UNIT 1 INTRODUCTION

LESSON 1 MANAGEMENT AS A DISCIPLINE

LESSON 2 VALUES IN MANAGEMENT

LESSON 3 MANAGERIAL ROLES

LESSON 1 MANAGEMENT AS A DISCIPLINE

TABLE OF CONTENTS:

1.0 OBJECTIVES

1.1 INTRODUCTION

1.2 KEY CONCEPTS OF MANAGEMENT DISCIPLINE

1.3 DEFINITION OF MANAGEMENT

1.4 MANAGEMENT AS A DISCIPLINE

1.5 MANAGEMENT AS A TEAM

1.6 MANAGEMENT AS A PROCESS

1.7 SUMMARY

1.8 REFERENCES

1.9 GLOSSARY
 BBM 105 Unit 1, Lesson 1

LESSON 1 MANAGEMENT AS A DISCIPLINE

We have often use the word Management in all the fields of our life whether
it’s management of a hospital, home or business, whether it’s management of men,
money, material or time etc. As a student of management several questions come
into our minds like ‘What is Management?’, ‘Why is management considered an
important discipline?’, and ‘What are we going to learn in management discipline?’
This chapter will answer these questions by explaining the concept, functions and
characteristics of Management as a discipline.

1.0 Objectives
This lesson attempts to provide the knowledge of:
 Meaning of management
 Management as a discipline
 Management as a team
 Management as a process
 Characteristics of Management

1.1 Introduction
The verb manage comes from the Italian word maneggiare (to handle —
especially a horse), which in turn derives from the Latin word manus (hand). Leading
by the hand implies giving direction that is stronger than just a passing suggestion
yet still fairly gentle in approach. Leading by the hand also implies that the person
doing the leading is first going where the follower is being lead.

The French word mesnagement (later ménagement) means “the art of

conducting & directing”. This influenced the development in meaning of the English
word management which characterizes the process of leading and directing all or
part of an organization, often a business, through the deployment and manipulation
of resources (human, financial, material, intellectual or intangible).

In a civilized society it is not possible to achieve a goal alone. One has to

depend on the co-operation of other resources to accomplish these goals. Whether it
is a military organization, social organization or a business organization it is essential
that there be management –the task of creating the internal environment for
organized effort to accomplish group goals. In coordinating group activity manager
plans, organizes, staffs, leads and control the resources. Thus, management in all
business and human organization activity is simply the act of getting people together
to accomplish desired goals. Management comprises planning, organizing, staffing,

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leading and controlling an organization (a group of one or more people or entities) or

an effort for the purpose of accomplishing a goal.

Management also includes planning, organizing, deploying and controlling

various resources or the group of resources to accomplish a common goal. These
resources can be human resources, financial resources, technological resources and
natural resources. Thus as a discipline, management comprises the interlocking
functions of formulating corporate policy and organizing, planning, controlling, and
directing the firm's resources to achieve the policy’s objectives .

Self-check Question
1. How will you explain the term ‘Management’ in your words?

In order to thoroughly understand the discipline of management, let us now

learn about the key concepts of management discipline.

1.2 Key Concepts of Management Discipline

 Organizations: Group of two or more people working together and co-
coordinating their actions to achieve specific goals.

 Resources: Resources are organizational assets and include:

o People,

o Machinery,

o Raw materials,

o Information,

o Talent

o Financial capital.

 Goal: A desired future condition that the organization seeks to achieve. For
example: Organizations must provide a good or service desired by its
customers.

o David Johnson of Campbell Soup manages his firm to provide quality

food products.

o Physicians, nurses and health care administrators seek to provide

healing from sickness.

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o McDonald restaurants provide burgers, fries and shakes that people

want to buy.

 Organizational Performance: Measures how efficiently and effectively

managers use resources to achieve goals.

o Efficiency: Doing things in a right way. It is a measure of how well

resources are used to achieve a goal. Usually, managers must try to
minimize the input of resources to attain the same goal.

o Effectiveness: Doing things in a right manner. It is a measure of the

appropriateness of the goals chosen (are these the right goals?), and
the degree to which they are achieved. Organizations are more
effective when managers choose the correct goals and then achieve
them.

 Managers: The people responsible for supervising the use of an

organization’s resources to meet its goals.

Self-check Question
2. How will you differentiate between efficiency and effectiveness?

1.3 Definition of Management

Based on the key concepts of management and the basic functions of
management let us now define the discipline of management as:

The process of setting and achieving organization’s goals efficiently and

effectively through the execution of five basic management functions:
planning, organizing, staffing, leading, and controlling; that utilize human,
financial, and material resources.

1.4 Management as a Discipline

Management as a field of study includes management principles, techniques
functions and problems, as these imply a branch of knowledge. It comprises
management theory and principles for tackling management problems. It is taught as
a specialized discipline in educational institutions. Management is a multi-disciplinary
aspect drawn from other disciplines like Anthropology, Psychology, Sociology, etc.
This approach, however fails to give the correct nature of management.
Management as a discipline includes:

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 BBM 105 Unit 1, Lesson 1

 Theory and principles

 Techniques

 Functions

1.5 Management as a team

Management as a group of people includes every individual who are working
in the organization. Every individual contributes to achieve the specified objectives of
the organization. When these individuals contribute as a group to achieve the
objectives of the organization, this is called management. Management as a team
includes:

 Group of managerial personnel;

 Top management;

 Managers;

 Personnel who are looking the affairs of the organization.

