Training Manual For Management in Haramaya University

Organization Management
(Self Teaching Material for Haramaya University Middle and Lower Level Management)
By
Admkew Haile
Assistant Professor, Department of Management
College of Business and Economics
Haramaya University
Haramaya University
Ethiopia
2020
Admkew Haile : Assistant Professor Department of Management; college of Business and Economics, Haramaya University
PREFACE
Modern organizations operate in a dynamic and complex working environment. The

challenges and opportunities posed by the changing needs and expectations of stakeholders
provide reason for understanding more about management ,leadership and followership.
The application of management tools is critical for performance management in hierarchical,
stable and routine organizations. Management tools coupled with leadership skills provide
the institutions with a framework that supports realization of organizational performance
targets, effective and efficient resource management, service delivery standards, team work
and personal development in a changing socio-economic, cultural and political
environment. Resources (people, material, equipment, time, and money) needed by the
institutions are scarce and where available they must be prudently, equitably and fairly
allocated amid varying needs and goals.
Institutions functionaries with the right skills and knowledge are able to maximise results
through the application of appropriate managerial tools and techniques. One way in which
the organizations have sought to cope with the increasing volatility and turbulence of the
external and internal environment is by training and developing leaders and equipping
them with the skills to cope dynamic and complex nature of the organizations. This training
manual aspires towards achieving effective and efficient human resources development
and management as well as organizational development to optimize organizational
performance towards the realization of its mission and vision.
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Contents page
1. Management ..............................................................................................................................1
1.1 . Introduction ....................................................................................................................... 1
1.2 .Management Theories ........................................................................................................ 2
I. Classical Approach ............................................................................................................. 2
II. Behaviour Approach ........................................................................................................... 3
III. Management Science Approach ......................................................................................... 3
IV. Integrating (Classical , Behaviour and Management Science) Approach .......................... 4
V. Contingency/situational Approach...................................................................................... 4
1.3 . Scope of Management....................................................................................................... 5
1.4 . Management Functions ..................................................................................................... 6
a. Planning .............................................................................................................................. 6
b. Organising ........................................................................................................................... 7
c. Staffing ................................................................................................................................ 8
d. Leading ............................................................................................................................... 8
e. Controlling .......................................................................................................................... 8
1.5 .Significance of Management ............................................................................................. 9
1.6 . Management Principles ................................................................................................... 10
1.7 . Types of Managers .......................................................................................................... 11
Levels of Management ................................................................................................................. 11
1.8 . Managerial Roles ............................................................................................................ 15
I. Interpersonal Roles ........................................................................................................... 15
II. Informational Roles .......................................................................................................... 15
III. Decisional Roles ............................................................................................................... 16
1.9 . Managerial Skills ............................................................................................................ 17
2. Managerial Decision-Making.................................................................................................19
2.1. Decision-Making Process ................................................................................................. 20
2.2. Decision-Making Conditions ............................................................................................ 24
i. Programmed Decisions ..................................................................................................... 25
ii. Non-programmed Decisions ............................................................................................. 25
2.4. Why Do Managers Make Poor Decisions? ....................................................................... 26
3. Communication in Organizations ...........................................................................................27
3.1. Communications and Managerial Functions ................................................................... 28
3.2. Types of communications ................................................................................................. 30
4. Organizational Leadership .....................................................................................................33
5. Followership ............................................................................................................................38
5.1. Types of followers ............................................................................................................ 39
5.2. Dynamic followers ............................................................................................................ 41
References .................................................................................................................................. 43
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1. Management
1.1 . Introduction
The term management can be and often is used in several different ways. Mary Parker Follett
(1868–1933), who wrote on the topic in the early 20th century, described management as the art of
getting things done through people. From Peter Drucker's viewpoint, managers give direction to
their organizations, provide leadership, and decide how to use organizational resources to
accomplish goals. As a discipline, management entails the organization and coordination of the
activities of an organizations in accordance with certain policies and in achievement of clearly
defined objectives. It is often included as a factor of production along with machines, materials,
and money.
As described by Richard L. Daft (1983) management is the attainment of organizational goals in

an effective and efficient manner through planning, organizing, leading, and controlling
organizational resources. This definition has the following are two important ideas, the functions
of management such as planning, organizing, leading, and controlling and the attainment of
organization goals in an effective and efficient manner. The size of management can range from
one person in a small organizations to hundreds or thousands of managers in multinational
organizations/companies.
The term management or the management as a collective word describing the managers of an
organization. These are President, Vice presidents/directors / deans/Team leaders/department
heads or coordinators have the power and responsibility to make decisions to manage the
organizations in the case of Haramaya University.
Generally Management is the process of coordinating all resources through the five major
functions of planning, organizing, staffing, directing /leading and controlling to achieve
organizational goals/desired objectives. It is the process of achieving organizational goals through
engaging in the five major functions of planning, organizing, staffing, directing/leading and
controlling
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1.2 .Management Theories

Awareness and understanding of important historical developments are also important to
contemporary managers/leaders. Management theories help managers by organizing information
and providing a systematic framework for action. Today's concept of management is the product of
a long and complicated evolutionary process. Essentially, four major forces that have affected the
evolution of management are economic, social, political-legal, and technological. However, there
is no one best approach to management which is optimum for all organizations. Organizational
culture and structure, education and experience of managers and employees and the environment
of the surrounding culture are all variables which affect the type of management seen in any
particular group or organizations or company.
Some of the management techniques which have been used in the past as well as techniques which
are currently in use. Well-established approaches to management thought; the classical approach,
the behavioural approach, the management approach ,the integrated approach and the contingency
approach. Each complements and supports each others.
I. Classical Approach
The classical approach on management emerged during the 19th and early 20th century‟s and to
some extent is accepted and practiced by many managers even today which is concerned on
managing work and organisations. This approach arose out of a need to improve productivity
through more efficient use of physical, financial and human resources. The technological insights
of engineers became increasingly significant as functions leaders sought to expand the productivity
of workers.
The efforts led to an extensive body of knowledge concerning job design, work methods and other
aspects of the management of work to increase their productivity .it is mainly concerned with
increasing the efficiency of workers and organization based on management practice ,which were
an outcome of care full observations
At the same time, many small, single-product/service providing organizations/ companies were
expanding into large, multi-product organisations. The individuals managing these organisations
recognised that the management of organisations was quite different from managing work. Thus
they began a study of the problems of managing large and complex organisations. Management
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was viewed as the process of coordinating group effort towards goals. It was during this period that
planning, organising and controlling were identified as the functions that make up the management
process.
II. Behaviour Approach

