Management Functions and Behaviour

Dear all this book is an effort to bring the ease in understanding of the management concepts for the MBA students or management graduates.

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ContentsI

Task of a Professional Manager Responsibilities of a Professional Manager Management Systems and Processes Managerial Skills

Organizational Contexts of Decisions Decision Making Models Problem Solving Decision Making-Techniques and Processes Management by Objectives

Organizational Structure and Managerial Ethos Management of Organizational Conflicts Managing Change

Organizational Structure and Design Managerial Communication Planning Process Controlling Delegation and Interdepartmental Coordination

Analyzing Interpersonal Relations Leadership Leadership Styles and Influence Process Group Dynamics Professional Management Task and Responsibilities

Subject Introduction:

In 21st century the market has become more complex and the task of managers has become more tedious. The product life cycle is shrinking day by day and today’s decisions are tomorrow’s absolute waste, hence the job of a manager becomes more challenging. In this fierce competition only those survive who fit themselves with the ever changing and dynamic environment.

This book is designed and written as an introductory text for the MBA students.

Following three attributes characterize the book as a suitable text for the MBA students and guidelines for the practical aspects of management.

BREADTH: this book covers all the aspects of management functions. This book also covers all the essential aspects of the topics included.

DEPTH: this book is strategically to cover the academic grounds of managerial functions. It also emphasizes important theoretical concepts and frameworks. It also provides conceptual guidelines to solve the practical problems.

RELEVANCE: we have tried to provide the suitable and relevant examples after every concept.

Unit 1: Role of a manager.

Contents:

Introduction,

What is Management?

Manager’s role in an organization

Professional managers and their role

Responsibilities of professional managers

What skills should the managers have to make an organization successful.

What is Management System and process?

Introduction:

Management is an art of getting things done or in other language it is an ability of a manager to get the tasks achieved through the team of people working under/with him. Management involves four main functions the managers must do are: Planning, Organizing, Staffing and Leading and Controlling.

According to Lakshmi Gopal Krishnan what managers learn quickly is: A large part of success in any manager’s job is developing good interpersonal skills. Managers must be technically proficient in their area of expertise. A manager in order to be successful must have good interpersonal skills to work with others.

Before we discuss the role of managers we should have a brief about what management is?

Many management Gurus Say “Management is an Art of getting things done with the help of people.”

Another definition of Management is “it is an organizational process of Planning, Organizing, Staffing, Directing/Leading, Coordinating and Controlling”.

The functions of management are nothing but the management process which would be discussed later in this unit.

WHAT MANAGERS DO IN THE ORGANIZATION?

Managers are the individuals who achieve goals through other people- Robinson

Managers, generally said, get things done through other people. It is true but how?

It is as follows,

They take decisions; allocate resources, and direct activities of people towards the achievement of organizational goal.

According to Henri Fayol managers perform five important functions viz. Planning, Organizing, Commanding, Coordinating and Controlling.

Some other management Gurus Have also their say as managers perform multiple activities in the organization like planning, decision making, staffing, leading and directing, coordinating and controlling.

ROLE OF MANAGER:

Figure 1.1

Provide Information Process information Use Information

MANAGERS

Interpersonal Informational Decisional

Figurehead Leader Liaison

Monitor Disseminator Spokesperson

Entrepreneur Disturbance Handler Resource Allocator Negotiator

ROLE OF MANAGER: MINTZBERG

The above figure is based on the Henry Mintzberg’s study at MIT. According to him the managers role can be categorized under three heads:

1. Interpersonal

2. Informational

3. Decisional

Interpersonal Role:

Managers perform the following three interpersonal roles to keep interpersonal relations like;

When manager represents the organization in all events and matters and has number of routine duties to perform, this role is called figurehead role. For example greeting the dignitaries visiting the organization during the organizational functions, delegating the authority, taking the important customer for a lunch or dinner etc.

When the manager motivates and encourages his employees to undertake new projects or to perform the current tasks effectively and efficiently he performs the role of leader.

When the manager tries to retain contacts with outsiders like media people or people at higher level than him to collect or give information useful for the organization, he performs the role of liaison.

Informational Role:

Manager receives and gathers information from his colleagues, friends, outsiders, or from other sources. The interpersonal role helps him get the vital information for decision making. In Informational role manager has to perform the following three roles:

Monitor: Receive wide variety of information, Serves as nerve centre of internal and external environment of the organization. The manager has to scan the environment for the information. He often uses his contacts to gather the information and monitor it.

Disseminator: the manager then passes the information to his subordinates, colleagues, superiors etc who would not get this particular information.

Spokesman: he serves as an expert on organization. He informs various groups of people who have major impact on the organization and its policies. He also advises shareholders about the financial position of the company, meeting the government needs.

Decisional Role:

In this role the manager is obligated to take certain important decisions about the company policies, financial decisions, law and legislation etc. In this role the manager performs the following four roles.

Entrepreneur: Manager searches the information in the company’s environment about the new opportunities and initiates new projects.

Disturbance handler: he takes certain important decisions regarding the employee grievances and certain unpredicted or unexpected shortcomings in the organization. Manager is responsible for the corrective decisions when the company faces unexpected disturbances.

Resource Allocator: in this role manager divides work and delegates the authority. Manager has knowledge about the resources and he tries to utilize the resources to the extent possible. His role is to allocate right resource at right time.

Negotiator: he is responsible for representing the organization at major negotiations.

Managerial Skills:

The manager has to undertake multiple tasks in the organization and therefore he should have good technical knowledge, good communication skills, he should have sound concepts so as to design the new tasks for his subordinates.

According to Robert L. Katz the managers must have following three skills:

Technical skills, Human skills, and Conceptual skills.

The manager’s levels in the organization determine the relative importance of these skills.

Following figure depicts the relative importance of these skills at the various levels of management.

Figure 1.2: Management Skills.

Top level

Middle level

Lower level

Conceptual skills

Human Skills

Technical Skills

Technical Skills: these skills encompass the ability to apply specialized knowledge or expertise.

These skills involve knowledge of machinery running in the plant computer knowledge, manufacturing, accounting etc.

Technical skills are important at lower level of management as these managers have to deal with the employees working at plant level. The manager’s understanding of the job contributes significantly to the technical skills of the manager.

For example, in the construction of fly over the management may have different technical skills from the manager who is constructing a building for the purpose of office.

Human Skills: the managers ability to work with employees and to understand them, interact effectively with them, motivate the employees at the time of difficulty, manage the people at different levels all together contribute to the human skills that a manager has.

Many people are proven to be inefficient because of lack of interpersonal skills though they have good technical knowledge, they might be poor listeners, they might not be good communicators, and they may not be able to handle the conflicts etc. human skills are equally important at all levels of management.

Conceptual Skills: conceptual skills are the mental ability of the manager to analyze and anticipate the complex situations. Managers working at top level have a high level of conceptual skills as they have to take major decisions. Decision making requires managers to identify the problem, develop alternative solutions, evaluate these alternatives, and select the best one. The managers have to understand the interconnections among various subunits and visualize the organization on a broader perspective.

What are the tasks of a professional manager?

Specialization in every field, technological advancement, globalization of business results into appointment of qualified managers. They can be called as professional managers.

A professional manager is an expert, trained and experienced enough to adeptly manage any type of organization be it a manufacturing house, a service organization, a hospital or a government agency. Professional managers:

Are objective focused and performance oriented. Help in meeting competitive challenges of business.

Are creative and dynamic.

Follow management practices based on worldwide experiences and information.

Apply theories of management to solve emerging organizational problems.

Some Professional Manager TasksProviding direction to the firm: The first task, envisioning goals, is one of the tasks that should never be delegated. This is the ability to define overarching goals that serve to unify people and focus energies. It’s about effectively declaring what’s possible for the team to achieve and compelling them to accomplish more than they ever thought possible.

Managing survival and growth: Ensuring survival of the firm is a critical task of a manager. The manager must also seek growth. Two sets of factors impinge upon the firm’s survival and growth. The first is the set of factors which are internal to the firm and are largely controllable. These internal factors are choice of technology, efficiency of labor, competence of managerial staff, company image, financial resources, etc. The second set of factors are external to the firm like government policy, laws and regulations, changing customer tastes, attitudes and values, increasing competition, etc.

Maintaining firm’s efficiency: A manager has not only to perform and produce results, but to do so in the most efficient manner. The more output a manager can produce with the same input, the greater will be the profit.

Meeting the competition challenge: A manager must anticipate and prepare for the increasing competition. Competition is increasing in terms of more producers, products, better quality, etc.

Innovation: Innovation is finding new, different and better ways of doing existing tasks. To plan and manage for innovation is an on-going task of a manager. The manager must maintain close contact and relation with customers. Keeping track of competitor’s activities and moves can also be a source of innovation, as can improvements in technology.

Renewal: Managers are responsible for fostering the process of renewal. Renewing has to do with providing new processes and resources. The practices and strategy that got you where you are today may be inadequate for the challenges and opportunities you face tomorrow.

Building Human Organization: Man is by far the most critical resource of an organization. A good worker is a valuable asset to any company. Every manager must constantly look out for people with potential and attract them to join the company.

Leadership: Organizational success is determined by the quality of leadership that is exhibited. "A leader can be a manager, but a manager is not necessarily a leader," says Gemmy Allen (1998). Leadership is the power of persuasion of one person over others to inspire actions towards achieving the goals of the company. Those in the leadership role must be able to influence/motivate workers to an elevated goal and direct themselves to the duties or responsibilities assigned during the planning process. Leadership involves the interpersonal characteristic of a manager's position that includes communication and close contact with team members. The only way a manager can be acknowledged as a leader is by continually demonstrating his abilities.

Change management: A manager has to perform the task of a change agent. It’s the managers task to ensure that the change is introduced and incorporated in a smooth manner with the least disturbance and resistance.

Selection Information technology: Today’s managers are faced with a bewildering array of information technology choices that promise to change the way work gets done. Computers, the Internet, intranets, telecommunications, and a seemingly infinite range of software applications confront the modern manager with the challenge of using the best technology.

ExampleA professional manager or a chief administrative officer for a city has duties which include meeting with elected council to determine polices that are determined by the council and to notify council members and citizens about the local government operations. Discussing of certain reforms, installing a bridge, setting up new traffic plans, or proposing a new building-all these and many more things which can affect community life are some of the responsibilities of the professional manager in a township. He is also responsible for preparing the annual budget, presenting it to elected officials for sanction and then implementing it, after it is approved. Listening to citizen grievances with regards to administration, civic problems, law and order and presenting the matter to the elected officials for appropriate actions are some of the tasks of a professional manager who is in charge of the administration of a city

Management Process:

According to several management gurus Management is a creative problem solving process.

The functions of management constitute the management process. Hence the functions of management are Planning, Organizing, Staffing, Coordinating and Controlling.

The management process start with planning and ends with effective control over what has planned and what has implemented.

Figure 1.3: Management Process

PLANNING

ORGANIZING

CONTROLLING

STAFFING

COORDINATICOORDINATINGNG

PLANNING: “A process that includes defining goals, establishing strategy, and developing plans to coordinate activities.”- Stephen Robbins.

It is also defines as the future of today’s decisions. It is the fundamental function of management from which the other functions stem up. Planning is the function which determines what to do and how to do and when to do. It is looking ahead and preparing for the future. It is the process of deciding the business objectives and charting out the methods of attaining those objectives. It is the function performed at all levels of management viz. top, middle and lower level of management.