1.6 Management as a Process

Management, as a process, includes a series of functions that lead to the
achievement of stated objectives. A manager has to perform various functions to
achieve the desired objectives. Management, as a process, has two features:

 Management is a continuous process

 The functions of management are inter-dependent and inter-related.

“Management is defined for conceptual, theoretical and analytical purposes as

that process by which managers create, direct, maintain and operate purposive
organization through systematic, coordinate, co-operative human effort.” Dalton E.
Mc Farland. As a process, management refers to a series of inter-related elements
or functions. It involves

 Planning,
 Organizing,
 Staffing,
 Directing,
 Controlling.

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1.7 Characteristics of Management

The following are the characteristics of management:

 Management is a distinct and universal process: management is a distinct

process consisting of such functions of planning, organizing, staffing, directing
and controlling. The process of management involves decision making and
putting them into action. These functions are performed by each manager.
Every manager performs the same basic functions and these functions are
basically same at all levels of organization and all types of institutions. These
basic principles of management are also universal in character. These apply
in every situation or activity. These are equally applicable in different
organization. Management is pervasive.

 Management is a continuous process: The cycle of management continues

to operate so long as there is organized action for achievement of group
goals. Management is an ongoing process and is also a never ending
process. Because every activity starts with planning and if any deviation takes
place on the ongoing process, planning sought again. Management is
dynamic and the cycle continues.

 Management is multi-disciplinary: Management techniques, principles and

theories are drawn from other disciplines such as engineering, anthropology,
sociology and psychology. It depends upon wide knowledge and practices
derived from various disciplines. Management as a field of study has grown,
taking the help of so many other disciplines.

 Management is intangible force: Management is evidenced by results of its

efforts through others. Management is an unseen or invisible force. It cannot
be seen, but its presence can be felt in the forms of results in every type of
organization. Manager arranges the human and other resources and uses
these resources according to the priority of objective through their functions.
The functions performed to achieve these objectives can be felt or unseen.
Thus, feeling of management is result oriented.

 Management is situational: There is no best way of doing things. The

application of knowledge to realistic in order to attain results. A manager must
have taken into account condition and situation to solve a particular problem.
A problem could be solved by keeping an eye on the situation. Management
is a situational or contingent.

 Management is goal oriented: Management co-ordination is the efforts of

human resources by employing other resources other resources of the
organization to achieve the stated objective. Efforts are directed towards the
accomplishment of pre-determined goals. So, all activities of management are
goal oriented. The success of every activity of management is measured by
the extent to which the organization goals are achieved. Objective or goals
provide justification for the existence of an organization.

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 Management is an interpretive force: The essence of management lies in

the integration of human and other resources to achieve the state objectives.
Management is a unifying force and applies this integrated force to achieve
the desired objectives of the organization.

 Management is a system of authority: Management provides the direction

of every activity of an organization. Management forms a system of authority
of or a hierarchy of commands to control the activities and give smooth
direction. Authority enables the managers to perform their functions
effectively. Management forms a chain of command and authority and is
delegating to perform the task effectively.

 Management is a science or an art: management has a systematic body of

knowledge as well as practical application of such knowledge. Management
consists of well defined concepts principles and techniques which have wide
application. So, it is treated as a science. The application of these concepts
and practices requires a lot skills and knowledge on the part of manager. So,
this is viewed as an art. So, management is both a science and an art.

 Management as an economic resource: management is an economic

resource with land, labour, and capital. Efficient management is the most
critical input in the success of any organized group activity, as it is the force
which assembles and integrates the resources of the organization properly.
Thus management is an organization.

 Management is a group and social phenomena: Management involves the

use of group effort in the pursuit of common adjectives. Group activity is found
in all areas of human activity, and it is the integrative efforts of human being
that make possible for the organization to achieve desired objectives.
Management is done by people, through the people, for the people. It is a
social process also; because it is concerned with inter personal relationship. It
is the pervasiveness of the human element which gives management its
special character as social phenomena.

Self-check Questions
3. Explain the relationship of management with other discipline.

4. Explain characteristics of management.

1.8 Summary
Management as a Discipline has gained importance in every field of life
because it is directed towards achievement of any desired goal. Thus, whether it is
Financial Management, Human Resource Management, Project Management, Cost
Management, the word management gives an assurance that the goals will be

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achieved with efficiency and effectiveness. Thus it becomes essential to have

knowledge of Management Discipline. In the following chapters we will learn in detail
the philosophy of management discipline and how it was developed through
continuous research of management scientists and management thinkers.

1.9 References
1. Robbins, S. P. & Coulter, M. (2003). Management, 8th Ed. Upper Saddle
River, NJ: Prentice Hall.

2. Koontz, H & O’Donnell, Cryril, Principles of Management, 3 rd Ed., McGraw-Hill

Series.

3. R.N. Singh, Management thoughts and thinkers: Sultan Chand and sons, New
Delhi.

4. P.C. Tripathy & P.N. Reddy, Principles of Management; Tata McGraw Hill,
New Delhi.

5. James A.F. Stoner, Management Practice; Hall of India, New Delhi

1.10 Glossary
1. Organization Group of two or more people working
together and co-coordinating their actions to achieve
specific goals.

