MOB-Mod-2

Management & Organizational

Behaviour-MBA 101

Introduction to

Functions of Management
1. Planning: Importance, Process, Benefits of
Planning, Types of Plans, Planning tools and
techniques.
2. Organising: Meaning, Types of Organisation
structures, Traditional structures, Directions in
organisation structures.
3. Leading: Meaning, Nature, Traits and Behaviour,
Contingency approaches to Leadership,
Transformational leadership.
4. Controlling: Meaning, Importance, Steps in the
control process, Types of Control.
The roles of planning and controlling in the
management process
https://www.slideshare.net/Vikky991991/planning-72525723
The roles of planning and controlling in the
management process
 Takeaway 1: Why and How Managers Plan

• Benefits of planning:
– Improves focus and flexibility
– Improves action orientation
– Improves coordination and control
– Improves time management
 The 6 steps of the MBO process
1. Determining Organizational Goals
2. Determining Employees’ Objectives
3. Constant Monitoring Progress and Performance
4. Performance Evaluation
5. Providing Feedback
6. The Performance Appraisal
 Organizing
• Definition: Organizing is one of the most
prominent function of management that aims
attention at assigning and organizing human
as well as other financial resources
efficiently to carry out the plans of the
organization successfully.
• It also involved in constructing, establishing,
and managing working relationships and
requires the planning of tasks and an assorted
way to accomplish that task.
 Significance of Organising
1. Benefits in Specialization.
2. Role Clarity
3. Clarity in working relationships
4. Optimum utilization of resources
5. Coordination and effective administration
6. Adoption to Change
7. Expansion and growth
8. Development of personnel
 Process of Organizing
• Organizing is a process that manages how the
task is distributed amongst the employees and
departments and determines the policies to
be followed.
• The process of organizing consists of seven
steps; they are as follows:
• 1. Determining Targets
• Both financial, as well as social targets, should be
determined accordingly in a scheduled manner and
then managing them according to their priority and
categorize them as primary, secondary, long-term and
short-term targets.
• 2. Determining Actions
• The second step is to find out and make a list of
required actions to achieve the desired targets of the
organization such as preparing accounts, computing
sales, record-keeping,
• 3. Coordination of Actions
• organizing jobs into uniform work units,
departments, and segments, and all such functions
come under departmentalization. For grouping
purpose, distinct groups such as territorial, process,
functional, product
• 4. Distribution of Duties and Responsibilities
• The duties and responsibilities must be explicitly
delegated to each individual to avoid the duplication
of the work, as the best-suited individual will give his
best to his specific delegated work.
• 5. Assignment of Authority
• As one cannot perform their work without necessary
powers and authority and such authorities are given
according to their work and level. With the delegation
of work, a proper chain of command runs from top-
level to bottom level of employees.
• 6. Formation of Organization Charts and Manuals
• After delegating the work and authority to the
employees, organization charts and manuals are
prepared on the basis of the power, authority and
responsibility.
• 7. Organizing Actions
• Synchronizing all the actions and attempts of
all the employees is necessary to establish the
effectiveness of the specialized functions.
• The Interrelation between tasks and
employees must be pre-defined so that
everyone knows that, to whom they are
answerable and from whom they have to take
order
 ORGANISING
• departmentalization is the grouping of related functions into
manageable units to achieve the objectives of the enterprise in
the most efficient and effective manner.
• delegation is the process that makes management possible
because management is the process of getting results
accomplished through others. Delegation is the work a manager
performs to entrust others with responsibility and authority and
to create accountability for results. It is an activity of the
organizing function.
• scalar principle (chain of command) a clear definition of
authority in the organization. This authority flows down the chain
of command from the top level to the first or lowest level in the
organization.
• https://www.pacc.in/e-learning-portal/ec/
admin/contents/
22_BCM53_2020112905270051.pdf
• centralization occurs in an organization when a
limited amount of authority is delegated.
decentralization occurs when a significant amount
of authority is delegated to lower levels in the
organization.
• contingency approach is an approach to
organizational structure that states that the most
appropriate organizational structure depends on the
situation, consisting of the particular technology, the
environment, and many other dynamic forces.
 Introduction
2 major influences affect how individuals
perform:
1. The type of leadership that exists
2. Personal motivation

