task.
• Resource Breakdown Structure: Within a resource plan, the resource breakdown
structure determines the hierarchy among resources, especially human resources.
• Resource Dependency: The phenomenon wherein an organization relies too much on
a single resource, creating a bottleneck for all of its projects. For example, if you have
four software licenses, but eight departments that need their own license, you’ve got a
problem with resource dependency.
• Resource Histogram: A visual representation of all of the resources involved in a
project and their relationships with one another.
• Resource Over-allocation: A resource that is associated with too many tasks. For
example, an overworked employee.
• Strategic Planning: An organizational management activity involving the setting of
priority, allocation of resources, and establishment of common goals.
• Utilization Rate: The rate at which a resource is utilized. Often used in regard to an
employee’s time and how much of it they spend on a given task compared to the total
amount allocated.
Benefits of Resource Management

Good resource management can enable a business to excel in its domain. Some of the benefits
of managing resources efficiently include:

• Fewer workplace conflicts. When company resources are managed well, teams and
individuals can feel like they have what they need more often. When they have what
they need, there may be fewer conflicts in the workplace over limited resources. A solid
resource breakdown structure also creates the mechanism for conflict resolution within
the company, by identifying where resources and needs stand with regard to one
another throughout the organization.
• Lower overhead costs. Good resource management involves allocating resources
efficiently. When this is done right, there’s less need for project micromanagement. If
you allocate resources well within your business, you can save money on your
administrative costs in the long run.
• Greater productivity. Great efficiency in your resource management extends to all
areas of your business. If you’re more efficient in how you’re distributing your company’s
resources, your whole business will be able to operate more efficiently. That means
getting projects done quickly and with fewer resources overall.
• Better profits. When you can do your work with lower overhead costs and your teams
are more productive within a given timeframe, you will have the potential to improve your
company’s profits.
• Improve quality in projects and products. Remember that expertise is a resource as
well. By ensuring that your business has plenty of expertise, you can also ensure that
you are able to deliver the kinds of highquality products that catch the eyes of clients.
• Reduced burnout rates. Smart resource management can help you get plenty of high-
quality work from your employees without pushing them too far. When employees don’t
suffer burnout, it’s easier to keep them around, developing expertise through experience.

Ultimately, businesses that practice good resource management are able to produce higher
quality work more quickly and with less overhead. It’s clear that every business should take a
serious look at its own practices to find the most efficient systems of resource allocation.

Challenges of Resource Management

Resource management can be a boon for your business, but that doesn’t mean that it will come
easy. Effective resource management can be difficult for a few reasons:

• Surprises in the workflow. No two projects are the same, so no two projects can work
with exactly the same plan. Good resource management is sometimes made difficult by
unexpected developments in a project, which managers will have to adapt to in order to
ensure that functional teams continue to operate efficiently.
• Managing human resources. People make up a large number of a given company’s
resources, including labor, expertise, and management. However, people are
complicated and don’t all work the same way. In addition, people can suffer from burnout
if they become the victims of resource over-allocation. Good resource managers need to
understand the strengths and weaknesses of their employees in order to allocate them
efficiently, and without overworking them.
 • Not enough resources. At the end of the day, resources are finite. One of the greatest
challenges of resource management is finding out where to put limited resources when
you don’t have enough to do everything at once.

Good resource management can have a huge payoff for your company, but it can also be very
difficult to do reliably. People who are trained in performance improvement are better situated to
identify and address inefficiencies within a company’s resource management plan.

Resource Management Strategies and Techniques

Resource management comes with some challenges, but there are also techniques and
strategies that can help you overcome these difficulties and lead you towards efficient resource
allocation. For business owners and managers who feel uncertain about how to wield resource
management strategies, pursuing an MBA can help you learn how to effectively utilize these
strategies and know which technique is best-suited to your situation.

Resource Planning

Resource management, as a term, refers to the overall idea of making informed decisions about
where to place resources in order for your business model to run efficiently. Resource planning,
however, refers to a particular strategy that can make your resource management more
effective.

Resource planning involves identifying every resource that will need to be used in order to
complete a project. As a strategy, resource planning is often done best when you listen to the
input of employees. Speak to the people who are going to do the work on your project and find
out exactly what they need to succeed. By doing this before beginning on a project, you can
make sure that your teams have everything that they will need before work begins. This may cut
down on hiccups in project execution and help your teams become more efficient.

Problem solving vs decision making – what is the difference?

The key difference between problem solving and decision making is that solving
problems is a process, whereas making decisions is an action based on insights derived during
the problem-solving process. Many people use the terms problem solving and decision making
interchangeably, but they are not the same.
Problem solving vs decision making

Problem solving is an analytical process used to identify the possible solutions to the situation
at hand. Making decisions is a part of problem solving. Problem solving is a complex process,
and judgement calls – or decisions – will have to be made on the way.
Decision making is a choice made by using one’s judgement. The art of making sound
decisions is a particularly important skill for leaders and managers. You may need to make
numerous decisions as part of the problem-solving process. And, of course, leaders and
managers will need to use their decision-making skills to determine which solution to pursue.
They will also typically need to confirm and set into motion next steps to fix the problem.
Problem solving or decision making – which is most important?
Both problem solving and decision making go hand in hand, but success in one doesn’t
automatically lead to the other. Those in leadership and management roles need to understand
the difference between the two and aim to make lifelong improvements in both skillsets.

Decisions are made when multiple opportunities for action present themselves. You can make
decisions, yet never solve the problem.

You can be adept at problem solving, or finding the root of an issue, and still lack the decision-
making skills to choose and action viable next steps to bring about a successful outcome.