The focus of the behavioural approach emphasises the interrelationships among people, work and
organisations. It concentrates on Managing People such topics as motivation, communication,
leadership and work group formation, which can assist managers with the human relations aspects
of their job.
This approach was developed partly because practising managers found that the ideas of the
classical approach did not always achieve total efficiency and workplace harmony. This
heightened the interest in helping managers become effective at managing people. The behavioural
approach uses the concepts of psychology, sociology, anthropology and other behavioural sciences
to assist managers in understanding human behaviour in the work environment and it is known as
human resource focused approach.
III. Management Science Approach
Early 20th century industrialists took an engineering approach to management called scientific
management. It is the modern version of the early emphasis on the management of work by the
classical approach. This approach was developed by careful analysis of tasks and time-and-motion
studies in conjunction with piece-rate pay schemes in order to improve productivity.
Adherents of this approach searched for the one best way to perform a specific task and introduced
standard parts and procedures. Taken to the extreme, the scientific management approach seeks a
single best way to solve a given situation. The management science approach concerned on
managing product and operations.
One significant shortcoming of this approach is that much time and effort must be put toward
developing work standards and monitoring standards. Its‟ essential feature is the use of statistics as
aids in managing production and operations. It concentrates on concepts and tools useful to
managers in solving problems relating to what the organisation produces. The computer
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contributed greatly to the growth of the approach because of its ability to analyse complex
production and operational problems, and hence the development of the management information
systems and operations management.
IV. Integrating (Classical , Behaviour and Management Science) Approach
During the 20th century, there have been attempts to achieve integration of the three approaches to
management. One of these attempts, the systems approach, is based on the concept that an
organization is a system. A system is defined as a number of interdependent parts functioning as a
whole for some purpose. The manager must be concerned with the five components of the system
namely inputs, the transformation process, outputs, feedback, and the environment.
Systems theory offers the manager a useful perspective. The concept wholeness is very important
in general system analysis. L. Thomas Hopkins suggested the following six guidelines regarding
system wholeness that should be remembered during systems analysis:
 The whole should be the main focus of analysis, with the parts receiving secondary attention.
 Integration is the key variable in wholeness analysis.
 Possible modifications in each part should be weighted in relation to possible effects on
every other part.
 Each part has some role to perform so that the whole can accomplish its purpose.
 The nature of the parts and its function is determined by its position in the whole.
 All analysis starts with the existence of the whole.
V. Contingency/situational Approach
The contingency approach, stresses that many variations in organization structure were associated
with differences in manufacturing/operations techniques. Woodward pointed out that Different
technologies imposed different kinds of demands, and these demands had to meet through an
appropriate structure. successful organizations seemed to be those in which function and form
were complementary.
Several authors have further developed some ides of contingency thinking. One of these important
contributors is James D. Thompson, whose work in the area of technology's effect on organization
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is already a classic. Thompson argued that organizations that experience similar technological
problems will engage in similar behaviour.
The contingency view approaches management from a totally different perspective than do the
formal schools of management. The classical, behavioural, and management science schools
assumed a universal approach. They proposed the discovery of one-best-way management
principles that applied the same techniques to every organization. However, experienced managers
know that not all people and situations should be handled identically. Therefore, the contingency
approach holds that universal solutions and principles cannot be applied to organizations.
In simple terms, the contingency theory suggests that what managers do in practice depends on, or
is contingent upon, a given set of circumstances - a situation. The contingency perspective tells us
that the effectiveness of various managerial practices, styles, techniques, and functions will vary
according to the particular circumstances of the situation. Management's task is to search for
important contingencies. The main determinants of the contingency view relate to the external and
internal environments of the organization.
1.3 . Scope of Management

Regardless of title, position, or management level, all managers do the same job. They execute the
five managerial functions and work through and with others to set and achieve organizational
goals. Managers are the same whether the organization is private or public, profit making or non-
profit making, manufacturing or service giving, and industrial or small firms. Hence, management
is universal for the following reasons.
 All managers perform the five managerial functions even if with different emphasis.
 It is applicable for all human efforts; be it business, non-business, governmental, private.
 It is useful from individual to institutional efforts.
 Management utilizes scientifically derived operational principles.
 All managers operate in organizations with specific objectives.
 Management, in all organizations, helps to achieve organizational objectives.
In sum, management theories and principles have universal application in all kinds of organized
and purposeful activity and at all levels of management. Management is needed in all types of
organized activities. Moreover, management principles are applicable to all types of organizations,
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including profit-seeking organizations (industrial firms, banks, insurance companies, small

functions, etc.) and not-for-profit organizations (governmental organizations, health care
organizations, educations organizations, churches, etc.).
Any group of two or more people working to achieve a goal and having resources at its disposal is
engaged in management. Obviously, a manager's job is somewhat different in different types of
organizations, exists in unique environments, and uses different technology. However, all
organizations need the common basic activities: planning, organizing, leading, and controlling.
Management is also universal in that it uses a systematic body of knowledge including economics,
sociology, and laws. This knowledge can be applied to all organizations, whether functions, or
government, or religious, and applicable at all levels of management in the same organizations.
1.4 . Management Functions

The manager at the all level must actively perform basic managerial functions. One of the earliest
classifications of managerial functions was made by Fayol, who suggested that planning,
organizing, coordinating, commanding, and controlling were the primary functions. Some others
theorists identify additional management functions, such as staffing, communicated, or decision
making.
Generally, there is agreement that the basic managerial functions are; planning, organizing,
staffing, leading, and controlling. The additional functions (e.g., communication, decision making,
etc) will be discussed as subsets of the four primary functions.
a. Planning
Planning is considered to be the central function of management because it sets the pattern for the
other activities to follow. "Planning means defining goals for future organizational performance
and deciding on goals, objectives, the tasks and use of resources needed to attain them" (Richard
Daft). Planning encompasses four elements
 Evaluating environmental forces and organizational resources
 Establishing a set of organizational goals
 Developing strategies and plans to achieve the stated goals
 Formulating a decision-making process
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These elements are concerned with organizational success in the near future as well as success in
the more distant future. Planning to the future, the manager develops a strategy for getting there.
This process is referred to as strategic planning. The other examples of planning are functions
planning, project planning, personnel planning, advertising and promotion planning, etc.
Managers at every level of an organization are required to plan. The plans outline what the
organisation must do to be successful. While plans of each managerial level may differ in focus,
they harmonise to achieve both the short and long term organisational goals. The organizing,
leading and controlling functions all derive from planning in that, these functions carry out the
planning decision.
b. Organising
Organizing is the managerial function of making sure there are available resources to carry out a
plan. Organizing involves the assignment of tasks, the grouping of tasks into departments, and the
allocation of resources to departments. Managers must bring together individuals and tasks to
make effective use of people and resources.
Three elements are essential to organizing are Developing the structure of the organization,
Acquiring and training human resources and Establishing communication patterns and networks.
Determining the method of grouping these activities and resources is the organizing process.
It involves creating job positions with assigned duties and responsibilities, arranging positions into
hierarchy by establishing authority–reporting relationship, determining the number of subordinates
each manger should supervise, determining the number of hierarchical levels etc and thereby
create an organization. organizing involves creating job positions with assigned duties and
responsibilities.
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c. Staffing
Staffing involves filling and keeping filled the positions in the organization structure. It is
concerned with locating prospective employees to fill the jobs created by the organizing process. It
basically deals with inventorying the people available, announcing vacancies, accepting,
identifying the potential candidates for the job, recruiting, selecting, placing, orienting, training
and promoting both candidates and existing employees. Staffing is concerned with human resource
of the organization.
d. Leading
Leading is the most complex managerial function because it deals with complex human behavior;
and because most problems in organizations arise from people, their desire and behavior. It
includes communicating with others, helping to outline a vision of what can be accomplished,
providing direction, and motivating organization members to put forth the substantial effort
required.
Leading or directing is basic function within the management process. Leading is the use of
influence to motivate employees to achieve organizational goals. The Leading function focuses
directly on employees. Managers must be able to make employees want to participate in achieving
the organization's goals. The leading process helps the organization move toward goal attainment.
Three components make up the leading function are Motivating employees, Influencing employees
and Forming effective groups/teams.
e. Controlling
Controlling is monitoring employee‟s, activities, determining whether the organization is on target
toward its goals, and making correction as necessary. Controlling ensures that, through effective
leading, what has been planned and organized to take place has in fact taken place.
Three basic components constitute the control functions are Elements of a control system,
Evaluating and rewarding employee performance and Controlling financial, informational, and
physical resources. Controlling is ongoing process. An effective control function determines
whether the organization is on target toward its goals and makes corrections as necessary.
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Thus the purpose of management control is to ensure the organisation stays on its quality path.
Controlling or coordinating includes continuous collection of feedback, monitoring and adjustment
of systems, processes and structures accordingly. Examples include use of financial controls,
policies and procedures, performance management processes, measures to avoid risks, etc. It is
worth pointing out that these managerial functions are related and interrelated to each other.
1.5 .Significance of Management

Management is needed to coordinate and direct the efforts of individuals, groups and the entire
organization to achieve desired objectives and organizational success. Management is responsible
for the success through its effective management system or failure of an organization because of its
weak or poor management system. That is, when an organization fails it is because of poor
management and managers, and when an organization succeeds it is because of good management
and managers. It affects the accomplishment of social, economic, political and organizational
goals. Management is the force that determines whether business organizations and social
institutions will serve us or waste our talents and resources.
Ever since people began forming groups to accomplish aims they could not achieve as individuals,
managing has been essential to ensure the coordination of individual efforts for common goal
achievements. People currently not trained by management get themselves in managerial positions
and earn their livelihood, and the most common path to become successful manager involves a
combination of education and experience.
Management is needed to coordinate and direct the efforts of individuals, groups and the entire
organization to achieve desired objectives. Whenever and wherever there is a group work having
stated objectives, management is needed to direct and coordinate their efforts. Without
management effort will be wasted.
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1.6 . Management Principles

