Management 

Theory (8506)    Page|1 
 

MANAGEMENT THEORY & PRATICE (8506)

Submitted To: Sir Zeeshan Ahmad

Submitted By: Kashif Sattar

Class: M.Com
Roll No: BY 521012
Registration No: 19ple13815
Semester: (Autumn 2019)
Allama Iqbal Open University
Center Of Information & Technology
ISLAMABAD

 
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Q1. How `do `you `explain `the `concept `of `management, `discuss `in `detail? `What `are `the
different `types `of `managers? `Explain `with `the `help `of `examples.
`

INTRODUCTION:
Management `is `to `forecast, `to `plan, `to `organize, `to `command `to `coordinate `and `control
activities `of `others. `Management `is `an `essential `tool `for `an `organization `and `necessary `to
operate `all `types `of `business. `Good `management `is `the `backbone `of `successful organizations.
CONCEPTS OF MANAGEMENT
Management `is `a `universal `phenomenon. `It `is `an `art `of `creating `an `environment `in `which
people `can `perform `and `cooperate `toward `attainments `of `group `goals. `Management `is `the
administration `of `an `organization. `Management `comprises `of `planning, `organizing, `staffing,
directing `and `controlling `the `activities `of `a `business. `The `concepts `of `management `are
defined `as `follows:

Planning:
Planning `is `the `primary `function `of `management. `Planning `defines `goals, `establishing
strategy `and `developing `plans `to `coordinate `activities. `Planning `is `also `determined `the
objectives `and `formulation `of `plans, `policies, `procedures `and `standards `needed `to `achieve the
desired `organization `objectives. `Its `purpose `is `to `ensure `optimum `utilization `of `human `and
economic `resources `in `the `business `processes. `It `precedes `all `other `activities `of `the `business
undertaking. `It `is `the `process `of `charting `out `the `path `for `attaining `the `ultimate `purpose `of
business `operations `by `outlining `the `sequence `of `events `forecast `with `reasonable `degree `of
certainty. `Planning `requires `both `creativity `and `analysis `in `defining `business `opportunities
and `constraints.
Organizing:
Organizing `is `the `second `function `of `a `manager. `Organizing `is `the `function `of `management
which `follows `planning. `It `is `a `function `in `which `the `synchronization `and `combination `of
human, `physical `and `financial `resources `takes `place. `All `the `three `resources `are `important `to
get `results. `Therefore, `organizational `function `helps `in `achievement `of `results `which `in `fact

 
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is `important `for `the `functioning `of `a `concern. `It `determines `what `needs `to `be `done, `how `it
will `be `done `and `who `will `do `it. `Organizing `human `and `material `resources `or `inputs `are
allocated `to `the `various `units `and `relationships `are `established `among `the `sub `units.
Organizing `is `the `process `of `developing `a `structure `among `people, `function, `and `physical
facilities `to `execute `the `plans `and `achieve `stated `objectives. `Hence, `a `manager `always `has `to
organize `in `order `to `get `results.
A `manager `performs `organizing `function `with `the `help `of `following `steps:-
 Identification `of `activities
 Departmentally `organizing `the `activities
 Classifying `the `authority
 Co-ordination `between `authority `and `responsibility
Staffing:
Staff `management `is `important `because `this `is `the `backbone `of `any `business `and `poor
industrial `relations `can `mean `that `productivity `will `be `low `and `staff `turnover `will `be `high. `If
you `want `the `most `from `your `employees `then `it `is `vital `that `all `consideration `and `care `is `put
into `good `staff `management. `To `gain `maximum `output `management `appoints `competent
personnel `who `work `with `devotion `and, `trained `them `to `meet `organization `targets `and
ensuring `that `they `are `a `satisfied `and `happy `workforce. `Staffing `is `defined `as `a `managerial
function `of `filling `and `keeping `filled `the `positions `in `the `firm `structure. `The `most `successful
business `around `the `world `are `known `for `their `imaginative `and `effective `approach `to `labor
management. `One `of `the `most `important `staff `management `skills `is `being `able `to `create `an
environment `where `your `workers `can `use `their `skills `to `the `fullest. `In `order `to `create `this
environment, `it `is `necessary `for `the `employee `to `feel `that `their `contribution `is `valued `and
that `they `are `respected. `If `staff `get `no `recognition `for `their `extra `effort `they `are `unlikely `to
continue `for `long.
Directing:
Directing `is `a `key `element `in `the `process `of `management. `A `process `or `function `closely
related `to `determining `how `you `proceed `with `the `business `operations `is `referred `to `as
Direction. `Instructing, `guiding, `supervising `and `influencing `people `enabling `them `to `achieve
organizational `objectives `is `called `directing. `In `the `process `of `directing, `employees `are
coached `to `develop `communication `and `are `encouraged `to `accomplish `their `goals.
Management `plays `a `significant `role `in `directing, `stimulating `and `motivating `people `in `the
organization `to `undertake `willingly `the `desired `actions `as `per `predetermined `plans `and

