Lead and Manage People TTLM

CTTI, TVET System Learning Guide
LEARNING MODULE 1
TVET-PROGRAMME TITLE: Hotel Level IV

MODULE TITLE: Leading and Managing People
MODULE CODE: CST FBS4 01 0912
NOMINAL DURATION: 32 Hours
MODULE DESCRIPTION:
This unit describes the performance outcomes, skills and knowledge required to lead and
manage teams of people in the workplace, including volunteers where appropriate. The unit
focuses on modelling high standards, developing commitment and managing team performance
through effective leadership
LEARNING OUTCOMES:
At the end of the module the learners will be able to:
LO1: Model high standards of performance and behavior
LO2: Develop team commitment and cooperation.
LO3: Manage team performance
MODULE CONTENTS:
Introduction to the Module
1.1 Behavior Modification
1.2 Behavioral Self-Management
1.3 Organizational Reward Systems
LO2: Develop team commitment and cooperation
2.1 Classifications of plan
2.2 Communication
3.1 Monitor team performance
3.2 Delegation and authority
3.3 Mentor and coaching
 LEARNING METHODS:
-discussion
ASSESSMENT METHODS:
 written exam
 oral questioning
 Observation
ASSESSMENT CRITERIA:
Make individual performance a positive role model for others.
How support for and commitment to organization goals in day-to-day work
performance.
Treat people with integrity, respect and empathy
LO2: Develop team commitment and cooperation
Develop and clearly communicate plans and objectives in consultation with the team.
Make plans and objectives consistent with organization goals.
Communicate expectations, roles and responsibilities of team members and leaders in a
way that encourages individuals and teams to take responsibility for their work.
Encourage teams and individuals to develop innovative approaches to work.
Prepared by: - Ahder Tena, Gelan Dadi and Henok Mehari
Identify, encourage, value and reward individual and team efforts and contributions.
Model and encourage open and supportive communication styles within the team.
Seek and share information from the wider environment with the team.
Represent the team's interests appropriately in the wider environment.
Assess the skills of team members and provide opportunities for individual development.
Monitor team performance to ensure progress towards achievement of goals.
Delegate tasks and responsibilities appropriately, identify barriers to delegation and
implement processes to overcome them.
Provide mentoring and coaching support to team members.
Provide recognition and reward for team achievements.

CTTI
Food and Beverage Service Supervision Level IV
Learning Guide #01
Unit of Competency: Lead and Manage People
Unit Title: Leading and Manage People
LG Code: CST FBS4 01 0912
TTLM Code:
LO1: Modeling high standards of performance and behavior

Instruction Sheet Learning Guide #01

This learning guide is developed to provide you the necessary information regarding the following content
coverage and topics –
 Behavior Modification
 Behavioral Self-Management
 Organizational Reward Systems
This guide will also assist you to attain the learning outcome stated in the cover page. Specifically, upon
completion of this Learning Guide, you will be able to –
 Describe behavior modification
 Explain behavioral Self-Management
 Identify organizational Reward Systems
Learning Instructions:
1. Read the specific objectives of this Learning Guide.
2. Follow the instructions described in number 3 to 7.
3. Read the information written in the “Information Sheets 1”. Try to understand what are being
discussed. Ask you teacher for assistance if you have hard time understanding them.
4. Accomplish the “Self-check 1” in page __.
5. Ask from your teacher the key to correction (key answers) or you can request your teacher to correct
your work. (You are to get the key answer only after you finished answering the Self-check 1).
6. If you earned a satisfactory evaluation proceed to “Information Sheet 2”. However, if your rating is
unsatisfactory, see your teacher for further instructions or go back to Learning Activity #2.
7. ….

SESSION PLAN
UNIT OF COMPETENCE Leading and Managing People
MODULE TITLE CST FBS4 01 0912
LO1 Model high standards of performance and behavior
SESSION OBJECTIVES At the end of this session the trainees shall be able to:
1. Describe behavior modification

2. Explain behavioral Self-Management
3. Identify organizational Reward Systems
ACTIVITIES NOMINAL CONTENTS METHODS

DURATION
Behavior Modification Lecture-
SESSIONS discussion and
demonstration
Behavioral Self-Management Lecture-
6 hours discussion and
demonstration
Organizational Reward Systems Lecture-
discussion and
demonstration
EVALUATION 1 hour Accomplishment of LAP test Individual
activity
SUMMARY 2 hours Wrap-up and feedback Question and
answer

Information Sheet—I Behavior Modification

Behavior Modification: A Managerial Perspective
Behavior modification is based on the assumption that behavior is more important than its
“psychological causes,” such as the needs, motives, and values held by individuals. Thus, a behaviorist
such as B. F. Skinner focuses on specific behaviors and not on such intangibles as esteem needs or
personality structure. For example, a behaviorist, told that an employee isn‟t performing well, would
probably ask, “What specific behaviors led to this observation?” Specific and distinguishable behaviors
are the most important bases in developing any behavior modification plan to correct a performance
problem. In addition to the attention devoted to these behaviors, there‟s an emphasis on the
consequences of behavior. For example, suppose that all new management trainees are given a two day
training program on preparing budget reports. Shortly after the training sessions, managers notice that
most of the reports are still not being prepared correctly. One explanation may be that the training
program was ineffective. However, behaviorists might approach the problem from a different direction.
First, they could determine whether the trainees understand the importance of correct reports. They
might then find out which trainees are turning in correct reports and what consequences, if any, are being
received by these trainees. It could be that turning in correct reports results in nothing, that there are no
observable consequences. In the same manner, submitting an incorrect report may also result in no
consequences, positive or negative. The behaviorists‟ findings might result in developing a program of
positive and negative consequences (e.g., recognition, praise, a meeting with the boss to go over
mistakes). Behaviorists believe people tend to repeat behaviors that lead to positive consequences. This
principle could serve as a cornerstone in improving the report accuracy of trainees.
The proposed application of behavior modification in organizations follows a five-step problem-solving

process similar to that in Figure 6.2.

Performance Analysis Questions

Explore Antecedents
Does the employee know what is expected?
Are the standards clear?
Have they been communicated?
Are they realistic?
Identify Behaviors
Can the behavior be performed?
Could the employee do it if his or her life depended on it?
Does something prevent its occurrence?
Assess Consequences
Are the consequences weighted in favor of performance?
Are improvements being reinforced?
Do we note improvement even though the improvement may still leave the employee below the
company standards?
Is reinforcement specific?
1. Managers must identify and define the important behavior. A behavior is pinpointed when it can be
accurately observed and reliably recorded. To be pinpointed as an important behavior, there must be
positive answers to these questions:
(a) Can it be seen?
(b) Can it be measured?
2. Managers must measure or count the occurrences of the pinpointed behavior. This count provides
managers with a clear perspective on the strength of the behavior under the present, or before-change,
situation. The count serves as the means of evaluating any later changes in behavior. Managers can
graph these data to determine whether the behavior is increasing, decreasing, or remaining the same.
3. Managers conduct an analysis of the ABCs of the behavior, also called functionally analyzing the
behavior. In ABC analysis, referred to earlier, the A designates analyzing the antecedents of B, the
pinpointed critical behaviors; and the C indicates the associated consequence. Specific analyses of the
ABCs attempt to determine where the problems lie. Thomas Connellan has developed a set of
performance analysis questions to get at the problem source (Table 6.1). The ABC analysis permits
managers to consider performance analysis questions important in formulating any specific program. In
analyzing absenteeism, for example, managers using a question format and the type of framework
displayed in Table 6.2 are systematically viewing the problem of absenteeism in terms of antecedents,

behaviors, and consequences.

