Chapter #1

Managers and You in the Work Place

Q#1
Roles of Managers
Everything you need to know about the roles of a manager in an organization.
Manager is responsible to integrates all the activities which are performed in an
organization.
In other words, he has to co-ordinate the talents of people working under him for
the purpose of achieving the organizational goals.
The role of a manager gets much importance than other executives in an
organization. Hence, a manager’s job is very much complex and requires some
special qualities to be a head.
According to Mintzberz the roles of a manager can be studied under the following
categories:-
1. Interpersonal Roles
2. Informational Roles
3. Decisional Roles
1. Interpersonal Roles:
There are three interpersonal roles inherent in the manager’s job. This set of roles
derives directly from the manager’s formal position. As the figurehead for his
unit, he stands as a symbol of legal authority, performing certain ceremonial duties
e.g., signing documents and receiving visitors. The manager in a leader role hires,
trains, and motivates his personnel. In the liaison role, manager interacts with
many people outside the immediate chain of command, those who are neither
subordinates nor superiors.
2. Informational Roles:
Informational roles are important because information is the lifeblood of
organizations and the manager is the nerve center of his unit. As a monitor, the
manager is a receiver and collector of information. Information is acquired through
meetings, conversations, or documentation. In the disseminator role, managers
distribute information to subordinates daily. As a spoke-person, the manager
transmits information to individuals outside the organization. This role is present in
all managerial jobs.
3. Decisional Roles:
To get the work done, managers have to make decisions. In performing the
decision-making role, managers act as entrepreneur, disturbance handler, resource
allocator, and negotiator. In playing the entrepreneurial role, managers actively
design and initiate changes within the organization. It involves some
improvements. As a disturbance handler, the manager handles difficult problems
and non-routine situations such as strikes, energy shortages etc. As resource
allocator, the manager decides how resources are distributed, and with whom he
will work most closely. The fourth decisional role is that of negotiator. Managers
negotiate with suppliers, customers, unions, individual employees, the government,
and other groups.
Q #2
What are managerial skills?
Managerial skills are the knowledge and ability of the individuals in a managerial
position to fulfill some specific management activities or tasks. This knowledge
and ability can be learned and practiced. However, they also can be acquired
through the practical implementation of required activities and tasks. Therefore,
you can develop each skill through learning and practical experience as a manager.

Robert Katz identifies three types of skills that are essential for a successful
management process:
1. Technical skills,
2. Conceptual skills and
3. Human skills.

1. Technical Skills
Technical management skills are closely related to the technical or engineering
dimension of management. They are like practical craftsmanship skills. These
skills are essential to start your company, build your products or services, and
design the systems inside the company. Here we talk about management skills
related to the mechanics of doing things.
Technical skills are not related only to machines, production tools, or other
equipment. They are also skills required to increase sales, design different products
and services, market the products and services, etc.
Technical skills are most important for first-level managers. When it comes to the
top managers, these skills are not something with a high significance level. As we
go through a hierarchy from the bottom to higher levels, technical skills lose their
importance.

2. Conceptual Skills
Conceptual skills present the knowledge or ability of a manager for more abstract
thinking. That means he can easily see the whole through analysis and diagnosis of
different states. In such a way, they can predict the future of the business or
department as a whole. Conceptual skills are vital for top managers, less critical for
mid-level managers, and not required for first-level managers. As we go from the
bottom to the top, the importance of these skills will rise.

3. Human Skills
Human management skills are related to managing critical social processes inside
the company. These interpersonal management skills present a manager’s
knowledge and ability to work with people. One of the most critical management
tasks is to work with people. Without people, there will not be a need for the
existence of management and managers.
These skills will enable managers to become leaders and motivate employees for
better accomplishments. Also, they will help them to make more effective use of
human potential in the company. They are essential skills for managers on all
hierarchical levels in the company. It includes the following skills.