 
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objectives. `Motivation `is `an `integral `part `of `direction `to `assure `desired `results `and `resolve
conflicts. `Direction `is `composed `of `four `important `elements:
 Supervision
 Motivation
 Leadership
 Communication
Controlling:
The `fifth `and `final `function `of `management `is `that `they `are `accomplished `as `they `planned.
Controlling `incorporates `the `establishment `of `standards, `measurements `and `comparison `of
actual `results. `Controlling `consists `of `verifying `whether `everything `occurs `in `accordance
with `the `plans `adopted, `instructions `issued `and `principles `established. `Controlling `ensures
that `there `is `effective `and `efficient `utilization `of `organizational `resources `to `achieve `the
planned `goals. `Controlling `measures `the `deviation `of `actual `performance `from `the `standard
performance, `discovers `the `causes `of `such `deviations `and `helps `in `taking `corrective `actions.
Controlling `has `two `basic `purposes:
 Facilitation `in `co-ordination
 Effective `Planning
TYPES OF MANAGERS
A manager’s job is very crucial in an organization. He is a planner, coordinator, producer and
a marketer. The success of an organization will depend upon the caliber of the manager in
utilizing the resources for achieving business goals. A manger is a pivotal figure in the task of
creating wealth. There are rapid changes in technology, methods of production, marketing
techniques, financial set up and the manager should be competent enough to cope with the
changes. Manager is an organizational person who incorporates and coordinates the work of
others. Managers have formal authority to use organizational resources to make decisions.
There are three levels of managers which are ranked in order of importance:
 Top Level Managers
 Middle Level Managers
 First Level Managers

 
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Top Level Managers:

As the word indicate that this type of managers is the bosses of the organization. Executive
vice presidents and division heads would also be part of the top management team based on
the size and type of organization. They are visionary and set long term plans with strategies.
They also pay attention on external environment, profit, stakeholders, demand, supply, public
relations and proposals for law.
Role of Top Level Managers:
 Top management lays down the objectives and broad policies of the enterprise.
 It issues necessary instructions for preparation of department budgets, procedures,
schedules etc.
 It prepares strategic plans & policies for the enterprise.
 It appoints the executive for middle level i.e. departmental managers.
 It controls & coordinates the activities of all the departments.
 It is also responsible for maintaining a contact with the outside world.
 It provides guidance and direction.
 The top level managers are also responsible towards the shareholders for the
performance of the enterprise.
Examples of Top Level Managers:
 Chairperson of the board
 President
 Vice president
 Chief executive officer (CEO)
 Chief operations officer (COO)
 Chief marketing officer (CMO)
 Chief technology officer (CTO)
 Chief financial officer (CFO)

Middle Level Managers:

“An employee of an organization or business who manages at least one subordinate level of
managers and reports to a higher level of managers within the organization is called middle
line managers. The duties of a middle manager typically include carrying out the strategic
directives of upper level managers at the operational level, supervising subordinate managers
and employees to ensure smooth functioning of the enterprise.

 
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Middle managers are responsible for carrying out the goals set by top management. They are
source of contact between the top managers and the first line managers. They are involved
between supervisory level and top level of the organization. Middle managers receive broad
strategic plans from top managers and turn them into operational blueprints with certain
achievements. They are also suppose to encourage, support, and foster intelligent employees
of the organization. A vital role of middle managers is to provide guidance to first line
managers and top line managers to gain positive performances, remove all barriers and meet
desired profitability. Middle line managers are more involved in day to day working of a
company.
Role of Middle Level Managers:
 They execute the plans of the organization in accordance with the policies and
directives of the top management.
 They make plans for the sub-units of the organization.
 They participate in employment & training of lower level management.
 They interpret and explain policies from top level management to lower level.
 They are responsible for coordinating the activities within the division or department.
 It also sends important reports and other important data to top level management.
 They evaluate performance of junior managers.
 They are also responsible for inspiring lower level managers towards better
performance.
Examples of Middle Level Managers:
 General managers
 Regional managers
 Departmental managers
First Level Managers:
“According to Cambridge Dictionary A manager at the lowest level in an organization, who
deals directly with the employees is called first level managers”. First line managers are also
called supervisors. First line manager is a closest contact with the workers. They are directly
making sure that organizational objectives and plans are implemented effectively. This type
of managers are focused exclusively on the internal issues of the organization and are the first
to see problems with the operation of the business, i.e unskilled labor, low quality materials,
machinery breakdowns, or other procedures that slow down production. First line managers
are frequently communicated with middle management. They assign tasks, manage
workflow, monitor the quality of work, deal with employee problems, and keep the middle

 
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managers and executive managers informed of problems and successes at ground level in the
company. The first line manager is managing the people who perform the work that produces
the company's products and services.
Role of First Level Managers:
 Assigning of jobs and tasks to various workers.
 They guide and instruct workers for day to day activities.
 They are responsible for the quality as well as quantity of production.
 They are also entrusted with the responsibility of maintaining good relation in the
organization.
 They communicate workers problems, suggestions, and recommendatory appeals etc
to the higher level and higher level goals and objectives to the workers.
 They help to solve the grievances of the workers.
 They supervise & guide the sub-ordinates.
 They are responsible for providing training to the workers.
 They arrange necessary materials, machines, tools etc for getting the things done.
 They prepare periodical reports about the performance of the workers.
 They ensure discipline in the enterprise.
 They motivate workers.
 They are the image builders of the enterprise because they are in direct contact with
the workers.
Examples of First Level Managers:
 Assistant managers
 Project manager
 Functional manager
 Shift managers
 Production supervisor
 Foremen
 Section Supervisor or office managers.
CONCLUSION:
Hence, `management `is `about `getting `things `done. `Management `skills `and `functions `are `an
important `attribute `of `an `organization `that `can `make `or `break `it. `The `argument `regarding
which `theory `sums `the `whole `job `more `completely `is `less `important `than `deriving `strategies
that `can `help `managers `undertake `various `practical `functions `at `workplace. `Successful
managers `are `self-made, `through `continuous `and `never-ending `work `on `themselves. `

 
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Q2. What `are `the `fundamentals `of `decision `making `process? `Differentiate `between
programmed `un-programmed `decisions. `Illustrate `your `answer `with `examples.
`