ORGANIZING: it is the activity of determining what tasks are to be done, who is to do them, how these tasks are to be grouped, who reports to whom, and where decisions are to be made. Managers are also responsible for designing the organization structure; this process is referred to as organizing. In other words organizing is establishing the internal organizational structure of the business. This function focuses on division, coordination, control of tasks and the flow of information within the organization. The manager’s job is to allocate the resources at right place at right point of time. The resources like raw material, tools, capital, personnel are very much cost intensive hence the proper organization of resources is must.

STAFFING: It is the process of recruiting, selecting, hiring and training of employees. Today the business is very complex and the performance level of the business is supposed to be increased. To improve the performance the organization needs efficient staff to carry out the complex business tasks. The success of the organization depends on the people working in the organization; hence this becomes the important function of management. The success of staffing depends largely on the planning and organizing functions of management.

It is important to know that different objectives require different kinds of organization to achieve them. For example the organization structure for R&D would be different from that for Marketing.

COORDINATING: It is the process of establishing the coordination among the resources and people. Coordinating function includes manager’s tasks to lead the people, direct them to do the tasks according to the plan, motivate the employees as and when required. The proper coordination among the various departments in the organization or in the different organization structures is the key to success of the organization. No organization wants to bear the cost of wastage of time, material and output therefore establishment of proper

communication channel is required to establish the coordination among the people/ departments.

CONTROLLING: It is the process of monitoring activities to ensure they are being accomplished as planned and correcting any significant deviations. It involves the following four activities:

1) Establishing standards of performance

2) Measuring current performance

3) Comparing it against the established standards

4) Taking corrective actions if the set standards are not achieved.

In the absence of sound control, the objectives of the organization cannot be accomplished and the management tends to commit more mistakes rather than minimizing them and improving the performance. Control compels events to confirm to plans.

Systems Approach to Management DefinedThe systems approach to management is based on general system theory – the theory that says that to understand fully the operation of an entity, the entity must be viewed as a system. This requires understanding the interdependence of its parts.

Subsystems

Subsystem is a system created as part of the process of the overall management system. A planning subsystem increases the effectiveness of the overall management system.

Management System

The management system is composed of a number of parts that function interdependently to achieve a purpose.

The management system is an open system. It interacts with its business environment. Environmental factors with which the management system interacts include customers, suppliers, competitors, and government. Each of these factors can significantly change the future of the management system.

Example:

The objectives of Canon Production System (CPS) are to manufacture better quality products at lower cost and deliver them faster.Canon invited all their employees to suggest ideas for improvement and developed 6 Guidelines for the Suggestion System to make it most effective. The company developed also a list of 9 wastes to help their employees become

problem-conscious, move from operational improvement to systems improvement, and recognize the need for self-development.

7-S Model

The 7-S model is a framework for analyzing organizations and their effectiveness. It looks at the seven key elements that make the organizations successful, or not: strategy; structure; systems; style; skills; staff; and shared values. To be effective, your organization must have a high degree of fit or internal alignment among all the seven Ss. All Ss are interrelated, so a change in one has a ripple effect on all the others. Thus, to improve your organization, you have to pay attention to all of the seven elements at the same time. The 7-S model is a tool for managerial analysis and action that provides a structure with which to consider a company as a whole, so that the organization's problems may be diagnosed and a strategy may be developed and implemented.

Shared Values

Shared values are commonly held beliefs, mindsets, and assumptions that shape how an organization behaves – its corporate culture. Shared values are what engender trust. They are an interconnecting center of the 7Ss model. Values are the identity by which a company is known throughout its business areas, what the organization stands for and what it believes in, it central beliefs and attitudes. These values must be explicitly stated as both corporate objectives and individual values.

Structure

Structure is the organizational chart and associated information that shows who reports to whom and how tasks are both divided up and integrated. In other words, structures describe the hierarchy of authority and accountability in an organization, the way the organization's units relate to each other: centralized, functional divisions (top-down); decentralized (the trend in larger organizations); matrix, network, holding, etc. These relationships are frequently diagrammed in organizational charts. Most organizations use some mix of structures - pyramidal, matrix or networked ones - to accomplish their goals.

Strategy

Strategies are plans an organization formulates to reach identified goals, and a set of decisions and actions aimed at gaining a sustainable advantage over the competition.

Systems

Systems define the flow of activities involved in the daily operation of business, including its core processes and its support systems. They refer to the procedures, processes and routines that are used to manage the organization and characterize how important work is to be done. Systems include:

Business System

Business Process Management System (BPMS)

Management information system

Innovation system

Performance management system

Financial system/capital allocation system

Style

"Style" refers to the cultural style of the organization, how key managers behave in achieving the organization's goals, how managers collectively spend their time and attention, and how they use symbolic behavior. How management acts is more important that what management says.

Staff

"Staff" refers to the number and types of personnel within the organization and how companies develop employees and shape basic values.

Skills

"Skills" refer to the dominant distinctive capabilities and competencies of the personnel or of the organization as a whole.

The success story:

Dhirubhai Ambani

Born: December 28, 1932

Achievements: Dhirubhai Ambani built India's largest private sector company. Created an equity cult in the Indian capital market. Reliance is the first Indian company to feature in Forbes 500 list

Dhirubhai Ambani was the most enterprising Indian entrepreneur. His life journey is reminiscent of the rags to riches story. He is remembered as the one who rewrote Indian corporate history and built a truly global corporate group.

Dhirubhai Ambani alias Dhirajlal Hirachand Ambani was born on December 28, 1932, at Chorwad, Gujarat, into a Modh family. His father was a school teacher. Dhirubhai Ambani started his entrepreneurial career by selling "bhajias" to pilgrims in Mount Girnar over the weekends.

After doing his matriculation at the age of 16, Dhirubhai moved to Aden, Yemen. He worked there as a gas-station attendant, and as a clerk in an oil company. He returned to India in 1958 with Rs 50,000 and set up a textile trading company.Assisted by his two sons, Mukesh and Anil, Dhiru Bhai Ambani built India's largest private sector company, Reliance India Limited, from a scratch. Over time his business has diversified into a core specialization in petrochemicals with additional interests in telecommunications, information technology, energy, power, retail, textiles, infrastructure services, capital markets, and logistics.Dhirubhai Ambani is credited with shaping India's equity culture, attracting millions of retail investors in a market till then dominated by financial institutions. Dhirubhai revolutionized capital markets. From nothing, he generated billions of rupees in wealth for those who put their trust in his companies. His efforts helped create an 'equity cult' in the Indian capital market. With innovative instruments like the convertible debenture, Reliance quickly became a favorite of the stock market in the 1980s.In 1992, Reliance became the first Indian company to raise money in global markets, its high credit-taking in international markets limited only by India's sovereign rating. Reliance also became the first Indian company to feature in Forbes 500 list.Dhirubhai Ambani was named the Indian Entrepreneur of the 20th Century by the Federation of

Indian Chambers of Commerce and Industry (FICCI). A poll conducted by The Times of India in 2000 voted him "greatest creator of wealth in the century".

Contents Organizational Contexts of Decisions Decision Making Models Problem Solving Decision Making-Techniques and Processes Management by Objectives

Organizational Contexts of Decisions

Do decision makers carefully assess the problem, identify criteria, evaluate the best one, and find the optimum solution to the problem? If yes the decisions are rational if no then what?

In the real life situation people usually tend to find the acceptable or reasonable solution to their problem rather than the optimum one. Decision makers want to have quick decisions rather than time taking ones.

According to a decision making expert “Most significant decisions are made by judgment, rather than by a defined perspective model.”

The following paragraphs depict “How most decisions in organization actually made? “

Bounded Rationality:

Bounded rationality means making decisions by constructing simplified models that extract the essential features from problems without capturing all their complexities.

When faced with complex problem, most people respond by reducing the problem to a level at which it can be readily understood. This is because the limited information- processing capability of human beings makes it impossible to assimilate and understand all the information necessary to optimize. So people seek those solutions that are satisfactory and sufficient.

The capacity of the human mind for formulating and solving complex problems is too small to meet the requirements for full rationality; individuals operate within the confines of bounded rationality. They prefer to construct simplified models that extract the essential features from problems without capturing all the complexity.

In bounded rationality the decision maker will identify a limited list of more conspicuous choices. These are the choices that are easy to find and tend to be highly visible. In most cases they will represent familiar criteria and previously tried-and- true solutions. Once this set of limited alternatives is identified, the decision maker will begin reviewing them. But the review

will not be comprehensive, not all the alternatives will be carefully evaluated. Instead the decision maker will begin with alternatives that differ in small degree from the choice currently in effect. Following along familiar and well worn paths, the decision maker proceeds to review alternatives only until he or she identifies an alternative that is good enough-one that meets an acceptable level of performance. The first alternative that meets the “good enough” criterion ends the search. So the final solution represents the satisfying choice rather than the optimal one.

Case at point:

Operating within the confines of bounded rationality, Rose Marie Bravo revitalized the British retailer Burberry Group PLC when she became CEO. Based on her retail experience as a president of Saks in the United States, Bravo decided to capitalize on Burberry’s quality heritage and trademark plaid design as the solution to the company’s stagnant growth. She repositioned Burberry as a global luxury retailer by opening stores around the world, running a celebrity campaign with female supermodel Ben Grimes to redefine the brand’s image as hip for the younger generation, and by using the plaid design on new lines of swimwear, footwear, and children’s clothing.

Common Bias and Errors:

Decision makers engage in bounded rationality, but an accumulating body of research tells us that decision makers allow systematic biases and errors to creep into their judgments. Following are the errors and biases tend to creep in the decisions.

Overconfidence Bias: it’s been said that no problem in judgment and decision making more prevalent and more potentially catastrophic than overconfidence. From organizational point of view on of more interesting findings related to overconfidence is that those individuals whose intellectual and interpersonal abilities are weakest are most likely to overestimate their performance and ability. So as managers and employees become more knowledgeable about an issue, the less likely they are to display overconfidence. And overconfidence is most likely to surface when organizational members are considering issues and problems outside their area of expertise.

Anchoring Bias: The anchoring bias is a tendency to fixate on initial information, from which we then fail to adequately adjust for subsequent information. The anchoring bias occurs because our mind appears to give disproportionate amount of emphasis to the first information it receives. So initial impressions, ideas, prices, and estimates carry undue weight relative to information received later.

Confirmation Bias: The tendency to seek out information that reaffirms past choices and to discount information that contradicts past judgments.

Availability Bias: The tendency of people to base their judgments on information that is readily available to them. Events that have happened recently contribute to the decisions.

Representative Bias: Assessing the likelihood of an occurrence by inappropriately considering the current situation as identical to ones in past. For example managers frequently predict the performance of a new product by relating it to a previous product’s success in the market.

Escalation of commitment: An Escalation of commitment refers to staying with a decision even when there is clear evidence that it’s wrong. For example consider a company is producing toothpaste which is not really performing well in the market bur still they continue it because of the thinking “we have invested a lot into this plant” Escalation of commitment has obvious implications for managerial decisions. Many organizations have suffered huge losses because of manager was determined to prove his original decision was right by continuing to commit resources to what was a lost cause from the beginning.

Randomness Error: The tendency of individuals to believe that they can predict the outcome of random events.

Winner’s Curse: A decision-making dictum that argues that the winning participant in an auction typically pay too much for winning the item. It is competitive bidding.

Hindsight Bias: The tendency for us to believe falsely that we’d have accurately predicted the outcome of n event, after that outcome is actually known.