 Communication Skills
 Negotiation skills.
 Conflict management skills
 Teamwork Skills
 Time Management Skills
 Adaptability Skills
 Chapter # 2
Management History Module

Q#2
Fayol's Principles of Management: The principles of management are given
below:
1. Division of work: Division of work or specialization alone can give
maximum productivity and efficiency. Both technical and managerial activities
can be performed in the best manner only through division of labour and
specialization.
2. Authority and Responsibility: The right to give order is called authority.
The obligation to accomplish is called responsibility. Authority and
responsibility are the two sides of the management coin. They exist together.
They are complementary and mutually interdependent.
3. Discipline: The objectives, rules and regulations, the policies and procedures
must be honored by each member of an organization. There must be clear
and fair agreement on the rules and objectives, on the policies and
procedures. There must be penalties (punishment) for non-obedience or
indiscipline. No organization can work smoothly without discipline -
preferably voluntary discipline.
4. Unity of Command: In order to avoid any possible confusion and conflict,
each member of an organization must received orders and instructions only
from one superior (boss).
5. Unity of Direction: All members of an organization must work together to
accomplish common objectives.
6. Emphasis on Subordination of Personal Interest to General or Common
Interest: This is also called principle of co-operation. Each shall work for all
and all for each. General or common interest must be supreme in any joint
enterprise.
7. Remuneration: Fair pay with non-financial rewards can act as the best
incentive or motivator for good performance. Exploitation of employees in any
manner must be eliminated. Sound scheme of remuneration includes adequate
financial and non- financial incentives.
8. Centralization: There must be a good balance between centralization and
decentralization of authority and power. Extreme centralization and
decentralization must be avoided.
9. Scalar Chain: The unity of command brings about a chain or hierarchy of
command linking all members of the organization from the top to the bottom.
Scalar denotes steps.
10.Order: Fayol suggested that there is a place for everything. Order or system
 alone can create a sound organization and efficient management.
11.Equity: An organization consists of a group of people involved in joint effort.
Hence, equity (i.e., justice) must be there. Without equity, we cannot have
sustained and adequate joint collaboration.
12.Stability of Tenure: A person needs time to adjust himself with the new work
and demonstrate efficiency in due course. Hence, employees and managers
must have job security. Security of income and employment is a pre-
requisite of sound organization and management.
13. Initiative: Employees allowed to originate and carry out plans will exert
high level of effort.
14. Esprit of Co-operation: Esprit de corps is the foundation of a sound
organization. Union is strength. But unity demands co-operation. Pride,
loyalty and sense of belonging are responsible for good performance.
Q#3
Contributions of the Hawthorne Experiment: Elton Mayo and his associates
conducted their studies in the Hawthorne plant of the western electrical company,
U.S.A., between 1927 and 1930. According to them, behavioural science methods
have many areas of application in management. The important contributions of the
Hawthorne Experiment are:-
1. A business organization is basically a social system. It is not just a techno-
economic system.
2. The employer can be motivated by psychological and social wants because his
behaviour is also influenced by feelings, emotions and attitudes. Thus
economic incentives are not the only method to motivate people.
3. Management must learn to develop co-operative attitudes and not rely merely
on command.
4. Participation becomes an important instrument in human relations movement.
In order to achieve participation, effective two-way communication network is
essential.
5. Productivity is linked with employee satisfaction in any business organization.
Therefore management must take greater interest in employee satisfaction.
6. Group psychology plays an important role in any business organization. We
must therefore rely more on informal group effort.
7. The neo-classical theory emphasizes that man is a living machine and he is far
more important than the inanimate machine. Hence, the key to higher
productivity lies in employee morale. High morale results in higher output.
Q#4
Major Contributions of Peter Drucker to Management

Some of the major contributions of Peter Drucker are as follows:

1. Nature of Management
Drucker is against bureaucratic management and has emphasized management
with creative and innovative characteristics. He has treated management as a
discipline as well as profession.