Using the ABC Analysis on an Absenteeism Problem
4. The first three steps in an applied behavior modification program set the stage for the actual actions by
the manager. The goal of operant conditioning is to strengthen desirable and observable critical
performance behaviors and to weaken undesirable behaviors. The fourth step involves the strategies for
accomplishing these goals, which are discussed earlier in this section. They are positive rein forcers,
negative rein forcers, punishment, and extinction. Managers prefer to use positive reinforcement in most
applied behavior modification programs. But identifying positive rein forcers isn‟t always easy. The
most obvious approach for managers to take is to ask subordinates what rewards they prefer. Another
identification method is to use attitude surveys asking job reward preferences questions. Note also that
punishment and extinction by themselves often do not give guidance to employees as to how they can
improve their performance.
5. The fifth step involves evaluation. A major weakness in many applied motivational programs is that
formal evaluations aren‟t conducted. Another weakness is the fact that evaluations tend to place too
much focus on the negative aspects of employees‟ performance. The evaluation of an applied program
permits the manager to trace and review changes in behavior before and after the implementation of an
action program. Evaluation permits managers to measure performance on an ongoing basis.
Furthermore, evaluation can provide feedback to managers on the behaviors exhibited. This feedback
enables managers to make necessary and timely corrections in the program.
Behavioral Self-Management
Quitting smoking, dieting, experiencing personal growth and development, and sticking with an exercise
regimen each involve the notion of self-control. Regulating one‟s own motivation has received some
attention in the organizational literature. The concepts of self-motivation have evolved primarily from

the social learning theory literature and related work in self-control. In the organization literature, this
process has been referred to as
Behavioral self-management (BSM).
Self-management, which is often called self-control, is defined as follows: “A person displays self-
control when, in the relative absence of immediate external constraints, he engages in behavior whose
previous probability has been less than that of alternatively available behaviors.” In essence, this
suggests that there are times when individuals will choose behaviors that they have not chosen
consistently in the past, and this selection may be based on the expectation of positive outcomes in the
future from this course of action. For example, a college student may decide that it‟s time to “buckle
down” and begin applying himself to his courses with the hope that he can earn higher grades (and
increase his GPA). Several features of self-management need to be noted. Self-management is a process
whereby a person is faced with immediate response alternatives (e.g., to work moderately hard or to
work very hard to complete the job) involving different consequences. Self-management behavior may
include personal performance goals, self-instructions on how to achieve goals, self-administered
consequences, a plan to behave in a particular manner, or a strategy for personally developing a set of
skills.
In BSM, a person is assumed to have some control over her behavior, cognitive processes, and
contingent consequences. Indeed, this control is the basis for the notion of empowerment, a broad
movement toward providing workers and teams with greater input into their jobs. At the workplace or
outside of it, everyone practices BSM to some degree, and it appears to have an important impact on
performance within various groups such as managers of joint ventures. Usually we set certain behavior
standards and reward or punish ourselves according to personal judgments we make about how our
behavior relates to these standards. Similar to the example above, when a student works hard all
semester in a challenging course in college and ends up earning an A, he‟s likely to feel that hard work
pays off (i.e., disciplined study behavior leads to a high grade).
Self-Regulation Methods

A Self-Regulation Model
Because effective self-management appears to offer potential benefits to employees and organizations, a
general framework could prove useful. Frederick Kanfer has proposed a three stage model that has
managerial application value. Figure 6.3 shows the Kanfer model of self-regulation as applied to a work
situation. According to the model, when a non-routine event (e.g., new boss, unexpected Web site crash)
disrupts the normal work pattern, a person begins to practice self-examination (what Kanfer designates
as self-regulation).
Being assigned to a new supervisor doesn‟t happen every day, so it would be considered a non-routine
occurrence. The event would initiate such thoughts as: What does the new supervisor expect from me?
How am I currently performing? How will I need to perform to project a good impression on the new
supervisor? This is stage 1, self-monitoring. Self-evaluation (stage 2) would involve comparing the
previous supervisor with the new one and deciding whether previous performance will be sufficient to
impress the new supervisor. In stage 3, self-reinforcement, the person would exercise his own
reinforcement for performing at an acceptable level. Kanfer proposes that self-regulation occurs quickly
and without much awareness by a person.
BSM may appear to be simply another variant of organizational behavior modification. However, there‟s
a distinct difference in terms of the importance of cognitive processes in BSM, as it combines the
principles of learning with an emphasis on human interactions in a social setting. In contrast to OBM,
which focuses specifically on antecedents, behavior, and consequences, the behavioral self-management
approach places more stress on the uniquely human cognitive processes involved in acquiring and
maintaining patterns of behavior without the input of other people.
Organizational Reward Systems
Managers who understand and are comfortable with a number of motivational approaches are better
prepared to design effective and motivational reward programs. Theories set the tone and the direction of

how to create a motivational atmosphere. Applying the theoretical principles to the work environment is
what an organizational reward system attempts to accomplish.
Numerous changes are taking place in how performance is evaluated and rewards are distributed.
Requests to eliminate piece rate incentive systems, convert all reward systems to group-based
approaches, shift risk from employers to employees by making a greater percentage of compensation
variable in nature (e.g., bonuses), and legislate how much executives can earn are being presented as
universally perfect ways to address rewards. Although parts of each suggestion have some validity, such
radical proposals are unlikely to influence the majority of managers. Instead of radical changes and
across-the-board debunking, progressive approaches are likely to draw more attention. Pay systems
based on competencies and contributions made, team-based incentives, and rewards focusing on
improved results are becoming more widely considered and implemented systems. As organizations
become more involved in global transactions, business pay and rewards will be more closely linked to
overall unit and total company results. Instead of eliminating individual reward systems and accepting
group-based reward systems, it‟s better to examine the positive and negative motivational features of
various reward systems.
A Model of Individual Rewards
The main objectives of reward programs are (1) to attract qualified people to join the organization, (2) to
keep employees coming to work, and (3) to motivate employees to achieve
high levels of performance. A model illustrating how rewards fit into an organization‟s overall policies
and programs is useful to managers. Figure 6.6 presents a model that integrates motivation, performance,
satisfaction, and rewards. It suggests that the motivation to exert effort isn‟t enough to cause acceptable
performance. Performance results from a combination of the effort of an individual and that person‟s
ability, skill, and experience.
Management evaluates each individual‟s performance either formally or informally. As a result of the

evaluation, management distributes extrinsic rewards. The rewards are evaluated by the individual.
Individuals also receive or derive intrinsic rewards from the job. To the extent that rewards are adequate
and equitable, the individual achieves a level of satisfaction. A significant amount of research has been
done on what determines whether individuals are satisfied with rewards. Edward Lawler has summarized
five conclusions based on the behavioral science research literature:
1. Satisfaction with a reward is a function of both how much is received and how much the individual
feels should be received. This conclusion is based on the comparisons that people make. When
individuals receive less than they feel they should, they‟re dissatisfied.
2. An individual’s feelings of satisfaction are influenced by comparisons with what happens to others.
People tend to compare their efforts, skills, seniority, and job performance with others‟. They then
attempt to compare rewards; that is, they compare their own inputs with others‟ inputs relative to the
rewards received.
3. Satisfaction is influenced by how satisfied employees are with both intrinsic and extrinsic rewards.
Intrinsic rewards are valued in and of themselves; they‟re related to performing the job. Examples would
be feelings of accomplishment and achievement. Extrinsic rewards are external to the work itself; they
are administered externally. Examples would be salary and wages, fringe benefits, and promotions.
There‟s debate among researchers as to whether intrinsic or extrinsic rewards are more important in
determining job satisfaction. Most studies suggest that both rewards are important. One clear message
from the research is that extrinsic and intrinsic rewards satisfy different needs.
4. People differ in the rewards they desire and in the relative importance different rewards have for
them. In fact, preferred rewards vary at different points in a person‟s career, at different ages, and in
various situations.
5. Some extrinsic rewards are satisfying because they lead to other rewards. For example, a large office
or an office that has carpeting or drapes is often considered a reward because it indicates the individual‟s
status and power. Money is a reward that leads to such things as prestige, autonomy, security, and
shelter.
The relationship between rewards and satisfaction isn‟t perfectly understood, nor is it static. It changes
because people and the environment change. But there are important considerations that managers can
use to develop and distribute rewards. First, rewards must be sufficient to satisfy basic human needs.
Federal legislation, union contracts, and managerial fairness have provided at least minimal rewards in
most work settings. Second, individuals tend to compare their rewards with those of others. People make
comparisons regardless of the quantity of the rewards they receive. If inequities are perceived,
dissatisfaction occurs. Finally, as the OB at Work illustrates, managers distributing rewards must
recognize individual differences. Unless individual differences are considered, the reward process