Simple processes for problem-solving and decision-making

Problem solving and decision-making are important skills for business and life. Problem-solving often involves decision-making, and decision-making is especially important for management and leadership. There are processes and techniques to improve decision-making and the quality of decisions. Decision-making is more natural to certain personalities, so these people should focus more on improving the quality of their decisions. People that are less natural decision-makers are often able to make quality assessments, but then need to be more decisive in acting upon the assessments made. Problem-solving and decision-making are closely linked, and each requires creativity in identifying and developing options, for which the brainstorming technique is particularly useful. See also the free SWOT analysis template and examples, and PEST analysis template, which help decision-making and problem-solving. SWOT analysis helps assess the strength of a company, a business proposition or idea; PEST analysis helps to assess the potential and suitability of a market. Good decision-making requires a mixture of skills: creative development and identification of options, clarity of judgment, firmness of decision, and effective implementation. For group problem-solving and decision-making, or when a consensus is required, workshops help, within which you can incorporate these tools and process as appropriate. Here are some useful methods for effective decision-making and problem-solving: First a simple step-by-step process for effective decision-making and problem-solving.

Decision-making process1. Define and clarify the issue - does it warrant action? If so, now? Is the matter urgent,

important or both. See the Pareto Principle. 2. Gather all the facts and understand their causes.

3. Think about or brainstorm possible options and solutions. (See brainstorming process)

4. Consider and compare the pros and cons of each option - consult if necessary - it probably will be.

5. Select the best option - avoid vagueness or 'foot in both camps' compromise.

6. Explain your decision to those involved and affected, and follow up to ensure proper and effective implementation.

Decision-making maxims will help to reinforce the above decision-making process whether related to problem-solving or not, for example:

"We know what happens to people who stay in the middle of the road. They get run down." (Aneurin Bevan)

"In any moment of decision the best thing you can do is the right thing, the next best thing is the wrong thing, and the worst thing you can do is nothing." -Theodore Roosevelt

JFDI - Just Frigging Do It (polite version).The decision-maker’s motto. There are usually several right answers when you are faced with a complex decision. When you've found the best solution you can find, get on with it, make it work, and it most probably will.

Pros and cons decision-making method

Another simple process for decision-making is the pros and cons list.

Pro means 'for', and con means 'against'. In other words, advantages and disadvantages.

This method also applies to all sorts of problem-solving where issues and implications need to be understood and a decision has to be made.

Some decisions are a simple matter of whether to make a change or not, such as moving, taking a new job, or buying something, selling something, replacing something, etc. Other decisions involve number of options, and are concerned more with how to do something, involving a number of choices. Use the brainstorming process to identify and develop options for decision-making and problem-solving.

1. First you will need a separate sheet for each identified option. 2. On each sheet write clearly the option concerned, and then beneath it the headings

'pros' and 'cons' (or 'advantages' and disadvantages', or simply 'for' and 'against'). Many decisions simply involve the choice of whether to go ahead or not, to change or not; in these cases you need only one sheet.

3. Then write down as many effects and implications of the particular option that you (and others if appropriate) can think of, placing each in the relevant column.

4. If helpful 'weight' each factor, by giving it a score out of three or five points (e.g., 5 being extremely significant, and 1 being of minor significance).

5. When you have listed all the points you can think of for the option concerned compare the number or total score of the items/effects/factors between the two columns.

6. This will provide a reflection and indication as to the overall attractiveness and benefit of the option concerned. If you have scored each item you will actually be able to arrive at a total score, being the difference between the pros and cons column totals. The bigger the difference between the total pros and total cons then the more attractive the option is.

7. If you have a number of options and have complete a pros and cons sheet for each option, compare the attractiveness - points difference between pros and cons - for each option. The biggest positive difference between pros and cons is the most attractive option.

8. N.B. If you don't like the answer that the decision-making sheet(s) reflect back to you, it means you haven't included all the cons - especially the emotional ones, or you haven't scored the factors consistently, so re-visit the sheet(s) concerned.

You will find that writing things down in this way will help you to see things more clearly, become more objective and detached, which will help you to make clearer decisions.

Pros and cons weighted decision-making template - example

This example weighs the pros and cons of buying a new car to replace an old car.

The weighted pros and cons are purely examples - they are not in any way suggestions of how you should make such a decision. Our decision-making criteria depend on our own personal situations and preferences. And your criteria and weighting will change according to time, situation, and probably your mood too.

Use whatever scoring method you want to. The example shows low scores but you can score each item up to 10, or 20 or 100 - whatever makes sense to you personally. Or you can use an 'A/B/C' or three-star scoring method, whatever works for you.

Should I replace my old car with a new one?

pros (for - advantages) score cons (against - disadvantages) score

better comfort 3 cost outlay will mean making sacrifices 5

lower fuel costs 3 higher insurance 3

lower servicing costs 4 time and hassle to choose and buy it 2

better for family use 3 disposal or sale of old car 2

better reliability 5 big decisions like this scare and upset me

4

it'll be a load off my mind 2

total 6 pros 20 total 5 cons 16

In the above example, on the basis of the pros and cons and the weighting applied, there seems to be a clear overall (and quantifiable) advantage in the decision to go ahead and buy a new car.

Notice that with this decision-making method it's even possible to include 'intangible' emotional issues in the pros and cons comparison, for example 'it'll be a load off my mind', and 'decisions scare and upset me'.

A decision-making pros and cons list like this helps remove the emotion which blocks clear thinking and decision-making. It enables objectivity and measurement, rather than reacting from instinct, or avoiding the issue altogether. Objective measurement helps in making a confident decision.

The total weighted scores are the main deciding factor rather than the total number of pros and cons, although there is not a scientific 'right' or 'wrong' way to consider the total number of pros and cons compared with the total weighted scores.

If the weighted scores are indicating a decision which makes you feel uncomfortable, then check your weightings, and also check that you've not missed out any factors on either side of the table.

If the decision makes you feel uncomfortable and this is not reflected in the table, then add it as a factor and give it a score.

Seeking feedback or input from a trusted neutral friend can be helpful in confirming your factors and their scores.

Blank pros and cons decision-making template

You should be able to cut and paste this template into a text editor or spreadsheet. Add more rows as required.

question/decision/option:

pros (for - advantages) score cons (against - disadvantages) score

totals totals

BrainstormingBrainstorming is an effective way to open up the decision-making process, by stimulating a team to initially look at the broad picture and then focus on the most important issues. In order to come to a conclusion, brainstorming requires structure and rules, such as:1. Agree upon the purpose of the session.2. Set a time limit to the brainstorming session.3. Create broad categories, then condense and refine them.4. Analyze possibilities through quick pros and cons decision making.5. Prioritize your results.6. Agree upon specific actions and create a timetable for enactment.7. Finally, follow up.

PEST and SWOT AnalysisA PEST analysis (political, economic, social, and technological) creates an assessment of a market and competitors from a proposition or business' viewpoint. A SWOT analysis (strengths, weaknesses, opportunities, threats) assesses a business or proposition. A PEST analysis is usually performed before a SWOT. With both procedures, you create a chart with four sections labeled with the respective attributes. For example, in a SWOT analysis, the decision makers list the business' strengths, weaknesses, opportunities and threats, and then review the results to help them draw conclusions and present necessary initiatives.

Other Decision-Making ToolsA number of techniques have been developed around various aspects of decision making. Some of the most popular ones include:* Pareto analysis (also known as the 80-20 rule), which helps to focus on the most important changes to make.* The stepladder technique, which allows for better group decisions. * Cost/benefit analysis, in order to determine if something is worth the expense. * Grid analysis, used when a number of factors enter in to the decision-making process.* Force field analysis, which analyzes the pressures asserted for and against a change.

There are many more decision-making techniques, some more effective for the precise decision you are trying to make.

Decision making models

Rational Decision Making Model:

The person who makes consistent, value maximizing decisions within specified constraints is supposed to be rational decision maker. The rational decision making model is a six step model as mentioned below:

1) Define the problem

2) Identify and design the criteria that will be important in solving the problem

3) Allocate weights to the criteria

4) Develop the alternatives

5) Evaluate the alternatives

6) Select the best alternative

The model begins by defining the problem. The problem exists when there is a discrepancy between an existing and a desired state of affairs.

Once the decision maker identifies the problem he needs to identify the decision criteria that will be important in solving the problem.

The criteria identified are rarely of equal importance; hence the third step is to weight the previously identified criteria.

The fourth step requires the decision maker to develop the possible alternatives that could succeed in resolving the problem.

Once the alternatives have been generated the decision maker must critically analyze and evaluate each one of the alternatives. This is done by rating each alternative according to the importance and relevance of the alternative.

The final step in this model is to select the best alternative as a decision.

Assumptions of the model:

The model works with some of the assumptions mentioned beneath:

1) The problem is clear and unambiguous.

2) The decision maker can identify all the alternatives and is aware of all the consequences of each alternative.

3) The criteria are ranked and weighted to reflect their importance

4) Decision criteria are constant and the weights assigned to them are stable over time.

5) No time Constraint

Another model is bounded rationality which is mentioned in organizational context of decision making.

MANAGEMENT BY OBJECTIVES

What is MBO?

Management by objectives (MBO) is a systematic and organized approach that allows management to focus on achievable goals and to attain the best possible results from available resources.

It aims to increase organizational performance by aligning goals and subordinate objectives throughout the organization. Ideally, employees get strong input to identify their objectives, time lines for completion, etc. MBO includes ongoing tracking and feedback in the process to reach objectives.

Management by Objectives (MBO) was first outlined by Peter F. Drucker in 1954 in his book 'The Practice of Management'. In the 90s, Peter Drucker himself decreased the significance of this organization management method, when he said: "It's just another tool. It is not the great cure for management inefficiency... Management by Objectives works if you know the objectives, 90% of the time you don't."

MBO managers focus on the result, not the activity. They delegate tasks by "negotiating a contract of goals" with their subordinates without dictating a detailed roadmap for implementation. Management by Objectives (MBO) is about setting your objectives and then breaking these down into more specific goals or key results.

The MBO style is appropriate for knowledge-based enterprises when your staff is competent. It is appropriate in situations where you wish to build employees' management and self-leadership skills and tap their creativity, tacit knowledge and initiative.

Setting Objectives: guidelines

In Management by Objectives (MBO) systems, objectives are written down for each level of the organization, and individuals are given specific aims and targets. "The principle behind this is to ensure that people know what the organization is trying to achieve, what their part of the organization must do to meet those aims, and how, as individuals, they are expected to help. This presupposes that organization's programs and methods have been fully considered. If they have not, start by constructing team objectives and ask team members to share in the process."

"The one thing an MBO system should provide is focus", says Andy Grove who ardently practiced MBO at Intel. So, have your objectives precise and keep their number small. Most people disobey this rule, try to focus on everything, and end up with no focus at all.

For Management by Objectives (MBO) to be effective, individual managers must understand the specific objectives of their job and how those objectives fit in with the overall company objectives set by the board of directors. "A manager's job should be based on a task to be performed in order to attain the company's objectives... the manager should be directed and controlled by the objectives of performance rather than by his boss."

The managers of the various units or sub-units, or sections of an organization should know not only the objectives of their unit but should also actively participate in setting these objectives and make responsibility for them.

The review mechanism enables leaders to measure the performance of their managers, especially in the key result areas: marketing; innovation; human organization; financial resources; physical resources; productivity; social responsibility; and profit requirements.