• Important to look at these two concepts as

interconnected and dependent on individual
situations
 What is motivation?
• Motivation is defined as “the extent to which
persistent effort is directed toward a goal”

1. Effort - must be defined in relation to its appropriateness to the objectives

being pursued.
2. Persistence - relates to the willingness of the individual to stay with a task
until it is complete
3. Direction - measured in terms of how persistent effort is applied in relation
to the goals being pursued
4. Goals - individual goals and organizational goals (must be compatible)
 Types of motivation
• Extrinsic Motivation
- Factors in the external environment such as
pay, supervision, benefits, and job perks
• Intrinsic Motivation
- Relationship between the worker and the task
 5 Ways to Motivate a Team
1. Figure out what makes them tick (individual
needs)
2. Give clear expectations
3. Consistent reinforcement and consequences
4. Healthy competition
5. Change out team members
 Activity 1 – Identifying Goals
• Create a thought web linking current and future goals
of the organization to internal or external motivators

• Example:

Goal: Increase sales by 10%

Motivators: Top seller receives financial bonus if goal is
reached (extrinsic)
Top seller gets to choose their next project (allowing
seller to pursue work-based interest would increase
intrinsic motivation)
 Needs-based Motivation
• Maslow’s Hierarchy of Needs:
 Physiological
 Safety
 Relationship
 Esteem
 Self-actualization

• The more you move from basic to higher level needs, the more motivation
depends on internal factors
• Important that organizations present opportunities to satisfy such needs
 Needs-based Motivation
• Alderfer’s ERG Theory:
 Existence
 Relatedness
 Growth

• Similar to Maslow’s Hierarchy in that it focuses on a differing levels of

needs, which are usually satisfied in order of importance
• Unlike Maslow’s theory in that it allows for higher needs to be met before
lower-level needs under certain circumstances
 Needs-based Motivation
• McClelland’s Theory of Needs:
 Achievement
 Affiliation
 Power

