Principles of Management

Dr Sudhansu Pathak
Session 1
I
-am the first one to “Greet”

-apologize on my mistake, say “Sorry”

-feel happy to say “Thank you”

Evaluation Scheme:

Group Assignment = 20

Experiential Learning = 40 (20 for Report in Video Form, 20 for Presentation)

Hall Exam = 40

TOTAL = 100
 PLEDGE

We, the students of PGDM, Jaipuria Institute of Management, take the pledge to
create and maintain excellent learning environment in the class.

With best of my commitment and sincerity, I take this pledge in order to

- Ensure being regular and punctual in attending classes

- Ensure not to use mobile phone. Will keep the same away in switch off mode.

- Will effectively participate for my own learning as well as support others in the process of learning
How we develop ourselves in this course?

The Principles !

Knowing
Being
Knowledge Attitude
(K) (A)

Effectiveness
Skill
(S)

Doing
 What is ‘Management’ profession?

 Creating health  Creating justice  Creating efficiency

 Derive desired result
 Enhance process outcome

 Creating Profit / Surplus

Efficiency and Effectiveness :

Efficiency is the state of attaining the maximum productivity, with least effort and
resources spent.

Effectiveness is the extent to which something is successful in providing the desired

result.

Productivity = Output/Input
Look Around Us for Efficiency and Productivity

1. Arrangement of various operational items

(accelerator, brake, clutch, gear, head mirror,
rear mirror etc.)

2. Look at the kitchen that your mother

organized

3. Look at a factory layout (Draw)

6. Inside Store (say, Big bazar)

arrangement of items
 Work
Study

Method Work
Study Measurement

Motion Time
Study Study

Higher
Productivity

Fig. Framework of Work Study

Innovation of Assembly Line Process

https://www.google.co.in/search?q=maruti+suzuki+assembly+line
+image&tbm=isch&source=iu&ictx=1&fir=9-

1924 – Ford Model T – photo by Ford

https://bigthink.com/paul-ratner/top-20-greatest-inventions-of-all-time
How to Achieve Efficiency and Productivity?

https://www.youtube.com/watch?v=lDg9REgkCQk
Frank: Time and Motion Study
Lillian Galbraith: Human aspects of work, understanding workers’ needs
 Examples of Productivity

ILLUSTRATION :

Situation 1
A company produces 160 kg of plastic moulded parts of acceptable quality by consuming
200 kg of raw materials for a particular period.

Situation 2
For the next period, the output is doubled (320 kg) by consuming 420 kg of raw material.

Situation 3
For a third period, the output is increased to 400 kg by consuming 400 kg of raw material.

Calculate Productivity in all 3 Situations

 Examples of Productivity

ILLUSTRATION :

Situation 1
A company produces 160 kg of plastic moulded parts of acceptable quality by consuming
200 kg of raw materials for a particular period.

Situation 2
For the next period, the output is doubled (320 kg) by consuming 420 kg of raw material.

Situation 3
For a third period, the output is increased to 400 kg by consuming 400 kg of raw material.

SOLUTION:

During the first year, production is 160 kg Productivity = Output/Input = 160 /200 = 0.8 or 80%

For the second year, production is increased by 100% Productivity = Output / Input = 320/ 420 = 0.76 or 76% ↓

For the third period, production is increased by 150% Productivity = Output / Input = 400 /400 = 1.0, i.e., 100% ↑
 Session 1 : Assignment

1. Aim of management discipline?

2. Define efficiency and effectiveness?

3. What is productivity? Define.

4. Solve the problem (overleaf)

 Session 1 : Assignment

ILLUSTRATION :

The following information regarding the output produced and inputs consumed for a particular
time period for a particular company is given below:

Output – Rs. 10,000

Human input – Rs. 3,000
Material input – Rs. 2,000
Capital input – Rs. 3,000
Energy input – Rs. 1,000
Other misc. input – Rs. 500

The values are in terms of base year rupee value. Compute various partial productivity indices.

