Lecture 1 - Managing and manager’s job

The ten basic managerial roles according to Mintzberg are:

1. Figurehead: The manager performs ceremonial and symbolic duties, such as greeting visitors
and attending ribbon-cutting ceremonies.
2. Leader: The manager motivates and encourages employees to achieve organizational goals.
3. Liaison: The manager acts as a link between people, groups, or organizations, coordinating
activities and fostering relationships.
4. Monitor: The manager actively seeks information that may be of value to the organization,
staying informed about industry trends and developments.
5. Disseminator: The manager transmits relevant information to others in the workplace, ensuring
that employees know important updates and decisions.
6. Spokesperson: The manager formally relays information to people outside the unit or
organization, acting as a company representative.
7. Entrepreneur: The manager voluntarily initiates change, such as developing new ideas for
innovation or proposing new strategies.
8. Disturbance handler: The manager helps settle disputes between various parties, such as
resolving employee conflicts or addressing customer complaints.
9. Resource allocator: The manager decides how resources are distributed and with whom he or
she will work most closely, allocating funds and assigning responsibilities.
10. Negotiator: The manager represents the organization in reaching agreements with other
organizations, such as negotiating contracts or resolving disputes.

Effectiveness & efficiency

Effectiveness

● Definition: Effectiveness is the degree to which an organization achieves its goals.

● Focus: It's about doing the right things to achieve desired outcomes.
● Examples:
○ A company meeting its sales goals.
○ A nonprofit that successfully runs a program to help the community.
○ A school that improves student test scores.

Efficiency

● Definition: Efficiency is the degree to which an organization uses its resources wisely and cost-
effectively.
● Focus: It's about doing things right and minimizing waste.
● Examples:
○ A factory that produces a high volume of products with minimal defects.
○ A hospital that reduces costs without compromising patient care.
○ A delivery company that optimizes routes to use less fuel.
 Management processes.
Management processes involve a series of actions or functions that managers perform to achieve
organizational goals. These processes can be broadly categorized into four main functions:

1. Planning: This involves setting organizational goals, developing strategies to achieve those
goals, and outlining the necessary tasks and resources.
2. Organizing: This involves creating a structure for the organization by determining the tasks to be
done, who will do them, and how those tasks will be grouped and coordinated.
3. Leading: This involves motivating and directing employees, communicating effectively, and
resolving conflicts.
4. Controlling: This involves monitoring organizational progress toward goals and making any
necessary adjustments.

These four functions are highly interrelated and dynamic, with managers often engaging in multiple
functions simultaneously. The specific tasks and responsibilities of managers can vary depending on their
level within the organization, the area they manage, and the type of organization.

Basic managerial skills.

Effective managers possess a variety of skills to help them analyze situations and make decisions. These
skills are also important for employees to possess in navigating the workplace. In this response, we will
discuss the seven primary types of skills managers and employees alike rely on.

The basic managerial skills are:

● Technical skills: The skills necessary to accomplish or understand the specific kind of work
being done in an organization.
● Interpersonal skills: The ability to communicate, understand, and motivate both individuals and
groups.
● Conceptual skills: The manager's ability to think abstractly.
● Diagnostic skills: The manager's ability to visualize the most appropriate response to a situation.
● Communication skills: The ability to effectively convey ideas and information to others and to
effectively receive ideas and information from others.
● Decision-making skills: The manager's ability to correctly recognize and define problems and
opportunities and then select an appropriate course of action to solve problems and capitalize on
opportunities.
● Time-management skills: The manager's ability to prioritize work, to work efficiently, and to
delegate appropriately.

Levels of Management
Organizations typically have a hierarchical structure with multiple levels of management. Each level
plays a distinct role in achieving the organization's objectives. The primary levels are:

● Top Managers: Senior management, comprising executives, sets goals, defines policies, and makes
critical organization-wide decisions. Examples include CEOs, presidents, and vice presidents.
● Middle Managers: Middle managers execute top management strategies and plans, linking strategic
decisions to daily operations.

● First-Line Managers: Managers oversee non-managerial employees, ensuring efficient task

completion. Examples include supervisors and team leaders.

Areas of Management
Within each management level, specialized areas reflect different activities and expertise needed to run an
organization.

● Marketing Managers: Responsible for developing and implementing marketing strategies to

promote products or services, conduct market research, and manage advertising and sales efforts.

● Financial Managers: Oversee the financial resources of the organization, including budgeting,
financial planning, investment analysis, and financial reporting.