• Concerned with the behavioral consequences of need

• Non-hierarchical
 Needs-based Motivation
• These three theories present a useful
approach for thinking about organizational
behavior
• One is not inherently better than the other;
The point is to apply the concepts of
internal/external motivation to individual
situations
 Motivational Goals
Most goals fall within two categories:
• Performance goal - individual is concerned
with acquiring favorable judgment from his or
her peers, supervisors, or authority figures
(extrinsic)
• Learning goal - individual uses feedback to
increase his or her competence (intrinsic)
 Activity 2 – Needs and Motivation
• In small groups, answer the following
questions:
1. Whose needs are satisfied through my
organization? (Owners, employees, clients,
etc.)
2. What are some needs of each group?
(Relatedness? Achievement?)
3. What is the best way to address those needs
to reach goals?
 Leadership
• Once it is known what motivates people,
leadership can be thought of in relation to
individual situations
• Two main types of leaders:
 Emergent
 Assigned
 Leadership – Shaping Behavior
• Rewards – the most effective type of
reinforcement
 E.g. Compliments, tangible benefits, etc.
• Punishments – have minimal impact on
behaviour
 E.g. Reprimands, withholding of raises, unfavorable
task assignments, etc.
volatility, uncertainty, complexity,
and ambiguity
 Definition of Leadership
Leadership, according to Peter DeLisle,
is the ability to influence others, with or without
authority.
All successful endeavors are the result of human
effort; thus, the ability to influence others is a
derivation of
• Interpersonal Communications
• Conflict Management
• Problem solving
 Interpersonal Effectiveness
Interpersonal effectiveness is the capability of an
individual to do this, influence others,
competently.
Leadership is a direct function of three elements of
interpersonal effectiveness
• Awareness
• Ability
• Commitment
 Traits
• These are relatively stable psychological characteristics
that increase the likelihood of certain behaviors,
thoughts, and emotions. Some examples of leadership
traits include:
1. Adaptability: Effective leaders can think outside
2. Assertiveness: Leaders should be direct and assertive
3. Confidence:
4. Emotional stability: Leaders should be able to control
5. Integrity: Leaders should have integrity.
6. Self-awareness: Leaders should be self-aware.
 Behaviors
• These are how leaders act. Some examples of
leadership behaviors include:
1. Active listening: Leaders should actively listen to
others.
2. Communication: Leaders should be effective
3. Compassion: Leaders should be compassionate.
4. Constructive feedback: provide constructive feedback.
5. Encouraging creativity: Leaders should encourage
creativity by keeping lines of communication open.
6. Stability: Leaders should have a strong sense of
stability and establish regular routines.
1. Planning: Importance, Process, Benefits of
Planning, Types of Plans, Planning tools and
techniques.
2. Organising: Meaning, Types of Organisation
structures, Traditional structures, Directions in
organisation structures.
3. Leading: Meaning, Nature, Traits and Behaviour,
Contingency approaches to Leadership,
Transformational leadership.
4. Controlling: Meaning, Importance, Steps in the
control process, Types of Control.
Contingency approaches to Leadership
 contingency theory of leadership
• The contingency theory of leadership
effectiveness states that leadership styles are
dependent on the situation.
• When determining distinct leadership styles,
contingency theory highlights three main
factors. They are as follows:
• Traits.
• Behavior.
• Situation.
 Fiedler’s Contingency Theory has
two factors
a) Leadership Style: In this factor, you determine
your style of leadership. Fielder developed a scale
called the least preferred co-worker scale (LPC).
• The scale asks you to do the two simple things
to understand your leadership style-
• Think about the person who you’ve least
enjoyed working with.
• Then rate how you feel about this person for
each factor and add up your scores.
• According to this scale-
• The more you rate the person you least like
to work with, the more relationship-oriented
you are. I.e, High LPC =
Relationship-oriented leader.
• The less you rate the person you like the least
working with, the more task-oriented you are.
I.e, Low LPC = Task-oriented leader.
 b) Situational favorableness
• It is the second step that determines a particular
situation’s favorableness. It depends on three distinct
factors:
• Leader-Member Relations: Greater trust increases the
favorableness of the situation, and less confidence
reduces it.
• Task Structure: This factor measures the task’s
performance. It refers to the type of task you’re doing
• Leader’s Position Power: This is determined by the
level of authority you display to reward or punish
subordinates.
 Contingency theory of Leadership
• The contingency theory of leadership states
that effective leadership is contingent upon
the situation at hand.
• Essentially, it depends on whether an
individual's leadership style befits the
situation.
• According to this theory, someone can be an
effective leader in one circumstance and an
ineffective leader in another
 Leadership Styles
• Directive - includes scheduling work, maintaining
performance standards, and letting subordinates
know what is expected from them
• Supportive - friendly, approachable, and concerned
with pleasant interpersonal relationships.
• Participative – leaders will consult with their
subordinates, and consider their opinions.
• Achievement-oriented - encourages subordinates to
exert higher efforts and strive for a higher level of
goal accomplishment.
 Situational Factors
• 2 major situational factors affecting leader
success:
 Subordinate Characteristics – aptitude,
individual needs
 Environmental factors – task urgency, clarity,
appropriateness of leader’s style to the
situation, timing
 Participative Leadership
• Has a wide range of applications – Can have total involvement
of subordinates in implementation, planning, etc.
• Possible benefits of participation:
 Motivation
 Quality
 Acceptance
• Possible Pitfalls
 Requires a lot of time and energy
 Resentment
• Best to use this style when employees are part of a team for
an extended period and are knowledgeable/proficient
 Transformational Leadership
Transformational Leadership is
when leaders actively engage with
their subordinates to
promote top-notch performance,
encourage creativity,
and seek input.
 Transformational Leadership
They inspire, influence, and stimulate
people intellectually and motivate them
to take big-picture action, going beyond
their immediate self-interests.
They drive success through a
transformational organizational
environment for the organization's
future.
Characteristics
 Leadership Styles
• Vroom and Jago’s styles:
 Autocratic
 Consultative
 Group
 Qualities of Successful Leaders
• Intellectual Stimulation
• Energy
• Self-confidence
• Assertiveness
• Dominance
• Motivation
• Honesty and Integrity
• Charisma
 Final Activity – Leadership
Considerations
• Through other activities, goals, needs, and possible motivators
were identified. Now, take time in groups to discuss the best
leadership style for one’s own situation.