invariably is less effective than desired. Any reward package should (1) be sufficient to satisfy basic
needs (e.g., food, shelter, clothing), (2) be considered equitable, and (3) be individually oriented.
Extrinsic and Intrinsic Rewards
Extrinsic Rewards
Financial Rewards: Salary and Wages
Money is a major extrinsic reward. It has been said that “although it is generally agreed that money is the
major mechanism for rewarding and modifying behavior in industry . . . very little is known about how it
works.” To really understand how money modifies behavior, the perceptions and preferences of the
person being rewarded must be understood, which of course a challenging task is for managers. Success
requires careful attention and observation of employees. In addition, managers must be trusted, so that
workers freely communicate their feelings about financial rewards. Unless employees see a connection
between performance and merit increases, money isn‟t a powerful motivator. In some cases, a well-
designed appraisal system can make the pay–performance connection clear to employees. This clarity
doesn‟t just happen; managers must work hard at communicating the performance–financial reward
connection.
Increasingly, critics charge that the pay–performance relationship should be strengthened for chief
executives in large corporations and that Fortune 500 chief executive officers (CEOs) are grossly
overpaid. Executive compensation has become a controversial issue. Experts use different statistical
techniques to illustrate which executive is the “best bargain” and who‟s the “worst buy.” Front-page
stories contrasting million-dollar paychecks for executives and more layoffs for employees are painful
and emotion laden. Critics contend that American executives are paid too much and that their salaries
aren‟t related to their companies‟ performance.
This inequity is considered to be one reason the United States is competitively being challenged. One
study of corporate business units determined that a small difference in pay between lower-level
employees and upper echelon managers is associated with high product quality. The researchers
suggested that the smaller differential may have resulted in higher commitment to organizational goals.
The federal government has on a number of occasions reviewed laws to influence executives‟ pay. The
most controversial suggestions would limit the amount that an executive can be paid by capping it at
some absolute level or at some multiple of what the lowest paid worker earns. For example, in 2010, a
salary cap of $500,000 was imposed on most of the 45 highest paid employees from several of the
companies that received government stimulus funding, including American International Group (AIG),
General Motors, Chrysler Group, Chrysler Financial, and General Motors Acceptance Corporation
(GMAC). The effect of legislation on executives‟ motivation to work hard, take risks, and even enter the
profession needs to be considered by any politician introducing bills in Congress. Differences across

jobs and industries also need to be cautiously considered before executive compensation becomes
dictated by law.
Financial Rewards: Fringe Benefits
In the United States, organizations spend 35 to 40 percent of their total compensation amount on
employee benefits. A Conference Board–Gallup Poll survey indicated that 74 percent of all workers in
America say that employee benefits are crucial to job choice. If limited to only one benefit (beyond
money), 64 percent say to provide them with health care. In most cases, fringe benefits are primarily
financial. But some (such as software maker SAS‟s on-site gymnasium) aren‟t entirely financial. A
major financial fringe benefit in many organizations is the pension plan. Fringe benefits such as pension
plans, health insurance, and vacations aren‟t usually contingent on employees‟ performance. In most
cases, they‟re based on seniority or length of employment.
Interpersonal Rewards
The manager has some power to distribute such interpersonal rewards as status and recognition.
Managers and co-workers both play roles in granting job status. By assigning individuals to prestigious
jobs, the manager can attempt to improve or remove a person‟s status. But if co-workers don‟t believe
that an employee merits a particular job, status isn‟t likely to be enhanced. In some situations, by
reviewing performance, managers can grant what they consider to be job changes that improve status.
Much of what was just stated about status also applies to recognition. In a reward context, recognition
refers to managerial acknowledgment of employee achievement that could result in improved status.
Recognition from a manager could include public praise, expressions of a job well done, or special
attention. The extent to which recognition is motivating depends, as do most rewards, on its perceived
value and on the connection that the individual sees between it and behavior.
Promotions For many employees, promotions don‟t happen often; some never experience even one in
their careers. Managers making promotion reward decisions attempt to match the right persons with the
jobs. Criteria often used to reach promotion decisions are performance and seniority. Performance, if it
can be accurately assessed, is often given significant weight in promotion reward allocations.
Intrinsic Rewards Completion
The ability to start and finish a project or job is important to some individuals. These people value task
completion. The effect that completing a task has on them is a form of self-reward. Opportunities that
allow such people to complete tasks can have a powerful motivating effect.
Achievement
Achievement is a self-administered reward derived from reaching a challenging goal. David C.
McClelland has described individual differences in those striving for achievement. Some seek
challenging goals, while others seek moderate or low goals. In goal-setting programs, difficult goals may

result in a higher level of individual performance than do moderate goals. Even in such programs,
however, individual differences must be considered before reaching conclusions about the importance of
achievement rewards.
Autonomy
Some people want jobs providing the right to make decisions; they want to operate without being closely
supervised. A feeling of autonomy could result from the freedom to do what the employee considers best
in a particular situation. In jobs that are highly structured and controlled by management, it‟s difficult to
create tasks that lead to a feeling of autonomy.
Personal Growth
The personal growth of any individual is unique. Individuals experiencing such growth can sense their
development and see how their capabilities are being expanded. By expanding their capabilities,
employees can maximize or at least satisfy skill potential. Some become dissatisfied with their jobs and
organizations if not allowed or encouraged to develop their skills. The rewards included in this section
are distributed or created by managers, work groups, or individuals. The OB and Your Career above
discusses some tips for finding jobs that provide individuals with desired extrinsic and intrinsic rewards.
The Interaction of Intrinsic and Extrinsic Rewards
The general assumption has been that intrinsic and extrinsic rewards have an independent and
additive influence on motivation. That is, motivation is determined by the sum of the person‟s
intrinsic and extrinsic sources of motivation. This straightforward assumption has been questioned by
several researchers. Some have suggested that in situations in which individuals are experiencing a high
level of intrinsic rewards, the addition of extrinsic rewards for good performance may cause a decrease
in motivation. Basically, the person receiving self-administered feelings of satisfaction is performing
because of intrinsic rewards. Once extrinsic rewards are added, feelings of satisfaction change because
performance is now thought to be due to the extrinsic rewards. The addition of extrinsic rewards tends to
reduce the extent to which the individual experiences self-administered intrinsic rewards. The argument
concerning extrinsic rewards‟ potential negative effects has stimulated a number of research studies.
Unfortunately, these studies report contradictory results. Some researchers report a reduction in intrinsic
rewards following the addition of extrinsic rewards for an activity; others have failed to observe such an
effect.
Rewards, Turnover, and Absenteeism
Managers may assume that low turnover is a mark of an effective organization. However, some
organizations would benefit if disruptive and low performers quit. Thus, the issue of turnover needs to
focus on who is leaving as well as on frequency. Ideally, if managers could develop reward systems that
retained the best performers and caused poor performers to leave, the overall effectiveness of an

