CHAPTER 3

•MANAGER SKILLS
•DECISION MAKING
•BUSINESS ETHICS & SOCIAL
RESPONSIBILITY
 Business Plan 
• A business plan is a formal statement of business goals, reasons they are
attainable, and plans for reaching them. It may also contain background
information about the organization or team attempting to reach those
goals.
• Business plans may target changes in perception and branding by
the customer, client, taxpayer, or larger community. When the existing
business is to assume a major change or when planning a new venture, a 3
to 5 year business plan is required, since investors will look for their
investment return in that timeframe.
 Managerial Skills

Top
Managers Conceptual Skills

Middle Human
Managers Skills
Technical
Lower-Level Skills
Manager
 Managerial Skills
• Conceptual Skills:- Conceptual skill are the skills managers use to think and to
conceptualize about abstract and complex situations. Using these skills, managers
see the organization as a whole, understand the relationships among various
subunits.
• Human Skills:- Human skills which involve the ability to work well with other people
both individually and in groups. Managers with good human skill gets the best out
of their people. They know how to communicate, motivate, lead and inspire.
• Technical Skills:- Technical skills are the job-specific knowledge and techniques
needed to proficiently perform work tasks. These skills tend to be more important
for first line managers because they typically manage employees who use tools and
techniques to produce the organization’s product.
CASE STUDY OF MANAGER SKILLS
ON
TAJ HOTEL, MUMBAI
 TAJ HOTEL
One of the iconic
hotel of India.

Taj Hotel is incorporated by

founder of
TATA Group in 1903

Numbers of rooms are 560

22 Floors
 Taj Hotel 26/11 Attack
Almost 160 people died in Taj Hotel

Estimate loss is around about 400 crore.

4000 painting, antique pieces was damaged

 MANAGEMENT OF TAJ HOTEL

Hired artichitect, interior PMO coordinate the entire

designer, structural project. The role of PMO was
Rebuilding to strategize, plan, execute,
consultant, mechanical
and and monitor overall work, they
engineer, plumbing
Restoration also ensure work progressed
consultant, security and
safety consultant, artesian, smoothly and maintain
worker quality.

Human resource management divide the project into

Finally 300 phase and time zone. Different designer based on
painting experience and capabilities worked on project, They
Project made out of also appointed specialized consultant from USA, UK and
Management 4000 Singapore and also brought craftsman, artesian from
Rajasthan.
Corridors of Taj Hotel
Ball room
The Heritage Wing Taj
Food & Beverage Room
The Tree of Life symbol for people who died in 26/11 attack
 Time Management
• “Time management” is the
process of organizing and
planning how to divide your
time between specific
activities. It is a way that you
organize and plan how long you
spend on specific activities.
 Steps in efficient Time Management
1. Organize your To-Do-List:- Get your to-
dos on paper. Keep a notepad handy to jot
down everything you have to do as each
occurs to you. Then, organize your to-dos
by type and use different paper or digital
folder for each such as “follow up” or
“people to contact”. Finally, schedule it.
Put each item on your calendar.
 Steps in efficient Time Management
2. Attack One type of action at a time:-
Making phone calls, to writing proposals,
to answering emails. Each type of action
require your brain to switch gears, stop,
then start again on the new task. Try
completing the same types of tasks
before moving to the next, it will save
time and increase your productivity.
 Steps in efficient Time Management
3. Eliminate distraction:- You probably
won’t be able to eliminate all
interruptions. People still need your
time and attention through the day
and you have to respond according to
that, So don’t hesitate to block out
time not to be disturbed. Let your
phone go to voice mail. Turn off your
email notification and instant
messaging.
 Steps in efficient Time Management
4.Plan For – and Take Break:- It’s
important to relax throughout
your day. You’ll actually return
recharged and more productive.
It’s not necessary to handle each
new task as it comes in.
 Steps in efficient Time Management
5. Communicate:- Last step in time
management is to schedule time
to communicate with others on
high-priority tasks and projects.
Start recording your thoughts,
conversation and activities so you
can get an idea of exactly how
much of your day you spend on
each.
 Decision Making
• Decision making is a process of selection of alternatives
course of action which is thought to fulfil the objectives
of the decision problem more satisfactorily than others.
• According to Haynes & Messie:-’’Decision making is a
course of action which is consciously chosen for
achieving a desired result”.
 Steps in Decision making
1. Identifying a Problem
2. Identifying decision criteria
3. Allocating weights to the criteria
4. Developing Alternatives
5. Analyzing Alternatives
6. Selecting an Alternative
7. Implementing the Alternative
8. Evaluating Decision Effectiveness
 Step in Decision Making
•Memory and storage •Memory and storage ................ 10
Buy mobile phone •Display quality •Battery Life ........................... 8
•Battery life •Weight ........................ 6
•Warranty................... 4
•Warranty •Display quality................. 3
1. Identification of problem •Weight