• Questions to consider:
 How involved do others need or want to be?
 Is participative leadership an option? Why or why not?
 What environmental considerations are there? Are there
external influences?
 Is it possible to adapt your leadership style to different
situations? Give examples
STRATEGY & RELATIONSHIP ORGANIZATIONAL CO-
PLANNING BUILDING SKILLS & OPERATIVE
MANAGEMENT DEVELOPMEN
T
Strategic Community Organizational Basics of a
Planning Development Governance Co-operative
Proposal Public Board Orientation Co-
Writing Participation operatives
and the
Community
Development
Process I
Project Alternative Meeting Co-operative
Management Dispute Management and the
Resolution Community
Development
Process II
Opportunity Group Leadership and
Identification Dynamics Motivation

Opportunity Interpersonal
Management Communications
Communications
Planning
Conclusion and Evaluation

• Review objectives
• Review any additional expectations
• Review Parking Lot
• Point out Certificates of Participation
• Complete evaluation
• Thank you!

Community Capacity Building Program

http://www.ibrd.gov.nl.ca/regionaldev/capacitybuilding.html
Interpersonal Effectiveness
 Awareness
Awareness is a state of consciousness.
It is the ability to recognize yourself, others,
events and situations in real time.
It is the ability to assess the impact of actions on
situations and others, and be critically self-
reflective.
It is a development process that is a function of
experience, communication, self discovery and
feedback.
 Ability
Ability to learn and understand technical issues is the
basis of our careers.
Ability to lead is a function of influence:
• Ability to communicate
• Ability to resolve conflicts
• Ability to solve problems and make decisions
As a member of a team, we influence others in a
collaborative effort to find better ideas or solve
problems.
 Commitment
For leaders, the “one thing” that leads to
maturity is the fully aware recognition that
one’s decisions make a difference, both
positively and negatively, in the lives of others,
and that any attempt to solve a problem might
have a decided negative impact on some,
while helping others.
In no-win scenarios, one must still make a hard
decision.
 Commitment
Movie example – Untouchables
Moment of truth for Elliott Ness
Jimmy O’Neil asks
“What are you prepared to do?”
Ness replies
“Anything I have to do to make this thing right.”
O’Neil says
“Everyone knows where the problems are, but no one is
willing to do anything. You said you would do
anything you had to, to make it right. Now, I’m willing
to help you. You made the commitment.”
 Attributes of a Leader
• Guiding vision: Effective leaders know what
they want to do, and have the strength of
character to pursue their objectives in the face
of opposition and in spite of failures. The
effective leader establishes achievable goals.
 Attributes of a Leader
Passion: Effective leaders believe passionately in
their goals. They have a positive outlook on
who they are, and they love what they do.
Their passion for life is a guiding star for others
to follow, because they radiate promise!
 Attributes of a Leader
• Integrity: Because they know who they are,
effective leaders are also aware of their
weaknesses. They only make promises they can
follow through on.
• Honesty: Leaders convey an aura of honesty in
both their professional and their personal lives.
• Trust: Effective leaders earn the trust of their
followers and act on behalf of their followers.
 Attributes of a Leader
• Curiosity: Leaders are learners. They wonder about
every aspect of their charge. They find out what they
need to know in order to pursue their goals.

