CHAPTER II HOW TO MAKE EFFECTIVE DECISIONS

Decision making is very vital in the development and prosperity of every organization. Decision
making defines the leadership quality of a manager, second to that is the manner how the
subordinates respond to the vision and mission of the organization by proper accomplishments of
their respective functions.

Chapter Outcomes Objectives: After completing the lesson, the learners would be able to:
1. Display effective and well informed decision making;
2. Possess level headed and educated stance whenever making a decision;
3. Always decide for the best interest of the majority;
4. Minimize self-aggrandizement and self-worth.

Pre-test
1. Describe what are the best way of making decisions?
2. How do you determine if a decision made is and educated and well-informed decision? Why? 3.
Describe you're manner of making decisions whenever called to do so?

WHAT IS DECISION-MAKING?

The Decision-Making Process: Quite literally, organizations operate by people making decisions. A
manager plans, organizes, staffs, leads, and controls her team by executing decisions. The
effectiveness and quality of those decisions determine how successful a manager will be. Managers
are constantly called upon to make decisions in order to solve problems. Decision-making and
problem-solving are ongoing processes of evaluating situations or problems, considering alternatives,
making choices, and following them up with the necessary actions. Sometimes the decision-making
process is extremely short, and mental reflection is essentially instantaneous. In other situations, the
process can drag on for weeks or even months. The entire decision-making process is dependent
upon the right information being available to the right people at the right times. The decision-making
process involves the following steps:
1. Define the problem;
2. Identify limiting factors;
3. Develop potential alternatives;
4. Analyze the alternatives;
5. Select the best alternative; Implement the decision;
6.. Establish a control and evaluation system. Define the problem: The decision-making process
begins when a manager identifies the real problem. The accurate definition of the problem affects all
the steps that follow; if the problem is inaccurately defined, every step in the decision-making
process will be based on an incorrect starting point. One way that a manager can help determines the
true problem in a situation is by identifying the problem separately from its symptoms.
The most obviously troubling situations found in an organization can usually be identified as
symptoms of underlying problems. These symptoms all indicate that something is wrong with an
organization, but they don't identify root causes. A successful manager doesn't just attack symptoms;
he works to uncover the factors that cause these symptoms. All managers want to make the best
decisions. To do so, managers need to have the ideal resources information, time, personnel,
equipment, and supplies -and identify any limiting factors. Realistically, managers operate in an
environment that normally doesn't provide ideal resources. For example, they may lack the proper
budget or may not have the most accurate information or any extra time. So, they must choose to
satisfice to make the best decision possible - with the information, resources, and time available.
Time pressures frequently cause a manager to move forward after considering only the first or most
obvious answers. However, successful problem solving requires thorough examination of the
challenge, and a quick answer may not result in a permanent solution. Thus, a manager should think
through and investigate several alternative solutions to a single problem before making a quick
decision. One of the best known methods for developing alternatives is through brainstorming, where
a group works together to generate ideas and alternative solutions. The assumption behind
brainstorming is that the group dynamic stimulates thinking ideas, no matter how outrageous, can
generate ideas from the others in the group. Ideally, this spawning of one person's ideas is
contagious, and before long, lots of suggestions and ideas flow. Brainstorming usually requires 30
minutes to an hour. The following specific rules should be followed during brainstorming sessions:
Concentrate on the problem at hand. This rule keeps the discussion very specific and avoids the
group's tendency to address the events leading up to the current problem.

Entertain all ideas. In fact, the more ideas that comes the better. In other words, there are no bad
ideas. Encouragement of the group to freely offer all thoughts up, on the subject is important.
Participants should be encouraged to present ideas no matter how ridiculous they seem, because such
ideas may spark a creative thought on the part of someone else. Refrain from allowing members to
evaluate others' ideas on the spot. All judgments should be deferred until all thoughts are presented,
and the group concurs on the best ideas. Although brainstorming is the most common technique to
develop alternative solutions, managers can use several other ways to help develop solutions. Here
are some examples: Nominal group technique. This method involves the use of a highly structured
meeting, complete with an agenda, and restricts discussion or interpersonal communication during
the decision-making process. This technique is useful because it ensures that every group member
has equal input in the decision-making process. It also avoids some of the pitfalls, such as pressure to
conform, group dominance, hostility, and conflict, that can plague a more interactive, spontaneous,
unstructured forum such as brainstorming. Delphi technique. With this technique, participants never
meet, but a group leader uses written questionnaires to conduct the decision making. No matter what
technique is used, group decision making has clear advantages and disadvantages when compared
with individual decision making. The following are among the advantages: ✓ Groups provide a
broader perspective. ✓Employees are more likely to be satisfied and to support the final decision.
✓Opportunities for discussion help to answer questions and reduce uncertainties for the decision
makers.
These points are among the disadvantages: This method can be more time-consuming than one
individual making the decision on his own. The decision reached could be a compromise rather than
the optimal solution. Individuals become guilty of group think - the tendency of members of a group
to conform to the prevailing opinions of the group. Groups may have difficulty performing tasks
because the group, rather than a single individual, makes the decision, resulting in confusion when it
comes time to implement and evaluate the decision. The results of dozens of individual-versus-group
performance studies indicate that groups not only tend to make better decisions than a person acting
alone, but also that groups tend to inspire star performers to even higher levels of productivity. So,
are two (or more) heads better than one? The answer depends on several factors, such as the nature of
the task, the abilities of the group members, and the form of interaction. Because a manager often has
a choice between making a decision independently or including others in the decision making, she
needs to understand the advantages and disadvantages of group decision making. The purpose of this
step is to decide the relative merits of each idea. Managers must identify the advantages and
disadvantages of each alternative solution before making a final decision. Evaluating the alternatives
can be done in numerous ways. Here are a few possibilities: ✓ Determine the pros and cons of each
alternative. ✓ Perform a cost-benefit analysis for each alternative. ✓Weigh each factor important in
the

ranking each alternative relative to its ability to meet each factor, and then multiply by a probability
factor to provide a final value for each alternative. Regardless of the method used, a manager needs
to evaluate each alternative in terms of its Feasibility - Can it be done? ✓ Effectiveness How well
does it resolve the problem situation? ✓ Consequences What will be its costs (financial and
nonfinancial) to the organization? After a manager has analyzed all the alternatives, she must decide
on the best one. The best alternative is the one that produces the most advantages and the fewest
serious disadvantages. Sometimes, the selection process can be fairly straightforward, such as the
alternative with the most pros and fewest cons. Other times, the optimal solution is a combination of
several alternatives. Sometimes, though, the best alternative may not be obvious. That's when a
manager must decide which alternative is the most feasible and effective, coupled with which carries
the lowest costs to the organization. (See the preceding section.) Probability estimates, where
analysis of each alternative's chances of success takes place, often come into play at this point in the
decision- making process. In those cases, a manager simply selects the alternative with the highest
probability of success. Managers are paid to make decisions, but they are also paid to get results from
these decisions. Positive results must follow decisions. Everyone involved with the decision must
know his or her role in ensuring a successful outcome. To make certain that employees understand
their roles, managers must thoughtfully devise programs, procedures, rules, or policies to help aid
them in the problem-solving process.

Ongoing actions need to be monitored. An system should provide feedback on how well the decision
is being implemented, what the results are, and what adjustments are necessary to get the results that
were intended when the solution was chosen. In order for a manager to evaluate his decision, needs
to gather information to determine its effectiveness. Was the original problem resolved? If not, is he
closer to the desired situation than he was at the beginning of the decision-making process? If a
manager's plan hasn't resolved the problem, he needs to figure out what went wrong. A manager may
accomplish this by asking the following questions: Was the wrong alternative selected? If so, one of
the other alternatives generated in the decision-making process may be a wiser choice. Was the
correct alternative selected, but implemented improperly? If so, a manager should focus attention
solely on the implementation step to ensure that the chosen alternative is implemented successfully.
Was the original problem identified incorrectly? If so, the decision-making process needs to begin
again, starting with a revised identification step. Has the implemented alternative been given enough
time to be successful? If not, a manager should give the process more time and re-evaluate at a later
date. Make re-planning based on results of evaluation. Detailing Types of Plans Plans commit
individuals, organizations, and the resources of each to specific actions for the future. Effectively
designed organizational departments, goals fit into a hierarchy so that the achievement of goals at
low levels permits the attainment of high-level goals. This process is called a means-ends chain
because low- level goals lead to accomplishment of high-level goals.
Enter

Three major types of plans can help managers achieve their organization's goals: strategic, tactical,
and operational. Operational plans lead to the achievement of tactical plans, which in turn lead to the
attainment of strategic plans. In addition to these three types of plans, managers should also develop
a contingency plan in case their original plans fail. Operational Plans The specific results expected
from departments, work groups, and individuals are the operational goals. These goals are precise
and measurable. "Process 150 sales applications each week" or "Publish 20 books this quarter" are
examples of operational goals. An operational plan is one that a manager uses to accomplish his or
her job responsibilities. Supervisors, team leaders, and facilitators develop operational plans to
support tactical plans (see the next section). Operational plans can be a single-use plan or an ongoing
plan. Single-use plans apply to activities that do not recur or repeat. A one-time occurrence, such as a
special sales program, is a single-use plan because it deals with the who, what, where, how, and how
much of an activity. A budget is also a single-use plan because it predicts sources and amounts of
income and how much they are used for a specific project. Continuing or ongoing plans are usually
made once and retain their value over a period of years while undergoing periodic revisions and
updates. The following are examples of ongoing plans:A policy provides a broad guideline for
managers to follow when dealing with important areas of decision making. Policies are general
statements that explain how a manager should attempt to handle routine management responsibilities.
Typical human resources policies, for example, address such matters as employee hiring,
terminations, performance appraisals, pay increases, and discipline.