INTRODUCTION:
Decision `making `is `the `process `of `making `choices `by `identifying `a `decision, `gathering
information, `and `assessing `alternative `resolutions. `Organizations `are `generally `operated `by
people `making `decisions. `In `a `successful `organization `a `manager `plans, `make `strategies,
organizes, `staffs, `leads, `and `controls `his `team `by `effective `decisions. `The `effectiveness `and
quality `of `those `decisions `define `long `term `life `of `an `organization. `Sometimes `decision
making `process `is `extremely `short `based `on `evaluating `situations.
FUNDAMENTALS OF DECISION MAKING PROCESS
An `ideal `decision `environment `would `include `all `possible `information, `all `of `it `accurate `and
every `possible `alternatives. `Decision `making `is `an `essential `skill `for `an `organization. `We
have `frequently `make `decisions `that `are `much `larger `in `nature `and `it `pays `to `have `some
knowledge `and `an `educated `approach `in `order `to `be `able `to `make `decisions `both `efficiently
and `effectively. `The `completely `decision `making `process `is `based `upon `the `correct
information `being `available `to `the `right `people `at `the `right `times. `The `decision‐making
process `involves `the `following `steps:
 Understand `the `problem or Objective.
 Identify `limiting `factors.
 Develop `potential `alternatives.
 Analyze `the `alternatives.
 Select `the `best `alternative.
 Execute `the `decision.
 Evaluate the outcome
 Establish `a `control `and `evaluation `system.
Define the problem:
The most important element is to fully understand what your are trying to achieve. The
decision making `process `begins `when `a `manager `identifies `the `real `problem. `The problem
`

should `be `define `properly `and `accurately `whereas `decision `making `process `will `be based `on
`

incorrect `initiative. `Manager `may `identify `true `problem `in `a `certain `situation `by analyzing
`

the `problem `separately `from `its `symptoms `A `successful `manager `does `not `just rely on
`

symptoms; `he `actually `works `to `uncover `the `elements `that `cause `these `symptoms. `To make
`

 
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effective `decisions, `managers `need `to `have `an `ideal `resources, `time, `information, employees,
`

equipment, `and `supplies. `Apparently, `managers `are `working `in `an `environment that
`

normally `does `not `provide `any `ideal `resources. `For `example, `they `may `have `not `a proper
`

budget, `may `have `not `the `most `correct `information `or `any `surplus `time. It is very significant
`

that you are targeting the right issue:

 What exactly is the problem?
 Why the problem should be solved?
 Who are the affected parties of the problem?
 Does the problem have a deadline or a specific time line?
Identify limiting factors:
Limiting factors look at the limiting factors in scarce resources. Situations and determines the
optional production plan. A limiting factor is any scarce factor that prevents the organization
from expanding its activities. A limiting factor results in maximum capacity for companies
because of the unavailability of the resources. Time `pressures `frequently `cause `a `manager `to
` move `ahead `after `considering `most `clear answers. `However, `successful `problem `solving
requires `thorough `examination `of `the challenge, `and `a `quick `answer `may `not `result `in `a `final
`

solution. `Therefore, `a `manager should `think `and `investigate `many `alternative `solutions `to `a
`

single `problem `before `making `a final `decision.

`

Develop potential alternatives/Brainstorming:

Alternatives are most affectively generated by having one or more brainstorming sessions.
This ensures that the alternatives being generated are not prematurely swayed into a
particular line of thought. Brainstorming `is `a `good `technique `for `identifying `alternatives.
One `of `the `significant methods `for `developing `alternatives `is `through `brainstorming, `where `a
`

community `of workers `get `together `to `generate `ideas `and `alternative `solutions. `The
`

assumption `behind brainstorming `is `that `the `group `dynamic `stimulates `thinking, `one `person's
`

ideas, `no `matter how `extreme, `can `generate `ideas `from `the `others `in `the `group.
`

Brainstorming `normally demands `30 `minutes `to `an `hour. `In `most `cases, `generating `all
`

possible `alternatives `is `not achievable `but `this `should `be `the `goal `so `that `a `full `spectrum `of
`

potential `alternatives `is captured.

`

Analyze the alternatives.

Alternatives analysis is the evaluation of the different choices available to achieve a
particular project management objective. It is an analytical comparison of the different
factors like operational cost, risks, effectiveness as well as the short fall in an operational

 
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capability. Once `you `are `confident `that `all `alternatives `or `at `least `enough `alternatives `have
been considered, `the `alternatives `need `to `be `compared `and `evaluated `against `your `decision
`

criteria. `Always `remember `judgment `principles `and `decision `making `criteria `to `evaluate `any
alternative. `Moreover, `experience `and `effectiveness `of `the `judgment `principles `play `a `unique
role. `The `important `thing `is `to `consider `all `the `implications `that `will `result `from `each
alternative.
Select the best alternative
Changes in the external environment pose different alternatives for organizations to carry
out a particular task. Different alternatives are evaluated against factors like cost, risks and
benefits involved in following a specific course of action and the best alternative is chosen.
Selection `of `the `best `alternative `is `an `informed `decision. `It `is `a `key `to `gain `desirable `goal
based `on `a `method `to `get `and `select `the `best `alternative.
Evaluate the outcome:
Its hard enough for an individual to choice a decision. Evaluate the outcome of your
decision. See whether there is anything you should learn and the correct in future decision
making. This is one of the best practices that will improve your decision making skills.
Execute the decision:
Convert `your `decision `into `a `strategy `or `a `sequence `of `activities. `Accomplish `your `plan `by
yourself `or `with `the `help `of `your `workers `or `subordinates. `Structured `decision `making
requires `analysis `of `the `four `decision `components `which `are `context, `objective, `options `and
criteria. `Evaluate `the `outcome `of `your `decision. `See `the `impacts `of `your `decisions `and `then
correct `in `future `decision `making. `In `a `nut `shell, `this `is `one `of `the `best `practices `that `will
improve `your `decision `making `skills.
Establish a control and evaluation system:
It `is `the `process `of `determining `the `effectiveness `of `a `given `strategy `in `achieving `the
organizational `objectives `and `taking `correct `actions `whenever `required. `Control `can `be
exercised `through `formulation `of `contingency `strategies `and `a `crisis `management `team.
There `may `be `following `types `of `control:
 Operational `Control
 Strategic `Control
Operational Control:
It `is `aimed `to `at `allocation `and `use `of `organizational `resources `through `evaluation `of
performance `of `organizational `units `and `divisions `to `assess `their `contribution .

