INTERNAL ASSIGNMENT

NAME:
ROLL NO:
DRIVE:
PROGRAM:
SEMESTER:
SUBJECT CODE & NAME:
BOOK ID:

Q.1: Explain the definition & importance of ‘management’.

a. Definition of Management

P a g e 1 | 10
b. Importance of Management.

Ans 1. According to Harold Koontz, “Management is an art of getting things done through and with
people in formally organised groups. It is an art of creating an environment in which people can
perform as individuals and can co-operate towards the attainment of group goals”. According to F.W.
Taylor, “Management is an art of knowing what to do, when to do, and see that it is done in the best
and cheapest way”.
We can derive the Importance of Management from the following reason: -
1. IT HELPS IN ACHIEVING GROUP GOALS
A hotel business named Green Path Hotels was on expansion and to create the capacity for
service, they had hired more people and were training them in one place so that when the new
hotels are opened, these trained men can go there and be productive from day one. This is about
achieving the goals set, i.e., smooth expansion.

2. OPTIMUM UTILISATION OF RESOURCES

Green Path hotel could have avoided hiring these people in advance and thus saved money but
then if they had hired them late, these resources would not have been ready to render the service
and would probably have earned a bad name in those initially. So there is a trade-off between
maintaining the brand name and the service quality and hiring in advance and bearing the cost.
The overstaffing was therefore deliberate, planned and not the result of a haphazard planning.
This is optimisation of resources.

3. REDUCES COSTS
It gets maximum results by using minimum input through proper planning. In this case Green
Path uses physical, human, and financial resources in such a manner that it creates great results
at low costs. Management is about cost reduction. We can see how the physical resources, such
as flute playing blind man, the foot massage, and the people are judiciously combined to create
happiness to the hotel guests (in hotel parlance we call the customers as guests). These reduced
the cost of building expensive rooms to create the ambience, hiring expensive hotel school
graduates to serve the guests, etc.

4. ESTABLISHES SOUND ORGANISATION

No overlapping of efforts (smooth and coordinated functions) is an important lesson. All the
service staff moved around with calmness and rendered the service smoothly which avoided
all duplication of effort and perhaps how they covered each other’s deficiency in service
through teamwork.

5. ESTABLISHES EQUILIBRIUM
It enables the organisation to survive in a changing environment. Green Path hotel was able to
see the new era coming with its focus on environment and social responsibility. It keeps in
touch with the changing environment. Green Path is an example of how it changes to the
demand of market/changing the needs of societies and becomes responsible for growth and
survival of organisation. Green Path is riding the new wave of sensitivity to environment, social

P a g e 2 | 10
 responsibility of caring for the blind beggar, etc. This is the new reality that Green Path has
been able to capture in its service.

6. ESSENTIALS FOR PROSPERITY OF SOCIETY

Efficient management leads to better economical production and also increases the economic,
social, and general welfare of the people. Good management makes a difficult task easier and
more importantly, avoids wastage of scarce resources. It improves the standard of living. Green
Path hotel uses the local men and woman and creates prosperity to the village folks.

Q.2: Explain the steps involved in Planning process. Discuss any 5 importance of Organizing
a. The steps involved in Planning process.
b. Importance of Organizing.

Ans 2. The below figure depicts the steps involved in Planning process

Qualifying Plans for Budgeting

Formulating Plans

Selecting a Course

Evaluating Alternate Courses

Determining Alternate Courses

Developing Premises

Establishing Objectives

Being Aware of Opportunities

Fig: Steps in Planning

The steps involved in process planning are given below: -
1. BEING AWARE OF OPPORTUNITIES
This means being aware of the customer needs, market, competition, our strengths, and
weaknesses. For example, Sambhavi being aware of the customer need to have the outlets in
other districts. This is usually done through market research, competitor analysis, and analysis
of own strengths and weaknesses through a formal process called SWOT analysis (Strength,
Weaknesses, Opportunity, and Threat).

2. ESTABLISHING OBJECTIVES

P a g e 3 | 10
 This implies establishing what we want to be and what we want to accomplish and when and
in relation to which market segment. At the highest level, this is done through vision and
mission building. This process takes place at business level, project level, etc.

