QUESTION 1

A. The four Basic Functions of Management.

I. Planning and Decision Making:

First function of management is planning. planning is deciding in

advance what to do, how to do it, when to do it and who is to do it. It
involves determination of objectives policies and procedures and
programs or achieving them. The first steps in planning is to select
objectives and then to determine policies, procedures and programs
under which the desired objectives to be achieved. Planning requires a
great amount of decision making on the part of a manager. It needs an
ability to force and skill to control the conditions suiting the particular
situation. In case if he cannot plan properly he can never be a successful
manager.

Decision making, deciding what needs to happen in the future (today,

next week, next month, next year, over the next five years, etc.) and
generating plans for action.

II. Organizing:

Second function of Management is Organizing means by which the

management coordinates man power, money machinery and materials for
the achievement of goals . It includes determination of activities, grouping
of these activities into department assignment of jobs to officers,
delegation of authority to carry them out and provision for coordination of
activities and information in the organization’s structure.

III. Controlling:

The third function of management is controlling or Directing.

Controlling means checking to unify the efforts of subordinates and
workers. Checking the progress against plans to achieve objectives in a
cooperative manner. if the organizations work efficiently the management
at all levels must aim at effective coordination. The coordination among
different units of organization can be achieved by proper motivation,
sound and efficient leadership. The remedial measures are take to bring
business operation into line with the plans, if the plan is found unrealistic
then the performance standard is established at a lower level. thus things
are controlled by controlling what people do.

IV. Directing:

The fourth function of management is Directing. It’s means issue

timely instruction to enable work fore or proceed to their work efficiently
and smoothly without wasting their time in waiting for instructions or
directions. Guiding and supervising in such as such a manner that
workers may not feel any snag or loophole in their work position.

Directing is just like motivating and teaching subordinate to take

interest and produce effectively because without motivation, employees
cannot work effectively. If motivation does not take place in an
organization, then employees may not contribute to the other functions
(which are usually set by top-level management) it involves involves order
instruction, orientation, guidance and supervision of work of the group it
also requires quality of leadership on the part of the manager and ability to
communicate and interpret the policies to individuals working in the group.
B. Three Levels of Manager

Levels of Manager are a term referred to line of differentiation among

various administrative positions in a company. The levels may increase as
and when the size of the business increases and vice versa. Level of
Manager determines the chain of control and the quantity of power and
position that is given to any management role to an individual in an
organization. Levels of Manager are broadly classified into three:

I. Managerial or the Top Level Manager:

This level consists of the board of directors and managing director. It

is the supreme source of power since it manages the policies and
procedures of an entity. Their main responsibility lies in planning and
coordinating. The roles and responsibilities of this ‘creamy’ level can be
summed up as follows:

(a). It is at this level that all the objectives and major policies are laid
down.

(b). Instructions are given for preparing the necessary budgets for
various departments, schedules and policies.

(c). Preparation of premeditated plans and policies are done at this

level.

(d). Appointment of executives at central level or departmental heads.

(e). Since it consists of Board of Director the top administration is

accountable towards the shareholders for performance of the
organization.

(f). Harmonization and control are the two major roles played by the
top management.

(g). It guides the organization in the right direction towards achieving

the goals and objectives.
II. Executive or Middle Level Management:

The line and departmental managers form this level of

management. These people are directly accountable to the top
management for functioning of their respective departments. Their
main role comes under the directional and managerial functions of an
organization. The roles of managers at this level are as follows:

(a). The main role lies in the implementation of policies and plans as
per the directives of the top management.

(b). Preparing plans for the sub units of their respective departments.

(c). Actively contribute in guidance and employment of supervisory

level of management.

(d). Their duty is to understand and elucidate the policies of the top
management to the lower management.

(e). Bringing together the activities within the department is another

role at this level of management.

(f). Assessment of performance of junior managers.

(g).Timely and important reports or data to be sent to the top

management.

(h). Motivation of supervisory managers is a vital role of this level of

management.

III. Supervisory or Operative Level Management:

This level constitutes mostly of supervisors, foremen and first line

managers. The main role of these people are:

(a). Handing over jobs or responsibilities to a variety of workers.

(b). Guidance towards day to day activities of the organization.

(c). These managers are directly responsible for quality and amount of
production.

(d). They act as mediators in communicating the problems of workers

and also undertake recommending solutions to higher level of
organization.

(e). They take stock of the machines and material required for the
work to be done.

(f). They are the role models for the workers as they are directly and
constantly in touch them.