However, in recent years opinion has moved away from the idea of placing managers into a formal, rigid system of objectives. Today, when maximum flexibility is essential, achieving the objective rightly is more important.

Figure: Process of MBO.

Benefits of MBO

1) Improvement of management through results oriented planning.

2) Clarification of organizational goals, structures, delegation of authority according to the results expected of the people occupying the roles.

3) Encouragement of personal commitment to their own and organizational goals.

4) Development of effective controls, measuring results, leading to corrective actions.

Failures of MBO

1) Failure to teach the philosophy of MBO is one of the weaknesses of certain programs

2) Failure to give guidelines to goal setters is often another problem.

3) There is also difficulty in setting verifiable goals with the right degree of stretch or pull.

4) Emphasis on short run goals can be done at the expense of the longer range health of the organization

5) The danger of inflexibility can make managers to hesitate to change objectives even if a changed environment would require such adjustments.

Contents:

1) Organizational culture

2) Management of Organizational Conflicts3) Managing Change

4) Resistance to change

Organizational culture:

The organizational culture is one system which defines the organization as a unique organization, which differentiates the organization from others. Google, Microsoft, apple etc are the corporations which are known for their culture and climate. It provides directions to employees. A strong culture additionally provides stability to an organization.

Definition:

Organizational culture refers to a system of shared meaning held by members that distinguishes the organization from other organizations. The system is a set of characteristics that the organizations value.

Characteristics of good organizational culture:

1) Innovation and risk taking: organizational culture encourages the ability of employees to innovate and take a risk of innovations, investments etc.

2) Attention to details: a good organizational system teaches the employees to pay attention to every minute aspect of data.

3) Outcome orientation: the degree to which management focuses on results or outcomes rather than on the techniques and processes used to achieve those outcomes.

4) People orientation: the degree to which management decisions take into consideration the effect of outcomes on people within the organization

5) Team orientation: the degree to which work activities are organized around teams rather than individuals.

6) Aggressiveness: the degree to which people are aggressive and competitive rather than easy going.

7) Stability: the degree to which organizational activities emphasis maintaining the status quo in contrast to growth.

Figure: layers of organizational culture.

Dominant Culture: A culture that expresses the core values that are shared by a majority of the organization’s members.

Subculture: Minicultures within an organization typically defines by department designations and geographical separation.

Core Values: The primary or dominant values that are accepted throughout the organization.

Functions of organizational culture:

Organizational culture performs number of functions in an organization. Some of them are as mentioned below:

1) It creates the distinction between one organization and others.2) It conveys a sense of identity for organization members3) Culture facilitates the generation of commitment to something larger than one’s

individual self-interest.4) It enhances the stability of the social system.

Formation of organizational culture:

Figure: formation of organizational culture.

Philosophy of founders:

The founders of an organization traditionally have a major impact on that organizations early culture. They have a vision of what the organization should be. They are unconstrained by previous customs or ideologies. Founders hire and keep only employees who think and the same way they do.

Selection of criteria:

The explicit goal of selection process is to identify and hire individuals who have the knowledge, skills, and abilities to perform the jobs within the organization successfully. More than one candidate will be identified who meets any given job’s requirements. When that point is reached, it would be naive to ignore the fact that the final decision as to who is hired will be significantly influenced by the decision maker’s judgment of how well the candidate will fit into the organization. This attempt to ensure a proper match, whether purposely or inadvertently, results in the hiring of people who have values essentially consistent with those of organization, the selection process provides the information to applicants about the organization. Candidates learn about the organization and if they perceive a conflict between their values and those of the organization. Selection becomes two way process allowing employer or applicant to abrogate a marriage if there appears to be mismatch. The selection process sustains an organization’s culture by selecting out those individuals who might attack or undermine its core values.

Top management

The actions of top management also have a major impact on organization’s culture. Through what they say and how they behave, senior executives establish norms that filter down through the organization as to whether risk taking is desirable, how much freedom managers should give their employees what is appropriate dress, what actions will pay off in terms of pay rises, promotions, and other rewards, and the like.

Socialization:

No matter how good a job the organization does in recruiting and selection, new employees are not fully indoctrinated in the organization’s cultures. Because they are unfamiliar with the organization’s culture, new employees are potentially likely to disturb the beliefs and customs that are in place. The organization will therefore want to help new employees adapt to its culture. This adaptation process is called socialization.

Figure: Socialization process. Socialization process outcome

Socialization process is made up of three stages: prearrival, encounter, and metamorphosis.

Prearrival Stage: each individual arrives with a set of values, attitudes, and expectations. These cover both work to be done and the organization. This stage encompasses all the learning occurs before new member joins the organization.

Encounter Stage: in second stage the new employee sees what organization is really like and confronts the possibility that expectations and reality may diverge. Here the individual confronts the possible dichotomy between expectations about the job and the reality.

Metamorphosis: in this stage the relatively long lasting changes take place. The new employee masters the skills required for the job successfully performs the new roles and makes the adjustments to the work group’s values and norms. Successful metamorphosis should have a positive impact on new employees’ productivity and their commitment to the organization and reduce their propensity to leave the organization.

Conflict:

One of the problems in organizational conflict is that the term has been defined in many ways by academics and managers. But despite the divergent meanings the term has acquired , several common themes which underlie most definitions. A few definitions are reproduced below:

According to Gray and Starke- “conflict is behavior by person or group that is designed to inhibit the attainment of goals by another person or group. This purposeful inhibition may be active or passive.”

R w woodman defines conflict “as any situation in which incompatible goals, attitudes, emotions or behaviors lead to disagreement or opposition between two or more parties.”

K w Thomas defines conflict as “a process that begins when one party perceives that another party has negatively affected or is about to negatively affect, something the first party cares about.”

According to b Kabanoff,” conflict refers to a disagreement, opposition, or struggle between two or more individual or groups. It results from incompatible influence attempts between and within individual, groups or organizations.”

From the above definitions we can state that the conflict most commonly arises from four circumstances:

1. Conflict can occur when individuals or group perceive they have mutually exclusive goals or values.

2. Behavior designed to defeat, reduce or suppress an opponent may cause conflict.3. Groups that face each other with mutually opposing action and counter actions cause conflict,

and4. If each group attempts to create a relatively favoured position vis-à-vis the other, conflict may

ensue.

Today, originations may face greater potential for conflict than ever before. The market place, with its increasing competition and globalization, magnifies difference among people in terms of personally values, attitudes, perceptions, languages, cultures and nation.

Outcomes of conflicts:

Not all conflicts are bad. In fact, some types of conflicts encourage new solutions to problem and enhance the creativity in the organizations. In these cases, managers will want to encourage the conflict. Functional conflicts are conflicts that hinder group and improve its performance. There are also conflict that hinder group performance these are dysfunctional or destruction forms of conflict. Therefore, managers should stimulate functional conflict and prevent or resolve non-dysfunctional conflict. This is the key to conflict management.

Positive consequences Negative consequences

1. Leads to new ideas.

2. Stimulates creativity

3. Motivates change.

4. Promotes organizational vitality.

5. Helps individual and groups establish identities.

6. Serves as a safety valve to indicate problems.

1. Diverts energy from work.

2. Threatens psychological well-being.

3. Wastes resources.

4. Creates a negative climate.

5. Breaks down group cohesion.

6. Can increases hostility and aggressive behaviors.

1. Functional conflict: some conflicts support the goals of the group and improve its performance; these are functional, constructive disagreements between two or more people. Functional conflict can produce new ideas, learning ad growth among individuals. When they engage in constructive conflict, they develop a better awareness of themselves and others.

2. Dysfunctional conflict: there are conflicts that hinder group performance, and are therefore known as dysfunctional or destructive forms of conflict. Dysfunctional conflict is an unhealthy, destructive disagreement between two or more people .a key for recognition a dysfunctional conflicts is that its origin is often emotional or behavioral. Disagreements that involve personalized anger and resentment directed at specific individuals rather than specific ideas are dysfunctional. In dysfunctional conflict, the losses to both parties may exceed any potential gain from the conflict.

The demarcation between functional and dysfunctional conflict is neither clear nor precise. The criterion that differentiates functional and dysfunctional conflict group performance. Since groups exist to attain a goal or goals, it is the impact the conflict has on the group, rather than on any individual member, that determines functionality. The manager must look at the issue, the context, and the parties involved.

Sources of organizational conflict: prominent among the sources of conflict in organizations are:

1. Line and staff competition: the growth of highly specialized, creative, well-educated staff poses unique problems for line managers. Faced with a growing dependence on staff, line managers must adjust to a reduction in organizational power and prestige. Conflict in most organizations persists between line and staff because it is virtually impossible to define precisely the responsibility and authority relationships between the two.

2. Organization-individual disagreements: from one perspective, the conflict between the organization and the individual centers around the individual’s failure to fulfill the organization’s expectations regarding productivity or compliance with rules. From another, the conflict is often seen as resulting from excessive organizational demands. Such conflict may be overt or hidden from view, depending on the perception each side has of the power of the other.

3. Overlapping responsibility: organizations constantly change in response to personnel turnover, expansion, contraction, the adoption of new policies, changes in external environment, and so on. As a result, it is impossible to establish job responsibilities once and for all. When a change occurs, one person reaches out to assume more responsibility, another retrenches and still another tentatively assumes responsibility for certain function without knowing definitely who should be performing them. Thus, the stage is set for conflict.

4. Functional interdependence: conflicts between an organization’s functional units, such as sales, accounting and manufacturing are commonplace. Although departments are separated on the basis of function, they can never function as completely autonomous units. They must somehow resist the constant urge to view the organization in terms of their narrow self-interests.

5. Personality clashes: individual differences in such personal qualities s values, attitudes and personality traits are often the cause of conflict. Two managers may learn to despise each other thoroughly for reason totally unrelated to their work, but their performance on the job may suffer because of it.

6. Disagreement over goals: conflict among managers is often caused by the fact that there is poor agreement over goals. Perhaps, an even more common source of conflict is the clash of the personal goals of managers and employees with goals of the organization.

7. Bottlenecks in the flow of work: a bottleneck at any point can prevent the line supervisors from being effective and is quite naturally an occasion for interpersonal conflict.

Levels of conflict or forms of conflict

We can analyze the effects if conflict from five different perspectives. They are:

1. Intra- individual or interpersonal conflict: this refers to conflict within an individual about which work activities to perform. An individual may experience.

(a) Cognitive conflict: an intellectual discomfort created by trying to achieve incompatible goals.

(b) Affective conflict: occurs when competing emotions accompany the incompatible goals and result in increased stress, decreased productivity or decreased satisfaction for the individual.

There are several types of intrapersonal conflict, including inter-role intra-role and person- role conflicts.

Inter-role conflict: occurs when a person experiences conflict among the multiple roles in his or her life. One inter-role conflict that many employees experience is work/home conflict, in which their role as worker clashes with their role as spouse or parent.

Intra-role conflict: is conflict within a single role. It often arises when a person receives conflicting message from role senders about how to perform a certain role.

Person-role conflict: occurs when an individual in a particular role is expected to perform behaviors that clash with his or her values.

2. Inter –individual conflict: when two individual disagree about issues, actions, or goals and where joint outcomes become important, there is inter-individual conflict. Inter-individual or interpersonal conflict often arises from difference in individuals’ status, perception and orientations. Such conflict may motivate individuals to reveal additional relevant issues or it may prevent any further communication. To further complicate matters, some individuals are more likely to engage in conflict than others.