3. DEVELOPING PREMISES
Deciding on the environment (both external and internal) in which our plans are going to
operate. Business has external environment created by political factors to include legislation,
legal framework, etc. For example, foreign companies cannot invest directly in multi-brand
retail in India. There can be economic reasons such as general slowdown in which case the
shoppers to the bakery may decrease, there can be factors such as nuclear family and eating out
habit which helps Sambhavi to have a greater market, etc. The external analysis is done through
a process called PEST analysis (Political, Economic, Social, and Technological). Some add
culture as an additional separate factor while others include it in Social. PEST is a framework
and helps you to think systematically through the factors that could affect. In relation to the
business mission, each of the factors may become a threat or opportunity (or of course may be
neither). Determining alternative courses – Identifying the most promising alternatives to
accomplish what we want to. This is done by combining the information about the
opportunities, threats, and own strength and weaknesses. This is done through another
framework called TOWS matrix which we will handle in some detail in a subsequent section
in this unit.

4. EVALUATING ALTERNATIVE COURSES

Comparing the alternatives to find out which of them will meet our goals and at optimal cost
and profit keeping sustainability into mind.

5. SELECTING A COURSE
Selecting the course that we want to follow.

6. FORMULATING PLANS
This implies making plans that support the course of action by buying equipment, space,
planning the type of HR, etc.

7. QUALIFYING PLANS BY BUDGETING

Identifying the cost involved, how the financial resources will be mobilised, what is capital
expenditure, what is operational expenditure, the working capital, etc.
The five importance of Organizing are as follows: -
1. CREATES ROLES – Organising enables a business to create roles or in other words, it links a
person to an activity with its own set of responsibility. Thus an activity and a person who must
perform the activity are linked.

2. FACILITATES SPECIALISATION – Through organising, all the roles can be categorised into
cohesive wholes based on similarity. Thus, the activities along with the roles can be divided
into units and departments. This division helps in bringing specialisation in various activities
of the business and thus enhances efficiency.

P a g e 4 | 10
 3. CLARIFIES AUTHORITY – Organisational structure helps in clarifying the role positions of
every manager by defining the powers of each role, the reporting structure, with whom a
manager should communicate and coordinate so that all the activities run smoothly such that
the productivity increases.

4. ENABLES CO-ORDINATION – By defining the above relationship, organising automatically

brings co-ordination in activities and ensures mutual co-operation among individuals (roles).
It prevents role conflicts and if it exists, it gives a method to redefine the roles and the
relationship to remove such conflicts.

5. FACILITATES EFFECTIVE ADMINISTRATION – Organising is helpful in defining the job

positions. Thus, it enables a concern to administer the entire system smoothly.

Q.3: Explain the following

a. Definition of Leading. b. Importance of Leading.
Ans 3. Leading can be defined as the process of setting direction, creating alignment, and creating
engagement to deliver high productivity and to facilitate change.
Leading or leadership function is said to be the heart of management process. Therefore, it is the central
point around which accomplishment of goals take place. A few philosophers call leading as “Life spark
of an enterprise”. It is also called as an actuating function of management because it is through
direction that the operation of an enterprise actually starts. Being the central character of an enterprise,
it provides many benefits to a concern which are as follows:
1.INITIATES ACTIONS – Leading is the function which starts the work performance of the followers
or subordinates. Mrs. Rakhi of Sambhavi initiated the actions by giving goals to the employees. She
could have given direction, rules, and regulations. The work would perhaps still have been done but
not with so much enthusiasm. Further, leading has a self-perpetuating component in that the led knows
where to do and therefore, even if they take different routes, ensure that the destination is reached more
efficiently and effectively. This happens because of the human characteristics discussed in earlier
section where we discussed the goal oriented behaviour under ‘human factor’. Through this function
subordinates understand their jobs and work according to the guidelines and agreed methods. Plans
can be implemented only when the actual work starts. Thus, leading initiates action.
2. SUSTAINS ACTION – Direction, much like leading initiates action but these directions have to be
repeated if the actions have to go on. Leading on the other hand ensures that the actions go on and
course corrections are done automatically by the followers because of their innate belief in the goal
being something desirable to follow. When they face obstacles, they would either fall back on the
leader if the obstacles are too huge to overcome. This is done when the leading process would ensure
that additional resources including pooled wisdom are pumped in to resolve it.
3. INTEGRATES EFFORTS – Through leading, the superiors are able to guide, inspire, and instruct
the subordinates to work. When every employee, team leader, and division leader knows that his/her
reaching the goal is dependent on other’s effort, there is a natural flow of inter team and
interdepartmental information. If you had been directing, this relation will not only be forced but also
monitored. Literature on directing will often speak of the need for effective communication and often
communication is considered as the key to directing. The role of communication is no different in