A procedure is a set of step-by-step directions that explains how activities or tasks are to be carried
out. Most organizations have procedures for purchasing supplies and equipment, for example. This
procedure usually begins with a supervisor completing a purchasing requesition. The requesition is
sent to the next level of management for approval. The approved requisition is forwarded to the
purchasing department. Depending on the amount of the request the purchasing department may
place an order, or they may need to secure quotations and/or bids for severs vendors before placing
the order. By defining the steps to be taken and the order in which they are to be done, procedures
provide a standardized way of responding to a repetitive problem. A rule is an explicit statement that
tells an employee what he or she can and cannot do. Rules are "do" and "don't" statements put into
place to promote the safety of employees and the uniform treatment and behavior of employees. For
example, rules about tardiness and absenteeism permit supervisors to make discipline decisions
rapidly and with a high degree of fairness. Tactical Plans A tactical plan is concerned with what the
lower level units within each division must do, how they must do it, and who is in charge at each
level. Tactics are the means needed to activate a strategy and make it work. Tactical plans are
concerned with shorter time frames and narrower scopes than are strategic plans. These plans usually
span one year or less because they are considered short-term goals. Long-term goals. on the other
hand, can take several years or more to accomplish. Normally, it is the middle manager's
responsibility to take the broad strategic plan and identify specific tactical actions. A strategic plan is
an outline of steps designed with the goals of the entire organization as a whole in

mind, rather than with the goals of specific divisions or departments. Strategic planning begins with
an organization's mission. Strategic plans look ahead over the next two, three, five, or even more
years to move the organization from where it currently is to where it wants to be. Requiring
multilevel involvement, these plans demand harmony among all levels of management within the
organization. Top-level management develops the directional objectives for the entire organization,
while lower levels of management develop compatible objectives and plans to achieve them. Top
management's strategic plan for the entire organization becomes the framework and sets dimensions
for the lower level planning. Contingency Plans Intelligent and successful management depends upon
a constant pursuit of adaptation, flexibility, and mastery of changing conditions. Strong management
requires a "keeping all options open" approach at all times-that's where contingency planning comes
in. Contingency planning involves identifying alternative courses of action that can be implemented
if and when the original plan proves inadequate because of changing circumstances. Keep in mind
that events beyond a manager's control may cause even the most carefully prepared alternative future
scenarios to go awry. Unexpected problems and events frequently occur. When they do, managers
may need to change their plans. Anticipating change during the planning process is best in case
things don't go as expected. Management can then develop alternatives to the existing plan and ready
them for use when and if circumstances make these alternatives appropriate.

DECISION MAKING PROCESS

Decision making is a daily activity for any human being. There is no exception about that. When it
comes to business organizations, decision making is a habit and a process as well. Effective and
successful decisions make profit to the company and unsuccessful ones make losses. Therefore,
corporate decision making process is the most critical process in any organization. In the decision
making process, we choose one course of action from a few possible alternatives. In the process of
decision making, we may use many tools, techniques and perceptions. In addition, we may make our
own private decisions or may prefer a collective decision. Usually, decision making is hard. Majority
of corporate decisions involve some level of dissatisfaction or conflict with another party. Let's have
a look at the decision making process in detail. Steps of Decision Making Process: Following are the
important steps of the decision making process. Each step may be supported by different tools and
techniques. Decision Making Process Step
1: Identification of the purpose of the decision: In this step, the problem is thoroughly analyzed.
There are a couple of questions one should ask when it comes to identifying the purpose of the
decision. ✓ What exactly is the problem? ✓ Why the problem should be solved? ✓ Who are the
affected parties of the problem? ✓ Does the problem have a deadline or a time-line? specific

Step 2: Information gathering: A problem of an organization will have many stakeholders. In

addition, I there can be dozens of factors involved and affected by the problem. In the process of
solving the problem, you will have to as much as information related to the factors and stakeholders
involved in the problem. For the process of information gathering, tools such as Check Sheets' can be
effectively used.
Step 3: Principles for judging the alternatives: In this step, the baseline criteria for judging the
alternatives should be set up. When it comes to defining the criteria, organizational goals as well as
the corporate culture should be taken into consideration. As an example, profit is one of the main
concerns in every decision making process. Companies usually do not make decisions that reduce
profits, unless it is an exceptional case. Likewise, baseline principles should be identified related to
the problem in hand.
Step 4: Brainstorm and analyze the different choices: For this step, brainstorming to list down all
the ideas is the best option. Before the idea generation step, it is vital to understand the causes of the
problem and prioritization of causes. For this, you can make use of Cause-and-Effect diagrams and
Pareto Chart tool. Cause-and-Effect diagram helps you to identify all possible causes of the problem
and Pareto chart helps you to prioritize and identify the causes with highest effect. Then, you can
move on generating all possible solutions (alternatives) for the problem in hand.
Step 5: Evaluation of alternatives: Use your judgment principles and decision-making criteria to
evaluate each alternative. In this step, experience and effectiveness of the judgment principles come
into play. You need to compare each alternative for their positives and negatives.

Step 6: Select the best alternative: Once you go through from Step 1 to Step 5, this step is easy. In
addition, the selection of the best alternative is an informed decision since you have already followed
a methodology to derive and select the best alternative. Step 7: Execute the decision: Convert your
decision into a plan or a sequence of activities. Execute your plan by yourself or with the help of
subordinates. Step 8: Evaluate the results: Evaluate the outcome of your decision. See whether there
is anything you should learn and then correct in future decision making. This is one of the best
practices that will improve your decision- making skills. B. WHO ARE AUTHORIZED TO MAKE
DECISIONS? Legal Decision Making: Child custody used to be the term that was used in relation to
this; but now the term has been changed to the legal decision-making authority. When you are
discussing the parenting arrangements for a child, this is now the term that will be used by the court.
The legal decision-making authority is determined as part of some form of legal separation, or in
relation to matters related to maternity and paternity. When one parent files a petition with the court,
they are asking the court to grant them the authority of legal decision- making for that child. If the
court agrees that a parent has such authority and they meet the statutory requirements to be
determined as a parent, then it is the court's responsibility to ensure that the individual is granted
some form of legal decision-making authority so that they can act on behalf of their child. What Does
Legal Decision Making Authority Grant? According to the Arizona Department of Economic
Security, legal decision making is defined as the court granting authority to a person or persons to
care for a minor child. It is giving that person the right to care for the child on whatever term is set,
whether that is for a day, a weekend, during the summer, or even permanent; and gives that person
legal authority to make decisions that are in the best interests of the minor. These may include such
things as religious choice, educational choice, medical treatment, and what extracurricular activities
the child will be involved in. However, the legal decision making authority does not relate directly to
the amount of time that a parent or other person is granted. Instead, this is just about dealing with
who has the authority to act on behalf of the child and make decisions that are in the best interests of
the child. It should be noted that even if one parent has custody of the child during a certain period of
time, like over a weekend, that does not mean that they have legal decision-making authority. This is
a very important point for any parent to understand. Example of Legal Decision Making: If a father is
granted visitation with the child every other weekend in a month, that may grant the father time that
he can spend with the child, including bringing him or her to his home. He is given authority to have
"custody" of the child according to what most people view as the definition of this term. However,
this may not give the father the responsibility of the legal decision-making authority. This means that
if the child was hurt and needed medical care during that weekend period, the father may not have
the authority to take the child to the doctor and seek medical attention. He may be required to contact
the mother and ask her to meet at the medical facility, or he may be allowed to take the child to the
doctor but all decisions on what kind of treatment the child would receive would come down to the
mother. This is if she has full legal decision-making authority.