● Operations Managers: Manage the systems and processes involved in producing goods or
delivering services, ensuring efficiency, quality, and timely delivery.

● Human Resource Managers: Responsible for attracting, developing, and retaining talent within the
organization. They handle recruitment, selection, training, performance management, and employee
relations.

● Administrative Managers: Generalists who oversee various administrative functions and may not be
associated with a specific functional area.

The Interplay of Levels and Areas

Levels and management areas are interconnected, contributing to a company's success. Understanding
these levels and areas is crucial for effective organizational communication and leadership.

Henri Fayol's principle.

Henri Fayol, a French mining engineer and management theorist, proposed 14 management principles
that he believed could be applied to any organization. These principles, which he first published in 1916,
were:

● Division of work: Work specialization is the best way to use the organization's human resources.
● Authority: Managers must be able to give orders, and authority gives them that right.
● Discipline: Employees must obey and respect the organization's rules.
● Unity of command: Every employee should receive orders from only one superior.
● Unity of direction: Each group of organizational activities that have the same objective should be
directed by one manager using one plan.
● Subordination of individual interests to the general interest: The interests of one employee
should not take precedence over the interests of the organization as a whole.
● Remuneration: Workers must be paid a fair wage for their services.
● Centralization: The degree to which subordinates are involved in decision-making.
● Scalar chain: The line of authority from top management to the lowest ranks.
● Order: A place for every employee and every employee in their place.
● Equity: Managers should be kind and fair to their subordinates.
● Stability of tenure of personnel: High employee turnover is inefficient.
● Initiative: Employees should be allowed to originate and carry out plans.
● Esprit de corps: Promoting team spirit will build harmony and unity within the organization.
 Lecture-2 (Chapter 6 Planning and Decision Making)
Planning & environmental context
Planning's environmental context involves internal (mission, culture, resources) and external (industry,
competitors, customers, economy, politics) factors that affect the process. This context significantly
impacts planning, requiring adaptability in fast-changing industries and careful priority-setting with
limited resources.

Here are some of how the environmental context can affect the planning process:

● The internal environment: The organization's mission, culture, and resources can all affect the
planning process. For example, if an organization has a strong culture of innovation, it is more
likely to develop plans that are creative and forward-thinking.
● The external environment: The organization's industry, competitors, customers, and the overall
economic and political climate can all affect the planning process. For example, if an organization
is operating in a highly competitive industry, it will need to develop plans that are aggressive and
focused on achieving market share.
● Global environment: The global environment can also affect the planning process. For example,
if an organization is operating in a global market, it will need to develop plans that are sensitive
to the cultural differences of its customers and employees.

For effective plans, managers must grasp the environmental context. They should identify key factors
influencing planning and develop responsive plans. The environmental context is crucial for strategic,
tactical, and operational planning. By considering it, managers can enhance plan success.
 Kinds of goals
There are different types of goals managers can set. In general, goals can be differentiated by level, area,
and time.

Level

Goals are set for and by different levels within an organization. The four basic levels of goals are the
mission and strategic, tactical, and operational goals.

● Mission is a statement of the organization’s fundamental, unique purpose that sets a business
apart from other firms.
● Strategic goals are set by and for top management. They focus on broad, general issues.
● Tactical goals are set by and for middle managers. Their focus is on how to operationalize
actions necessary to achieve the strategic goals.
● Operational goals are set by and for lower-level managers. Their concern is with short-term
issues related to tactical goals.

Area

Organizations also set goals for different areas. Common areas that are addressed by goals include
operations, marketing, finance, human resources, and product innovation.

Time Frame

Organizations also set goals across different time frames. Some goals have an explicit timeframe, others
have an open-ended time horizon. In general, we can think of goals as having long-term, intermediate-
term, and short-term time frames.

Contingency planning.
Contingency planning is a critical aspect of the planning process that involves developing alternative
courses of action to be taken if an intended plan is unexpectedly disrupted or rendered inappropriate. It is
an essential tool for organizations operating in dynamic and complex environments, where unexpected
events can significantly affect the success of a plan.

The process of contingency planning involves several key steps:

1. Develop the basic plan: Managers must first develop the primary plan of action, considering
potential disruptions and challenges.
2. Implement the plan and identify contingency events: Once the primary plan is implemented,
managers need to formally identify potential contingency events that could disrupt it.
3. Specify indicators and develop contingency plans: Managers must specify indicators or signs
that suggest a contingency event is about to occur and develop contingency plans for each
possible event.
4. Monitor indicators and implement contingency plans: Managers need to continuously monitor
the indicators and implement the appropriate contingency plan if necessary.
Contingency planning helps organizations stay adaptable and responsive to unexpected events,
minimizing disruptions and ensuring business continuity.