The district level manager must be conversant with the basic management principles. Henri Fayol
proposed fourteen (14) principles of Management as follows:
1. Division of work: This principle is the same as Adam Smith's 'division of labour'.
Specialisation increases output by making employees more efficient.
2. Authority: Managers must be able to give orders. Authority gives them this right. Note that
responsibility arises wherever authority is exercised.
3. Discipline: Employees must obey and respect the rules that govern the organisation. Good
discipline is the result of effective leadership, a clear understanding between management and
workers regarding the organisation's rules, and the judicious use of penalties for infractions of
the rules.
4. Unity of command: Every employee should receive orders from only one superior.
5. Unity of direction: Each group of organisational activities that have the same objective should
be directed by one manager using one plan.
6. Subordination of individual interests to the general interest: The interests of any one employee
or group of employees should not take precedence over the interests of the organisation as a
whole.
7. Remuneration: Workers must be paid a fair wage for their services.
8. Centralisation: Centralisation refers to the degree to which subordinates are involved in
decision making. Whether decision making is centralised (to management) or decentralised (to
subordinates) is a question of proper proportion. The task is to find the optimum degree of
centralisation for each situation.
9. Scalar chain: The line of authority from top management to the lowest ranks represents the
scalar chain. Communications should follow this chain. However, if following the chain
creates delays, cross-communications can be allowed if agreed to by all parties and superiors
are kept informed.
10. Order: People and materials should be in the right place at the right time.
11. Equity: Managers should be kind and fair to their subordinates.
12. Stability of tenure of personnel: High employee turnover is inefficient. Management should
provide orderly personnel planning and ensure that replacements are available to fill vacancies.
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13. Initiative: Employees who are allowed to originate and carry out plans will exert high levels of
effort.
14. Esprit de corps: Promoting team spirit will build harmony and unity within the organisation.
1.7 . Types of Managers

The managerial functions must be performed by anyone who manages any type of organized
activity. With the basic understanding of management, defining the term manager becomes relative
simple. The manger is someone whose primary activities are a part of the management process.
In particular, a manager is someone who plans, organizes, leads, and controls human, financial,
physical, and information resources of an organisation." To this end, the success or failure of an
organization depends heavily on the ability of its managers to perform these tasks effectively.
Managers can be classified in two ways.
1. First, by their level within the organization and
2. Second, by the scope of their responsibilities.
Levels of Management
Most people think of three basic levels of management: top, middle, and first-line managers.
Haramaya University such titles as board, president, vice- presidents, Directors ,deans, associate
dean, program coordinator, associate directors Heads Department ,team leaders, coordinators and
supervisors.
A. Top-level management
Top level management is responsible for the overall direction and operations of an organization.
Particularly, they are responsible for setting organizational goals, defining strategies for achieving
them, monitoring and implementing the external environment, decisions that affect entire
organization.
Managers in these positions are responsible for interacting with representatives of the external
environment (e.g. important customers/ clients, financial institutions, and governmental figures)
and establishing objectives, policies, and strategies. In Haramaya University top-level managers
are managers who are at the top of the organizational hierarchy and are responsible for the entire
organization. They are usually few in number and include the organization‟s most important
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managers - the board or the president and her immediate subordinates usually called Vice-
presidents and equivalents. But the actual title may vary from organization to organization.
They are few in number because of the nature of the work they perform and economic problem.
They deal with the big picture, not with the nitty-gritty. They are responsible for the overall
management of the organization. They establish companywide objectives or goals and
organizational policies. Furthermore, top management:
 Develop overall structure of the organization.
 Direct the organization in accordance with the environment.
 Develop policy in areas of Equal Employment Opportunity and employee development.
 Represent the organization in community affairs, business deals, and government
negotiations.
 Spent much of their time in planning and dealing with middle level managers and other
subordinates.
 Work long hours and spend much of their time in meetings and on telephone.
 Are persons who are responsible for making decisions and formulating policies that affect all
aspects of the firm‟s operations.
 Provide overall leadership of the organization towards accomplishment of its objectives.
 They are responsible for the organization because objectives are established and policies are
formulated at the top.
 Top-level managers take the credit or blame for organizational success and failures
respectively.
B. Middle-level management
Middle level management is responsible for functions units and major departments. In the
Haramaya University, include the deans and directors are who have responsibilities for specific
directorates/colleges. The responsibilities of middle managers include translating executive orders
into operation, implementing plans, and directly supervising lower-level managers.
Middle-level management typically have two or more management levels beneath them. They
receive overall strategies and policies from top managers and then translate them into specific
objective and programs for first-line managers.
Middle level managers occupy a position in an organization that is above first-line management
and below top management. They interpret and implement top management directives and forward
messages to and from first-line management.
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 Regardless of their title, they are subordinates are managers.

 Often coordinate and supervise the activities of lower level managers.
 Receive broad/overall strategies from top managers and translate it into specific objectives
and plans for First-Line Mangers/operating managers.
 Are responsible for the proper implementation of policies and strategies defined by top
level managers. They interpret and implement top management directives and forward
messages to and from first-line management.
 Their principal responsibility is to direct the activity that implement the policies of the
organization. E.g. Directors ,Academic deans, Associate dean ,Associate Directors and
equivalents
The strength of management capability at the mid-level is a primary determinant of an

organization‟s ability to execute its organizational strategy. If organizations want to be successful,
they must take stock of the current readiness of their mid-level leaders, and develop them to meet
business needs sooner. That begins with benchmarking against those organizations that are doing
it right and achieving the right results.
C. First-line management
First line/level management is directly responsible for the production of goods and delivery of
services. Particularly, they are responsible for directing non-supervisory staff. First-line managers
are variously called office manager Team leaders ,department Heads, section chief, line manager,
and supervisor.
In the Haramaya University such personnel include the heads of department, team leader and
coordinators/supervisors. Are those at the operating level or at the last level of management;
 Their subordinates are non managers.
 They are responsible for overseeing and coordinating the work of operating employees.
 Assign operating employees to specific tasks.
 Are managers on which management depends for the execution of its plan since their job
is to deal with employees who actually produce the organization‟s goods and services to
fulfill the plan.
 Are directly responsible for the production of goods and services.
 Motivate subordinates to change or improve their performance.
 Serve as a bridge between managers and non-managers.
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
Spent much of their time in leading and little in planning.

Are in charge of carrying out the day to day activities within the various departments to
ensure that short term goals are met. E.g. Department Heads, Team leaders ,supervisory
personnel, and equivalents.
All managers carry out managerial functions. However, the time spent for each function varies
according to their managerial hierarchy. Top-level managers spend more time on planning and
organizing than lower-level managers. Leading, on the other hand, takes a great deal of time for
first-line managers. The difference in time spent on staffing and controlling varies only slightly for
managers at various levels.
Controlling
Planning
Organizing
Top
Staffing
Directing
Middle
First-line
Organizational Hierarchy Time spent on carrying out managerial functions
Fig. 1.1. The relative importance of the managerial functions at different levels
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1.8 . Managerial Roles

Managers perform 10 different but closely related roles. These roles can be grouped into three
broad areas namely: Interpersonal Roles, Informational Roles And Decisional Roles.
I. Interpersonal Roles
These roles focus on basic interpersonal relationships. The three roles that form this category are
figure-head role, leadership role and liaison role which result from formal authority. Practising the
above roles, the manager is able to move into the informational roles that in turn lead to the
decisional roles.
 Figurehead Role: All management jobs require some duties that are symbolic or ceremonial in
nature for the unit they manage.
 Leadership Role: This involves directing and coordinating the activities of subordinates. It
may involve staffing (hiring, training, promoting, dismissing), influencing and motivating
subordinates. Leadership also involves controlling i.e. making sure activities are carried out as
planned.
 Liaison Role: Managers get involved in interpersonal relationships with other managers and
individuals outside their areas of command. This may involve contacts both within and outside
the organization. Managers must maintain good relations with others clients as well as other
service providers.
II.Informational Roles
This set of roles establishes the manager as the central focus of receiving and sending non routine
information. The functions involved in this category include;
 Monitoring Role: Involves examining the environment to gather information about changes,
opportunities and problems that may affect the unit. The formal and informal contacts
developed in the liaison role are often useful here.
 Dissemination Role: Involves providing important or privileged information to subordinates
that they might not ordinarily know about or be able to obtain.
 Spokesperson Role: The manager represents the department. This representation may be
internal, as when a manager makes a case for salary increase for members of the department to
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top management. The representation may also be external as when an executive speaks for the
organization on a particular issue of interest.
III.Decisional Roles
Interpersonal relationship and informational activities serve as basic inputs to the process of
decision making. Some schools of thought have it that these decisional roles- entrepreneur,
disturbance handler, resource allocation and negotiator- are a manager‟s most important function.
 Entrepreneur Role: This is to bring changes for improvement in the unit. The effective line
supervisor looks continually for new ideas or methods to improve the unit‟s performance.
 Disturbance Handler Role: Managers make decisions or take corrective action in response to
pressure that is beyond their control. Decision must be swift and prompt in case of
disturbances.
 Resource Allocation Role: Places a manager in the position of deciding who gets which
resources including money, people, time and equipment. There are never enough resources to
go round; the manager must allocate the scarce resources towards numerous possible ends.
Resource allocation is one of the most critical of the manager‟s decisional roles.
 Negotiator Role: Managers must bargain with other departments and individuals to obtain
advantages for their units. The negotiation may be on grounds of overwork, performance,
resources or anything influencing the department.
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1.9 . Managerial Skills