How do operating processes and tools help support decision-making? A decision-making process
defines the forums and procedures through which decision-makers across the organization make their
decisions. Factors to consider here include how often a decision-making body should convene, what
stakeholder’s decision- makers need to consult, and what evidence (such as data, research, or expert
analysis or guidance) might be useful and available to inform these decisions. Achieving clarity
about the who, what, and how of decision-making doesn't happen by accident, however. In our
research, organizations with high organization design maturity were explicitly aware of the need to
build decision rights into their organization's designs. They deliberately set out to establish structures
and procedures to enable decision-making empowerment, influence and transparency, often
prioritizing these elements even over defining the business's daily workflows and functions. What's
so hard about decision rights? If decision rights are so important, why do more organizations not
sufficiently address them? Even many organizations that have recently gone through an
organizational redesign effort, a restructuring, or a merger or acquisition- events where decision
rights should have been explicitly considered-often struggle to articulate their decision- making
accountabilities and processes. What makes decision rights such a common blind spot? One probable
reason is that few people recognize decision rights as a distinct organizational design need in its own
right. We have found that many leaders tend to confuse decision rights with organizational structure,
process, and workflow, mistakenly assuming that the design of roles or work processes will also
adequately define the organization's decision-making practices. Because of this, many organizations
remain effectively stuck in neutral, with management viewing decision-making as a result rather than
as something that needs to be actively-and proactively-addressed. The tacit assumption is that if an
organization creates
the right structures and processes, or reconfigures its organizational charts, then decision-making will
happen naturally and automatically, and financial performance will improve. In reality, this is rarely-
if ever-the case. The sheer size and complexity of some organizations can be another barrier. The
bigger and more complicated the organization, the harder it can be to untangle existing decision-
making practices and design better ones. Overlapping responsibilities can muddle the question of
"who" makes decisions, resulting in inefficiency and slower responses to business opportunities. In
fact, a major institutional challenge is often the tension between getting something done quickly
versus collaborating, integrating, and bringing the whole company along with "getting it done
quickly" frequently taking priority. Fast decision-making is often celebrated, even when it's not
necessarily effective or well-informed. A third, potentially even more pernicious reason that many
organizations have difficulty addressing decision rights is resistance from senior executives. In some
organizations, especially in traditional, more hierarchical organizations, executives may want the
identity of the individuals making decisions to be obfuscated, particularly for top-level corporate
decisions. Why? Because, in environments where decisions are made high up and out of sight,
executives find they can more readily exert outsized influence behind the scenes. Leaders can make
decisions based on personal interest instead of commonly understood evidence and analysis, and do
so while avoiding clear accountability for the outcomes. Simply put, executives may resist explicitly
defining the decision-making process because they fear diminishing their own power and influence.
Executive resistance to defining decision rights can be particularly strong in organizations where
accountability is not already a strong part of the culture. In organizations where people do not believe
that formal accountability can emerge from a defined process or venue, it can be difficult to hold
anyone accountable for decisions, let alone senior leadership. In such organizations, top executives
can often operate with impunity as they grow accustomed to exerting greater informal influence than
they can formally. More clearly establishing accountability for decisions, along with defining regular,
transparent decision-making processes and forums, can indeed decrease executives' informal
influence. However, the payoff for doing this can be twofold. First, decision rights can become
guardrails that prevent personal agendas and loyalties from superseding organizational goals. And
second, better-defined decision rights and accountabilities can encourage greater collaboration by
reducing the reasons for unhealthy competition between leaders and increasing their attachment to
collective Five ways to get decision rights right: Let's now return to the five attributes related to
decision rights that characterize organizations with high organization design maturity. What does
each attribute look like, and what can leaders do to help install them at their own organizations?
Simplify and clarify decision rights across the organization: At the risk of stating the obvious, the
effectiveness of an organization's decision rights practices depends critically on how clearly and
simply those decision rights-the who, what, and how of decision-making-are defined and
communicated. Our research shows that clarity in decision-making has the potential to double the
likelihood of improving processes to maximize efficiency. One well-known tool that can be helpful
in designating specific decision-making roles is the RACI framework, where "RACI" stands for
Responsible, Accountable, Consulted, and Informed. In the context of decision rights, leaders can use
the RACI framework to understand and agree on:
Who is Responsible for executing the work?
The responsible individual or individuals are those who carry out the actions prescribed by a
decision-not necessarily those who make the decision. Who is Accountable for the decision's
outcomes? The accountable role identifies the actual decision- Optimally, maker, whether an
individual or a group. each decision should have only one accountable role (that is, a single decision-
making individual or group). Who should be Consulted for input, information, insights, and
perspectives? Along with identifying the appropriate people to be consulted, a strong decision rights
framework will also provide guidance on the consultative process (that is, how these consultations
should take place). Who should be Informed about the decision and its outcome? These may include
individuals in leadership positions as well as other decision-makers whose own decisions must take
the prior decision into account. In addition to simplifying and clarifying the who and how around
decision-making, it's also important to clearly articulate the what-which decisions are the highest
priority. In many cases, understanding what decisions are most critical can help organizations better
figure out the who and the how. Simplicity and clarity in decision rights can sometimes prove to be
the missing ingredient in an otherwise "stuck" transformation effort. For instance, one Fortune 500
organization in the financial services industry implemented several agile practices, including
redesigning their organization into network-based teams, in an effort to become more agile as a
business, However, leaders quickly found that the changed structure alone was not yielding the
hoped-for benefits. They moved people and roles around and called them in fact, the new structure
created further confusion "chapters" and "guilds," and yet nothing really changed; and decision-
making delays, as the accountabilities for decisions had not been clearly assigned. It was not until the
organization focused specifically on decision making that performance began to improve. Leaders
clarified which few decisions mattered most-the ones that had a significant impact on resources and
outcomes and identified which person or group had the authority to make each decision. They then
communicated these decision rights to the accountable people and groups, along with clear
guidelines for when a decision would need to be escalated. By building transparency and
accountability into decision-making, the organization increased worker satisfaction and significantly
improved its ability to get products and services to market. Establish strong, transparent
accountability for decisions made: Just because an organization has done a RACI exercise to assign
decision-making accountability doesn't mean that those accountabilities have been made strong and
transparent, which is the second key attribute of organizations with effective decision rights
practices. To achieve strong, transparent accountability, leaders should consider and answer
questions such as: Who is the primary owner of the decision's outcomes?

How-using what metrics-will these outcomes be evaluated?

Where, when, and how will progress against these outcomes be evaluated? slo To what degree will
the answers to these questions be shared openly and broadly within the organization?
The aim of strong, transparent accountability is not to assign blame for decisions gone wrong.
Rather, transparent and clear accountability, complete with agreed-upon outcomes and metrics,
makes it easier for an organization to review and reflect on past decisions and the process by which
they were made, enabling the organization to better learn from both failures and successes. Focusing
on decisions and outcomes, and not on individuals, reduces unhelpful anxieties and defensiveness
and increases the potential for true reflection. The value of such transparency and reflection is backed
up by research on organizational learning cultures: Organizations with greater clarity about both the
identity of its decision-makers and the outcomes of the decisions made are better able to harvest
invaluable wisdom from both success and failure, ultimately leading to better results. Decision-
makers should understand, too, that it is not enough just to know where one's own decision- making
authority begins and ends. It can be even critical to understand what roles others across the
organization play in decision-making, including the specific decision-making accountabilities of key
individuals and groups. This level of understanding is useful because it can help people identify and
address decision-making bottlenecks and roadblocks. Most organizational decisions, after all, do not
occur in a vacuum: Most have a critical path, with some having to be made before others can be
considered, and knowing "where" (that is, with whom) the decision-making process is stuck is the
first step in shaking it loose.i Align individuals in decision-making groups to a common mission:
Sometimes, an organization may want certain decisions to be made by groups, not by individuals.
One reason group decision-making can be desirable is that it brings multiple perspectives to the table,
which can improve decision quality. The flip side, however, is that unhelpful competition and dissent
within the decision-making group can slow the process and sabotage decision quality. hujaid agaond
can help counter this risk, allowing the group to reach Can Establishing a clear common mission for
the group decisions more quickly and less contentiously. To do this, the group should have a charter
that articulates its mission, with the full endorsement of the organization's senior leadership team.
The organization should also establish individual and team incentives for the group that support the
common mission.

As an example, at one global pharmaceutical company, decisions about resources and project
prioritization had historically been made piecemeal, with the leaders of the R&D, marketing, legal,
and compliance functions signing off on their "piece" of the decision, followed by the CEO
reviewing and approving the decision-in this case, to move on to the next step in the drug
development process-as a whole. This practice of pooling individual decisions for the CEO's ultimate
signoff was not only slow-many decisions were delayed as their individual components made their
way up the chain of command-but also did not allow the functional leaders to take each other's
perspectives into account. To speed the decision-making process, the organization identified what
decisions had to be made, determined which ones were most critical to the outcomes they cared
about, and analyzed how these decisions were currently being made. They then assigned decision-
making accountability to specific people or cross-functional groups, highlighting decisions for which
they deemed it essential to bring cognitive diversity-diversity of thought-to foster innovation and get
drugs to market more quickly. The common mission, communicated by the CEO as a strategic "must
win" priority and reinforced through changes in bonuses and goals, was to speed up and improve the
drug development process by making timely decisions in an integrated manner. Partly as a result of
these changes, the company was able to accelerate its products' time to market twofold. Encourage
Distributed Authority Some important enterprise-level decisions must rest with C-suite executives or
others in top management positions. But in the day-to-day course of business, these types of
determinations are much less common than more routine decisions. Pushing such day-to-day
decisions closer to where they directly affect operations-in effect, putting them in the hands of
frontline workers-allows an organization to be more flexible and respond more quickly to changing
marketplace needs.
That said, while giving frontline workers more decision-making authority can increase adaptability, it
can also create confusion if accountabilities are not clearly defined and communicated. Just as with
decision rights among management, it's therefore important to explicitly articulate which frontline
workers have the authority to make which decisions under what circumstances. Empowering line
workers to make decisions can pay off in greater agility and responsiveness. For example, the
pharmaceutical company described above identified which decisions had to remain in the corporate
center and pushed all remaining strategic investment and operational decisions to its frontline teams.
Among other things, team leaders were empowered to make certain financial decisions within
previously established budget guidelines, and given authority to change individuals' performance
measurement metrics and incentives. This, along with the shift to cross-functional decision- making,
helped the company's newest drug beat the previous time to market by two years and achieve a
dominant position in the market. Prioritize the Customer Voice in Decisions: Among the most
important ways to better understand customer wants and needs is for organizations to listen more
closely to what their customers are saying. Indeed, our research finds the highest-performing
adaptable organizations have learned to "put the customer and (the customer's) outcomes at the center
of every decision." Giving customer-facing workers more decision-making authority is one way to
increase the customer's influence over these decisions. CA In one instance, company was a famous
consumer products center intended to tailor distribution to more effectively setting up a new, flexible
distribution meet customer demand. To enable a more accurate understanding of customer demand
and the ability to quickly act on this understanding, key decisions around how to bundle, ship, and
deliver products were assigned to a cross-functional customer-facing team.