• Risk: Effective leaders take calculated risks when

necessary to achieve their objectives. If a mistake is
made, the effective leader will learn from the mistake
and use it as an opportunity to explore other avenues.
 Attributes of a Leader
• Dedication: The effective leader is dedicated to
his or her charge, and will work assiduously on
behalf of those following. The leader gives
himself or herself entirely to the task when it is
necessary.
 Attributes of a Leader
• Charisma: This may be the one attribute that is the
most difficult to cultivate. It conveys maturity, respect
for your followers, compassion, a fine sense of humor,
and a love of humanity. The result is that leaders have
the capability to motivate people to excel.

• Listening: Leaders Listen! This is the most important

attribute of all, listen to your followers.
 Leader vs Manager
Leader n, 1. A person who is followed by others.

Manager n, 1. A person controlling or

administering a business or a part of a
business. 2. A person regarded in
terms of skill in household or financial or other
management.
 Leadership
• Leadership is the ability to
develop a vision that
motivates others to move
with a passion toward a
common goal
 Management
• Management is the ability to
organize resources and
coordinate the execution of
tasks necessary to reach a goal
in a timely and cost effective
manner
 Leadership vs Management
• Management seeks stability & predictability
– (order)

• Leadership seeks improvement through

change
– (disorder)
 Leader vs Manager
Leaders:
Do the right thing

Manager:
Do things right
 Leadership & Management Skills
Leadership – soft skills
• Communications
• Motivation
• Stress Management
• Team Building
• Change Management
Management – hard skills
• Scheduling
• Staffing
• Activity Analysis
• Project Controls
Managers have the following attributes , they
– Consider alternatives to design
– Estimate costs involved
– Establish risks to the organization
– Develop a schedule for the project
– Include decision steps
– Manage change in an orderly fashion
– Keep the team motivated and informed
– Review responsibilities and goals with each team
player
– State clearly the basis for evaluation and where
each person fits into the organization
Managers have the following attributes , they
– Monitor progress
– Set directions; set expected achievements for each
individual within the next work period. Show the
team members where they fit in achieving unit
goals.
– Perform administrative tasks
– Report to senior management
– Money and job security play a major role in
management effectiveness. They act as deficiency
motivators.
 Being a Leader
• If you want to get ahead, be a leader, you must assume:
– That everything that happens to you results in a
situation that is in your control
– That the attitude you convey is what you are judged
on
– That what you think and do in your private life is
what you will reap in your public or corporate life
– You are what you think and believe
– If you never meet a challenge you will never find out
what you are worth
 Recipe for being a Leader
• Take control of your life
• Assume responsibility for who you are
• Convey a positive and dynamic attitude in everything
you do
• Accept blame: learn from your own mistakes as well
as those of others. Take blame for everything that
happens in your unit
• Give credit wherever it is due
• Be compassionate when you review your team
members' progress or lack thereof
 Recipe for Being a Leader
• Think great thoughts. Small thinking is why
companies go broke
• Turn disasters into opportunities. Turn every obstacle
into a personal triumph
• Determine your "real" goals then strive to achieve
them
• When you want to tell someone something
important, do it personally
• Don’t be afraid to get your hands dirty doing what
you ask others to do. Make coffee
 Recipe for Being a Leader
• Listen effectively
• Encourage teamwork and participation
• Empower team members
• Communicate effectively
• Emphasize long-term productivity
• Make sound and timely decisions
• Treat each person as an individual
• Know yourself and your team
• Protect your team
• Have vision, courage and commitment
 Module -2
Functions of Management
1. Planning- Definition, Features, Nature, Importance, Types, Steps in
Planning, Planning Tools and Techniques, Essentials of a Good Plan.
2. Organisation-Definitions, Importance, Principles, Types of
Organisation Structures, Span of Control, Centralisation and
Decentralisation of Authority.
3. Directing-Definitions, Importance, Elements of Directing, Principles
of Directing, Characteristics of Directing;
4. Controlling-Definitions, Need of Controlling, Characteristics of
Control, Steps in the Controlling Process, Resistance to Control,
Design of Effective Control System, Types of Control, Control
Techniques.
5. Decision-making- Concepts, Types, Models, Difficulties in
Decision-making, Decision-making for Organisational Effectiveness,
Decision-making Styles.
 Control
1. Meaning
