Management Theory & Practice (5003)

ASSIGNMENT NO # 1

Q.1:

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

 Answer

Management:
Management is required in all kinds of organizations whether they are manufacturing computers or
handlooms, trading in consumer goods or providing saloon services and even in non-business
organizations. No matter what the organization is or what its goals might be, they all have
something in common – management and managers. Successful organizations achieve their goals
by following a deliberate process called ‘management. Management consists of a series of
interrelated functions that are performed by all managers. Let’s understand the concept of
management.

As there is no universally accepted definition for management, it is difficult to define it.

But a simple traditional definition, defines it as the "art of getting things done by others". This
definition brings in two elements namely accomplishment of objectives, and direction of group
activities towards the goal. The weakness of this definition is that firstly it uses the word "art",
whereas management is not merely an art, but it is both art and science. Secondly, the definition
does not state the various functions of a manager clearly.

Management means many things to many people. To a layman management means an impressive
person occupying an air-condition chamber with an overstake table and cushioned chair. Some
people suggest management as commanding other. To many others, management is nothing more
than clerical work and putting fancy signatures. But truly management is the process of planning,
organizing, staffing, directing, co-coordinating and controlling the activities of business enterprises.
It is also described as the technique of leadership, decision making and a mean of co-coordinating
Concept of Management

Some of the common definition of management given by famous writers and thinkers are:

 According to Harold Koontz and Heinz Weihrich, Management is the process of designing
and maintaining an environment in which individuals, working together in groups,
efficiently accomplish selected aims.
 According to Robert L. Trewelly and M. Gene Newport, Management is defined as the
process of planning, organising, actuating and controlling an organisation’s operations in
order to achieve coordination of the human and material resources essential in the effective
and efficient attainment of objectives.
 According to Kreitner, “Management is the process of working with and through others to
effectively achieve organisational objectives by efficiently using limited resources in the
changing environment.

So Management can be defined as a process of getting things done with the aim of achieving goals
effectively and efficiently. Some important terms in this definition are:

1. Process: Process means the primary functions or activities that management performs to
get things done. These functions are planning, organising, staffing, directing and controlling.
2. Effectiveness: Effectiveness is concerned with the end result. It basically means finishing
the given task. Thus Effectiveness in management is concerned with doing the right task,
completing activities and achieving goals
3. Efficient: Efficiency means doing the task correctly and with minimum cost. Management is
concerned with the efficient use of input resources which ultimately reduce costs and lead
to higher profits.

it is important for management to achieve goals (effectiveness) with minimum resources i.e., as
efficiently as possible while maintaining a balance between effectiveness and efficiency.

Characteristics of Management

Basic characteristics of management are:

1. Management is a goal-oriented process: An organisation has a set of basic goals which

are the basic reason for its existence. Management unites the efforts of different individuals
in the organisation towards achieving these goals.
2. Management is all pervasive: The activities involved in managing an enterprise are
common to all organisations whether economic, social or political.
3. Management is multidimensional: Management is a complex activity that has three main
dimensions:
1. Management of work: All organisations exist for the performance of some work.
Management translates this work in terms of goals to be achieved and assigns the
means to achieve it.
 2. Management of people: Human resources or people are an organisation’s greatest
asset. Managing people has two dimensions:
1. it implies dealing with employees as individuals with diverse needs and
behavior;
2. it also means dealing with individuals as a group of people

The task of management is to make people work towards achieving the

organisation’s goals, by making their strengths effective and their weaknesses
irrelevant.

3. Management of operations: It requires a production process which entails the

flow of input material and the technology for transforming this input into the
desired output for consumption
4. Management of operations: It requires a production process which entails the flow of
input material and the technology for transforming this input into the desired output for
consumption
5. Management is a continuous process: The process of management is a series of
continuous, composite, but separate functions (planning, organising, directing, staffing and
controlling). These functions are simultaneously performed by all managers all the time.
6. Management is a group activity: An organisation is a collection of diverse individuals with
different needs. Management should enable all its members to grow and develop as needs
and opportunities change
7. Management is a dynamic function: Management is a dynamic function and has to adapt
itself to the changing environment. In order to be successful, an organisation must change
itself and its goals according to the needs of the environment.
8. Management is an intangible force: Management is an intangible force that cannot be
seen but its presence can be felt in the way the organisation functions

There are twin purposes of the management process:

(1) Maximum productivity or profitability and

(2) Maximum human welfare and satisfaction.

There are five parts to a definition of management as a process: first, the co-ordination of
resources; second, the performance of managerial functions as a means of achieving co-ordination;
the third, establishing the objective or purpose of management process, i.e., it must be purposeful
managerial activity; the fourth aspect is that management is a social process, and the fifth is its
cyclical nature.

Let us describe each part separately:

1. Management is Co-Ordination:
The manager of an enterprise must effectively coordinate all activities and resources of the
organisation, namely, men, machines, materials and money the four M’s of management.

2. Management is a Process:

The manager achieves proper co-ordination of resources by means of the managerial functions of
planning, organising, staffing, directing (or leading and motivating) and controlling.