decisions that harm people, the resulting bad reputation can hamper your ability to grow. In cases
where any decision you make will harm somebody, expressing genuine concern about the situation
will at leas demonstrate that you are aware of the social impact of your your decisions. For example,
if you sell a product meant for adults, such as alcohol, and you acknowledge that some teens may
consume your product illegally, your recognition of the dilemma can place you in a favorable light. If
you spend some of your profits on public service announcements about the dangers of teen drinking,
you will show that you put your money where your ethics are. ETHICAL DIMENSIONS OF
LEADERSHIP AND DECISION MAKING The field of organizational ethics deals with the issues
that inevitably arise when a desire for financial success with moral duty. While the academic study of
ethics is complex, there are some basic steps you can take to foster an ethical, socially responsible
company. Considerations: You're in business to make money, but you also have moral duties toward
your employees, customers and community. Ethical guidelines, no matter how detailed, cannot
address every potential ethical dilemma. That's why it's important to periodically analyze your goals
and practices, as well as those of your employees, to determine if your organization is drifting into
unethical behavior. In general, the most effective approach is to strive to be honest and forthright and
to consider the needs of others as much as or more than your own. Exton tol norlut - Employees: As a
business owner, you are responsible for creating a workplace in which your employees can thrive.
For example, you must monitor hiring and firing practices and promotions and bonuses to ensure fair
and equal treatment of all workers. While complying with legal guidelines is an important first step,
your moral obligation goes further. For example, hiding vital

information about the financial health of your company is unethical, as is ignoring worker safety.
You also must monitor your employees to ensure they behave ethically. Customers: Your customers
depend on you to maintain an ethical organization. A bakery's clients trust that the posted food
descriptions are accurate and consistent. If you fail to honor their trust -- for instance, if you cut costs
by secretly switching to cheaper ingredients while still claiming to use higher-quality versions -- you
disregard their right to make informed decisions. Such behavior is unethical and possibly illegal.
Community: Your organization can have detrimental effects on your community. As the leader of
your company, you have an ethical obligation to do what you can to minimize those negative effects,
even if that hurts your profitability. For example, dumping hazardous chemicals near your business
might save money, but you have a legal and ethical duty to find socially and environmentally
responsible ways to operate. Further, many companies believe it's important to do more than just
minimize harm. For instance, your company could find ways to partner in social causes, perhaps
raising money to assist disadvantaged locals. Customer Transparency: Many of the ethical issues in
profit maximization center on customers, given that they directly provide the revenue you need to
earn a profit. Profit maximization dictates that you attract customers and create sales at all costs.
However, ethical demands suggest you need to operate with honesty, transparency in marketing and
a more customer-centric attitude. In the short-term, you may miss sales by being honest. However,
building a reputation for integrity and customer-friendliness can benefit you with increased customer
loyalty and higher long-term profit as a result. Community also suggests that your best move in a
community is Relationships: Profit maximization to figure out how to get the best location, tap into
all possible subsidies and give little consideration to how your money-making endeavors affect the
local area in

which you operate. Ethically, this isn't a good way to build a favorable reputation with community
leaders and citizens. Instead, communities typically companies to get involved in local activities and
events and to give back in some way for the financial benefits they receive, even if that may take
some revenue a from the bottom line. expect away Fair Employment: Labor is one of the most
significant costs to a business and costs impede profit. Thus, profit maximizes pay the lowest
possible wages, cut corners on benefits and may even hire illegal workers or fail to pay for overtime.
Aside from the legal implications, creating a work environment that is unfair for employees fails the
ethics test. Along with basic compensation factors, companies also must promote a non-
discriminatory culture. Paying for safety training and equipment can also eat into profit, but ethics
require you need to provide the safest operation possible for your workers. Partner Integrity:
Business associates and partners that support your profit-generation also have some ethical
expectations. First, they expect that you operate with integrity to avoid indirectly damaging their
reputations. Additionally, your suppliers expect that you communicate honestly, don't use their
products for unethical purposes and pay your bills on time. Treating suppliers fairly may cost more
initially, but strong supplier partnerships can provide benefits to your operation and brand in the
long-term. ETHICAL & MORAL VALUES ORGANIZATION IN INDUSTRIAL The benefits of
adopting ethics in business are more important than ever before in maintaining a sustainable and
profitable business. It is no longer acceptable for a business to operate in an entirely self-interested
manner, having no regard to the impact it has on the local community. In the modern commercial
environment there is a strong emphasis on businesses meeting their legal guidelines and ethical
obligations. Trading an ethical and socially-conscious manner will benefit businesses off all sizes on
a number of levels.

Goodwill and Publicity: One of the major advantages of business ethics is the opportunity to foster a
sense of goodwill among the general public toward your business. Customers are increasingly
concerned with using products produced in an environmentally sustainable manner and where the
producers are paid a fair wage for their work for example, fair trade coffee. Being seen as meeting
your social and societal obligations will ingratiate your business to the public and attract socially
responsible consumers. சாமி Shareholders and Investors Benefit: In most cases, it will be important
to shareholders that your business is managed in an ethical fashion. Transparent accounting practices
and an engaging, consultative relationship with your shareholders will encourage confidence in your
business. Investors will be more willing to put capital into a business that they can see is ethically
managed, because there is less chance that the business will be founded on unsafe practices.
Ethically-minded investors may also be unwilling to invest in a business that they see as socially or
environmentally irresponsible. Gives the Business a Competitive Edge: Advantages of business
ethics can extend beyond moral obligation; they can also benefit a company's bottom line. Ethical
behavior can serve to differentiate your brand from those of your competitors if you operate in an
oversubscribed market, offering you a competitive edge. Identifying your product and business
practices as being founded on strong ethical principles makes your product or service more attractive
to consumers - a good example of this model would be the Body Shop, a cosmetics company whose
products are not tested on animals. Moral Obligations to the Community: A powerful argument in
favor of running your business in an ethical manner, aside from the financial benefits that can be
gained, are the moral obligations your business has toward the community. A successful business
takes from the community in the form of profits, which are distributed among its employees,
directors and shareholders in wages and dividends. As an integral

part of society, the business has a moral obligation to behave in an ethical manner toward employees
and third parties, and to be conscious of its environmental impact. Positive Knock-On Effects: The
knock-on effects of adopting a strong ethical ethos will benefit a business. Honest, open accounting
practices will help build a stronger financial base for the company and may help avoid lawsuits or
sanctions for malfeasance. The knock- your tax liabilities will be a prosperous, more robust local
economy, which will benefit everyone in the long run. THE IMPORTANCE OF
CONFIDENTIALITY IN MENTORING Creating an ethical culture for your small business means
more than complying with regulations. Your business operates as part of society and you can lose
customers and status by engaging in behavior that is perceived as unethical even if it is legal. While
you can set rules for employees to follow, rules won't replace the influence of culture on behavior.
You can create a positive culture by addressing ethics as part of each employee's job.
Communicating Values: Ethics start with values, and company values start with the owner's values.
You necessarily have to focus on some bottom line issues, such as productivity and sales, but you can
also take time to convey your ethical values and the values you expect from employees. Your
willingness to make values part of your professional outlook will send the message that ethics are not
an afterthought. This helps create a culture that is ethical. Internal Systems: Quality control doesn't
just mean checking products or services to see that they live up to standards. It also means assessing
the ethics of decision- making. If you create a system to review decision and listen to concerns about
company initiatives

ethics. This creates a culture where ethics are part of the quality you offer. The result in pride can
help retain employees and produce high-quality work in ways bonuses and other incentives never
could. In short, employees who feel good about where they work are more likely to stay and do good
work. Enforcement of Policies: Ethics isn't something you just talk about. You must put policies in
place that explicitly state punishments for unethical behavior and rewards for ethical behavior. After
you've established those policies, if you enforce them consistently you re- enforce your expectations
that employees will behave ethically at all times. This means you must also make sure that you
follow your own policies so you will serve as an example. Conversations About Ethics: Ethics are
not part of your culture if they're not part of your conversation. Company-wide meetings and
communications can refer to ethical dilemmas regularly so that employees understand that
discussions of ethics are a normal part of their work days. San Francisco State University points out
in its newsletter, "SF State News," that some employees may be reluctant to discuss ethics because
having a difference of opinion may seem like they're favoring dishonesty. However, if you create an
atmosphere where dissenting points of view are allowed, the open discussion about ethics will
contribute more to an ethical culture than any disagreements would detract from it. WHAT IS THE
DIFFERENCE BETWEEN UNETHICAL AND ETHICAL ADVERTISING? Just a few decades
ago, business ethics received far less attention and scrutiny than they do today. Some questionable
practices were regarded as simply the price of doing business and remaining competitive in a
crowded marketplace. As the public demands greater transparency today, both small and large
businesses must understand and honor ethical boundaries.

business with a constant eye on the bottom line, practice that's not inherently illegal or unethical
However, if organizations inflate fees and charges, fail to give customers everything they paid for,
bill clients for time they don't work or price gauge in the event of natural disasters or other
catastrophes, they breach the trust of clients and the general public. Also, if companies knowingly
sell inferior products or services, they violate ethical boundaries by fraudulently taking customers'
money and potentially placing them at risk, especially if the products are dangerous or don't function
as promised. Conflicts of Interest: The public expects that the primary responsibility of employees
and company management is to their customers, yet professionals sometimes place their personal
benefit first or use their positions to gain favors or other perks. For example, if a company is
evaluating bids from several suppliers and accepts gifts from one candidate in exchange for the
contract, this constitutes a bribe and unfairly eliminates other applicants from the bidding process.
Similarly, if a professional uses insider knowledge to dump stock he knows is about to take a
significant hit, this violates ethical standards and could be considered criminal activity. Employment
Policies and Practices: How a company treats current and potential employees reflects on its ethical
principles and can damage employee morale or drive away top talent. Employers who favor
candidates in their 20s regardless of their qualifications unfairly discriminate against older workers.
Ethics also come into play regarding the day-to-day treatment of employees, such as allowing a
culture of bullying, requiring employees to work exceedingly long hours of in inhospitable
conditions, and paying workers below minimum wage or less than the standard industry wages.
Social and Environmental Impact: Some ethical violations aren't immediately obvious but gradually
cause

damage to the community. For example, companies that use unethical business practices to squeeze
out their competitors could shut down businesses in the community and threaten the economy and
people's livelihoods. If companies don't assess the environmental footprint they leave behind, they
could cause irreparable ecological damage that also may threaten the health and safety of residents in
the community. THE VALUE OF STRONG ETHICAL BUSINESS PRACTICES AND SOCIAL
RESPONSIBILITY Stakeholders are the people and groups that have an interest in your business.
Traditionally, shareholders or owners have been the primary stakeholder of a business. In the early
21st century, though, other groups have become more vocally involved in holding companies to a
higher social and environmental standard. Stakeholder Groups: To understand the impact of
stakeholders, you need to know who they are and how they relate to your business. Along with
owners, customers, communities, employees, business partners and suppliers are key groups.
Customers expect you to operate a business honestly and fairly while also offering a value-oriented
solution. Communities expect companies to get involved and to give back. Employees expect a fair
working environment. Business partners and suppliers expect you to manage your business
relationships with high integrity and responsibility. Financial Impact: Companies are still in business
to make money. However, the financial interests of your owners, partners or shareholders have been
tempered a bit to create a greater balance with social responsibilities. Still, part of your role as
company leader is to make wise decisions that improve revenue, minimize costs and produce a
positive bottom line. The greater involvement of other stakeholders, though, has had uncertain effects
on the bottom line of companies. Showing a financial return on investment from socially and
environmentally responsible behaviors is difficult. It costs money to manage waste and recycling
programs

