MANAGERIAL SKILLS &

COMMUNICATION SKILLS

PRISKILA GISSELA MARLIA WALANGITAN

MATRIKULASI - PROGRAM STUDI MAGISTER MANAJEMEN FEB UNSRAT
PROGRAM STUDI MAGISTER MANAJEMEN FEB UNSRAT

SOAL MATRIKULASI
SEMESTER GASAL TAHUN AKADEMIK 2018/2019

PENGANTAR MANAJEMEN: MANAGERIAL SKILLS & COMMUNICATION SKILLS)

Bagian I. Jawablah BENAR jika pernyataan di bawah ini BENAR, dan SALAH jika pernyataan di
bawah ini SALAH (Bobot 1 Untuk Setiap Soal Yang Dijawab Dengan Tepat).

No Answer Statement
A manajer is someone who works with and through other people by coordinating
1 Benar
their work activities in order to accomplish organizational goals.
First-line managers (or lower manajers) often have the title of supervisor, but they
2 Benar may also be called shift managers, district managers, departement managers, office
managers, or even foreperson.
First-line managers at the lowest level of the organization that manage the work of
3 Benar
nonmanagerial employees.
Top managers at the lowest level of the organization that manage the work of
4 Benar
nonmanagerial employees.
Middle managers include all levels of management between the first level and the top
5 Benar
level of the organization.
6 Benar Middle manager is someone who manage the work of first-line managers.
The middle managers may have titles such as regional managers, project leader,
7 Benar
plant manager, or division managers.
8 Benar The upper levels of the organizational structure are the top managers.
Top managers are someone who are responsible for making organization-wide
9 Benar
decisions and establishing the plans and goals that affect the entire organization.
Top managers typically have titles such as executive vice president, president,
10 Benar
managing director, chief operating officer, chief executive officers, or chairperson.
Management strives for: low resources waste (high efficiency) and high goal
11 Benar
attainment (high effectiveness).
Management strives for: low resources waste (high effectiveness) and high goal
12 Benar
attainment (high efficiency).
Efficiency refers to getting the most output from the least amount of inputs
13 Benar
(including resources such as man, money, machine, and method)
Effictiveness refers to getting the most output from the least amount of inputs
14 Benar
(including resources such as man, money, machine, and method)
15 Benar Efficiency is often described as “doing things right” (that is, not wasting resources).
Effectiveness is often described as “doing the right things” (that is, doing those work
16 Benar
activities that will help the organization reach its goals).
17 Benar Management is the art and science.
Management involves coordinating and overseeing the work activities of others so
18 Benar
that their activities are completed efficiently and effectively.
According George Terry, the management functions include planning, organizing,
19 Benar
actuating (or leading), and controlling.
Planning is management function that involves defining goals, establishing strategies
20 Benar
for achieving those goals, and developing plans to integrate and coordinate activities.
Organizing is management function that involves defining goals, establishing
21 Salah strategies for achieving those goals, and developing plans to integrate and
coordinate activities.
Organizing is management functions that involves arranging and structuring ork to
22 Benar
accomplish the organization’s goals.
Planning is management functions that involves arranging and structuring ork to
23 Salah
accomplish the organization’s goals.
Actuating or leading is management functions that involves working with and through
24 Benar
people to accomplish organizational goals.
Controlling is manangement function that involves monitoring, comparing, and
25 Benar
correcting work performance.
Management roles involves interpersonal relationship, informational, and decisional
26 Benar
roles
27 Benar The informational roles include collecting, receiving, and disseminating information.
28 Benar Management skills include technical skills, human skills, and consceptual skills.
Technical skills are the job-specific knowledge and techniques needed to proficiently
29 Benar
perform specific task.
30 Benar Technical skills tend to be more important for lower-level managers.
31 Benar Technical skills tend to be more important for top managers.

1
 Human skills are the ability to work well with other people individually and in a
32 Benar
group.
Conceptual skills are the ability to think, to conceptualize, and to use informational to
33 Benar
solve business problems.
According Adam Smith (1977) the economic advantages that organizations and socity
34 Salah
would gain from the division of labor (or job specialization).
35 Benar Frederick W. Taylor (1856-1915) was the father of scientific management.
36 Benar Weber described an ideal type of organization he called a bureaucracy.
Licensing is an organization gives onother organization the right to make or sell its
37 Salah products using its technology or product specifications (primarily used by
manufacturing organizations).
Franchising is an organization gives another organization the right to use its name
38 Benar
and operating methods (primarily used by service organizations).
A functional structure is an organizational design that groups similiar or related
39 Benar accupational specialties together, and for instance is organized arroung the functions
of manufacturing, marketing, finance, human resources, and product R & D.
40 Benar Organizational structure is the formal arrangement of jobs within an organization.
41 Benar Departementalization is the basic by which jobs are grouped together.
Span of control is number of employees that a manager can efficiently and effectively
43 Benar
manage.
Specifc environment that involves customers, suppliers, competitors, and pressure
44 Benar
group.
General environment that involves sociocultural conditions, demographic conditions,
45 Benar
techonological conditions, and global conditions.
46 Benar Opportunities in SWOT Analysis is positive trends in external environmental factors.
47 Benar Threat in the SWOT Analysis is negative trends in external factors.
Strenghts in the SWOT Analysis is any activities the organization does well or any
48 Benar
unique resources that it has.
Weaknesses in the SWOT Analysis is activities does not do well or resources it needs
49 Benar
but does not posses.
Benchmarking is the search for the best practices among competitors or
50 Benar
noncompetitors that lead to their superior performance.
The quantitative forecasting techniques are preferred when manager have sufficient
51 Benar
hard data that can be used.
The quantitative forecasting techniques are preferred when manager have sufficient
hard data that can be used.
The qualitative forecasting techniques are following the judgment and opinions of
52 Benar
knowledgeable individuals to predict outcomes.
The qualitative forecasting techniques are following the judgment and opinions of
knowledgeable individuals to predict outcomes.
The qualitative forecasting techniques typically are used when precise data are
51 Benar
limited or hard to data obtain.
Centralization in organizational design describes the degree to which decision making
52 Benar
is concentrated at with upper levels of the organization.
Decentralization in organizational design describes the more that lower-level
53 Benar
employees provide input or actually make decisions.
Centralization in organizational design describes the more that lower-level employees
54 Salah
provide input or actually make decisions.
If top managers make the organization’s key decisions with little or no input from
55 Salah
below, then organization is centralized.
If top managers make the organization’s key decisions with little or no input from
56 Salah
below, then organization is decentralization.
Leadership is what leaders do. It’s the process of influencing a group to achieve
57 Benar
goals.
Situational leadeship theory s a contigency theory that focuses on followers’
58 Benar
readiness.
Transactional leadership is leaders who lead primarily by using social exchanges or
59 Benar
trasaction.
Transformational leadership is leaders who lead primarily by using social exchanges
60 Salah
or trasaction.
Transformational leadership is leaders who stimulate and inspire (transform)
61 Benar
followers to achieve extraordinary outcomes.
Transactional leadership is leaders who stimulate and inspire (transform) followers to
62 Salah
achieve extraordinary outcomes.
Legitimate power is the power a leader has a result of his or her position in the
63 Benar
organization.
64 Salah Expert power is the power a leader has a result of his or her position in the

2
 organization.
Coercive power is the power a leader has because of his or her ability to punish or
65 Benar
control.
66 Benar Expert power is influence that’s based on expertise, special skills, or knowledge.
67 Salah Legitimate power is influence that’s based on expertise, special skills, or knowledge.
68 Salah Coercive power is influence that’s based on expertise, special skills, or knowledge.
69 Benar Physiological need is a person’s need for food, drink, and other physical needs.
70 Salah Social need need is a person’s need for food, drink, and other physical needs.
Safety needs is a person’s needs for security and protection from physical and
71 Benar
emotional harm.
Social need is a person’s needs for affection, belongingness, acceptance, and
72 Salah
frienship.
Esteem need is a person’s need for internal factor such as self-respect, autonomy,
73 Benar
and achievement,, and external factors such as status, recognition, and attention.
Physicological need is a person’s need for internal factor such as self-respect,
74 Salah autonomy, and achievement,, and external factors such as status, recognition, and
attention.
Self-actualization is a person’s need to become what he or she is capable of
75 Benar
becoming.