P a g e 5 | 10
leading but communication often is tacit much like the head of Sambhavi bakers helping with sales
and cleaning when she visits her outlets. Therefore, integration is much easier and far more effective
through leading.
4. MEANS OF MOTIVATION – Leading helps in achievement of goals. A manager makes use of the
element of motivation to improve the performances of subordinates. This can be done by providing
incentives or compensation, whether monetary or non-monetary, which serves as a “morale booster”
to the subordinates. Motivation is also helpful for the subordinates to give the best of their abilities,
which ultimately helps in growth. You saw how the employees of Sambhavi are praised and rewarded.
5. PROVIDES STABILITY – Stability and balance in a concern becomes very important for a long-
term survival in the market. This can be brought upon by the managers with the help of four tools or
elements of leading function - judicious blend of persuasive leadership, effective communication, clear
performance goals, and efficient motivation. Stability is very important since that is an index of growth
of an enterprise. Therefore, a manager can use of all the four traits in him/her so that the performance
standards can be maintained.
6. COPES WITH THE CHANGES – It is a human behaviour to show resistance to change.
Adaptability with changing environment helps in sustaining planned growth and becoming a market
leader. It is a directing function which is of use to meet the changes in the environment, both internal
and external. But when it comes to leading, there is a much natural flow to change as people
automatically embrace change and adapt to their journey towards the goal. It is the role of the manager
to communicate the nature and contents of changes required for reaching the goal very clearly to the
subordinates. This helps in clarifications, easy adaptations, and smooth running of an enterprise. For
example, Sambhavi shifted from a single outlet to multi-outlets, which means several changes at all
levels.
7.UTILISES RESOURCES EFFICIENTLY – Leading through goal setting helps in clarifying the role
of every subordinate towards his work. The resources can be utilised properly only when less of
wastages, duplication of efforts, overlapping of performances, etc. don’t take place. Through the goal
setting, the role of subordinates becomes clear as managers make use of their supervisory skills, the
guidance, the instructions and motivation skill to inspire the subordinates. This helps in maximum
possible utilisation of resources of men, machine, materials, and money, which helps in reducing costs
and increasing profits.

ASSIGNMENT SET – II

P a g e 6 | 10
Q.1: Define the term controlling? What are the prerequisites of effective control?
Ans 1. Controlling can be defined as measuring and correcting of performance to achieve the
organisational goals. According to Brech, “Controlling is a systematic exercise which is called as a
process of checking actual performance against the standards or plans with a view to ensure adequate
progress and also recording such experience as is gained as a contribution to possible future needs.”
All managers like to have controls because without them their plans would go awry. The pre-requisites
to have an effective control system are as follows:
• TAILORING CONTROLS TO PLANS AND POSITIONS – A control is exercised on an activity or
a group of activities. It follows that what control is good for a position may not be relevant for another
e.g., the Vice President of marketing and the Vice President of operations cannot have the same
controls though both maybe based on a financial control system. E.g., the outlet manager of Sambhavi
can have a control based on ROI, but the snack counter manager needs to have it based on per customer
revenue rather than ROI.
• TAILORING CONTROLS TO INDIVIDUAL MANAGER – Controls have to be adjusted to the
individual manager’s capability also. If someone does not understand a control, he/she will not trust it
or use it as a result of which it will become dysfunctional.
• DESIGNING ‘POINT TO THE EXCEPTIONS AT CRITICAL POINT’ – If a control has to be
effective, it must control the exception and that too at the critical point. For example, the critical point
in home delivery of a birthday cake is the time and accuracy of writing the name. The exception can
be wrong name due to spelling variations and the time of delivery due to wrong address. Therefore,
control should exist so that the delivery order phone number (we usually experience it when we order
a pizza) and the spelling of the name is rechecked. If the Assistant Manager can call the customer just
before the delivery and recheck the delivery address and the spelling of the name, an appropriate
control can be designed.
• OBJECTIVITY OF CONTROLS – Many management actions are subjective, but when controls are
created, they must be objective, accurate, and must suit a standard. While this may be relatively easy
in machine related systems and financial related indicator, we have to be careful when we have to
relate it to the intangible areas.
• FLEXIBILITY – Controls must be flexible to include the changed plans, unforeseen circumstances,
or outright failure. For example, Sambhavi may use budget control to say the inventory level but if the
sales are significantly higher or lower, there should be flexibility in the control. Suppose we define the
inventory per rupee of cost of production or per kilogram of production. It would be flexible to control
it using an annual budgetary control or average inventory based on earlier data.
• FITTING TO THE ORGANISATIONAL CULTURE – Imagine putting tight control over Sambhavi
whose culture is family-like and open with the freedom to experiment. The control will most certainly
affect the culture which to begin with is the competitive advantage of Sambhavi. Therefore, it must fit
the culture. If you have a tight and bureaucratic system, a lose control will also not work.
• ECONOMY OF CONTROLS – Controls must be worth their costs. Creating controls which are
excessively expensive is counter-productive. For example, we cannot have the same controls in an
aircraft and a car.