3. Management is a Purposive Process:

It is directed toward the achievement of predetermined goals or objectives. Without an objective,

we have no destination to reach or a path to follow to arrive at our destination, i.e., a goal, both
management and organisation must be purposive or goal-oriented.

4. Management is a Social Process:

It is the art of getting things done through other people.

5. Management is a Cyclical Process:

It represents planning-action-control-re-planning cycle, i.e., an ongoing process to attain the

planned goals.

 Type of managers

Most organizations have three management levels:

 Low-level managers;
 Middle-level managers; and
 Top-level managers.

These managers are classified in a hierarchy of authority, and perform different tasks. In many
organizations, the number of managers in every level resembles a pyramid.

Below, you’ll find the specifications of each level’s different responsibilities and their likely job
titles.
Top-level managers

The board of directors, president, vice-president, and CEO are all examples of top-level managers.

These managers are responsible for controlling and overseeing the entire organization. They
develop goals, strategic plans, company policies, and make decisions on the direction of the
business.

In addition, top-level managers play a significant role in the mobilization of outside resources.

Top-level managers are accountable to the shareholders and general public.

Middle-level managers

General managers, branch managers, and department managers are all examples of middle-level
managers. They are accountable to the top management for their department’s function.

Middle-level managers devote more time to organizational and directional functions than top-level
managers. Their roles can be emphasized as:

 Executing organizational plans in conformance with the company’s policies and the
objectives of the top management;
 Defining and discussing information and policies from top management to lower
management; and most importantly
 Inspiring and providing guidance to low-level managers towards better performance.
Some of their functions are as follows:

 Designing and implementing effective group and intergroup work and information systems;
 Defining and monitoring group-level performance indicators;
 Diagnosing and resolving problems within and among work groups;
 Designing and implementing reward systems supporting cooperative behavior.

Low-level managers

Supervisors, section leads, and foremen are examples of low-level management titles. These
managers focus on controlling and directing.

Low-level managers usually have the responsibility of:

 Assigning employees tasks;

 Guiding and supervising employees on day-to-day activities;
 Ensuring the quality and quantity of production;
 Making recommendations and suggestions; and
 Up channeling employee problems.

Also referred to as first-level managers, low-level managers are role models for employees. These
managers provide:

 Basic supervision;
 Motivation;
 Career planning;
 Performance feedback; and
 Staff supervision.
Q.2: what are the fundamentals of decision making process? Differentiate
between programmed and un-programmed decision. Illustrate your answer
with examples
Answer

Decision-Making Fundamentals

We all have to make decisions, no matter where we are and what we are doing. In truth, we are
actually making decisions almost continuously. Most of the decisions we make are small and
relatively inconsequential in nature, such as what to wear, what to eat, when to go so sleep or which
roads to take on the way to work in the morning. However, we also have to 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.

Decision making is an essential skill to develop no matter what field or work you are in and what
life direction you have chosen. Most of us have adopted a decision making method that seems to
work for us most of the time and so we don’t give it much thought but if the method is unstructured
and/or not regularly adhered to it can often lead to poor decisions or sometimes even the inability
to make decisions. This can be costly to your future in both professional and personal advancement
and it is for this reason that it is an important element to discuss.

When approaching each significant decision that you need to make, in general your decision making
process should include these five fundamental steps:

1. Understanding the Problem or Objective.

2. Develop Alternatives.
3. Evaluation of the Alternatives.
4. Making a Firm Decision.
5. Taking Action.

Depending on the nature of the decision you are making, you may need to vary this methodology
slightly although the underlying approach remains the same. For example, in the case of very large
decisions, you may want to break that action step into smaller phases and include an assessment
step between each phase to ensure you are on the right track and make adjustments accordingly.

Let’s have a more detailed look at each of these steps.

1. Understand the Problem or Objective:

In this first step, the most important element is to fully understand what you are trying to achieve.
What is the objective and why is it important? Define this objective and write it down. It is
important ensure you are targeting the right issue as a well thought-out decision for solving the
wrong issue will not be of much use in the long run.

If possible, find out as much as you can about the background or history of the problem you are
approaching. Who or what is involved and if there are others involved what are their opinions and
knowledge on the subject?

2. Develop Alternatives:

Alternatives are most effectively generated by having one or more brainstorming sessions. If a
group is involved in coming up with ideas, I like to approach each brainstorming session by first
coming up with my own alternatives, and having the others do likewise, before sharing the
alternatives as a group. This ensures that the alternatives being generated are not prematurely
swayed into a particular line of thought. 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.

3. Evaluate the Alternatives:

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. Depending of the
problem, your decision criteria may include looking at things such as predicted outcomes, possible
risks involved and the estimated costs, either monetary or other, that will be incurred if that
particular alternative is chosen. If the situation allows it, this comparison is effectively done by
creating a decision matrix for evaluating how alternative fit with your decision criteria. This can
also be done mentally if there is not sufficient time to make notes, although it is difficult to do a
proper analysis without writing things down. Either way, the important thing is to consider all the
implications that will result from each alternative.