To manage interpersonal conflict, it is helpful to understand power networks in organizations, defense mechanisms exhibited by individuals and ways of coping with difficult people.

Power networks: according to mastenbrock, individuals in organizations are organized in three basic types of power networks.

The first relationship is equal versus equal, in which there is a horizontal balance of power among the parties. The behavioral tendency is the focus on a win loses approach to problems and each party tries to maximize its power at the expense of the other party.

The second power network is a powerful versus a less powerful relationship. Conflicts that merge here take the basic form of the powerful individual trying to control others, with the less powerful individuals trying to become more autonomous.

The third power network is high versus middle versus low. Two particular conflicts are evident for middle managers: role conflict, in which conflicting expectations are placed on the manager from bosses and employees, and role ambiguity in which the expectation of the boss and unclear

Defense mechanism: when individuals are involved in conflict with other human beings, frustration often results. Defense mechanisms are common reactions to the frustration that accompanies conflict.

Aggressive mechanisms are aimed at attacking the source of the conflict. Some of these are fixation, displacement and negativism.

Compromise mechanisms are used by individuals to make the best of a conflict situation. Compromise mechanisms in clued compensation, identification and rationalization.

Withdrawal mechanisms are exhibited when frustrated individuals try to flee from a conflict using either physical or psychological means.

Coping with difficult people: many interpersonal conflicts arise, when one person finds another person’s behavior uncomfortable, irritating or bothersome in one way or another.

3. Individual-group conflict: in organizations, there are two important situations where individuals find themselves in conflict with groups. The first situation is one in which an individual is violating group norms. The reason for this conflict is that groups have a greater ability to block an individual’s goal achievement that the other way around. Only in usual cases will a individual be able to mobilize the resources to block the group’s movement toward its goals.

The second case of individual-group conflict is one in which subordinates of one boss collectively disagree with a course of action the boss wants to take. A conflict exist s here because the subordinates are blocking the goal achievement plans of the boss. Although the boss can exercise formal authority to suppress this type of conflict, this is generally an unwise course, since subordinates often find a way to retaliate.

4. Inter-group conflict: this involves conflict between groups of people, irrespective of the size of the group. Included in this category, therefore, is interdepartmental conflict with organizations. Inter group conflict exist between or among. Such conflicts can be traced to competing goals, competition for limited resources, cultural differences, power discrepancies and attempts to preserve the groups’ separate identities.

5. Organizational level conflict: conflict can also exist between organizations. The amount of conflict may depend in the extent the organizations create uncertain conditions for competitors, suppliers, or; encourage communication; attempt to balance power in the marketplace; and develop procedures for resolving existing conflict.

Conflict management strategies

Manager have at their disposal a variety of conflict management styles: avoiding , accommodating, competing, compromising and collaborating. The away they handle conflict depends on the degree to which they seek to satisfy their own concerns (assertiveness) and the degree to which they try to satisfy the other person’s concerns (cooperativeness).

1. Avoiding: managing a conflict with as avoiding strategy involves just what the terms sounds like: not seeking to meet your own objectives or the objectives of the other person. Avoiding is a style low on both assertiveness and cooperativeness. Avoiding is a deliberate decision to take no action on a conflict or to stay out of a conflict situation.

2. Accommodating: in as accommodating strategy, one person attempts to satisfy another person’s objectives. Appropriate situations for accommodating include those when you find you are wrong, when you want to let the other party have his or her way. Accommodating is cooperative but unassertive.

3. Competing: a competing strategy involves attempting to win, with the presumption that others will lose. Under this strategy, you want to satisfy your own interest and are willing to do so at the other party’s expense. Competing is a style that is very assertive and uncooperative.

4. Compromising: in a compromising strategy, the parties reach a mutually acceptable solution in which each person get only part of what he or she wanted. Often, this means the parties decide to “split the difference”. The compromising, because each party must give up something and cooperativeness to reach a solution to the conflict.

5. Collaborating: this strategy seeks to make everyone winner. Working towards collaborating involves an open and thorough discussion of the conflict and arriving at a solution that is satisfactory to both parties. Collaborating is a win-win style that is high on both assertiveness and cooperativeness.

Organizational change:

Organizational change refers to a modification or transformation of the organization’s structure, processes or goods. Flexibility requires that organizations be open to change in all areas, including the structure of the organization itself. In a flexible organization, employees can’t think of their roles in terms of a job description. They often have to change the tasks they perform and learn new skills. The most flexible organizations have a culture that (a) values change, and managers who know hoe to implement changes effectively.

Forces for change in organizations:

More and more organizations today face a dynamic and changing environment that in turn requires these organizations to adapt. Changes have become the norm in most organizations. Plant closing, business failures, mergers and acquisition, and downsizing have become common experiences for most organizations. Adaptiveness, flexibility and responsiveness are terms used to describe organizations that will succeed in meeting the competitive challenges that businesses face. In the past, organizations could succeed by claiming excellence in one area-quality, reliability or cost. But this is not the case today. The current environment demands excellence in all areas.

“We live in the midst of constant change” has become a well –worn but relevant cliché. Pressures for changes are created both inside and outside the organization. Organizations must forge ahead on these forces to survive. Some of these are external, arising from outside the company, whereas others are internal arising from sources within the organization.

1. External forces: when the organization’s general or task environment changes, the organization’s success often rides on its ability and willingness to change as well. The modern manager is change conscious and operating in the constantly changing environment. Many external changes bombard the modern organizations and make change inevitable. The general environment has social, economic, legal, political and technological. Any of these can introduce the need for change. In recent years, far-reaching forces for change have included developments in information technology, the globalization of competition, and demands that organizations take greater responsibility. Technological changes: rapid technological innovation is a major force for change in

organizations, and those who fail to keep pace can quickly fall behind. It is perhaps the greatest factor that organizations reckon with. According to c. handy,” the rate of technological changes is greater today than any time in the past and technological changes are responsible for changing the nature of jobs performed at all levels in the organization”.

Technological innovations bring about profound change because they are not just changes in the way work is performed. Instead, the innovation process promotes associated changes in work relationships and organizational structures. Sophisticated information technology is making also making organizations leads to flatter structure, decentralized decision making and more open communication between leaders and team members.

Globalization: the global economy means competitors are likely to come from across the ocean. The power players in the global market are the multinational and trans-national organizations. This has led companies to think globally. There are no longer any mental distinctions between domestic and foreign operations. Globalization of an organization means rethinking the most efficient ways to use resources, disseminate and gather information and develop people. It requires not only structural changes in the mind of employees. Successful organizations will be the ones that can change in response to the competition. They will be fast on their feet, capable of developing new product rapidly and getting them to market quickly.

Social and political changes: a firm’s is also influenced by such environment pressures as social and political changes. Many new legal provisional in the corporate sector get introduced every time, which affects organizations.

Workforce diversity: related to globalization is the challenge of workforce diversity. Workforce diversity is a powerful force for change in organizations. The demographic trends contributing to workforce diversity are:

The workforce will see increased participated from females, as the majority of new workers will be female.

The workforce will be more culturally diverse than ever (part of this is attribute to globalization).

The workforce is aging. There will be fever young worker and more middle aged workers.

Management ethical behavioral: employees face ethical dilemmas in their daily work lives. The need to manage ethical behavior has bought about several changes in organizations. Most centre on the idea that an organization must create a culture that encourages ethical behavior. Society expects organizations to maintain ethical behavior both internally and in relationship with other organizations. Ethical behavior is expected on relationships with customer, or they may come in the form of increased legal requirements.

These are challenges are forces that place pressures to change in the organizations. Organizations cannot afford to be rigid and inflexible in the wake of environment pressures, rather they must be dynamic and viable so that they survive.

2. Internal forces: besides reacting to or anticipating changes on the outside, an organization may change because someone on the inside thinks a new way of doing things will be beneficial or even necessary. Pressures for change that signals indicating that something needs to be altered –these formal are discussed below.

Changes in management personnel: one of the most frequent reason for major changes in an organization is the change of executives at the top. No two managers have the same styles, skills or managerial philosophies. Managerial behavior is always selective so that a newly appointed manager might favor different organization design, objectives, procedures and policies than a predecessor. Changes in the managerial personnel are thus a constant pressure for change.

Declining effectiveness: declining effectiveness is a pressure to change. A company that experiences losses is undoubtedly motivated to do something about it. Some companies react by institution layoffs and massive cost cutting programmes, whereas other view the loss as symptomatic of an underlying problem, and seek out the cause of the problem.

Changes in work climate: changes in the work climate at an organization can also stimulate changes. A workforce that seems lethargic, unmotivated, and dissatisfied is a symptom that must be addressed. This symptom is common in organizations that have experienced layoffs. Workers who have escaped a layoff may find it hard to continue to be productive. They may fear that they will be laid off as well and may feel insecure in their jobs.

Deficiencies in the existing system: another internal pressure for organization change is the loopholes in the system. These loopholes may be unmanageable spans of control, lack of coordination between departments, lack of uniformity in policies, non-cooperation between line and staff etc.

Crisis: a crisis is also may stimulate change in an organization; strikes or walkouts may lead management to change the wage structure. The resignation of a key decision maker is one crisis that causes the company to rethink the composition of its management team and its role in the organization.

Employee expectations: changes in employee expectation also can trigger change in organization. These forces may be:

Employees’ desire to share in decision-making. Employees’ demand for effective organizational mechanism. Higher employee expectation for satisfying jobs and work environment Employees’ desire for higher wages.

Forms of change

Change has become the norm in most organizations. Adaptiveness, flexibility and responsiveness are terms used to describe the organizations that will succeed in two basic form of change to meet the competitive challenges that business face. There are two basic forms of change in organizations:

1) Planned Change: Planned change is change resulting from a deliberate decision to alter the organization. It is an intentional, goal oriented activity.

2) Unplanned Change: Not all changes are planned. Unplanned change is imposed on the organization and is often foreseen. Responsiveness to unplanned change requires tremendous flexibility and adaptability on the part of organizations.

Change Agents:

Internal change agent: internal to the organization, managers, employees, board of directors etc.

External change agent: people or factors external to the organization.

Resistance to change

Organizational Structure and Design Managerial Communication Planning Process Controlling Delegation and Interdepartmental Coordination

Organizational Structure and DesignA number of writers have pointed out the importance of an organization’s structure and the relationship between it and an organization’s size, strategy, technology, environment and culture.DEFINITIONS OF ORGANIZATIONAL STRUCTUREMullins (1993) and Mabey, Salaman & Storey (2001) describe the structure of an organization as the pattern of relationships between roles in an organization and its different parts. They see the purpose of this structure as serving to allocate work and responsibilities in order to direct activities and achieve the organization's goals. Structure enables managers to plan, direct, organize and control the activities of the organization.“An organization's structure is the architecture both visible and invisible which connects and weaves together all aspects of an organization’s activities so that it functions as a complete dynamic entity.”Organizational structure - the formal framework by which job tasks are divided, grouped, and coordinated.– Organizational design - process of developing or changing an organization’s structure.

Organizational structure: DepartmentationThe organizations are grouped on the basis of following points: • Functional - Groups’ jobs by functions performed

• Product - groups jobs by product line

• Geographical - groups jobs on the basis of territory or geography

• Customer - groups jobs on the basis of common customers

Functional Departmentalization

Grouping activities according to the functions of an enterprise embodies what enterprises typically do. In this approach the departmentalization is done according to the functions of management or managers. The functional Departmentation is the most widely employed basis for organizing activities and is present in almost every enterprise. The coordination of activities may be achieved through rules and procedures, various aspects of planning, the organizational hierarchy. Etc.