Bagian II. Jawablah berdasarkan petunjuk di bawah ini (Bobot 1 Untuk Setiap Soal Yang
Dijawab Dengan Tepat).
a. Jika semua pernyataan 1, 2, 3 BENAR
b. Jika pernyataan 1 dan 3 BENAR
c. Jika pernyataan 2 dan 4 BENAR
d. Jika semua pernyataan BENAR
e. Jika semua pernyataan SALAH

No Answer Statement
Management functions involves:
1. Planning
76 d 2. Organizing
3. Actuating (Leading)
4. Controling
To ensure that goals are being met and that work is being completed as it should be,
manager must ...
1. manager must monitor and evaluate performance
77 d
2. manager must develop plans
3. manager must compare, and correcting work performance.
4. manager must establish strategies
Management strives for (the purposes of management):
1. Democrazy
78 c 2. High Efficiency
3. Participative
4. High Effectiveness
Management roles involves:
1. Interpersonal relationship roles
79 a 2. Informational roles
3. Decisional roles
4. Conditional roles
Managerial level involves:
1. First-line managers
80 a 2. Middle managers
3. The top managers
4. General manager
Historical background of management involves:
1. Early examples of management
81 d 2. Adam Smith
3. Industrial revolution
4. Scientific Management
Management theories involves:
1. Scientific management
82 b 2. General administrative theorists
3. Quantitative approach
4. Organizational behavior
83 a Specifc environment involves:
1. Customers
2. Suppliers

3
 3. Competitors
4. Pressure group
General environment involves:
1. Sociocultural conditions
84 a 2. Demographic conditions
3. Techonological conditions
4. Global conditions
The six key elements of organizational design involves:
1. Work specialization and departementalization
85 d 2. Chain of command and span of control
3. Centralization and decentralization
4. Formalization
Organic organization typically are used ...
1. Cross-functional teams
86 d 2. Free flow of information
3. Decentralization
4. Low formalization
Mechanistic organization typically are used ...
1. High specialization
87 d 2. Clear chain of command
3. Centralization
4. High formalization
The factors of external analysis of strategic management process involves:
1. Opportunities
88 e 2 Strengths
3. Threats
4. Weaknesses
The factors of internal analysis of strategic management process involves:
1. Opportunities
89 e 2 Strengths
3. Threats
4. Weaknesses
Components of a mission statement involves:
1. Customer and markets
90 d 2. Philosophy
3. Product and services
4. Concern for public image
Managers can choose one of three generic competitive strategies by Michael Porter
involves:
1. Cost leadership
91 a
2. Differentiation
3. Focus
4. Promotion Mix
Forecasting techniques fall into two categories are ... ... approach.
1. The quantitative forecasting techniques
92 b 2. The SWOT Analysis
3. The qualitative forecasting techniques
4. Benchmarking
Techniques for allocating resources of organization involves:
1. Budgeting
93 d 2. Scheduling
3. Breakeven Analysis
4. Linear programming
The approach of qualitative forecasting techniques typically are used ...
1. Jury of opinion
94 b 2. Sales force composition
3. Customer evaluation
4. Time series analysis
Barriers to effective interpersonal communication involves:
1. Filtering and Emotion
95 c 2. Informational overload
3. Defensiveness
4. Language and national culture
96 d What can managers do to overcome these barriers and be more effective
communicators?.
1. Use feedback
2. Simplify language
3. Listen Actively

4
 4. Constrain emotions
Direction of communication flow within an organization involves:
1. Downward communication
97 d 2. Upward communication
3. Lateral comunication
4. Diagonal communication
Communication process within an organization is often described as ...
1. Information
98 d 2. Formal communication
3. Data
4. Informal communication
What does the interpersonal communication process involve?.
1. A communication source or sender, and message
99 a 2. Enconding, the channel, and deconding
3. Receiver and feedback
4. Legal and security issues
What are the functions of communication?.
1. acts to control behavior
2. Encourages motivation
100 c
3. Provides a release to emotional expression of feelings and for fulfillment of social
needs.
4. Provides information
Human resources planning involve:
1. Recruitment
101 d 2. Selection
3. Identify and select competent of candidat (employee)
4. Decruitment
What external factors create that need for organizational change?.
1. Marketplace and labor markets
102 c 2. Governmental laws and regulations
3. Technology
4. Economic changes
What internal factors create that need for organizational change?.
1. Strategy
103 a 2. Workforce
3. Equipment
4. Employee attitudes
Types of organizational change include:
1. Structure
104 d 2. Technology
3. People
4. Information
Creating effective teams involve:
1. Clear goals, relevant skills
105 d 2. Mutual trust, unified commitment
3. Good communication and negotiating skills
4. Appropriate leadership, internal and external support
Maslow’s Hierarchy of Needs Theory involve:
1. Physiological needs
106 d 2. Safety needs
3. Social needs
4. Esteem needs and self-actualization needs
Herzberg’s two-factor theory involve:
1. Motivators (intrinsic factor)
107 b 2. Situational factor
3. Hygiene factors (extrinsic factor)
4. Leadership factor
The assumes Theory X according Douglas McGregor (1960) involve:
1. Worker have a little ambition,
108 d 2. Dislike work,
3. Want to avoid responsibility, and
4. Need to closely controlled to work effectively.
The assumes Theory Y according Douglas McGregor (1960) involve:
1. Workers can exercise self-direction,
109 a 2. Accept and actually seek out responsibility, and
3. Consider work to be a natural activity.
4. Low motivation
110 a Three-Need Theory according David McClelland (1961) involve:

5
 1. the need for achievement (nAch)
2. the need for power (nPow)
3. the need for affiliation (nAff)
4. the need for motivation(nMot)
d According to the Job Characteristics Model (JCM), any job can be described in core
dimensions, involve:
1. Skill variety
111 2. Task identity
3. Task significance
4. Autonomy and feedback

Designing motivating jobs involve:

1. Job enlargement
112 e 2. Job enrichment
3. Job characteristics model (JCM)
4. Job satisfaction
The University of Iowa stduies (conducted by Kurt Lewin and his associates) explored
thress leadeship styles, involve:
1. The autocratic style
113 d
2. The democratic style
3. The laissez-faire style leader
4. The servant leadership style
Ohio state studies identified style leadership involve:
1. Consideration behavior
114 a 2. Employee oriented behavior
3. Initiating structure behavior
4. Production oriented behavior
University of Michigan studies identified style leadership involve:
1. Consideration behavior
115 e 2. Employee oriented behavior
3. Initiating structure behavior
4. production oriented behavior
Fiedler’s contigency model, involve:
1. Relational oriented (leader-member relations)
116 c 2. Task oriented (task stucture)
3. Assumed leader’s style was fixed
4. Position power
Hersey and Blanchard’s situational leadership theory involve:
1. Telling (high task-low relationship)
117 d 2. Selling (high task-high relationship)
3. Participating (low task-high relationship)
4. Delegating (low task-high relationship)
Path goal model (Robert House, 1971;1974;1996) involve:
1. Directive leader
118 d 2. Supportive leader
3. Participative leader
4. Achievement-oriented leader
Five sources of leader power have been identified, involve:
1. Legitimate power
119 d 2. Coercive and reward power
3. Expert power
4. Referent power
Five sources of leader power have been identified, involve:
1. Directive leader
120 d 2. Supportive leader
3. Participative leader
4. Achievement-oriented leader

