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Structure
1.1 Introduction Objectives 1.2 1.3 1.4 1.5 ManagementFunctions SelfAssessmentQuestions1 Managementrolesandskills SelfAssessmentQuestions2 Effectivevs.SuccessfulManagerialActivities SelfAssessmentQuestions3 Summary TerminalQuestions AnswertoSAQsandTQs 1.1 Introduction

ManagementProcess

Organizationalbehavior(OB)isafieldofstudythatinvestigatestheimpactthatindividuals,groups, and structure have on behavior within an organization, then applies that knowledge to make organizations work more effectively (Robbins, 2003). In recent times, we notice the following changesintheorganizationalsetup:

1. Demiseoftraditionalhierarchicalstructure 2. Emergenceofworkforcewithdifferentexpectationsformorganizations 3. Advancementofinformationtechnology 4. Increasingimportanceonempowermentandteamwork 5. Concernforworklifebalance

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An affective and efficient manager therefore, should focus on two key results. The first is task performancethequalityandquantityoftheworkproducedortheservicesprovidedbytheworkunit asawhole.Thesecondisjobsatisfactionhowpeoplefeelabouttheirworkandtheworksetting. OB directs a managers attention to such matters as job satisfaction, job involvement, and organizationalcommitment,aswellasmeasuresofactualtaskperformance.OBalsorecognizesthe need for changing behavior, attitude and managerial styles in the context of the above. Hence, managementprocessesandfunctionsarevitaltoorganizationaleffectiveness.Anunderstandingof thebasismanagementfunctionshelpsincomprehendingthekeyrolesmanagersneedtoplaytorun organizationseffectively. Learningobjectives Thelearningobjectivesofthisunitareasfollows: 1. ManagementFunctions 2. Managementrolesandskills 1.2 ManagementFunctions Follett (1933) defined management as "the art of getting things done through people". [2] One can alsothinkofmanagementfunctionally,astheactionofmeasuringaquantityonaregularbasisand ofadjustingsomeinitialplan. Managementfunctionsareasfollows(Fayol,1949):

1. Planning 2. Organizing 3. Commanding 4. Coordinating 5. Controlling

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However,inrecenttime,managementfunctionshavebeenregroupedintofourcategories,sincethe managerialtaskshavebecomehighlychallengingafluidinnaturemakingdistinctionsredundanttoa certainextend.Thefourfunctionsareasfollows:

1. Planning 2. Organizing 3. Leading 4. Controlling

1.Planning It involves the process of defining goals, establishing strategies for achieving these goals, and developingplanstointegrateandcoordinateactivities.Everyorganizationneedstoplanforchange in order to reach its set goal. Effective planning enables an organization adapt to change by identifying opportunities and avoiding problems. It provides the direction for the other functions of managementandforeffectiveteamwork.Planningalsoenhancesthedecisionmakingprocess.All levelsofmanagementengageinplanningintheirownwayforachievingtheirpresetgoals. Planning in order to be useful must be linked to the strategic intent of an organization. Therefore, planningisoftenreferredtoasstrategicinnatureandalsotermedasstrategicplanning. StrategicPlanning:Toplevelmanagersengagechieflyinstrategicplanningorlongrangeplanning Strategic planning is the process of developing and analyzing the organization's mission, overall goals,generalstrategies,andallocatingresources. Thetasksofthestrategicplanningprocessincludethefollowingsteps: Definethemission: Amissionisthepurposeoftheorganization.Thus,planningbeginswithclearlydefiningthemission oftheorganization.Themissionstatementisbroad,deconcise,summarizingwhattheorganization does.Amissionstatementshouldbeshortandshouldbeeasilyunderstoodandeveryemployee should ideally be able to narrate it from memory. An explicit mission guides employees to work independentlyandyetcollectivelytowardtherealizationoftheorganization'spotential.Themission