1. Labour productivity
2. Capital productivity
3. Material productivity
4. Energy productivity
5. Other misc. expenses productivity
6. Total productivity
SOLUTION:

Partial productivity

1. Labour productivity = Output Human input = 10,000/ 3,000 = 3.33

2. Capital productivity = Output Capital input = 10,000 /3,000 = 3.33

3. Material productivity = Output Material input = 10,000 /2,000 = 5.00

4. Energy productivity = Output Energy input = 10,000/1,000 = 10.00

5. Other misc. expenses = Output Other misc. input = 10,000/ 500 = 20.00

6. Total productivity = Total output/ Total input = Total output/ (Human + Material + Capital + Energy
+ Other misc. input) = 10,000 /(3,000 + 2,000 + 3,000 +1,000 + 500) = 10,000/ 9,500 = 1.053
Session 2
Events that changed the world and the way it is managed :

AD
 Printing Press – 1439
 Electric bulb – 1879
 Steam Engine – 1775
BC
 Telephone – 1876
 Fire – 125,000 years
 Car – 1885
 Wheel – 3500 BC
 Airplane – 1903
 Paper – 100 BC
 Assembly Line - 1913
 Semiconductors – 1947
 Personal Computer – 1970
 Internet -- 1990
 Smartphone - 1992

https://bigthink.com/paul-ratner/top-20-greatest-inventions-of-all-time
Emergence / Evolution of Management Thought

1900 ~ 1915 1916 ~ 1930 1930 ~ 1960 1960 ~ till date

Behavioural
Modern
Scientific Administrative Science
Management
Management Management Movement in
Thought
Management

FW Taylor : Father of Henri Fayol : Father of Application of Psychology - Marry Parker Follet (1933) :
Scientific Management Modern Management in Management Mother of Modern
-Principles of Scientific Theory Management, ‘Neither working
Management (1911) : - Administration Elton Mayo (1933) – for someone nor paying
Industriellee (1916) Hawthorne Studies, someone's wages ought to give
Engineering means to
you power over them.’
enhance productivity Application of Psychology
‘Art of Getting Things Done
-Shop Management Divided industrial in Administration, through People’ (Socialistic &
(1903) : methods of activities into 6 groups Marketing etc. Humanistic)
managing operation (Technical, Commercial, - Frederick Herzberg
Financial, Security, Max Weber: Theory of (1923~2000): Two Factor
Henry Gantt (1901) – Accounting and Bureaucracy (1946~47) – - McGregor (1960: Theory X, Y)
Gantt Chart (Project Managerial) Organization structure - Maslow (1908~1970)
Schedule) and technical expertise - Laurence Peter (1969) – To the
Formulated 14 based groups for creating level of incompetence
Frank and Lillian Principles of efficiency. For a complex - Peter Drucker (1909 ~ 2005)
Gilbreath (1900) Management organization, bureaucracy - Edward Deming (1900-1993) :
-Time Study and Motion is must (word now carries Total Quality Management
Study a negative meaning)
Henri Fayol’s 14 Principles of Management

Division of Unity of Unity of

Authority Discipline Order
work command direction

Scalar chain Centralization Remuneration Interests Equity Stability

Esprit de corps (in

Initiative union there is
strength)
 Session 2 : Assignment

Write within 2000 words (and illustrative pictures) the Evolution of Management Concepts.
Session 3
Managerial Process

1. Planning

5. Control
Managing 2. Organizing

4. Directing
/Leading 3. Staffing

Video
 Project Assignment:

Directing/
Planning Organizing Staffing Controlling
Leading

Examples
1. McDonald What are planning What is the How many staff? How do you How are progressing
Outlet activities for the organization communicate, against your plan?
Manager manager? structure? Is it How do they recruit, motivate and ensure
most effective pay, train and retain your people take What actions do you
2. Decathlon How do they do it? one? their staff? ownership? take when you
Outlet deviate or fail (not
Manager How can it be How can it be How can it be How can it be able to meet) in
better? more effective? improved? improved? terms of your plan?
3. Big Bazar
Outlet Project Framework:
Process:
Manager
1. By visiting the outlet, interacting with Manager / Other staff  Introduction
2. Connecting through phone finding out someone into that kind of role -The organization / outlet
4. Haldiram
(say, one of your relative or friend in managerial function, take -Location / Catchment Area
Outlet -Sales Turnover
Manager interview, about his / her role as manager)
-Manpower
3. Searching corporate documents through net for general information -Profitability
 Planning
Final Objective:  Organizing
1. After 5th Sessions, any Study Group would be asked in any session  Staffing
about the progress of their project  Directing / Leading
2. Project submission at the end in the form of a video as well as final  Controlling
presentation  Coordination
3. Project might be shared with the concerned management for their
 Conclusion
study and possible benefit
11th & 12th Session for Final
Planning :
‘Not to plan is a plan to fail’

 Planning involves selecting missions and objectives and deciding on the actions to
achieve them. It requires decision making i.e. choosing a course of action from among
alternatives.