Crisis management
is another critical aspect of planning, which involves developing a set of procedures to be used in the
event of a disaster or other unexpected calamity. Crisis management plans may include procedures for
communication, evacuation, and recovery, and are designed to help organizations respond effectively to
unexpected events, minimizing damage and ensuring business continuity.

Planning processes.
Planning is the process of setting goals and objectives and determining how to best achieve them. It
involves making decisions about future courses of action, allocating resources, and establishing priorities.
The planning process helps organizations to:

1. Set goals and objectives: Planning provides a framework for setting specific, measurable,
achievable, relevant, and time-bound (SMART) goals and objectives.
2. Allocate resources: Planning helps organizations determine how to best allocate their resources,
including financial, human, and material resources, to achieve their goals.
3. Establish priorities: Planning helps organizations set priorities and make decisions about which
activities are most important to achieving their goals.
4. Coordinate activities: Planning helps to coordinate activities across different departments and
functions within an organization, ensuring that everyone is working towards the same goals.
5. Monitor progress: Planning provides a mechanism for monitoring progress towards goals and
making adjustments as needed.

Effective planning is essential for organizational success. It helps organizations to be proactive, anticipate
future challenges and opportunities, and make informed decisions about how to achieve their goals.

There are several different types of planning, including strategic planning, tactical planning, and
operational planning.

1. Strategic planning is the process of setting long-term goals and objectives and determining how
to best achieve them. It involves making decisions about the overall direction of the organization
and how to best allocate resources to achieve its goals.
2. Tactical planning is the process of developing specific plans to implement the strategic goals
and objectives. It involves making decisions about how to best allocate resources within specific
departments or functions.
3. Operational planning is the process of developing specific plans to implement the tactical plans.
It involves making decisions about how to best allocate resources within specific work units or
teams.

Effective planning requires a deep understanding of the organization's internal and external environments,
and the ability to make informed decisions about future courses of action. It also requires the ability to
adapt to changing circumstances and adjust plans as needed.
 Barrier of goal setting (Overcome how)
Goal setting is a powerful tool for motivating and coordinating employees. However, several factors can
hinder successful goal setting. Understanding these barriers is the first step in overcoming them.

Barriers to Goal Setting and Planning

1. Inappropriate Goals: Goals that are too difficult or too easy can be demotivating. Goals that are
not aligned with the organization's overall strategy can lead to confusion and wasted effort.
2. Improper Reward System: Employees may be reluctant to set ambitious goals if they fear they
will not be rewarded for their efforts. Conversely, employees may be tempted to set easy goals if
they know they will be rewarded even if they do not achieve them.
3. Dynamic and Complex Environment: In a rapidly changing environment, it can be difficult to
set long-term goals that will remain relevant. This is especially true in industries that are subject
to rapid technological change or regulatory upheaval.
4. Reluctance to Establish Goals: Some managers may resist setting goals because they fear
failure or lack confidence in their ability to achieve them.
5. Resistance to Change: Goals often require change, and people are often resistant to change. This
can be due to various factors, such as fear of the unknown, loss of control, or concern about the
impact of change on their jobs.
6. Constraints: Constraints such as a lack of resources, government regulations, or strong
competition can make it difficult to achieve goals.

Overcoming the Barriers

1. Understand the purposes of goals and planning: Managers need to have a clear understanding
of why they are setting goals and how goals fit into the overall planning process. This will help
them to set appropriate goals and to develop plans that are aligned with the organization's
strategy.
2. Communication and participation: Goals and plans should be communicated clearly to all
employees, and employees should be involved in the goal-setting process whenever possible.
This will help ensure that everyone understands the goals and is committed to achieving them.
3. Consistency, revision, and updating: Goals and plans should be consistent with one another and
should be revised and updated regularly to reflect changes in the organization's environment.
4. Effective reward system: The reward system should be designed to motivate employees to set
and achieve challenging goals. This can be done by providing rewards that are meaningful to
employees and by ensuring that the reward system is fair and equitable.

