Principles of Management

Principles Of Management Assignment
i. a)
List and explain the four Basic Functions of Management.

Management involves far more than just telling others what to do. Before any
of you decide that you think you can do your boss's job, let's take a look into
more of what a manager does.
The major functions that a manager completes can be categorized into four
different functions known as planning, organizing, leading, and controlling.
For some of us, we only see the final two - leading and controlling - but you
should know that for every managerial behavior you do see, there is an equal
amount that you do not. Behind the manager's closed door, he or she spends
a good deal of his or her time planning and organizing, so that he or she can
effectively carry out the functions of leading and controlling.
Controling
Planning
Organizing
Leading
Figure 1.0 Basic Function of Management

i)
Planning is one of the most important project management and time

management techniques. Planning is preparing a sequence of action steps
to achieve some specific goal. If you do it effectively, you can reduce much
the necessary time and effort of achieving the goal. This step involves
mapping out exactly how to achieve a particular goal. Say, for example,
that the organization's goal is to improve company sales. The manager
first needs to decide which steps are necessary to accomplish that goal.
These steps may include increasing advertising, inventory, and sales staff.
These necessary steps are developed into a plan. When the plan is in
place, the manager can follow it to accomplish the goal of improving
company sales.
It is the basic function of management. It deals with chalking out a future
course of action & deciding in advance the most appropriate course of
actions for achievement of pre-determined goals. According to KOONTZ,
Planning is deciding in advance - what to do, when to do & how to do. It
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bridges the gap from where we are & where we want to be. A plan is a
future course of actions. It is an exercise in problem solving & decision
making. Planning is determination of courses of action to achieve desired
goals. Thus, planning is a systematic thinking of ways & means for
accomplishment of pre-determined goals. Planning is necessary to ensure
proper utilization of human & non-human resources. It is all pervasive, it is
an intellectual activity and it also helps in avoiding confusion, uncertainties,
risks,
ii)
Organizing is the function of management that involves developing an

organizational structure and allocating human resources to ensure the
accomplishment of objectives. The structure of the organization is the
framework within which effort is coordinated. The structure is usually
represented by an organization chart, which provides a graphic
representation of the chain of command within an organization. Decisions
made about the structure of an organization are generally referred to
as organizational design. The matching of organizational form, such as
structure, reporting relationships, and information technology, with the
organizations strategy decisions.
It is the process of bringing together physical, financial and human
resources and developing productive relationship amongst them for
achievement of organizational goals. According to Henry Fayol, To
organize a business is to provide it with everything useful or its functioning
i.e. raw material, tools, capital and personnels. To organize a business
involves determining & providing human and non-human resources to the
organizational structure. Organizing as a process involves:
iii)
Identification of activities.
Classification of grouping of activities.
Assignment of duties.
Delegation of authority and creation of responsibility.
Coordinating authority and responsibility relationships.
Leading is when managers motivate subordinates, influence individuals or

teams as they work, select the most effective communication channel, or
deal in any way with employee behaviour issues, and they are leading.
The third function of management is leading. This goes beyond simply
managing tasks; rather, it involves communicating, motivating, inspiring,
and encouraging employees towards a higher level of productivity. Not all
managers are leaders. An employee will follow the directions of a manager
because they have to, but an employee will voluntarily follow the directions
of a leader because they believe in who he or she is as a person, what he
or she stands for, and for the manner in which they are inspired by the
leader.
2
Leading is another of the basic function within the management process.

Managers must be able to make employees want to participate in
achieving an organization's goals. Three components make up the leading
function:
Motivating employees
Influencing employees
Forming effective groups.
The leading process helps the organization move toward goal attainment.
iv)
Controlling is to ensure that work is proceeding as it should, managers

must monitor and evaluate performance. The process of monitoring,
comparing, and correcting. The controlling function of management is
useful for ensuring all other functions of the organization are in place and
are operating successfully. Controlling involves establishing performance
standards and monitoring the output of employees to ensure each
employees performance meets those standards. The controlling process
often leads to the identification of situations and problems that need to be
addressed by creating new performance standards. The level of
performance affects the success of all aspects of the organization.
The controlling function of management, in large part, is about monitoring
the organizations performance to ensure the ultimate goals are being met
and correcting any areas of the process that are restricting the outcome
desired. Praise and recognition are controlled at this level. Since the final
data is gathered here the manager generally knows who is and who isnt
excelling in their role of the processes. You will ensure continued success
if you acknowledge those that are exceeding expectations while at the
same time affecting another to strive for the same recognition. It is a winwin for everyone.
b) List and explain the 3 levels of management in an organization.