2. Planning The process used by managers to identify

and select appropriate goals and courses of action for
an organization.

3. Staffing Selecting and training individuals for

specific job functions, and charging them with the
associated responsibilities.

4. Leading Leading implies to determining direction,

stating a clear vision for employees to follow, and
helping employees understand the role they play in
attaining goals.

5. Controlling Evaluation of how well the

organization is achieving its goals and taking
corrective action to improve performance.

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LESSON 2 VALUES IN MANAGEMENT

TABLE OF CONTENTS:

2.0 OBJECTIVES

2.1 INTRODUCTION

2.2 CONCEPT OF VALUES IN MANAGEMENT

2.3 NEED OF VALUES IN MANAGEMENT

2.4 ESTABLISHING AND IMPLEMENTING VALUES IN MANAGEMENT

2.5 SUMMARY

2.6 HOME ASSIGNMENT EXERCISE

2.7 REFERENCES

2.8 GLOSSARY
 BBM 105 Unit 1, Lesson 2

LESSON 2 VALUES IN MANAGEMENT

In the previous chapter we learnt about the concept of Management as a
discipline. Before we proceed to the evolution of management, we must understand
that the growth and development of management discipline has always taken place
on the platform of Values. Values in management should thus be the guiding force
behind planning, organizing, leading and controlling any organizational activity. In
this chapter we will learn about Values in Management and how they are essential
for achieving the management objectives.

2.0 Objectives
After reading this chapter you will be able to:

 Understand the meaning of values and the concept of values in management

 Asses the importance of values in management and how they benefit the
organization.

 Know how to establish values in management

 Know how to ensure proper implementation of values in management.

2.1 Introduction
In the past, our parents, teachers, friends, and others have taught us different
kinds of values which holds good even today. These values were “We must respect
elders”, “We must always tell the truth” etc. These values govern our behaviour by
letting us know what is right and what is wrong. Thus Values have a judgmental
factor.

Stephen P. Robbins defines value as

“A specific mode of conduct or end-state of existence which is personally or socially

acceptable.”

Values are traits or qualities that are considered worthwhile; they represent an
individual’s highest priorities and deeply held driving forces. Values are not generally
fluid and flexible. They tend to be relatively stable and enduring.

Just like values help individuals to follow a path that is right and acceptable by
society, Values in Management guide the management of an organization to adopt a
path which is acceptable to its stakeholders. Stakeholders here mean all the parties
who are interested and are affected by the activities of the management which
includes customers, employees, owners, shareholders, suppliers etc.

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In the present era, when we hear and read the news about corporate
scandals all around the world, the first thought that comes to everybody’s mind is
‘This Company has lost its Values’. Thus the management with strong value system
is always considered trustworthy by the stakeholders.

2.2 Concept of Values in Management

If you have visited any organization you might have noticed a well decorated
and eye catching board carrying values statement or credo statement in every
executive’s room and at many prominent places in a company. So, what do these
Values in Management mean?

The following are examples of Values that are often used by Management to
describe their conduct:

Ambition, Competency, Individuality, Equality, Integrity, Service,

Responsibility, Accuracy, Respect, Dedication, Diversity, Improvement,
Enjoyment/Fun, Loyalty, Credibility, Honesty, Innovativeness, Teamwork,
Excellence, Accountability, Empowerment, Quality, Efficiency, Dignity, Collaboration,
Stewardship, Empathy, Accomplishment, Courage, Wisdom, Independence,
Security, Challenge, Influence, Learning, Compassion, Friendliness,
Discipline/Order, Generosity, Persistency, Optimism, Dependability, Flexibility

Based on the values that the management considers important for the
organization, it defines its Value statements. Value statements are grounded in
values and define how people want to behave with each other in the organization.
They are statements about how the organization will value customers, suppliers, and
the internal community. Value statements describe actions which are the living
enactment of the fundamental values held by most individuals within the
organization. Microsoft Incorporation defines its value statement:

‘As a company, and as individuals, we value integrity, honesty, openness,

personal excellence, constructive self-criticism, continual self-improvement, and
mutual respect. We are committed to our customers and partners and have a
passion for technology. We take on big challenges, and pride ourselves on seeing
them through. We hold ourselves accountable to our customers, shareholders,
partners, and employees by honouring our commitments, providing results, and
striving for the highest quality.’

Let us consider an example of Tata Group in Exhibit 2.1 and try to understand
how they define their Management Values

Exhibit 2.1: Management Values at Tata Group

Purpose

At Tata our purpose is to improve the quality of life of the communities we

serve. We do this through leadership in sectors of economic significance, to which

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 BBM 105 Unit 1, Lesson 2

the group brings a unique set of capabilities. This requires us to grow aggressively in
focused areas of business.

Our heritage of returning to society what we earn evokes trust among

consumers, employees, shareholders and the community. This heritage is being
continuously enriched by the formalization of the high standards of behaviour
expected from our employees and companies.

The Tata name is a unique asset representing leadership with trust.

Leveraging this asset to enhance group synergy and becoming globally competitive
is our chosen route to sustained growth and long-term success.