that are good for the environment. However, companies that do take other stakeholder interests into
account understand the negative publicity that comes from unethical decision-making in the
information age. Social Impact: The internet and mobile technology have given greater power to
social and consumer watch groups and the public at-large. If you operate without integrity in
customer marketing, sales and service, you will get called on it. Non-customer friendly actions
simply don't make long-term sense in the early 21st century. Communities, a separate entity from
customers, also expect you to participate in community activities and to share a bit of the wealth with
the people that provide your income. One of the advantages a local business has over large chains is
the connection with the community. Leave this aside and you lose that personal touch. Operations
Impact: Employees have become a much more involved stakeholder group. In general, employees
expect to be valued as a key asset and expect to be able to work in a non-discriminatory work
environment. Failure to provide an equal opportunity workplace can lead to lawsuits and low
employee morale. Suppliers expect to be paid on time and expect that you will keep them in the loop
on important business activity that relates to their relationship with your company. As a simple
example, using a supplies or resale products in a way that is bad for the environment or socially
irresponsible impacts the suppliers or your partners as well. THE ADVANTAGES OF BEING
ETHICAL Your ethical business practices affect more than just your small business. Violations of
the public trust create a poor climate for all businesses and can bring down local, regional and even
national economies. Your primary defense against unethical practices among your employees,
managers and even yourself is ethical awareness in the workplace. All of your business activities,
from the stockroom to the boardroom, have ethical implications. Promoting ethical awareness
requires company-wide initiatives.

Community Responsibilities: Your business has a place in the community, whether that is a literal
community around your premises or a virtual community of customers and other businesses like
yours. Create awareness among your workforce of the importance of having a positive reputation in
your community. At company-wide meetings, you can discuss your company's standing in the
community and the importance of each employee's contributions to that standing. For example, if you
operate a tire store, emphasize the importance of removing old tires from the back of the store and
recycling them properly. Conflicts of Interest: Make your employees aware of the pitfalls of conflicts
of interest, whether those conflicts involve an exchange of money or an exchange of favors. Business
is about selling products or services to customers who value them. If vendors, supervisors or owners
favor a product, course of action or employee because of an outside interest, your business no longer
values honesty. Make your workforce aware of your distrust of conflicts of interest, and encourage
the reporting of such conflicts. Employment Practices: You should have written guidelines that state
the ethics of your employment practices. Not only does the law prohibit prejudicial hiring and
promotions, but such practices also destroy the trust of your employees. Review your guidelines
periodically and reiterate them in meetings, emails and bulletin board postings so that you foster
awareness of fair employment practices. Honesty: You should promote honesty between your
employees and your customers. This includes your sales staff, which should never make false
promises or inflated claims. In addition, demand honesty from employees on everything from
reporting hours to handling stock and financial transactions. Your own honesty and transparency will
foster awareness of the importance of honesty. Property Rights: You can promote ethical awareness
by writing detailed policies regarding property rights.

These policies should not only cover your expectations for the treatment of company property such
as the premises and inventory, but also the respect you show toward personal property of employees.
The Law: Some ethical awareness comes from knowledge of the Publish guidelines on bribery,
discrimination and fraud, along with the legal consequences for such behavior. These guidelines are
vital in the event that en employee engages in illegal activity, because you need to be able to
document the fact that you neither endorse nor encourage such activity. VALUES AND CULTURE
IN ETHICAL DECISION MAKING: (Christine Chmielewski 2004) Ethical standards are the
standards of our environment that are acceptable to most people. In the western world these standards
are, in large part, based on Judeo-Christian principles. Generally referred to as mores, ethical
standards are what the majority accepts as good, and the way they behave without imposed rules and
regulations. Within our societal structure, sanctions are often imposed on those who fail to follow
ethical standards, and laws dictate consequences for those found guilty of unethical behaviors.
Ethical thinking involves the intricate process used to consider the impact of our actions on the
individuals or institution we serve. While most decisions are routine, we can unexpectedly face an
ethical dilemma when unusual situations occur suddenly for which an immediate response is needed.
The foundation of ethical decision-making involves choice and balance; it is a guide to discard bad
choices in favor of good ones. Therefore, in making ethical decisions, one of the first questions to
consider is what a reasonable man would do in this situation? For tougher decisions, advisors may
find three rules of management helpful (Hojnacki, 2004). The Rule of Private Gain. If you are the
only one personally gaining from the situation, is it is at the

expense of another? questioning your ethics in advance of the decision. If Everyone Does It. Who
would be hurt? What would the world be like? These questions can help identify unethical behavior.
If so, you may benefit from Benefits vs. Burden. If benefits do result, do they outweigh the burden?
When people work closely together on a project, individuals tend to take on the core values of the
group. Individuals a group often compromise their own values in favor of those held by the group.
Because of this, groups should use the three rules of management to assess whether their
organizational decisions are ethical. Since group dynamics are an increasingly vital measure of
organizational success, and standards of behavior are viewed within the context of profit and
integrity, it is imperative that the group conceptualize the impact of their decisions. To be truly
comprehensive, advisor development programs must address ethics and the role culture and values
play in ethical decision-making. Our institutions have become more diverse. This is true in regard to
easily recognizable differences, such as race and age, but also in terms of hidden differences, such as
culture and disability. Care must be given to the reexamination of values and perspective, and how
these influence so many ethical dilemmas. We must understand that values are acquired in childhood
and manifest themselves on our campuses as permanent perceptions that shape and influence the
nature of our behaviors. Values involve emotion, knowledge, thought, and ultimately choice of
response. Values vary between individuals and, because values govern behavior, they color the way
individuals view and the impact values have on choice. While values can, respond to their world. It is
important to understand and do, change over time, they represent a significant component of
personality. It is through individual values that culture is defined, and provides broad social

guidelines for desirable standards. Generally described as normal societal standards, or norms, values
influence how people make choices. we are not When working with people, it is imperative that we
appreciate that each person's intrinsic values are different. Because values are so ingrained, often
aware that our responses in life are, in large part, due to the values we hold and are unique to our own
culture and perspective. Furthermore, we seldom reflect on the fact that the people with whom we
associate hold their own unique set of values that may be different from our own. Advisors need to
be aware that, like their students, they bring their own set of values to the advising session. Thus
advisors must be aware of, and open to, these differences in values as they work within their
institution's regulations and standards. Sometimes these are, or seem to be, conflicting. Students are
often developing their decision- making processes and may question the values held by their families
and society. In our multi-cultural environment, ethical standards need to be addressed in advising
situations and in our classrooms so that conduct can be understood and ethical challenges avoided.
For example, plagiarism is an issue frequently addressed on North American campuses. We assume
that our students have a common understanding of the issues involved, and have learned the
requirements for appropriately citing sources. However students from cultures where vast
memorization is expected or knowledge is considered common ownership often do not recognize that
papers presented in our institutions must include proper citation of thoughts borrowed from others. In
"What is Ethical Behavior for an Academic Adviser?" (Buck, et al., 2001), the authors explain three
continua of moral behavior. Advisors should locate their comfort zone along each of the following
ethical continua and steer clear of either extreme: in a Neutral vs. Prescriptive. Those who operate
neutral mode are reluctant to tell students what to

do, preferring instead to let students discover the appropriate action with minimal guidance.
Encouraging vs. discouraging On the other end of this continuum, a prescriptive advisor uses the
authority of the position to express opinions and make recommendations. advisors look for ways to
give positive messages to students while withholding any criticisms. Advisors in the other extreme
look for opportunities to chastise or dwell on negative consequences of student behaviors.
Judgmental vs. Nonjudgmental. This continuum only exists within the advisor, not in the advisor's
interactions with students. Judgmental advisors scrutinize everything, accepting nothing at face
value. Nonjudgmental advisors accept what students or colleagues tell them without criticism (Buck,
et al., 2001). To be ethically successful, it is paramount that we understand and respect how values
impact our social environment. How we perceive ourselves and operate within our environment is of
such importance that institutions establish rules of ethical behavior that relate to practice. Institutions
that examine power and responsibility, and audit their ethical decisions develop employees that
function with honesty and integrity and serve their institution and community. Without the emphasis
on ethics, organizations can miss the opportunity to reinforce responsibility for their internal and
external environment. This failure can lead to an outcry of negative public opinion, or even worse,
legal issues. The measure of ethical success within institutions of higher learning has always been
important, but no more so than in today's environment of regulatory and public scrutiny. Advisors, as
a part of their institution, are accountable to it in a legal and moral sense. It is important that advisors
operate within the constraints of ethical standards. We do a disservice to ourselves, our students, our
institutions, and our profession if we do not address these issues regularly.

Post-test: 1. In making major decisions, what factors do consider significant? Why?" you 2. Being a
chief of police of a certain police station, you received an order from your higher headquarters to
clear your AOR from gambling, yet you are aware that the local executives are the mastermind
behind it, yet you are also benefiting from it since you are given a weekly SOP, how will you make
your decision? 3. What are your considerations about values in decision making? Why?

CHAPTER III MANAGEMENT AND PROCESS

This chapter presents the general concepts and processes of management in any type of organization.
Specifics will come into the picture dependent of the discipline it will be applied. Chapter Outcomes
Objectives: After completing the lesson the learners are expected to;
1. Possess management qualities;
2. be able to influence people for developmental
3. Lead men for a better community worth living for;
4. be a macro and micro management.