Advantages of Functional Departmentation1) It is logical reflection of functions 2) Maintains power and prestige of major functions3) Easy to understand and establish the coordination.4) Follows principle of occupational specialization5) Simplifies training6) Furnishes means of tight control.

Disadvantages of Functional Departmentation1) De-emphasis of overall organizational objectives2) Overspecialization narrows viewpoints of key personnel3) Slow adaptation to changes in environment4) Responsibilities of profit are at top only5) Limits development of general managers

Plant manager

Manager Marketing

Manager Human

Resource

Manager Purchasing

Manager

Finance

Manager

Production

Departmentation on the basis of Product:Grouping of activities on the basis of products or product lines has been growing in the multiline, large scale enterprises. Companies adopting this form of Departmentation were organized by enterprise function. With growing complexity in the manager’s job because of the growth of company the reorganizing on product basis became necessary. Enterprises now have more than one product. The organizational structure is as shown in the following figure.

President

Manager Retail AccountsManager recreational utility and vehicle sector

Manager Rail Product’s sector

Mass transit division

Bombardier- Rotax (Vienna)

Recreational products

Logistic Equipment

Industrial Equipment

Bombardier – Rotax Gunskirchen)

Advantages:

1) Places attention and effort on product line

2) Facilitates use of specialized capital, facilities, skills and knowledge.

3) Permits growth and diversity of products and services

Disadvantages:

1) Requirement of more people with general management abilities

2) Tends to make maintenance of economical central services difficult

3) Presents increased problem at top management control.

Geographic Departmentation:

Departmentation on the basis of territory is rather common in enterprises that operate over wide geographic areas. Large scale firms use this kind of Departmentation. The Geographic Departmentation is as shown in the following figure.

Advantages:

1) Places responsibilities at a lower level

2) Places emphasis on local markets and problems

3) Improves coordination in a region

4) Takes advantage of economies of local operations

5) Better face to face communication with local interests

6) Furnishes measurable training ground for general managers

Disadvantages:

1) Requires more persons with general manager abilities.

2) Tends to make maintenance of economical central services difficult and may require services such as personnel or purchasing at the regional level.

3) Increases problem of top management control.

V.P sales

Sales director western region

Sales director Eastern region

Sales director Southern

region

Sales director Northern

region

Customer Departmentation

Grouping activities so that they reflect a primary interest in customers is common in a variety of enterprises. Customers are the key to the way activities are grouped when each of the different things an enterprise does for them is managed by one department head. It is as shown in the following figure.

Advantages:

1) Encourages concentration on customer needs

2) Gives customers feeling that they have an understanding supplier

3) Develops expertness in customer area

Disadvantage:

1) May be difficult to coordinate operations between competing customer demands

2) Requires managers and staff expert in customers’ problems

3) Customer groups may not always be clearly be clearly defined

MATRIX ORGANIZATION:

President

Community-city Banking

manager

Real estate mortgage

loans manager

Corporate banking manager

Agricultural banking

Institutional banking

Matrix Structure assigns specialists from different functional departments to work on projects led by project managers• adds vertical dimension to the traditional horizontal functional departments• creates a dual chain of command This type of organizational structure violates unity of command. Project managers have authority in areas relative to the project’s goals. Functional managers retain authority over human resource decisions (e.g., promotions)

The following figure gives an idea about Matrix organizational structure.

This is a matrix organization of an aerospace firm.

Managerial Communication

Communication is the most important factor in everybody’s life. In an organization the flow of information is a continuous process. The faster the information passes from one person to another the better is the organization. Communication applies to all phases of management, it is important for planning, organizing, leading and controlling. In other words communication is the life line for all the functions of management.

Communication can be defines as “the transfer of information from sender to the receiver through a specific medium in a way that is understood by the receiver.”

Communication process:

From the above definition, it’s quite clear that the communication is a process of transfer of information from one person to another through a medium. Following figure illustrates the process of communication.

Figure: communication process.

The communication process starts with a sender and ends when he message is understood by the receiver. If receiver fails to understand the message sent by sender the process of communication is incomplete.

The Sender:

Communication begins with the sender who has a thought or an idea which is then encoded in a way that can be understood by both the sender and receiver. In other words the sender who has an idea encodes the idea in a language that is understood by both of them.

Use of medium or channel:

The information is transmitted over a channel or a medium which links with the receiver. The message may be oral or written and may be transmitted through a computer, telephone, mail, telegram, television or any other medium. Since many channels are available, each with certain advantages and disadvantages, the proper selection of channel is vital for effective communication.

The Receiver:

The receiver is the person whom the message is sent or initiated. The receiver has to be ready for the message so that it can be decoded into thought. The next step in the communication process is decoding in which the receiver converts the message in thoughts or the ways he understands the message. Proper communication can happen only when both sender and receiver interpret the message in same language or same thought. Understanding is in the minds of both the sender and the receiver persons with closed minds will normally not understand the message completely.

Feedback in communication process:

Feedback is the reply by the receiver to sender whether he has understood the message or not. To check the effectiveness of communication person must have feedback.

Communication in the Organization:

In any organization communication flows in various directions, the direction in which the message is sent constitutes the form of organizational communication. Depending upon the flow of information the communication in the organization may be of the following types:

1) Upward

2) Downward

3) Horizontal

4) Crosswise

Upward communication

Upward communication travels from subordinates to superiors and continues up the organizational hierarchy. This flow is hindered by managers in the communication chain who filter the messages and do not transmit all the information to their bosses. Upward communication is primarily nondirective and usually found in participative and democratic organizational environments. Typical means for upward communication are suggestion systems, appeal and grievance procedures, complaint systems, counseling sessions, meetings, practice of open door policy, moral questionnaires, exit interviews etc. Effective upward communication requires an environment in which subordinates feel free to communicate. Since the organizational climate is greatly influenced by upper management, the responsibility for creating a free flow of upward communication rests to great extent with superiors.

Downward communication

Downward communication, in which, the flow of information from people at higher levels to those at lower levels in the organizational hierarchy. This kind of communication exists especially in organizations in with authoritarian atmosphere. The kinds of media used for downward communication include instructions, speeches, meetings, the telephones, loudspeakers, and even the grapevine.

The information is lost or distorted as it comes down through chain of command. Downward flow of communication through different levels of organization is time consuming. Indeed delays may be so frustrating that some top managers insist that information be sent directly to the person or group requiring it.

Horizontal Communication:

In this type of communication the flow of information at the same level.

This is also called interdepartmental communication at same level. The media used in this type of communication are more or less same as those used for these two types of organizational communications.

Crosswise Communication

Crosswise communication involves the horizontal flow of information among people at same level and diagonal flow among persons at different levels who have no direct reporting relationships with one another. This kind of communication is used to speed information flow, to improve understanding, and to coordinate efforts for the achievement of organizational

objectives. A great deal of communication does not follow the organizational hierarchy but across the chain of command.

Because information may not follow the chain of command, proper safeguards need to be taken to prevent potential problems. Specifically crosswise communication should rest upon the understanding that

a) Crosswise relationships will be encountered wherever they are appropriate

b) Subordinates will refrain from making commitments beyond their authority

c) Subordinates will keep superiors informed of important interdepartmental activities.

Types of Communication

a) Verbal communication

b) Nonverbal communication

A) Verbal communication

a) Written communication: in the forms of written letters, emails etc. it keeps records, references, legal defenses.

b) Oral communication : face to face meeting, group discussions, presentations, etc.

B) Non- verbal communication :

People communicate in many different ways such as facial expressions, body languages, gestures etc.

Planning Process:

Planning is an essential function of management. It encompasses defining an organization’s goal and establishment of overall strategy. This function is generally undertaken by top management.

The planning process can be defined as follows:

A process that includes defining goals, establishing strategy, and developing plans to coordinate activities.

A plan is a blueprint of activities like what is to be done, when it is to be done, how it is be done, by whom it is to be done.

Planning involves selecting missions and objectives and the actions to achieve them; it requires decision making, which is, choosing from the alternatives for future course of action.

Planning can also be defined as it is an activity to determine future course of action.

This process involves following steps:

1) Identify the opportunity

2) Establishment of objectives

3) Developing planning premises

4) Identifying alternatives

5) Evaluating alternatives

6) Selecting the best course of action

7) Formulation of derivative or back up plan

Figure: planning process:

Identifying opportunities

Establishing objectives

Developing planning premise

Identifying alternatives

Evaluating alternatives

Selecting the best alternative

Creating a derivative/backup plan

Step I: Identifying opportunities

The external environment of the company is full of the opportunities; the manager has to be aware of the opportunities to grow. He has to identify the opportunity which is best suitable for the organization. Identification of opportunity is the background process of planning. It gives rise to formulate the plans. The environmental scanning involves analysis of strengths, weakness, opportunities and threats.

Step II: Establishing Objectives

The planning process takes birth with the identification of opportunity. The next step in the planning process is to establish the objectives for the entire enterprise and then for each subordinate work unit. This is to be done for the long term as well as for the short term.

Enterprise objectives give direction to the major plans by reflecting these objectives; define the objective for every major department.

Step III: Developing Planning Premises

The third step in the planning process is to develop the planning premises such as forecasts, policies, and existing company plans. Forecasting is one of the most important planning premises.

Step IV: Determining Alternative Courses of Action

The fourth step in planning is to search for and examining alternative courses of action, especially those not immediately apparent. The more common problem is not finding alternatives but reducing the number of alternatives so that the most promising may be analyzed.

Step V: Evaluating the best course of action

After the alternatives have been determine the manager’s task is to choose the best one. To choose the best alternative that suits the best to the plan is selected by evaluating each alternative. Each course of action is given certain weightage according to their importance and relevance to the objective.

Step VI: Selecting the best course of action

When the courses of action evaluated the alternative that suits best to the criteria or to the objective is selected and the plan is made. This is the stage in which the actual plan is made. The evaluation of alternatives gives the opportunity to identify the relevance of alternatives for the specific objectives.

Step VII: Formulating derivative or backup plan

In this step the derivative plans or backup plans are created in order to reduce the risk of failure of the main plan. This is also called the plan B.

Controlling:

Control is one of the managerial functions like planning, organizing, staffing and directing. It is an important function because it helps to check the errors and to take the corrective action so that deviation from standards are minimized and stated goals of the organization are achieved in desired manner.According to modern concepts, control is a foreseeing action whereas earlier concept of control was used only when errors were detected. Control in management means setting standards, measuring actual performance and taking corrective action. Thus, control comprises these three main activities.

Definitions

According to Henry Fayol,

Control of an undertaking consists of seeing that everything is being carried out in accordance with the plan which has been adopted, the orders which have been given, and the principles which have been laid down. Its object is to point out mistakes in order that they may be rectified and prevented from recurring.

According to EFL Breach,

Control is checking current performance against pre-determined standards contained in the plans, with a view to ensure adequate progress and satisfactory performance.

According to Harold Koontz,

Controlling is the measurement and correction of performance in order to make sure that enterprise objectives and the plans devised to attain them are accomplished.

Features of control:

Control is a continuous process Control is a management process

Control is embedded in each level of organizational hierarchy

Control is forward looking

Control is closely linked with planning

Control is a tool for achieving organizational activities

Controlling procedure: The controlling procedure involves three steps,

1) Establishing standards

2) Measuring performance against the standards

3) Correcting variations standards and plans.