 Planning bridges the gap between where we are to where we want to go.

 Example of Mission Statements:

 "DuPont puts science to work by creating sustainable solutions essential to a better, safer,
healthier life for people everywhere.“ - DuPont

 “To search for oil and to produce, refine and market petroleum products, from diesel to
chemical” – ExxonMobil

 “To help customers achieve their business objectives by providing innovative, best-in-class
consulting, IT solutions and services.” – TCS

 Kennedy 25th May 1961 Mission Statement in front of Congress. US "should commit itself to
achieving the goal, before this decade is out, of landing a man on the Moon and returning
him safely to the Earth.“ (April 12, 1961 – Yuri Gagarin, 1st human in space - from Russia)
Types of Plans :

1. Mission or Purpose

2. Objectives or Goals

3. Strategies

4. Policies

5. Procedures

6. Rules

7. Programs

8. Budgets
Steps in Planning :

1. Being aware of opportunities :

(the market, competition, customer need, company strengths, weaknesses)

2. Setting objectives

3. Developing premises

(premises like forecast, applicable basic policies, existing company plans…)

4. Determine alternative courses

5. Evaluating alternative courses

6. Selecting a course

7. Formulating derivative plans

8. Quantifying plans by budgeting

Decision Making:
- A planning process must end up with a clear decision i.e. what would be done next as course of action
- Decision making is considered as the core of planning
- It is about selecting a course of action from among alternatives

Experiments

How to select
Reliance on
among Choice made
the past
alternatives

Research and
Analysis

- Decisions under ‘Certainty’, ‘Uncertainty’, and ‘Risk’ – Implication on Delegation

- Decision making is extremely important for a leader and manager in a VUCA world
 Session 3 : Assignment

Consider A Case as your Institute (Jaipuria Institute of management, Noida).

Define all 5 Functions of Management on above organizational context:

1. Planning :

2. Organizing:

3. Staffing:

4. Directing/Leading:

5. Control:
Session 4
Organizing:

 Why we need to organize?

 Different ways that we can organize (organization structure)?

 Advantages and disadvantages of different types of organization structure?

 Implication of different types of organizational structure into efficiency and productivity?

 Formal Vs Informal Organization Structure

What is this organization?
Organization:

 Line vs Staff

 Span of Control

 Functional

 Divisional

 Strategic Business Unit (SBU)

 Matrix
Organization Structure:

Advantages and disadvantages of this

type of organization structure?

http://www.yourarticlelibrary.com/organization/8-types-of-organisational-structures-their-advantages-and-disadvantages/22143
Organization Structure:

Advantages and disadvantages of

this type of organization structure?

http://www.yourarticlelibrary.com/organization/8-types-of-organisational-structures-their-advantages-and-disadvantages/22143
Organization Structure:

Advantages and disadvantages of this

type of organization structure?
Organization Structure:

Advantages and disadvantages of

this type of organization structure?
Organization Structure:

Advantages and disadvantages of this

type of organization structure?
Organization Structure:

Advantages and disadvantages

of this type of organization
structure?

Project

Project

Project
Organization:

Formal vs Informal
 Session 4 : Assignment

A large manufacturing organization, with an annual sales turnover of more than INR
10,000 Cr and total number of employees of around 9500, is spread across India and
abroad having Head Office (HO) in Delhi. It has 12 manufacturing plants (9 in India and 3
in abroad). The operation of each plant is run by respective Manufacturing Heads for
the plant. The manufacturing heads report to President. Apart from manufacturing
units, there are centralized support functions (Finance, HR, Sales, Marketing, Supply
Chain, R&D etc.) at the Head Office. These centralized support functional heads also
report to President, who is accountable to Managing Director (MD).