Core values

Tata has always been values-driven. These values continue to

direct the growth and business of Tata companies. The five core Tata values
underpinning the way we do business are:

 Integrity: We must conduct our business fairly, with honesty and

transparency. Everything we do must stand the test of public scrutiny.

 Understanding: We must be caring, show respect, compassion and

humanity for our colleagues and customers around the world, and always
work for the benefit of the communities we serve.

 Excellence: We must constantly strive to achieve the highest possible

standards in our day-to-day work and in the quality of the goods and services
we provide.

 Unity: We must work cohesively with our colleagues across the group and
with our customers and partners around the world, building strong
relationships based on tolerance, understanding and mutual cooperation.

 Responsibility: We must continue to be responsible, sensitive to the

countries, communities and environments in which we work, always ensuring
that what comes from the people goes back to the people many times over.

Self-check Question

1. Suppose you are a manager of an organisation, what are the values you will
emphasize to ensure long term sustainability and growth of your organization?

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2.3 Need of Values in Management

Let us now learn why the Values are an essential element in Management.
The following are some of the benefits that an organization enjoys if it has Value
based management:

1. Management Values encourage behaviour that is aligned with

organizational goals: Management Values establish standards of behaviour,
which serve to encourage or discourage certain behaviours. Effective
organizations identify and develop a clear, concise and shared meaning of
values, priorities, and direction so that everyone understands and can
contribute towards the organizational goals. Without such values, individuals
will pursue behaviours that are in line with their own individual value systems,
which may lead to behaviours that the organization doesn't wish to
encourage.

2. Management Values bind the organization: In a smaller, co-located

organization, the behaviour of individuals is much more visible than in larger,
disparate ones. In these smaller groups, the need for articulated values is
reduced, since unacceptable behaviours can be challenged openly. However,
for the larger organization, where desired behaviour is being encouraged by
different individuals in different places with different sub-groups, an articulated
statement of values can draw an organization together.

3. Management Values guide the planning process: A Values Statement is

essential to good strategic planning because values underlie the decision-
making process. Ignoring the cultural values of an organization is disastrous
for a strategic plan because regardless of the plan, major and minor decisions
alike will always align with the culture but not necessarily with the mission.
Identifying and incorporating the values into the planning process will assure
that goals, objectives and strategies will be achievable.

4. Management Values help maintain a moral course in turbulent times.

Management Values are critical during times of fundamental change -- times
much like those faced now by businesses, both non-profit and for-profit.
During times of change, there is often no clear moral compass to guide
leaders through complex conflicts about what is right or wrong. Continuing
attention to Management Values in the workplace sensitizes leaders and staff
to how they want to act -- consistently.

5. Management Values cultivate strong teamwork and productivity.

Management Values align employee behaviours with those top priority ethical
values preferred by leaders of the organization. Usually, an organization finds
surprising disparity between its preferred values and the values actually
reflected by behaviours in the workplace. Ongoing attention and dialogue
regarding values in the workplace builds openness, integrity and community --
critical ingredients of strong teams in the workplace. Employees feel strong
alignment between their values and those of the organization. They react with
strong motivation and performance.

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6. Management Values promote a strong public image.

Attention to Management Values also promotes strong public relations. The
fact that an organization regularly gives attention to its values can portray a
strong positive image to the public. People see those organizations as valuing
people more than profit, as striving to operate with the utmost of integrity and
honour. Aligning behaviour with values is critical to effective marketing and
public relations programs.

As Steve Jobs, the co-founder of Apple Computer put it, "The only thing that
works is management by values. Find people who are competent and really bright,
but more importantly, people who care exactly about the same things you care
about."

Self-check Questions
1. According to you what are the two important benefits that your organization
will enjoy if it follows the management values.

a) Purchasing and inventory control

b) Plant location and layout
c) Plant buildings and equipments
d) Quality control
e) Production planning and control
f) Repairs and maintenance

2. State the three main elements of a system.

2.4 Establishing and Implementing Values in Management

We now understand the importance of Values in Management. These values
however should not be just a written guide that remains on the wall, or in a folder, but
it should be living values which shape the culture - the way that things get done. Now
let us see how we can ensure that these values are properly established and
followed in an organization. Following are some of the important steps:

1. Identifying Values in an open premise

The first step in this direction is to identify the values by a very open and
inclusive process. Employees, managers, customers, stakeholders, and the broader
community should have the opportunity for input. It is not enough to brainstorm with
senior management. Because this process is so pivotal to the whole strategic
planning process, there must be broad ownership of the final product. The more and
broader the input, the easier the final plan will be to sell. The Management can
conduct a Value Survey with its stakeholders and ask to identify and rank the values
they prefer most. Individual interviews and focuses group discussions with various
stakeholder groups can be conducted. Issues such as "What do we mean when we
say that we respect our employees in this organisation??" and "How do you know

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when this organization puts customers first?" can be the topic for interviews and
group discussions.

2. Communicate the Values Constantly

Values should fit with the organizations' communication, both internally and
externally. If we say that we're fun, team-oriented where everyone counts, then
having a traditional style with a photo of the CEO may challenge this. Refer
frequently to the values in talks, in articles in internal magazines. Acknowledge and
thank those people who have achieved something by following the values. This will
send the message that Management emphasizes on its values.