Establishment of standards:

The first step in controlling process is establishing standards. Plans are yardstick against which managers devise controls. Standards are simply criteria of performance. They are the selected points in an entire planning program at which managers can receive signals about how things are going on and thus do not have to watch every step in the execution of plans.

Measurement of performance:

The measurement of performance against standards should ideally be done on a forward looking basis so that deviations may be detected in advance of their occurrence and avoided by appropriate actions.

If standards are appropriately drawn and if means are available for determining exactly what subordinates are doing, appraisal of actual or expected performance is fairly easy.

Corrections of Deviations

Standards should reflect the various positions in an organization structure. If performance is measured accordingly, it is easier to correct deviations. Managers know exactly where in the assignment of individual or group duties, the corrective measures must be applied.

Correction of deviations is the point at which control can be seen as a part of the whole system of management and can be related to the other managerial functions. Managers may correct deviations by rewarding their plans or by modifying their goals. The managers may correct deviations by adding more staff by better selection and training of subordinates.

Standards may be of following types:

1) Physical standards

2) Cost standard

3) Capital standards

4) Revenue standards

5) Program standards

6) Intangible standards

7) Goals as standards

8) Strategic plans as control points

Controlling as a feedback system:

Many systems control themselves through information feedback, which shows deviations from standards and initiates changes. In other words, systems use some of their energy to feed back information that compares performance with standards and initiates corrective action.

Management control is usually perceived as a feedback system similar to that which operates in the common household thermostat. This system places control in more complex and realistic light than would regarding it merely as a matter of establishing standards, measuring performance and correcting for deviations. Managers do measure actual performance compare this measurement against standards, and identify and analyze deviations. But then to make necessary corrections, they must develop program for corrective action and implement this program in order to arrive at performance desired.

Requirements for effective control:

1) Designing controls to plans and positions

2) Designing controls to individual managers

3) Designing controls to point up Exceptions at critical points

4) Seeking objectivity of controls

5) Ensuring flexibility of controls

6) Fitting the control system to the organizational culture.

COORDINATION AS A MANAGEMENT FUNCTION

Introduction

Coordination is considered as an essential element of administration. Co-ordination is the

integration, synchronisation or orderly pattern of group efforts in the institution towards the

accomplishment of common objectives. To ensure a harmonious and smooth working of an

organisation with a number of its divisions ,department or its units , the activities in all the

areas are required to be pulled together , unified and blended so as to give them a

commonness and purpose.

Definitions

"Co-ordination is the orderly synchronisation of efforts to provide the proper amount,

timing, and directing execution resulting in harmonious and and unified actions to a

stated objective"

"Co-ordination is the integration of several parts into an orderly whole to achieve the

purpose of undertaking"

"Co-ordination is the integrating process in an orderly pattern of group efforts in an

organisation toward the accomplishment of a common objective"

The concept of co-ordination is much broader than that of co-operation. Both these have to

go side by side. Co-ordination is only a means to an end and not an end itself.

Principles of co-ordination

1. As the thinking function of management precedes the doing function, co-ordination

endeavour must sort at the planning stage, otherwise it becomes impossible to

secure co-ordination of activities and efforts in the execution of work.

2. There is need for importance of direct personal contact in removing misunderstanding

and conflict between departments.

3. Co-ordination is continual activity that permeates through each each managerial

function.

4. There should be an integration of all efforts, actions and interests toward a common

purpose. For this co-ordination call for the establishment of a reciprocal relationship

among all pertinent factors by way of balancing, blending and joining together the

factors with one another.

Need for co-ordination

Diverse and specialized activities-total activities of an organisation are divided into

several units and subunits on the basis of either product specialisation. Every

manager tends to concentrate his attention on activities and objectives of has own

department. Hence co-ordination is needed to prevent and discourage too much

concentration on one aspect of work.

Empire building- to exaggerate self importance and personal motive is deeply

implanted in human nature. This motive causes the individual department to be

isolated from others, thus turning it as a separate entity. So co-ordination is needed

to curb the growing tendency towards the empire building.

Personal rivalries and prejudice-human organisation give rise in course of time to the

development of personality politics among members. Under such situation, co-

ordination is deliberately damaged by the members of the rival group. The

perceptual conflict between line and staff positions or between personnel is a

pointer to this problem

Conflict of interests- subordination of individual interest to general interest acts as a

bar to co-ordination. This subordination may arise from a number of causes by a

laziness, incompetence and ambition as well as lack of loyalty, integrity or initiative

on the part of employees. There is need for co-ordination to avoid conflicts or

overlapping in the work of employees or units or as organisation.

Techniques of co-ordination

Communications-effective communication is arranged not only by building a network

of communication systems but by allowing wide participation also in the decision

making on the part of the affected persons.

Orderly plans- standing plans like policies and procedures, standing orders and

instructions communicate the expected pattern of behaviour required for co-

ordinated action. Because of checking, observation and guidance involved and

supervision, it aids much in developing co-ordinated efforts.

Supervision- effective supervision aids in co-ordination much in developing co-

ordinated effort by checking, observation and guidance.

Leadership-leadership provides individual motivation and persuades the group to have

identity of interests and outlook in group efforts.

Departmentation-Departmentation arranges for necessary correlation and

interconnection of activities in an analytical manner by assigning duties and

delegating authority in different positions is the work of Departmentation.

Direct contact-it permits the management members to exchange their ideas,

prejudices and problems as well as to understand each others.

Types of co-ordination

Internal co-ordination- it refers to the blending of all efforts and activities and forces

operating within an organisation or enterprise.

External co-ordination- the blending of all efforts and activities and forces operating

outside the enterprise or organisation which contribute to achieving the goals and

objective of the organisation.

Internal co-ordination

Planning- it is a well thought out course of action to be taken for realising certain

objectives through the available means, a good plan requires a perfect

harmonisation between mean and ends and this in itself is an ct of co-ordination. To

reach ends all plans include a programme mapping out the orderly course of action.

To draw up an orderly course of action, all activities and efforts are to be interlinked,

and desired for their guidance toward the desired end.

Organization – organisation is set up with the primary purpose of securing co-

ordination particularly interdepartmental and interpersonal. Departments and

divisions are established to ensure a smooth flow of work without friction, failing or

delaying.

Direction – direction is concerned with making the human efforts more effective and

productive through leadership, guidance, motivation, communication and

supervision. Managers directing the efforts of employees towards a common goal.

Supervision is a cementing force for securing better performance from workers.

Supervisor gives assistance, advice or direction to obtain cohesive group efforts

Control-control ensures the realisation of planned objectives through the process of

work evaluation. The work progress is analysed and appraised in terms of quantity,

quality, time use and cost.

External co-ordination

There are 3 interesting parties-the customers, employees and the owners whose conflicting needs and demands have to be satisfied by managers of any business.

Consumers desire an uninterrupted supply of quality goods and services at fair process and expect a steady improvement in the quality of goods and services so as to give them a higher standard of living.

Employees-demand fair wages ,congenial working conditions ,steady employment satisfaction from the work as well as protection against hazards of accidents and sickness or old age

Owners –want conservation of assets, efficient and continuous operation of business, fair returns on the investments and accurate information on several aspects of business.

Other enterprise – an enterprise affects and is affected in turn by the activities of other enterprises particularly those in the same line of business. An enterprise purchase materials and services from other enterprises. Many enterprises are chained together by their customer –buyer relationships. Non-availability of materials may lead to forced stoppages of production on the part of some enterprise.

Government regulations-the government at city, state or central level exerts potent forces that are to be recognised by all managers. Regulatory measures of government become so extensive that no enterprise can stay in business without becoming thoroughly familiar with the socioeconomic trends which produce these restrictive regulations. Compliance with various laws relating to tax, tariff, labour etc is necessary

General business economy-enterprises must adjust themselves with the swings of the trade cycle through economic forecasting and trend study.

Technology advances-an enterprise must secure the benefit of new technology which is being made continually available in our society through research and interventions .technological advances contribute significantly towards the reduction of cost and the improvement of productivity. Without introducing new technological changes an enterprise cannot go ahead.

Importance of co-ordination

1. Quintessence of management: in a sense, management is primarily a task of co-

ordination of all efforts, forces and activities that affect the enterprise from within

and without it.

2. Creative force- group efforts when co-ordinated create a result greater than the sum

total of the individual and isolated. This composite effort is brought about by

executive action on human relation and leadership.

3. Unity of direction- co-ordination ensures unity if direction by way of securing

spontaneous collaboration on the part of different departments.

4. High employee morale- co-ordination tones up the general level of employee morale

and provides satisfaction.

Hindrances to co-ordination

1. The uncertainty of the future, as to the behaviour of the individual and the people.

2. The lack of knowledge, experience, wisdom and character among leaders and their

confused and conflicting ideas and objectives.

3. The lack of administration skill and technique.

4. The vast number of variables involved and the incompleteness of human knowledge,

particularly with regard to men and life.

5. The lack of orderly methods of developing new ideas and programmes.

6. Size and complexity, personality and political factors.

7. Lack of leaders with wisdom and knowledge pertaining to public administration

8. The accelerated expansion of public administration of international dimension.

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DELEGATION AS MANAGEMENT FUNCTION:

Delegation is getting the work done by others or as directing the performance of one or more

people to accomplish organisational goals.

Definitions

"Delegation is defined as the transfer of responsibility for the performance of a task

from one person to another"

"Transferring to a competent individual the authority to perform a selected nursing

task in a selected nursing situation . The nurse retains accountability for delegation"

5 Rights to delegation

National Council of State Board of Nursing in the US presented 5 rights to delegation from

the perspectives of both nursing service administrator and staff nurse. Nursing service

administrator is responsible for job description, role delineation, development of

organisational policies, procedures and standards an assurance of adequate human

resources. Staff nurse is responsible for assessing client, delegating appropriately,

communicate clearly, providing monitoring and supervision.

1. Right task

2. Right circumstance

3. Right person

4. Right direction/communication

5. Right supervision/evaluation

Strategies for effective delegating

Plan ahead

Identify necessary skill and levels

Select most capable person

Communicate goal clearly

Empower the delegate

Set deadlines and monitor progress

Model the role: provide guidance

Evaluate performance

Reward accomplishment

Common delegation errors

Under delegating-frequently occurs from managers false assumption is that it may be

interpreted as a lack of ability on his part to do the job correctly or completely.

Another cause is manager’s desire to complete the whole job personally due to lack

of trust in sub-ordinates.

Over delegating- some managers over delegate burdening their subordinates. Others

do so because they feel insecure in their ability to perform a task, and due to lack of

organisation time. It can decrease the productivity.

Improperly delegating- it includes delegating the things at wrong time, to the wrong

person or for the wrong reason. Also delegating the yaks and responsibilities that are

beyond the capability of the person to whom they are being delegated or that should

be done by the manager.

Barriers to delegation

The belief that “i can do it better myself”

Lack of confidence and trust in workers

Low self confidence, insecurity

Vague job description

Inadequate training

Lack of adequate recruitment and selection

Time involved in explaining the task

Reluctance to take the risks involved in depending on others.

Fear of loss of power

Delegation as a function of professional nursing

With the restructuring of care delivery models registered nurse at all levels are expected to

make assignments for and supervise the work of different levels of employees. Registered

nurses should perform role of supervisor and delegator need preparation to assume these

leadership tasks. Nursing schools and health care organisations have to prepare

professionals for the delegator role. This includes basic principles of delegating to right

person, at a right time and for the right reason, and an action that must be undertaken when

work is delegated in an appropriate or unsafe manner.