Every Manufacturing Head is having several departments at unit level under him. He has
Production, Engineering, Materials, Accounts, HR etc. for smooth running of the unit.

Prepare a detailed Organization Structure for the above organization on the A4 size
paper given to each of the Study Groups.
Session 5
 The Origin of People Assessment

The King shall thoroughly investigate all the qualities of anyone whom he is considering for
appointment as a minister. Of these qualities, nationality, family background and amenability to
discipline shall be verified from reliable people (who know the candidate well). The candidate’s
knowledge of the various arts shall be tested by experts in their respective fields. Intelligence,
perseverance and dexterity shall be evaluated by examining his past performance, while eloquence,
boldness and presence of mind shall be ascertained by interviewing him personally. Watching how
he deals with others will show his energy, endurance, ability to suffer adversities, integrity, loyalty
and friendliness. From his intimate friends, the King shall find out about his strength, health and
character (whether lazy, or energetic, fickle or steady). The candidate’s amiability (absence of a
tendency to hate) shall be ascertained by personal observation.

BC 321 - Pataliputra,
Composition of Arthashastra by Kautilya

(Source picture : Internet)

Staffing

Knowing
Being
Knowledge Attitude
(K) (A)

Effectiveness
Skill
(S)

Doing

Identify what the strengths in this candidates that interviewers would like to offer him?

Video
Staffing

Access to machinery and equipment is not the differentiating factor today.

Ability to use it effectively is. A company that lost all of its equipment but
kept the skills and know-how of its workforce could be back in business
relatively quickly. A company that lost its workforce, while keeping its
equipment, would never recover.
 Study: 1

COST OF “MIS-HIRE”

Performance of Persons Recruited to ‘Key Positions’ (After 1 Year)

Good: 49% (17% ‘A’ Players, 32% ‘B’ Players)

Not Good: 51% (‘C’ Players, Performance much below expectations)

Research has shown that ‘A’ Player Performance is ‘220%’ as compared to ‘B’ or
Average Players’ Performance.

(Data based on “Topgrading : How to build ‘A’ Player Team” by Dr. Bradford
Smart, Prentice Hall Pub)
 Study: 2

COST OF “MIS-HIRE” BASED ON SURVEY OF 54 LARGE ORGANISATIONS IN USA

(2 YRS PERIOD COST)
CTC = Cost to company
25 to 40 times of CTC for each ‘Mis-Hire’

FOR TOP MANAGEMENT POSITIONS  Considering CTC of INR 50 lacs per annum, this will be
(KEY BUSINESS POSITIONS)
staggering figure of INR 12 ~ 20 crores per annum

 Major cost is on mistakes, failures, missed business

opportunities, loosing existing customers, loosing
market share and lost profits etc.

 Intangible cost (difficult to estimate and costly to repair)

are low team work, low morale at work, negative
climate, exit of talent, lowered co. image/ co. brand
value, customer / consumer trust etc.

2 to 4 Times of CTC considering CTC of INR 8.0 lacs per

FOR WORKERS & FIELD SALES PEOPLE annum, the cost of Mis-hire would be INR 16.0 to 32.0
lacs per annum

(Data based on “Topgrading : How to build ‘A’ Player Team” by

Dr. Bradford Smart, Prentice Hall Pub)
 Study: 3

ROI (Return on Investment) Comparison

• Return on plant and equipment <10 %

• Return on capital employed < 15%
• Return on people (Salary multiplier to revenue 700%)
• Return on top performers in key positions 7000 %

- Source : Dr. John Sullivan

• What impact does recruiting top performers have?