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statement may be accompanied by an overarching statement of philosophy or strategic purpose designedtoconveyavisionforthefutureasenvisagedbytopmanagement. ConductasituationalorSWOTanalysis A situation or SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis is vital for the creationofanystrategicplan.TheSWOTanalysisbeginswithascanoftheexternalenvironment. Organizations need to examine their business situation in order to map out the opportunities and threats present in their environments. Sources of information may include stakeholders like, customers (internal and external), suppliers, governments (local, state, federal, international), professional or trade associations (conventions and exhibitions), journals and reports (scientific, professional,andtrade). SWOT analysis provides the assumptions and facts on which a plan will be based. Analyzing strengthsandweaknessescomprisestheinternalassessmentoftheorganization. Forassessingthestrengthsoftheorganizationthefollowingquestionsareimportant:

1. Whatmakestheorganizationdistinctive? 2. Howefficientisourmanufacturing? 3. Howskilledisourworkforce? 4. Whatisourmarketshare? 5. Whatfinancingisavailable? 6. Dowehaveasuperiorreputation?

Forassessingtheweaknessesoftheorganizationthefollowingquestionsareimportant:

1. Whatarethevulnerableareasoftheorganizationthatcouldbeexploited? 2. Arethefacilitiesoutdated? 3. Isresearchanddevelopmentadequate? 4. Arethetechnologiesobsolete?

Foridentifyingopportunitiesthefollowingelementsneedtobelookedat:

1. Inwhichareasisthecompetitionnotmeetingcustomerneeds? 2. Whatarethepossiblenewmarkets? 3. Whatisthestrengthoftheeconomy? 4. Areourrivalsweak?

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5. Whataretheemergingtechnologies? 6. Isthereapossibilityofgrowthofexistingmarket?)
Identifyingthreatsinvolvesthefollowing:

1. Inwhichareasdoesthecompetitionmeetcustomerneedsmoreeffectively? 2. Aretherenewcompetitors? 3. Isthereashortageofresources? 4. Aremarkettasteschanging? 5. Whatarethenewregulations? 6. Whatsubstituteproductsexist?

Ingeneralterms,thebeststrategyisonethatfitstheorganization'sstrengthstoopportunitiesinthe environment. The SWOT analysis is used as a baseline for future improvement, as well as gap analysis. Comparing the organization to external benchmarks (the best practices) is used to assess current capabilities. Benchmarking systematically compares performance measures such as efficiency, effectiveness, or outcomes of an organization against similar measures from other internal or externalorganizations. Setgoalsandobjectives Strategic goals and objectives are developed to fill the gap between current capability and the mission.Theyarealignedwiththemissionandformthebasisfortheactionplansofanorganization. Objectivesarealsocalledperformancegoals.Generally,organizationshavelongtermobjectivesfor factors such as, return on investment, earnings per share, etc. It also helps in setting minimum acceptablestandardsorcommonsenseminimums. Developrelatedstrategies(tacticalandoperational) Tacticalplansarebasedontheorganization'sstrategicplan.Inturn,operationalplansarebasedon theorganization'stacticalplans.Thesearespecificplansthatareneededforeachtaskorsupportive activitycomprisingthewhole.Strategic,tactical,andoperationalplanningmustbeaccompaniedby controlstoensureproperimplantationoftheplans,necessarytomaintaincompetitiveadvantagein thesaidmarket.
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Monitortheplan A systematic method of monitoring the environment must be adopted to continuously improve the strategicplanningprocess.Todevelopanenvironmentalmonitoringprocedure,shorttermstandards forkeyvariablesthatwilltendtovalidateandsupportthelongrangeestimatesmustbeestablished. Feedback is encouraged and incorporated to determine if goals and objectives are feasible. This reviewisusedforthenextplanningcycleandreview. 2.Organizing It involves designing, structuring, and coordinating the work components to achieve organizational goal. Itistheprocessofdeterminingwhattasksaretobedone,whoistodo,howthetasksareto be grouped, who reports to whom, and where decisions are to be made. A key issue in accomplishingthegoalsidentifiedintheplanningprocessisstructuringtheworkoftheorganization. Organizationsaregroupsofpeople,withideasandresources,workingtowardcommongoals.The purposeoftheorganizingfunctionistomakethebestuseoftheorganization'sresourcestoachieve organizationalgoals.Organizationalstructureistheformaldecisionmakingframeworkbywhichjob tasksaredivided,grouped,andcoordinated.Formalizationisanimportantaspectofstructure.Itis the extent to which the units of the organization are explicitly definedand its policies, procedures, and goals are clearly stated. It is the official organizational structure conceived and built by top management.Theformalorganizationcanbeseenandrepresentedinchartform.Anorganization chart displays theorganizational structure and shows job titles, lines of authority, and relationships betweendepartments. Thestepsintheorganizingprocessinclude:

1. Reviewplans 2. Listalltaskstobeaccomplished 3. Dividetasksintogroupsonepersoncanaccomplishajob 4. Grouprelatedjobstogetherinalogicalandefficientmanner 5. Assignworktoindividuals 6. Delegateauthoritytoestablishrelationshipsbetweenjobsandgroupsofjobs.

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3.Leading Anorganizationhasthegreatestchanceofbeingsuccessfulwhenalloftheemployeesworktoward achieving itsgoals.Since leadership involvesthe exercise of influence by oneperson over others, thequalityofleadershipexhibitedbysupervisorsisacriticaldeterminantoforganizationalsuccess. Supervisors can learn about leadership through research. Leadership studies can be classified as trait, behavioral, contingency, and transformational. Earliest theories assumed that the primary source of leadership effectiveness lay in the personal traits of the leaders themselves. Yet, traits alone cannot explain leadership effectiveness. Thus, later research focused on what the leader actuallydidwhendealingwithemployees.Thesebehavioraltheoriesofleadershipsoughttoexplain therelationshipbetweenwhattheleaderdidandhowtheemployeesreacted,bothemotionallyand behaviorally. Yet, behavior can't always account for leadership in different situations. Thus, contingency theoriesof leadership studied leadership style in different environments. Transactional leaders, such as those identified in contingency theories, clarify role and task requirements for employees. Yet, contingency can't account for the inspiration and innovation that leaders need to competeintoday'sglobalmarketplace.Newertransformationalleadershipstudieshaveshownthat leaders,whoarecharismaticandvisionary,caninspirefollowerstotranscendtheirownselfinterest forthegoodoftheorganization. Leadinginvolvesthefollowingfunctions: 1.Teambuilding Rigiddepartmentboundariesandfixedteamsaregivingwaytoadhocsquadswhosemembership changes with every project. Flexible networks of teambased structures are occurring within and betweencompanies,aswellasacrossnationalborders.Competitivearenasrequirequickdecisions byknowledgeableemployeeswhoworkclosetothesourceofproblems.Teamsenableknowledge basedandinnovativedecisionmaking.Thiscollaborationisarevolutionintheworkplace. 2.ConsensusBuilding Topperformancedemandsthejointeffortofmanypeople,workingtogethertowardacommongoal. Whenanindividualworkstogetherwithothers,effectivenessgrows,creatinggreaterproductivityfor

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allinvolved.Together,employeescandomorethanthecollectiveeffortsofeachindividualworking alone. 3.Selecting Selecting competent, highperforming employees capable of sustaining their performance over the long run is a competitive advantage. The selection process consists of forecasting employment needs,recruitingcandidates,interviewingapplicants,andhiringemployees. 4.Training After employees are selected, they enter an orientation program to be formally introduced to their jobs. Orientation sets a tone for new employees' work by describing jobrelated expectations and reporting relationships. Employees are informed about benefits, policies, and procedures. Specific duties and responsibilities and performance evaluation are clarified. During orientation, the supervisorhastheopportunitytoresolveanyunrealisticexpectationsheldbytheemployee.Training referstoimprovinganemployee'sknowledge,skills,andattitudessothatheorshecandothejob. Allnewemployees(orcurrentemployeesinnewjobs)shouldbetrained.Crosstrainingpreparesan employee for a job normally handled by someone else. Also, training is advisable when new processes,equipmentorproceduresareintroducedintotheworkplace. Training starts with an organization analysis. By focusing on strategy and examining sales forecasts and expected changes in production, distribution and support systems, employers can determinewhichskillswillbeneededandtowhatdegree.Acomparisonwithcurrentskilllevelsis usedtoestimatestaffandtrainingneeds.Taskanalysisidentifiestheelementsofcurrentorfuture taskstobedone.Personalneedsanalysisinvolvesaskingemployeesandmanagers,eitherinan interview or in a selfadministered questionnaire, to analyze their training needs. In general, agreement between managers and employees tends to be low, so it is important that both parties agreetodecisionsaboutthetrainingofemployees. 4.Controlling It involves monitoring the employees behavior and organizational processes and take necessary actionstoimprovethem,ifneeded.Controlistheprocessthroughwhichstandardsforperformance