Quick decisions don’t always lead to best-case solutions. A purist approach to problem solving
doesn’t take into account that sometimes a business needs to make the best decision under the
existing circumstances (where budget, time and resource constraints might play a factor).
How does problem solving involve decision making?

Decision-making is part of the problem-solving process. A business may have multiple problems
that all demand time and resource. A key role in management and leadership positions is
deciding which problem to treat as a priority.

Decision making in 3 steps:

1. Use problem solving to identify potential solutions – this may involve decision making,
such as deciding to hold meetings with stakeholders or assigning team members to
tackle particular areas of the problem
2. Determine which solution is the best fit for the problem at hand
3. Make a decision on next steps to action the chosen solution
4.
The similarities between problem solving and decision making

Problem solving and decision making are not synonymous with each other, but they are both
important skills for leaders to have. People often use the terms problem solving and decision
making interchangeably specifically because they have elements in common.

Both problem solving and decision making involve critical thinking.

Critical thinking is a process by which you question your own assumptions – as well as those of
others - in order to decide on next steps to solve a problem. Critical thinking often results in
using a mix of research, analysis, questioning and exploration of new ideas in order to gain rich
insight into a situation, becoming informed in a way that isn’t restricted by the subjective
perspectives of peers or the status quo.

Factors affecting Decision-making

Whenever we are involved in making decisions a number of factors can affect the
process we follow and ultimately the decision we make.
We can organize the factors affecting decision making into three major groups:
• Perception Issues
• Organizational Issues
• Environmental Issues
Perception Issues:
Perception can be described as the way in which individuals interpret their
environment. An individual's perception can influence how they make decisions and
solve problems. For example, when information about a problem needs to be gathered
the individual's perception will impact on where the information is sought and the type of
information regarded as relevant.
Perception can be influenced by the following:
• The perceiver
• The object
• The situation
The Perceiver
The perceiver, the individual perceiving the object, will be heavily influenced by
their personal characteristics. The types of personal characteristics that can affect an
individual's perception include:
• Background and experience
• Personal values
• Personal expectations
• Personal interests
The Object
The object, which refers to any person, item or event can have an impact on the
way it is perceived. For example, when a manager receives a number of reports to read
he may be more inclined to read the one with the most colorful cover as this one stands
out.
The relation an object has to other objects can also affect the perception of the
perceiver. For example, an individual team member may be judged on the actions of the
whole team even when it is more appropriate for them to be judged on their own merits.
The Situation
Time, location and other situational factors can influence our perception of an
object. For example, a Team Leader may notice team members who work late on the
same evenings as the Team Leader. However, team members who work late on other
evenings may not be noticed by the Team Leader.

Issues within the Organization:

A number of organizational issues can impact on the decision-making process.
These issues include:
• Policies and procedures
• Organizational hierarchy
• Organizational politics
Policies and Procedures
Many organizations have formalized policies and procedures which have been
developed to resolve common problems and to guide managers when making
decisions. For example, many organizations have documented disciplinary procedures
which guide managers through a process of resolving issues with staff members.
Organizational Hierarchy
Organizational hierarchy refers to the management structure of the organization.
Most organizations have different levels of management which carry with them different
degrees of authority. The degree of authority directly impacts on the nature of the
decisions an individual can make. For example, a Customer Contact Centre Team
Leader cannot make decisions about the overall goals of the organization. However, the
Team Leader can make decisions about how their team contributes to the achievement
of the organization's goals.
Organizational Politics
Organizational politics refers to behavior displayed by individuals and groups
which is designed to influence others. Individuals and teams will often use politics to:
• Advance their careers
• Advance their interests and ideas
• Increase their rewards
Organizations are made up of individuals with different beliefs, values and interests.
These differences are often the driving forces behind organizational politics. For
example, two teams believe they require an extra team member. Unfortunately, the
organization can only afford one new employee. The two teams may well use politics in
an attempt to influence their manager to allocate the new employee to their team.

Issues within the Environment:

Environmental issues are the external factors that affect the organization. The types
of external factors that can have an effect on decision making include:
• The market in which the organization operates
• The economy
• Government legislation
• Customers' reaction to the organization's products and services
For example, B&B online decided to create a new team, B&B for Busy Bodies
because they believed that a corporate market existed for the bed and breakfast
industry.

Common Decision-Making Mistakes:

Many of the factors which affect the decision-making process can lead to
mistakes being made. By being aware of the types of mistakes that can be made and by
understanding the reasons for the mistakes a Team Leader is in a better position to
avoid making them.
Some common mistakes that decision makers should be aware of include:
• Only hearing and seeing what we want. Each individual has their own unique set
of preferences or biases which blinker them to certain information. The best way
to deal with this problem is to identify your preferences and biases whilst
attempting to be open to the information around you.
• Placing too great a reliance on the information you receive from others. Often, we
rely on certain individuals to provide support and guidance. This may be a
suitable course of action in many cases. However, if the individual is not closely
involved in the problem, situation they may not have the necessary information or
knowledge to help make the decision.
• Placing too little emphasis on the information you receive from others. This issue
can easily occur in a team situation. In many cases the team members are the
 people who are most closely involved in a problem situation and they often have
the most pertinent information in relation to the problem. The best way to deal
with this issue is to ensure that team members are involved in the decision-
making process.
• Ignoring your intuition. On many occasions we are actually aware at a
subconscious level of the correct course of action. Unfortunately, we often tend
to ignore our intuition.
ACTIVITY 3.

1. What are the roles of a manager?

2. Discuss the description of interpersonal roles, informational roles and decisional

roles

3. Differentiate problem solving from decision-making

4. What is resources?

5. What is resource management?