2. Management Functions
According to Drucker, management is the organ of its institution. It has no
functions in itself, and no existence in itself. Drucker has attached great
importance to the objective setting function and has specified eight areas where
clear objective setting is required. These are: market standing, innovation,
productivity, physical and financial resources, profitability, managerial
performance and development, worker performance and attitude, and public
responsibility.

3. Organization Structure
Drucker has decried bureaucratic structure because of its too many dysfunctional
effects. He has emphasized three basic characteristics of an effective organization
structure are:
i. enterprise should be organized for performance;
ii. it should contain the least possible number of managerial
levels;
iii. it must make possible the training and testing of tomorrow’s top
managers responsibility to a manager while still he is young.

4. Federalism
Drucker has advocated the concept of federalism. Federalism refers to centralized
control in decentralized structure. He has emphasized the close links between the
decisions adopted by the top management on the one hand and by the autonomous
unit on the other. This is just like a relationship between federal government and
state governments.

5. Management by Objectives
Management by objectives (MBO) is regarded as one of the important
contributions of Drucker to the discipline of management. He introduced this
concept in 1954. MBO includes method of planning, setting standards,
performance appraisal, and motivation. According to Drucker, MBO is not only a
technique of management but it is a philosophy of managing.

6. Organizational Changes
Drucker has visualized rapid changes in the society because of rapid technological
development. Though he is not resistant to change, he feels concerned for the rapid
changes and their impact on human life. Normally, some changes can be absorbed
by the organization but not the rapid changes.
 Chapter # 3
Decision Making
What is Group Decision-Making?
Group decision-making is a process where a group of individuals collectively make
a decision. The decision is usually reached through discussion and consensus. This
type of decision-making is often used in business settings, as it allows for multiple
perspectives to be considered before a final decision is made.

Group Decision-Making Techniques

There are a large variety of group decision-making techniques that can be used.
The most important part of using any technique is to ensure that all members of the
group are comfortable with the technique and that it is appropriate for the decision
that needs to be made. Some commonly used techniques include the nominal group
technique, the Delphi technique, and brainstorming.

1. Nominal Group Technique

The nominal group technique is a structured way of collecting ideas from a group
of people. As with other group decision-making techniques, it is often used when a
group needs to generate new ideas or when there is a need to reach a consensus on
an issue. The nominal group technique involves group members generating and
submitting their ideas in a written form, followed by a step of discussion and
clarification, and finally a vote. This technique can be beneficial as it allows all
members of the group to have their say without the pressure of speaking in front of
others. It can also be helpful in reducing conflict in case of situations where just a
few individuals dominate the discussion.

The steps involved in the nominal group technique are as follows:

 The facilitator explains the purpose of the meeting and the topic that will be
discussed.
 Each member of the group is given a set amount of time to generate ideas on
the topic. This can be done individually or in small groups.
 All of the ideas are then written down. The ideas are then submitted and
shared with the group.
 The group then discusses each of the ideas and decides which ones should be
further explored.
 The group then secretly votes on the ideas that they believe are the most
important.
Example:
Top executives at a corporation are attempting to decide how much money to offer
the owners of another company to buy them out. To decide this, each individual
executive writes down an amount of money on a piece of paper. Then a brief
discussion is had to debate the strengths and weaknesses of the various offers.
Then the final decision is made by secret ballot. The offer that receives the most
votes is the one that is ultimately made to the owners of the company.

2. Delphi Technique
The Delphi technique involves the use of surveys to collect information from a
group of experts. The experts are typically asked to provide their opinions on
various questions or an overall topic anonymously. These answers are then
compiled and shared with the group. After this, the process may be repeated with
the experts being asked to consider the answers that were given and revise their
own opinions. This process is repeated until there is a consensus amongst the
experts.

The Delphi technique can be an extremely effective group decision-making tool as

it allows for a large amount of information to be collected from experts without the
need for face-to-face discussion. This can be beneficial when the experts are
located in different parts of the world or when there is a need to collect confidential
information. The anonymity factor can also encourage experts to provide honest
opinions without the fear of negative repercussions. This technique is commonly
used in business, particularly in the development of new products. It can be
especially effective at creating large amounts of alternative solutions, developing
new ideas, gathering large amounts of expert opinions, and seeking additional
information.