(g). It is their duty to uphold discipline and decorum in the

organization.
QUESTION 2

A. Decision Making

Decision making is the mental process of choosing from a set of

alternatives. Every decision-making process produces an outcome that
might be an action, a recommendation, or an opinion. Decision-making
involves the selection of a course of action from among two or more
possible alternatives in order to arrive at a solution for a given problem.
Further, decision making process can be regarded as check and balance
system that keeps the organization growing both in vertical and linear
directions. It means that decision making process seeks a goal.

Three types of Decision Making.

I. Strategic Decisions:

Routine decisions are taken in the context of day-to-day operation

of the organization. Mostly they are of repetitive nature and related
with the general functioning. Authority for taking these decisions is
generally delegated to lower levels in the organization.

Strategic decisions are those, which are taken during the current
time period, but those primary effects are felt during some future
period. It affects organizational structures, objectives, facilities and
finances. These decisions are taken comparatively at higher level of
management.

II. Technical Decisions:

In every organization there is need to make decisions about core

activities. These are basic activities relating directly to the ‘work of the
organization’. The core activities of PETRONAS would be exploration,
drilling, refining and distribution. Decisions concerning such activities
are basically technical in nature. In general, the information required
to solve problems related to these activities is generally concerned
with the operational aspects of the technology involved.
 In short, technical decisions are concerned with the process
through which inputs such as people, information or products are
converted into outputs by the organization.

III. Managerial Decisions:

Such decisions are related to the co-ordination and support of the

core activities of the organization. Managerial decision-making is also
concerned with regulating and altering the relationship between the
organization and its external (immediate) environment. In order to
maximize the efficiency of its core activities it becomes absolutely
essential for management to ensure that these actions are not unduly
disturbed by short-term changes in the environment.

This explains why various organizations often build up inventories

and forecasting of short-term changes in demand and supply
conditions are integral parts of managerial decision-making.
B. Step in the decision making.The steps in the decision-making process
consists of the following.

Step 1: Diagnosis and Analysis.

Diagnosis is the process of identifying disease from its signs and
symptoms. Symptoms occupy an essential place in the problem solving
process; they signal the existence of problems and guide the search for
underlying problem. Correct diagnosis gives correct identification of
disease and consequently through correct medicine disease is removed.
The analysis of the problem requires finding out who would take
decision without information would be required and from where these
would be available. It helps to gain an insight into the problem.

Step 2: State the alternative solution. Searching for Alternatives

Searching alternatives is limited by time and money. You need to

balance the rising cost of attaining additional information with the
declining value of this piece of information. You need to stop the search
in the zone of cost effectiveness where the cost of additional alternatives
is lower than the value of the alternative. The search result are
usually three to five alternatives, with one alternative of doing nothing.

Step 3: Select the best alternative.

Select the best alternative by comparing and evaluating all

alternatives. The alternatives from step B are evaluated using criteria
derived from the objective from step A. The evaluation includes an
anticipation of the likely outcome for each alternative and
also anticipate obstacles or difficulties during implementation.

Step 4: Plan the course of action and the act of choice.

The choice is the culmination of the process, not all of it. This
step confronts the decision maker with discernible constraints. The choice
is the alternative most likely to result in the achievement of the objective.
Step 5: Implementing the plan of action.

The decision success is a function of decision quality and decision

implementation taking into consideration the operating constraints, the
influence of the decision maker and the involvement of decision
implementer without a conflict of interest.

Step 6: Control and review the result of the plan against the
objectives, follow-up and control.

The "Follow-up and Control" step is essential to ensure that an

implemented decision meets its objective. The performance is measured
by observing the implemented decision in relation to its standard derived
from the objective. Unacceptable variance from standard performance is
should elicit timely and appropriate corrective actions. Corrective actions
may result in the implementation of another alternative, which, if not
successful, may result in a revision of the original objective.
QUESTION 3

A. Steps in process control.

The control process involves carefully collecting information about a

system, process, person, or group of people in order to make necessary
decisions about each.

Managers set up control systems that consist of four key steps:

I. Establish standards to measure performance.

Within an organization's overall strategic plan, managers define

goals for organizational departments in specific, operational terms that
include standards of performance to compare with organizational
activities.

II. Measure actual performance.

Most organizations prepare formal reports of performance

measurements that managers review regularly. These measurements
should be related to the standards set in the first step of the control
process. For example, if sales growth is a target, the organization
should have a means of gathering and reporting sales data.

III. Compare performance with the standards.

This step compares actual activities to performance standards.

