Principles of Management

Name: Tasmina Iftikhar

Roll No: 2k20/IT/129
Email:tasmeena.rajput01@gmail.com
Submitted To: Aunsa Shah
Q1:What are benefits of management? And briefly describe the role
and function of effective?

Management And It’s Benefits:

Management is a process of maintain and designing an environment in which an
individual can work together in group to achieve an organizational goal

Although there are many benefits of management that one can achieve some of
them are mentioned below:

Having a clear overview of running a business;

Fully comprehending the value of a team member;

Learning more-rounded approaches to managing people;

Developing communication skills that you’d never have before; and

Constantly learning on the job.

Roles of Manager:
A manager is someone who is primary responsible for carrying out management
process with in an organization to achieve organizational goal

Figurehead:
Represents the company on social occasions. Attending the flag hosting
ceremony, receiving visitors or taking visitors for dinner etc.

Leader:
In the role of a leader, the manager motivates, encourages, and builds
enthusiasm among the employees. Training subordinates to work under pressure,
forms part of the responsibilities of a manager

Liaison:
Consists of relating to others outside the group or organization. Serves as a link
between people, groups or organization. The negotiation of prices with the
suppliers regarding raw materials is an example for the role of liaison.

Entrepreneur:
Encourage changes and innovation, identify new ideas, delegate idea and
responsibility to others

Disturbance handler:

Take corrective action during disputes or crises; resolves conflicts among

subordinates; adapt to environmental crisis.

Resource allocator:
Decides distribution of resources among various individuals and groups in the
organization.

Negotiator:
Negotiates with subordinates, groups or organizations- both internal and
external. Represents department during negotiation of union contracts, sales,
purchases, budgets; represent departmental interests
Monitor:
Emerges as nerve center of internal and external information

Disseminator:

Transmits information received from other employees to members of the

organization.

Spokesperson:
Transmits information to the people who are external to the organization, i.e.,
government, media etc announcing a new product launch or other major deal

FUNCTION OF EFFECTIVE MANAGER

Good managers discover how to master five basic functions: planning, organizing,
staffing, leading, and controlling. Planning: This step involves mapping out exactly
how to achieve a particular goal

Planning:
Planning is the process of setting goals, and the best way of action for achieving
the goals , considering the various steps to be taken to encourage the necessary
levels of change and innovation.

Organizing:
Organizing is the process of allocating and arranging work, authority and
resources, to the members of the organization so that they can successfully
execute the plans

Staffing:
Staffing is the process of recruiting and selecting the right person for the right job
Leading:
Leading involves directing, influencing and motivating employees to perform
essential tasks. This function involves display of leadership qualities, leadership
styles , influencing powers , with excellent abilities of communication and
motivation.

Controlling:
Controlling is the process of devising various checks to ensure that planned
performance is actually achieved. It involves ensuring that actual activities
conform to the planned activities. Monitoring the financial statements, checking
the cash registers to avoid overdraft etc., form part of this process.

Q2:What is Bench marking and why it is useful?

Ans: The objective of benchmarking is to understand and evaluate the current
position of a business or organization in relation to best practice and to identify
areas and means of performance improvement.

Bench marking involves the process of learning from other organizations or

industries that how they made their achievements. It defines the process behind
the excellent performances performed by the industry and when we applied
those practice in our industry we can visibly notice the improvement in
performances in critical functions within an organization or in key areas of the
business.

Bench marking involves four key steps;

Understand in detail existing business performance

Analyze business process of others

Compare your business performance from others

Take necessary steps to overcome the performance gap.

Bench marking allows the company to improve their quality and quantity of
products and services .It gives idea about the last technology in used and it help in
cost reduction as they are aimed at increasing productivity while reducing the
cost in order to stay in competition. It help an organization to focus on an area
where there is performance gap whether do they need to improve their standards
of products. This helps organization to think where they needs to work on. Bench
marking can also highlights the areas where the organization is doing much better
than what is observed in the market. Having this information can help
organization to

It is the simplest way to understand where an organization stands, and how far it
needs to go before it reaches the top. While earlier benchmarking was a ‘good to
do’ initiative, today it has become critical for organizations to benchmark in order
to stay relevant and gain a competitive edge.

Q3: Define strategic management ? why is it important?

Strategic Management:
Ans: Strategic management is a branch of management that deals with strategic
vision setting out objectives, formulating and to reach the organization’s strategic
intent. It has two-fold objectives implementing strategies and introducing
corrective measures for the deviations

To gain competitive advantage, with an aim of outperforming the competitors, to

achieve dominance over the market.

To act as a guide to the organization to help in surviving the changes in the

business environment.
Here, changes refer to changes in the internal environment, i.e. within the
organization, introduced by the managers such as the change in business policies,
procedures etc. and changes in the external environment as in changes in the
government rules that can affect business, competitors move, change in
customer’s tastes and preferences and so forth.

Importance of Strategic Management:

• It guides the company to move in a specific direction. It defines

organization’s goals and fixes realistic objectives

• It assists the firm in becoming proactive, rather than reactive, to make it

analyze the actions of the competitors and take necessary steps to compete
in the market,

• It acts as a foundation for all key decisions of the firm.

• It attempts to prepare the organization for future challenges and play the
role of pioneer in exploring opportunities and also helps in identifying ways
to reach those opportunities.

