3457 Solved Assignment No1 Spring 2018 AIOU

ALLAMA IQBAL OPEN UNIVERSITY, ISLAMABAD

(Department of Business Administration)

Course: Management Theory & Practice (3457)

Level: BS (CS)/ PGD (CS) Semester: Spring, 2018

Total Marks: 100 Pass Marks: 50

ASSIGNMENT No. 1
(Units: 1–3)
Question No.1

Management is the art of getting things done through others

and with formally organized groups. Discuss various types of
managers. What are the challenges faced by the managers in
public sector of Pakistan?

ANSWER
Types of Managers

I’ve been able to identify these types of managers. Use these

types of managers as examples to identify the critical
competencies necessary to become an effective sales coach. It all
starts with the way we communicate.

The Problem-Solving Manager

This boss is task-driven and focused on achieving goals. These

problem solvers are constantly putting out fires and leading by
chaos. The paradox here is this: It is often the manager who

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creates the very problems and situations that they work so hard to
avoid. Continually providing solutions often results in the lackluster
performance that they are working so diligently to eliminate.

The Pitchfork Manager

People who manage by a pitchfork are doing so with a heavy and

often controlling hand: demanding progress, forcing accountability,
prodding and pushing for results through the use of threats and
fear tactics. This style of tough, ruthless management is painful for
people who are put in a position where they are pushed to avoid
consequences rather than pulled toward a desired goal.

The Pontificating Manager

The Pontificating Manager is the type of manager who can talk to

anyone and immediately make people feel comfortable. This
character strength becomes a crutch to their leadership style,
often blinding them to the need to further systemize their
approach. As a matter of fact, the only thing consistent about
these managers is their inconsistency.

The Presumptuous Manager

Presumptuous Managers focus more on themselves than anything

else. To them, their personal production, recognition, sales quotas,
and bonuses take precedence over their people and the value
they are responsible for building within each person on their team.
Presumptuous Managers often put their personal needs and
objectives above the needs of their team. As you can imagine,

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Presumptuous Managers experience more attrition, turnover, and
problems relating to managing a team than any other type of
manager.

The Perfect Manager

Perfect Managers possess some wonderful qualities. Perfect

Managers rely on their vast amount of product knowledge and
experience when managing and developing their salespeople.
Because of this great imbalance, these manager often fall short on
developing their interpersonal skills that would make them more
human than machine.

The Proactive Manager

The Proactive Manager encompasses all of the good qualities that

the other types of managers possess, yet without all of their
pitfalls. Here are the characteristics that this ideal manager
embodies, as well as the ones for you to be mindful of and
develop yourself. The Proactive Manager possesses the
• Persistence, edge, and genuine authenticity of the Pitchfork

Manager
• Confidence of the Presumptuous Manager

• Enthusiasm, passion, charm, and presence of the

Pontificating Manager
• Drive to support others and spearhead solutions like the

Problem-Solving Manager
• Desire to serve, respectfulness, sensitivity, nurturing ability,

and humanity of the Passive Manager

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• Product and industry knowledge, sales acumen, efficiency,
focus, organization, and passion for continued growth just
like the Perfect Manager.

Challenges faced by the Managers in Public Sector of

Pakistan

CHALLENGE 1: MIND THE SKILLS GAP

35% of the skills workers need, regardless of industry, will have

changed by 2020. So, if you thought the skills shortage was tough
now, it’s only set to get worse if we don’t do something about it.
The constant need to ensure our workforce is up to date on the
latest trends, knowledge and skills is a big challenge facing
managers today. No sooner have your teams completed the latest
classroom training, than their shiny new skills are already out of
date!

CHALLENGE 2: HIGH STAFF TURNOVER

Few jobs, or even careers, are for life now with the average time
spent in a job just 4.2 years (even less for millennia’s!). In this job-
hopping world, the challenge is how to retain top talent. Fail to do
so and the costs are massive! It takes 33% of an employee’s
annual salary to replace them (that goes up to a whopping 400%
for expert senior staff!). And of course, it’s not all about the hard
figures – it’s about team spirit! Each time someone leaves, their
ideas, company knowledge, expertise, or simple awesomeness
goes with them.