Example:
A marketing manager at a cell phone company has been trying to come up with
new advertising ideas for a new cell phone. The marketing manager has already
sent the company's advertising analysts two surveys about the advertising
campaign and decides to use the answers to create a third survey. The marketing
manager then sends the third survey to the analysts and uses their answers to arrive
at a consensus about the best advertisements to use.
 3. Brainstorming
Brainstorming is a technique that is often used to generate many new ideas
quickly. It can be used when a group needs to come up with an extensive list of
ideas or when there is a need to find a creative solution to a problem.
Brainstorming can be an effective tool as it allows all members of the group to
share their ideas in an open and non-judgmental setting. The rules of brainstorming
are as follows:

 All members of the group must participate.

 No idea should be rejected outright.
 The goal is centered around the generation of the maximum number of ideas.
 All ideas should be written down.
 No discussion or critiquing of ideas is allowed during the brainstorming
session.

Example:
The analysts at a marketing company are meeting to discuss ideas for a new
campaign for an important client. The facilitator leading the discussion advises the
analysts not to criticize any new ideas at this point and to allow all members of the
group to share their thoughts freely. After several minutes of brainstorming, the
group generates a large number of potential ideas for the campaign. The group can
then start to discuss and evaluate the ideas that have been generated.
 Chapter # 3
Decision Making

Decision Making Process

The decision making process is presented in the figure below:

Specific Objectives Identification of Search for Evaluation of

Problems alternatives alternatives

Results Action Choice of alternatives

Fig: Decision Making Process

Specific Objective: The need for decision making arises in order to achieve
certain specific objectives. The starting point in any analysis of decision
making involves the determination of whether a decision needs to be made.

Problem Identification: A problem is a felt need, a question which needs a

solution. Inthe words of Joseph L Massie "A good decision is dependent upon the
recognition of the right problem". The objective of problem identification is that
if the problem is precisely and specifically identifies, it will provide a clue in
finding a possible solution. A problem can be identified clearly, if managers go
through diagnosis and analysis of the problem.

Diagnosis: Diagnosis is the process of identifying a problem from its signs and
symptoms. A symptom is a condition or set of conditions that indicates the
existence of a problem. Diagnosing the real problem implies knowing the gap
between what is and what ought to be, identifying the reasons for the gap and
understanding the problem in relation to higher objectives of the organization.

Analysis: Diagnosis gives rise to analysis. Analysis of a problem requires:

 Who would make decision?
 What information would be needed?
 From where the information is available?
  Analysis helps managers to gain an insight into the problem.
Search for Alternatives: A problem can be solved in several ways; however,
all the ways cannot be equally satisfying. Therefore, the decision maker must
try to find out the various alternatives available in order to get the most
satisfactory result of a decision.

A decision maker can use several sources for identifying alternatives:

 His own past experiences
 Practices followed by others and
 Using creative techniques.

Evaluation of Alternatives: After the various alternatives are identified, the

next step is to evaluate them and select the one that will meet the choice
criteria. The decision maker must check proposed alternatives against limits,
and if an alternative does not meet them, he can discard it. Having narrowed
down the alternatives which require serious consideration, the decision maker
will go for evaluating how each alternative may contribute towards the
objective supposed to be achieved byimplementing the decision.

Choice of Alternative: The evaluation of various alternatives presents a clear

picture as to how each one of them contribute to the objectives under question.
A comparison is made among the likely outcomes of various alternatives and the
best one is chosen.
Action: Once the alternative is selected, it is put into action. The actual process of
decision making ends with the choice of an alternative through which the objectives
can be achieved.

Results: When the decision is put into action, it brings certain results. These results
must correspond with objectives, the starting point of decision process, if good
decision has been made and implemented properly. Thus, results provide indication
whether decision making and its implementation is proper.