2. Importance
3. Steps in the control process
4. Types of Control
• Controlling means comparing the
actual performance of an
organisation with the planned
performance and taking
corrective actions if the actual
performance does not match the
planned performance.
• Controlling cannot prevent the
deviation in actual and planned
performance;
• however, it can minimise the
deviations by taking corrective
actions and decisions that can
reduce their recurrence.
• 1. Setting Performance Standards
• The first step of the process of controlling is to
establish standards of performance against
which the actual performance of the
organisation is measured.
• An organisation should clearly define its
standards to the employees and must
establish attainable, understandable, and
realistic standards to be achieved.
 2. Measurement of Actual
Performance
• Once the organisation has established the
standards, the second step of the process of
controlling is to measure the actual
performance in a reliable and objective manner.
• The actual performance of an organisation can
be measured through different techniques such
as sample checking, personal observation, etc.,
and should be measured in the same units in
which the standards are fixed to make the
comparison easy.
 3. Comparison of Actual
Performance with Standards
• The third step of the process of controlling is
to compare the actual performance of the
organisation with the established standards (in
the first step). By comparing the actual
performance with the standards, an
organisation can determine the deviation
between them.
 4. Analysing Deviations
• The actual performance and set standards of an
organisation rarely match with each other.
• Usually, there is always some variation between
the expected and actual performance.
Therefore, the fourth step of the process of
controlling is to analyse the deviations.
• To do so, an organisation must fix an
acceptable range of deviation in performance.
• Besides, an organisation should focus more on
the significant deviation and less on the minor
deviations.
• For this, managers of an organisation usually
take the help of Critical Point Control Key
Result Areas (KRAs), and Management by
Exception.
 5. Taking Corrective Action
• The last and final step of the process of
controlling is to take corrective action.
• If the deviations are within the acceptable limits
set by the managers, then there is no need to
take corrective action.
• For example, If the actual performance of the organisation
deviates because of the lack of resources, then the managers try
to procure them to meet the standards.
• However, if the actual performance deviates because of the lack
of skills in the employees, then the managers might give proper
and required training to the employees.
 Deviation
• It means the difference between the actual
performance and standard performance
can be Positive and Negative.
• Positive Deviation: It is a kind of deviation
when the actual performance is better than
the standard performance.
• Negative Deviation: It is a kind of deviation
when the actual performance is less than
the standard performance.
 Importance of Controlling:
1. Operations Adjustments:
2. Verification of Policy:
3. Responsibility of Managerial:
4. The pressure of Psychological:
5. Coordination inaction:
6. Efficiency and Effectiveness in Organization
 Importance of Controlling:
1. Operations Adjustments:
• First, Importance of Controlling; A control
system acts as an adjustment in organizational
operations. Every organization has certain
objectives to achieve which becomes the basis
for control.
2. Verification of Policy:
• Second, Importance of Controlling; Various
policies on the organization generate the need
for control. For organizational functioning,
managers set certain policies and other
planning elements, which later become the
basis and reason for control.
3. Responsibility of Managerial:
• Third, Importance of Controlling; In every
organization, managerial responsibility is
created through the assignment of activities to
various individuals. This process starts at the
top level and goes to the lower levels
4. The pressure of Psychological:
• Forth, Importance of Controlling; Control
process puts psychological pressure on the
individuals for better performance. The
performance of the individuals is evaluating in
the light of targets set for them.
5. Coordination inaction:
• Fifth, Importance of Controlling; Though
coordination is the essence of management
and is achieving through the proper
performance of all managerial functions,
control affects this aspect significantly.
 6. Efficiency and Effectiveness in
Organization :
• Final, Importance of Controlling; Proper
control ensures organizational efficiency and
effectiveness.
• Various factors of control, namely, making
managers responsible, motivating them for
higher performance, and achieving
coordination in their performance, control
ensures that the organization works
efficiently.
Types of Controlling