Bagian III. Menjodohkan pernyataan dengan pilihan jawaban yang tersedia (Bobot 1 Per Soal).
No Answer
121 Management roles
122 Management function
123 Managerial levels
124 The wealth of nations
125 Principal of management
“Doing things right”
126
127 “Doing the right things”
Statement
Interpersonal relationship, informational, and Decisional roles
Planning, Organizing, Actuating (Leading), and Controlling
Top managers, middle managers, and first-line managers
The Wealth of Nations
Principles of management
Getting the most output from the least amount of input
(efficiency)
Doing those work activities that help the organization reach its

6
 goals (effectiveness)
128 Efficiency Low resources waste
129 Effectiveness High goal attainment
130 Planning Defining goals, establishing strategies, and developing plans
131 Organizing Arranging and structuring work
132 Actuating (Leading) Working with and through people
133 Controlling Evaluating wheter things are going as planned
When managers develop or change the organizational structure,
they’re enggaged in .. ..., a process that involves decision about
134 Organizational design key elements (work specialization, departementalization, chain of
command, span of control, centralization and decentralization,
and formalization).
An organizational structure made up of separate business units or
135 Divisional structure
divisions.
136 Mechanistic organization An organizational design that’s rigid and tightly controlled.
137 Organic organization An organizational design that’s highly adaptive and flexible.
The degree to which tasks in an organization are divided into
138 Work specialization
separate jobs.
139 Departementalization The basic by which jobs are grouped together.
Chain of command The line of authority extending from upper organizational level to
140
the lowest level, which clarifies who reports to whom.
Number of employees that a manager can efficiently and
141 Span of control
effectively manage.
Job description & job
142 The information developed in job analysis.
specification
143 Threat of new entrants How likely is it that new competitors will come into the industry.
Threat of substitutes How likely is it that that other industries’s product can be
144
substituted for our industr’s products.
145 Bargaining power of buyers How much bargaining power do buyers (customers) have.
146 Bargaining power of supliers How much bargaining power do suppliers have.
147 Current rivalry How intense is the rivalry among current industry competitors
The cost leadership strategy When an organization competes on the basic of having the lowest
148
cost in its industry, it’s following ... ... strategy
A company that competes by offering unique products that are
149 The differentiation strategy
widely valued by customers is following ... ... strategy.
Managers select a market segment in an industry and attempt to
150 The focus strategy exploit it rather than serve the board market is following ... ...
strategy.
Communication that follows official chain of command and is
151 Formal Communication
needed to do one’s job.
Communication that is not defined by organization’s structural
152 Informal Communication
hierarchy.
153 Upward communication Communication that flows upward fro employees to managers.
Communication that takes place among employees on the same
154 Lateral communication
organizational level.
Communication that cuts across both work area and
155 Diagonal communication
organizational level.
156 Communication The transfer and understanding of meaning (information)
An organization that represents workers and seek to protect their
157 Employee Labor Unions
interests through collective bargaining.
158 Change agents As a catalyst and to manage the organizational change process.
Concerned more specifically with studying how people act at work
159 Organizational behavior
within organization.
The degree to which an employee identifies with a particular
160 Organizational commitment organization and its goals and wishes to maintain membership in
organization.
The degree to which an employee identifies with his or her job,
161 Job involvement actively participates in it, and considers his or her job
performance to be important to his or her self-worth.
162 Job satisfaction An employee’s general attitude toward his or her job.
163 Employee productivity A performance measure of both efficiency and effectiveness.
The process by which a person’s efforts are energized, directed,
164 Motivation
and sustained toward attaining a goal.
Maslow’s Hierarchy of Needs
165 Physiological; safety; social; esteem; self-actualization needs.
Theory
166 Herzberg’s two-factor theory Also called motivation-hygiene theory.
167 Dougla McGregor (1960) Theory X and Y

7
 A negative view of people that assumes workes have little
168 Theory X ambition, dislike work, want to avoid responsibility, and need to
be closely controlled to work effectively.
A positive view that assumes workers can exercise self-direction,
169 Theory Y accept and actually seek out respinsibility, and consider work to
be a natural activity.
170 David McClelland (1961) Three-Need Theory
The voluntary and involuntary permanent wothdrawal from an
171 Turnover
organizational
As two or more interacting and interdependent individual who
172 A group
come together to achieve specific goals.
Group whose members work intensely on specific, common goal
173 Self-managed work team using their positive synergy, individual and mutual accountability,
and complementary skills.
A type of work team that operates without a manager and is
174 Cross-functional team
responsible for a complete work process or segment.
175 A work team composed of individuals from various specialties.
Consequences immediately following a behavior that increase the
176 Reinforcement theory probability that the behavior will be repeated. The theory that
behavior is a function of its consequences.
The theory that an employee compares his or her job’s input-
177 Equity theory outcomes ratio with that of relevant others and then correct any
inequity.
Someone who can influence others and who has managerial
178 Leader
authority.
179 Ohio state study Consideration and initiating structure behavior.
180 University of michigan study Employee-oriented and production-oriented behaviors
The process of monitoring, comparing, and correcting work
181 Controlling
performance.
The accumulated end result of all the organization’s work
182 Organizational performance
activities.
The overall output of goods or services produced divided by the
183 Productivity
inputs needed to generate that output.
The process of managing the sequence of activities and
184 Value chain management
information along the entire product chain.
The process of starting new businesses, generally in response to
185 Entrepreneurship
opportunities.

8
 List of The Answer (Bobot 1)

Management roles Employee Labor Unions Threat of new entrants

Management functions
Managerial levels
The Wealth of Nations
Principles of management
“Doing things right”
“Doing the right things”
Efficiency
Effectiveness
Planning
Organizing
Actuating (Leading)
Controlling
Organizational design
Divisional structure
Mechanistic organization
Organic organization
Work specialization
Departementalization
Chain of command
Span of control
Job description & job specification
Change agents
Organizational behavior
Organizational commitment
Job involvement
Job satisfaction
Employee productivity
Motivation
Maslow’s Hierarchy of Needs
Theory
Herzberg’s two-factor theory
Dougla McGregor (1960)
Theory X
Theory Y
David McClelland (1961)
Turnover
A group
Self-managed work team
Cross-functional team
Threat of substitutes
Bargaining power of buyers
Bargaining power of supliers
Current rivalry
The cost leadership strategy
The differentiation strategy
The focus strategy
Formal Communication
Informal Communication
Upward communication
Lateral communication
Diagonal communication
Communication
Reinforcement theory
Equity theory
Leader
Ohio state study
University of michigan study
Controlling
Organizational performance
Productivity
Value chain management
Entrepreneurship

Bagian IV. Essay Methods

No Questions Bobot
1 Explain Fayol’s 14 Principles of Management! 5
2 Explain importance management skills of depending on managerial level. 5
Explain factors that influence the amount of centralization and decentralization in 5
3
organizational design!
4 Explain organizational stakeholders! 5
5 Explain define organizational culture and what effect does it have on manager! 5
6 Explain how organizations go international! 5
7 Explain types of international organizations! 5
Explain global perspective then manager working in a global business world (three global 5
8
attitudes)!
9 What are the challenges of doing business globally? 5
10 Why would organizations want to “go green”? 5
11 How do managers make decisions? 5
12 What is planning and why is it important for all managers? 5
13 What is strategic management and why is it importants for all managers? 5
14 Manager assess an industry’s attractiveness using these five factor, explain it! 5
15 Explain the strategic management process! 5
16 What is benchmarking and why is it important for strategic planning? 5
17 Explain the six key elements of organizational structure! 5
18 What is communication and describe element of the interpersonal communication process? 5
19 Explain barriers to effective interpersonal communication! 5
20 Why human resources management (HRM) is important for all manager? 5
21 What factor create the need for change? 5
22 What factor affect group behavior? 5
23 Explain Maslow’s hierarchy of needs theory 5
24 Explain Theory X and Theory Y 5
Managers can implement controls before an activity begins, during the time the activity is 5
25
going on, and after the activity has been completed.