organization would improve. To approach this ideal state, an equitable and favorably compared reward
system must exist. The feelings of equity and favorable comparison have an external orientation. That is,
the equity of rewards and favorableness involves comparisons with external parties. This orientation is
used because quitting most often means that a person leaves one organization for an alternative
elsewhere.
No perfect means exist for retaining high performers. A reward system based on merit ratings should
encourage better performers to remain with the organization. Also, the reward system needs some
differential that discriminates between high and low performers. High performers must receive
significantly more extrinsic and intrinsic rewards than low performers.
Absenteeism, no matter for what reason, is a costly and disruptive problem facing managers. It‟s costly
because it reduces output and disruptive because it requires that schedules and programs be modified.
Absenteeism in the United States is estimated to cost over $70 billion per year. On a related note, a
concept known as presenteeism refers to employees who show up to work but due to illness or other
medical reasons, tend to underperform in their jobs. Some estimates place the cost of presenteeism to
U.S. companies at more than $150 billion annually. Employees go to work because they‟re motivated to
do so; the level of motivation remains high if an individual feels that attendance leads to more valued
rewards and fewer negative consequences than alternative behaviors.
Managers appear to have some influence over attendance behavior. They have the ability to punish,
establish bonus systems, and allow employee participation in developing plans. Whether these or other
approaches reduce absenteeism is determined by the value of the rewards perceived by employees, the
amount of the rewards, and whether employees perceive a relationship between attendance and rewards.
These same characteristics appear every time we analyze the effects of rewards on organizational
behavior.
Rewards and Job Performance
Researchers and managers agree that extrinsic and intrinsic rewards can be used to motivate job
performance. It‟s also clear that certain conditions must exist if rewards are to actually motivate: The
rewards must be valued by the person, and they must be related to a specific level of job performance.
In other words, an assembly-line worker may believe that by behaving in a certain way she‟ll get certain
things. This is a description of the performance–outcome expectancy. On one hand, another worker may
expect that a steady performance of 10 units a day will eventually result in a transfer to a more
challenging job. On the other hand, a worker may expect that a steady performance of 10 units a day will
result in his being considered a rate buster by co-workers. Each outcome has a valence, or value, to the
person. Because each person has different needs and perceptions, outcomes such as pay, a promotion, a
reprimand, or a better job have different values for different people. Thus, in considering which rewards

to use, a manager has to be astute in considering individual differences. If valued rewards are used to
motivate, they can result in the exertion of effort to achieve high levels of performance.
Rewards and Organizational Commitment
There‟s limited research on the relationship between rewards and organizational commitment.
Commitment to an organization involves three attitudes: (1) a sense of identification with the
organization‟s goals, (2) a feeling of involvement in organizational duties, and (3) a feeling of loyalty for
the organization. Research evidence indicates that the absence of commitment can reduce organizational
effectiveness. Committed people are less likely to quit and accept other jobs. Thus, costs of high
turnover aren‟t incurred. In addition, committed and highly skilled employees require less supervision.
Close supervision and a rigid monitoring control process are time-consuming and costly. Furthermore, a
committed employee perceives the value and importance of integrating individual and organizational
goals. The employee thinks of his goals and the organization‟s goals in personal terms.
Intrinsic rewards are important for developing organizational commitment. Organizations
able to meet employees‟ needs by providing challenging opportunities, giving feedback, encouraging
employee participation and by recognizing achievement when it occurs have a significant impact on
commitment. Thus, managers need to develop intrinsic reward systems that focus on personal
importance or self-esteem to integrate individual and organizational goals and to design challenging
jobs.
SELF CHEK QUESTIONS
1. Discuss behavior modification?

2. Explain behavioral Self-Management?
3. Identify organizational Reward Systems?

CTTI
Learning Guide #02
TTLM Code:
LO2: Developing team commitment and cooperation


 Classifications of plan
 Communication
 Describe Classifications of plan
 Explain Communication
7. ….

SESSION PLAN
LO2 Develop team commitment and cooperation
1. Describe Classifications of plan
2. Explain Communication
DURATION
Classifications of plan Lecture-
demonstration
Communication Lecture-
demonstration
activity
answer

Information Sheet—II Classifications of Plan

Classifications of Plan
Plans can be classified based on the following dimensions:
 Repetitiveness
 Time dimension and
 Scope
Classification of Plans Based on Repetitiveness
Based on repetitiveness, plans can be classified into two major divisions:
1. Standing Plans
Standing plans are those plans that can be used again and again. They are followed each time a given
situation is encountered. Standing plans include mission or purpose, goal or objective, strategy, policy,
procedure, method and rule.
a. Purposes or Missions: The mission or purpose identifies the basic function or task that is performed
by the enterprise. Every kind of organized operation should have a mission if it is to be meaningful for
its existence. For instance, the purpose of the court is interpretation of laws; the purpose of university is
teaching and research; the purpose of business generally is the production and distribution of goods and
services. People sometimes think the mission of a business as well as objective is to make a profit. But
the most basic function of businesses is to survive and to do the task society has entrusted to it.
b. Objectives or Goals: Objectives or goals are the ends toward which activity is aimed. They represent
not only the end point of planning, but also the endpoints of organizing, leading, staffing and controlling.
Departments may also have their own objectives as enterprises objectives are the basic plan of the firm.
The main difference between objective and mission is objective is related towards the ends of specific
activity while mission solely refers to the activity itself. The mission of a business firm may be to
produce products, but as an objective the business firm may have the objective of producing 10,000 units
of output in a year. The difference between objectives and goals is specified above
c. Strategies: Strategies are ways and means to achieve the established objectives. It is important to
notice that every objective must have at least one strategy. This means that management should at least
have one stated course of action to accomplish every objective. Hence objective mainly answers what
question where as strategy answers the how question.
d. Policies: Policy is a standing plan that establishes general guidelines for decision making. Policies
channel the thinking of organization members so that the members move consistently with and
contribute to an objective. A policy is a general statement designed to guide employees' actions in
recurring situations. It establishes broad limits, provides direction, but permits some initiative and
discretion on the part of the manager. Thus, policies are guidelines. A university for example may have

various extracurricular activity policies to support the objective of academic learning and performance.
There are many types of policies. Examples include policies of hiring university trained only,
encouraging employee suggestions, promoting from within, etc.
e. Procedures: Procedures show the sequence of activities. They are chronological sequences of
required actions. Procedure contains detailed guidelines for handling organizational actions that occur
regularly. A procedure is a sequence of steps or operations describing how to carry out an activity and
usually involves a group. It is more specific than a policy and establishes a customary way of handling a
recurring activity. Thus, less discretion on the part of the manager is permissible in its application. An
example of a procedure is the sequence of steps in routing of parts. Procedures are more numerous at the
lower levels because of the necessity for more careful control and help in the implementation of policies.
f. Methods: A method is a more detailed description than procedure. Whereas a procedure shows a
series of steps to be taken, a method is only concerned with single operation, with one particular step and
it tells exactly how this particular step is to be performed. A method sets up the manner and sequence of
accomplishing a recurring, individual task. Almost no discretion is allowed. An example of a method is
the steps in cashing a check. How user department prepare material requisition is also a good example of
method.
g. Rules: Rules are usually the simplest type of plan that spells out specific required actions or non-
actions to be taken in a given situation, allowing no discretion. A rule is an established guide for
conduct. Rules include definite things to do and not to do. There are no exceptions to the rules. An
example of a rule is "No Smoking." The situation in which a university student with a grade point
average below 2.0 cannot graduate is one example of a rule. People frequently confuse rules with
policies and procedures. Rules are unlike procedures that they guide action without specifying a time
sequence. The purpose of policies is to guide decision making in which managers can use their
discretion. Although rules also serve as guides, they allow no discretion in their application.
2. Single Use Plans