4. Make a Firm Decision:

I believe this step in the decision making process is the most important step and, from what I have
observed, this is also often the most difficult step for most people. They are very wary about making
a firm decision in case that decision turns out to be wrong. The only important thing is that you
have considered the alternatives and made an informed decision to the best of your abilities on the
information that is known period.

The ability to take this step is what usually separates leaders and high achievers from the rest of the
world. Have confidence in yourself and stick to the definite conclusion that you have reached. It is
usually tempting for people to delay this step from a deep-rooted sense of self-questioning or self-
doubt. Don’t waste valuable time. Make the decision fairly quickly, without delay and let it be final.

Once you have made your decision, don’t second guess yourself, even for a moment. Second
guessing will cast doubt on your decision making and has the knock-on effect of creating
uncertainty and reluctance in future decision making. It is important to be firm with your selection.
Trust yourself and don’t look back.

5. Take Action:

Take the actions necessary to implement your decision as soon as possible after it has been made. If
others are involved in the implementation of the decision or need to be informed about the
outcome, communicate the verdict to them and then begin taking action straight away. Don’t wait
to hear other people’s reactions or await their acceptance of your decision. Start acting on your
decision immediately. Getting the ball rolling early is what gives momentum to the implementation
of your decision and helps ensure it is not forgotten or misunderstood.
  Programmed and Non-Programmed

 Programmed Decisions:
Decisions related to structured situations, where the problem is more or less routine and repetitive
in nature are known as programmed decisions. For example, problems related to leave are solved
by policy relating to leave rules. Employees who take leave according to leave rules Eire granted
leave and those who do not follow the leave rules may not be granted leave. The routine problems
may not always be simple.

There may be complex routine problems. For example, production department follows a routine
that managers order for inventory when it reaches the re-order point. If there is sudden increase in
demand for the product, managers cannot wait for inventory to reach the re-order point to make
fresh orders. Orders are placed before this level is reached. Ordering inventory is, thus, a problem
of routine nature but ordering inventory before the re-order point is a routine but complex
problem.

In either situation, managers depend on pre-established criteria for taking decisions. Various
policies, schedules and procedures guide these decisions and, therefore, policies and procedures
should be as clear as possible. Since decisions are based on pre-defined standards, they do not
require much of brainstorming and are taken normally by middle and lower-level managers.

Managers do not think of innovative ways to solve the routine problems. Therefore, they can
concentrate on important and crucial activities. These decisions also involve some amount of
certainty, i.e., outcomes of these decisions are, by and large, known.

Various types of programmed decisions are:

(1) Organizational decisions.

(2) Operational decisions.

(3) Research decisions.

(4) Opportunity decisions.

 Non-Programmed Decisions:
These decisions are taken in unstructured situations which reflect novel, ill-defined and complex
problems. The problems are non-recurring or exceptional in nature. Since they have not occurred
before, they require extensive brainstorming. Managers use skills and subjective judgment to solve
the problems through scientific analysis and logical reasoning.

Subjective judgment is based on assessment of the situation. In objective judgment (in case of
programmed decisions), past experience forms the basis for decision-making. These decisions
involve fair degree of uncertainty since outcomes of decisions are not always known. These
decisions are based on partial ignorance as the alternatives and their outcomes cannot be known in
advance. They are taken in the context of changing, dynamic environmental conditions.

For example, increase in advertising expenditure, effective salesmanship, upgraded technology,

quality controls, brand image and reasonable prices are expected to increase sales and profits. If,
despite all this, profits are declining, it requires immediate decision-making and such decisions are
non-programmed decisions.

These decisions are taken by top-level managers. As we move up the organisational hierarchy, the
need for taking non-programmed decisions increases.

Different types of non-programmed decisions are:

(1) Personal decisions.

(2) Strategic decisions.

(3) Crisis intuitive decisions.

(4) Problem-solving decisions.

Q.3: what do you know about planning? Discuss its approaches? What tools are
used for planning by the managers?

Answer

Planning is the first of essential managerial functions. Planning is important as by nature it enquirers
about organizational goals and involves decision making about desired ways and means to achieve
goals.

“Planning is the process by which managers establish goals and define the methods by which
these goals are to be attained. Planning involves selecting missions and objectives and the
actions to achieve them; it requires decision making, which is choosing from among
alternative future courses of action.
 Nature of Planning
The nature of planning can be understood by examining its four major aspects. They are;

1. It is a contribution to objectives,

2. It is primacy among the manager’s tasks.

3. It is pervasiveness, and

4. The efficiency of resulting plans

The contribution of Planning to the Attainment of Objectives

Since plans are made to attain goals or objectives, every plan and all its support should contribute to
the achievement of the organization’s purpose and objectives.

An organized enterprise exists to accomplish group objectives through willing and purposeful co-
operation.

Primacy of Planning
That planning is the prime managerial function is proved by the fact that all other functions such as
organizing, staffing, leading and controlling are designed to support the accomplishment of the
enterprise’s objectives.

Planning quite logically, therefore, comes first before executing all other managerial functions as
it involves establishing the objectives necessary for all group efforts. Also, all the other managerial
functions must be planned if they are to be effective.

Likewise, planning and controlling are inextricably bound up. Control without a plan is meaningless
because the plan provides the basis or standard of control.