Pre-test:
1. what are the qualities of a productive manager? Give your justifications.
2. What is your gauge or standards for an effective manager? Why?

3. What is your perspective of a community leader that has the to maintain peace and promote
progress?

A. WHAT IS MANAGEMENT?
Management by Objectives (MBO): (By ADAM HAYES, 2021) Management by objectives (MBO)
is a strategic management model that aims to improve the performance of an organization by clearly
defining objectives that are agreed to by both management and employees. According to the theory,
having a say in goal setting and action plans encourages participation and commitment among
employees, as well as aligning objectives across the organization. According to the theory, having a
say in goal setting and action plans encourages participation and commitment among employees, as
well as aligning objectives across the organization. Management by objectives (also known as
management by planning) is the establishment of a management information system (MIS) to
compare actual performance and achievements to the defined objectives. Practitioners claim that the
major benefits of MBO are that it improves employee motivation and commitment and allows for
better communication between management and employees. non However, a cited weakness of MBO
is that it unduly emphasizes the setting of goals to attain objectives, rather than working on a
systematic plan to do so. Critics of MBO, such as W. Edwards Demming, argue that setting
particular goals like production targets leads workers to meet those targets by any means necessary,
including short-cuts that result in poor quality. In his book that coined the term, Peter Drucker set
forth several principles for management by objectives. Objectives are laid out with the help of
employees and are meant to be challenging but achievable. Employees receive daily feedback, and
the focus is on rewards rather than punishment. Personal growth and development are emphasized,
rather than negativity for failing to reach objectives.

Drucker believed MBO was not a cure-all but a tool to be utilized. It gives organizations a process,
with many practitioners claiming that the success of is dependent on the support from top
management, MBO clearly outlined objectives, and trained managers who can implement it.
MANAGEMENT BY OBJECTIVES IN PRACTICE Management by objectives outlines five steps
that organizations should use to put the management technique into practice. The first step is to either
determine or revise organizational objectives for the entire company. This broad overview should be
derived from the firm's mission and vision.
The second step is to translate the organizational objectives to employees. Drucker used the acronym
SMART (specific, measurable, acceptable, realistic, time-bound) to express the concept.
Step three is stimulating the participation of employees in setting individual objectives. After the
organization's objectives are shared with no employees, from the top to the bottom, employees
should be encouraged to help set their own objectives to achieve these larger organizational dub
objectives. This gives employees greater motivation since they have greater empowerment.
Step four involves monitoring the progress of employees. In step two, a key component of the
objectives was that they are measurable in order for employees and managers to determine how well
they are met.
The fifth step is to evaluate and reward employee progress. This step includes honest feedback on I
what was achieved and not achieved for each employee.

Advantages and Disadvantages of Management by Objectives MBO comes with many advantages
and disadvantages to a company's success. The benefits include employees taking pride in their work
with goals that they know they can achieve. It also aligns employees with their strengths, skills, and
educational experiences. MBO also leads to increased communication between management and
employees. Assigning tailored goals brings a sense of importance to employees, bringing loyalty to
the firm. And lastly, management can create goals that lead to the success of the company. ADO
Though there are plenty of benefits to MBO, there are some drawbacks and limitations. As MBO is
focused on goals and targets, it often ignores other parts of a company, such as the culture of
conduct, a healthy work ethos, and areas for involvement and contribution. MBO puts increased
strain on employees to meet the goals in a specified time frame. In addition, if management solely
relies on MBO for all management responsibilities, it can be problematic for areas that don't fit under
MBO. What is the goal of management by objectives (MBO)? MBO uses a set of quantifiable or
objective standards against which to measure the performance of a company and its employees. By
comparing actual productivity to a given set of standards, managers can identify problem areas and
improve efficiency. Both management and workers know and agree to these standards and their
objectives. Who invented MBO?: MBO was invented by Peter F. Drucker, a management consultant,
educator, and author. Drucker's 39 books have been translated into more than thirty-six languages.
What are some drawbacks of using MBO? As MBO is entirely focused on goals and targets, it often
ignores other parts of a company, such as the corporate culture,

worker conduct, a healthy work ethos, environmental issues, and areas for involvement and
contribution to the community and social good. What is the difference between MBO and
management by exception (MBE)? In MBE, management only addresses instances where objectives
or standards are transgressed. Thus, workers are left alone until and unless proficiency is not met. B.
QUALIFICATIONS OF AN EFFECTIVE MANAGER What Are the Most Important Qualifications
of Managers?(Lisa McQuerrey, 2018) Managers are charged with overseeing staff, directing various
aspects of daily business operations, and in general, ensuring that an office or business runs
smoothly. Managers may oversee entire departments or single projects, depending on the size of a
company and the scope of responsibilities. As such, it's critical that managers have certain
qualifications to help their efforts. KNOWLEDGE OF INDUSTRY 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 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.
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. 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." General
managers are sometimes called operations managers because they are responsible for the successful
day-to-day functioning of an organization. Though they may have a nice private office, they spend
most of their time visiting different parts of their facilities to encourage teamwork and efficiency.
Formal education, strong communication skills and prior experience are preferred qualifications.

Leadership qualities: General managers are often the highest-level employees in a business, and their
authority is sometimes exceeded only by chief executive officers. Being at the top of the organization
requires leadership skills. They must be able to coordinate resources, including money, time and
people. Problems must be quickly resolved and decisions made in a timely manner. They juggle
several tasks at once and hurry to meet looming deadlines. Interpersonal skills are important because
they interact with employees, vendors and customers. Finally, general managers must seamlessly
organize and direct key business operations. Additionally, successful general managers communicate
goals, standards and policies clearly and persuasively. Education and Training: Most general
managers have a bachelor's degree in business administration, management or a field related to their
work. For example, engineering executives may have an electrical engineering degree. Many also
have a Master's of Business Administration, especially if they lead large organizations. Through
college coursework and on- the-job training, general managers gain expertise in all aspects of
business, including finance, logistics, marketing and human resources. Certification is also available
from the Institute of Certified Professional Managers. While not compulsory, the Certified Manager
credential can enhance a job applicant's prospects. Practical Work Experience: A core requirement
for general managers is experience, which gives them time to learn different facets of the business.
Many start in staff and technical positions before being given tasks of increasing responsibility. They
may then be promoted to project managers, in charge of small teams, before becoming department
heads who lead larger groups responsible for specific business areas. After proving their skills and
dedication to the company, department managers may be tapped for a general manager position.

HOW TO BE AN IMPACTFUL MANAGER

Examples of Weaknesses for a Manager Position: Good managers understand that teamwork is
critical to the successful implementation and realization of organizational goals, and fulfillment of a
corporation mission statement. Managing a team well has many positive effects such as boosting
productivity in work groups. A manager has much to offer teams, in the way of experience, direction,
goal-setting, clear communication, and many other much-needed skills a team needs to be successful
in carrying out daily functions. Goals and Guidelines: A manager can offer teams goals and
guidelines so a team is confident about what is expected of them, and so that each member of a team
can take responsibility for the role they have on a team. Managers can provide clear guidelines about
a project and define what each team member should be responsible for while serving on the team.
This eliminates any confusion as to a team member's role and responsibility while on a team.
Direction and Delegation: Managers also offer direction about where a team is going. If a team is not
headed in the right direction when trying to accomplish a certain task, or when trying to meet certain
goals, a manager can steer the team back in the right direction. A manager can also delegate tasks to
individuals on the team with the appropriate skills, tasks, and experience to carry out those tasks in
the most efficient manner possible. A manager has the ability to empower team members to carry out
projects with direction and oversight without micromanaging tasks and job duties. This is an
encouraging way to boost a team's morale. COMMUNICATION with teams on a regular basis. Some
prefer daily It is also important for managers to communicate communication, while others have
weekly team meetings. These meetings provide opportunities for employees to voice their concerns,
impressions, any suggestions, or

questions they have about their roles, responsibilities or duties. can also provide valuable feedback
during these meetings or provide suggestions for improvement. These are also opportunities for
managers to share their own experiences with team members, which can help teams learn from
shared experiences and build a sense of camaraderie without compromising the manager's authority.
Offer Rewards: Managers also have the ability to offer incentives and rewards for meeting their goals
and project guidelines. This can serve as motivation for team members to work together in a positive
and productive manner. Managers can work with team members in a collaborative manner to decide
what type of reward works best to motivate each member of the team the most when deciding on a
team incentive. Good examples may include gift certificates, a lunch to a favorite restaurant, a day
off for employees on the team, a small bonus, or other incentives that team members agree on. It may
be possible for team members to select their own bonus depending on company policies. Good
managers know that morale boosting efforts will help empower teams to do their best and work
toward encouraging retention within the company. UNACCEPTABLE WORKPLACE
BEHAVIORS As the job title suggests, an assistant manager helps to keep a store, department or
team running smoothly by performing some managerial tasks, such as scheduling work times and
evaluating employee performance. Depending on the industry, she might also be responsible for
handling escalated customer queries, since assistant managers often work in a customer- facing role.
One of the main tasks is to step into the manager's shoes in the manager's absence. The role is often
seen as a steppingstone for those who wish to work their way up to a management position.