Formal goal-setting process

Goal-setting is a complex process that can be fraught with problems. Many managers resist setting goals
for themselves and their subordinates because they fear failure or lack confidence in their abilities to
achieve goals. Some managers also resist goals because they are not sure what to do with them. In other
words, they do not know how to use goals to implement plans. Some managers also resist goals because
they see them as controls, threats, or both. Finally, some managers resist goals because they have
constraints placed on them by their bosses, their environment, or both.
 Lecture 3 (Basic Elements of Organizing)
What is Organizing, Elements of Organizing
Organizing is the process of creating the structure and systems necessary to achieve an organization's
goals. It is a continuous process that involves several key elements, including job design,
departmentalization, reporting relationships, authority distribution, coordination, and differentiation.

The basic elements of organizing are:

● Job design: The process of determining an individual's work-related responsibilities.

● Departmentalization: The process of grouping jobs according to some logical arrangement.
● Reporting relationships: The lines of authority and communication within an organization.
● Authority distribution: The delegation of decision-making power and responsibility.
● Coordination: The process of linking the activities of the various departments of the
organization.
● Differentiation: The process of creating and maintaining distinct roles and responsibilities within
an organization.

In designing jobs, what is Job specialization? What are the

alternatives to Job Specialization?

Job specialization is the process of breaking down a large task into smaller, more manageable tasks. A
different individual or group of individuals performs each task. This approach to job design is often used
in manufacturing settings, where tasks are broken down into small, repetitive steps.

The alternatives to job specialization are:

● Job rotation: Systematically moving employees from one job to another.

● Job enlargement: Increasing the total number of tasks workers perform.
● Job enrichment: Increasing both the number of tasks the worker does and the control the worker
has over the job.
● Job characteristics approach: An approach to job design that takes into account both the work
system and employee preferences.
● Work teams: An alternative to job specialization that allows an entire group to design the work
system it will use to perform an interrelated set of tasks.

Departmentalization (grouping jobs)

Departmentalization is the process of grouping jobs so that similar or associated tasks and activities can
be coordinated. In the field of organizational behavior, it is considered one of the core elements of an
organization's structure. The textbook "Organizational Behavior" by Robbins and Judge mentions the
following types of departmentalization:
● Functional departmentalization: This involves grouping jobs based on the functions they perform,
such as marketing, finance, or operations.

● Product or service departmentalization: This involves grouping jobs based on the products or
services the organization produces.

● Geographical departmentalization: This involves grouping jobs based on geographic location, such
as regions or countries.

● Process departmentalization: This involves grouping jobs based on product or customer flow.

● Customer departmentalization: This involves grouping jobs based on the specific customer or
customer groups the organization serves.

The choice of departmentalization method depends on the specific needs and goals of the organization.
Each method has its advantages and disadvantages, and the most appropriate method may vary depending
on the industry, size, and complexity of the organization.

Span of management (Span of Supervision / Control)

The span of management, also known as the span of control, refers to the number of subordinates who
report directly to a single manager. It's a critical aspect of organizational design, impacting efficiency,
communication, and employee experience.

Types of Spans of Management

● Narrow Span of Management:

○ A manager supervises a small number of subordinates.

○ Leads to a taller organizational structure with more levels of management.
○ Offers closer supervision and more control over subordinates.
○ Can create more bureaucratic layers and slower communication.
● Wide Span of Management:

○ A manager supervises a larger number of subordinates.

○ Leads to a flatter organizational structure with fewer management levels.
○ Gives subordinates more autonomy and responsibility.
○ This can lead to less direct supervision and potentially less control.

Factors Affecting Span of Management

● Competence of Supervisor and Subordinates: More competent individuals can handle wider
spans.
● Physical Dispersion of Subordinates: Widely dispersed teams require narrower spans.
● Extent of Nonsupervisory Work: Managers with more non-supervisory duties need narrower
spans.
● Degree of Required Interaction: More interaction necessitates narrower spans.
● Extent of Standardized Procedures: More standardized procedures allow for wider spans.
● Similarity of Tasks: Similar tasks allow for wider spans.
● Frequency of New Problems: Frequent new problems require narrower spans.
 ● Preferences of Supervisors and Subordinates: Personal preferences can influence the span.

Trend towards Flatter Structures

Many modern organizations are moving towards flatter structures with wider spans of management. This
shift is driven by the desire for increased flexibility, faster decision-making, and greater employee
empowerment. However, it's crucial to strike a balance, as excessively wide spans can lead to
overburdened managers and a lack of necessary supervision.

Key Considerations for Managers

● Understand the factors affecting proper management time.

● Be aware of your own control and that of your manager.