Pervasiveness of Planning
Planning is a unique and universal function of all managers.

The character and scope of planning may vary with each manager’s authority and with the nature of
the policies and plans outlined by superiors, but all managers must have some function of planning.

Because of one’s authority or position in the managerial hierarchy, one may do more or less
planning, but some kind or amount of planning a manager must do.

According to Weihrich and Koontz; “All managers, from presidents to first-level supervisors – plan.”
 The Efficiency of Plans
Plans should not only be effective, but also efficient. The effectiveness of a plan relates to the extent
to which it accomplishes the objectives.

The efficiency of the plan, however, means its contribution to the purpose and objectives, offset by
the costs and other factors required to formulate and operate it.

Plans are efficient if they achieve their objective at a reasonable cost when such a cost is the measure
not only in terms of time, money or production but also in terms of satisfaction of the individual or
group.

Both conceptual and practical reasons are put forward in support of planning. Two conceptual
reasons supporting systematic planning by managers are limited resources and an uncertain
environment.

4 Types of Plan
There are main 4 types of plan;

1. Hierarchical Plans:
These plans are drawn at three major hierarchical levels, namely, the institutional, the managerial and
the technical core. The plans for these three levels are;

 Strategic plan.

 Administrative or Intermediate plan.

 Operational plans can also be categorized according to frequency or repetitiveness of

use. They are broadly classified as;

2. Standing Plans:
Standing plans are drawn to cover issues that managers face repeatedly. Such a standing plan may
be called a standard operating procedure (SOP). Generally, five types of standing plans are used;

 Mission or purpose

 Strategy

 Policies

 Rules

 Procedures
3. Single-use Plans:
Single-use plans are prepared for single or unique situations or problems and are normally discarded
or replaced after one use. Generally, four types of single-use plans are used. These are;

 Objectives or Goals

 Programs

 Projects

 Budgets

4. Contingency Plans:
Contingency plans are made to deal with situations that might crop up if these assumptions turn out
to be wrong. Thus contingency planning is the development of alternative courses of action to be
taken if events disrupt a planned course of action.

Top 4 Approaches to Strategic Planning |

Management

Fundamentally, there are four different approaches to do formal strategic planning. The approaches
are:-

1. Top-Down Approach

2. Bottom-Up Approach

3. Mixture of the Top-Down and Bottom-Up Approaches

4. Team Approach.

 Top-Down Approach:

In a centralised company, such planning is done at the top of the corporation and the departments
and outlying activities are advised straightway what to do.

In a decentralised company, the CEO or the President may give the divisions guidelines and ask for
plans. The plans after review at the head office are sent back to the divisions for modifications or
with a note of acceptance.
  Bottom-Up Approach:

The top management gives the divisions no guidelines but asks them to submit plans.

Such plans may contain information on:

(i) Major opportunities and threats;

(ii) Major objectives;

(iii) Strategies to achieve the objectives;

(iv) Specific data on sales/profits/market share sought;

(v) Capital requirements, etc.

These plans are then reviewed at top management levels and the same process, as in the top-down
approach, is then followed.

 Mixture of the Top-Down and Bottom-Up Approaches:

This is practiced in most large decentralized companies. In this approach, the guidelines given by
the top management to the divisions are broad enough to permit the divisions a good amount of
flexibility in developing their own plans. Sometimes, the top management may decide basic
objectives by dialogue with divisional managers in respect of sales and return on investments
especially when divisional performance is measured upon those criteria.
  Team Approach:

The chief executive, in a small centralized company, often use his line managers to develop formal
plans. The same approach is used even by the president of a large company. In many other
companies, the president meets and interacts with his group of executives on a regular basis to deal
with all the problems facing the company so that the group can develop written strategic plans.

Within each of these approaches, there are many alternatives as follows:

(i) Complete SWOT analysis or not:

In some companies, the divisions supply the top management with perceived opportunities and
threats and with the strategies to exploit opportunities and avoid threats.

(ii) Depth of analysis:

Some companies, at the initial stage, do not make in-depth analysis of all aspects of planning. They
increase the intensity of analytical exercise gradually as experience is gained.

(iii) Degree of formality:

Divergent practices are in vogue as regards formality. For some large companies having centralised
organisation structures, and comparatively stable environment and homogeneous product lines,
planning is less formal than large diversified companies with decentralised and semi-autonomous
product division structures.

High technology companies usually have more formal systems; yet, they recognise informality in
decision making and managerial activities associated with planning.

(iv) Reliance on staff:

It is up-to the managers to decide the extent of delegation.

(v) Corporate planner or not:

Large corporations employ corporate planners to help in the planning process. Smaller companies
cannot afford to this luxury.

(vi) Linkage with plans.

(vii) Getting the process started:

Strategic planning may begin with an effort to solve a particular problem. It may begin with a SWOT
analysis or simply with a review of current strategy.

(viii) Degree of documentation:

A balance has to be struck between too little and too much paper work.