3. Enrol New Men

The values should be explicitly available as new members join an

organization. Make sure the Values become a part of selection process. The
personal values of new employees should be aligned with management’s values.

4. Revisit and Refresh the Values.

The values should be reviewed periodically - allowing members to update

them. This will also help in enrolling those who have joined the organization recently,
and avoids the situation where stated values no longer reflect the business culture.

5. Most critical aspect – walking the talk

No matter how genuine and moral your values be, no matter how well
articulated your values be, no matter how well you communicate your values, as
leader, what really matters is how you behave. People see, believe and do what you
do, not what you say. However well articulated and publicized your values might be,
it is only when people see their leaders "living the values", and do they understand
the spirit behind and understand the significance of values in the game plan of the
company.

Ability to "walk the talk" is the ultimate test of leaders' character. There is a
famous Hewlett-Packard story demonstrates role-modelling behaviour by its co-
founder Bill Hewlett. Bill Hewlett once broke open a lock put on a store room and
placed the lock with a short note on the manager’s desk. The note read that locked
store rooms do not reflect the HP value of respect for employees. It is through such
exemplified role modelling behaviour that leaders emphasize on the establishment of
the management values across the organization.

If the management wants that the values must have an impact in the
organization, the following must occur.

 People must demonstrate and model the values in action in their personal
work behaviours, decision making, contribution, and interpersonal interaction.

 Organizational values must help each person establish priorities in their daily
work life.

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 Once the organization has cooperatively created the values and the value
statements every decision in that organization must be guided by values.

 Rewards and recognition within the organization must be structured to

recognize those people whose work embodies the values the organization
embraced.

 Organizational goals must be in line with the identified values.

 Management must hire and promote individuals whose outlook and actions
are congruent with the values.

 Only the active participation of all members of the organization will ensure a
truly organization-wide, value-based, shared culture.

Self-check Question
1. Enlist four important steps you would like to take to ensure that the
Management values are properly established and followed in your
organization.

2.5 Summary
Values are the set of beliefs held by the organization; every organization has
them. Values are the underlying principles that guide operations, decisions and staff.
They are what drive the priorities of employees and managers and how they act
within the organization. They are the basis of the ethical standards in dealing with
employees, customers, vendors and competitors. The Values of an organization can
provide a framework for the collective leadership of an organization to encourage
common norms of behaviour which will support the achievement of the organization's
goals and mission. It is in the authenticity, the discipline and the consistency of the
values, not the content, that differentiate the greatest companies from the rest.

2.6 Home Assignment

1. Read the following article and answer the questions at the end:

VALUES AT ADITYA BIRLA GROUP

An Article by Mr. Kumar Mangalam Birla

"Over the last few years, the Aditya Birla Group has been building critical
infrastructure on the human resource front to realize its leadership aspirations in the
global business arena. Gyanodaya, our management learning institute; Aditya
Disha, our intranet; Aditya Birla awards, our salutation to our committed achievers
—- are all milestones of this purposeful journey. And very recently, a new and

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significant initiative has been launched across the group wherein we have more
sharply defined our values framework.

The values of any organization define its character and personality. Values
guide, shape and influence our behaviour and actions. The external world perceives
and responds to an organization based on the way that it goes about conducting its
business. The world of business today is going through a crisis of trust, where the
credibility of business leaders and the legitimacy of business organizations are
subjected to questioning. This scrutiny from the government, media, analysts,
investors and action groups is becoming more stringent every day. In such an
environment of scepticism and cynicism our actions alone can inspire confidence.
Once again, people are searching for the soul of the corporation, its values.

In the Aditya Birla Group we are becoming more heterogeneous as we

globalize. Also, 30 per cent of our people have been with the group for less than five
years and 48 per cent are below the age of 38 years. With every acquisition, we add
a significant number of new colleagues with diverse backgrounds, and experience
and most importantly, with different expectations from us. While these developments
are exciting, I firmly believe that we need a stronger organizational glue to hold us
together, apart from the time-tested bonds of our legacy, heritage, a shared set of
systems, processes and best practices, an activist corporate centre, our logo and our
name.

People contribute when they relate to an organization and they relate, when
they understand the organization. And people understand an organization through its
values, by experiencing the culture that the values create and by using the systems
and processes that the values define. In large organizations, such shared
understanding cannot be created through the leadership of individuals alone, it
requires leadership of principles, of beliefs, of conviction — these together constitute
what we call the "values".

The articulation of a common set of values, I believe, enables organizations to

pull in a common direction, gives employees something they can easily identify with,
helps them to find common cause with each other and creates a common sense of
purpose. It also takes the assimilation of new employees and cultures easier and
faster in periods of rapid growth. With these objectives, and also a view of the future
in mind, I had articulated and proposed a set of values for the group about six years
ago.

However in this period, we as an organization have confronted many

moments of truth and one thing became very clear to me. We needed a values
framework for the group as the foundation for our future, which must have wide
ownership, deeper understanding across, larger application, stronger implementation
and most critically, be backed by the active personal sponsorship and role modelling
of us all.

An exercise for identifying values is never easy. One has scores of values and
values-related practices to choose from. An emotional attachment with the past and
multiple views of the future complicate the task. Nonetheless, supported by a
presentation by corporate HR, all our directors and business heads worked through

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a common session to take a view and we agreed on the five of: "integrity,
commitment, passion, seamlessness and speed".