Jawaban :

1. Fayol’s 14 Principles of Management

9
 - Division of Work. When employees are specialized, output can increase
because they become increasingly skilled and efficient.
- Authority. Managers must have the authority to give orders, but they must
also keep in mind that with authority comes responsibility.
- Discipline. Discipline must be upheld in organizations, but methods for
doing so can vary.
- Unity of Command. Employees should have only one direct supervisor.
- Unity of Direction. Teams with the same objective should be working
under the direction of one manager, using one plan. This will ensure that
action is properly coordinated.
- Subordination of Individual Interests to the General Interest. The interests
of one employee should not be allowed to become more important than
those of the group. This includes managers.
- Remuneration. Employee satisfaction depends on fair remuneration for
everyone. This includes financial and non-financial compensation.
- Centralization. This principle refers to how close employees are to the
decision-making process. It is important to aim for an appropriate balance.
- Scalar Chain. Employees should be aware of where they stand in the
organization's hierarchy, or chain of command.
- Order. The workplace facilities must be clean, tidy and safe for employees.
Everything should have its place.
- Equity. Managers should be fair to staff at all times, both maintaining
discipline as necessary and acting with kindness where appropriate.
- Stability of Tenure of Personnel. Managers should strive to minimize
employee turnover. Personnel planning should be a priority.
- Initiative. Employees should be given the necessary level of freedom to
create and carry out plans.
- Esprit de Corps. Organizations should strive to promote team spirit and
unity

2. Management skills :
- Technical skills
Technical skills are most important for the first-level managers. Whet
it comes to the top managers, these skills are not something with high
significance level. As we go through a hierarchy from the bottom to
higher levels, the technical skills lose their importance.
- Conceptual skills
Conceptual skills are vital for top managers, less critical for mid-level
managers, and not required for first-level managers. As we go from a
bottom of the managerial hierarchy to the top, the importance of these
skills will rise.
- Human or interpersonal management skills.
Human or interpersonal management skills present a manager’s
knowledge and ability to work with people. One of the most

10
 critical management tasks is to work with people. Without people,
there will not be a need for the existence of management and
managers.

3. Factors affecting Centralisation/Decentralisation :

1. History and Nature of the Organisation: Centralisation or
decentralization of authority depends on the manner, in which the organisation
has built up over time i.e., history of the organisation. As organisation that has
been primarily built by an individual’s efforts tends to have a highly
centralized structure. Organizations that have grown through a number of
mergers, amalgamations and consolidations tend to stay decentralized.
2. Availability of Competent Managers: The degree of decentralization in
an organisation is influenced by the availability of competent managers.
Decentralisation of authority may not be possible if the managers of the
organisation are not talented enough, and if they can’t handle the problems of
decentralized units.
3. Size of the Organisation: The size of the organisation is another factor that
effects decentralization. In a large organisation, numerous decisions have to be
taken at different places. Therefore, it becomes difficult to coordinate the
functions of different departments. To avoid slow decision-making and to
bring down the costs associated with managing a large organisation, authority
should be decentralized. Decentralisation enables the organisation to operate
as a group of small independent units thus reducing the workload of managers,
reducing the amount of paperwork and improving the quality of decisions. 
4. Geographical Dispersion: Decentralisation is effective for the
organizations, which have operations in different locations. Top-level
executives often find it impossible to keep track of the details of operations in
scattered locations. In such cases, the control exercised by the top
Management from the headquarters may be ineffective, because they are
unlikely to know the local conditions or problems. Therefore, such
geographically diverse units can be decentralized and managers from these
units made responsible for their operations and profits.
5. Technical Complexity of Tasks: Technology has changed rapidly over the
years and there is a growing need for specialists who can understand it. Since
it is impossible for the top-level Management t keep track of all technological
advances and handle technology-related issues, it becomes necessary to
delegate authority for carrying out technical projects to experts in the
concerned fields. In such cases, organizations need to follow a decentralized
approach.
6. Time frame of Decisions: In order to survive in a highly competitive
environment, every organisation has to capitalize on the available
opportunities. In a decentralized organisation, the authority to make decisions
lies with the head of that particular unit. Therefore, decisions can be made
faster. The decisions are made closer to the scene of action, and are therefore,
timely and accurate. 
7. The Importance of a Decision: The importance of a decision to an
organisation is also a crucial factor that influences the decentralization of
authority. Generally, decisions, which involve high risks and costs, are made

11
 by the top management, while the decisions involving routine and low-risk
activities are delegated to the subordinates.
8. Planning and Control Procedures: If an organisation has clear objectives
and a specific plan to achieve them, a superior would be willing to allow
subordinates to make decisions independently. The assigning of functions
such as organizing, staffing, directing and controlling to managers at different
levels depends on the manner in which they have been allocated at the time of
designing the organizational plans and also on the extent to which these plans
have been implemented. When lower level managers are allowed to
participate in the planning process, decentralization is facilitated.

4. Organizational stakeholders :
Organizations exist because of their ability to create valued goods and services
and which yield acceptable outcomes for various groups of stakeholders,
people who have an interest, claim, or stake in the organization, in what it
does, and in how well it performs.1 In general, stakeholders are motivated to
participate in an organization if they receive inducements that exceed the
value of the contributions they are required to StakeholdersPeople, groups or
other organizations who have an interest, claim, or stake in an organization, in
what it does, and in how well it performs. make.2 Inducements are rewards
such as money, power, the support of beliefs or values, and organizational
status. Contributions are the skills, knowledge, and expertise that
organizations require of their members during task performance.

5. Organizational culture and the effect on manager.

Organizational culture is defined as the underlying beliefs, assumptions,

values and ways of interacting that contribute to the unique social and
psychological environment of an organization. Organizational culture includes
an organization’s expectations, experiences, philosophy, as well as the values
that guide member behavior, and is expressed in member self-image, inner
workings, interactions with the outside world, and future expectations. Culture
is based on shared attitudes, beliefs, customs, and written and unwritten rules
that have been developed over time and are considered valid. A manager's role
in a company's culture depends on how the business wants the manager to
interact with other employees and how much authority the business gives the
manager.

- Manager as Disciplinarian. A small business' organizational culture may

force a manager into the role of disciplinarian to police and correct
employee behavior. A manager functioning in this role may issue verbal or
written warnings to employees not operating according to the company's
mission statement or operational standards and conduct performance
reviews to make employees aware of what areas require improvement. A
manager in a disciplinarian role may have a difficult time establishing

12
 interpersonal relationships with other employees because workers see the
manager as an authority figure first and a coworker a distant second.
- Interaction With Employees. Conversely, an organization with a
disseminated leadership culture where each employee takes part in a
company's business strategy may install managers in roles
indistinguishable from floor-level employees. A small business with only a
handful of employees can accomplish this easily. A disseminated
leadership culture allows managers to build better working relationships
with employees while still supervising employee performance and
reporting to company owners. Managers in this model achieve a more
relaxed form of interaction with subordinates because employees see them
as actual human beings and not simply the manifestation of the employer's
will.
- Setting the Example. Regardless of the organizational culture, a manager
must serve as the model for that culture for other employees to emulate.
For example, a small-business owner wishing to see more employee
teamwork must have a manager who is able to work directly with
employees and foster a team atmosphere. Since the culture of a business
may shift over time, this also requires a manager to be versatile and easily
adaptable to change. The quicker a manager can illustrate the proper
model of a company's desired culture, the faster employees will adopt it.
- Rewarding Proper Behavior. A manager's role within a small business'
culture may require her to reward employees who properly display the
company's desired qualities. Rewards can take the form of simple praise
within the workplace or may include higher grades on performance
reviews, which can lead to promotions and higher rates of pay. Rewarding
employees for perpetuating proper organizational culture shows workers
that owners and management value each worker's place in the company
and are serious about maintaining standards.