Single use plans are those plans that are not used once the objective is accomplished. They are used only
once and not over and over again. Single use plans include programs, projects and budgets.
a. Programs: Programs are comprehensive plan that include set of goals, policies, procedures, rules,
task assignments, steps to be taken, resources to be employed, and other elements necessary to carry out
a given course of action, ordinarily supported by budgets. Typical example of a program is the expansion
program of hospitals. It holds applicable till the expansion is over and expires after the job of expansion
is complete. Once this building program has been accomplished, whatever plans there were within this
program will not be used again, they have fulfilled their purpose.

b. Budgets: A budget is a statement of expected results expressed in numerical terms. It may be referred
to as a rubberized program. It is also often called profit plan. A budget may be expressed in financial
terms, in terms of labor hours, units of production, machine hours or in any other numerically
measurable term. A budget, more knowingly is a plan that shows how money will be spent over a
certain period of time. Other examples of planning by managers include scheduling the work of
employees and identifying needs for staff and resources to meet future changes. Resources include
employees, information, capital, facilities, machinery, equipment, supplies, and finances.
Budget is a fundamental planning instrument in many companies. It is necessary for control but it cannot
serve as a sensible standard of control unless it reflects plans. Budgets vary considerably in accuracy,
detail and purpose. There are three types of budgets.
 Variable or flexible budget: are budgets that vary according to the organizations level of output.
 Program budget: the organization and each department within the organization identify goals,
develops detailed program to meet the goals, and estimate the cost of each program. To prepare an
effective program budget, a manager must do some fairly detailed and thorough planning.
 Zero base budgets: is a budget for programs that start from a scratch or base of zero.
c. Project: A project is merely part of a general program that can be planned and fulfilled as a distinct
project itself. Projects help in the completion of programs. A project simplifies a program into various
parts so that the whole program can be completed in the time needed.
Classification of Plans Based on Time
We can classify plans into three based on time as:
a. Long-range Plans: Long-range planning has longer time horizon. It is not concerned with immediate
future, but with distant future. Long-range plans are mainly concerned with future direction of the
organization and may usually range form 5-10 years.
b. Short-range Plans: Short-range plans are complementary of long-range plans and are not prepared
separately. In other words, they constitute the steps toward the implementation of long-range plans. The
period covered by short-range plans is generally 1 year; some times it can go up to 2 years.
c. Intermediate range Plans: This level of planning obviously ranges between long and short range
planning.
Note that what plan is long range and short range cannot be generally defined. In most cases it depends
on the size of the organization and type of business of the organization. For example, for a wheat farm it
takes six months to harvest and this period can be considered as a short range. But for an orange farmer a
harvest may take 6-7 years and it can be taken as a short-range.
Classification of Plans Based on Scope or Breadth
Based on their scope or breadth, plans can be classified in to three categories.

a. Strategic Plans: In strategic planning, organization‟s missions, objective, major courses of action or
strategy is analyzed and decided. The result of strategic planning is strategic plans that are designed to
meet organization‟s broad objectives. It is usually done by the top level managers by taking into account
environmental threats and opportunities and internal weaknesses and strengths. Strategic plans are
mostly long-range in their time frame. Additionally, strategic plan provides general direction to the
organization and there by affects a wide range of organizational activities.
b. Tactical Plans: Tactical planning refers to the process of developing action plans through which
strategies are executed. Departmental managers are often involved in tactical planning. Typical examples
of tactical plan include annual budget for each department, specific means of implementing strategic
plans. Top level managers set very general, long-term goals that require more than one year to achieve.
These long term goals are the other expression for strategic plans. Examples of long-term goals include
long-term growth, improved customer service, and increased profitability. Middle managers interpret
these goals and develop tactical plans for their departments that can be accomplished within one year or
less. In order to develop tactical plans, middle management needs detail reports (financial, operational,
market, external environment). Tactical plans have shorter time frames and narrower scopes than
strategic plans. Tactical planning provides the specific ideas for implementing the strategic plan. It is the
process of making detailed decisions about what to do, who will do it, and how to do it.
c. Operational Plans: Operational planning is the most specific and is concerned with the day to day,
week to week activities of the organization. Operational plans are mainly of short-range and more
specific. They have a narrow and more limited scope. Operational plans support tactical plans. They are
the manager's tools for executing daily, weekly, and monthly activities. Examples are: production
schedules, sales plans, lesson plans. Policies, methods and rules are also part of operational plans.
Meaning and Definition of Communication
The word communication originates from the word „communis‟, which means 'common'. So
communication is an act by which a person shares the knowledge, feelings, ideas, information, etc., in
ways such that each gain a common understanding of the meaning, intend and use of message.
Leagans defines, "it is a process by which two or more people exchange ideas, facts, feelings, or
impressions in ways such that each gains a common understanding of the message. In essence it is the
act of getting a sender and a receiver turned together for a particular message or series of message".
Brooker defines it as "anything that conveys meaning that carries a message from one person to
another". So from the above definitions one can learn that –i) Communication is a process of social
interaction ie., in a communication situation two or more persons interact. ii) They try to influence the
ideas, attitudes, knowledge and behaviour of each other. iii) It is an exchange of information between
two or more persons. iv) Some kind of change occurs as a result of interaction or exchange of views. v)

This change may be seen in their knowledge and behaviour. vi) Communication can occur even without
words with the help of senses. vii) Communication is a two way process. viii) Communication may be
direct or indirect, verbal or non-verbal. ix) It can be informative, commanding or instructing, influential
or persuasive, compelling or convincing and entertaining.
Elements of Communication
Communication takes place when the sender selects a certain message and gives it a special treatment
after that sending it to the audience through proper channel. On the basis, the receiver takes necessary
action. The impact of the action will be evaluated and it should be communicated back to the sender as
feedback. The chart given below shows the various elements involved in a good communication system:
Sender Message Treatment Channel Receiver Evaluation Feedback
Elements of Communication
(1) The Sender: We may call him the communicator/speaker/source. It is the person or apparatus that
puts the process into operation. The sender may be the extension worker/ teacher in a meeting or in front
of a microphone/radio. He decides what message to send, how to treat it, so that his audience -farmers/
students/ housewives, youths -can follow it, and what channels radio/newspaper/lecture/film
show/slides, photographs/ specimens to use and which receivers or audience to reach.
(2) The message: This is the 'information package', the technical know-how for improving farming,
livestock, home, village sanitation, health etc., of the people. It may be a single-signal -as on poster or
complete information through a pamphlet about the 'package of practices', instructions, blue print etc.
(3) The treatment of the message: It refers to the ways in which the message is handled before it is
placed on the channel. Its purpose is to make the message clear, understandable and realistic to the
audience.
(4) The channel: It is the avenue of communication, i.e., in a telegram, the wire over which the message
is sent, in radio talk, it is the radio station, studio and wire ways, in an article, the newspaper in -which
our message is to appear.
(5) The receiver/audience: The receiver may be a single person when we write a letter; it may be a
group of people who read the message, or the masses who listen to the radio, and see television. The
more homogeneous the audience is, the greater are the chances of effective communication.
(6) Evaluation: It is actually measuring the effectiveness of the message i.e, to what extend the objective
has been achieved or is there problems, failures or lessons.