• Jack Welch says that a star is worth 5-10 average performers
• Bill Gates says its 100 times

- Developed by Human Management Solutions Ltd

• Only ‘A’ players hire and promote ‘A’ players. ‘B’ or ‘C’ players hiring or promoting ‘A’
players are unlikely.
- Jack Welch
 Study: 4

Factors that impact need to develop talent bench

 Corporate officers said (40%) that company growth was limited because they didn’t have right talent

 Corporate officers reported (75%) that their company is chronically short of leadership talent

 Within next 5 years, average company will lose 30% of its executive staff

 Failure rates are high (40-50%) when executive talent is hired from outside

 Employees say company leadership is a key contributor to job satisfaction, commitment and intent
to stay; especially true for top talent

 Recent surveys state that employees value most the leadership qualities of honesty and integrity

 Only 1% of companies rate their succession management plans as excellent; two-thirds rate them as
fair or worse

─ McKinsey, The War for Talent, Right’s People Brand Research Report, DDI Executive Development & Succession Management
 Study: 5

CORRELATION OF VARIOUS ASSESSMENT METHODS TO JOB

PERFORMANCE

(Ref “Competence at Work - Models for Superior Performance”

By Spencer, John Wiley Publications Pg 242)

Methodology Correlation (r)

1. Competency-based Assessment Center 0.65

2. Behavioral Event Interview (BEI) 0.48 – 0.61

3. Ability Tests 0.54

4. ‘Modern’ Personality Tests 0.39

5. Structured Competency based Biodata 0.38

6. Robust Reference Checks on Competencies 0.23

7. Normal Interview 0.19

Staffing

 What is Staffing?

 External and Internal Environment Affecting Staffing

 Position Requirement

 Recruitment and Selection

 Orientation

 Performance Appraisal

 Career Development

 Capability Development

 Managing Change and Organization Development

Selection Capability Building

1. Job Description Final Panel Interview: Structured Induction:

2. Profile Requirement
• Knowledge
• Skill (Leadership)
• Attitude (Psychometric)
3. Five Major Business
Challenges the next 2-3 yrs.
4. Major Goals for 1st Year
 2-3 Candidates
 Psychometric Test
 Competency based
Interview
 Culture & Value Fit
 Finalize (with salary and
expectation negotiation)
• HR gives written report on
Competencies, psychometric
evaluation to Superior.
• Sign-off of GOALS / KRAs
Decide to
• HR meets quarterly and
Continue
gives feedback to superior
or
• Superior meets one-on-one
Separate

Step 1 Step 3 Step 5 Step 7

Step 2 Step 4 Step 6

Co CV Form + Candidates CV  Robust • Quarterly Review by

Receiving & Short listing Reference Superior
Preliminary Interview: Checks • Annual Performance
Covering:  Offer Evaluation against
 Functional & Technical Competencies GOALS
 Experience
Shortlisting
Job – Person – Business Fit: Requirement
Attitude
Job Description Profile Requirement (Leadership) Business Challenges
Occupational Personality (OPQ): A. Five Challenges in next 2~3
A. Role Purpose:
• Conscientious
years
-------------------------------------------- • Achieving (6~8) ____ ____ (6~8) ____ ____
-------------------------------
• Forward Thinking (6~8) ____ ____ • Conventional (1~4) ____ ____
-------------------------------------------- • Outgoing (6~8) ____ ____ • Innovative (6~8) ____ ____ -------------------------------
• Competitive (6~8) ____ ____ • Democratic (6~8) ____ ____
-------------------------------------------- • Persuasive (6~8) ____ ____ • Socially Confident (6~8) ____ ____ -------------------------------
B. Core Function: • Data Rational (6~8) ____ ____ • Trusting (6~8) ____ ____
• Tough Minded (6~8) ____ ____ • Decisive (6~8) ____ ____ -------------------------------
--------------------------------------------
-------------------------------
--------------------------------------------
-------------------------------------------- B. One year goal

C. Sub Functions: -------------------------------

-------------------------------------------- -------------------------------

-------------------------------------------- -------------------------------
-------------------------------------------- Skill -------------------------------
(Leadership)
D. Reporting to: -------------------------------
-------------------------------
--------------------------------------------

-------------------------------------------- Remarks:
E. Reports:

Functional Competency: Low Medium High Very High

--------------------------------------------
a)
F. Qualification: b)

-------------------------------------------- c)
d) Knowledge
--------------------------------------------
e) (Functional)
-------------------------------------------- f)

-------------------------------------------- g) (Signature-Key Stakeholder & HR)

 Session 5 : Assignment

Following is a overview sketch of organization of your Institute.