6. As organizations go global, they often use different approaches. At first,

managers may want to get into a global market with minimal investment. At
this stage, they may start with global sourcing (also called global outsourcing),
which is purchasing materials or labor from around the world wherever it is
cheapest. The goal: take advantage of lower costs in order to be more
competitive. For instance, Massachusetts General Hospital uses radiologists in
India to interpret CT scans. Although global sourcing may be the first step to
going international for many companies, they often continue using this
approach because of the competitive advantages it offers. However, during the
last economic crisis, many organizations reconsidered their decisions to source
globally

7. Types of international organizations.

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 - Inter-governmental organizations (IGOs). IGOs form when
governments make an agreement or band together. Only governments
belong to IGOs, which are sometimes also known by the acronym IO
(for international organization). The United Nations (UN), the North
Atlantic Treaty Organization (NATO), the World Trade Organization
(WTO), and the European Union (EU) are all examples of IGOs.
- Nongovernmental Organizations (NGOs). Unlike governmental
organizations, NGOs are made up of individuals, not businesses or
governments. NGOs serve a variety of functions and represent numerous
interests. Organizations that are not affiliated with governments but that
nevertheless play an important role in international politics are
called nongovernmental actors. Not all NGOs have a positive impact on
global politics. Although Amnesty International has helped defend human
rights, for example, the international terrorist organization al Qaeda has
killed civilians in an effort to cripple economies and topple governments.
Since the end of World War II, nongovernmental actors have become
more important in the global arena.

8. Global perspective then manager working in a global business world

(three global attitudes).
- Ethnocentric attitudw, the parochialistic belief that the best work
approaches and practices are those of the home country. Managers
with an ethnocentric attitude believe that people in foreign countries do
not have the needed skills, expertise, knowledge, or experience to
make the best business decisions as people in the home country do.
They wouldn't trust foreign employees with key decisions.
- Polycentric attitude, the view that managers in the host country know
the best work approaches and practices for running their business.
Managers with a polycentric attitude view every foreign operation as
different and hard to understand. Thus, these managers are likely to
leave their foreign facilities alone and let foreign employees figure out
how best to do things.
- Geocentric attitude, this is a world-oriented view that focuses on using
the best approaches and people from around the globe. Managers with
this type of attitude believe that it's important to have a global view
both at the organization's headquarters in the home country and in the
various foreign work facilities. Major issues and decisions are viewed
globally by looking for the best approaches and people regardless of
origin.

9. The challenges of doing business globally.

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- The Physical Distance. Although you may have the Internet and
telephones to communicate overseas, nothing is quite the same as being
there in person to talk to your prospects and your distribution partners, not
to mention costs related to freight, logistics and shipping. At some point,
you will have to figure out the costs involved in doing business “long
distance” in the regions where you want to expand.
- Unfamiliar Cultures. Do you know the most common behaviors in the
country you are looking to expand into? What about the way in which
people interact with each other in a social setting? Overcoming this
cultural challenge is important for taking your business global so that you
can assimilate with the people who will become your customers.
- Mastering Marketing. Learning the best way to reach your prospective
customers is an important element of taking your business global. This
will allow you to establish the kind of customer base that is necessary to
be successful with globalization in the long term. One key ingredient to
successful global marketing is transcreation.
- Organizational Communication. The way team members handling your
globalization efforts communicate, report, and track their efforts will have
a big impact on how well you can succeed at taking your business into
foreign markets. You need to have an effective system and set of protocols
in place so that company leadership can keep tabs on what is going on
with your international expansion since they will not be there to manage in
person.
- Tariffs and Export Fees. Most countries have some type of tariff or fee that
is charged to companies bringing goods into their country. You need to
know about these tariffs so you can incorporate them into the financial
planning element of your globalization plans. Also remember the legal
side of globalization: you may have to pay different kinds of fees
depending on the shipping and logistics laws in place in that specific
country.
- Human Resources. When taking your business global, it is important to
consider how you will meet the manpower requirements for operating in a
foreign country. You may need to hire new team members which will
require an additional investment. If you decide to send some of your
existing team members to new global markets, you have to account for the
roles that they will leave vacant.
- Choosing the Right Countries. You need to have done enough research to
understand where the best place to expand is. If there are several options,
analyze the relative benefits and drawbacks of each country to determine
which markets are most ideal for globalization.
- Properly Adapting Documents and Content to the Culture. You have to
come up with a way your prospective customers can read and understand

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 your sales materials, instructions, and other documentation that is
important for your business. Ideally, you will be able to do more than just
translate them; you will have them adapted to the culture so that they are
optimally understood and relatable by locals.

10. Why would organizations want to go green.

Going green may seem to be the latest trend, but it is a trend with a variety
of benefits for business owners. Applying green processes to the
workplace creates a healthy environment for employees, reduces
unnecessary waste and recognizes the role that businesses play in leading
the way for social change. For the business that is thinking about going
green, a variety of reasons exist to take the plunge.
- Legal and Tax Advantages. Going green has many practical advantages.
States such as California have cracked down on emissions allowances, so
companies such as FedEx and General Electric have incorporated green
technology in order to reduce emissions and comply with state standards.
Tax credit and incentives at the state level are also available. Florida, for
example, allows companies that produce and sell electricity from a
renewable energy facility to take a corporate income tax credit. Florida
businesses are also eligible for a sales tax exemption for using solar energy
systems, equipment, machinery and other renewable energy technologies.
The Solar Energy System Incentives Program allows Florida companies to
take rebates, and the Renewable Energy and Energy-Efficient
Technologies Grants Program provides grants for Florida companies using
solar and renewable energy sources to run the business. Additionally, the
IRS allows businesses that use company cars such as hybrids to take an
alternative motor vehicle credit on federal taxes. The federal government
also allows businesses to take a tax credit of up to 30 percent for the use of
solar and wind energy.
- Reduced Waste. Going green can improve the overall efficiency of a
business. Reducing unnecessary waste can trim operating costs for the
business, for example. Turning off lights in vacant offices can save energy,
save on utility costs and increase the company’s bottom line. Printing less
cuts down on paper usage, and can lower the budget spent on printing
materials. Refilling ink cartridges instead of throwing them away is
another money-saving practice, since it saves money on the purchase of
new cartridges, and it also reduces the amount of plastic thrown away
from the cartridge and packaging. Offering hybrid vehicles to company
employees can also save money for companies that refund employee
mileage on fuel prices.
- Improved Workplace. Providing green options within a company can offer
overall workplace improvements. Green cleaning supplies can help

16
 employees who suffer from respiratory and other health-related conditions,
because green products contain fewer chemicals–such as sodium
hypochlorite and nitrobenzene–that are connected to physical problems.
Some companies have taken going green even a step further, by converting
leftover food waste from the lunch cafeteria into methane to supply the
building with energy.
- Public Response. While public response alone is not necessarily the best
motivation for going green, it might be a good side effect. With green
initiatives increasing in popularity, economic studies have shown that
companies utilizing green technology and selling green products are
seeing an increase in profits. Companies such as Wal-Mart and Target
have incorporated green changes such as composting and recycling,
changing transportation routes to save gas, reducing packaging, and
stocking their shelves with greener products. As a result, these companies
have seen customers respond positively to the changes, with green product
sales alone jumping somewhere around 20 percent as of 2010.
- Sustainability. The larger value of going green relates to maintaining the
health of the environment. Utilizing sustainable methods can prevent the
waste of natural resources, helping reduce the risk of depletion on the long
run. Going green can be as simple as making sure lights are turned off in
unused offices–thus preventing the waste of electricity–or as elaborate as
utilizing alternative forms of energy (i.e., solar or wind energy). In either
case, the goal of making these changes is to preserve natural resources by
using those that are sustainable, or by taking measures to reduce the
amount consumed.

11. How do managers make decisions.

Managers are constantly called upon to make decisions in order to solve

problems. Decision making and problem solving are ongoing processes of
evaluating situations or problems, considering alternatives, making choices,
and following them up with the necessary actions. The entire decision‐making
process is dependent upon the right information being available to the right
people at the right times. The decision‐making process involves the following
steps:

- Define the problem.

- Identify limiting factors.
- Develop potential alternatives.
- Analyze the alternatives.
- Select the best alternative.
- Implement the decision.
- Establish a control and evaluation system.