P a g e 7 | 10
• ABILITY TO LEAD TO CORRECTIVE ACTION – The control should lead to corrective action.
Only then it closes the loop and leads to better performance. For example, if the ROI of an outlet is
below the standards specified, there should be a review system, which detects the sections that have
not contributed their part and have exceeded it so that the performance can be corrected or rewarded.
Q.2: Explain the components and functions of attitude?
Ans 2. Attitudes are also known as "frames of reference." They provide the background against which
facts and events are viewed. It becomes necessary to know the attitudes of members of an organisation
because they have to perceive specific aspects like pay, hours of work, promotion, etc. of their work
life in the wider context of their generalised attitudes. Attitudes are also known as "frames of
reference."
There are three components of an attitude namely 1) Cognition, 2) Affect and 3) Behaviour.
• COGNITION- It is the mental process involved in gaining knowledge and comprehension, including
thinking, knowing, remembering, judging and problem solving. The cognition component of an
attitude reflects a person’s perceptions or beliefs. Cognitive elements are evaluative beliefs and are
measured by attitude scales or by asking about thoughts.
• AFFECT-This component refers to the person's feelings that result from his/her beliefs about a
person, object or situation. A person who believes that hard work earns promotions may feel angry or
frustrated when he/she works hard but is not promoted. The affective component becomes stronger as
an individual has more frequent and direct experience with a focal object, person or situation. 'Affect'
is the emotional component of an attitude. It refers to an individual's feeling about something or
someone.
• BEHAVIOUR- This component refers to the individual's behaviour that occurs as a result of his or
her feeling about the focal person, object or situation. An individual may complain, request a transfer,
or be less productive because he or she feels dissatisfied with work. The behavioural component of an
attitude refers to an intention to behave in a certain way toward someone or something.
FUNCTIONS OF ATTITUDE
According to Katz, attitudes serve four important functions from the viewpoint of organisational
behaviour. These are as follows:
• ADJUSTMENT FUNCTION - Attitudes often help people to adjust to their work environment. Well-
treated employees tend to develop a positive attitude towards their job, management and the
organisation in general, while berated and ill-treated organisational members develop a negative
attitude. In other words, attitudes help employees adjust to their environment and form a basis for
future behaviour.
• EGO-DEFENSIVE FUNCTION - Attitudes help people to retain their dignity and self-image. When
a young faculty member who is full of fresh ideas and enthusiasm, joins the organisation, the older
members might feel somewhat threatened by him/her. But they tend to disapprove his creative ideas
as ‘crazy’ and ‘impractical’ and dismiss him/her altogether.
• VALUE-EXPRESSIVE FUNCTION - Attitudes provide individuals with a basis for expressing their
values. For example, a manager who values hard and sincere work will be more vocal against an
employee who is having a very casual approach towards work.