Supervise the Team: In most organizations, it's the assistant manager, rather than the manager, who
supervises and manages employees. Day-to-day, this might include organizing the team schedule,
authorizing vacations, handling staff queries and taking disciplinary action. Assistant managers are
also responsible for evaluating employee performance and arranging staff training and development
programs to plug any skill gaps. Help Unhappy Customers: In the retail and hospitality industries, an
assistant manager will be the first senior person to help an unhappy customer to their overall
satisfaction, such as organizing refunds and returns. The assistant manager will also be the first
escalation point for customer complaints. To successfully perform these duties, an assistant manager
needs to have strong interpersonal and communication skills and the ability to stay calm and polite
under pressure. Stand in for Management: Assistant managers work side-by-side with a general
manager and must be capable of "acting up" in the general manager's absence. This means she must
be familiar with the main aspects of the manager's job and be ready to perform those duties when
needed without burdening upper management. As an assistant manager, you are next in line for a
promotion to general management. Stepping up to the role, temporarily, is a good way to showcase
your abilities. Handle Employee Complaints: Most businesses have a process for employees to report
problems, whether those problems concern a scheduling conflict, pay discrepancy or an issue with
one of their co-workers. Often, the process starts by reporting the matter to the assistant manager. To
succeed in this role, you should be comfortable listening to grievances and understand the proper
channels for getting them resolved quickly and professionally

Successfully Complete Projects: Assistant managers will often lead teams on various department-
specific initiatives, acting as the project manager to ensure the successful completion of the project.
This role involves sub-tasks such as defining the scope of the project, organizing human and other
resources, developing schedules, managing budgets and preparing reports. Team leadership is key to
an assistant manager's duties. You often will be responsible for keeping open communication, so
everyone understands their objectives and goals.

10 REQUIREMENTS OF THE PERFECT MANAGER

(Alan Norton, 2012) If you could hire your next boss, what selection criteria would you use? Alan
Norton shares a make- believe want ad aimed at finding the ideal manager.

1. Be a "people person" Norxodd is people and we are looking for managers who like people. You
should be comfortable with conflict resolution. You should know how people work and know how to
motivate your team. If you are better with computers than people and understand Klingon better than
English, you are not a good fit for our managerial team. We may, however, have an opening in our
Communications Services Center and suggest you send us your resume/CV via email with the words
"ČSC MAIL ROOM" in the subject line. A good sense of humor is also a must-have attribute.

2. Be visionary Can you see the future? We need managers who can identify the next product or
service that will be in demand and bring it to life. You should be goal oriented and effectively use
your resources to "create the unusual." If your definition of "visionary" is the ability to see out a large
picture window in a corner office, you would be wise to envision your career with another company.

3. Be a good communicator You should be able to communicate effectively using all methods,
including visual presentations, public speaking, email, teleconferencing, and face-to- face. Good
communication is a two-way street. You will be required to routinely update your employees on their
and the team's performance. You will communicate any feedback from upper management and
customers and provide status information when asked. Employees will provide feedback via a
process called "Rate your boss," which will enable managers to improve their performance.

4. Be technically proficient The products we create are technically complicated. You don't' need to be
able to code in C#, but you should be able to give technical guidance and decide the best strategies
and methods for success. And no, having watched Happy Feet or the March of the Penguins does not
qualify you as technically proficient in Linux.

5. Put your employees' needs first b We need managers with a selfless attitude who are willing to fall
on their sword (figuratively not literally) to meet the needs of their staff. Climbing the corporate
ladder should come second to the needs of those working in the weeds. Our philosophy here is that
our managers succeed best by satisfying the needs of their team. For example, you will be required to
provide the tools your team needs. Each quarter, you will be given a bonus to distribute as you wish.
"Selflessness" means giving those funds to your top performers and not using them for a round of
golf with the secretary.

6. Encourage teamwork Teamwork is important. Not only are you required to encourage the best
practices for building teamwork, you are considered a part of the team. We have no doors

for you to hide behind. In fact, we have no traditional office space for managers you are required to
sit and work with your staff. You will be assisted by t secretary who will provide secretarial services
to all team members, not just to you. Just for the record, we do have doors on all conference rooms
and bathrooms, but using either as a permanent office is considered "unacceptable behavior."

7. Lead by example The best managers lead by example. All managers are required to dress and act
professionally at all times and to be available to give guidance and help when needed. Leading by
example means working late and on weekends with your employees, parking with your employees,
and using the same washroom as your employees. It's all about doing instead of pontificating -- and
doing the right thing. We consider leading your team off a cliff the wrong thing misguided lemmings
11 need not apply.

8. Treat your staff like professionals You should have the confidence in your team's proficiency to
decide most issues by themselves with only your guidance, as required. We treat every employee as a
professional who doesn't need immediate supervision. You will be looking over your workload and
not over your employees' shoulders. And isn't that a comforting thought.
9. Encourage professional growth All managers are expected to grow their skills and those of their
team members. One of our mottos is "Be more than you are." No, that motto is not displayed outside
the company cafeteria. Another of our mottos that encourages professional growth is "Keep moving
forward" -- and it is proudly displayed in the cafeteria and on the dashboard of all company vehicles.

10. Do something special Satisfying all the above criteria is not enough. You are also required to do
something special for your employees that needs guidance. We believe that life is too short not to
have a little bit of fun along the way. Most of our lives are spent sleeping, followed next by time
spent working. We therefore require our managers to create an atmosphere of fun (in the workplace
that is, not in bed). A good manager is also in the memory creation business. In the big scheme of
things, a manager who doesn't create happy memories is a failure in the game of life. The bottom line
Looking for the perfect boss can be fun. Of course, I expect you to "add" to the fun by including your
job requirements. A word of caution At one company, my team and I had the privilege of
interviewing the applicants who wanted to be our next supervisor. I emphasized that I expected our
supervisor to be available to help in any way he or she could to meet our team's objectives.
Somehow, that requirement was lost after the hire. I attribute this to the swelling of the head and the
pressure on the prefrontal cortex that often results from landing a managerial position. I've solved
that problem.

C. EFFECTIVE MANAGEMENT STYLES

Management Techniques and Leadership Strategies You Can Use Right Now Whether you're taking
your first foray into leadership or you simply want to enhance your style and tap into a new process,
here are 6 techniques that can boost t your ability to lead and improve the performance of your team.

1. Motivate, Don't Dominate It often happens that new leaders have trouble exerting power and
influence without being overbearing. An attitude of domination certainly won't help encourage your
team or help you earn trust. Instead of focusing on being controlling, focus on ways to motivate the
team to do its best. can do this by incentivizing the work each individual does; recognizing a job well
done and making each person feel like she has the power to accomplish everything you expect is far
more effective than instilling fear or worry in your employees.

2. Learn How to Listen You're more than just an authoritative figure to your team, you're also a
confidante. By listening to your employees, you can not only build up their trust, but you can also
identify legitimate problems they are having and help them find solutions."

3. Learn How to Hold People Accountable bow & You have certain expectations for your team, as
any good leader should. And if a team member doesn't live up to your reasonable expectations, there
should be a set of consequences in place. You can always start with a simple verbal warning, and
then move onto a written warning and so on depending on the regulations your company has in place.

4. Be Human Too many new leaders think they must be robotic and free of personality in order to get
respect. But your team will respect you more if you act like you. Always be professional, but don't be
afraid to let your real self show. It'll make you more relatable and trustworthy.
5. Look at Failure and Mistakes as Learning Opportunities No one looks forward to making a
mistake or failing to meet an objective, but everyone can learn from

mistakes. Second chances can encourage better work the next time around. Further, when your team
sees you applying lessons learned from errors, they will feel more comfortable and confident
working under you and learning from you.

6. Show Your Employees That They Matter There is nothing worse for motivation than working with
a dismissive leader that makes people feel unimportant. Every employee brings a necessary talent,
skill or contribution to the table -never forget that.

THE 10 GOLDEN MANAGEMENT RULES OF EFFECTIVE

Even if your job title doesn't include "manager,' there's a good chance you'll have to handle some
management duty sometime in your career. And, as an entrepreneur, you're already a manager,
because almost every one of your responsibilities has some management element to it. In short, your
employees are the ones making your vision a reality, and your job is to make sure they do it
efficiently. But being an effective manager is about more than just driving your employees to work
harder -- or more efficiently. Forcing employees to work a certain way can breed resentment, even
disloyalty, while being too soft can lead to bad habits, laziness or boredom. There's no "right"
management style, as each employee and company is going to have an individual perspective. But
there are some universally "wrong" ways to manage. Avoid them by following these 10 "golden"
rules of effective management:

1. Be consistent. This is the first rule because it applies to most of the others. Before your
management approach can be effective, it must be consistent. You must reward the same
behaviors every time they appear, same behaviors when they appear and treat every member of your
team with an equal, level-headed view. discourage the

2. Focus on clarity, accuracy and thoroughness in communication. How you communicate to your
team can dictate your eventual success. When relaying instructions, recapping meetings or just doling
out company updates, strive for the clarity, accuracy and thoroughness of your communication. This
goes for any other medium, whether that means in-person communication, email or a phone call.
Clarity, accuracy and thoroughness are the best way to avoid miscommunication and keep your team
on the same page.

3. Set the goal of working as a team. If you want your team members to work together, have them
work for something together. Setting goals just for the department or one individual breeds a limited
mentality and forces team members to remain isolated. give staffers a unified focus and purpose, to
inspire them together.

4. Publicly reward and recognize hard work. When a member of your team does something
exceptional, reward him/her with a bonus, a small trophy or even just a vocal recognition. Do this in
front of the group; it will make the intended recipient feel good and show the rest of the team that
hard work is rewarded. The only caveat goes back to rule one: Be consistent in your rewards so you
won't be seen as playing favorites.

5. Be the example. As the manager and leader, you should set an example in terms of your behavior.
If you show up late, your team will be less punctual. If you lose your temper easily, others will be
amiss in keeping their emotions in check. Strive to be your own ideal of the perfect worker,
especially in front of the team.

6. Never go with 'one-size-fits-all. Your team is comprised of individuals with unique preferences,
strengths, weaknesses and ideas. Never use the exact same approach to motivate, encourage or mold
all of them. Focus on individuals, and customize your approach to fit each one.

7. Remain transparent possible. as as Transparency shows your integrity as a leader, and builds trust
with the individual members of your team. If you lie about something, or withhold information, you
could jeopardize your relationships and the respect you command as a leader.

8. Encourage all opinions and ideas. The more people you have actively participating in discussions
and attempting to make improvements el to the organization, the better. Never chastise a team
member for voicing an opinion respectfully y even if it goes against your original vision or isn't well
thought out. Cutting someone down for voicing an opinion builds resentment, and dhen discourages
people from sharing their own new thoughts.