Let me say a few words on how we view each of these values and our future
plans for disseminating our values framework through the organization.

Integrity

We define integrity as honesty in every action. We shall act and take

decisions in a manner that these are fair, honest and follow the highest standards of
professionalism. Integrity shall be the cornerstone for all our dealings, be it with our
customers, our employees, suppliers, our partners, shareholders, the communities
we serve or the government.

Commitment

On the foundation of integrity, we see commitment as doing whatever it takes

to deliver as promised. Each one of us shall take ownership for our own work, teams
and the part of the organisation we are responsible for. Through this value, we shall
build an even sharper results-oriented culture that is high on reliability and
accountability. Our commitment is likely to make us a formidable leader and
competitor in every market that we are in.

Passion

We define passion as a missionary zeal arising out of an emotional

engagement with work which inspires each one to give his or her best. All of us are
expected to be enthusiastic in the pursuit of our goals and objectives. We shall
recruit and actively encourage employees with a 'fire in the belly'. With this value, we
hope to build a culture of innovation and breakthrough thinking, leading to superior
customer satisfaction and value creation.

Seamlessness

We understand seamlessness as thinking and working together across

functional silos, hierarchy levels, across business lines and geographies. Each one
of us shall demonstrate high level of teamwork through sharing and collaborative
efforts and garner the synergy benefits from working together. Before we can truly
benefit from a borderless world, we need to build a borderless organisation. We
visualise free flow of knowledge and information across the group.

I am reminded of the words of my father, the late Aditya Vikram Birla: "Our
search for knowledge is not limited to within the group. We seek knowledge from
every nook and corner, from our competitors, suppliers, customers et al. Even the
worst run units in India would have something to teach us. It is with this humility that
we seek knowledge."

Speed

We look upon speed as responding to internal and external customers with a

sense of urgency. We shall continuously seek to crash timelines and ensure
expeditious completion of our tasks. Through this value, we hope to build an agile

23
 BBM 105 Unit 1, Lesson 2

and proactive organization that is prompt to respond to the present and future needs
of our customers.

All these values together form our core ideology. They are all equally
important and no value will take precedence at the cost of the other. It is in the
harmonization of the five that we see the prospect of greater value creation for all our
stakeholders.

Let me conclude by saying that great businesses are never built on the quick
sands of opportunism. I reiterate that, if living by our values means, perhaps growing
at a pace slower than we would otherwise have liked, so be it. For us, leadership lies
at the heart of knowing what we stand for."

Source: http://www.adityabirla.com/media/features/values_framework.htm

Based on the above article answer the following:

1. What are the different points illustrated in the article that indicates the need
and importance of having Values in Management for Aditya Birla Group.

2. Comment on the relevance of the five values "integrity, commitment, passion,

seamlessness and speed" of Aditya Birla Group

2.7 References
1. Robbins, S. P. & Coulter, M. (2003). Management, 8th Ed. Upper Saddle
River, NJ: Prentice Hall.

2. Koontz, H & O’Donnell, Cryril, Principles of Management, 3 rd Ed., McGraw-Hill

Series.

3. http://en.wikipedia.org/wiki/Ethics_in_management"

4. http://humanresources.about.com/cs/strategicplanning1/a/strategicplan_3.htm

5. http://workstar.net/library/values.htm

2.8 Glossary
1. Value A specific mode of conduct or end-state of
existence which is personally or socially acceptable.

2. Value statements Describe actions which are

the living enactment of the fundamental values held
by most individuals within the organization.

24
LESSON 3 MANAGERIAL ROLES

TABLE OF CONTENTS:

3.0 OBJECTIVES

3.1 INTRODUCTION

3.2 MANAGERIAL TITLES

3.3 ROLE OF A MANAGER

3.3.1 ROLE OF A MANAGER: BASED ON MANAGERIAL FUNCTIONS
3.3.2 ROLE OF A MANAGER: MINTZBERG’S CLASSIFICATION

3.4 MANAGERIAL SKILLS REQUIRED FOR PERFORMING MANAGERIAL

ROLES

3.5 SUMMARY

3.6 REFERENCES

3.7 GLOSSARY
 BBM 105 Unit 1, Lesson 3

LESSON 3 MANAGERIAL ROLES

As a student of a manager you might be eager to know what will be
your role once you will become a manager, or what exactly a manager is
expected to do. This chapter will answer your question. As a manager you
will have a great responsibility to drive the organization towards the
attainment of organizational goal. This will require you to perform a very
significant role in an organization. This chapter introduces and explains
the role a manager has to play in an organization and the skills required
to perform that role;

3.0 Objectives
After reading this chapter you will be able to:

 Understand the meaning of a Manager

 Understand the role played by a manager based on the functions of

management

 Asses the role played by a manager as explained by Henri Mintzberg

 Identify the skills required by a manager to perform his role effectively and
efficiently. .