 
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Strategic Control:
It `takes `into `account `the `changing `assumptions `that `determine `a `strategy, `continually
evaluate `the `strategy `as `it `is `being `implemented `and `take `the `necessary `steps `to `adjust `the
strategy `to `the `new `requirements. `
DIFFERENTIATE BETWEEN PROGRAMMED AND UN-PROGRAMMED
DECISIONS
The `Programmed `decisions `in `Management `of `a `business `are `concerned `with `the `routine
problems. `They `are `adopted `at `lower `level `of `managements. `Un `programmed `decisions `are
sudden `and `not `occur `day `to `day `basis.

PROGRAMMED DECISIONS UN-PROGRAMMED DECISIONS

Structural and repetitive
These `decisions `are `concerned `day `to `day These `decisions `are `concerned `with `unique
problems. `They `are `always `structural `and and `sudden `problems. `They `are `non
`

repetitive. structural `and `non `repetitive.

`

Short and long term impacts

Such `types `of `decisions `are `normally Such `decisions `are `almost `complex `and
simple `and `have `s `short `impact. have `long `term `effects.
`

Easy access
These `problems `information `are `easily To `get `information `about `these `problems
available and
` can
` be
` processed
` in
` are `not `easily `available `and `complex
`

predefined `way. oriented.

`

Procedures and Judgment

It `takes `a `short `time `and `effort `as `they `are They `demand `high `level `of `deliberation
predetermined `rules `and `procedures and `executive `judgment.
`

Level of organization
They `may `happen `in `lower `level `of They `are `taken at
` higher
` level
` `of
management. organization
`

Rules and standards

Problems are
` ` solved by
` ` managerial Problems `are `solved `based `on `policies,
initiative. standard `and `rules.
`

Examples
Deciding `to `reorder `officer `supplies Brand `image `and `effective `salesmanship

 
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Organizational `decisions Upgrade `technology `and `quality `control

Operational `decisions Expenditure `Strategic `decisions,
Research `decisions Crisis `intuitive `decisions
Opportunity `decisions. Problem `solving `decisions.

Q3: What `do `you `know `about `planning, `discuss `its `approaches? `What `tools `are `used `for
planning `by `the `managers?
`

INTRODUCTION:
Planning `is `the `process `of `thinking `about `the `activities `required `to `achieve `a `desired `goal. `It
is `most `important `factor `to `achieve `desired `results. `It `involves `the `creation `and `maintenance
of `a `plan. `Planning `is `the `act `of `researching, `analyzing, `anticipating `and `influencing `change
in `our `society. `
DEFINITION OF PLANNING
“A `basic `management `function `involving `formulation `of `one `or `more `detailed `plans `to
achieve `maximum `balance `of `need `or `demands `with `the `available `resources”.
According to Mitchell 2002,6:
“Planning `is `usually `interpreted `as `a `process `to `develop `a `strategy `to `achieve `desired
objectives, `to `solve `problems `and `to `facilitate `action”.
According to Koontz & O'Donell:
“Planning `is `deciding `in `advance `what `to `do, `how `to `do `and `who `is `to `do `it. `Planning
bridges `the `gap `between `where `we `are `to, `where `we `want `to `go”.

APPROACHES REGARDING PLANNING

To `gain `goal `in `business `different `approaches `should `be `adopted. `It `varies `based `on `things
and `situations. `For `instance, `planning `an `engineering `structure `such `as `a `bridge `is `very
different `from `planning `a `watershed `complex. `Planning `approaches `are `discussed `as `under:
 Continuous `and `flexible `approach
 System `approach
 Comprehensive `approach
 Integrated `Approach
 Environment `and `sustainable `approach
 Community `approach
 Implementable `approach
Continuous and flexible approach:

 
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Planning `should `be `done `with `continuous `monitoring `and `feedback `on `recent `development.
Flexibility `means `the `ability `adopt `changing `forces. `Valued `personnel `possessing `flexible
thinking `are `more `reliable `to `employers.
System approach:
A `system `approach `is `normally `used `to `assess `market `which `ultimately `influences `the
profitability `of `the `organization. `A `thought `in `the `management `field `which `stresses `the
interactive `nature `based `on `external `and `internal `factors `in `an `organization. `
Comprehensive approach:
The `Comprehensive `Approach `provides `an `overall `concept `for `policy `and `action `in `national
and `international `disaster `and `clash `management. `It `is `playing `vital `role `in `resolving `conflict
contributing `international, `European, `and `German `peace `and `security.
Integrated Approach:
It `allows `students `to `connect `in `determined, `relevant `learning. `The `integrated `approach `help
to `teaching `technology `combines `content `area `instruction `with `computer `skills.
Environment and sustainable approach:
Environment `approach `providing `opportunities, `support, `and `cues `to `help `people `develop
improved `behaviors `through `policy `and `changes `to `physical `and `social `environments.
Community approach:
Maximum `involvement `of `the `local `community `in `the `planning `and `decision `making `process
and `there `is `a `maximum `community `participant `in `the `actual `development `and `management
of `economic `benefits.
Implementable approach:
A `type `of `planning `technique `where `the `strategies `and `plans `are `realistic `and `attainable. `This
approach `refers `to `organized `activities `pertaining `to `development `and `planning `
PLANNING TOOLS USED BY MANAGERS:
Many `different `methods `for `planning `adopted `to `gain `desirable `outcome `and `drawbacks `in
different `situations. `One `technique `will `not `be `suitable `for `every `situation, `a `number `of `tools
will `normally `require `for `a `successful `overall `strategy. `There `are `different `methods `apply `to
cover `different `goal, `and `based `on `areas `of `the `business `which `are `discussed `below:i
 Strategic `Planning
 Action `Planning
 Tactical `Planning
 Operational `Planning