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12. What is planning and why is it important for all managers.
Planning helps an organization chart a course for the achievement of its goals.
The process begins with reviewing the current operations of the organization
and identifying what needs to be improved operationally in the upcoming
year. From there, planning involves envisioning the results the organization
wants to achieve, and determining the steps necessary to arrive at the intended
destination--success, whether that is measured in financial terms, or goals that
include being the highest-rated organization in customer satisfaction.
- Efficient Use of Resources. All organizations, large and small, have
limited resources. The planning process provides the information top
management needs to make effective decisions about how to allocate
the resources in a way that will enable the organization to reach its
objectives. Productivity is maximized and resources are not wasted on
projects with little chance of success.
- Establishing Goals. Setting goals that challenge everyone in the
organization to strive for better performance is one of the key aspects
of the planning process. Goals must be aggressive, but realistic.
Organizations cannot allow themselves to become too satisfied with
how they are currently doing--or they are likely to lose ground to
competitors. The goal setting process can be a wake-up call for
managers that have become complacent. The other benefit of goal
setting comes when forecast results are compared to actual results.
Organizations analyze significant variances from forecast and take
action to remedy situations where revenues were lower than plan or
expenses higher.
- Managing Risk And Uncertainty. Managing risk is essential to an
organization’s success. Even the largest corporations cannot control
the economic and competitive environment around them. Unforeseen
events occur that must be dealt with quickly, before negative financial
consequences from these events become severe. Planning encourages
the development of “what-if” scenarios, where managers attempt to
envision possible risk factors and develop contingency plans to deal
with them. The pace of change in business is rapid, and organizations
must be able to rapidly adjust their strategies to these changing
conditions.
- Team Building. Planning promotes team building and a spirit of
cooperation. When the plan is completed and communicated to
members of the organization, everyone knows what their
responsibilities are, and how other areas of the organization need their
assistance and expertise in order to complete assigned tasks. They see
how their work contributes to the success of the organization as a

18
 whole and can take pride in their contributions. Potential conflict can
be reduced when top management solicits department or division
managers’ input during the goal setting process. Individuals are less
likely to resent budgetary targets when they had a say in their creation.
- Creating Competitive Advantages. Planning helps organizations get a
realistic view of their current strengths and weaknesses relative to
major competitors. The management team sees areas where
competitors may be vulnerable and then crafts marketing strategies to
take advantage of these weaknesses. Observing competitors’ actions
can also help organizations identify opportunities they may have
overlooked, such as emerging international markets or opportunities to
market products to completely different customer groups.

13. What is strategic management and why is it importants for all

managers.
Strategic planning is important to an organization because it provides a
sense of direction and outlines measurable goals. Strategic planning is a
tool that is useful for guiding day-to-day decisions and also for evaluating
progress and changing approaches when moving forward. In order to make
the most of strategic planning, your company should give careful thought
to the strategic objectives it outlines, and then back up these goals with
realistic, thoroughly researched, quantifiable benchmarks for evaluating
results.
- The Mission. Strategic planning starts with defining a company
mission. A mission is important to an organization because it
synthesizes and distills the overarching idea linking its practical
strategies, enabling management and employees to align the specifics
of their actions and decisions with a clearly defined vision and
direction. Define your strategic mission in a way that is broad enough
to guide both management and employees, and narrow enough to
focus their efforts. "To help humanity," is too broad a mission, even
for a nonprofit. "To feed the hungry by connecting home gardeners
with food banks," is a mission that is both general and actionable.
- Setting Goals. The nuts and bolts of the strategic planning process are
expressed in measurable goals. Measurable goals set specific, concrete
objectives expressed in terms of quantities and timelines. Measurable
goals are important to an organization because they enable managers
and employees to evaluate progress and pace developments. "To grow
substantially during the next few years" is not a measurable goal, but
"To increase sales by 30 percent during the upcoming year" provides a
concrete objective to be achieved in a specific time frame.

19
 - Evaluating Progress. Strategic objectives are of necessity based on the
best information you have at the time and your most realistic
assessments of what your company can achieve. Organizations also
benefit from building a stage into the strategic planning process that
involves evaluating goals and progress after an elapsed period of time
in light of the company's success in achieving these goals and
developments that have arisen in the interim. For example, if you plan
to grow your hardware store business 20 percent during a specific
year, but a formidable competitor opens a superstore down the road,
you'll probably redefine your objectives and evaluate progress in
terms of preserving market share.
- The Strategic Planning Process. The process of strategic planning can
be as important to an organization as the results. Strategic planning
can be an especially valuable process when it includes employees in
all departments and at all levels of responsibility thinking about how
their activities and responsibilities fit into the larger picture, and about
their potential contributions.

14. .Manager assess an industry’s attractiveness using these five factor,

explain it.
- Competitive Rivalry. One important force that Porter describes is the
degree of rivalry between existing companies in the market. If there
are more companies competing with each other, the resulting
competitive pressure will mean that prices, profits and strategy will be
driven by it.
- Threat of new Entrants. The competitive threat to a company’s
business may not only be from existing players in the market but also
from potential new entrants into the market place. If an industry is
profitable, or attractive in a long term strategic manner, then it will be
attractive to new companies. Unless there are barriers to entry in
place, new firms may easily enter the market and change the dynamics
of the industry.
- Threat of Substitutes. Within the framework defined by Porter,
substitute products are those that exist in another industry but may be
used to fulfill the same need. The more substitutes that exist for a
product, the larger the company’s competitive environment and the
lower the potential for profit. An example of this is that for a boxed
juice producer, fresh juice, water and soft drinks are all substitutes
though they exist in separate categories.
- Bargaining Power of Buyers. When buyers have the power to affect
prices in an industry, it becomes an important factor to consider for a
company. Buyers tend to have power over an industry if they are

20
 important to the company, this may be if the industry is such that
buyers either buy in bulk, or can easily switch to another supplier. A
limited number of strong buyers may be able to exert significant
control over a seller. In addition, if a product is similar to its
competitor with little or no differentiation, then there are chances that
the company may need to let the supplier dictate terms in order to
avoid losing the customer.
- Bargaining Power of Suppliers. Suppliers provide the raw material
needed to provide a good or service. This means that there is usually a
need to maintain strong steady relationships with suppliers.
Depending on the industry dynamics, suppliers may be in the position
to dictate terms, set prices and determine availability timelines.
Powerful suppliers may be able to increase costs without affecting
their own sales volume or reduce quantities that they sell.

15. Explain the strategic management process.

- Environmental Scanning- Environmental scanning refers to a process
of collecting, scrutinizing and providing information for strategic
purposes. It helps in analyzing the internal and external factors
influencing an organization. After executing the environmental
analysis process, management should evaluate it on a continuous basis
and strive to improve it.
- Strategy Formulation- Strategy formulation is the process of deciding
best course of action for accomplishing organizational objectives and
hence achieving organizational purpose. After conducting
environment scanning, managers formulate corporate, business and
functional strategies.
- Strategy Implementation- Strategy implementation implies making the
strategy work as intended or putting the organization’s chosen strategy
into action. Strategy implementation includes designing the
organization’s structure, distributing resources, developing decision
making process, and managing human resources.
- Strategy Evaluation- Strategy evaluation is the final step of strategy
management process. The key strategy evaluation activities are:
appraising internal and external factors that are the root of present
strategies, measuring performance, and taking remedial / corrective
actions. Evaluation makes sure that the organizational strategy as well
as it’s implementation meets the organizational objectives.

16. What is benchmarking and why is it important for strategic planning.

Strategic planning requires an honest assessment of the organization’s
current state and the external business environment to identify gaps and

21
 pinpoint ways to improve performance and meet goals. Benchmarking is
one way an organization can collect the quantitative and qualitative
information it needs for these assessments. This infographic looks at the
common practices and reason for using benchmarking to support strategic
planning efforts. Benchmarking is the process of comparing what your
company is doing with what the best performing company in your industry
is doing. Process benchmarking, one of three types of benchmarking,
compares operational processes. Performance benchmarking compares
product lines, marketing and sales to determine how to increase revenues.
These are more short-term in their scope and produce quick results.
Strategic benchmarking takes a long-term view of company direction
relative to the future strategies of competing companies.