3.1 Introduction
We all know that every organization exists to serve a predefined goal. This
goal is achieved by managing the organizational resources like material, finance,
technology or human resources. A Manager is someone who works with and through
these resources in order to accomplish organizational goals. A manager also
manages the influence of internal and external environmental factors on the
organization. The internal environment of an organization comprises of
organizational policies, procedures, structure and culture etc while the external
environment comprises of political, socio-economical, technological and ecological
factors etc. Where the manager has full control over the internal environmental
factors, he has little, if any; power to influence the external environmental factors. A
manager’s role is to manage the internal environmental factors so that they are
conducive for achieving the goal. He also has to take effective steps within the
organization so that the influence of external environmental factors over the
organization should support the goals of organization. Values are traits or qualities
that are considered worthwhile; they represent an individual’s highest priorities and
deeply held driving forces. Values are not generally fluid and flexible. They tend to
be relatively stable and enduring.

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 BBM 105 Unit 1, Lesson 3

3.2 Managerial Titles

Every organization has its own hierarchy of management. The levels of
management and the titles of manager depends on the size of organization and the
nature of work However, in a general , we can broadly divide the managerial titles
based on the roles they have to play in organization as;

 First-line managers – First line managers manage the work of non-

managerial individuals who are directly involved with the production or
creation of the organization’s products.

 Middle managers - All managers between the first-line level and the top level
of the organization are middle managers. They manage the first-line
managers and serve as link between first-line managers and top managers.

 Top managers – Top managers are responsible for making organization-wide

decisions and establishing the plans and goals that affect the entire
organization

3.3 Role of a Manager

A manager plays a very significant role in managing an organization. If you
look in an organization, you may find a Finance Manager, a Human Resource
Manager, and a Marketing Manager etc. This categorization of role is specific to the
nature of operations of an organization. In general, a manager whether he is
overlooking the marketing operations or financial issues, has to perform certain
essential roles. To asses these essential roles which every manager has to perform,
we can use two approaches – (1) Role based on managerial functions (2)
Mintzberg’s classification of Managerial Roles

3.3.1 Role of a Manager: Based on Managerial Functions

The functions of management provide a framework for analyzing managerial

work. In chapter No. 1 we discussed in brief the basic functions of management
described by Henry Fayol. They are Planning, Organizing, Staffing, Leading and
Control. According to functional approach, the role of a manager is to perform the
following the functional roles:

 Planning: Planning involves selecting the objectives as well as the policies,

programs and procedures to achieve those objectives. A manager has to map
out exactly how to achieve a particular goal. Say, for example, that the
organization's goal is to improve company sales. The manager first needs to
decide which steps are necessary to accomplish that goal. These steps may
include increasing advertising, inventory, and sales staff. These necessary
steps are developed into a plan. When the plan is in place, the manager can
follow it to accomplish the goal of improving company sales.

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 BBM 105 Unit 1, Lesson 3

 Organizing: After a plan is in place, a manager needs to organize her team

and materials according to her plan. He groups the activities, assigns the
activities to an individual or a group and delegates the authority to conduct the
activities. Assigning work and granting authority are two important roles of a
manager.

 Staffing: After a manager discerns his area's needs, he may need to perform
the function of staffing. Staffing involves assessing the requirement of human
resource, recruitment selecting, training, and developing employees. A
manager in a large organization often works with the company's human
resources department to accomplish this goal.

 Leading: A manager also performs the role of leader. This role involves
inspiring and motivating a group of people to act towards achieving a common
goal. A manager must possess the combination of personality and skills that
makes others want to follow his or her direction. As a leader he has to:

i) Establish a clear vision

ii) Communicate that vision with others so that they can follow the vision.
This involves upward, downward and horizontal interchange of
thoughts and information.

iii) Motivate others to achieve the desired goals

iv) Coordinate and balance the conflicting interests of all members of the
organization.

 Controlling: After the other elements are in place, a manager's job is not
finished. He needs to continuously check results against goals and take any
corrective actions necessary to make sure that his area's plans remain on
track.

All managers at all levels of every organization perform these functions, but
the amount of time a manager spends on each one depends on both the level of
management and the nature of organization.

Self-check Questions
1. As a manager of a bank what are the various functions you are required to
perform?

2. What are the different roles you will perform to be an effective leader?

3.3.2 Role of a Manager: Mintzberg’s Classification

According to Mintzberg a role is a set of specific tasks a person performs

because of the position he holds. Mintzberg has identified ten managerial roles

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 BBM 105 Unit 1, Lesson 3

which can be classified in three broad categories of interpersonal roles, informational

roles and decisional roles.

1. Interpersonal Roles: These are the roles managers assume to coordinate and
interact with employees and to provide direction to the organization. These are:

 Figurehead role: A manager symbolizes the organization and the purpose of

the organization. As a figurehead he performs certain functions as receiving
important visitors and signing documents and representing the organization in
front of the external community.

 Leader role: A manager motivates mentors and encourages subordinates to

perform.

 Liaison role: link and coordinate people inside and outside the organization
to help achieve goals. The manager establishes and maintains a network of
relationship with outside persons to bring information and favors to
organization.

2. Informational Roles: Informational roles of a manager are associated with the

tasks needed to obtain and transmit information for management of the organization.
These are:

 Monitor role: A manager analyzes information from both the internal and
external environment. Much of the non routine information coming to the
organization is received by the managers.

 Disseminator role: A manager transmits information to influence attitudes

and behavior of people within the organization. The manager must transmit
all the information required by his superiors and subordinates within the
organization.