 
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 Assumption-based `Planning `(ABP)

 Contingency `Planning
Strategic Planning:
Strategic `planning `ensure `that `employees `are `focused `and `resourceful `toward `a `common
achievement. `In `an `organization `agreement `are `made `about `following `of `directions.
Predictions `regarding `overall `achievements `and `strategic `plan `are `finally `decided.
Action Planning:
Despite `strategic `planning, `action `planning `is `focused `on `day `to `day `basis. `They `set `out `a
time `table `and `all `activities `are `fully `organized. `This `helps `them `to `pay `attention `on `the work
assigned. `Moreover, `this `may `also `increase `the `levels `of `efficiency `and `motivation. `
Tactical Planning:
Tactful `planning `develops `a `strategic `plan `already `set `out `to `accomplish `short-term `actions
and `plans. `It `is `normally `started `by `lower-level `managers `as `they `have `enough `knowledge `of
their `departments `and `day-to-day `business `activities. `
Operational Planning:
It `set `out `different `functions `of `a `business, `for `example `marketing `with `the `overall
achievements `and `objectives `of `a `business. `Planning `should `be `simple `and `clear `so `it `will `be
easily `understood `and `distributed `among `the `business. `
Assumption based Planning (ABP):
This `type `of `planning `based `on `assumptions `about `the `future `and `identifying `these
assumptions `are `essential `to `make `a `plan. `In `case `of `any `assumption `not `occurred `in
business `as `predict `then `what `the `parameters `are `how `to `react `in `this `situation.
Contingency Planning:
In `this `planning `situation `are `unusual `and `sudden. `This `may `occur `when `a `supplier `suddenly
closing `down, `damage `or `loss `of `property `or `a `variation `in `government `policies. `These `are
often `unavoidable `and `plan `is `made `as `risk `highlighted. `
CONCLUSION:
A `business `cannot `achieve `desired `goals `without `effective `planning.. `Effective `planning `can
be `done `by `using `all `techniques `that `we `discussed `above, `as `it `is `a `key `for `success `of `all
organization. `Simplicity `and `clarity `is `a `key `of `a `effective `planning `as `it’s `easily `understood
by `all `subordinates `or `others.

 
Management    Page|14 

Q4. Describe `the `concept `of `authority `and `delegation `of `authority `in `detail? `In `practice,
what `are `the `obstacles `faced `by `the `top `management `in `delegation `of `authority?
`

INTRODUCTION:
Power `is `something `that `is `referred `to `as `the `ability `to `influence `the `attitude `or `behavior `of `any
individual. `Authority `is `generally `a `representation `of `someone’s `position. `The `process `of
assignment `of `certain `work `to `personnel `within `the `organization `and `giving `them `the `right `to
perform `those `works `is `delegation. `Delegation `of `Authority `means `division `of `authority `and
powers `to `the `subordinate. `Delegation `is `refers `entrusting `someone `to `do `parts `of `your `job.
Powers `are `sub `divided `and `sub `allocated `to `downward `to `subordinates `to `achieve `effective
results `in `accordance `with `delegation `of `authority. `
Concept of Authority
It `is `derived `from `multiple `sources `like `seniority, `technical `competence, `etc. `The `power `of `a
manager `is `considered `as `their `ability `to `ask `the `subordinates `whatever `they `wish `them `to `do.
Power `is `compared `to `an `authority `in `the `real `world. `The `manager’s `power `can `be `measured `in
his `ability. `There `are `certain `characteristics `that `the `concept `of `power `follows:
Relationship between the `two people:
Authority `is `considered `as `a `relationship `between `the `two `people `– `the `subordinates `and `their
superior. `The `people `with `superiority `frames `the `decision `and `transmits `it. `They `think `that `the
subordinates `will `accept `these `decisions `and `executes `them.
Legitimate:
The `person `who `is `given `a `position `of `authority `is `legitimate `and `legal. `This `position `is
supported `by `law, `tradition, `and `standards `of `authenticity. `Thus, `authority `is `also `considered `as
formal.
Organizational goals:
Authority `is `necessary `for `achieving `the `organizational `goals. `Thus, `the `basic `use `of `authority `is
to `influence `the `attitude `and `behavior `of `the `subordinates `in `terms `of `doing `the `right `things `at
the `correct `time.
Limits of authority:
The `person `who `has `a `position `of `authority `does `not `enjoy `it `unlimitedly. `There `are `limits `and
extents `to `which `the `position `of `authority `can `be `attained. `It `is `predefined. `The `person `with `the
authority `is `expected `to `use `it `within `the `rules, `policies, `and `regulations.
Authority `also `gives `the `person `a `right `to `make `a `decision. `Furthermore, `a `manager `can `only
decide `his `orders `about `what `his `subordinate `should `or `should `not `do. `Thus, `authority `is
exercised `using `the `decision `and `looking `when `they `are `carried `out.