(ix) Role of CEO:

The chief executive officer’s role is critical depending on the degree of complexity of organizations
The seven new management and planning
tools:
The seven new management and planning tools
Management and planning tools include:

 Affinity diagrams
 Matrix diagrams
 Interrelationship digraphs
 Process decision program charts
 Tree diagrams
 Activity network diagrams
 Prioritization matrices
 Affinity Diagrams

Otherwise also called as KJ Method (Named after Jiro Kawatika). It is used to organize a large
number of ideas or decision criteria into groups based on their underlying relationships and affinity
(likeness). This method is used when the team is confronted with large number of different ideas or
solutions and if the issue seems to be very complex and difficult to manage. The process followed
herein is –

 Bring all the team members and domain experts in a room.

 Brainstorm all the ideas related to the problem and stick it on a board. This will ensure that
ideas are free flowing and not interrupted or influenced.
 The Project Leader will then group the similar ideas and if there is a conflict in having any
idea in a particular group, place it in both the groups and finally give a heading to each
group.
 Discuss the relevance of the enlisted points and revise it as applicable.
  Relationship Diagram: 

Otherwise also called as Interrelationship diagram. It is used to signify the strength of

relationship between two processes or entities. It helps us to understand the causal relationship
between variables/processes in a complex scenario. It establishes the linkages between
variables/processes. The number of incoming and outgoing links indicates the importance of
each process. The higher number of incoming arrows indicates the higher dependency of that
process on other processes. Similarly, the more number of outgoing arrows from a particular
process indicates the importance of that process on other dependent processes.

 Tree Diagram

 This helps in understanding the process level-by-level by breaking down complex

processes to the minute level of detail. It helps the team move down from broad process
map to specific process details and requirements. It brings down and explores the finer
details in any complex process.
  Prioritization Matrix

This is a tool that helps in prioritizing an option over others, given a set of decision making
criteria. Options and criteria are arranged in Row-Column format. Weightages are assigned
to each criteria and user has to rate each option on all the criteria. Based on the rankings,
the option that has the highest rating collectively on all criteria is chosen.

 Matrix Diagram:

This is another tool that helps in establishing relationship between variables. Variables are
arranged in both Row & column and the strength of the relationship between each pair is
marked in their corresponding cell. We can use this to measure relationship for one
(Triangle), two (L shape), three (T shape, Y shape, C shape) and four set (X shape) of
variables.

 Process Decision Program Chart (PDPC):

This tool is based on the Decision tree but has other additional features like mapping the failure
mode, risk involved, effect of failure with each decision node. It combines the aspects of FMEA –
Failure mode, effect and risk of failure with the Decision tree. Thus it helps us to analyze all
possible problems involved in making a decision. Thus, a corrective/preventive action can be
planned for any step in the process.
  Activity Network Diagram (AND):

This is also called as Arrow Diagram and is a tool used in PERT and by Project Management

professionals to map their activities and sequential tasks in a visual format to understand and

optimize the project duration. Plotting an AND makes you find the project duration, schedule

tasks easily and identify the critical path.

 Question No 4:

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?

Answer:

Authority Definition:
Authority is defined as the right to give orders, supervise the work of others & make certain
decisions. It is linked with the managerial position to give orders & expect to follow the orders. In
olden days, it was the basic element that made the organizations smoothly working. The authority
was delegated from top to bottom of the organizational hierarchy. Every manager possessed
some Types of Authority according to his designated position. It is related to a specific position a
person holds and his personal characteristics are ignored against his authority, even if a position
becomes vacant in the organization, but still it remains attached to that position.

Types of Authority in Management:

 Line Authority
 Staff Authority
 Functional Authority

1. Line Authority

The work of an employee is directed with the help of line authority. It takes the form of employer-
employee relationship that moves from top to bottom. Certain decisions are made by the line
manager without consulting any other person. In some cases line managers are differentiated from
the staff managers by using the word “line”. The manager whose functions are linked directly with
the achievement of organizational objectives is called line manager in simpler terms.
 2. Staff Authority

Staff authority is possessed by the staff managers. The objectives of the organization determine the
line & staff nature of the functions of any manager. When the size of organization becomes larger &
larger, the line mangers feel that they cannot complete their jobs by the existing skills, experience &
knowledge which are not updated accordingly. Therefore staff authority is generated for the staff
whose main purpose is to assist, support, advice & decrease the work burden of the line managers.

3. Functional Authority

Functional authority that is also known as functional control, and is included in the area of line &
staff aspects of HRM as it is the special authority that is exercised by the personnel manager in
coordinating the personnel activities. The HR manager here performs his functions as right arm of
the supreme executive.

Delegation of Authority

Definition: 

The Delegation of Authority is an organizational process wherein, the manager divides

his work among the subordinates and gives them the responsibility to accomplish the
respective tasks. Along with the responsibility, he also shares the authority, i.e. the power
to take decisions with the subordinates, such that responsibilities can be completed
efficiently.
Elements of Delegation
There are three elements of Delegation Authority.

1. Authority
2. Responsibility
3. Accountability

Authority - in context of a business organization, authority can be defined as the power and right of
a person to use and allocate the resources efficiently, to take decisions and to give orders so as to
achieve the organizational objectives. Authority must be well- defined. All people who have the
authority should know what is the scope of their authority is and they shouldn’t misutilize it.
Authority is the right to give commands, orders and get the things done. The top level management
has greatest authority.