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of people and processes are set, communicated, and applied. Effective control systems use mechanismstomonitoractivitiesandtakecorrectiveaction,ifnecessary. Therearefourstepsinthecontrolprocess.Theyareasfollows: Step1.EstablishPerformanceStandards.Standardsarecreatedwhenobjectivesaresetduringthe planning process. A standard is any guideline established as the basis for measurement. It is a precise, explicit statement of expected results from a product, service, machine, individual, or organizational unit. It is usually expressed numerically and is set for quality, quantity, and time. Toleranceispermissibledeviationfromthestandard. Step 2. Measure Actual Performance. Supervisors collect data to measure actual performance to determine variation from standard. Written data might include time cards, production tallies, inspectionreports,andsalestickets.Personalobservation,statisticalreports,oralreportsandwritten reports can be used to measure performance. Management by walking around, or observation of employees working, provides unfiltered information, extensive coverage, and the ability to read between the lines. While providing insight, this method might be misinterpreted by employees as mistrust. Oral reports allow for fast and extensive feedback. Computers give supervisors direct accesstorealtime,unaltereddata,andinformation.Onlinesystemsenablesupervisorstoidentify problemsastheyoccur.Databaseprogramsallowsupervisorstoquery,spendlesstimegathering facts,andbelessdependentonotherpeople. Step 3. Compare Measured Performance Against Established Standards. Comparing results with standards determines variation. Some variation can be expected in all activities and the range of variationtheacceptablevariancehastobeestablished.Managementbyexceptionletsoperations continueaslongastheyfallwithintheprescribedcontrollimits.Deviationsordifferencesthatexceed thisrangewouldalertthesupervisortoaproblem. Step4.TakeCorrectiveAction.Thesupervisormustfindthecauseofdeviationfromstandard.Then, he or she takes action to remove or minimize the cause. If the source of variation in work performanceisfromadeficitinactivity,thenasupervisorcantakeimmediatecorrectiveactionand getperformancebackontrack.

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TypesofControl Controlsaremosteffectivewhentheyareappliedatkeyplaces.Supervisorscanimplementcontrols before the process begins (feed forward), during the process (concurrent), or after it ceases (feedback). Feedforwardcontrolsfocusonoperationsbeforetheybegin.Theirgoalistopreventanticipated problems. An example of feed forward control is scheduled maintenance on automobiles and machinery. Concurrentcontrolsapplytoprocessesastheyarehappening.Concurrentcontrolsenactedwhile work is being performed include any type of steering or guiding mechanism such as direct supervision,automatedsystems(suchascomputersprogrammedtoinformtheuserwhentheyhave issuedthewrongcommand),andorganizationalqualityprograms. Feedback controls focus on the results of operations. They guide future planning, inputs, and processdesigns.Examplesoffeedbackcontrolsincludetimely(weekly,monthly,quarterly,annual) reportssothatalmostinstantaneousadjustmentscanbemade. Thefollowingdiagramrepresentsanintegratedmodelconnectingalltheabovementionedfunctions ofmanagement. Themanagementprocess(adoptedfromTerry,1972)

Resources HR, Financial, Informational etc.