A. Technical Skills
Technical skills involve process or technique, knowledge and proficiency. It is the ability to use
the tools, procedures, or techniques of a specialized field. It includes mastery of the methods,
techniques, and equipment involved in specific functions, such as engineering, manufacturing, or
finance. Technical skill also includes specialized knowledge, analytical ability, and the competent
use of tools and techniques to solve problems in that specific discipline.
Technical skills is specialized knowledge and ability that can be applied to specific tasks. Is a skill
that reflects both an understanding of and a proficiency in a specialized field.
Technical skills are most important at the lower levels of management. It becomes less important
as we move up the chain of command because when they supervise the others (workers), they have
to show how to do the work. E.g. A surgeon, an engineer, a musician, a quality controller or an
accountant all have technical skill in their respective areas.
B. Human Relations or Interpersonal Skill
The ability to interact effectively with people. It is the ability to work with, understand and
motivate other people, either as individuals or as groups. Managers need enough of human
relationships skill to be able to participate effectively and lead groups.
These skills are demonstrated in the way a manager relates to other people, including the way she
motivates, facilitates, coordinates, leads, communicates, and resolves conflicts. A manager with
human skills allows subordinates to express themselves without fear of ridicule and encourages
participation. A manager with human skills likes other people and is liked by them. This skill is a
reflection of the manager‟s leadership ability.
Managers who lack human skills often are abrupt, critical, and unsympathetic toward others. The
results are often abrupt, critical, and unsympathetic response from workers to management.
Because all work is done when people work together, human relation skills are equally important
at all levels of management.
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C. Conceptual skills
Conceptual skills involve the formulation of ideas. It refers to the ability to see the big picture to
view the organization from a broad perspective and to see the interrelations among its components.
It includes recognizing how the various jobs in an organization depend on one another and how a
change in any one part affects all the others. It also involves the manager‟s ability to understand
how a change in any given part can affect the whole organization, ability to understand abstract
relationships, solve problems creatively, and develop ideas.
Conceptual skills are more important in strategic (long range) planning; therefore, they are more
important to top-executives than middle managers and supervisors. Although all three of these
skills are essential to effective management, their relative importance to specific manager depends
on her rank in the organization.
Technical skill is of greatest importance at supervisory level; it becomes less important as we

move up the chain of command. Even though human skill is equally important at every level of the
organization, it is probably most important at the lower level, where the greatest number of
management–subordinate interactions is likely to take place.
On the other hand, the importance of conceptual skill increases as we rise in the rank of
management. The higher the manager is in the hierarchy, the more she will be involved in the
broad, long term decisions that affect large parts of the organization. For top management, which
is responsible for the entire organization, conceptual skill is probably the most important skill of
all. Technical skill deals with things, human skill concerns people and conceptual skill has to do
with ideas.
Technical Skills
Top
Conceptual
Human Skills
Skills
Middle
First-line
Managerial Levels Managerial Skills

Fig. 1.2.Variation of Managerial skills necessary at different management levels
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2. Managerial Decision-Making
Decision-making is a rational choice or selection of one alternative from among a set of

alternatives; i.e. it is the act of choosing one alternative from among a set of alternatives. Decision-
making is the management function that consists of choosing one course of action from all the
available alternatives.
Decision-making is part of every aspect of the manager‟s duties, which include planning,
organizing, staffing, leading and controlling, i.e. decision-making is universal. In all managerial
functions decision-making is involved. All managerial functions have to be decided. For example,
managers can formulate planning objectives only after making decisions about the organization‟s
basic mission.
Even though in all managerial functions decision-making is involved, the critical decision-making
is during planning because planning identifies the objectives of the organization; i.e. decision must
be made to identify the objectives/missions of an organization. In the planning process, managers
decide such matters as what goals or opportunities their organization will pursue, what resources
will be used, who will perform each required task etc. The entire planning process involves
managers in a continual series of decision-making situations.
Decision-making has three elements (parts)
 When managers make decisions they are choosing or selecting from among alternatives.
 When managers make decisions, they have available alternatives. When there are no
alternatives, there is no decision making, rather it become mandatory.
 When managers make decisions, they have purpose in mind. The purpose in mind is
organizational objectives.
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2.1. Decision-Making Process

Decisions are organizational responses to problems. Every decision is the outcome of a dynamic
process that is influenced by multitude of forces. So decision-making has its own processes / series
of steps. The process is a sequential process rather than a series of steps.
1. Identifying problems
A necessary condition for a decision to exist is a problem - the discrepancy between an actual and
desired state; a gap between where one is and where one wants to be. If problems do not exist,
there will be no need for decisions; i.e. problems are prerequisites for decisions. How critical a
problem for the organization is measured by the gap between levels of performance specified in
the organization‟s goals and objectives and the level of performance attained; i.e. it is measured by
the gap between level of performance specified (standards set) and level of performance attained.
The problem is very critical when the gap between the standard set and actual performance
attained is very high. To locate problems, managers rely on several different indicators:
Deviations from past performance. A sudden change in some established pattern of performance
often indicates that a problem has developed. When employee turnover increases, sales decline,
selling expenses increase, or more defective units are produced, a problem usually exists.
Deviation from plan. When results do not meet planned objectives, a problem is likely. For
example, a new product fails to meet its market share objective, profit levels are lower than
planned, and the production department is exceeding its budgets. These occurrences signal that
some plan is off course.
Outside criticism. The actions of outsiders may indicate problems. Customers may be dissatisfied
with a new product or with their delivery schedules; a labor union may present a grievance;
investment firms may not recommend the organization as a good investment opportunity; alumni
may withdraw their support from an athletic program.
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Decision makers face three types of problems
A crisis problem is a serious difficulty requiring immediate action. An example of a crisis is a