Authority always flows from top to bottom. It explains how a superior gets work done from his
subordinate by clearly explaining what is expected of him and how he should go about it. Authority
should be accompanied with an equal amount of responsibility. Delegating the authority to
someone else doesn’t imply escaping from accountability. Accountability still rest with the person
having the utmost authority.

Responsibility - is the duty of the person to complete the task assigned to him. A person who is
given the responsibility should ensure that he accomplishes the tasks assigned to him. If the tasks
for which he was held responsible are not completed, then he should not give explanations or
excuses. Responsibility without adequate authority leads to discontent and dissatisfaction among
the person. Responsibility flows from bottom to top. The middle level and lower level management
holds more responsibility. The person held responsible for a job is answerable for it. If he performs
the tasks assigned as expected, he is bound for praises. While if he doesn’t accomplish tasks
assigned as expected, then also he is answerable for that.

Accountability - means giving explanations for any variance in the actual performance from the
expectations set. Accountability can not be delegated. For example, if ’A’ is given a task with
sufficient authority, and ’A’ delegates this task to B and asks him to ensure that task is done well,
responsibility rest with ’B’, but accountability still rest with ’A’. The top level management is most
accountable. Being accountable means being innovative as the person will think beyond his scope of
job. Accountability, in short, means being answerable for the end result. Accountability can’t be
escaped. It arises from responsibility.
The process of Delegation of Authority
There are three elements or steps followed when delegating authority.

1. Assignment of Task:

In situations where a manager has a heavy workload, the only way to accomplish the job
within the given time-frame is to delegate duties to the subordinates. But this can only take
places when the manager divides the workload into various parts. Then, he or she will also
determine the part that goes to the subordinates. However, the process by which a top
manager defines the task that goes to the subordinates is the assignment of duties. But it
is best to delegate responsibilities to subordinates based on their experience, knowledge,
qualification, and training.

2. Granting of Authority

The assignment of duties will be useless if the subordinates do not have the same power
and right the manager would need to accomplish the same task delegated to them. So for
the delegation of authority to have an impact, the subordinates should be granted enough
power. And this includes the right to spend money on the task, represent the company
outside, use raw materials and instruct other persons working with him or her to
accomplish the given task.

3. Creation of Obligation

The creation of obligation also called accountability for performance is the last lap in the
process of delegation of a duty. At this stage, once the subordinate accepts the request to
work on the project, it then means he or she has invariably agreed to be accountable and
put on the best performance in the discharge of his or her duties.
 Principles of Delegation of Authority
The primary aim of delegating authority is to achieve results. Without it, then the entire
process would be a waste of time. So, for delegation of power to be effective, these are
principles management must follow.

 The Scalar Principle

The line of authority should be clear for everything to progress accordingly. In other words,
there should be an ultimate authority that is clearly defined. Plus the subordinates should
also know whom to run to when things get out of hand. They should also have a clear idea
as to who can delegate authority to them.

 Functional Definition

Dual subordination can cause huge conflict amongst subordinates, as well as between
them and a higher authority. It can also lead to the division of loyalty, and no one would be
willing to take credit for the outcome or result produced. However, the best thing to do is
to define what the job entails and the expected outcome. Tasks that are also similar can be
in the same group. And each person should be made to understand the role they are to
perform too.

 The Delegation Based on Expected Results

Authority delegated to subordinates, in this case, is based on result expected. In other

words, the authority vested on the said subordinate should be enough to perform the said
duty and achieve the result the manager expects.

 Unity of Command

This principle tries to explain that a subordinate should report to only one superior.
Though the subordinate might receive instructions or order from other superiors, it may
lead to conflict, confusion and make the process more difficult. So the relationship
between authority and responsibility must be clarified.

 Authority Level
This principle takes a look at the situation whereby managers after delegating authority to
subordinates get tempted to make specific decisions for them. For the delegation of power
to have an impact and produce the expected results, the subordinates should be made to
understand the rights they have. They should also be left to take decisions themselves
instead of referring to higher authority.

 Absoluteness of Responsibility

According to this principle, once the subordinate accepts the power delegated, his or her
responsibility becomes absolute to the said superior. But that doesn’t mean that the
delegation of authority will make the superior’s responsibility to decrease. Authority not
responsibility is what the manager, delegates. That said, the manager will still be held
accountable for the outcome of the work or responsibility delegated.

 Parity of Authority and Responsibility

Authority is the power or right to perform an assignment while responsibility is the

obligation given to an individual to accomplish the said assignment. That said management
needs to balance both to achieve the expected result. In other words, there should be a
logical connection between responsibility and authority delegated.

 Barriers To Delegation Of Authority

The following are the common barriers in delegation of authority:

1. Reluctant To Delegate

Some managers are reluctant to delegate authority to subordinates. They believe that they can take
a better decision than their subordinates. This belief is often found among those managers who
have been recently promoted and those having superiority complex. They have no proper plan to
delegate authority. In such a situation, subordinates will have less work and lose the commitment
to implement the manager’s decisions.