 
Management    Page|15 

DELEGATION OF AUTHORITY
The `delegation `of `authority `is `a `critical `management `tactic `in `any `organization. `Many
companies, `both `small `and `big, `use `it `to `get `tasks `done. `Then, `there `are `a `lot `of `things `one
needs `to `know `before `deciding `to `delegate `duties. `One `of `the `goals `of `delegating `authorities
to `an `employee `or `a `subordinate `is `to `ensure `various `tasks `are `accomplished `efficiently `and
also `within `the `specified `time `frame. `In `this `post, `you `will `learn `about `the `meaning, `and
principles `of `delegation `of `authority.
Elements of Delegation Authority
There `are `three `elements `of `delegation `authority:
 Authority
 Responsibility
 Accountability
The Process of Delegation Of Authority
For `achieving `delegation, `a `manager `has `to `work `in `a `system `and `has `to `perform `following
steps:
 Assignment `of `tasks `and `duties
 Granting `of `authority
 Creating `responsibility `and `accountability
It `is `one `of `the `most `significant `concepts `in `management `practice, `which `affects `managerial
functions. `Delegation `of `authority `is `the `base `of `senior `personnel `relationship, `it `involves
following `steps:
Assignment of Duties:
The `delegator `first `tries `his `best `to `define `the `task `and `duties `to `the `employees. `He `also `has
to `describe `the `expected `outcome `from `the `employees. `Clarity `in `respect `of `duty `as `well `as
expected `outcome `has `to `be `the `first `step `in `delegation.
Granting of authority:
Subdivision `of `authority `takes `place `when `a `superior `divides `and `shares `his `power `with `the
personnel. `The `basic `reason `is `that `every `personnel `should `be `given `enough `independence `to
execute `the `assigned `tasked `by `his `superiors. `Authorities `and `powers `are `delegated `at `all
levels. `To `get `effective `outcome `subdivision `of `powers `is `very `necessary.
Creating Responsibility and Accountability:
The `delegation `process `does `not `end `once `powers `are `granted `to `the `personnel. `Meanwhile,
subordinates `have `to `responsible `towards `their `assigned `duties. `Hence, `delegation `of

 
Management    Page|16 

authority `is `assigning `task `to `others `and `giving `them `the `required `authority `to `perform `the
assigned `work `effectively. `Delegation `concept `has `been `occurred `due `to `the `increase `in
volume `of `business `and `its `complexity. `A `manager `needs `to `delegate `some `of `his `authority
to `subordinates `by `assigning `a `specified `responsibility. `It `is `also `important `to `complete `the
work `efficiently `and `effectively.
BARRIERS IN DELEGATION OF AUTHORITY
There `are `three `primary `barriers `to `delegation `of `authority, `which `are `described `below:
 Reluctant `to `Delegate
 Fear `of `losing `Importance
 Loss `of `Control
 Mutual `Distrust
 Fear `of `Subordinates `
 Incompetent `Subordinates
 Lack `of `Motivation
Reluctant to Delegate:
This `faith `is `repeatedly `found `among `those `managers `who `have `been `just `promoted `and
those `having `superiority `complex. `Some `managers `are `unwilling `to `hand `over `power `to
subordinates. `They `deem `that `they `can `take `a `better `decision `than `their `subordinates. `They
have `no `proper `plan `to `pass `on `power. `In `such `a `scenario, `employee `will `have `less `work `and
lose `the `obligation `to `execute `the `manager’s `decisions.
Fear of Losing importance:
Such `managers `assign `only `that `part `of `authority `to `employee `which `relates `to `their `job
dependability. `Manager’s `who `feel `comfortable `with `authority, `fear `to `hand `over `authority.
They `feel `that `it `will `decrease `their `importance. `They `always `try `to `retain `their `power `as `a
positional `superior `of `a `business.
Loss of Control:
Some `managers `think `that `they `will `lose `control `by `delegating `rights `to `their `employee. They
feel `that `if `they `delegate `authority `to `their `employee, `they `would `not `be `able `to `achieve
expected `outcome `from `subordinates. `Such `situation `arises `when `managers `are `not
possessing `ability `of `getting `the `work `done `from `others.
Mutual Distrust:
Managers `are `often `hesitant `to `pass `on `authority `to `downward `to `subordinates `if `there `is `an
environmental `distrust `in `a `business. `A `manager `must `have `confidence `in `his `own `ability `to
`

 
Management    Page|17 

guide, `help `and `control `his `employees `before `delegating `power. `If `a `manager `does `not
capable `of `making `a `sound `decision `he `does `not `believe `in `his `personnel. `He `even `does `not
take `risk `to `get `work `done `from `others.
Fear of Subordinates:
Sometimes `managers `are `reluctant `to `give `authority `due `to `fear `of `shortcomings. `They
predict `that `their `subordinates `will `perform `better `and `may `create `hurdles `in `their `career.
They `have `lack `of `confidence `and `always `reluctant `to `be `a `part `of `competitive `environment.
Incompetent Subordinates:
Due `to `lack `of `confidence `subordinates `are `often `reluctant `to `accept `delegated `powers. `They
fear `of `making `mistakes `in `their `work. `Managers `should `build `the `confidence `of `their
employee `by `guiding `them `and `developing `a `supportive `environment. `
Lack of Motivation:
Subordinates `are `also `discourages `due `to `lack `of `motivational `environment `and `hence `they
shows `their `unwillingness `to `take `responsibility `Such `circumstances `arises `and `no `reward `of
performance. `
CONCLUSION:
Managers `can `gain `expected `result `by `delegating `his `authority `to `downward `to `subordinates.
By `delegating `authorities, `subordinates `may `become `confident `and `belief `in `their
capabilities. `Managers `can `gain `confidence `of `their `subordinates `by `rewarding `them `based
on `their `performance `that `ultimately `encourages `them `to `enhance `their `abilities.