Top
Manager
Board of
directors,
chief
executive
or
managing
director
Middle Manager
The branch managers and departmental
managers
First Line Managers

supervisory / operative level of management
Figure 2.0 Level of Management
i.
Top Manager is a designation of a member of the top management of the

organization. He has a responsibility at the top level of the whole
organization or company. These top managers are responsible for setting the
overall direction of a company and making sure that major organizational
objectives are achieved. Their leadership role can extend over the entire
organization or for specific divisions such as finance, marketing, human
resources, or operations. Top Managers role is to :
ii.
Top Manager must build fairness into the organizational processes.

This serves as a safety net for risk takers.
Organizational openness contributes to building and environment of
trust.
Top Manager must create mutual dependence and reciprocity in the
organizations.
Middle managers, are a step above the first-level managers. They serve as
intermediaries between lower-level managers and the highest level within the
management hierarchy. These managers may still be involved in the daily
company operations, but they often depend on the input of first-level
managers. Mid-level managers are generally operations managers or general
managers, but they can also serve as regional managers. Middle Managers
role is to :
iii.
The Middle Manager must deal with the facilities processes, and
equipment put in place by higher management.
He or She operate within budget constraints for training self and
subordinates.
The Middle Manager must be facilitator, enabling his or her people to
do their better jobs better, easier and with increased satisfaction.
He or she must help, encourage, praise and listen to worker.
First line managers are responsible for the day-to-day provision of social
care services. This means they support their staff and have a key role in
ensuring the standard of care delivered is always high. A first line managers
role is to:
manage the primary tasks and activities of the organisation
have a key role in determining whether standards of practice are being

consistently maintained
Support staff engaged in complex, personally demanding work and

ensure that staff are continually developed in knowledge based
practice.
First line managers may also be involved in any or all of the care planning
needs assessment, individual staff training plans and meeting National
Minimum Standards. Contact with people who need care and support relates
to these aspects of their work, rather than front line work at a supervisory
level.
ii. a)
What is decision making? Explain 3 types of decision making.

Decision making can be defined as the process of making choices among
possible alternatives. The skills considered important to effective decision
making are based on a normative model of decision making, which prescribes
how decisions should be made. The Opportunity is an occasion that requires
a decision to be made and recognize that decision making is performed at all
management levels. Decisions are made at every level of management to
ensure organizational or business goals are achieved. Further, the decisions
make up one of core functional values that every organization adopts and
implements to ensure optimum growth and drivability in terms of services and
or products offered. Below 3 type of decision making:-
i)
Organization vs. Personal Decision
Organization decision are those which managers undertake under

certain condition relating to organisation. Sometimes taken
independently and sometimes delegated to other colleagues.
Personal decision there are related to manager as an individual & not

as member of the organization, cannot be a task to another person.
ii)
iii)
Programmed vs. Unprogrammed decision
Programmed decisions are decisions that occur often enough in an

organization that standardized rules are used to make them. These
standardized rules can take the form of decision guidelines, standard
operating procedures, or check-lists. Programmed decisions help
ensure that tasks are performed smoothly and consistently.
Unprogrammed decisions relate to difficult situations for which there is

no easy solution. These matters are very important for the
organisation. For example, opening of a new branch of the organisation
or a large number of employees absenting from the organisation or
introducing new product in the market, etc., are the decisions which are
normally taken at the higher level.
Strategic vs. Tactical Decision

Strategic decision are important which affect objectives, organisational
goals and other important policy matters. These decisions usually involve
huge investments or funds. These are non-repetitive in nature and are
taken after careful analysis and evaluation of many alternatives. These
decisions are taken at the higher level of management.
Tactical Decision on the short term, strategic plans cover a relatively long
period of time whereas tactical plans cover a relatively short period of time
and emphasizes analysing the everyday functioning of the organization,
facts on which to base strategic plans are usually more difficult to gather
than are facts on which to base tactical plans.
b) List and explain the steps in the decision making process.
Analyze and
Define
Control and
Review the
result
Alternative
Solutions
DECISION
MAKING
Plan the
course of
action
The Best
Alernative
Figure 3.0 Decision Making Process
Analyze and define the problem Precisely by including specification of initial situation and final situation,
constituting the solution of the problem and to find a few important features
for appropriateness of the solution technique. After defining the problem,
the next important step is a systematic analysis of the available data.
Sound decisions are based on proper collection, classification and analysis
of facts and figures.
ii
State the alternative solutions Brainstorming for solutions to the problem. Brainstorming means collecting
as many ideas as possible, then screen out the listed ideas to find out
which one is the best.
iii
Select the best alternativeWhen deciding and selecting the best alternative, you might want to
consider which approach will be most likely to solve the problem in the long
term. Which of the approaches is the most realistic to accomplish for now?
Also find out the extent of risks which might be associated with each of the
alternatives you have stated.
iv
Plan the course of actionConsidering the situation after the problem is solved, what are the steps to
be taken to implement the best alternative to solve the problem.
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Implement the plan control and review the results of the plan again
the objectivesThis is where you will verify if the problem has been resolved and met your
expectation, whether the plan has been done according to the schedule. If
the plan doesnt work well, you might want to consider whether the plan
was realistic or not or were the resources insufficient enough to accomplish
the plan? No matter if the problem has been solved or not, you might still
need to consider the changes to be made, the lessons learnt throughout
this problem solving as well as highlighting the success of your problem
solving as to avoid any unforeseen circumstances.
3. a) Explain the steps in the control process?
No
Establish Standards
Measure performancecece
Re-evaluate Standard
Take corrective action
Performance Match the standards
Yes
Exceeds
Do Nothing
Figure 4.0 the Control Process
The control process involves carefully collecting information about a system,