2. Fear Of Losing Importance

Managers who feel comfortable with authority,fear to delegate authority. They feel that it will
diminish their importance. Such managers delegate only that part of authority to subordinates
which relates to their job responsibility. They retain their authority as a positional superior of an
organization.

             

3. Loss Of Control

Some managers opine that they will lose control by delegating authority to their subordinates.They
feel that if they delegate authority to their subordinates, they would not be sure to achieve assigned
responsibilities from subordinates. Such fear is reasonable in case managers are incapable of
getting the jobs done from others.

4. Mutual Distrust

Managers are often reluctant to delegate authority to subordinates if there is an environment of

distrust in the organization.A manager must have confidence in his own ability to help, guide and
control his subordinates before delegating authority. If a manager does not have the ability to make
a sound decision he does not believe in his subordinates. He does not want to take risk to get jobs
done from others.
          

5. Fear Of Subordinates 

Managers are reluctant to delegate authority if they fear that it will expose their shortcomings. They
feel that their subordinates will perform better and may create problems in their own career. They
have no self-confidence and do not want to face the competitive environment.

6. Incompetent Subordinates

Some subordinates are often unwilling to accept delegated authority because of lack of self-
confidence. They fear of making mistakes in their performance. It is the responsibility of the
superior to develop their self confidence by guiding them and also creating a supportive
environment.

        

7. Lack Of Motivation

Lack of motivational environment discourages subordinates to take responsibility and accept

authority. Such environment is found in organizations where there is lack of reward and judgement
system.
 Question No. 5

Define leadership. Discuss various approaches to leadership in detail?

 Answer

Leadership

Leadership is an important element of the directing function of management. Wherever, there

is an organized group of people working towards a common goal, some type of leadership
becomes essential. “The power of leadership is the power of integrating. The leader stimulates
what is best in us he unites and concentrates what we feel only gropingly and shatteringly. He
is a person who gives form to the uncoarctate energy in every man. The person who influences
me most is not he who does great Deeds, but he who makes me feel that I can do great deeds.”
Marry Parker Follet.

Leadership is the ability to build up confidence and zeal among people and to create an urge in
them to be led. To be a successful leader, a manager must possess the qualities of foresight,
drive, initiative, self-confidence and personal integrity. Different situations may demand
different types of leadership.

Definitions:
Leadership has been defined in various ways. Stogdill has rightly remarked that there are
almost as many definitions of leadership as there are people who have tried to define it.

The definitions given by some famous authors and management experts are given
below:
1. Koontz and O’Donnell, Leadership is the ability of a manager to induce subordinates to work
with confidence and zeal.

2. Dubin, R.Leadership is the exercise of authority and making of decisions.

3. Allford and Beaty, Leadership is the ability to secure desirable actions from a group of
followers voluntarily, without the use of coercion.

4. George R. Terry, Leadership is the activity of influencing people to strive willingly for group
objectives.

5. Hemphill, J.K., Leadership is the initiation of acts which result in a consistent pattern of group
interaction directed towards the solution of a mutual problem.

6. Jame J.Cribbin, Leadership is a process of influence on a group in a particular situation at a

given point of time, and in a specific set of circumstances that stimulates people to strive
willingly to attain organisational objectives and satisfaction with the type of leadership
provided.

7. Peter Drucker, Leadership is not making friends and influencing people, i.e., salesmanship it
is the lifting of man’s visions to higher sights, the raising of man’s personality beyond its
normal limitations.

 Approaches to leadership

In this project we are discussed the relationship between strategic management and leadership. We
also discussed in these assignments leadership styles and their impact on strategic decisions.
Leaders required to those leadership style which is appropriate for them, their section, their
subordinates and the business they work for. The situations leaders need varying leadership styles
based on a specific task, the worker being managed and the leaders personality. The Purpose of this
report to identify the different leadership styles which would help in understanding how to manage
the team in the company and main focus will be on what kind of leadership style adopted by
organization to run their business. It has been demonstrated in the report that what kind of
different qualities required by the different levels of authority. So that there should be no
misunderstanding who report to who and who is responsible for what. Criticism is done to show, if
company could use another leadership style, what they are using now would be more beneficial in
achieving their objectives. Manager is the person who is having quality to get the things done
through others. It means that Manager is responsible for achieving the targets. Focus is given on
what kind of managerial skill practised in the company for smooth running of concern.
Introduction:-
Leadership culture is defined by the collective action of formal and informal leaders acting together
in the help of organizational goals that ultimately marks the difference. When we speak about the
leadership it is the both leaders themselves and the relationship among them, the skills and
behavior of the leaders are required to execute the organization strategy and make the most
wanted culture. The collective leadership capabilities of the leaders acting together in the groups
and across the boundaries to implement strategies. (William and Michael, 2011.)

Generating the effort and commitment to work towards objectives is central to managing any
human activity. People use the term ‘effective leader’ to denote someone who brings innovation,
moves an activity out of trouble into success, makes a worthwhile difference. They see
opportunities to do new things, take initiatives, and inspire people.