Planning

Organizing

Directing

Controlling

Goal achievement s

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SelfAssessmentQuestions1

1. Inrecenttime,managementfunctionshavebeenregroupedinto____________categories. 2. Trainingstartswithan___________________analysis. 1.3 Managementrolesandskills

ManagerialRoles AccordingtoMintzberg(1973),managerialrolesareasfollows:

1. Informationalroles 2. Decisionalroles 3. Interpersonalroles

1.Informationalroles:Thisinvolvestheroleofassimilatinganddisseminatinginformationasand whenrequired. Followingarethemainsubroles,whichmanagersoftenperform: a. Monitorcollectinginformationfromorganizations,bothfrominsideandoutsideofthe organization b. Disseminatorcommunicatinginformationtoorganizationalmembers c. Spokespersonrepresentingtheorganizationtooutsiders 2.Decisionalroles:Itinvolvesdecisionmaking.Again,thisrolecanbesubdivided intothefollowing: a. Entrepreneurinitiatingnewideastoimproveorganizationalperformance b. Disturbancehandlerstakingcorrectiveactiontocopewithadversesituation c. Resourceallocatorsallocatinghuman,physical,andmonetaryresources d. Negotiatornegotiatingwithtradeunions,oranyotherstakeholders

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3.Interpersonalroles:Thisroleinvolvesactivitieswithpeopleworkingintheorganization.This issupportiveroleforinformationalanddecisionalroles.Interpersonalrolescanbecategorized underthreesubheadings: a. FigureheadCeremonialandsymbolicrole b. Leadershipleadingorganizationintermsofrecruiting,motivatingetc. c. Liaisonliasoningwithexternalbodiesandpublicrelationsactivities. ManagementSkills

Katz(1974)hasidentifiedthreeessentialmanagementskills:technical,human,andconceptual. Technical skills: The ability is to apply specialized knowledge or expertise. All jobs require some specializedexpertise,andmanypeopledeveloptheirtechnicalskillsonthejob.Vocationalandon thejobtrainingprogramscanbeusedtodevelopthistypeofskill. HumanSkill:Thisistheabilitytoworkwith,understandandmotivateotherpeople(bothindividually and a group). This requires sensitivity towards others issues and concerns. People, who are proficient in technical skill, but not with interpersonal skills, may face difficulty to manage their subordinates.ToacquiretheHumanSkill,itispertinenttorecognizethefeelingsandsentimentsof others,abilitytomotivateotherseveninadversesituation,andcommunicateownfeelingstoothers inapositiveandinspiringway. ConceptualSkill:Thisisanabilitytocriticallyanalyze,diagnoseasituationandforwardafeasible solution.Itrequirescreativethinking,generatingoptionsandchoosingthebestavailableoption. SelfAssessmentQuestions2 1. Ceremonialandsymbolicroleofamanageriscalled__________________. 2. Vocationalandonthejobtrainingprogramscanbeusedtodevelop_______________skill.

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1.4 Effectivevs.SuccessfulManagerialActivities

Luthans(1988),onthebasisofhisstudy,foundthatallmanagersengageinfourmanagerial activities.

1. Traditional management This activity consists of planning, decision making, and

controlling. The average manager spent 32 percent of his or her time performing this activity,whereassuccessfulmanagersspend13%andeffectivemanagersspend13%of theirtimeinthisactivity.

2. CommunicationThisactivityconsistsofexchangingroutineinformationandprocessing
paperwork. The average manager spent 29 percent of his or her time performing this activitywhilesuccessfulmanagerspends28%andeffectivemanagersspend44%oftheir timeinthisactivity.

3. Human resource managementThis activity consists of motivating, disciplining,

managingconflict,staffing,andtraining.Theaveragemanagerspent20percentofhisor her time performing this activity, while successful manager spends 11% and effective managersspend26%oftheirtimeinthisactivity.

4. NetworkingThisactivityinvolvessocializing,politicking,andinteractingwithoutsiders.
Theaverage manager spent 19percent of hisor hertimeperformingthisactivity, while successfulmanagerspends48%andsuccessfulmanagesspend11%oftheirtimeinthis activity. It was found that successful managers spent more time and effort in socializing, interacting and networking.Theydidnotspendmuchtimetothetraditionalmanagementactivitiesortothehuman resourcemanagementactivities(Luthans,1988).