(7) Feedback: Sending back the impact of the massage to the sender. It will be useful for modifying the
communication in future. For effective communication, feedback is very important. It Concerns to and
fro communication. This return process is called feedback. An experienced communicator is attentive to
feedback and constantly modifies his message in the light of what he observes in, or hears, from his
audience.
Significance of Communication
A human being starts communicating as soon as he starts producing his first noise in the act of drawing
his parents‟ attention. Every emotion that we portray on our faces, the movement of our hands, the way
we look at someone and our speech instantly communicates our ideas to others. Communication is
highly necessary for our society, as it is only through exchange of ideas and co-operation that a society
can grow and develop. Effective communication is essential to learn, to teach, to make relationships and
to maintain them. In the modern world, the importance of communication has surpassed all previously
slated levels. Interestingly, the means of communication has outnumbered the means of food production
in the world today. The communicative technologies in the world have been increasing not only in
number, but also in speed, accuracy and clarity. Let us take a closer look and perform an in-depth
analysis of importance of communication in the modern world. Good communications are essential
within a business if it is to prosper.
For manager – employee relations:
Effective communication of information and decision are essential components for management-
employee relations. The manager cannot get the work done from employees unless they are
communicated effectively of what he wants to be done? He should also be sure of some basic facts such
as how to communicate and what results can be expected from that communication. Most of
management problems arise because of lack of effective communication. Chances of misunderstanding
and misrepresentation can be minimized with proper communication system.
For motivation and employee morale:
Communication is also a basic tool for motivation, which can improve morale of the employees in an
organization. Inappropriate or faulty communication among employees or between manager and his
subordinates is the major cause of conflict and low morale at work. Manager should clarify to employees
about what is to be done, how well they doing and what are can be done for better performance to
improve their motivation. He can prepare a written statement, clearly outlining the relationship between
company objectives and personal objectives and integrating the interest of the two.
For increased productivity:
With effective communication, you can maintain a good human relation in the organization and by
encouraging ideas or suggestions from employees or workers and implementing them whenever

possible, you can also increase production at low cost.

For employees:
It is through the communication that employees submit their work reports, comments, grievances and
suggestions to their seniors or management. Organization should have effective and speedy
communication policy and procedures to avoid delays, misunderstandings, confusion or distortions of
facts and to establish harmony among all the concerned people and departments
Types of Communication
Communication can be classified based of a number of dimensions such as direction of flow, media of
transmission, and channel used.
Based on direction of flow in the organization hierarchy, communication can be classified based into:
i. Downward communication
ii. Upward communication
iii. Horizontal communication
iv. Diagonal communication
Down ward communication: when vertical communication of flows from higher level to one or more
lower levels in the organizations. It is known as down ward communication. This supports information
often related to directing and controlling performance. Superiors also provide information about rules,
policies, benefits and other matters.
Upward communication: this supports communication of information for decision making.
Subordinates pass information about progress and problems to superiors so that superiors can decide
what to do.
Horizontal or lateral communication: is lateral or diagonal message exchange either with in the same
work unit or departments (lateral) or communication with persons of equal status working in other
departments of the organization.
Diagonal communication: refers to contacts with persons of higher or lower status in other departments
in the organization.
Based on how they are transmitted the media used communication can be classified as:
i. Written communication
ii. Oral communication
iii. Nonverbal communication
Written communication: it occurs through a variety of means such as business letters, report, memos,
instructions, rules and regulations, policy manuals, information bulletins etc and any printed material of
any sort.
Written communication ensures that everyone concerned has the same information and it provides a

permanent record for future references.

Adv: I t makes possible to get precisely the same information to many individuals and provides
references for further times.
It is the easy method of providing detailed information. .
It is reliable for transmitting lengthy statistical data.
Disadv: It does not provide opportunity for immediate response.
- It fails to convey personal feelings and hence does not create cooperative sprit.
-It leads to excessive formality and personal relations.
Oral communication: - it is the face to face communication between individuals. Speech has long been
a tool that managers have found essential in carrying out their work. It can be face-to-face meeting of
people, speech, interview, conferences, seminars and communication over telephone
Advantage: - it is possible to elaborate and to get feedback soon; it is direct, simple and time saving. It
conveys personal relationship, friendliness and develops a sense of belongingness.
Disadvantages
1. There is no formal record of the communication held.
2. There is a possibility of distortion of message if the oral message is passed on a long
hierarchical chain of command. It may carry less weight being informal. It can also be
misunderstood and more or less different meanings might be conveyed by the manner of
speaking.
Nonverbal communication
We communicate in many different ways what we say can be reinforced (or contradiction) by non-verbal
communication such as facial expression and body gestures. Its main purpose may be to support the
verbal one.
Based on the channels used communication can be classified as
i. Formal communication
ii. Informal communication (Grapevine)
Formal communication
Formal or official channel of communication is established by the management and formally shown in
the chart of organizations. Formal channels are the communication chains and networks that determine
the direction and flow of official message among the members of the organization. The directive
information flows down ward and information about performance passes from bottom to upward. For
e.g. when the general manager instructs his subordinates by virtue of his superior position, it is formal
communication.
Adv.: formal channels follow unity of command and therefore subordinates are bound to act within the

purview of the responsibilities.

Effective control can be exercised on subordinates.
Disadav. : It is a slow process and takes a lot of time to communicate in a formal way.
-It lacks personal contact relationship.
-There is a possibility of distortion of facts when the message passes through various levels.
Informal communication (Grapevine):- it is a communication that takes place without regard to
hierarchical or task requirement. Informal communication grows out of the social interactions among
people working together. The informal communication channel consisting of the informal
communication chains and networks within the work an environment is known as grapevine. It carries
information, which cannot be transmitted by formal means.
Informal communication can be thought of as relating to personal rather than positional issues. It does
not follow the formal channels established by the management. This type of communication arises on
account of natural desire of people to communicate each other and is the result of social interaction of
people. This informal communication can be considered as a beneficial safety value capable of carrying
important information quickly and accurately. It can also be considered as destructive, focusing on its
capacity to spread rumors, destroy morale, misinform and create interpersonal problems.
Barriers to effective communication
The communication must be interpreted and understood in the same manner as it was meant to be sent
by the sender; otherwise it will not achieve the desired results and communication breakdown will occur.
There are certain external roadblocks to effective communication like noise, poor timing, incomplete,
inadequate or unclear information, poor choice of channels of transmission of information etc. each can
affect the proper reception of the communication.
In addition, there are personal factors which may interprets the communication not in the same manners
as it was intended by the sender but in a way that the receiver wants to receive depending up on stimuli
present, emotions, or prejudices for or against the concept or ideology or personal conflicts so that
instead of interpreting the content of the communication, the intent of the sender may be interpreted.
Some of the barriers are
I. Perception: perception can be defined as a person view of reality. Since not two people could
have the same training and experiences in life, they do not see things exactly alike. The senders
meaning and the receiver‟s interpretations are not always identical.
II. Semantic barriers (language):- Semantic problems imply a problem in determining a common
referent and meaning for the symbols used in communication.
III. Value judgment (preconception):- Making value judgment of a message prior to receiving the
intended meaning of the message. A value judgment is the assignment of overall to a message

and may be based up on its origin, its reliability or its anticipated meaning. When value
judgments are made too hastily, the receiver hears only that part of the message that he wishes to
hear.
IV. Motivation and interest: It is difficult to get the message across to the person who is not
interested in it.
V. Perfunctory attention: - most of us do not generally listen what the other person is telling us.
VI. Source credibility: when we are given any information or message by another person, we tend to
evaluate his credibility. If we conclude that the communication unreliable and his message
cannot be trusted, we tend to reject his communication. Our trust in the communicator depends
on our past experience with him.
VII. Hidden agenda: People often do not say what they have in mind. They try to hide their
intentions behind words.
VIII. Omission: as information moves upward and downward through organizational level,
summarizers will omit information which they think is irrelevant.
IX. Hoarding: many people drive a sense of power and prestige by hoarding information. Some
managers have instinctive aversion to pass on information
Guidelines for effective communication
1. The ideas and messages should be clear, brief and precise.
2. Sense of timing:- the message should not only be timely so that the decisions and actions can be taken
in time and when necessary, but also the timing of the message and the environment setting in which
the message is delivered at the wrong time or in a non-conducive environment may lose its
effectiveness.
3. Integrity: the communication must pass through the proper channels to reach the intended receiver.
Avoid by passing levels or people.
4. Consult with others who are involved in planning the communication process. The purpose of
communication must be clearly known by all as to what is to be achieved and how.
5. Follow up and feedback: in this strategy the sender establishes a formal or informal mechanism for
achieving how the message transmitted is actually being understood.
Communication in Management
Organizations are totally reliant on communication, which is defined as the exchange of ideas,
messages, or information by speech, signals, or writing. Without communication, organizations would
not function. If communication is diminished or hampered, the entire organization suffers. When
communication is thorough, accurate, and timely, the organization tends to be vibrant and effective.
Communication is central to the entire management process:

 Communication is a linking process of management. Communication is the way managers

conduct the managerial functions of planning, organizing, staffing, directing, and controlling.
Communication is the heart of all organizations
 Communication is the primary means by which people obtain and exchange
information. Decisions are often dependent upon the quality and quantity of the information
received. If the information on which a decision is based is poor or incomplete, the decision will
often be incorrect.
 The most time-consuming activity a manager engages in is communication. Managers spend
between 70 to 90 percent of their time communicating with employees and other internal and
external customers.
 Information and communication represent power in organizations. An employee cannot do
anything constructive in a work unit unless he or she knows what is to be done, when the task is
to be accomplished, and who else is involved. The staff members who have this information
become centres of power.
 Communication is the lifeblood of an organization. If we could somehow remove
communication flows from an organization, we would not have an organization, organized
activity ceases to exist. Individual uncoordinated activity returns in an organization. Basically,
the two most important types of communication in an organization are formal and informal
communications.
The ability to communicate well, both orally and in writing is a critical managerial skill and a foundation
of effective leadership. Through communication, people exchange and share information with one
another and influence one another's attitudes, behaviours, and understandings. Communication allows
managers to establish and maintain interpersonal relationships, listen to others, and otherwise gain the
information needed to create an inspirational workplace. No manager can handle conflict, negotiate
successfully, and succeed at leadership without being a good communicator.
SELF CHEK QUESTIONS
1. Discuss Classifications of plan?

2. Explain Communication?

CTTI
Learning Guide #03
TTLM Code:
LO3: Managing team performance


 Monitor team performance
 Delegation and authority
 Mentor and coaching
 Describe team performance
 Explain Delegation and authority
 Understand Mentor and coaching
7. ….

SESSION PLAN
LO3 Manage team performance
4. Describe team performance

5. Explain Delegation and authority
6. Understand Mentor and coaching

DURATION
Monitor team performance Lecture-
demonstration
Delegation and authority Lecture-
demonstration
Mentor and coaching Lecture-
discussion and
demonstration
activity
answer

Information Sheet—III MANAGEME TEAM PERFORMANCE

Performance Evaluation
The value of the workforce depends on its members achieving adequate levels of competence. There is a
need, therefore, to undertake assessments of employee performance – on an individual or group level.
Such evaluation leads to a feedback on a range of matters.
Assessment of performance provides evidence on which to base judgements about the success of
recruitment and training provisions. It can also provide an important input into the salary system.
Assessment of the performance of staff should be a feature of supervisory responsibilities. Advising
employees is an important form of feedback since it offers encouragement. The manager or supervisor
also has to face the most demanding problem of dealing with an employee whose performance is not
satisfactory.
The various motivation theories go to great lengths to identify means by which employees can be
encouraged to use greater effort in carrying out their duties. It is important to remember that effort, in
itself, is not a guarantee that an employee will achieve adequate performance standards. The relationship
between effort and performance may not be a direct one; it is quite possible that an employee may use a
great deal of effort in carrying out his duties, but fail to achieve success. Other factors also affect the
relationship between effort and performance.
Ability
The employee may lack the ability to carry out his duties. It may be that he has been wrongly selected, or
perhaps inadequately trained to carry out his work.
Targets
In some cases where performance is inadequate, this is because the employee has not been made aware
of the standards which are expected of him.
Resources
In order to convert effort into performance, the employee has to have the resources necessary to
discharge his or her duties. These can be subdivided as follows:
Tools and Equipment
Many tasks cannot be discharged to a high enough standard because of the poor standard of equipment
rather than the lack of competence of the job-holder. For example, a computer programmer‟s ability to
produce working programmes may be impaired by any inadequacies of the hardware or software at his
or her disposal.
Information
Delays or inefficiencies are often a result of the inadequacies of the information supplied to job-holders.
Time

Most of us can recall occasions when we were not entirely satisfied with something we had produced,
but decided that it was not practical to achieve a higher standard in the limited time which we had
available. In allocating tasks to staff, or in analyzing any failures to achieve targets, a manager or
supervisor should always make adequate allowance for the time available to carry out the work.
Each of these factors can affect the relationship between effort and performance. They should be taken
into account in making judgments about the standards of performance achieved.
Performance Management
A clear definition of performance management is provided by Michael Armstrong:
“Performance management is a means of getting better results from the organization, teams and
individuals by understanding and managing performance within an agreed framework of planned goals,
objectives and standards”.
Performance management, then, is a systematic approach to the management of people ensuring that:
A shared vision of the organization and its objectives is communicated clearly by top management
Individual goals are agreed that take into account wider organizational goals
Regular feedback and reviews of progress are held
The review process identifies training, development and reward outcomes
The system is driven by line management
The effectiveness of the whole process is regularly evaluated
So, performance management relies on the establishment of clear, realistic performance goals between
the line manager and employees. The employee objectives may be expressed in terms of targets,
standards of performance or tasks to be completed.
Performance management systems tend to fall into two categories:
 Those that are reward driven, where the emphasis is on performance-related pay
 Those that are development driven, where the emphasis is on training and development as the
key outcome of the process
Performance appraisal is a key ingredient of both categories.
Performance Management and Performance Appraisal
For many years, the focus for performance evaluation was the system built around performance
appraisal. We shall consider the process of performance appraisal in detail in the next unit.
Increasingly, though, the establishment of more comprehensive systems of performance management is
taking root in organizations as a means of measuring individual effectiveness. Appraisal systems form a
part of this – often, still, a central part.
Delegation of Authority
It is impractical for the supervisor to handle all of the work of the department directly. In order to meet

the organization's goals, focus on objectives, and ensure that all work is accomplished, supervisors must
delegate authority. Authority is the legitimate power of a supervisor to direct subordinates to take action
within the scope of the supervisor's position. By extension, this power, or a part thereof, is delegated and
used in the name of a supervisor. Delegation is the downward transfer of formal authority from superior
to subordinate. The employee is empowered to act for the supervisor, while the supervisor remains
accountable for the outcome. Delegation of authority is a person-to-person relationship requiring trust,
commitment, and contracting between the supervisor and the employee.
The supervisor assists in developing employees in order to strengthen the organization. He or she gives
up the authority to make decisions that are best made by subordinates. This means that the supervisor
allows subordinates the freedom to make mistakes and learn from them. He or she does not supervise
subordinates' decision-making, but allows them the opportunity to develop their own skills. The
supervisor lets subordinates know that he or she is willing to help, but not willing to do their jobs for
them. The supervisor is not convinced that the best way for employees to learn is by telling them how to
solve a problem. This results in those subordinates becoming dependent on the supervisor. The
supervisor allows employees the opportunity to achieve and be credited for it.
An organization's most valuable resource is its people. By empowering employees who perform
delegated jobs with the authority to manage those jobs, supervisors free themselves to manage more
effectively. Successfully training future supervisors means delegating authority. This gives employees
the concrete skills, experience, and the resulting confidence to develop themselves for higher positions.
Delegation provides better managers and a higher degree of efficiency. Thus, collective effort, resulting
in the organization's growth, is dependent on delegation of authority
Delegation is the assignment of authority and responsibility to others in order to carry out certain
assignments. The chief executive cannot perform all the tasks of the organization himself, so he must
share his duties with his immediate subordinates. Who in turn delegate to their subordinates and this
process continues until all activities are assigned to persons who are made responsible for performing
them.
Delegation is the process of pushing down of authority from superior to subordinates who possess
specialized skill to perform such job. This is because the assignment of responsibility for some
department or job usually goes hand in hand with the delegation of adequate authority to get the work
done.
Delegation of authority is a pre requisite for the existence and efficiently functioning of the organization.
Delegation is a two-sided affair by which the superior must be willing to sacrifice a portion of his
authority and the subordinate must be willing to shoulder the additional responsibility.
Advantages of Delegation