● Recognize how the span of management impacts your work, communication, and decision-
making processes.
● Strive for a span that allows for effective supervision, clear communication, and an optimal level
of employee autonomy.

Distributing Authority- Steps in the delegation process.

Delegation is the process of assigning responsibility and authority to subordinates and giving them the
accountability for completing the task. There are three steps in the delegation process.

1. Assign Responsibility: The first step is assigning responsibility to the subordinate. This means
giving them a job or task.
2. Grant Authority: The second step is to grant the subordinate the authority to complete the task.
This means giving them the power to make decisions and take actions necessary to complete the
task.
3. Create Accountability: The third step is to create accountability. This means making the
subordinate responsible for the outcome of the task. The subordinates must understand that they
will be held accountable for their work.

Delegation is a powerful tool that can help managers get more work done, develop their subordinates, and
improve the overall efficiency of the organization. However, it is important to remember that delegation
is not a one-time event. It is an ongoing process that requires clear communication and mutual trust
between the manager and the subordinate.

Centralization & decentralization

Centralization

● Definition: The concentration of decision-making authority and power at the top levels of an
organization.
● Characteristics:
○ Top managers make most decisions with little input from lower levels.
 ○ Information flows primarily from the top down.
○ Employees have limited autonomy and decision-making power.

Decentralization

● Definition: The delegation of decision-making authority and power to lower levels of an

organization.
● Characteristics:
○ Lower-level managers and employees are empowered to make decisions.
○ Information flows freely throughout the organization.
○ Employees have more autonomy and responsibility.

Advantages and Disadvantages

Factor Centralization Decentralization

Decision- More efficient, consistent More responsive, flexible

making

Communication Clear chain of command Potential for confusion

Employee Can be lower due to lack of autonomy Can be higher due to empowerment
morale

Adaptability Less adaptable to change More adaptable

Cost Can be less expensive due to less need Can be more expensive due to training
for management and development

Factors to Consider

● Organizational size: Larger organizations tend to benefit from decentralization.

● Environmental stability: Stable environments may favor centralization, while dynamic
environments may favor decentralization.
● Managerial competence: Decentralization requires competent and well-trained lower-level
managers and employees.
 ● Organizational culture: Some cultures naturally favor centralization or decentralization.

Trend towards Decentralization

Many modern organizations are moving towards decentralization to increase flexibility, empower
employees, and respond more quickly to environmental changes. However, it's crucial to strike a balance,
as excessive decentralization can lead to a lack of control and coordination.

Administrative intensity.
Administrative intensity is the ratio of staff (or administrative) positions to line positions in an
organization. Staff positions support line positions and are not directly involved in producing or
delivering goods or services. Line positions are directly involved in the production and delivery of goods
or services. Organizations try to maintain a low administrative intensity because staff positions do not
directly contribute to the bottom line.

Optimizing goal soul by reducing conflict.

Goal conflict can be reduced by assigning non-competing goals to different departments. For example, a
10% sales increase goal for marketing and a 5% cost reduction goal for production complement each
other. However, a 20% sales increase goal for marketing and a 10% cost reduction goal for production
may conflict. The manager can help resolve this by setting more realistic goals or providing additional
resources to the production department. Careful goal assignment helps reduce conflict and improves
success chances.

Lecture-4 (Leading)
Diff. Between (leader & manager
While the terms "leader" and "manager" are often used interchangeably, there are distinct differences
between the two. Here's a breakdown:

Feature Leader Manager Key Differences

Focus Inspires and motivates Plans, organizes, and Vision vs. Execution
people toward a controls resources to
common vision. achieve specific goals.

Approach Sets direction, aligns Sets objectives, Influence vs. Authority

people, motivates, and organizes tasks,
 inspires. delegates, and measures
progress.

Power May or may not have Has formal authority Change vs. Stability
formal authority. within the
Influence comes from organizational
vision, relationships, hierarchy.
and trust.

Style Transformational, Transactional, focused Long-term vs. Short-

visionary, innovative, on efficiency, term
focused on change and execution, and short-
long-term goals. term goals.

Leadership trait approach.

The leadership trait approach is a theoretical framework that aims to identify and analyze the specific
personality characteristics and attributes that differentiate effective leaders from non-leaders. It is based
on the premise that certain inherent traits or qualities contribute to a person's ability to lead and influence
others effectively.

Key Traits Associated with Leadership

Researchers have explored a wide range of traits in relation to leadership, including:

● Intelligence: Cognitive abilities, problem-solving skills, and strategic thinking.