17. Six key elements of organizational structure.

Organizational design is best defined as "the process of aligning an
organization's structure with its mission," according to business experts at
Mind Tools. Companies have specific goals and objectives toward which
they work. They divide projects, tasks and responsibilities in ways that are
most effective in achieving these goals. Specific employees must oversee
and control the flow of work to meet crucial project deadlines. Companies
usually identify six key elements when deciding how to design their
organization.
- Departmentalization. One key element of organizational design is
departmentalization. Companies usually group their companies into
different departments. These departments usually specialize in certain
areas to provide various types of expertise to the organization. Two
common types of departmentalization are functional and product
departmentalization. Functional structures are when companies center
departments around functions, such as marketing, finance, accounts
payable and engineering. Product structures are used by companies
that have many extensive product lines, including department stores
and high-tech companies. Departments are divided by product
categories, including housewares, sporting goods and hardware, for
example.
- Hierarchy of Authority. A company would accomplish little without a
hierarchy of authority. A hierarchy of authority determines who is in
charge of certain elements and who their direct reports are, according
to professor Craig W. Fontaine of Northeastern University's College
of Business Administration. A hierarchy of authority ensures that
every director, manager or employee is held accountable for specific
projects or tasks. The CEO or chief executive officer usually sits atop
the hierarchy in most companies.

22
 - Span of Control. Span of control is the number of people in which
managers, directors or high-level executives are in charge. A
marketing director who oversees the work of five managers in his
department has a span of control of five people. Each manager may, in
turn, be responsible for the work of several analysts or coordinators.
Span of control can vary in size among companies. Managers are
usually in charge of fewer employees in smaller companies versus
larger corporations.
- Geography. Geography is another important element of organizational
design. Smaller companies may sell their products on a local or
regional basis. They typically start in markets within their own state,
expanding to other areas as profits increase. Certain geographic areas
may be more practical for smaller companies. For example, a
manufacturer of surfboards would likely market to customers who live
near oceans.
- Customers. Companies also align their organizations to better service
specific customers. A small software company, for example, may sell
financial software to consumers, corporations, banks and hospitals.
Software implementation and set-up may be different in each type of
company. Therefore, certain account executives and customer service
reps may required for each type of customer.
- Special Projects. Companies sometimes design their organizational
structure around special projects. These projects may run for short
durations, such as three months to a year. For example, a small
consumer products company introducing a new line of gluten-free
breads may temporarily assign certain employees from different
departments to spearhead the efforts. The project team may then be
dispersed after the product has sold successfully for a while.

18. What is communication and describe element of the interpersonal

communication process.
Communication process as such must be considered a continuous and
dynamic inter-action, both affecting and being affected by many variables.
- Sender. The person who intends to convey the message with the
intention of passing information and ideas to others is known as
sender or communicator.
- Ideas. This is the subject matter of the communication. This may be an
opinion, attitude, feelings, views, orders, or suggestions.
- Encoding. Since the subject matter of communication is theoretical
and intangible, its further passing requires use of certain symbols such
as words, actions or pictures etc. Conversion of subject matter into
these symbols is the process of encoding.

23
 - Communication Channel. The person who is interested in
communicating has to choose the channel for sending the required
information, ideas etc. This information is transmitted to the receiver
through certain channels which may be either formal or informal.
- Receiver. Receiver is the person who receives the message or for
whom the message is meant for. It is the receiver who tries to
understand the message in the best possible manner in achieving the
desired objectives.
- Decoding. The person who receives the message or symbol from the
communicator tries to convert the same in such a way so that he may
extract its meaning to his complete understanding.
- Feedback. Feedback is the process of ensuring that the receiver has
received the message and understood in the same sense as sender
meant it.

19. Explain barriers to effective interpersonal communication.

- Psychological Barriers. Psychological barriers may include
shyness or embarrassment. Sometimes, a person may present herself
as being abrupt or difficult when she may actually be nervous. One
person's stereotyped views of the other party or the group he belongs
to may also provide a barrier to communication. If she is already
prejudiced before meeting him, this will cause a barrier.
- Cultural Barriers. Acceptable styles of communication vary
between cultures. In some societies physical gestures are extravagant,
and touch is more acceptable. In these societies, it is generally
acceptable to hug and touch a person's arm when you are speaking to
him. In other societies this would be unacceptable. Some religions
have a taboo about members of the opposite sex communicating and
particularly touching. Casual hugging and kissing would be
completely unacceptable.
- Language Barriers. A communication barrier may be present
because the parties do not share a common language. Interpreters and
translators may be used to good effect in these circumstances. If a
person is deaf or visually impaired, this presents an obvious barrier
that needs to be addressed prior to the meeting. Speech impediments
or dysphasia as a result of a stroke or other brain problem can present
a barrier. The use of jargon and over-complicated language creates
barriers to communication.
- Environmental Barriers. Environmental barriers to communication
can include noise and lack of privacy. An environment which is too
hot or cold will not be conducive to effective communication. Some

24
 places of business are busy with many distractions, such as constantly
ringing telephones and other messaging systems.

20. Why human resources management (HRM) is important for all

manager.
This is a function within an organisation concentrated on
recruiting, managing and directing people who work in it. Human
Resource Management deals with issues related to compensation,
performance management, organisation development, safety, wellness,
benefits, employee motivation, training and others. HRM plays a strategic
role in managing people and the workplace culture and environment. If
effective, it can contribute greatly to the overall company direction and the
accomplishment of its goals and objectives.
More and more companies seek the outsourcing services of HR
recruitment companies. The focus on HRM is now moved to the strategic
utilisation of employees and the measurable impact of employee programs
over business. Nowadays successful companies need to be adaptive,
resilient, quick to change direction and customer-centered. Within such an
environment the effectiveness of HRM is crucial to business success. HR
professionals establish systems for performance development, career
succession planning and employee development. This keeps people
motivated, happy, personally engaged and contributing to company
success. Furthermore the HR professional helps the development of
organisational culture and climate in which employees have the
competency, concern and commitment to serve customers well.
Experience is one of the best ways to learn the inside out of any
specific area, but attending an appropriate HR course will give an
excellent starting point of your future development. It is important to pick
a program, well adjusted to the current trends in Human Resources
Management. Otherwise you may gain knowledge, which is not applicable
to the current business environment. Griffith College has designed a HR
course to provide participants with the appropriate skills and knowledge
essential for effective human resource management. It is suitable for
individuals who wish to pursue a career in HRM and also for newly
appointed managers or team leaders. You will be introduced to the main
HRM theories, and these will provide a conceptual and practical platform
for student learning.
You will be encouraged to draw on your own experience as this
will help you to develop a clearer understanding of HRM. In addition
Griffith College offers a course in Positive Psychology at work – which is
a great way to increase your understanding of the human mind and
behavior. In recent times Positive Psychology is particularly relevant in a

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 work environment. In the current economic climate many employees find
it difficult to overcome their fear of redundancies and perform at the
maximum level for a prolonged period of time. It is therefore to the
employer’s advantage to ensure they are able to adequately manage their
employee’s expectations, create a more positive environment at work
fostering high performance and finally ensure employee engagement at all
levels of the organisation.