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CHALLENGE 3: CREATING INNOVATIVE TEAMS

In my previous blog on ‘innovation at work’ I discussed why

nurturing creative teams matters. Our business success and
survival depends on it! Yet, in challenging times it’s tempting to put
great ideas on the back burner. However, if we don’t encourage
innovation within our teams, those great ideas will soon dry up.
Worse still, employees will take their awesome brainwaves to a
more innovative employer! So, however busy you are, or profit-
focused the KPIs – it’s always worth prioritizing your team’s
creativity.

CHALLENGE 4: BREAKING DOWN SILOS

When I first joined the corporate world, working for a large blue
chip company (a long time ago!), it wasn’t long before I heard to
word ‘silos’ being thrown around. Unfortunately, business silos
continue to blight much of the corporate world today. For anyone
in the dark about this (lucky you!) – The term describes teams that
are inward-looking and inclined to hold onto information rather
than sharing their knowledge. In times of change there’s higher
risk of the dreaded silos forming. Silos are no place for your
company’s knowledge, ideas and talent! Communication and
expertise should flow freely throughout the organization to ensure
everyone benefits. This way, innovation and positive
organizational change can flourish.

CHALLENGE 5: FINDING THE HOLY GRAIL – EMPLOYEE

ENGAGEMENT

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Last but not least, one of the biggest challenges of our time,
employee engagement? Research shows engaged employees are
more productive, creative and less likely to leave. Therefore it’s
not surprising, 88% of businesses are seeking to improve
employee engagement in 2017.

Question No.2

Business managers often use a variety of management tools

and techniques to aid in making strategic planning decisions.
Discuss the followings with examples:

• Probability Theory
• Decision Trees
ANSWER
Probability Theory

Defining Uncertainty and Risk

Since ages people have been fascinated by the desire to know

what future holds for them and have been using various means
like interpretation of dreams, study of historic pattern and past
experience to predict future (Trippett, 1982). All predictions of
future come associated with the concept of uncertainty and this
uncertainty makes prediction of future a difficult task. This close
association of uncertainty with future and growing interest of
people to understand future has motivated extensive research in

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uncertainty and its management (Hillson & Murray-Webster,
2007).
As suggested by Hillson & Murray-Webster (2007), there are two
extreme schools of thoughts on the concept of uncertainty with
one suggesting that universe by nature is mysterious and
prediction is a futile exercise. While the other school suggests that
advancement in technology and knowledge enables one to predict
future more accurately thereby removing uncertainty. Hillson &
Murray-Webster (2007) suggest that the concept of uncertainty
relies on two key points namely;
Variability: a situation where the outcome of a measured factor
can be within a given range. It can also be referred as objective
uncertainty as suggested by theory of individual choice under
uncertainty (Machina, 2004).
Ambiguity: a situation where the outcome can either happen or not
or something totally different may happen in future. As per the
theory of individual choice under uncertainty, this is also known as
subjective uncertainty (Machina, 2004).
As defined by Oxford English Dictionary (O.E.D., 2008),
“uncertainty is (1) the state of being uncertain, (2) something that
is uncertain or causes one to feel uncertain”. This definition
suggests uncertainty as a negative entity. However, holistic review
of uncertainty demonstrates that uncertainty with its variability and
ambiguity elements only refers to possible differences in expected
outcome and final results without any negative or positive
implications.