● Self-Confidence: Belief in one's own abilities and judgment.
● Determination: Initiative, persistence, and drive to achieve goals.
● Integrity: Honesty, ethical conduct, and trustworthiness.
● Sociability: Ability to interact and build relationships with others.

Limitations of the Trait Approach

While the trait approach provides valuable insights into the characteristics often associated with effective
leadership, it has certain limitations:

● No Universal Trait List: There is no single, definitive list of traits that guarantee leadership
success across all situations.
● Situational Factors: The effectiveness of specific traits can vary depending on the context, such
as the type of organization, the nature of the task, and the characteristics of the followers.
● Subjectivity: The identification and measurement of traits can be subjective, leading to potential
biases and inconsistencies.
● Development and Learning: The trait approach may overlook the fact that leadership skills can
be developed and improved through learning and experience.
Conclusion

The leadership trait approach provides a valuable framework for understanding the role of personality
characteristics in leadership effectiveness. While it's essential to acknowledge its limitations, the trait
approach remains relevant to contemporary management by informing selection processes, leadership
development programs, and self-awareness among managers. By combining the insights of the trait
approach with other leadership theories, organizations can develop a more comprehensive understanding
of what contributes to effective leadership in diverse contexts.

Path goal theory

Path-goal theory is a situational approach to leadership that suggests that the most important role of a
leader is to clear the path for subordinates to achieve their goals and to direct, coach, and support them in
doing so. It is based on the expectancy theory of motivation, which suggests that people are motivated to
perform when they believe that their effort will lead to high performance, that high performance will lead
to rewards, and that the rewards will be valuable to them.

Leader Behaviors

Path-goal theory identifies four kinds of leader behavior:

1. Directive: The leader lets subordinates know what is expected of them, gives them specific
guidance and direction, and schedules and coordinates their work.
2. Supportive: The leader is friendly and approachable, shows concern for subordinates' welfare,
and treats them as equals.
3. Participative: The leader consults with subordinates, solicits their suggestions, and allows them
to participate in decision making.
4. Achievement-oriented: The leader sets challenging goals, expects subordinates to perform at
high levels, encourages them, and shows confidence in their abilities.

Situational Factors

Path-goal theory suggests that the appropriate leader style depends on two situational factors:

1. The personal characteristics of subordinates: These include subordinates' perception of their

own abilities and their locus of control (whether they believe they have control over what
happens to them).
2. Environmental characteristics of the workplace: These include task structure (the degree to
which the task is well defined), the formal authority system, and the nature of the work group.

The Path-Goal Framework

The path-goal framework shows how different leader behaviors affect subordinates' motivation to
perform. Personal and environmental characteristics are seen as defining which behaviors lead to which
outcomes.

Subordinates’ Leader behaviors Environmental

characteristics characteristics
Directive
Perceived ability Task structure
Supportive
Locus of control Workgroup
Evaluation and Implications

Path-goal theory is a dynamic and incomplete model. However, research suggests that it is a reasonably
good description of the leadership process. It has helped managers understand the importance of
situational factors in leadership and develop leadership styles that are appropriate for different situations.

Path-goal theory in practice

Here are some examples of how path-goal theory can be used in practice:

● A manager of a sales team may use a directive leadership style when working with new
salespeople who are unfamiliar with the company's products and sales process.
● A manager of a research and development team may use a participative leadership style when
working on a complex project that requires creativity and innovation.
● A manager of a customer service team may use a supportive leadership style when working with
employees who are dealing with difficult customers.

By understanding the principles of path-goal theory, managers can develop leadership styles that are more
likely to motivate employees and lead to high performance.

Leader-member exchange approach.

The leader-member exchange (LMX) theory, also known as the vertical dyad linkage (VDL) theory,
focuses on the two-way relationship between supervisors and subordinates. It suggests that leaders
develop different types of relationships with different subordinates, which can lead to varying levels of
performance and satisfaction among team members.

The LMX theory has evolved and has been refined through various studies and research. It highlights the
importance of communication and interaction between leaders and subordinates in shaping their work
relationships and emphasizes the impact of these relationships on organizational outcomes.

A Successful manager Vs. Effective manager.

Although often used interchangeably, the terms "successful manager" and "effective manager" have
distinct meanings in management literature.