Director

Head Dean Head *Head

Admission Academic Administration Training & Placement

Imagine that your Study Group is given the task of defining the Role of Head-Training & Placement.
Please describe the following:

 Job Description:
 Position Requirement (Knowledge, Skill, Attitude):
 Required Professional and Personal Attributes:
 Key Strength Areas:
 Annual Goals and Targets:
Session 6
Directing / Motivating

Human Factors in Managing :

 Multiplicity of Roles

 No Average Person

 Importance of Personal Dignity

 Consideration of the Whole Person

Video
 Case-1
Motivating

You are managing an investment advisory firm, which has a key process of
making calls in order to convert prospects into new customers through phone,
for which it recruits fresh graduates. The process of blind calls and converting
them to clients has poor ratio of 3 clients out of 100 calls. For the job of calling
and handling clients, it targets students who need cash to meet their basic
needs and fund their education. Yet the firm finds that it has very high
turnover of employees, many of the employees leaving within a month,
sometimes without even collecting their pay for days served.

1. Identify the possible reasons for low motivation of employees in above situation?

2. How can you use motivation theories to improve employee productivity and retention?
Motivation :

1. Frederick Herzberg : Two Factors (Hygiene and Motivator i.e. Context vs Content)

2. McGregor : Theory X, Y and their assumptions

3. Maslow : Need Hierarchy

4. Alderfer’s ERG : Existence Needs, Related Needs, Growth Needs

5. Vroom’s Expectancy Theory of Motivation: Force = Valence X Expectancy

(‘force’ is strength of a person’s motivation, valence is strength of an individual’s preference
for an outcome, expectancy is the probability that an action will lead to desired outcome)

6. Equity Theory : Outcomes by a person / Inputs by a person = Outcomes by another

person / Inputs by another person

7. McClelland’s Needs Theory : Need for Power, Need for Affiliation, Need for
Achievement
Session 7 & 8
Leadership :
 Vision
 Mission
 Values
 Goals
 Planning
 Decision Making
 Taking Risk
 Organizing
In context of the video, examine:
 Staffing
 Directing
 Creating Followership
 Building Team
 Leading
 Control
 Self-confidence
 Winning Spirit

Video
Leadership Theories :

1. Emotional Intelligence Approach to Leadership

2. Transactional Vs Transactional Leadership

3. Leadership Style Based on Use of Authority (Autocratic, Democratic or Participative, Free-rein)

4. ‘Great man’ Theory – leaders are born and not made

5. Trait Approaches - physical, mental and personality traits

6. Charismatic Leadership Approach (encouraging particular behaviors in others by way of

eloquent communication, persuasion and force of personality)

7. Managerial Grid (Concern for People Vs Concern for Task)

Leadership :

8. Situation or Contingency Approach to Leadership : Leaders are products of situations (Mao

Zedong, Roosevelt, Winston Churchill, Gandhi etc.)

9. Fiedler’s Contingency Approach : Situational Factors are 1. Position power, 2. Task structure, 3.
Leader-member relations. He spoke about ‘favorable’ vs ‘unfavorable’ situations. In
‘unfavorable’ or ‘favorable’ situations, task-oriented leader would be most successful

10. Leadership as a Continuum (a variety of styles from totally boss-centered to totally

subordinate-centered, which depends on leader, follower and the situation)

11. Path-goal Approach to Leadership Effectiveness (Function of Leader > Leader Behavior >
Motivated Subordinates > Effective Organization. The leader behavior is influenced by
characteristics of subordinates and work environment. Leader’s behavior is categorized into 4
groups : Supportive, Participative, Instrumental and Achievement-oriented leadership)

12. Situational Model by Hersey and Blanchard

Contingency: a future event or circumstance which is possible but cannot be predicted with certainty
 Emotional Intelligence

Self Others

Self-awareness Social Awareness

Awareness

The Top 10 Leadership

• Emotional Self-awareness • Empathy Competencies for Future :
• Organizational Awareness