When managers read computer reports or walk through their plants,
they identify whether actual performance meets, exceeds, or falls
short of standards. Typically, performance reports simplify such
comparison by placing the performance standards for the reporting
period alongside the actual performance for the same period and by
 computing the variance—that is, the difference between each actual
amount and the associated standard.

IV. Take corrective actions.

When performance deviates from standards, managers must

determine what changes, if any, are necessary and how to apply them.
In the productivity and quality‐ centered environment, workers and
managers are often empowered to evaluate their own work. After the
manager determines the cause or causes of deviation, he or she can
take the fourth step—corrective action. The most effective course may
be prescribed by policies or may be best left up to employees'
judgment and initiative.
B. Delegation.

Delegation is assigning responsibility and authority to someone in order to

complete a clearly defined and agreed upon task while you retain ultimate
responsibility for its success. Delegation incorporates empowering your
teammates through effective leadership, and may be directed in any direction
and used in any organization. Effective delegation is not simply about handing
over a task. It’s about understanding the competence and commitment of the
person you want to delegate to.

Five barriers to delegation

I. Fear of Failure

To delegate effectively, managers must recognize their own fears and

allow some room for their team to make mistakes. With adequate
development and trust, team members will more often meet the challenge
than fail.

II. Loss of Control

Admit it, we can all be a bit of a control freak at times. Many business
owners have a long history of making things happen with their own skill
and determination. Even though business owners think they can do the
task better, your business will not be successful if there’s a leader
micromanaging everything. A way to overcome this is by providing
planned accountability amongst your team members, which will calm your
anxiety. Besides, you may find out that one of your team members
discovers a new, more efficient method of completing the task at hand!
III. Lack of Trust in Themselves

Inferiority complex on the part of the employees is the most common

reason why employees resist delegation. The subordinates feel that their
capabilities are limited so they often refuse to accept the challenges which
may arise from delegation. They fear that their colleagues or superior will
know that they are incapable of doing the tasks when something doesn’t
go right during the course of task completion. They also fear that their
inability to handle tasks assigned to them will be exposed when they
accept the tasks and eventually fail to complete them. Inferiority complex
is a serious obstacle to delegation.

IV. Lack of Positive Incentives

Positive incentives go a long way in building the morale of the

subordinates whether they are in the form of recognition, monetary benefit
or appreciation. Such benefits are helpful in persuading the subordinates
to join in the delegation process and in trying their best to successfully
complete the task delegated to them. The rewards that come with the
delegation of authority can make the subordinates cheerfully and willingly
do the tasks assigned to them. Overusing incentives on the other hand,
can cause unhealthy competition among members of organization so it
must be carefully given at the right amount and at the right time.

V. Lack of information

A subordinate is hesitant to accept a task when he feels that the

important information necessary for him to acquire for successfully
performing the task is not made available for him. This results in
reluctance of a subordinate to accept the delegated functions and
authority because he believes he can’t be able to perform well. Lack of
information simply means lack of knowledge of what he is going to do. The
delegator must make adequate information available to a subordinate
whom the task is passed on, to ensure proper handling of the task.
QUESTION 4.

A. I. Chain of Command

In an organizational structure, “chain of command” refers to a

company's hierarchy of reporting relationships – from the bottom to
the top of an organization, who must answer to whom. The chain of
command not only establishes accountability, it lays out a company’s
lines of authority and decision-making power. A proper chain of
command ensures that every task, job position and department has
one person assuming responsibility for performance.

The chain of command is an unbroken line of authority that links

all persons in an organization and shows who reports to whom. It is
associated with two underlying principles:

• Unity of command. Each employee is held accountable to only

one supervisor.

• The scalar principle. There is a clearly defined line of authority in

the organization that includes all employees.
 II. Authority

Authority is the right or power assigned to an executive or a

manager in order to achieve certain organizational objectives. Power
that has been legitimized by the organization and give the right of a
person to use and allocate the resources efficiently, to take decisions
and to give orders so as to achieve the organizational objectives.

The authority was delegated from top to bottom of the

organizational hierarchy. Every manager possessed some Types of
Authorityaccording to his designated position. It is related to a specific
position a person holds and his personal characteristics are ignored
against his authority, even if a position becomes vacant in the
organization, but still it remains attached to that position.