severe cash flow deficiency that has a high potential of evolving into serious losses, and a student
protest against the quality of a product or administrations.
A non-crisis problem is an issue that requires resolutions but does not simultaneously have the
importance and immediacy characteristics of a crisis. Many of the decisions that managers make
center on non-crisis problems. Example of such problems is a factory that needs to be brought into
conformity with new state antipollution standards during the next three years and an employee
who frequently is late for work.
An opportunity problem is a situation that offers strong potential for significant organizational
gain if appropriate actions are taken. Opportunities typically involve new ideas and novel
directions that could be used, rather than difficulties that must be resolved. Non-innovative
managers tend to focus on problems rather than opportunities.
Confusions are common in problem definition because the events or issues that attract the
manager‟s attention may be symptoms of another more fundamental and pervasive difficulty than
the problem itself. That is, there may exist confusion on the identification of a problem and its
symptoms. The accurate definition of a problem affects all the steps that follow. Managers once
they have identified problems, they have to try to diagnose the cause of the problem. Causes unlike
symptoms are seldom apparent. This step has three general stages: scanning, categorization, and
diagnosis.
Scanning stage involves monitoring the work situation for changing circumstances that may
signal the emergence of a problem. At this point the manager may be only vaguely aware that an
environmental change could lead to a problem or that an existing situation constitutes a problem.
Categorization stage entails attempting to understand and verify signs that there is some
type of discrepancy between the current state and the desired state. At this point the manager
attempts to categorize the situation as a problem and a no problem, even though it may be difficult
to specify the exact nature of the problem, if one exists.
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Diagnosis stage involves gathering additional information and specifying both the nature and
the causes of the problem. Without appropriate diagnosis, it is difficult to experience success in the
rest of the decision-making process. At the diagnosis stage, the problem should be stated in terms
of the discrepancy between current conditions and what is desired; the cause of the discrepancy
should be specified.
2. Developing Alternatives
Before a decision is made feasible alternatives should be developed. This is a search process in
which relevant internal and external environment of the organization are investigated to provide
information that can be developed into possible alternatives. At this point it is necessary to list as
many possible alternatives solutions to the problem as you can. No major decision should be made
until several alternative solutions have been developed. Decision-making at this stage requires
finding creative and imaginative alternatives using full mental faculty. The manager needs help in
this situation through brainstorming.
3. Evaluating Alternatives
Once managers have developed a set of alternatives, they must evaluate them to see how effective
each would be. Each alternative must be judged in light of the goals and resources of the
organization and how well the alternative will help solve the problem. In addition, each alternative
must be judged in terms of its consequences for the organization. Will any problems arise when a
particular course of action is followed? Such factors as worker‟s willingness…
4. Choosing an Alternative
Based on the evaluation made managers select the best alternative; In trying to select an alternative
or combination of alternatives, managers find a solution that appears to offer the fewest serious
disadvantages and the most advantages. The purpose of selecting an alternative is to solve the
problem so as to achieve a predetermined objective. Managers should take care not to solve one
problem and create another with their choice. A decision is not an end by itself but only a means to
an end. This means the factors that lead to implementation and follow up should follow solution
selection.
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5. Implementing and Monitoring the Chosen Solution
For the entire decision-making process to be successful, considerable thought must be given to
implementing and monitoring the chosen solution. It is possible to make a "good' decision in terms
of the first five steps and still have the process fail because of difficulties at this final step.
Implementing the Solution

A decision that is not implemented is little more than an abstraction. In other words, any decision
must be effectively implemented to achieve the objectives for which it was made. Implementing a
decision involves more than giving orders. Resources must be acquired and allocated. Decisions
are not ends by themselves they are means to an end; so proper implementation is necessary to
achieve that end.
Monitoring the solution
Monitoring is necessary to ensure that things are progressing as planned and that the problem that
triggered the decision process has been resolved. Effective management involves periodic
measurements of results. Actual results are compared with planned results (the objective); if
deviations exist, changes must be made. Here again we see the importance of measurable
objectives. If such objectives do not exist, then there is no way to judge performance.
If actual results do not much planned results, then the changes must be made in the solution
chosen, in its implementation, or in the original objective if it deemed unattainable. The various
actions taken to implement a decision must be monitored. The more important the problem, the
greater the effort that needs to be expended on appropriate follow up mechanisms. Are things
working according to plan? What is happening in the internal and external environments as a result
of the decision? Are subordinates performing according to expectations? ……. must be closely
monitored.
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2.2. Decision-Making Conditions

When managers make decisions, the amount of information available to them or the degree of
knowledge they have about the likelihood of the occurrence of each alternative vary from
managers to managers or/and from situation to situation. To put it in other way, decisions are made
under three basic conditions. These are condition of certainty, condition of risk, and condition of
uncertainty.
I. Decision-making under Certainty
When managers know with certainty what their alternatives are and what conditions are associated
with each alternative, a state of certainty exists. Decisions under certainty are those in which the
external conditions are identified and very predictable; i.e. we are reasonably sure what will
happen when we make a decision. The information is available and is considered to be reliable,
and we know the cause and effect relationships.
In decision-making under certainty there is a little ambiguity and relatively low chance of making
poor/bad decisions. Decision-making under certainty seldom occurs, however, because external
conditions seldom are perfectly predictable and because it is impossible to try to account for all
possible influences on any given outcome it is very rare.
II. Decision-making under Risk
A more common decision-making situation is under risk. Under the state of risk, the availability of
each alternative, the likelihood of its occurrence and its potential payoffs and costs are associated
with probability estimates; i.e. decisions under risk are those in which probabilities can be assigned
to the expected outcomes of each alternative. In a risk situation, managers may have factual
information, but it may be incomplete. There is moderate ambiguity and moderate chance of
making bad decision.
III. Decision-making under Uncertainty
Under this condition the decision maker does not know what all the alternatives are, what the
probability of each will occur is or what consequences each is likely to have. This uncertainty
comes from the dynamism of contemporary organizations and their environment. Big multi-
national corporations assume these kinds of decisions. Decision-making under uncertainty is the
most ambiguous and there is high chance of making poor decisions. In decision-making under
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uncertainty, probabilities cannot be assigned to surrounding conditions such as competition,

government regulations, technological advances, the overall economy, etc. Uncertainty is
associated with the consequences of alternatives, not the, and other people's experiences can assist
the manager is assessing the value of alternatives. E.g. Innovation of new machine, journey of
discoverers.
2.3. Programmed and Non-Programmed
i. Programmed Decisions
Programmed decisions are those made in routine, repetitive, well-structured situations through the
use of predetermined decision rules. The decision rules may be based on habit, computational
techniques, or established policies and procedures. Such rules usually stem from prior experience
or technical knowledge about what works in the particular type of situation. Most of the decisions
made by first line managers and many of those made by middle managers are the programmed
type, but very few of the decisions made by top-level managers are the programmed type.
Managers can usually handle programmed decisions through rules, procedures, and policies. E.g.
Establishing a reorder point for the student food consumptions, Decide if students meet graduation
requirements, Determination of employee compensations.
ii. Non-programmed Decisions

Non-programmed decisions are used to solve non-recurring, novel, and unstructured problems. No
well-established procedure exists for handling them, because it has not occurred before managers
do not have experience to draw up on, or problems are complex or completely new. Because of
their nature non-programmed decisions usually involve significant amounts of uncertainty. They
are treated through farsightedness. Most of the highly significant decisions that managers make fall
into the non-programmed category. Non-programmed decisions are commonly found at the middle
and top levels of management and are often related to an organization‟s policy-making activities.
E.g. To add a new program to the existing product line, opening new colleges/ campus or hospital
expansions , to reorganize a company, to open new center.
In reality most decisions fall between the two; i.e. a continuum of decision situations exists ranging
from those that are highly structured to those that are unstructured. Situations between the two
extremes are partially structured. As the name suggests, in a partially structured situation, only a
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part is well structured. Typically, although the manager has a great deal of data available, the final
choice is not obvious. Many intangibles are involved in the final choice. Therefore, the manager
must base the ultimate decision on the data and supplementary factors, using judgment and
experience.
E.g. A hospital wishing to improve patient care may adjust its patient-staff ratio (programmable
situation), reorganize its staff (a non programmable situation).
2.4. Why Do Managers Make Poor Decisions?

All managers recognize the importance of making sound decisions. Yet most managers readily
admit having made poor decisions that hurt their organizations or their own effectiveness. Why do
managers make mistakes? Why don‟t decision always result in achieving some desired goal?
Making the wrong decision can result from any one of these decision-making errors:
Lack of adequate time- Waiting until the last minute to make a decision often prevents
considering all alternatives. It also hampers thorough analyses of the alternatives.
Failure to define goals- Objectives cannot be attained unless they are clearly defined. They should
be explicitly stated so that the manager can see the relationship between a decision and a desired
result.
Using unreliable sources of information- A decision is only as good as the information on which
it is based. Poor sources of information always result in poor decisions.
Fear of consequences- Managers often are reluctant to make bold, comprehensive decisions
because they fear disastrous results. A “play it safe” attitude sometimes limits a manager‟s
effectiveness.
Focusing on symptoms rather than causes- Addressing the symptoms of a problem will not
solve it. Taking aspirin for a toothache may provide temporary relief, but if an abscess causes the
pain, the problem will persist. Business managers too often foul on the results of problems instead
of the causes.
Reliance on Hunch and Intuition- Intuition, judgment and „feel‟ are important assets to the
decision maker. But a manager who permits intuition to outweigh scientific evidence is likely to
make a poor decision.
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Sometimes a manager‟s decision is not exactly poor, but it still doesn‟t produce optimal results.
Less than optimal decisions can have three causes:
Bounded rationality imposes limits on a decision, such as that it should be economical or