1. Social Intelligence (SI)

2. Interpersonal Skills
3. Emotional Skills
4. Prudence
5. Courage
6. Conflict Management
Actions

7. Decision Making
Self Management Relationship Management 8. Political Skills
• Influence 9. Influencing Skills
• Emotional Self-control 10.Domain Expertise
• Coach and Mentor
• Achievement Orientation
• Conflict Management
• Positive Outlook
• Inspirational Leadership
• Adaptability
• Teamwork

https://www.psychologytoday.com

64
 Case-2
You are a Branch Manager for an FMCD company at Chandigarh, where you have been transferred very recently from
another branch, where you have been managing the branch during last 3 years. Your performance rating always been very
high and management expects that you would make this branch too a very successful one by achieving more than 100%
targets. The performance of the branch during last three years was not good. It has been able to achieve only an average of
80% (75%, 85% and 80% respectively during last three consecutive years) against its annual targets. The Company is very
target and achievement oriented. It expects every branch must achieve minimum 100% of its annual target.

You have eight members in your team to support you. Out of the eight, three members (Ramesh, Suresh and Vikram) are
highly skilled Area Sales Managers and working in the branch for last six years. Another two members (Radhika and Komal)
are in the branch for last three years. While Komal looks after marketing as Branch Marketing Manager, Radhika takes care
of accounting as Branch Accountant. Out of remaining three members, two (Varun and Tarun) are only 6 months old in the
branch, joined as fresh Management Trainees from Jaipuria Institute of Management, Noida. The last member, Jivesh
joined last month, being transferred from another branch based on his request to the management that he is urgently
required for taking care of his parents as they reside in the same city. Parents are old and undergoing treatment of some
serious ailments. Jivesh looks after the service operations as Branch Service Manager.

After joining this branch, you have frequently observed that the junior members in the team are scared of senior members
specially, while working with Vikram. Vikram being senior most in the team, had an aspiration of becoming Branch
Manager, which could not happen as the management feels that he needs some more time to be ready for the job specially
needs to develop better people management skills. Out of two Management Trainees, while Varun stands to be very good
learner, Tarun appears to be highly insincere in work and his self-initiative is low. Komal is also looking for a transfer to
Lucknow, her native town, where her parents looking forward to getting her married. It appears that previous Branch
Manager had very less control over the people and business operations. The team spirit appears to be low with low team
morale. Few days visits of Branch Manager to main dealers and distributors, gives an impression that the previous Branch
Manager used to be managing more by sitting at the branch office than being in the field. Management expects you to
make a difference in the branch based on your experience and leadership qualities.

What styles of leadership would you apply on the above situation? Give individual specific as well as team based approach
and initiative that you would apply in order to build a strong team that would drive the business goal to the expectation of
the management.
Situational Leadership Styles

(H)
S3 S2
Supporting Selling

Supportive
Behavior
S4 S1
Delegating Telling

(L)

(L) Directive Behavior (H)

Source: Lowy, Alex. And Hood, Phil. The Power of the 2X2 Matrix, New Jersey : Jossey-Bass Business & Management ,2004.
(Originally from Hersey, P. The Situational Leader, New York : Warner Books. 1992.)

66
Situational Leadership Styles

(H)
Low Direction High Direction
and and
High Support High Support

S3 S2
Supportive
Behavior
S4 S1

Low Direction High Direction

and and
Low Support Low Support

(L) (H)
Directive Behavior

Source: Lowy, Alex. And Hood, Phil. The Power of the 2X2 Matrix, New Jersey : Jossey-Bass Business & Management ,2004.
(Originally from Hersey, P. The Situational Leader, New York : Warner Books. 1992.)

67
Leadership :
Leadership :
 Path-Goal Approach to Leadership Effectiveness

Characteristics
of subordinates

Functions of Leader Motivated Effective

the leader Behavior subordinates organization

Work
environment

 Supportive Leadership
 Participative Leadership
 Instrumental Leadership
 Achievement-Oriented Leadership
 Developing Influence

Successful managers quickly develop and control enough of his or her

power so that he or she can influence others to achieve the team’s goals.

Personal “Functional Capability”

• Expertise Area required
Capability to develop &
• Reference
“Leadership”

• Legitimacy Equal positions

Position-based Area given by
• Coercion between managers
Power organization
within specific
• Reward organization

Therefore, to have good influence on his or her followers, manager

should develop their personal leadership capabilities and expertise.

72
The 4 E’s of Leadership

Energy:
Individuals with energy love to “go, go, go.” These people possess boundless energy and get up
every day ready to attack the job at hand.