9. Help people enjoy work. You don't need a pool table or dress code abolition to make work fun.
You can make the workday more enjoyable with by such new elements as surprise lunch outings, a
dedicated break room or even just casual conversations with your workers. Help your people enjoy
coming to work, and they'll do their best work for you. Hoda stout am

10. Listen and ask questions. If someone doesn't agree with your management style or doesn't like the
direction of the company, don't silence that person. Listen. And ask questions of your entire dod
team: What do you think of this? How do you feel about that? This open dialogue makes it easier to
proactively identify problems and work together to create a mutually beneficial environment. It will
also make your employees feel appreciated and acknowledged.

As you'll notice, these rules leave plenty of wiggle room to apply your own personal "brand" of
leadership and management. They stand as fundamental truths, considerations and principles that
govern an effective management role rather than a strict instruction manual to success. Stay true to
these principles in addition to your own, and you'll unify your team in a rewarding and enriching
environment.

D. IMPACT OF MANAGEMENT STYLES?

How Different Management Styles affect Employee Motivation & Productivity (PAUL TOWERS,
2017) whether you manage a large team, an entire business or perhaps just one or two other people, it
is your job to make sure that the work is done. No wonder why the use of popular dispatch software
is being put into place in various businesses. Every business owner wants to get the best results from
their business and with the help of technology, this can help them reach their goals. If you are
struggling on thinking of innovative ways to effectively manage your business, it might help if you
look into something like Managed Services Diagram, just so you can get an idea as to why
productivity and management are important factors in any business. As well as this, we all know that
running a business is not always easy. But it can be a lot easier with the help of online tools such as
Evosus' all in one business management software and implementing these various management styles
within the workplace. Every business is different, so as long as you can find what works for you and
your team, that's all that matters. One of the main influencing factors in this has to be the motivation
of your employees. Employees that are lacking in motivation are less likely to be focused on their
work. They will also be less
likely to take on any challenging parts of the role or to go above and beyond what you expect from
them. What you may not realize is that your management style could be having a huge impact on
employee motivation, and employee productivity. Here are some of the ways that your own
particular approach to management could be having a detrimental effect on the motivation of your
employees. Autocratic Management Style: How Different Management Styles affect Employee
Motivation & Productivity - Autocratic This particular style of management is when there is usually
one person who has the say on any decisions that are made. There is no argument when it comes to
the decision they have made, and they will not accept suggestions. 81500 Adopting an autocratic
management style can affect employee productivity and motivation as it tends to:
✓ Create a sense of mistrust between Managers and employees not be the ideal place to foster
creative ideas from employees, nor encourage them to take ownership over their role.
✓ Make staff feels as if they are easy to replace, and not key to the company, given they are only
performing a job that has been laid out step, by step for them.
✓ Each of these management traits can impact employee motivation, and if you find yourself
adopting an autocratic management style, you ask yourself how you can empower staff to make their
own decisions and take a more proactive role in the day-to-day management of their job function.

Democratic Management Style How different management style affect Employee Motivation &
Productivity - Democratic If autocratic is a "do as I say" approach, then democratic is definitely more
geared towards everyone working in collaboration. These type of managers will be more than happy
to listen to thoughts and concerns raised by their staff, even when it comes to making a big company-
wide decision. As a result a more democratic management style typically has a more positive impact
on employee productivity and motivation by: Giving employees a sense of ownership of their day-
to-day role. Allowing the employees to feel as if they have real input into the daily operations of the
business, and to see that their voice is actually heard by management. Create an environment move
open to new ideas and innovation, or at the very least provide a platform in which they can be
discussed. While a democratic management style is often considered the best approach, there are
times, and people who don't necessarily respond well to this type of leadership. In highly regulated
industries or positions that involve a great deal of risk (i.e. working in the armed forces) it is often
worth trading employee flexibility/independent for safety and security of the team as a whole. A
laissez-faire management style is a much more casual approach to leadership. These managers
believe that an employee-led approach is the way to go, and provide minimal oversight into the day-
to-day role of their employees. Often they will encourage their staff to make their own decisions and
set their own task list. This works particular well where you have a self-motivating workforce who
have "bought into" the project as a whole
and aren't necessarily working in the role solely for financial benefit. The key benefits of the Laissez-
faire management style when it comes to employee productivity and motivation is that it can:
✓ Lead to new and innovating ideas being rapidly adopted within a company.
✓ Employees are self-motivated and work at a higher pace/intensity given their personal interest in
the tasks assigned to them. ltrow day
✓ A flexible management structure allows employees to better balance work and family
commitments which may increase employee retention rates. The United States of America has
reported that 90% is the average employee retention rate and this could be because of the flexible
structure that has been provided for the employees.
✓ While the laissez-faire approach can be a very does productive environment in some industries it
doesn't suit all employee types. Often there are people who, want direction or to simply be told what
to do. Ako In this instance adopting a laissez-faire management structure is likely to lead to a
decrease in productivity as your employees simply don't know what to do on a daily basis. At the end
of the day, your job as a management and leader within your organization is to understand your
employees, the industry and the tasks that need to be completed and then adopt the management
structure that is going to lead to the best possible outcome. In many instances you may even find
yourself taking a hybrid approach depending on the specific projects or people you manage.

How These 6 Leadership Styles Affect Performance (Jade Anderson, 2018) Leadership Styles The
leadership of a company can greatly impact on a range of aspects within the business. Poor
leadership will see poor performance and potentially even a hit to It's often said that people leave
managers, not companies, which would suggest it's clear that leadership and management styles can
have a significant impact on the culture and the performance of a company. Staff look to managers
and leaders to motivate and encourage them. Good managers will empower their employees.
Effective leaders cycle through different styles throughout the week to best engage with certain staff,
navigate a particular situation and get the desired results. It can be difficult to understand the
different styles of leadership and when to use them, but the better a leader knows which styles they
can and should use, the more effective their team will be. Here's six leadership styles and how they
affect performance:

1. Coercive. Most of the time, a coercive leadership style is not the best approach. A coercive leader
demands authority and complicity. They have a strong drive to succeed but are often negative,
critical and rarely give out praise. Good leaders shouldn't exert their authority over others, namely
because people don't appreciate being ordered what to do. This leadership style greatly affects the
team's morale and can make it difficult for employees to be honest and transparent, for fear of being
humiliated or demeaned. If employees are too afraid to voice issues, problems can arise. This type of
leadership will likely see a high turnover rate, and those who stay may eventually despise the
company. A coercive leader can often assume that money is the only motivator for people. Because
of this, an employee's job satisfaction and commitment to the company can be greatly affected.
While it's clear that this style of leadership is predominantly negative, in certain emergency situations
where quick decisions and actions need to be made, it can be helpful.

2. Pace Setter. The pacesetter generally sets high standards by leading by example. They're hard
workers, highly motivated, and constantly use initiative to try and move the company forward at a
faster and better rate. Often, they will pressure their team to do the same. While at first glance, this
might sound like a good, strong leader, it can negatively impact performance. Those who can't keep
up with the high expectations feel as though they are failing, and morale will suffer. Because
pacesetters like to move fast, they rarely stop to give feedback or encouragement, or simply point out
the things that are wrong. pacesetters will micromanage their team. This will have a negative impact
on motivation and commitment, and will also the trust within the team. As a leader, it's important to
remember the individuals in the team. Everyone is different, and will work at a different pace. so As
long as expectations are fair, moving a bit slower than the pacesetter does not always constitute poor
performance.

3. Visionary. Visionary leaders lead with their confidence, enthusiasm, and good communication
skills to create, communicate, and work towards a vision. Visionary leaders work great for a team
who need a goal to work towards but want the freedom to innovate and experiment. Visionary
leaders are also empathetic and empowering, giving those in their team the confidence to take
calculated risks and work towards a shared goal. This helps employees see how they fit into the team
and what their contributions mean in the bigger picture. What is Workplace Abuse? Great visionary
leaders also resolve conflict, which will happen when giving people freedom to innovate. And while
they promote innovation, visionary leaders still set boundaries and parameters, keeping people
accountable for their actions. This makes visionary leadership one of the most effective and positive
styles for most circumstances.

4. Democratic. Democratic leaders look to build strong teams through consensus and collective
knowledge. Teams under a democratic leader often have high levels of due to being involved in the
decision making progress. This inclusiveness keeps the morale high. fun in This leadership style is
best used when a strong direction is needed to be in place. It allows the company to move towards
goals that the whole team can get behind. However, if a consensus can't be reached, it can slow down
workflows and cause frustration. Therefore, the democratic leadership style is best used in certain
situations. For example, when the leader isn't experienced, or uncertain of what the next step should
be.

5. Coach. The coach leadership style aims to provide one-on-one, personalized feedback to help
employees improve and reach their personal goals. The coach, so to speak, encourages their team
members to try things, experiment, and to not be afraid of failure. Coaching works best when people
want to improve their weaknesses and focus on career development. A good coach leader will be
empathetic and provide constructive feedback, giving employees the confidence to improve on their
skills. This style can backfire when people don't want to be coached, or the leader is inexperienced.
This can simply feel like micromanaging, which will have negative effects.
6. Affiliate. Affiliate leaders aim to please people. This involves frequent praise and feedback and
can result in a confident, strong team. This is great for organizations that are in need of a morale
boost, team building, or to improve communication and trust. In an environment where trust is strong
and communication is open, ideas are shared easily and innovation is free to occur. The down side of
an affiliate leadership style, especially if it's the only style used, is that poor performance can go
uncorrected. This can spell disaster for the team as they can be misguided. In other circumstances, it
could frustrate a team when someone who isn't pulling their weight seemingly goes unnoticed.

Post-test:
1. Describe the so called level headed manager.
2. Is coercive management acceptable in today's generation? Why?
3. What are your measures for an effective manager? Qualify.