logistically practical. This limit serves as a screening device, eliminating some of the alternatives.
The manager must choose from the options that have filtered through the restrictions. The overall
optimal decision may no longer be a valid option when using this method. The decision maker
simply selects the best alternative, given various specifications that must be met.
Sub optimization is a manager‟s tendency to operate solely in the interests of his/her department
rather than in the interests of the company as a whole. In making a decision, the department
manager cannot be so self-centered as to ignore the effects of the action on other areas. The key is
to improve the company‟s performance, not just the performance of one department.
Unforeseen changes in the organizations/business/working such as social, political and

economical environment cause less than optimal decisions.
3. Communication in Organizations
Communication represents one of the fundamental aspects of human interaction in the
organizations. To quote the words of John M., Ivancewichly, James H., Donnelly and James L.
Gibson, “there is no more important managerial responsibility than to communicate effectively.
We must continuously strive to convince the public that our actions are in the interest of providing
efficient energy, that our wages are fair and that our profits are not excessive. No matter what is
reality, the case, if we cannot get our message across, then reality becomes whatever customers,
employees and government officials want to believe.”
It is often said that communication is the lifeblood of an organization. It so important that without
it an organization cannot function. An organization is a group of people associated for business,
political, professional, religious, athletic, and social or other purposes. Its activities require human
beings to interact, react and communicate. They exchange information ideas, plans, make
decisions, rules, proposal, contracts, agreements, etc. Both within and outside the organization,
effective communication-oral and written-is its lifeblood
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Alvin Dodd aptly remarked once, “The number one management problem today is
communication”. This is because success of an organization is largely dependent on the way things
are communicated to employees, stakeholders and customers and the process of communication. If
the management does not pay proper attention to the methods of getting the ideas of employees
and orders across the employees, failure to achieve organizational goals is quite possible.
Everyone in the management positions within an organization is part of management in one way or
another, whether managing people, managing projects or managing our own activities. Managers
at all levels, plan, organize, staff, direct and control the organizational activities. Each of these
functions relies heavily on communication to achieve goal.
Effective Communication is ability to communicate effectively is ensuring that the message is

received the way it was intended. Therefore, verbal communication, written/visual communication,
body language and the imagery must be managed to ensure effectiveness. However, ineffective
communication can be the source of potential conflicts. Effective communication must bring
mutual understanding or bring about the meeting of the two parties on common ground.
The Six “Cs” of Effective Communication(Clear, Complete, Concise, Consistent, Correct and
Courteous) must be implemented in any organization to make that organization successful.
3.1. Communications and Managerial Functions

i. Planning and Good communication
Planning includes setting up goals, determining objectives, and working with others to develop
guidelines and procedures to follow. Sometimes you will be communicating to employees by
developing policy manuals. When you write clear and understandable manuals, all employees
know what management expects of them. By effectively explaining the organizations internal rules
of the game, management helps coordinate action among employees to fulfil company‟s
objectives. Communication plays a major role in these activities, so that management and
employees can monitor procedures and training and modify them as appropriate to achieve the
desired outcomes.
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ii. Organizing and Good Communication
The organizational chart shows the formal channels of communication. A channel of

communication is the path through which communication messages should flow. Managers are
also responsible for organizing the following:
 The physical workplace, and
 The flow of work in the organization.
Both of these activities require the manager to examine and investigate situation, formulate
possible solutions, decide on the best solution and implement that best solution. This has to be
communicated to the employees, stakeholders and customers.
iii. Staffing and Good Communication
Communication is an important part of hiring employees, training them, evaluating their

performance and changing their status and attitudes in the organization. If you supervise other
people, you will also have staffing responsibilities.
iv. Directing and Good Communication
Managing other people requires technical, conceptual and human skills as follows:
 Conceptual Skills: The ability to diagnose problems and identify solutions.
 Technical Skills: The manager‟s knowledge of the process or techniques.
 Human Skills: The ability to work with people.
Being able to communicate and work with people is important at all levels. Managers must be able
to compose memos and reports and develops policy statements and workable procedures. An
ability to speak clearly and concisely is crucial to manager‟s success. A manager is called on to
make oral reports to upper managers and talk to employees about job and personnel matters.
v. Controlling and Good Communication

The control process in managing people or projects involves:
Establishing standards
Measuring performance
Analyzing deviations from standards, and
Taking corrective actions
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Whether the management seeks to control an employee‟s performance, the provision of a service,
or the manufacturer of a product, each control step requires strong communication skills.
Determining standards, measuring performance, and analyzing the differences between standards
and performance also entail communication skills. And taking corrective actions require
communicating the necessary changes to the workers who will carry out the tasks. Significant
changes may require you to submit written proposals to upper-level management. Anytime you
make changes, strong communication skills can help to smooth the process.
Communication assists organizational member to accomplish both individual and organizational

goals, implement and respond to organizational change, coordinate organizational activities, and
engage in virtually all organizational relevant behaviors. It would be extremely difficult to find an
aspect of a manager's job that does not involve communication. In other words communication is
unavoidable in an organization's functioning. By its very nature a manager's job requires
communication. The success of every manager and every organization depends on communication.
3.2. Types of communications

i. Formal communication
Formal communication is a communication, which is intentionally designed by the organization.

Information flows through the formally established channel and is concerned with work related
matters. Formal communication includes; Downward communications, Upward communication,
Horizontal communication, and Diagonal communication.
Downward communication
Down ward communications occurs when information is transmitted from higher to lower levels in
an organization. Downward communication starts with top management and flows down through
the management levels to line workers and non-supervisory personnel. eg. From President to Vice
Presidents or from Vice Presidents to respective Directors or deans or from Deans to respective
department Heads or from Directors to respective team leaders/coordinators . The major purposes
of downward communication are to provide organization members with information about
organizational goals and policies. The kinds of media used for downward communication include
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instructions, speeches, meetings, the telephone, memoranda, letters, handbooks, pamphlets, policy
statements, procedures, etc.
Upward communication
In upward communications, the communicator is at a lower level in the organization than the
receiver. In other words, information flows from the subordinates to the superior. The main
function of upward communication is to supply information to the upper levels about what is
happening at lower levels. Eg. from coordinator/team leaders to respective directors or from
department head to respective dean or from deans/directors to respective Vice president or from
Vice president to President. It includes the flow of opinions, ideas, complaints, progress reports,
suggestions, explanations, and requests for aid or decisions and other kinds of information from
subordinates up to managers. Typical means for upward communication besides the chain of
command are suggestion systems, appeal and grievance procedures, complaint systems, counseling
sessions, group meetings, etc.
Horizontal communication
Horizontal communication is lateral message exchange either within work unit boundaries,
involving peers who report to the same supervisor, Eg. communications of management
department head and Accounting and finance department Head or across work unit boundaries,
involving individuals who report to different supervisors. Eg. communications of management
department head of college of Business and Economics and Agricultural Economics and Agri-
business department head of college of Agriculture and Environmental science. It takes place
among departments or people on the same level of hierarchy. It is useful to coordinate activities.
Horizontal communication can take many forms, including meetings, reports, memos, telephone
conversations, and face-to-face discussions between individuals.
Diagonal communication
Diagonal communication involves the flow of information among departments or individuals on

different levels of the hierarchy. Eg. communications of plant science Department with Vice-
president of Research Affairs or Vice-president for Administrations and student service affairs or
communications of dean college of computing and informatics with Information's and
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communications director. This occurs often in the case of line and staff departments, in which the
staff has functional authority. It is also common to find diagonal communication among line
departments, again in which one of them has functional authority. The use of diagonal channel
would minimize the time and effort expended by the organization (upward and then horizontal).
ii. Informal Communication Network
Informal communication is based on informal relationships that grow up in an organization. It

develops to meet the needs that are not satisfied by formal communication. Sources of informal
communication include:
 Grapevine- channel mostly associated with rumours and gossip
 Social gatherings- provides opportunity for various ranks to interact
 Walking around- where a manager informally walks through the work area and casually talks
to employees
Grapevine
The grape-vine is the communication system of informal organization. It co-exists with

management‟s formal communication system. Since the grape-vine arises from social interaction,
it is fickle, dynamic and varied. It is the expression of people‟s natural motive to communicate. It
is the exercise of their freedom of speech and is a natural activity. Wherever people congregate in
groups, the grape-vine is sure to develop. Organizations cannot „fire‟ the grape-vine because they
did not hire it. It is simply there.
Features of the grape-vine