P a g e 8 | 10
• KNOWLEDGE FUNCTION - Attitudes provide standards and frames of reference that allow people
to understand and perceive the world around them. If one has a strong negative attitude towards the
management, whatever the management does, even employee welfare programmes, can be perceived
as something ‘bad’ and as actually against them.
Q.3: Define leadership. Write a brief note on ‘Contingency Theories of Leadership’.
a. Definition of leadership
b. Contingency Theories of Leadership
Ans 3a. According to Warren Bennis definition of leadership is focused much more on the individual
capability of the leader: "Leadership is a function of knowing yourself, having a vision that is well
communicated, building trust among colleagues, and taking effective action to realise your own
leadership potential." Leadership is the art of motivating a group of people to act towards achieving a
common goal. This definition of leadership captures the leadership essentials of inspiration and
preparation.
Contingency theories suggest that there is no one best style of leadership and that an effective style
depends on how the leader adopts a style in relation to the group and the situation. A previously
successful style may not be effective in a new context. Effective leadership is about finding a good fit
between the behaviour, context, and need.
FIELDER’S CONTINGENCY MODEL (FCM) OF LEADERSHIP - This model dominates the
modern literature on contingency theories. FCM postulates that the leader’s effectiveness is based on
‘situational contingency’ which is a result of the interaction of two factors, i.e., leadership style and
situational favourable ness. Though over 400 studies have been conducted using this theory, it is not a
highly popular model. Fielder suggested that the leadership style of the leader can be measured by an
instrument called least preferred co-worker. The term and its use seem to have made Fielder unpopular.
He identified three situational components that determine the favourable ness of situation control. They
are:
• How defined and structured the work is?
• How much position power (authority) the leader has?
• The relationship between the leader and the followers.

Though there might be criticism that it is complex and the LPC measures are inaccurate and often
misses its predictive validity, etc., this model gives us a clear idea of the fit between the leader and the
situation and tends to substantiate that effectiveness is contingent upon the leader’s orientation and the
situation.
PATH GOAL THEORY- Path goal theory draws its inspiration from the expectancy model of
motivation. If there is a leader and a follower, the follower expects something and the leader is able to
fulfil it by defining it as a goal, means to achieve the goal, removing obstacles to achieving it, etc. The
expectation of the follower whether in terms of material or psychological benefit has to be met by the
leader and the follower expects it too. Here the leader must correctly identify the reward that is
expected and promise him or her that. Thus leadership effectiveness is contingent upon the promised
reward and the creation of a smooth way to achieve that reward. Path goal brings in a high degree of
individual need.

P a g e 9 | 10
SITUATIONAL LEADERSHIP - The work of Paul Hersey and Kenneth Blanchard (1969, 1993)
resulted in this highly popular model of situational leadership. They identified that the leaders have
four leadership styles. They are 1) telling (directing), 2) selling (consulting), 3) participating, and
4) delegating to the followers depending on (contingent upon) the maturity of the follower to do the
task. To the followers who lack the sense of responsibility or initiative, a telling style is adopted while
to those with a high degree of initiative and responsibility, a delegating style is adopted and the selling
and participating styles are done to those in between. This theory interestingly tends to merge the ideas
of style with the ideas of contingency or condition of the follower. Task and situation are inherent in
this since the term maturity relates to the ability to handle the task in a situation. The authors and
several researchers have developed a number of instruments to measure this, and this is a highly
popular theory. The theory assumes that the leader has the cognitive ability to identify the follower’s
maturity and the level of maturity required in relation to the task.
REDDIN’S 3D THEORY OF MANAGERIAL EFFECTIVENESS - This theory builds on the Hersey
Blanchard theory of situational leadership and Blake and Mouton theory of Managerial grid. He
identifies four effective styles that are matched to the situation using the situational sensitivity of the
leaders, i.e., the ability to evaluate the situation and style flexibility or the ability to change the style
according to the situation. Four styles he describes are as follows:
• BUREAUCRAT – Typically they should be delegating and allowing people to do their job. But if
they do it when there is an emergency such as a fire, shortage of material in the factory, a strike, etc it
becomes like leader and actually become deserters. Reddin cleverly links the style to the situation
when he identifies how bureaucratic style which could be very functional becomes a dysfunctional one
(deserter).
• DEVELOPER – Highly people oriented and participative in style which may be excellent in leading
a research team or when the job is unstructured. But when the followers are not so capable or the
situation demands structured steps as in the case when a product is launched or a project deadline is
missed, then it becomes ineffective (missionary).
• EXECUTIVE – Task and people oriented and is consulting and selling. At times, the followers may
not understand the importance of achieving targets or the situation may demand flawless execution
even at the cost of considerable discomfort to the people. If he or she still goes high on people
orientation, then it can become a compromise or akin to situation we discussed earlier.
• BENEVOLENT AUTOCRAT – Highly task oriented and uses a directive style. Useful with
followers of average calibre and abnormal situation. It becomes dysfunctional when used with high
calibre followers and in ordinary situations.
These frameworks clearly indicate how an effective style can become ineffective when the situation is
overlaid on it.

P a g e 10 | 10