Understanding Probability Theory

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Probability theory has evolved over ages since it was
1st introduced by Galileo as part of his observations on the dice
game (Webb, 1996). Primarily considered as part of mathematical
studies, probability theory aims at studying and explaining the
pattern arising from random experiments which can be executed
repeatedly and where the outcome is uncertain (Gut, 2005).
As with risk and uncertainty, there have been various definitions
offered for probability and the debate still continues around their
interpretation and validity in context of risk or uncertainty
(Cheeseman, 1985). These definitions often come with their own
calculi for uncertainty model which is based on certain
assumptions which lead to confusion (Cheeseman, 1985).
Broadly, in the frequenters interpretation probability arranges set
of observations as per the likelihood concept as against
arrangement by degree of belief suggested by Bayesians and
many other approaches (Ben-Haim, 2004).
As suggested above, there are many definitions for probability and
their respective interpretation. Probability simply indicates potential
outcome based on study of pattern or past historical data. There is
no guarantee that the suggested outcome may occur as there can
be a sale or no sale at all. Sale of goods does not depend on
frequency but on taste and choice of people along with other
circumstances. This lack of personal judgement context in
probability theory acts as a limitation of this theory. This argument
is very well supported by the approach taken by many Keynesians
that there are many situations where real uncertainty exists and no
amount of statistical analysis can provide accurate indicators for
future (Davidson, 1991).

Decision Trees in Management

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A decision tree is a decision support tool that uses a tree-

like graph or model of decisions and their possible consequences,
including chance event outcomes, resource costs, and utility. It is
one way to display an algorithm that only contains conditional
control statements.
Decision trees are commonly used in operations research,
specifically in decision analysis, to help identify a strategy most
likely to reach a goal, but are also a popular tool in machine
learning.

Question No.3

Planning is a management process, concerned with defining

goals for company’s future direction and determining on the
missions and resources to achieve those targets. Discuss
different dimensions and types of plans in detail.

ANSWER
Types of Plans

The most popular ways to describe organizational plans are

breadth (strategic versus operational), time frame (short term
versus long term), specificity (directional versus specific), and
frequency of use (single use versus standing). As Exhibit 8-1
shows, these types of plans aren’t independent. That is, strategic
plans are usually long term, directional, and single use whereas
operational plans are usually short term, specific, and standing.

What does each include?

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Strategic plans are plans that apply to the entire organization and
establish the organization’s overall goals. Plans that encompass a
particular operational area of the organization are called
operational plans. These two types of plans differ because
strategic plans are broad while operational plans are narrow. The
number of years used to define short-term and long-term plans
has declined considerably because of environmental uncertainty.
Long-term used to mean anything over seven years. Try to
imagine what you’re likely to be doing in seven years, and you can
begin to appreciate how difficult it would be for managers to
establish plans that far in the future. We define long-term plans
as those with a time frame beyond three years. Short-term plans
cover one year or less. Any time period in-between would be an
intermediate plan. Although these time classifications are fairly
common, an organization can use any planning time frame it
wants. Intuitively, it would seem that specific plans would be
preferable to directional, or loosely guided, plans. Specific plans
are clearly defined and leave no room for interpretation. A specific
plan states its objectives in a way that eliminates ambiguity and
problems with misunderstanding. For example, a manager who
seeks to increase his or her unit’s work output by 8 percent over a
given 12-month period might establish specific procedures, budget
allocations, and schedules of activities to reach that goal.
However, when uncertainty is high and managers must be flexible
in order to respond to unexpected changes, directional plans are
preferable. Directional plans are flexible plans that set out
general guidelines. They provide focus but don’t lock managers
into specific goals or courses of action. For example, Sylvia
Rhone, president of Motown Records, said she has a simple
goal—to “sign great artists.” So instead of creating a specific plan
to produce and market 10 albums from new artists this year, she
might formulate a directional plan to use a network of people
around the world to alert her to new and promising talent so she

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can increase the number of new artists she has under contract.
Keep in mind, however, that the flexibility of directional plans must
be weighed against the lack of clarity of specific plans. Some
plans that managers develop are ongoing while others are used
only once. A single-use plan is a one-time plan specifically
designed to meet the needs of a unique situation. For instance,
when Walmart wanted to expand the number of its stores in China,
top-level executives formulated a single-use plan as a guide. In
contrast, standing plans are ongoing plans that provide guidance
for activities performed repeatedly. Standing plans include
policies, rules, and procedures, an example of a standing plan is
the nondiscrimination and anti-harassment policy developed by
the University of Arizona. It provides guidance to university
administrators, faculty, and staff as they make hiring plans and do
their jobs.

Question No.4

Organizing is a systematic process of structuring, integrating

and coordinating the task, goals, activities and resources in
order to attain objectives. Explain the fundamentals of
organizing.