B. 4 common form of organization structure.

Functional Structure

This structure groups employees into functional areas based on their

expertise. These functional areas often correspond to stages in the value
chain such as operations, research and development, and marketing and
sales. They also include support areas such as accounting, finance, and
human resources. The graphic that follows shows a functional structure,
with the lines indicating reporting and authority relationships. The
department head of each functional area reports to the CEO; the CEO then
coordinates and integrates the work of each function.
 A functional structure allows for a higher degree of specialization and
deeper domain expertise than a simple structure. Higher specialization
also allows for a greater division of labor, which is linked to higher
productivity.[1] Although work in a functional structure tends to be
specialized, it is centrally coordinated by the CEO, as in the earlier graphic.
A functional structure allows for an efficient top-down and bottom-up
communication chain between the CEO and the functional departments,
and thus relies on a relatively tall structure. The disadvantage inherent to a
functional structure is that the emphasis on specialization can cause high
levels of job dissatisfaction and fewer process improvements for the
business.

Product Structure

Companies with diversified product lines frequently structure based on

the product or service. GE, for example, has structured six product-specific
divisions supported by six centralized service divisions.

(1) Energy

(2) Capital

(3) Home & Business Solutions

(4) Healthcare

(5) Aviation

(6) Transportation.

Product divisions work well where products are more technical and
require more specialized knowledge. These product divisions are
supported by centralized services, which include: public relations,
business development, legal, global research, human resources, and
finance.

This type of structure is ideal for organizations with multiple products

and can help shorten product development cycles. One disadvantage is
that it can be difficult to scale. Another disadvantage is that the
organization may end up with duplicate resources as different divisions
strive for autonomy.

Customer Structure

Companies that offer services, such as health care, tend to use a

customer-based structure. While similar to the product structure, the
different business segments at the bottom are each split into a specific
customer group—for example, outpatient, urgent care, and emergency
care patients. Since the customers differ significantly, it makes sense to
customize the service. Employees can specialize around the type of
customer and be more productive with that type of customer. The directors
of each customer center would report directly to the chief medical officer
and/or the hospital CEO. This is also designed to avoid overlap, confusion,
and redundancies. The customer structure is appropriate when the
organization’s product or service needs to be tailored to specific
customers.

The customer-based structure is ideal for an organization that has

products or services unique to specific market segments, especially if that
organization has advanced knowledge of those segments. However, there
are disadvantages to this structure, too. If there is too much autonomy
across the divisions, incompatible systems may develop. Or divisions may
end up inadvertently duplicating activities that other divisions are already
managing.

Geography Structure

If an organization spans multiple geographic regions, and the product

or service needs to be localized, it often requires organization by region.
Geographic structuring involves grouping activities based on geography,
such as a Latin American division. Geographic structuring is especially
important if tastes and brand responses differ across regions, as it allows
for flexibility in product offerings and marketing strategies. Also,
geographic structuring may be necessary because of cost and availability
of resources, distribution strategies, and laws in foreign countries. Coca
 Cola structures geographically because of the cost of transporting water.
NetJets, a private aviation company, had to create a separate company in
Portugal to operate NetJets Europe, because the entity had to be owned
by a European Union carrier.

This type of structure is best for organizations that need to be near

sources of supply and/or customers. The main disadvantage of a
geographical organizational structure is that it can be easy for decision
making to become decentralized; geographic divisions can sometimes be
hundreds, if not thousands, of miles away from corporate headquarters,
allowing them to have a high degree of autonomy.

What is Leadership

Leadership is a process by which an executive can direct, guide, influence

the behavior and work of others towards accomplishment of specific goals in a
given situation and the ability of a manager to induce the subordinates to work
efficiently.

Leadership is the potential to influence behaviour of others. It is also

defined as the capacity to influence a group towards the realization of a goal.
Leaders are required to develop future visions, and to motivate the
organizational members to want to achieve the visions.

Difference between leader and manager.

There is an essential difference between leadership and management

which is captured in these definitions:

A Leader is setting a new direction or vision for a group that they follow, ie:
a leader is the spearhead for that new direction. A leader invents or innovates
while a manager organizes. A leader always has his or her eyes set on the
horizon, developing new techniques and strategies for the organization. A
leader has immense knowledge of all the current trends, advancements, and
skillsets—and has clarity of purpose and vision.

A Manager controls or directs people/resources in a group according to

principles or values that have been established. A manager relies on control
whereas a leader inspires trust. Managers are required by their job description
to establish control over employees which, in turn, help them develop their
own assets to bring out their best. Thus, managers have to understand their
subordinates well to do their job effectively

A manager is the member of an organization with the responsibility of

carrying out the four important functions of management: planning, organizing,
leading, and controlling.