“Samsung” 2. Identification of decision criteria

7.Implementation 3. Allocation of weight to criteria

Sony Apple i Phone Sony Apple i Phone Sony Apple i Phone

Micromax Gionee Micromax Gionee Micromax Gionee
OppoIntex Oppo Intex Oppo Intex
SamsungVivo Samsung Vivo Samsung Vivo

6.Selection of alternatives 5. Analysis of alternatives 4. Development of alternatives

 Steps in Decision making
1. Identifying a Problem:- First steps in decision making is to identifying
the problem. Every problem have their solution with the help of
decision making process and steps we can identifying the best
alternative solution for problems. For ex. Decision make to choose
best mobile phone buying.
2. Identifying decision criteria:- Once a manager has identifying a
problem, he or she must identifying the decision criteria that are
important or relevant to resolving the problem. For ex. Choose phone
according to these criteria Memory and storage, Display Quality,
Battery life, Warranty, Weight are the relevant criteria in her decision.
 Steps in Decision making
3. Allocating weights to the criteria:- Decision maker must
weight the items in order to give them correct priority in
the decision. A simple way is to give the most important
criteria a weight of 10 and then assign weight to the rest
using that standard.
Memory and storage 10
Battery Life 8
Weight 6
Warranty 4
Display quality 3
 Steps in Decision making
4. Developing Alternatives:- The fourth step in the decision making process
require the decision maker to list viable alternatives that could resolve the
problem. This is the step where decision maker need to be creative. At this
point, the alternatives are only listed, not evaluate.
Mobile Phones Memory and Battery Life Weight Warranty Display Quality
Storage
Sony 10 3 10 8 5
Micromax 8 7 7 8 7
Oppo 8 5 7 10 10
Apple i Phon 8 7 7 8 7
Geeoni 7 8 7 8 7
Intex 8 3 6 10 8
Samsung 10 7 8 6 7
Vivo 4 10 4 8 10
 Steps in Decision making
5. Analyzing alternatives:-Once alternatives have been identifying, a decision
maker must evaluate each one. By using the criteria established in step 2.Multiply
each alternative by the assigned weight, you will get the weighted alternatives.
Then total score for each alternatives.

Mobile Memory and Battery Life Weight Warranty Display Total

Phones Storage Quality
Sony 100 24 60 32 15 231
Micromax 80 56 42 32 21 231
Oppo 80 40 42 40 30 232
Apple i fon 80 56 42 32 21 231
Gionee 70 64 42 32 21 229
Intex 80 24 36 40 24 204
Samsung 100 56 48 24 21 249
Vivo 40 80 24 32 30 206
 Steps in Decision making
6. Selecting an alternative:- The sixth step in the decision- making
process is choosing the best alternative or the one that generate the
highest total in step 5. for ex. Samsung would be choose because it
scored highest. Phones
Mobile Memory
and
Battery Life Weight Warranty Display
Quality
Total

Storage

Sony 100 24 60 32 15 231

Micromax 80 56 42 32 21 231
Oppo 80 40 42 40 30 232
Apple i phone 80 56 42 32 21 231