Q5. Define `leadership. `Discuss `various `approaches `to `leadership `in `detail.
INTRODUCTION:
Leadership `is `the `art `of `motivating `a `group `of `people `to `act `towards `achieving `a `common
goal. `Leaders `may `achieve `desired `goal `by `influencing `employee `behaviors `in `many `ways. `It
plays `a `unique `role `in `employee `performance `and `efficiency.
DEFINITION OF LEADERSHIP
According to Rauch & Behling:
“Leadership `is `defined `as `the `process `of `influencing `the `activities `of `an `organized `group
toward `goal `achievement”.

 
Management    Page|18 

According to Lao Tzu, (Chinese founder of Taoism):

"A `leader `is `best `when `people `barely `know `that `he `exists, `not `so `good `when `people `obey
and `acclaim `him, `worst `when `they `despise `him. `'Fail `to `honour `people' `they `fail `to `honour
you. `But `of `a `good `leader, `who `talks `little, `when `his `work `is `done, `his `aim `fulfilled, `they
will `all `say, `'We `did `this `ourselves”.
`

According to Conger, J.A. (Learning to Lead’ San Francisco):

"Leaders `are `individuals `who `establish `direction `for `a `working `group `of `individuals `who
gain `commitment `from `this `group `of `members `to `this `direction `and `who `then `motivate `these
members `to `achieve `the `direction's `outcomes”.
DIFFERENT APPROACHES TO LEADERSHIP

Leaders and followers are never at the same level of thinking, understanding or acting.
According to Michael Hackman and Craig Johnson, “Over the past 100
years, five primary approaches for understanding and explaining leadership have evolved:
 The Traits Approach
 The Contingency/Situational Approach
 The Functional Approach
 The Relational Approach
 Transformational Approach
Trait Approach:
The first major approach to leadership is commonly referred to as the trait approach to
leadership because the approach looks for a series of physical, mental, or personality traits
that effective leaders possess that neither non-leaders nor ineffective leaders possess. We start
with this approach to leadership predominantly because it’s the oldest of the major
approaches to leadership and is an approach to leadership that is still very much in existence
today. The first major study to synthesize the trait literature was conducted by Ralph Stogdill
in 1948.Stogdill, R. M. (1948). Over the years, researchers have tried to identify the traits
that are associated with effective leadership. These typically fall into the following
categories:
 Drive:
Drive represents a constellation of traits reflecting a high level of motivation. It includes
such characteristics as ambition, energy, initiative, tenacity and a strong need for
achievement. Good leaders are tirelessly persistent in their endeavors. They do not fear
challenges and are doggedly determined to succeed.

 
Management    Page|19 

 Desire to Lead:
Successful leaders want to work their way to the top of an organization. They're
ambitious about their work and have a desire to get ahead. They set challenging goals
for themselves and others and want everyone within their scope of influence to succeed
and play a role in moving the organization forward. They show initiative and make
deliberate choices instead of just waiting for things to happen.
 Honesty and Integrity:
Successful leaders are truthful in act and deed. Their leadership may be undermined if
they do not act consistently. Many successful leaders have an open style of leadership
where workers are informed about what is happening in the company, and alternative
views are taken into account. Powerful leaders are accountable for their actions and do
not point the finger of blame.
 Self Confidence:
Being a leader is a tough job, and leaders must have faith in their own abilities if they
are to succeed. Good leaders are able to be assertive and decisive in their decision
making (without being pushy), and they must have the self-assurance to be able to
change their minds and adapt quickly to changing situations.
 People Skills:
Not only is the leader's self-confidence important, but so is other people's perception of
it. Thus, a great leader must be able to persuade and influence people. They must be
able to earn the trust of their followers and motivate them to do their best. Good leaders
take account of other people's needs and empower them to succeed.
 Emotional Stability:
Strong leaders are able to control their emotions and avoid flying off the handle. They
make smart, rational choices that move the organization forward and are not swayed by
their personal feelings on a matter. Powerful leaders remain calm in a crisis and are
predictable in their responses.
 Competency Traits:
Great leaders have a keen mind, are skilled in the role and have deep knowledge of the
business. They have the "right stuff" from a business experience point of view as well
as behaviorally. The people within their purview can look upon the leader as a role
model for how things should be done.

 
Management    Page|20 

The Situational Approach:

The behavioral approach to leadership involves attempts to measure the categories of
behavior that are characteristic of effective leaders. Two research projects, one at Ohio State
University and another at the University of Michigan, are most commonly associated with the
behavioral approach to leadership. The results of both research programs suggested that the
behavior of effective leaders could be classified into two general categories. The behavioral
approach dominated leadership research throughout most of the 1950s and 1960s.
 Positive and Negative Leaders or Bosses:
There are different ways in which leaders approach people to motivate them. If the
approach emphasizes rewards, the leader uses positive leadership. If the approach
emphasizes penalties, the leader is applying negative leadership. Negative leaders should
be called bosses rather than leaders:
 Autocratic or Authoritarian leadership:
An autocratic leader centralizes power and decision-making in himself. He gives orders,
assigns tasks and duties without consulting the employees. The leader takes full authority
and assumes full responsibility.
Autocratic leadership is negative, based on threats and punishment. Subordinates act as he
directs. He neither cares for their opinions nor permits them to influence the decision. He
believes that because of his authority he alone can decide what is best in a given situation.
The employees work as hard as is necessary to avoid punishment. They will thus produce
the minimum, which will escape punishment.
 Democratic or Participative leadership:
Participative or democratic leaders decentralize authority. It is characterized by
consultation with the subordinates and their participation in the formulation of plans and
policies. He encourages participation in decision-making. Taylor’s scientific management
was based on the inability of the ordinary employees to make effective decisions about
their work.
 Free rein leadership:
Free rein leaders avoid power and responsibility. The laissez-faire or non-interfering type
of leader passes on the responsibility for decision-making to his subordinates and takes a
minimum of initiative in administration. He gives no direction and allows the group to
establish its own goals and work out its own problems.
 Paternalistic leadership:

 
Management    Page|21 

Under this management style the leader assumes that his function is fatherly or paternal.
Paternalism means papa knows best. The relationship between the leader and his group is
the same as the relationship between the head of the family and the members of the
family. The leader guides and protects his subordinates as members of his family.
As the head of the family he provides his subordinates with good working conditions and
fringe benefits. It is assumed that workers will work harder out of gratitude. This
leadership style was admirably successful in Japan with her peculiar social background.
Functional leadership:
Functional leadership is model that concentrates on how leadership occurs, rather than
focusing on who does the leading. It defines the types of behaviors that guide an organization
and then looks at how those behaviors occur. Under this model, leadership is a distributed
function. People at all levels can participate in guiding the organization. The functional
leadership model looks at how these types of decisions are being mad even when there is no
single person who is acting as a leader. By focusing on the function of leadership, it is easier
to see the stimuli that are actually influencing the behavior of the organization even if the
input is coming from informal and unlikely sources. John Adair’s “three circles” have heavily
influenced the functional model of leadership. These three circles represent the areas where
leadership functions occur. Those areas are:
 Task
 Team
 Individual
Task
Completing the task or challenge faced by the group. This is one of the most commonly
associated tasks with leadership but it is important to realise that this should not be a priority,
all three are as important as the next.
Team
Creating and maintaining a sense of team or group unity and collective responsibility where
the team supports each other in achieving goals and the leader puts the group’s goals ahead of
their own priorities.
Individual
Ensuring that each individual in the group is able to meet his or her own individual
psychological needs and if appropriate physical too. So although leaders have to ensure the
group has a collective identity, they also have to help members satisfy their individual needs.

 
Management    Page|22 

The Relational Approach:

This “relational” approach to leadership was core to President Bush’s values and personality.
And in the broader world, relational leadership the longstanding and almost instinctive
cultivation of close personal and professional relationships as an entire to building alliances
and partnership is common. It is prevalent in politics, where relationships among legislators
and community members often lead to compromise, and in business, where trust is such an
essential component of partnership. It groups declarative approaches in which the main
concept is mathematical relations. In general, relational approaches can be seen as a form of
constraint solving. The basic idea is to specify the relations among source and target element
types using constraints that in general, are non executable. However, the declarative
constraints can be given executable semantics, such as in logic programming where
predicates can describe the relations. All of the relational approaches are side effect free and
in contrast to the imperative direct manipulation approaches, create target elements
implicitly. Relational approaches can naturally support multidirectional rules. They
sometimes also provide backtracking.
Transformational Approach:
Transformational leadership is defined as a leadership approach that causes change in
individuals and social systems. In its ideal form, it creates valuable and positive change in the
followers with the end goal of developing followers into leaders. Enacted in its authentic
form, transformational leadership enhances the motivation, morale and performance of
followers through a variety of mechanisms. These include connecting the follower's sense of
identity and self to the mission and the collective identity of the organization; being a role
model for followers that inspires them; challenging followers to take greater ownership for
their work, and understanding the strengths and weaknesses of followers, so the leader can
align followers with tasks that optimize their performance. The full range of leadership
introduces four elements of transformational leadership:
 Individualized Consideration:
The degree to which the leader attends to each follower's needs, acts as a mentor or coach
to the follower and listens to the follower's concerns and needs. The leader gives empathy
and support, keeps communication open and places challenges before the followers. This
also encompasses the need for respect and celebrates the individual contribution that each
follower can make to the team. The followers have a will and aspirations for self
development and have intrinsic motivation for their tasks.

 
Management    Page|23 

 Intellectual Stimulation:
The degree to which the leader challenges assumptions, takes risks and solicits followers'
ideas. Leaders with this style stimulate and encourage creativity in their followers. They
nurture and develop people who think independently. For such a leader, learning is a
value and unexpected situations are seen as opportunities to learn. The followers ask
questions, think deeply about things and figure out better ways to execute their tasks.
 Inspirational Motivation:
The degree to which the leader articulates a vision that is appealing and inspiring to
followers. Leaders with inspirational motivation challenge followers with high standards,
communicate optimism about future goals, and provide meaning for the task at hand.
Followers need to have a strong sense of purpose if they are to be motivated to act.
Purpose and meaning provide the energy that drives a group forward. The visionary
aspects of leadership are supported by communication skills that make the vision
understandable, precise, powerful and engaging. The followers are willing to invest more
effort in their tasks, they are encouraged and optimistic about the future and believe in
their abilities.
 Idealized Influence:
Provides a role model for high ethical behavior, instills pride, gains respect and trust. As a
development tool, transformational leadership has spread already in all sectors of western
societies, including governmental organizations.
CONCLUSION:
Hence, `it `is `not `easy `to `become `an `effective `leader `but `being `aware `of `different `approaches
to `leadership `allows `hopeful `leaders `to `get `to `know `the `necessary `skills `and `abilities.
`

Personnel `feature `are `necessary `to `get `their `main `goal.

`

 
Management    Page|24 

References:

1. https://www.cliffsnotes.com/study-guides/principles-of-management/decision-making-and-
problem-solving/the-decisionmaking-process
2. https://www.tutorialspoint.com/management_concepts/decision_making_process.htm
3.
file:///E:/M.Com/8504/programmed%20and%20unprogrammed%20decision%20examples%
20-%20Google%20Search.html
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%20Assignment%20Point.html
5. https://courses.lumenlearning.com/principlesmanagement/chapter/10-5-contemporary-
approaches-to-leadership/
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communication/s09-01-approaches-to-leadership.html
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contingency-planning.html
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