Energizers:
Know how to spark others to perform. They outline a vision and get people to carry it out.
Energizers know how to get people excited about a cause or a crusade. They are selfless in giving
others the credit when things go right, but quick to accept responsibility when things go awry.

Edge:
They know how to make the really difficult decisions, such as hiring, firing and promoting, never
allowing the degree of difficulty to stand in their way.

Execute:
The key to the entire model. Without measurable results, the other “E’s” are of little use.
Executers recognize that activity and productivity are not the same and are capable of
converting energy and edge into action and results.
 Group Presentations on Leadership Theories :

1. Emotional Intelligence Approach to Leadership

2. Transactional Vs Transactional Leadership
3. Leadership Style Based on Use of Authority
4. ‘Great man’ Theory
5. Trait Approaches
1 page, 2 minutes presentation
Groups: 6. Charismatic Leadership Approach (5 Marks)
7. Managerial Grid
8. Situation or Contingency Approach to Leadership
9. Fiedler’s Contingency Approach
10. Leadership as a Continuum
11. Path-goal Approach to Leadership
12. Situational Model by Hersey and Blanchard
Session 9
Management Process : Controlling

Planning

Organizing
Controlling
& Staffing

Leading
Management Process : Controlling

1. Control Process

2. Control Organizational Performance Indices

3. Control Employee Performance

Tools for Measurement

Controlling : 1. Management Process

Standard Measurement / Tools

Physical Standard Quality, Labor spent etc.
Tangible

Cost Standard Material cost, Service cost etc.

Capital Standard Capital invested, Balance Sheet etc.

Revenue Standard Average Sales, Sales in a given market etc.

Programme Standard Programme to improve quality (Six Sigma), New Product

development etc.
Intangible

Can’t be or difficult to measure Culture building, Advertising, Brand promotion etc.

Tangible Sales figures, Productivity, margin, profit etc.

 Goals as Standards Employee Morale, Talent management, Culture
Intangible
Building, Brand Promotion etc.
Controlling : 2. Organizational Performance Indices

Factors Actual Results Expected Results Variance Action Needed

Corporate Revenues
Corporate Profits
Corporate ROI
Region 1
 Revenue
 Profit
 ROI
Region 2
 Revenue
 Profit
 ROI
Region 3
 Revenue
 Profit
 ROI
Region 4
 Revenue
 Profit
 ROI
Feedback

‘Getting to know what is happening’

Feedback = know after it has happened

(e.g. sales review of last week/month/year)

Concurrent Feedback = know when it is happening

(e.g. Google monitoring click on an add on real time)

Feed Forward = attempt to know before it has happened

(e.g. sales forecast based inventory planning, McDonald training potato cultivators,
bakers of bread for their desired quality)
Controlling : 3. Employee Performances (Balance Score Card : BSC)

 Rate of Overdue Loans

 Expense / Income Ratio
 Return on Capital
 Increased Margin
Financial  Capital Growth Rate

 Speeding up the service

 Electronic Service  Competitive Pricing
 Online service  High Speed Service
 Advance service  High Quality Service
Internal Vision &  Customer Satisfaction

Strategy Customer  Customer Attraction Rate

Process

Learning
& Growth  Increase KSA
 Increase Moral and Motivation
 Increase Personal Proficiency
 Increase Confidence for Higher Goals

Adapted from Kaplan & Norton

Goal Description Form for the Selected Task from Balance Score Card (BSC)

Selected task : ____________________________________________

Key
Key Result
Expected BSC Performance Performance Weight
Area
Outcome of task Perspective Indicator Level (%)
(KRA)
(KPI)

Financial

Selected Customer
task from
Internal
Balance Process
Score card
Learning &
Growth
Controlling : Corrective Action

1. Alter the firm’s structure

2. Replace one or more key individuals

3. Divest a division

4. Alter the firm’s vision or mission

5. Revise objectives

6. Alter strategies

7. Devise new policies

8. Install new performance incentives

9. Raise capital with stock or debt

10.Add or terminate salespersons, employees, or managers

11.Allocate resources differently

12.Outsource business functions

Session 10

Guest Lecture
Session 11 & 12

Group Presentations
Thank you