● A successful manager is primarily focused on career advancement and moving up the

organizational hierarchy. They tend to prioritize promotion and recognition within the
organization.
 ● An effective manager is primarily focused on achieving organizational goals and optimizing
organizational performance. They prioritize efficiency, productivity, and the effective utilization
of resources to achieve desired outcomes.

In essence, successful managers prioritize their success, while effective managers prioritize the success of
the organization

Chapter 5 (CH-20)- Control

Purpose of control
The purpose of control is to ensure that an organization's activities are on track to achieve its goals. It
involves

● Setting standards
● Measuring performance
● Comparing performance to standards
● Taking corrective action

Control is essential for organizational effectiveness and efficiency.

Process of control
The process of control can be summarized in these four steps:

1. Establish standards: Create standards that will be used to measure performance. These standards
should be measurable, consistent with the organization's goals, and should have clear
performance indicators.
2. Measure performance: Measure current performance in ways that are valid and that allow for
comparison to the standards.
3. Compare performance against standards: Determine whether performance matches the
standards. If it does not, determine the acceptable range of variation.
4. Determine the need for corrective action: Based on comparing performance to standards, act as
needed to correct any variation from the standards.

Different levels of control

There are several levels of control, with organizations typically using them simultaneously. The most
common levels are:

● Operations control: Focuses on the processes the organization uses to transform resources into
products or services.
● Financial control: Concerned with the organization's financial resources.
● Structural control: Concerned with how the elements of the organization's structure are serving
their intended purpose.
 ● Strategic control: Focuses on how effectively the organization's strategies are succeeding in
helping the organization meet its goals.

Bureaucratic & decentralized control

Here is a brief explanation of bureaucratic and decentralized control:

Bureaucratic control is a type of structural control that is characterized by formal and mechanistic
structural arrangements. It is typically used in stable environments where there is little need for flexibility.
Bureaucratic control relies on strict rules and regulations, a rigid hierarchy, and a tall organizational
structure. Rewards are typically based on individual performance, and employee participation is limited.

Decentralized control is a type of structural control that is characterized by informal and organic
structural arrangements. It is typically used in unstable environments where there is a need for flexibility.
Decentralized control relies on group norms and a strong corporate culture, and it gives employees the
responsibility for controlling themselves. Employees are encouraged to perform beyond minimally
acceptable levels. Organizations using this approach are usually relatively flat, and they direct rewards on
group performance and favor widespread employee participation.

Most organizations use a form of organizational control that is somewhere in between these two
extremes. The specific approach that is used will depend on several factors, including the organization's
environment, its size, and its culture.

Resistance to control & how to overcome it?

The concept of "resistance to control" is not explicitly discussed in the provided texts. However, the
concept of "political behavior in organizations" from the PowerPoint presentations can be interpreted as a
form of resistance to control.

Resistance to Control as Political Behavior

Political behavior refers to activities individuals engage in to acquire, develop, and use power and other
resources to obtain their preferred outcomes. It can be seen as a way for individuals or groups to resist or
influence the control mechanisms imposed by the organization.

Common Political Behaviors that can be interpreted as Resistance to Control

● Inducement: Offering favors or rewards to gain support and potentially bypass formal control
mechanisms.

● Persuasion: Using logical and emotional appeals to influence others and sway decisions in their
favor, potentially undermining established control processes.

● Creation of an Obligation: Doing favors for others with the expectation of future reciprocation,
which can create informal power structures that circumvent formal control systems.

● Coercion: Using force or threats to get one's way, directly challenging or resisting control measures.

● Impression Management: Controlling how others perceive one to gain influence and potentially
avoid scrutiny or control.
How to Overcome Resistance to Control

The PowerPoint presentation offers some strategies for managing political behavior, which can be
adapted to address resistance to control:

● Awareness: Managers should be aware that even their well-intentioned actions might be perceived as
political by others.

● Empowerment: Providing employees with autonomy, responsibility, and feedback can reduce the
likelihood of them resorting to political behavior to achieve their goals.

● Open Communication: Encouraging open communication and addressing disagreements directly

can minimize the opportunity for political maneuvering.

● Transparency: Avoiding covert activities and being transparent about decision-making processes
can reduce suspicion and promote trust.

● Performance-Based Rewards: Linking rewards to performance and minimizing competition among

managers can reduce the motivation for political behavior.

OB-Lecture-6

Managerial Activities
Managers engage in four managerial activities:

1. Traditional management: Decision-making, planning, and controlling

2. Communication: Exchanging routine information and processing paperwork
3. Human resource (HR) management: Motivating, disciplining, managing conflict, staffing, and
training
4. Networking: Socializing, politicking, and interacting with outsiders

Effective and Successful Managers

Effective managers spend the most time communicating and the least time networking. Successful
managers spend the most time networking and the least time in HR management activities.