21. What factor create the need for change.

Many factors cause change in an organization. It's important to
recognize that change is not only OK, it's essential. The best organizations
create structures and build processes that encourage change. Here are a
few essential types of change that every organization should allow for and
should include the structures and processes which cause and encourage the
changes.
Here are some other important factors that stimulate change in a
business organization. In one way or another, each is related to one of the
three central leading change factors described above:
- Crises. When bad things happen, they require all kinds of changes. 9-
11 was a horrifying event that required the airlines and financial
services industries to change rapidly. The companies that did respond
to change prospered.
- Pressure: Companies prosper when they respond to internal or
external pressures proactively. Uber has had several major
management and public relation problems, but has changed in
response. Taxi companies that didn't respond to the pressure of Uber's
new business model have suffered.
- New Technologies: Companies that embrace new technologies
prosper; companies that respond slowly or resist, generally do not.
Polaroid, once an innovative leader in photo technology,  resisted the
pressures that digital-photo technology put on the company, and
Polaroid eventually failed. Snapchat had no underlying great,
technological leg up on the competition, but it saw earlier than most
companies did that the internet democratized photography.
- Mergers and Acquisitions. How a company responds to a merger or a
new acquisition is critical. Companies that successfully merge
different internal leadership models, business models and cultures will
prosper. Those that do not may fail. Walt Disney and Pixar were
independent movie companies with strong internal cultures; in almost
every way, they were not alike. But strong leadership demanded a
successful merger of the two companies, which led to a string of huge
box office successes, beginning with Toy Story. Culture clashes and

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 turf wars that followed the merge of AOL and Time Warner led to
under-performance and ultimately the splitting up of the two
companies after incurring huge merger-related losses.

22. What factor affect group behavior.

Formal leadership: Almost every work group has a formal leader. The
common titles of those leaders are superior, foreman, project leader,
department manager, general manager, chainman or managing director etc.
These leaders can play an important role in group’s success. They are also
liable for the failure of group.
Roles: The world is a stage and all men and women are merely
players. All group members are actors; they are playing different types of
roles. A role is an expected behavior in a given position in a social unit.
Different groups impose different roles on different individual. We can
have different concepts about role in a group.
- Role identity: there are certain attitudes and behaviors consistent with
a role. This is called role identity.
- Role perception: Group’s members need role perception. Role
perception in an individual’s view of how he or she is supposed to act
in a given situation.
- Role expectations: Role expectations are defined as how others
behave the one should act in a given situation.
- Role conflict: Role conflict is a situation in which an individual is
confronted by divergent role expectation.
- Norms: All groups have some establish norms. Norms refer to the
acceptable standards of behaviors that are shared by the group’s
members. Formalized norms are written up in organizational manuals,
and all the people in an organization are bound to follow that rules and
regulations. But the majority of norms in organizations are informal.
- Group status: Status may be defined as a social rank or position given
in a group by others. We live in a class structured society. Status is
important for group members.
- Group size: The size of a group affects the group’s overall
performance or behavior. Small groups are faster at completing task
than are larger ones. If the group is encouraged in problem solving,
large groups are perfect to small group. So if the goal of hand, smaller
group is better in achieving productivity.
- Composition of the group: Since group is association of different
types of people with variety of skills and knowledge. When a group is
heterogeneous rather than homogeneous in terms of age, gender, race,
educational background, personalities, opinions, abilities skills and
knowledge, it can be effective to complete a work.

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 - Group cohesiveness: The degree in which members are attracted to
each other and are motivated to stay in the group are called group
cohesiveness. Group behavior are significantly affected by group are
cohesiveness. The following suggestions can increase group
cohesiveness:
. The group smaller
. Make Increase the members spend together
. Encourage agreement about group goals
. Increase the status of the group
. Stimulate competition with other group
. Give reward to the group rather than the members
. Physically isolate the group

23. .Explain Maslow’s hierarchy of needs theory.

Abraham Maslow is well renowned for proposing the Hierarchy of Needs
Theory in 1943. This theory is a classical depiction of human motivation.
This theory is based on the assumption that there is a hierarchy of five
needs within each individual. The urgency of these needs varies. These
five needs are as follows :
- Physiological needs. These are the basic needs of air, water, food,
clothing and shelter. In other words, physiological needs are the needs
for basic amenities of life.
- Safety needs. Safety needs include physical, environmental and
emotional safety and protection. For instance- Job security, financial
security, protection from animals, family security, health security, etc.
- Social needs. Social needs include the need for love, affection, care,
belongingness, and friendship.
- Esteem needs. Esteem needs are of two types: internal esteem needs
(self- respect, confidence, competence, achievement and freedom) and
external esteem needs (recognition, power, status, attention and
admiration).
- Self-actualization need. This include the urge to become what you are
capable of becoming / what you have the potential to become. It
includes the need for growth and self-contentment. It also includes
desire for gaining more knowledge, social- service, creativity and
being aesthetic. The self- actualization needs are never fully satiable.
As an individual grows psychologically, opportunities keep cropping
up to continue growing.

24. Explain Theory X and Theory.

In 1960, Douglas McGregor formulated Theory X and Theory Y
suggesting two aspects of human behaviour at work, or in other words,

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 two different views of individuals (employees): one of which is negative,
called as Theory X and the other is positive, so called as Theory Y.
According to McGregor, the perception of managers on the nature of
individuals is based on various assumptions.
- Assumptions of Theory X
An average employee intrinsically does not like work and tries to
escape it whenever possible. Since the employee does not want to
work, he must be persuaded, compelled, or warned with punishment
so as to achieve organizational goals. A close supervision is required
on part of managers. The managers adopt a more dictatorial style.
Many employees rank job security on top, and they have little or no
aspiration/ambition. Employees generally dislike responsibilities.
Employees resist change. An average employee needs formal
direction.
- Assumptions of Theory Y
Employees can perceive their job as relaxing and normal. They
exercise their physical and mental efforts in an inherent manner in
their jobs. Employees may not require only threat, external control and
coercion to work, but they can use self-direction and self-control if
they are dedicated and sincere to achieve the organizational
objectives. If the job is rewarding and satisfying, then it will result in
employees’ loyalty and commitment to organization. An average
employee can learn to admit and recognize the responsibility. In fact,
he can even learn to obtain responsibility. The employees have skills
and capabilities. Their logical capabilities should be fully utilized. In
other words, the creativity, resourcefulness and innovative potentiality
of the employees can be utilized to solve organizational problems.

25. Managers can implement controls before an activity begins, during

the time the activity is going on, and after the activity has been
completed.
Managers have to monitor the activities of their team and the external
forces. Without that monitoring, you won't know whether your plan is
working or if it needs to be adjusted. Then, managers must control those
elements that they can control to keep everyone moving toward the goal.
Some Additional Aspects of Monitor and Control :
- Keeping Score Isn't Winning: There is no point in monitoring if you
don't take action based on the information. Don't just keep track. Make
sure you are measuring the right things and then take appropriate
action to fix whatever problems the measurements point out.
- You Can't Manage What You Don't Measure: Unless you measure
something, you don't know if it is getting better or worse. You cannot

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 manage for improvement if you don't measure to see what is getting
better and what is getting worse. This article helps you know how and
what to measure.
- Don’t Let Process Get in the Way of Results: While this article
specifically addresses the issue of overplanning, it also applies to the
monitoring task. Don't focus so much on the monitoring task that you
don't take control and make the changes that are necessary.
- Employee Coaching: When to Step in: A good manager will always
monitor what their employees are doing, but will not intervene to
coach their employees except in specific circumstances. Knowing
when to let an employee make a mistake they can learn from and
when you need to step in and coach them is a balancing act. You have
to balance their opportunity to learn and grow against the harm they
could do to themselves, their team, and the company.
- Giving Negative Feedback: When a manager needs to step in and
control the activity of the team or an individual it is often necessary to
give negative feedback. Be sure to do it properly as outlined here.
- Monitor Your Team's Progress: For many, project management is
their first management role. In the steps to successful project
management, we also see the task of monitoring the team.
- Your Boss is Watching You: Managers have an obligation to their
company to monitor the activities of their employees to ensure
compliance with applicable laws and policies. You monitor their
behavior, their adherence to the dress code, the way they greet
customers. The need to monitor their electronic activities is equally as
great and the reasons are the same. Be sure to let employees know that
they are being monitored. Let them know what is being monitored and
why. Let them know what is acceptable and what is not.

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