 The grape-vine is a well known source of confidential information and more people
oriented than issue oriented
 It gives managers much feedback about employees and their jobs.
 It carries information that the formal system does not wish to carry. It is fast flexible,
personal and accomplishes so much positively and negatively
 It has the unusual ability to penetrate even the organizations tightest security
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Influencing Grapevine
Managers should learn about the leaders of the grapevine, how it operates and what information it
carries. Managers should try to influence the grape-vine to reduce anxiety, conflict as well as its
negative effects through effective communications.
4. Organizational Leadership
Leadership is one of the key factors which can drive a business to either success or failure.
Leadership today faces a challenges to maintain a strategic vision, coping with ubiquitous and
advancement of technology, fluctuations in budget and staffing. Leader is defined in terms of L-
listening and learning from others, E-energizing the organization, A-acting for the benefit of
everybody, D- development of themselves and others, E-empowerment of others to lead and R-
recognition of achievement. Leadership is a process whereby an individual influences a group of
individuals to achieve a common goal. Leadership is an attempt to use non coercive types of
influence to motivate individuals to accomplish some goals.
Leadership concerns managers undergoing highly complex interactions with their social, task and
organisational environments, thus the effects that leaders can have on organisation, on employees
and on job task, are also highly complex and dynamic and require further investigation. Therefore,
leadership is about more than the supervision of others, and involves the diverse interactions
between leader, individuals in work place, task and the organisation. A leader is a person who
takes the central role in interactions and who influences the behavior of other members of the
group to achieve stated common goal .
Leadership must be defined in terms of the ability to build and maintain a group that performs in
doing decision making for an organization. Leaders should be evaluated in terms of the
performance of the group over time and their leadership skills. The true leaders really know their
responsibility to give order and engage with subordinates in order to adapt to situations. This
means leaders are using the most appropriate style to suit the people and circumstances at
particular time. Stated that leadership means the way to create a clear vision, filling their
subordinates with self-confidence, created through coordination and communication to detail.
Leadership is an activity of a member who is a leader of the group to influence a group member to
achieve its goals.
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Leadership Approaches
Leadership approaches of the leaders cover many areas of leadership. In this material, three most
prominent types of leadership approach are to be focused on, namely: Laissez-faire, transactional,
and transformational leadership style. The approach is chosen because of its prevalence in
management research and the efficacy demonstrated through research findings.
Laissez-faire leadership
Laissez-Faire leadership can be described as a non-directive, passive and inactive style. Leaders of
this style believe that internal drives and beliefs motivate the follower to act. An avoidant leader
may either not intervene in the work affairs of subordinates or may completely avoid
responsibilities as a superior and is unlikely to put in effort to build a relationship with
subordinates. Laissez-faire style is associated with dissatisfaction, unproductiveness, and
ineffectiveness. Laissez-faire leaders are characterized as uninvolved with their followers and
members; in fact, laissez-faire leadership is an absence of leadership style.
The roles of laissez-faire followers include self-monitoring, problem solving, and producing
successful end products. Laissez-faire leaders are most successful in environments with highly
trained and self-directed followers. Laissez-faire leadership is appropriate in particular settings
such as science laboratories or established companies with long-term employees. Laissez-faire
leadership is not suited to environments in which the members require feedback, direction,
oversight, flexibility, or praise. A laissez-faire leader lives and works with whatever structure put
in place without any suggestions or criticisms. Goals and objectives are established only when
necessary and required. The leader is not control-frisk and abdicates controlling to employees. The
leader turns away from decision-making as much as possible and would like to avoid
communication but communicates only when needed.
The leader in this style sets few rules for processing the issues in the organization and then
delegates them to the subordinates. The leader needs to know very well the level of knowledge,
competence and integrity of his followers to be able to delegate the tasks. This style helps the
follower to invest their talents and abilities to the maximum level. Laissez-Faire leaders do not
influence the organization culture due to minimal interactions between the leader and the
followers. This is called extremely laid-back leaders. This is a leader who lets the group take
whatever action its members feel is necessary.
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Transactional leadership
Transactional leaders focus mainly on the physical and the security needs of subordinates. The
relationship that evolves between the leader and the follower is based on bargaining exchange or
reward systems. Transactional leadership is usually characterized as instrumental in followers‟
goal attainment.
Major components in transactional leadership are contingent reward, active management by

exception and passive management by exceptions. Contingent reward: whereby subordinates
performance is associated with contingent rewards or exchange relationship. Active Management
by exception: whereby leaders monitor followers‟ performance and take corrective measures if
deviations occur to ensure that outcomes are achieved; and Passive Management by exception:
whereby leaders fail to intervene until problems become serious. Transactional leaders try to
motivate their followers through extrinsic rewards. Contingent reward is therefore the exchange of
rewards for meeting agreed-on objectives. Active management by exception which occurs when
the leader monitors followers to ensure mistakes are not made. In passive management by
exception, the leader intervenes only when things go wrong.
Transformational leadership
Transformational leaders encourage subordinates to put in extra effort and to go beyond what
subordinates expected before . The subordinates of transformational leaders feel trust, admiration,
loyalty, and respect toward leaders and are motivated to perform extra-role behaviors .
Transformational leaders achieve the greatest performance from subordinates since they are able to
inspire their subordinates to raise their capabilities for success and develop subordinates‟
innovative problem solving skills.
This leadership style has also been found to lead to higher levels of organizational commitment
and is associated with corporate performance. Transformational leadership approach focuses more
on change, and inspires followers to have a shared vision and goals of an organization, challenges
them to be innovative, problem solvers, and also helps to develop followers‟ leadership capabilities
through coaching, mentoring and by providing both challenge and support to the followers. From a
transformational leadership perspective, leadership is considered to be about doing what has never
35
been done, and it includes visionary and charismatic leadership. Transformational is leadership
identified as idealized influence, inspirational motivation, intellectual stimulation and
individualized consideration).
Idealized influence (charisma): They are the charismatic elements in which leaders become role
models who are trusted by subordinates. The leaders show great persistence and determination in
the pursuit of objectives, show high standards of ethical, principles, and moral conduct, sacrifice
self-gain for the gain of others, consider subordinates needs over their own needs and share
successes and risks with subordinates.
Inspirational motivation: Leaders behave in ways that motivate subordinates by providing

meaning and challenge to their work. The spirit of the team is aroused while enthusiasm and
optimism are displayed. The leader encourages subordinates to envision attractive future states
while communicating expectations and demonstrating a commitment to goals and a shared vision.
Intellectual stimulation: Leaders stimulate their subordinates‟ efforts to be innovative and

creative by questioning assumptions, reframing problems, and approaching old situations in new
ways. The intellectually stimulating leader encourages subordinates to try new approaches but
emphasizes rationality. Individualized consideration: Leaders build a considerate relationship with
each individual, pay attention to each individual‟s need for achievement and growth by acting as a
coach or mentor, developing subordinates in a supportive climate to higher levels of potential.
Individual differences in terms of needs and desires are recognized.
Leadership and organizational Success