Delegating to unlicensed assistive personnel’s (UAP)

Assuming the role of delegator and supervisor to UAP increases the scope of liability for the

registered nurses. Although nurses are not directly liable for all acts of negligence on the

part of those they supervise, they may be held liable if they were negligent in the

supervision of those employees at the time when they committed negligent acts.

In delegating tasks to the employees the RN must be aware of job description, knowledge

base and demonstrated skill of each person

Subordinate resistance to delegation

Common cause of this can be

Failure of the delegator to see the subordinates perspectives

Workload assigned are highly challenging both physically and mentally

Belief of employees that they are incapable of completing the delegated task.

Inherent resistance to authority

Due to over delegation

Delegating to a transcultural work team-factors which may affect here include

Communication

Space

Social organization

Time

Environmental control

Biological variations

Integrating leadership roles and management functions in delegation

Delegation provides a means for increasing productivities. It is also a managerial tool for

subordinate accomplishment and enrichment. It also requires highly developed leadership

skills such as sensitivity to subordinate capabilities and needs, and the ability to

communicate clearly and directly, the willingness to support and encourage subordinates in

carrying out delegated tasks and the vision to see how delegation might result in increased

personal growth for subordinates.

Conclusion

For the effective administration of any organisation co-ordination and delegation are

essential. Without these two functions it will be difficult to achieve the organisational goals.

The right to delegate and the ability to provide formal reward for successful completion of

delegated tasks reflect the legitimate authority inherent in the management role.

Contents:

Analyzing Interpersonal Relations Leadership Leadership Styles and Influence Process Group Dynamics Professional Management Task and Responsibilities

Managing Leadership and Influence Processes

As a process, leadership is the use of no coercive influence to shape the groups or organization's goals, motivate behavior toward the achievement of those goals, and help define group or organization culture. As a property, leadership is the set of characteristics attributed to those who are perceived to be leaders. Leadership and management are often related but are also different. Managers and leaders use legitimate, reward, coercive, referent, and expert power.

The trait approach to leadership assumed that some basic trait or set of traits differentiated leaders from nonreaders. The leadership-behavior approach to leadership assumed that the behavior of effective leaders was somehow different from the behavior of nonreaders. Research at the University of Michigan and Ohio State identified two basic forms of leadership behavior-one concentrating on work and performance and the other concentrating on employee welfare and support. The Managerial Grid attempts to train managers to exhibit high levels of both forms of behavior.

Situational approaches to leadership recognize that appropriate forms of leadership behavior are not universally applicable and attempt to specify situations in which various behaviors are appropriate. The LPC theory suggests that a leader's behaviors should be either task-oriented or relationship-oriented depending on the favorableness of the situation. The path-goal theory suggests that directive, supportive, participative, or achievement-oriented leader behaviors may be appropriate, depending on the personal characteristics of subordinates and the environment. Vroom's decision tree approach maintains that leaders should vary the extent to which they allow subordinates to participate in making decisions as a function of problem attributes. The leader-member exchange model focuses on individual relationships between leaders and followers and in-group versus out-group considerations.

Related leadership perspectives are the concept of substitutes for leadership, charismatic leadership, and the role of transformational leadership in organizations.

Political behavior is another influence process frequently used in organizations. Impression management, one especially important form of political behavior, is a direct and intentional effort by someone to enhance his or her image in the eyes of others. Managers can take steps to limit the effects of political behavior.

Leadership As a process, the use of no coercive influence to shape the group's or organization's goals, motivate behavior toward the achievement of those goals, and help define group or organization culture; as a property, the set of characteristics attributed to individuals who are perceived to be leaders

Leaders People who can influence the behaviors of others without having to rely on force; those accepted by others as leaders

Power

Power is the ability to affect the behavior of others

Legitimate power granted through the organizational hierarchy; it is the power defined by the organization that is to be accorded people occupying particular positions

Reward power The power to give or withhold rewards, such as salary increases, bonuses, promotions, praise, recognition, and interesting job assignments

Coercive power: the power to force compliance by means of psychological, emotional, or physical threat

Referent power: The personal power that accrues to someone based on identification, imitation, loyalty, or charisma

Expert power: The personal power that accrues to someone based on the information or expertise that they possess

LEADERSHIP BEHAVIOR

Job-centered leader behavior: The behavior of leaders who pay close attention to the job and work procedures involved with that job

Employee-centered leader behavior: The behavior of leaders who develop cohesive work groups and ensure employee satisfaction

Initiating-structure behavior: The behavior of leaders who define the leader-subordinate role so that everyone knows what is expected, establishing formal lines of communication, and determine how tasks will be performed

Consideration behavior: The behavior of leaders who concern for subordinates and attempt to establish a warm, friendly, and supportive climate

Concern for people: That part of the Managerial Grid that deals with the human aspects of leader behavior

Concern for production: That part of the Managerial Grid that deals with the job and task aspects of leader behavior

LPC theory:

A theory of leadership that suggests that the appropriate style of leadership varies with situational favorableness

Least preferred co-worker (LPC) The measuring scale that asks leaders to describe the person with whom he or she is able to work least well

Path-goal theory A theory of leadership suggesting that the primary functions of a leader are to make valued or desired rewards available in the workplace and to clarify for the subordinate the kinds of behavior that will lead to those rewards

Vroom's decision tree approach Predicts what kinds of situations call for what degrees of group participation

Leader-member exchange (lmx) approach stresses that leaders have different kinds of relationships with different subordinates

Substitutes for leadership a concept that identifies situations in which leader behaviors are neutralized or replaced by characteristics of subordinates, the task, and the organization

Charismatic leadership assumes that charisma is an individual characteristic of the leader

Charisma A form of interpersonal attraction that inspires support and acceptance

Transformational leadership; a Leadership that goes beyond ordinary expectations by transmitting a sense of mission, stimulating learning experiences, and inspiring new ways of thinking

Political behavior The activities carried out for the specific purpose of acquiring, developing, and using power and other resources to obtain one's preferred outcomes

Impression management a direct and intentional effort by someone to enhance his or her image in the eyes of others

Distinctions between Management and Leadership

Leadership Activity Management

Establishing direction and vision for the organizationCreating an agenda Planning and budgeting, allocating resources

Aligning people through communications and actions that provide directionDeveloping a human network for achieving the agendaOrganizing and staffing, structuring and monitoring implementation

Motivating and inspiring by satisfying needsExecuting plansControlling and problem solving

Produces useful change and new approaches to challengesOutcomesProduces predictability and order and attains results

GROUP DYNAMICS:A. GROUP FORMATION

A group is able to share experiences, to provide feedback, to pool ideas, to generate insights, and provide an arena for analysis of experiences. The group provides a measure of support and reassurance. Moreover, as a group, learners may also plan collectively for change action. Group discussion is a very effective learning method.

1. Participation

Participation is a fundamental process within a group, because many of the other processes depend upon participation of the various members. Levels and degrees of participation vary. Some members are active Participants while others are more withdrawn and passive. In essence, participation means involvement, concern for the task, and direct or indirect contribution to the group goal. If members do not participate, the group ceases to exist.

Factors which affect member’s participation

- The content or task of the group- is it of interest, importance and relevance?- The physical atmosphere -is it comfortable physically, socially and psychologically?- The psychological atmosphere - is it accepting, non-threatening?- Member’s personal preoccupations -are there any distracting thoughts in their mind?- The level of interaction and discussions - is adequate information provided for everyone to understand? - is it at a level everyone understands?

Familiarity- between group members- do members know each other from before?

II. Communication

Communication within a group deals with the spoken and the unspoken, the verbal and the non-verbal, the explicit and the implied messages that are conveyed and exchanged relating to information and ideas, and feelings. Two-way communication implies a situation where not only the two parties talk to each other, but that they are listening to each other as well. It helps in - Clarification of doubts, confusions and misconceptions- Both parties understanding each other- Receiving and giving of feedback

It indicates the degree of respect between the two parties

Helpful hints for effective communication1. Have a circular seating arrangement so that everyone can see and interact with everyone else 2. If there are two facilitators, they should sit apart so that communication flow is not in one direction3. Respect individuals- let everyone call everyone else by name respectfully4. Encourage and support the quiet members to voice their opinions5. Try and persuade the people who speak too much to give others a chance6. Ensure that only one person speaks at a time or no one else will be heard7. Discourage sub groups from indulging in side talk

iii. Problem solving

Most groups find themselves unable to solve problems because they address the problem at a superficial level. After that they find themselves blocked because they cannot figure out why the problem occurred and how they can tackle it. Therefore an effective problem solving procedure would be to:

1. Clearly define the problem: Is it what appears on the surface or are there deep hidden aspects?2. Try to thoroughly explore and understand the causes behind the problem 3. Collect additional information, from elsewhere if necessary, and analyze it to understand the problem further4. The group should suspend criticism and judgment for a while and try to combine each other's ideas or add on improvements. The objectives should be to generate as many ideas and suggestions as possible. This is called "brainstorming" in a group, when individuals try lateral thinking.

IV. Leadership Leadership involves focusing the efforts of the people towards a common goal and to enable them to work together as one. In general we designate one individual as a leader. This individual may be chosen from within or appointed from outside. Thus, one member may provide leadership with respect to achieving the goal while a different individual may be providing leadership in maintaining the group as a group. These roles can switch and change

DEVELOPMENT OF GROUPS

The developmental process of small groups can be viewed in several ways. Firstly, it is useful to know the persons who compose a particular small group.

• People bring their past experiences • People come with their personalities (their perceptions, attitudes and values)• People also come with a particular set of expectations

The priorities and expectations of persons comprising a group can influence the manner in which the group develops over a period of time

Stages

Viewing the group as a whole we observe definite patterns of behavior occurring within a group. These can be grouped into stages.

FIRST STAGE The initial stage in the life of a group is concerned with forming a group. This stage is characterized by members seeking safety and protection, tentativeness of response, seeking superficial contact with others, demonstrating dependency on existing authority figures. Members at this stage either engage in busy type of activity or show apathy.

SECOND STAGEThe second stage in this group is marked by the formation of dyads and triads. Members seek out

familiar or similar individuals and begin a deeper sharing of self. Continued attention to the subgroup creates a differentiation in the group and tensions across the dyads /triads may appear. Pairing is a common phenomenon.

THIRD STAGEThe third developmental stage is marked by a more serious concern about task performance. The dyads/triads begin to open up and seek out other members in the group. Efforts are made to establish various norms for task performance. Members begin to take greater responsibility for their own group and relationship while the authority figure becomes relaxed.

FOURTH STAGEThis is a stage of a fully functional group where members see themselves as a group and get involved in the task. Each person makes a contribution and the authority figure is also seen as a part of the group. Group norms are followed and collective pressure is exerted to ensure the effectiveness of the group. The group redefines its goals in the light of information from the outside environment and shows an autonomous will to pursue those goals. The long-term viability of the group is established and nurtured.

FACILITATING A GROUP

A group cannot automatically function effectively, it needs to be facilitated. Facilitation can be

described as a conscious process of assisting a group to successfully achieve its task while

functioning as a group. Facilitation can be performed by members themselves, or with the help

of an outsider.

To facilitate effectively the facilitator needs to• Understand what is happening within the group• Be aware of his/her own personality

• And know how to facilitate