ANSWER

FUNDAMENTALS OF ORGANIZING

Professional organizer Rachel Strisik shares five organizing

fundamentals:
It's better to take it slow.

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"People will say, 'I want to organize my entire bedroom,' but that's
overwhelming, and it can derail you from the entire process," says
Strisik. Instead, write down the steps of your project first. "Looking
at chunks is more manageable, less overwhelming and more likely
to get done."
There is a difference between being neat and being organized.
Organizing is not just about getting bins; that is a big
misconception. Neat is stacking items and putting things away.
Organizing is having homes for items so you can find them when
you need them.
"Organizing is the next step that will allow you to spend time on
the things you want to spend time on rather than wasting time
looking for X," Strisik says. "It's unrealistic to think your house will
look neat all the time, especially if you have children. But it can
always be organized."
Off-site storage should be a last resort.
"I think they are a waste of money," says Strisik. "Not only is it a
major splurge, but what you put in there will probably never be
looked at again. “Out of sight, out of mind."
Looks matter.
If you like the color blue or flowers spend the extra 50 cents to get
blue files or the ones with flowers because you're more likely to
use them.
Remember that organizing is not a one-time event.
There's maintenance, too. Organizing works only if you continue to
sort, group, and file and discard as new items come into your
home. "The first time might be the hardest," Strisik says about
organizing, "but the next time is just maintaining what you've
already accomplished."

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Question No.5

Discuss the behavioral approach to leadership. How it is

different from earlier approaches.

ANSWER

Behavioral Approach to Leadership

Behavioral approach involves an interpersonal relationship

between a leader and subordinates in which the behavior of the
leader towards the subordinates constitute the most critical
element. The good behavior of the leader raises the morale, builds
up confidence and spirit among the team members and lack of
good behavior will discard him as a leader.

Two important behavioral theories are:

(i) Michigan Studies and

(ii) Ohio State University Leadership Studies:

Michigan Studies:

These empirical studies were conducted slightly after World War II

by the Institute of Social Research at the University of Michigan.
The purpose of these studies was to identify styles of leadership
behavior that results in higher performance and satisfaction of a
group.

These studies distinguished between two distinct styles of

leadership:

1. Production Centered Leadership:

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This leadership is also known as task oriented leadership.

The production oriented leadership stressed on certain

points:

(i) Rigid work standards, procedure and rules

(ii) Close supervision of the subordinates
(iii) Technical aspect of the job
(iv) Employees were not to be considered as human beings but as
tools to accomplish the goals of the organizations.

2. Employee Centered Leadership:

(i) Emphasized interpersonal relationships and taking care of
employees’ needs.
(ii) Employee-oriented leaders were associated with high group
productivity and higher job satisfaction.

Ohio State University Leadership Studies:

The Bureau of Research at Ohio State University conducted these

studies. The main objective of the studies was to identify the major
dimensions of leadership and to investigate the effect of leader’s
behavior on employee behavior and satisfaction.

Ultimately, these studies narrowed the description of leader

behavior to two dimensions:

(i) Initiating Structure

(ii) Consideration

Initiating Structure:
It refers to the leader’s behavior in defining and organizing the
relationship between him and members of the group.

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The purpose of initiating structure is to:

(a) Establish well defined patterns of organization.

(b) Develop channels of communications and methods or
procedures.
(c) To supervise the activities of employees.

Consideration:

Consideration refers to the behavior which can be

characterized by:

(a) Friendliness
(b) Mutual trust
(c) Respect
(d) Supportiveness
(e) Openness
(f) Concern for the welfare of employees

The findings of these studies are:

(i) There is a positive relationship between consideration and

regularity of employees and low grievances. But consideration is
negatively related to performance.
(ii) There is a positive relationship between initiating structure and
employee performance. But initiating structure is also associated
with absenteeism and grievances.
(iii) When both these dimensions are high, performance and
satisfaction tended to be high. But in some cases high productivity
was accompanied by absenteeism and grievances.

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2 ASSIGNMENT
ND

COMING SOON!!!

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