When used properly, delegation has several important advantages. These are
1) It results in quick decisions
2) Delegation gives executives more time for strategic planning and policy making. Since the central
mgt. will not be involved in day-to-day decisions, it can concentrate its efforts on higher-level work
and problems.
3) Delegation is a Motivational Factor
Subordinates usually respond to delegated authority with favorable attitude. They become more
responsible and more dedicated to their work and they feel proud of being given the authority.
4) Delegation can be a training ground for executive ability.
Subordinates, when given the control over the problems they face, are able to analyze the situation and
make decisions accordingly. This continuous involvement prepares them for problem solving process
when they reach a higher executive level.
The Process of Delegation
The process of delegation consists of three steps.
1. Assignment of tasks to the Subordinates
In this step, specific tasks or duties that are to be undertaken are identified by the manager for
assignment to the subordinate. However, the distribution and allocation of duties among subordinates
must be fair and well balanced. The tasks should be distributed in such a manner that the subordinates
are not unnecessarily over burdened and that each one is capable of efficiently completing it.
2) Delegation of authority
In order for the subordinate to complete the duties or tasks, the authority necessary to do them should be
delegated by the manager to the subordinate. A guideline for authority is that it should be adequate to
complete the task- no more and no less.
3) Acceptance of responsibility
Responsibility is the obligation to carry out one‟s assigned duties to the best of one‟s ability.
Responsibility is not delegated by the manager, the employee accepts it. Then only, the employee can be
obligated.
4) Creation of Obligation or Accountability
Accountability is having to answer to someone for your actions. The person assigned the task is morally
responsible to do his best since he has willingly accepted these tasks. Obligation is a personal concern
for the task. Even if the subordinate gets part of the task done through other people, the obligation and
the accountability still lie with the subordinate.
Barriers to Delegation
A) Reluctance of Executive/Managers

1) An executive may believe that he can do his work better than his subordinates. He might believe
that his subordinates are not capable enough.
2) Lack of confidence and trust in subordinates.
3) Sense of Insecurity. Some managers fell very insecure in delegating authority, especially when
the subordinate is capable of doing the job better. i.e. -Loss of power and competition from the
subordinate
4) A manager may fear being known as 'Lazy' if he delegates most of his tasks
B) Reluctance of Subordinates
1) Fear of criticism and dismissal for making wrong decisions.
2) The subordinates may not be given sufficient incentives for assuming extra responsibility, which
could mean working harder under pressure.
3) Lack of self - confidence in doing the job
4) The subordinate may fear that the superior will not be available for guidance once the delegation
is made and this makes them feel uncomfortable with additional responsibility.
5) Some subordinates hesitate to accept new and added assignments when there is a lack of
necessary information and when the available resources are not adequate or in proper.
Guidelines for Effective Delegation
1) The management must be willing to give employees freedom to accomplish delegated tasks.
This means letting them use choose methods and solutions different from the ones the manager
choose. It also means giving them the freedom to make mistakes and to learn from their mistakes,
Mistakes are not obstacles to stop delegating, but rather an opportunity to offer training and
support.
2) Open Communication between managers and employees: Managers who know the
capabilities of their employees can more realistically decide which task can be delegated to
whom. The subordinate must know precisely what he has to know and do. It should be preferably
in writing with specific instructions so that the subordinated does not repeatedly refer problems
to the manager for opinion and decision.
3) Proper Selection and training: The management must make proper assessment of subordinates
in terms of their abilities and limitations before delegating the proper authority.
4) Motivate Subordinates: Adequate incentives in the form of promotion, status better working
conditions or additional browses must be provided for additional work well performed.
5) Establish adequate controls (feedback system)
If there are adequate check points and controls built in the system, like weekly report...etc., then
managers will not be continuously spending time in checking the performance and progress of

subordinates and their concerns about subordinates performing inadequately will be reduced.
Coaching
Coaching is a form of developing others, and managers have a vital role to play in the development of
their staff by operating as a coach. Many managers accept this as sound commonsense and have a
genuine desire to play their part; but, for a variety of reasons - including time and work pressures, the
disapproval of others or a lack of willingness to break new ground - the desire is not always converted
into reality. However, there are advantages to managers from persevering in order to master the
technique, because it encourages them to assess their own attitude and practices towards the
development of others.
The Coaching Process
The process of coaching can be considered under the following headings:
(a) Setting Tasks
Tasks should be set that have a specific learning target, which is capable of being monitored; for
example, dates for completion of identifiable parts of the task, the submission of reports etc. These
targets should be appropriate to the learner‟s ability, experience and development needs.
(b) Monitoring Progress
Regular meetings should be arranged in order to discuss what progress is being made towards achieving
the learning targets.
(c) Reviewing Performance
When tasks have been completed, a review should be carried out which addresses such questions as:
• What went well?
• What went wrong?
• How could we improve on this?
• What should we do differently another time?
By carrying out the coaching in this way, trainees should learn how to improve their own performance in
the future.
Skills Required
The skills which are required of a coach include:
• The ability to listen to, and take notice of, others.
• An awareness of the feelings and needs of others.
• The ability to set clear, attainable goals.
• The ability to help others to identify their own strengths and weaknesses.
• A willingness to be supportive at all times.
Pointers that help managers to measure the level of their coaching include:

• Recording the time they devote to developing their staff.

• Whether specific “coaching assignments” or learning opportunities for staff are planned in
advance.
• Whether staffs are allowed to learn by experiences available through normal (business) activities.
• How many coaching situations are created.
• How much of the manager‟s own work is done by others during their absence.
• The level of opportunity for staff to make suggestions for solving their own work problems.
Assisting others to manage their time more effectively is one way in which managers can create more
space for themselves, which they can then use to train and coach staff.
The Manager as a Coach
If we look at the relationship between sports teams or individuals and their coach, it becomes apparent
that a successful team is associated with an effective coach. If the relationship between the team and the
coach is poor then bad results follow. The same may be said of the relationship between a manager
acting in the role of coach and his work team.
SELF CHEK QUESTIONS
1. Define team performance?

2. Explain Delegation and authority?
3. Discuss Mentor and coaching?

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CTTI, TVET System Learning Guide

TVET-PROGRAMME TITLE: Hotel Level IV

Prepared by: - Ahder Tena, Gelan Dadi and Henok Mehari

Food and Beverage Service Supervision Level IV

Learning Guide #01

Unit of Competency: Lead and Manage People

Unit Title: Leading and Manage People

LG Code: CST FBS4 01 0912

LO1: Modeling high standards of performance and behavior

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Prepared by: - Ahder Tena, Gelan Dadi and Henok Mehari

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