• It ensures the long-term survival of the firm while coping with competition
and surviving the dynamic environment.

• It assists in the development of core competencies and competitive

advantage, that helps in the business survival and growth.
Q4: What is the best leadership’s style for successful manager today?
Ans: Dwight Eisenhower’s quoted an statement that says :
“Leadership is the art of getting someone else to do something you want done
because he wants to do it, not because your position of power can compel him to
do it

Leadership is the inspirational and motivational aspects that help each of them to
understand their purpose

Coach
A coaching leader is someone who can quickly recognize their team members’
strengths, weaknesses and motivations to help each individual improve. This type
of leader often assists team members in setting smart goals .

Visionary
Visionary leaders have a powerful ability to drive progress and usher in periods of
change by inspiring employees and earning trust for new ideas. A visionary leader
is also able to establish a strong organizational bond. They strive to foster
confidence among direct reports and colleagues alike.

Autocratic
An authoritarian style of leadership, someone who is focused almost entirely on
results and efficiency. They often make decisions alone or with a small, trusted
group and expect employees to do exactly what they’re asked.

This leadership style can be useful in organizations with strict guidelines or

compliance-heavy industries. It can also be beneficial when used with employees
who need a great deal of supervision—such as those with little to no experience.
However, this leadership style can stifle creativity and make employees feel
confined.

Laissez-faire or hands-off:
This leadership style is the opposite of the autocratic leadership type, focusing
mostly on delegating many tasks to team members and providing little to no
supervision. Because a laissez-faire leader does not spend their time intensely
managing employees, they often have more time to dedicate to other projects.

Democratic or participative:
The democratic leadership style also called the participative style is a combination
of the autocratic and laissez-faire types of leaders. A democratic leader is
someone who asks for input and considers feedback from their team before
making a decision

Transformational:
The transformational leadership style is similar to the coach-style in that it
focuses on clear communication, goal-setting and employee motivation.
However, instead of placing the majority of the energy into each employee’s
individual goals, the transformational leader is driven by a commitment to
organizational objectives.

Pacesetter:
The pacesetting leadership style is one of the most effective for driving fast
results. These leaders are primarily focused on performance. They often set high
standards and hold their team members accountable for hitting their goals.

Q5:How does risk management help in any organization?

Risk management encompasses the identification, analysis, and response to risk
factors that form part of the life of a business. Effective risk management means
attempting to control, as much as possible, future outcomes by acting proactively
rather than reactively. Therefore, effective risk management offers the potential
to reduce both the possibility of a risk occurring and its potential impact.

Risks management is an important process because it empowers a business with

the necessary tools so that it can adequately identify and deal with potential risks.
Once a risk’s been identified, it is then easy to mitigate it. In addition, risk
management provides a business with a basis upon which it can undertake sound
decision-making.

When a business evaluates its plan for handling potential threats and then
develops structures to address them, it improves its odds of becoming a
successful entity.

Risk Analysis Process

Risks analysis is a qualitative problem-solving approach that uses various tools of
assessment to work out and rank risks for the purpose of assessing and resolving
them. Here is the risk analysis process:

Identify existing risks

Risk identification mainly involves brainstorming. A business gathers its
employees together so that they can review all the various sources of risk.Then
they arrange risk in order of priority. Because it is impossible to cope with all
simultaneously, prioritization ensures that those risks that can affect a business
significantly are dealt with more urgently.

Assess the risks

In many cases, problem resolution involves identifying the problem and then
finding an appropriate solution. However, prior to figuring out how best to handle
risks, a business should locate the cause of the risks by asking the question, “What
caused such a risk and how could it influence the business

Develop an appropriate response

Once a business entity is set on assessing likely remedies to mitigate identified
risks and prevent their recurrence, it needs to ask the following questions: What
measures can be taken to prevent the identified risk from recurring? In addition,
what is the best thing to do if it does reoccur
Develop preventive mechanisms for identified risks
Here, the ideas that were found to be useful in mitigating risks are developed into
a number of tasks and then into contingency plans that can be deployed in the
future. If risks occur, the plans can be put to action.

Qno6: Define the nature and purpose of directing?

Ans: Directing:

Direction is that inert-personnel aspect of management which deals directly with

influencing, guiding, supervising, motivating sub-ordinate for the achievement of
organizational goals. Direction has following elements. The nature and scope of
directing in management is concerned with employee orientation, issuing
instructions, supervision, motivation, communication and leadership.

Employee Orientation: An employee must be properly oriented to the enterprise

in which they are working. This orientation is necessary for them to accomplish
the objectives of the enterprise

Instructions: An instruction is an order or command by a senior directing a

subordinate to act or refrain from acting under a given situation. The right to
issue orders should be with the superior by virtue of his position.

• Supervision
• Motivation
• Leadership
• Communication
• Supervision:
Supervision:
Supervision is the act or function of overseeing something or somebody. A person
who performs supervision is a "supervisor", but does not always have the formal
title of supervisor.

Motivation:
Motivation is a term that is used to motivate, inspire , stimulate a person so that
he may get an inspiration from his work to perform even more better.
Management has to induce the employee to utilize his talent and skill to
contribute to the organizational goal

Leadership:
It may be defined as a process by which manager guides and influences the work
of subordinates in desired direction

Communication:
is the process of passing information, experience, opinion etc, from one person to
another. It is a bridge of understanding