Most managers also tend to be leaders, but only IF they also adequately
carry out the leadership responsibilities of management, which include
communication, motivation, providing inspiration and guidance, and
encouraging employees to rise to a higher level of productivity.
 Unfortunately, not all managers are leaders. Some managers have poor
leadership qualities, and employees follow orders from their managers
because they are obligated to do so—not necessarily because they are
influenced or inspired by the leader.

Managerial duties are usually a formal part of a job description;

subordinates follow as a result of the professional title or designation. A
manager’s chief focus is to meet organizational goals and objectives; they
typically do not take much else into consideration. Managers are held
responsible for their actions, as well as for the actions of their subordinates.
With the title comes the authority and the privilege to promote, hire, fire,
discipline, or reward employees based on their performance and behavior.

Leaders have a tendency to praise success and drive people, whereas

managers work to find faults. They paint a picture of what they see as possible
for the company and work to inspire and engage their people in turning that
vision into reality. Rather than seeing individuals as just a particular set of
skills, they think beyond what they do and activate them to be part of
something much bigger. They’re well aware of how high-functioning teams
can accomplish a lot more when working together than individuals working
autonomously are ever able to achieve.

For both sides to understand what they have to do, and to achieve
excellence in doing it, they need to comprehend the essence of the difference
between them. This is a matter of definition – understanding how the roles are
different and how they might overlap. Managers, on the other hand, will focus
on setting, measuring and achieving goals by controlling situations to reach or
exceed their objectives.

Managers are the people to whom this management task is assigned and
it is generally thought that they achieve the desired goals through the key
functions of planning and budgeting, organizing and staffing, problem solving
and controlling. Leaders on the other hand set a direction, align people,
motivate and inspire (Kotter, 2001). Other researchers consider that a leader
has soul, the passion and the creativity while a manager has the mind, the
rational and the persistence. A leader is flexible, innovative, inspiring,
courageous and independent and at the same time a manager is consulting,
analytical, deliberate, authoritative and stabilizing (Capowski, 1994). The most
important differences between leaders and managers concern the workplace
and are concluded in table.

https://culctanadume.wordpress.com/2014/03/03/most-effective-leaders
hip-style-to-managing-the-work-of-subordinates/
Five competencies required of a leader.

1. An Ability to Grow & Adapt

The ability to continue to learn and gain competence is a

characteristic that often sets exceptional leaders apart from their
counterparts that hit a “performance plateau” earlier in their careers. The
most effective leaders were those who could learn from their experiences
to grow and adapt to their roles.

2. Action Orientation

Action orientation is the ability to maintain a sense of urgency to

complete a task and acting decisively to implement solutions and resolve
crises.

Many of the leaders across all levels of management in the

organizations surveyed displayed this competency—helping them and
their teams complete tasks and meet goals in a timely manner. In all three
levels of management, this leadership competency was rated as either the
first or second highest-rated of the 46 different competencies investigated
in the study.

3. Building Teams

Team building consists of many separate (but closely related) skills in

one core competency, including the leader’s ability to:
 i. Increase mutual trust;

ii. Encourage cooperation, coordination and identification with the team;

iii. Encourage information sharing among individuals;

iv.Include others in processes and decisions.

Effective leaders are able to perform all of the above tasks—helping

create teams that work well together to meet both short-term and strategic
goals.

4. Building Trust & Personal Accountability

Building trust and demonstrating personal accountability involves the

leader keeping promises and honoring commitments, accepting responsibility
for their own actions, being honest and truthful when communicating
information, and assuming responsibility for dealing with problems, crises, or
issues when they arise.

5. Critical & Analytical Thinking

Critical and analytical thinking involves the leader’s ability to maintain an

objective view of situations by questioning basic assumptions and applying
sound reasoning. Understanding the complexity of an issue and breaking it
down into manageable pieces and understanding the implications of data or
information.

Leaders who are able to use critical thinking can objectively assess
situations and make impartial, well-reasoned decisions. The trait ranks highly
for all manager types—placing in the top 10 competencies for each.
I. Strategic Planning — There are four critical decisions every business
must get right in order to succeed — People, Strategy, Execution and
Cash. There is also a definitive set of three fundamental habits that
make it easier to manage your business. In addition, there are two
drivers and one essential tool, which align everyone and get them on
the same page. This highly acclaimed, proven 4-3-2-1 business
framework produces the strategic direction and results every
organization seeks.

II. Developing a cohesive vision for the future — Successful succession

means key people and high-potential employees own the company
with their hearts and minds before ever being asked to own it with
their wallets. To start the process, begin by inviting up-and-comers
into the company’s strategic planning process.
 https://smallbusiness.chron.com/four-basic-elements-organizationa
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