Level of approaches

Of course, whatever theory we use to inspire our approach to leadership, the exercise of leadership
will vary from one situation to the next. In their leadership continuum model, Tannenbaum and
Schmidt (1973) provide a good overview of the different levels of leadership and engagement that
need to be exercised in different scenarios. This model makes a lot of sense in clinical practice — in
an emergency, for example, a leader may need to be autocratic, but in the general run of practice,
this leader will need to be democratic and inspirational. One of the interesting aspects of this model
is that it demonstrates clearly that the leader is never 100% in control of what the team does,
because even at the ‘Tell’ (or autocratic) end of the model, a leader cannot always be sure how
members of the team will act. When operating in ‘Sell’ mode, the leader is appealing to the team
members in order to persuade them through reason to achieve the roles they have been tasked
with. This mode, unlike ‘Tell’, is not autocratic but still sees the leader in the role of directing team
members. In ‘Consult’ mode, leaders act as arbiters. They consult with the team and decide with the
team as to how work will be undertaken. This mode of engagement is designed to increase
cooperation and the feeling of belonging within the team. It is not a sign of weak leadership; good
leaders who know what they want to achieve will be able to steer the consultation so that the
decision the team makes reflects theirs. The leader operating at the ‘Participate’ level helps set the
agenda as to what work needs to be done, but does not interfere with how the team achieves this.
Leaders who operate at this level know the value of their team and are sensible enough to ‘allow
the team head’, recognising this is a good way to motivate members of the team and to demonstrate
their trust. What we have seen in this brief look at the theory of leadership is that leadership has
multiple identities and operates at many different levels. Sometimes it is the situation that dictates
the leadership style and level of engagement required of the clinical leader. On other occasions it is
the choice of the individual leaders to choose how they operate. Having stated all this, leadership
styles and levels of engagement are to some greater or lesser extent dictated by how well
established a team is, how cohesive the team is and how complex the tasks that the team has to
undertake are; we will return to some of these themes in later papers in this series..
“The most effective leaders will be people who use their energies to accomplish
desired results. Leadership will focus on action and implementation”. Katz and Kahn
(1948).
In the process of leadership three main skills such as technical, human and conceptual are
necessary.

Technical skill: – perform the specific tasks capability to use information, methods, technique and
tools are essential and get from experience, education and training.

Human skills: – human skills are the capability and results in working with and through individuals.
Human skills include accepting of motivation and purpose of effective leadership.

Conceptual skills: – conceptual skills provide skills to understand the complexities on the whole
organization. Through Conceptual knowledge leaders act to according to the objectives of the total
business rather than only on the basis of the goals and needs have direct team.

There are three major approaches of leadership theory. They are:-

 Historical approach

 Classical approach

 Contemporary approach

 Trait theory: – Trait theory of leadership provides the skills to identify qualities which
helpful when leading with others and jointly, these appear as a universal leadership style.
Example includes understanding, fierceness, good decision making. Trait theories assume
that leaders contribute to number of ordinary individually traits and features and that
leadership emerges from this traits.a trait is relatively stable aspect of an individual’s
personality that influences behavior in a particular direction. Many people have tried to
identify the personal characteristics associated with effective leaders. According to trait
theory every person will be born with some traits. Trait theory says that every leader will
have certain traits that make them more suited to leadership than others. A person would
have these traits from birth which will be his characteristics which makes him more
suitable to be leaders than others. Traits are the distinguishing personal characteristics of a
leader, such as intelligence, values, self confidence and appearance

 Behavior theory:-according to behavior theory leaders are made not born. This theory
is completely against the traits theory. Traits theory says that leadership qualities come
from birth where as the classical leadership style like the behavioral theory says that they
come from practice and not from birth. It says that leadership is defined, hence any person
can learn those qualities required to be leader and can successfully lead when there is need
for it. Leadership qualities can be adopted by looking at others. Perhaps any leader can
adopt the correct behavior with appropriate training.
 Contingency theory:-contingency approach a model of leadership that describes the
relational ship between leadership styles and specific organizational situations. An early,
extensive effort to combine leadership style and organizational situation into a
comprehensive theory of leadership was made by Fiedler and his associates. Contingency
theory is a refinement of the situational viewpoint and focuses on identifying the situational
variables which best predict the most appropriate or effective leadership style to fit the
particular circumstances.

 Transactional approach: – James Burnes distinguish between transactional and

transformational leaders. A transactional leader is one who treats leadership as an
exchange, giving followers what they want if they do what the leader desires. And a
transformational leader is a leader who treats leadership as a matter of motivation and
commitment, inspiring flowerers by appealing to higher ideals and moral values. The
leader, who holds power and control over his or her employees or followers, provides
incentives for follower to do what the leader wants. Hence, transactional leadership simply
involves an exchange that leads to desired outcomes and transformational leadership
motivates us to do more than we originally expected to do.

 Participative theory:-participative theory says that whatever the decision or

whenever the decision is need to be made, involve everyone who is attached to that. Don’t
take decision solely. Reason is when everyone come together to take the decision they feel
involved in it. In participative type of leadership people are more committed because they
are involved in decision making. The drawback of this style would be it can confuse a leader
as which course of action to be taken as there are more ideas. This can be time consuming
because more people are involved decisions cannot be made quickly.