 Spokesperson role: As a spokesperson manager transmits information to

the people outside the organization. His role is to assure that outsiders
respond to the information in a positive way.

3. Decisional Roles: Decisional roles are associated with the methods managers
use to plan strategy and utilize resources to achieve goals. These are:

 Entrepreneur role: The manager acts as an initiator and designer of change

in the organization. He decides upon new projects or programs to initiate and
invest.

 Disturbance Handler role: A manager assumes responsibility for handling an

unexpected event or crisis or non routine problems

 Resource Allocator role: The manager allocates the monetary and non
monetary resources between functions and divisions and sets budgets for
lower managers.

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 BBM 105 Unit 1, Lesson 3

4. Negotiator role: A manager seeks to negotiate solutions with other managers,

unions, customers, or shareholders.

Self-check Questions
1. Why do you think a manager should perform interpersonal role in an
organization?

2. What activities you will perform as a manager to ensure proper flow of

information?

3. What are the different roles you will assume to be an effective decision
maker?

3.4 Managerial Skills required for performing Managerial Roles

Not everyone can be a manager. Certain skills or abilities are required to
translate knowledge into action that results in desired performance. Robert Katz
explained these essential skills of a manager in his model of an effective
administrator published in Harvard Business Review, 1974. According to Katz, the
three important managerial skills that must be cultivated and enhanced by a
manager are technical skills, human skills, and conceptual skills.

 Technical skills are those abilities that are necessary to carry out a specific
task. Examples of technical skills are writing computer programs, completing
accounting statements, analyzing marketing statistics, writing legal
documents, or drafting a design for a new airfoil on an airplane. Technical
skills are usually obtained through training programs that an organization may
offer its managers or employees or may be obtained by way of a college
degree. Technical skills are most important at lower levels of management.

 Human skills involve the ability to work with, motivate, and direct individuals
or groups in the organization whether they are subordinates, peers, or
superiors. Human skills, therefore, relate to the individual's expertise in
interacting with others in a way that will enhance the successful completion of
the task at hand. Some human skills that are often necessary for managers to
display are effective communication (writing and speaking), creation of a
positive attitude toward others and the work setting, development of
cooperation among group members, and motivation of subordinates. Some
managers are naturally born with great human skills, while others improve
their skills through classes or experience. No matter how human skills are
acquired, they're critical for all managers because of the highly
interpersonal nature of managerial work.

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 BBM 105 Unit 1, Lesson 3

 Conceptual skills require an ability to understand the degree of complexity in

a given situation and to reduce that complexity to a level at which specific
courses of action can be derived. This skill calls for the ability to think
analytically. Analytical skills enable managers to break down problems into
smaller parts, to see the relations among the parts, and to recognize the
implications of any one problem for others. As managers assume ever-
higher responsibilities in organizations, they must deal with more
ambiguous problems that have long-term consequences. Examples of
situations that require conceptual skills include the passage of laws that affect
hiring patterns in an organization, a competitor's change in marketing
strategy, or the reorganization of one department which ultimately affects the
activities of other departments in the organization. Again, managers may
acquire these skills initially through formal education and then further
develop them by training and job experience. The higher the management
level, the more important conceptual skills become.

Exhibit 3.1 Skills of an Effective Manager by Robert Katz,

Adopted from Harvard Business Review, 1974.

Exhibit 3.1 explains that each skill varies in importance according to the level
at which the manager is located in the organization. Generally, technical skills
become least important at the top level of the management hierarchy, replaced with
a greater emphasis on conceptual skills. Conceptual skills are critical for top
managers because the plans, policies, and decisions developed at this level require
the ability to understand how a change in one activity will affect changes in other
activities. According to this model, Human skills are equally necessary at each level
of the management hierarchy.

Self-check Question

1. Identify four examples of skills out of each category that you think are
essential to be a successful manager.

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 BBM 105 Unit 1, Lesson 3

3.5 Summary
To conclude, we now understand that a manager plays a very significant role
in managing the organization. He steers the organization towards accomplishment of
its goal. A manager, whether at top level, middle level or lower level, is responsible
for planning, organizing, staffing, leading and controlling the operations of the
organization. He is responsible for managing interpersonal relations and making
strategic decisions. He also plays the role of internal and external communicator.
Thus being a manager requires development of various skills and ability.

3.6 References
1. Robbins, S. P. & Coulter, M. (2003). Management, 8th Ed. Upper Saddle
River, NJ: Prentice Hall.

2. Koontz, H & O’Donnell, Cryril, Principles of Management, 3rd Ed., McGraw-

Hill Series.

3. Mathur, Naveen, Management Gurus- Ideas and Insights. National Publishing

house, New Delhi.

4. Singh, R N Singh, Management Thoughts and Thinkers, Sultan Chand and

Sons, New Delhi.

3.7 Glossary
1. Hierarchy of management The levels of
management and the titles of managers.

2. Technical skills Those abilities which are

necessary to carry out a specific task.

3. Human skills The ability to work with,

motivate, and direct individuals or groups in the
organization whether they are subordinates,
peers, or superiors.

4. Conceptual skills Ability to understand

the degree of complexity in a given situation
and to reduce that complexity to a level at
which specific courses of action can be
derived.

33