process, person, or group of people in order to make necessary decisions
about each. Control is a continuous process. It is not applied when be
everything else is done. There may be some in-built controls in the exercise of
managerial techniques. In spite of this there may be a difference in standards
to be achieved and actual performance. This may be due to human
limitations. Some control methods may have to be applied to improve
performance. Managers set up control systems that consist of four key steps:
i.
Establish standards to measure performance. Within an organization's

overall strategic plan, managers define goals for organizational
departments in specific, operational terms that include standards of
performance to compare with organizational activities.
ii.
Measure actual performance. Most organizations prepare formal reports

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

activities to performance standards. When managers read computer
reports or walk through their plants, they identify whether actual
performance meets, exceeds, or falls short of standards. Typically,
performance reports simplify such comparison by placing the performance
standards for the reporting period alongside the actual performance for the
same period and by computing the variancethat is, the difference
between each actual amount and the associated standard.
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iv.
b)
Take corrective actions. When performance deviates from standards,

managers must determine what changes, if any, are necessary and how to
apply them. In the productivity and qualitycentered environment, workers
and managers are often empowered to evaluate their own work. After the
evaluator determines the cause or causes of deviation, he or she can take
the fourth stepcorrective action. The most effective course may be
prescribed by policies or may be best left up to employees' judgment and
initiative.
What is delegation. Give examples of 5 barriers to delegation?
Delegation is the assignment of responsibility or authority to another person

(normally from a manager to a subordinate) to carry out specific activities,
such as starting on proper tires during a wet race. It is one of the core
concepts of management leadership. However, the person who delegated the
work remains accountable for the outcome of the delegated work. Delegation
empowers a subordinate to make decisions, i.e. it is a shift of decision-making
authority from one organizational level to a lower one. Delegation, if properly
done, is not abdication. The opposite of effective delegation
is micromanagement, where a manager provides too much input, direction,
and review of delegated work. In general, delegation is good and can save
money and time, help in building skills, and motivate people.
i.
Lack of Trust in Themselves - Inferiority complex on the part of the

employees is the most common reason why employees resist delegation. The
subordinates feel that their capabilities are limited so they often refuse to
accept the challenges which may arise from delegation. They fear that their
colleagues or superior will know that they are incapable of doing the tasks
when something doesnt go right during the course of task completion. They
also fear that their inability to handle tasks assigned to them will be exposed
when they accept the tasks and eventually fail to complete them. Inferiority
complex is a serious obstacle to delegation.
ii.
Difficulty in Decision-Making - Even though the manager is ready to share

authority to employees, some subordinates depend too much on the manager
in making decisions. They always choose to go to their delegator for even the
simplest of problems that need quick decision-making. These individuals dont
have the skill to quickly look upon the situation and implement decisions on
their own. These individuals always want their superior to tackle the problems
and decide. They always try to avoid mental tension and always turn to their
superior for opinion and advice. The subordinates who are afraid to make
decisions and lack confidence on their ability will refuse accepting
responsibilities.
iii.
Poor Superior-Subordinate Relations - One factor that hampers the

process of delegation of authority is the lack of rapport between superior and
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subordinate. The manager may be hostile to employees and shows

unapproachable or unfriendly attitude. When employees do a good job, a
manager refuses to appreciate it and focuses on the errors of employees. The
manager often causes undue interference in the work assignment of the
subordinates, making them less productive. In effect, a subordinate refuses a
certain task delegated by a superior due to the latters unfavorable attitude.
The manager constantly interferes with the subordinates work and controls
him so the subordinate always refuses delegation.
iv.
Lack of Positive Incentives - Positive incentives go a long way in building