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SelfAssessmentQuestions3

1. Theaveragemanagerspent__________percentofhisorhertimeperformingtraditional management. 2. Effective managers spend __________percent of their time in human resource management. 1.4 Summary Organizationalbehavior(OB)isafieldofstudythatinvestigatestheimpactthatindividuals,groups, and structure have on behavior within an organization, then applies that knowledge to make organizationsworkmoreeffectively(Robbins,2003).Anaffectiveandefficientmanagershouldfocus ontwokeyresults.Thefirstistaskperformancethequalityandquantityoftheworkproducedor theservicesprovidedbytheworkunitasawhole.Thesecondisjobsatisfactionhowpeoplefeel about their work and the work setting. management functions have been grouped into four categories:planning,organizing,leadingandcontrolling.Planninginvolvestheprocessofdefining goals, establishing strategies for achieving these goals, and developing plans to integrate and coordinate activities. Every organization needs to plan for change in order to reach its set goal. Effectiveplanningenablesanorganizationadapttochangebyidentifyingopportunitiesandavoiding problems.Itprovidesthedirectionfortheotherfunctionsofmanagementandforeffectiveteamwork. Planningalsoenhancesthedecisionmakingprocess.Alllevelsofmanagementengageinplanning in their own way for achieving their preset goals. Organizing involves designing, structuring, and coordinatingthe work components toachieve organizational goal. It is theprocess of determining whattasksaretobedone,whoistodo,howthetasksaretobegrouped,whoreportstowhom,and wheredecisionsare to be made. A key issue in accomplishing the goals identified in theplanning process is structuring the work ofthe organization. Organizationsaregroupsof people, with ideas andresources,workingtowardcommongoals.Thepurposeoftheorganizingfunctionistomakethe bestuseoftheorganization'sresourcestoachieveorganizationalgoals.Organizationalstructureis the formal decisionmaking framework by which job tasks are divided, grouped, and coordinated. Formalizationisanimportantaspectofstructure.Itistheextenttowhichtheunitsoftheorganization are explicitly defined and its policies, procedures, and goals are clearly stated. It is the official organizational structure conceived and built by top management. The formal organization can be

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seenandrepresentedinchartform.Anorganizationchartdisplaystheorganizationalstructureand showsjobtitles,linesofauthority,andrelationshipsbetweendepartments. Leadinginvolvesteambuilding,consensusbuilding,selectingandtraining.Anorganizationhasthe greatest chance of being successful when all of the employees work toward achieving its goals. Since leadership involves the exercise of influence by one person over others, the quality of leadership exhibitedby supervisors is a criticaldeterminant oforganizational success. Controlling involves monitoring the employees behavior and organizational processes and take necessary actionstoimprovethem,ifneeded.Controlistheprocessthroughwhichstandardsforperformance of people and processes are set, communicated, and applied. Effective control systems use mechanismstomonitoractivitiesandtakecorrectiveaction,ifnecessary. AccordingtoMintzberg( 1973), managerial roles are: Informational roles, Decisional roles and Interpersonal roles. Katz (1974)hasidentifiedthreeessentialmanagementskills:technical,human,andconceptual.Luthans (1988) found that all managers engage in four managerial activities: (i) Traditional management Thisactivityconsistsofplanning,decisionmaking,andcontrolling,(ii)CommunicationThisactivity consists of exchanging routine information and processing paperwork, (iii) Human resource managementthis activity consists of motivating, disciplining, managing conflict, staffing, and training, and (iv) Networkingthis activity involves socializing, politicking, and interacting with outsiders. Terminalquestions 1. Discussthefourmanagementfunctionsinbrief. 2. WhatdoyoumeanbySWOTanalysis? Whyisitrequiredbyamanager? 3. Discussthreeleadershipfunctionsofamanager. 4. BasedonKatzsproposition,brieflydiscustheessentialmanagerialskills. AnswertoSelfAssessmentQuestions SelfAssessmentQuestions1 1. Four 2. Organization

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SelfAssessmentQuestions2 1. Figurehead 2. Technical SelfAssessmentQuestions3 1. 32 2. 26 AnswertoTerminalQuestions 1. Refersection1.2 2. Refersection1.2 3. Refersection1.2 4. Refersection1.3

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