Key Skills

Effective managers have strong people skills, or the ability to motivate and support others. Successful
managers have strong networking skills, or the ability to socialize and interact with outsiders.
A basic OB model
A basic OB model is a simplified representation of the complex factors that influence behavior within
organizations. It typically includes three key elements:

1. Inputs: Pre-existing factors, including individual, group, and organizational factors.

2. Processes: Actions taken by individuals, groups, and organizations due to inputs.
3. Outcomes: Variables to be explained or predicted, including individual, group, and
organizational outcomes.

Relationships between inputs, processes, and outcomes in organizations are complex. A basic OB model
helps understand and predict behavior within organizations and design interventions for improved
effectiveness.
 Lecture-7 (Managing Employee Motivating and
Performance)
Definition of motivation
Motivation is the force that drives individuals to behave in certain ways. It can be defined as the processes
that account for an individual’s direction, intensity, and persistence of effort toward attaining a goal.

● Intensity refers to how hard an individual tries to achieve a goal.

● Direction refers to an individual's focus on the goal and their commitment to achieving it.
● Persistence refers to how long an individual can maintain the effort to achieve a goal

Two-factor theory
The Two-Factor Theory, also known as Herzberg's Motivation-Hygiene Theory, proposes that there are
two distinct sets of factors that influence employee satisfaction and dissatisfaction in the workplace:

● Motivation Factors (Motivators): Job factors contribute to satisfaction and increased motivation.
Their absence creates a neutral state. Examples of motivators include:

○ Achievement

○ Recognition

○ The work itself

○ Responsibility

○ Advancement and growth

● Hygiene Factors (Hygiene): Hygiene factors are external job factors that prevent dissatisfaction but
don't necessarily lead to satisfaction. Examples include work environment factors.

○ Supervision

○ Working conditions

○ Interpersonal relationships

○ Pay and security

○ Company policies and administration

The Two-Factor Theory suggests that organizations should focus on addressing hygiene factors to prevent
dissatisfaction and providing motivators to enhance satisfaction and encourage high employee
performance. While influential in shaping management practices, it has faced criticism for its
methodology and limited generalizability.
 Expectancy theory
Expectancy theory, or VIE theory, is a process theory of motivation that suggests that individuals are
more likely to be motivated and exert effort when they believe their effort will lead to good performance,
that good performance will lead to desired rewards, and that the rewards will fulfill their personal goals.

The theory is named after the three components of the motivational process:

1. Valence refers to the value individuals place on the rewards they are offered. Rewards can be
extrinsic (e.g., pay, benefits, promotion) or intrinsic (e.g., a sense of accomplishment, or
increased responsibility).
2. Instrumentality refers to an individual's belief that their performance will lead to desired
rewards.
3. Expectancy refers to an individual's belief that their effort will lead to the desired level of
performance.

The content of "Organizational Behavior (2023, Pearson).pdf" and "Management 2016.pdf" reference and
support these statements in the multiple sections on motivation, rewards, and compensation.

Equity theory
developed by John Stacy Adams, proposes that individuals strive for fair treatment in their relationships.
Individuals make social comparisons between their rewards and contributions. When they perceive an
imbalance, they experience inequity. This inequity motivates them to act to restore fairness.

Popular Approaches to Rewarding Employees

There are many approaches to rewarding employees. Some of the most popular approaches include:

● Merit-based pay plan: A merit-based pay plan pays for individual performance based on
performance appraisal ratings. If designed correctly, merit-based plans let individuals perceive a
strong relationship between their performance and their rewards.
● Bonus: A bonus is a one-time reward, not an increase in base salary. It is a pay plan that rewards
employees for recent performance rather than historical performance.
● Profit-sharing plan: A profit-sharing plan distributes compensation based on some established
formula designed around a company's profitability. Compensation can be direct cash outlays or
allocations of stock options.
●
● Employee stock ownership plan (ESOP): An ESOP is a company-established benefit plan in
which employees acquire stock, often at below-market prices, as part of their benefits. Employees
can sell the stock once they leave the company.
● Employee recognition program: An employee recognition program is a plan to encourage
specific behaviors by formally appreciating specific employee contributions. They can be a
powerful motivator for employees and are also relatively inexpensive.