Gionee 70 64 42 32 21 229
Intex 80 24 36 40 24 204
Samsung 100 56 48 24 21 249
Vivo 40 80 24 32 30 206
 Steps in Decision making
7.Implementing the alternative:- The seventh step in decision making
is to implement the alternative decision but before implement,
manager should reassess the environment for any changes,
especially with a long term decision. Are the criteria, alternatives and
choices still the best ones, or has the environment changed in such a
way that you need to re-evaluate?
8. Evaluating decision effectiveness:- The last step in the decision
making process involves evaluating the outcomes or result of the
decision to see if the problem was resolved. If the evaluation shows
that the problem still exists, then manager need to assess what went
wrong.
 Business Ethics
• Ethics:- It is the principles, values and beliefs that define
what is right and what is wrong decisions and behaviour.
• Business Ethics:-Business ethics refers to the moral
principle which should govern business activities. These
provide the code of conduct for managers. The purpose of
business ethics is to guide the managers & employees in
performing their jobs.
 Example of unethical behaviour by managers
• Takafumi Horie, founder of the Tokyo- based Internet
company Livedoor, was sentenced to 2.5 years in jail for
securities violations.
• Former WorldCom CEO Bernie Ebbers is serving a 25 years
prison sentence for financial fraud, conspiracy and false
filings.
• Wal-Mart fired 7 top managers for failing to meet company
standards and issued an extensive ethics policy to employees.
 Social Responsibility
Social responsibility means eliminating corrupt, irresponsible
or unethical behaviour that might bring harm to the
community, its people or the environment before the
behaviour happens.
Social responsibility is the idea that businesses should balance
profit-making activities with activities that benefit society; it
involves developing businesses with a positive relationship to
the society in which they operate.
 Corporate Social Responsibility
• Corporate social responsibility is a business approach that
contributes to sustainable development by delivering
economics, social and environment benefits for all
stakeholders.
• CSR is how about companies manage the business
processes to produce an overall positive impact on society,
customer, employees, shareholders, communities, union.
 NEPAL INVESTMENT BANK LTD.
 UNHCR:- The bank donates Rs. 900000 to UNHCR as a
part for educational support for Bhutanese refugee
students. United Nations High Commissioner for
Refugee Agency(UNHCR) is mandated by United
Nations to resolve problem of refugee worldwide.
 NCO(Nepal Children's Organization):- The bank
donates 75000 to NCO to improve the lives of
orphaned children.
 Pashupati Briddashram:- NIBL organized charity event
to aid Pashupati Briddashram which is the oldest old-
age home in Nepal.
 MEGA BANK
 Mega bank provided financial assistance to Mr. B.K
Palpali who is a renowned writer, Journalist and a
lawyer. Mr. Palpali had suffered from kidney failure,
the bank supported Mr. Palpali for kidney transplant.
 Donation for reconstruction of school building in
Kanchanpur.
 The bank provide support to Sunsari Chamber of
Commerce and Industries for installation of CCTV
cameras in the main road of Dharan;
 TATA GROUP
 Tata group has a range of CSR projects.
 Providing maternal and child health services, family
planning.
 Endorses sports, it established a football academy, archery
academy and promote sports among employees.
 It provide healthcare services all over the country with
programs like rural health development.
 Tata group organized relief program in case of natural
disasters.
 It support 500 schools by providing education programme
to underprivileged children.
CSR towards different interest group
Government