Organizations, whether they are educational, business, industrial, government, military, service,
healthcare, or entertainment focused, are made up of people. It is people who provide leadership,
stewardship and followership in every organization. It is people who make things happen in all
organizations. To understand the causes of organizational behaviors without an understanding of
people is like trying to understand the cause of a moving vehicle without knowing about the engine
and driver. The effectiveness of leadership to a large extent is responsible for organizational
success or failure. Of course, where organizations that people are their most important asset and
that their strength is their people. The rapidly changing nature of today's economy and global
36
competitiveness requires a fundamental rethinking in how organizations manage and motivate

people for corporate success.
Organizations will not be successful or survive if they do not pay sufficient attention to their
working people. They want to do their best every working day to help make their organizations
successful. The essence of leadership is influence, leadership could broadly be defined as the art of
mobilizing others to organizational success. However, it could be argued this influence,
mobilization and struggle is of little value in an organizational context unless it ultimately yields
an outcome in line with the shared aspiration for leadership to be successful. In today‟s globalized
world, with organizations coping with rapidly changing environments, leaders face a new reality in
corporate success. What is now needed are leaders who simultaneously can be agents of change
and centers of gravity, keep internal focus and enable people and organization to adapt and be
successful. The appropriate measurement outcome from leadership quality is effectiveness
(reflecting the leader‟s efficacy in achieving organizational outcomes, objectives, goals and
subordinates needs in their job).
37
5. Followership
In addition to leaders who can lead, successful organizations need followers who can follow. In
fact, it is probably fair to say that all organizations have far more followers than leaders, so
ineffective followers may be more of a handicap to an organization than ineffective leaders. In
contrast to leadership, the topic of followership has not been extensively researched. Much of the
leadership literature suggests that leader and follower roles are highly differentiated. The
traditional view describes followers as passive, whereas a more contemporary view, views the
follower role as an active one with potential for leadership.
The follower role has alternatively been cast as one of self-leadership in which the follower
assumes responsibility for influencing his or her own performance. Organizational programs such
as empowerment and self-managed work teams may be used to further activate the follower role.
It is increasingly difficult to think of followers as passive agents of wilful leaders. One study of
leader-follower dynamics over a three-month period actually found leaders responding to follower
performance rather than causing or initiating it. Followers are an active component of the
leadership process, and we need to expand our core knowledge about followership even further.
Followership in organizations is the process of being guided and directed by a leader in the work
environment. Leaders and followers are companions in the processes of leadership. Although your
position as a manager, supervisor, lead, etc. gives you the authority to accomplish certain tasks and
objectives in the organization, this power does not make you a leader...it simply makes you the
boss. Leadership differs in that it makes the followers want to achieve high goals, rather than
simply bossing people around. This section examines different types of followers and the
characteristics of a dynamic subordinate. As we examine the follower role, keep in mind that blind,
unquestioning followership may lead to destructive, and even antisocial behavior.
38
5.1. Types of followers

Contemporary work environments are ones in which followers recognize their interdependence
with leaders and learn to challenge them while at the same time respecting the leaders authority.
Effective followers are active, responsible, and autonomous in their behavior and critical in their
thinking without being insubordinate or disrespectful. Effective followers and four other types of
followers are identified based on two dimensions: (1) activity versus passive and (2) independent,
critical thinking.
1. Alienated follower
These are ones who think independently and critically, yet are very passive in their behavior. As a
result, they become psychologically and emotionally distance from leaders. Alienated followers
are potentially disruptive and a threat of the health of the organization.
2. Sheep are followers.
Sheep are followers who do not think independently and are passive in their behavior. They
simply do as they are told by others. In essence, they are salves to the system.
3. Yes people
Yes people are followers who also do not think independently or critically, yet they are very
active in their behavior. They uncritically reinforce the thinking and ideas of their leaders with
enthusiasm, never questioning or challenging the wisdom of the leaders‟ ideas and proposals. Yes
people are the most dangerous to a leader because they are the most likely to give a false positive
reaction and give no warning of potential pitfalls.
4. Survivors.
Survivors are followers who are the list disruptive and the lowest risk followers in an
organization. They perpetually sample the wind, and their motto is “ Better safe than sorry”.
5. Effective followers
Effective followers are the most valuable to leader and an organization because of their active
contributions. Effective followers share four essential qualities.
39
First, they practice self-management and self- responsibility. A leader can delegate to an effective
follower without an anxiety about the outcome.
Second, they are committed to both the organization and a purpose, principle, or a person outside
themselves. Effective followers are no self-centered or self-aggrandizing. There is a risk,
however, when the follower is committed to a purpose or principle at odds with the organization.
Third, effective followers invest in their own competence and professionalism and focus their
energy for maximum impact. Effective followers look for challenges and ways in to add to their
talents or abilities.
Fourth, they are courageous, honest, and credible. Effective followers might be thought of self
leaders who do not require close supervision. The notion of self-leadership or super-leadership
blurs the distinction between leaders and followers. There is a complementary concept of caring
leadership. Caring leadership focus attention on the followers, demonstrating concern for their
development and well-being. Caring leadership is follower-centered, not self-centered. The caring
leader is able to develop dynamic followers.
40
Five Types of Followers
Independent, critical thinking
Alienated Effective
followers followers
Survivors
Passive Active
Yes
Sheep people
Independent, uncritical thinking
5.2. Dynamic followers

The traditional stereotype of the followers or employee is of someone in a powerless and
dependence role rather than in a potent active, significant role. The later is more contemporary,
healthy role in which the follower is dynamic. The dynamic follower is responsible
supervisor/steward of his or her job, is effective in managing the relationship with the boss, and
practice responsibility self- management.
A responsible job supervisor/ steward is one who masters the content of his or her work or
possesses and develops the skills required to do a good job. Once prepared, a dynamic follower
then does a good job without being led. The dynamic follower is a self-starter. The dynamic
follower becomes a trusted advisor to the boss by keeping the supervisor well informed and
building trust and dependability in to relationship.
41
He or she is open to constructive criticism and solicits performance feedback. The dynamic
follower shares needs and is responsible. Self management requires acquiring self awareness and
control of one‟s own feelings and behavior. It means being non-defensive and taking risks by
challenging the supervisor and the organization.
Dynamic followers are effective in managing the relationship with their boss .It takes time and
practice to nurture a good relationship between a follower and a supervisor. Once this relationship
has been developed, it is a valuable resource for both. Therefore, the follower should be selective
in the use of the supervisor‟s time and resource while always keeping the supervisor informed
about work.
42
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Organization Management

Modern organizations operate in a dynamic and complex working environment. The

As described by Richard L. Daft (1983) management is the attainment of organizational goals in

1.2 .Management Theories

II. Behaviour Approach

III. Management Science Approach

IV. Integrating (Classical , Behaviour and Management Science) Approach

1.3 . Scope of Management

including profit-seeking organizations (industrial firms, banks, insurance companies, small

1.4 . Management Functions

1.5 .Significance of Management

1.6 . Management Principles

1.7 . Types of Managers

 Regardless of their title, they are subordinates are managers.

The strength of management capability at the mid-level is a primary determinant of an

Organizational Hierarchy Time spent on carrying out managerial functions

1.8 . Managerial Roles

1.9 . Managerial Skills

Technical skill is of greatest importance at supervisory level; it becomes less important as we

Managerial Levels Managerial Skills

Decision-making is a rational choice or selection of one alternative from among a set of

Decision-making has three elements (parts)

2.1. Decision-Making Process

Decision makers face three types of problems

A crisis problem is a serious difficulty requiring immediate action. An example of a crisis is a

5. Implementing and Monitoring the Chosen Solution

Implementing the Solution

Monitoring the solution

2.2. Decision-Making Conditions

II. Decision-making under Risk

III. Decision-making under Uncertainty

uncertainty, probabilities cannot be assigned to surrounding conditions such as competition,

2.3. Programmed and Non-Programmed

ii. Non-programmed Decisions

2.4. Why Do Managers Make Poor Decisions?

Bounded rationality imposes limits on a decision, such as that it should be economical or

Unforeseen changes in the organizations/business/working such as social, political and

Effective Communication is ability to communicate effectively is ensuring that the message is

3.1. Communications and Managerial Functions

ii. Organizing and Good Communication

The organizational chart shows the formal channels of communication. A channel of

iii. Staffing and Good Communication

Communication is an important part of hiring employees, training them, evaluating their

iv. Directing and Good Communication

v. Controlling and Good Communication

Communication assists organizational member to accomplish both individual and organizational

3.2. Types of communications

Formal communication is a communication, which is intentionally designed by the organization.

Diagonal communication involves the flow of information among departments or individuals on

ii. Informal Communication Network

Informal communication is based on informal relationships that grow up in an organization. It

The grape-vine is the communication system of informal organization. It co-exists with

Features of the grape-vine

Major components in transactional leadership are contingent reward, active management by

Inspirational motivation: Leaders behave in ways that motivate subordinates by providing

Intellectual stimulation: Leaders stimulate their subordinates‟ efforts to be innovative and

Leadership and organizational Success

competitiveness requires a fundamental rethinking in how organizations manage and motivate

5.1. Types of followers

2. Sheep are followers.

Five Types of Followers

Independent, critical thinking

Independent, uncritical thinking