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

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

11
Chain of command its mean the order in which authority and power in an
organization is wielded and delegated from top management to every
employee at every level of the organization. Instructions flow downward along
the chain of command and accountability flows upward.
Authority Institutionalized and legal power inherent in a particular job,

function, or position that is meant to enable its holder to successfully carry out
his or her responsibilities.
b)
List and explain 4 common forms of organizational structure.
Functional Departmentalization are the most common. A structure of this type

groups individuals by specific functions performed. Common departments such
as human resources, accounting and purchasing are organized by separating each
of these areas and managing them independently of the others. For example,
managers of different functional areas all report up to one director or vice president
who has responsibility for all of the operational areas. The advantage of this type of
structure is that functions are separated by expertise but the challenges comes in
when different functional areas turn into silos that focus only on their area of
responsibility and dont support the function of other departments.
President
Production
Department
Marketing
Department
Finance
Department
Reasearch and
Development
Department
Human
Resources
Department
Figure 5.0 Functional Departmentalization
Product Departmentalization another common structure is to be organized by a

specific product type. Each product group falls within the reporting structure of an
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executive and that person oversees everything related to that particular product
line.For example an executive over Kraft products would be responsible for every
product under that label dressings, meats, sauces, etc.The advantage of this type
of structure is that it organizes products by category but can create completely
separate processes from other product lines within the organization.
Sales
Snack Division
Marketing
Product Manager
Sales
Noodle Division
Marketing
Figure 6.0 Product Departmentalization
Geographical Departmentalization jobs are grouped on the basis of a territory or

geography such as southern, Midwestern, or northwestern regions for an
organization operating.
CEO
South Region
North Region
West Region
Figure 7.0 Geographical Departmentalization

13
Process Departmentalization is a manner or practice of implementing a process

through combining related activities into separate groups or specialized functional
areas which are distinct from each other. The general idea here is that separation of
the process into groups of smaller activities makes it easier to perform this process
by personnel. In practice, departmentalization helps organizations make their
business processes more manageable and consistent
Human
Resource
Officer
Senior
Executive
(Melaka HQ)
Administration
Offier
Human
Resource
Clerk
Human Resources
& Administration
Manager
Human
Resource
Officer
Senior
Executive
(Branch)
Administration
Officer
Human
Resources
Clerk
Figure 8.0 Process Departmentalization
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5. a) What is leadership?
Leadership is the ability of a company's management to make sound
decisions and inspire others to perform well. Effective leaders are able to set
and achieve challenging goals, to take swift and decisive action even in
difficult situations, to outperform their competition, to take calculated risks and
to persevere in the face of failure. Strong communication skills, selfconfidence, the ability to manage others and a willingness to embrace change
also characterize good leaders.
b)
Explain the difference between leader and managers.

The main difference between leaders and managers is that leaders have
people follow them while managers have people who work for them. A
successful business owner needs to be both a strong leader and manager to
get their team on board to follow them towards their vision of success.
Leadership is about getting people to understand and believe in your vision
and to work with you to achieve your goals while managing is more about
administering and making sure the day-to-day things are happening as they
should.
Leaders focuses on achieving tasks, keeping the team motivated and
empowered to achieve that task. Thirdly, it involves getting the best out of
each and every individual for the benefit of the teams successful achievement
of those goals. It is about leading by example, inspiring, empowerment,
creating the most conducive environment for team success
Managers attend to operational excellence and, at their best, deliver against
expectations. Managers provide the business and its stakeholders with
reliability, certainty, and predictability, all of which are essential to the viability
and longevity of the organization. Great managers attend to continuous
process improvement, monitor progress against objectives, and track and
report the data that allows for solid fact-based decisions. Thus, every person
in every role has management responsibility the requirement to ensure that
others can rely on them and their teams to deliver as promised within the
parameters agreed.
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A Leader
c)
A Manager
A person emerge as a Leader based

on a situational factor.
Manager assume a position by

appointment.
A Leader has some personal power.

(Ability to influence).
A Manager has some positional power

(Right to command).
A Leader seeks those objectives

subordinates. (Mutuality Of
Objectives).
A Manager seeks those objectives

which is subordinates do not regard as
their own. (Conflict of Objective)
Explain any five competencies required of a leader.

i.
Desire to lead: strong desire to influence and lead others, willingness to take
responsibility.
ii.
Honesty and integrity: leaders built trust by being truthful and showing
consistency between word and deed.
iii.
Self-confidence: absence of self-doubt, show self-confidence to convince

followers of rightness of goals and decisions.
iv.
Intelligence: intelligent enough to gather and interpret large amounts of

information; able to create visions, solve problems, make correct decisions.
v.
Job-relevant knowledge: high degree of knowledge about the company,

industry, and technical matters to help make well-informed decisions and
understand consequences of those decisions.
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Humor
Communicatio
n
Honesty
Leadership
Delegation
Creativity
Commitment
Attitude
Figure 9.0 Great Leadership
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Principles Of Management Assignment

List and explain the four Basic Functions of Management.

Figure 1.0 Basic Function of Management

Planning is one of the most important project management and time