Employee
Community

Business Firm
Suppliers
Creditors

Customers Shareholder
 Responsibility towards Customer
 Satisfying customer:- No business can survive without customer so business
obligations are to meet the expectation of customers by delivering the right
product or service with desirable quality at the right time, right place and fair
price.
 Improve standard of living:- Other responsibility that companies have towards
consumers are improving the standard of living through delivery of high quality
product.
 Fair advertising:- Companies must keep a fair advertising and trading standards
and not mislead the consumers into something that is not true. If customers have
any complaints and quires, Companies are obliged to deliver prompt and
courteous attention to such issue.
 Responsibility towards Employee
 Meaningful Work and Job Satisfaction:- In a country like Nepal, the job
opportunities are limited with a serious problem of unemployment. Therefore,
to provide a good work, proper working conditions and job security are the
social responsibility of an organization.
 Fair remuneration:-Employee should paid sufficient wages and salary, and other
incentives like bonus, medical allowance, travelling allowance.
 Best physical & mental atmosphere
 Health and safety measures
 Grievance procedure:- Handle employee complaint.
 Responsibility towards Shareholder
 Providing correct information:- Shareholder are those who invest money in an
organization or who are the owners of the organization should be provided
with correct information about company to enable them to give true or fair
position of company.
 Providing fair return:- Company should provide a fair return on the investment
made by shareholders. If shareholders do not get proper dividend then they
will hesitate to invest additional funds.
 Protect shareholder’s interest:- Company should strengthen the share prices by
its growth, innovation and diversification. At the same time shareholders shall
also offer wholehearted support and cooperation to the company to protect
their own interest.
 Responsibility towards Creditors
 Companies must seek fairness and truthfulness in all dealings
with suppliers especially pricing and licensing.
 One of the main responsibility of an organization towards
creditors is making timely payments according to the agreed
terms and conditions of the trade.
 Companies should make business transaction with suppliers
must be free from any form of coercion and unnecessary
litigation.
 Responsibility towards Suppliers
• Suppliers are the persons who supply semi finished goods, finished goods, raw
materials and other items required by the firms. Market demand conditions can
only be fulfilled on the basis of the supply of the raw materials. So the suppliers
are the part of the success of the business. Managers should always notice the
importance of the suppliers. Certain suppliers are called as distributors because
they supply finished products to the consumers. The responsibilities of business
towards these suppliers are,
• Giving regular orders to purchase goods
• Dealing with fair terms and conditions
• Maintaining reasonable credit period
• Dues should be paid timely
 Responsibility towards Environment
 Preservation of natural resources:- Scare natural resources should
be used very carefully as these are depleting at very fast rate. The
alternative sources can also be found out to save natural resources
like to save forest alternatives to wood and pulp can be found.
 Pollution control:- Appropriate steps should be taken to prevent
environment pollution and to preserve ecological balance. The
industrial waste should be disposed off carefully or if possible can
be recycled to minimise pollution.
 Responsibility towards Community
 Responsibility of business towards community and society
includes spending a part of profit towards civics and
educational facilities.
 Rehabilitating the population displaced by business units
should also the part of responsibility of business. Business
houses should set up units at those places where sufficient
space is available for housing colonies of workers.
 ETHICAL DECISION MAKING PROCESS
• 1. Gather the facts
• 2. Define the ethical issues
• 3. Identify the affected parties (stakeholders)
• 4. Identify the consequences
• 5. Consider your character and integrity
• 6. Think creatively about potential actions
• 7. Check your gut
 1 - GATHER THE FACTS
• Don’t jump to conclusions without the facts
• Questions to ask: Who, what, where, when, how, and why.
• However, facts may be difficult to find because of the
uncertainty often found around ethical issues
• Some facts are not available
• Assemble as many facts as possible before proceeding
• Clarify what assumptions you are making!
 2 – DEFINE THE ETHICAL ISSUE(S)
• Don’t jump to solutions without first identifying the ethical
issue(s) in the situation.
• Define the ethical basis for the issue you want to focus on.
• There may be multiple ethical issues – focus on one major
one at a time.
 3 – IDENTIFY THE AFFECTED PARTIES
• Identify all of the stakeholders
• Who are the primary or direct stakeholders?
• Who are the secondary or indirect stakeholders?
• Why are they stakeholders for the issue?
• Perspective-taking -- Try to see things through the eyes
of those individuals affected
 4 – IDENTIFY THE CONSEQUENCES
• Think about potential positive and negative consequences for affected
parties by the decision .
• What are the magnitude of the consequences and the probability that
the consequences will happen.
• Short term vs. Long term consequences – will decision be valid over time.
• Broader systemic consequences – tied to symbolic and secrecy
• Symbolic consequences – Each decision sends a message.
• Secrecy consequences – What are the consequences if the decision or
action becomes public?
5 – CONSIDER YOUR CHARACTER & INTEGRITY
• Consider what your relevant community members would
consider to be the kind of decision that an individual of
integrity would make in this situation.
• What specific virtues are relevant in the situation?
Disclosure rule – what would you do if the New York Times
reported your action and everyone was to read it.
• Think about how your decision will be remembered when
you are gone.
6 – THINK CREATIVELY ABOUT POTENTIAL ACTIONS
• Be sure you have not been unnecessarily forced into a corner.
• You may have some choices or alternatives that have not been
considered.
• If you have come up with solutions “a” and “b,” try to
brainstorm and come up with a “c” solution that might satisfy
the interests of the primary parties involved in the situation.
 7 – CHECK YOUR GUT
• Even though the prior steps have argued for a highly
rational process, it is always good to “check your gut.”
• Intuition is gaining credibility as a source for good
decision making – knowing something is not “right.”
• Particularly relevant if you have a lot of experience in
the area – expert decision-making.