This report provides how to manage the business environment. The report includes management competences and skill. What are the management layers and which is suitable to Mr.Fonseka’s. main managerial competencies that manager should develop to operate a successful business, leadership identification and type of motivation suitable.

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Advanced Management Competencies
June 2014 Examination
Post Graduate Diploma in Marketing
Sri Lanka Institute of Marketing
Assignment
Topic
Managing teams through leadership and motivation
Student name A.Mohamed Azhar
Reg. No. 0000016630

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Table of Contents
1. Executive summary................................................................................................................4
2. Introduction............................................................................................................................5
3. Management competences, skill and Subordinates ...............................................................6
3.1 Management competencies..............................................................................................6
Planning ....................................................................................................................63.1.1
Organizing.................................................................................................................73.1.2
Controlling................................................................................................................73.1.3
Leading .....................................................................................................................83.1.4
3.2 Management skills ...........................................................................................................8
Human Skills.............................................................................................................83.2.1
Conceptual Skills ......................................................................................................83.2.2
Technical knowledge ................................................................................................93.2.3
Problem solving skill ................................................................................................93.2.4
Communication Skill ................................................................................................93.2.5
Decision-making skills..............................................................................................93.2.6
3.3 Management layers ........................................................................................................10
Chain of command..................................................................................................103.3.1
Scalar Chain............................................................................................................113.3.2
Span of Control.......................................................................................................123.3.3
4. Leadership styles..................................................................................................................13
4.1 Leadership......................................................................................................................13
Charismatic leadership............................................................................................134.1.1
Transactional leadership .........................................................................................134.1.2
Transformational leadership ...................................................................................144.1.3
Contingency theory.................................................................................................144.1.4
Servant leadership...................................................................................................144.1.5

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Participative leadership...........................................................................................144.1.6
4.2 Recommend transformational leadership style to span of control layers ......................15
5. Motivational theories & strategies.......................................................................................16
5.1 Motivation Objective of CROA (Pvt) Ltd .....................................................................16
5.2 Marketing team ..............................................................................................................16
5.3 Motivational strategies...................................................................................................16
5.4 Motivational theories .....................................................................................................17
Hierarchy of needs theory.......................................................................................175.4.1
Goal setting theory..................................................................................................185.4.2
Equity theory...........................................................................................................185.4.3
ERG theory .............................................................................................................195.4.4
Expectancy theory...................................................................................................195.4.5
Two factor theory....................................................................................................195.4.6
6. Findings and Conclusion......................................................................................................20
7. Recommendation .................................................................................................................21
8. References............................................................................................................................22

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1. Executive summary
This report provides how to manage the business environment. The report includes
management competences and skill. What are the management layers and which is suitable to
Mr.Fonseka’s. main managerial competencies that manager should develop to operate a
successful business, leadership identification and type of motivation suitable.
The report finds the prospects of the criteria to determine the success of the new
management. Hence the main criterion is determining the managing suitable leadership layer.
If Mr.Fonseka’s not focuses the managing style that cause to failure of the management.
Many managers supervise all the staff.
Especially, the different styles to leadership and management that are based on organization
the type of leadership are charismatic leadership, transactional leadership, transformational
leadership, servant leadership, participative leadership and situational leadership. It is the way
mangers want to achieve set of goals.
Motivation strategy should goal to growth the effective contribution of members of the
organization in achieving its objective. Motivation strategy will mention to the performance
of management and reward systems and in particular to the type and scale of financial
incentives which are to be provided, non-finance reward, independence, job security as well
as through the job promotion.

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2. Introduction
A manager may be responsible for one functional area, but the General Manager is
responsible for all areas. Sometimes, most commonly, the term General Manager refers to
any executive who has overall responsibility for managing both the revenue and cost
elements of a company's income statement. This is often referred to as profit & loss
responsibility. This means that a General Manager usually oversees most or all of the firm's
marketing and sales functions as well as the day-to-day operations of the business.
Frequently, the general manager is responsible for effective planning, delegating,
coordinating, staffing, organizing, and decision making to attain desirable profit making
results for an organization.
This assignment will focus what are the main managerial competencies that general or senior
should develop to operate a successful business and the subordinate of management layers.
This subordinate includes several steps but this report mainly differences the management
competencies. Leadership is the ability to influence the behavior or actions of people by
using different forms of power in order to achieve set of goals and motivation is power full to
organization success.
Motivation theories are so important to achieve company’s goal. The assignment of
motivation analyze should explain what type of motivation theories should follow by
Mr.Fonseka. The documents will review the analysis conducted upon the sources of
leadership and motivation. That will solve to succeed your management team.

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3. Management competences, skill and Subordinates
The management is very difficult to ever organization as well as top managers. The every
staff comes to organization from different culture with different goals. Then, the top
managers have to responsibility to all the staff. Mr.Fonseka should to build better relationship
with the 2 senior managers, 4 sales manager and 10 sales executives.
In the case Mr.Fonseka’s appointment is uncomfortable among him senior managers and
other staff. Because, assuming they will lose the opportunity to be coming general/senior
manager in their career.
I wish to advice under scenario to Mr.Founseka. Your management competences skill you
should concentrate solving your problems. So, Mr.Fonseka should concentrate on your
management competences and management skill according to what I seen your scenario.
Your entrepreneur skills are very basic and it should be enhance.
3.1 Management competencies
Managerial competency of manger is the ability to direct his staff and define. The expected
result is clearly and finally to get the things done at the best and cheapest ways and means.
Managerial competency is an approach to managing in meeting organizational objectives on a
sustained basis. The main managerial competencies are
Planning3.1.1
 Establishing goals - Determining the organization‘s broad strategy, translating this into
specific objectives and determining ways of coordinate their staff. Planning which will
help him to prepare an action plan for every marketing activity to achieve the pre-
determined goals.
 Making decisions - Formulating the direction to allocate the sales peoples. It necessary
ability to make good, non-routine decisions. A manager is imposed by the demands of
today to make right and quick decisions.

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The manager of a company should be a person who has the ability
 To generate new ideas
 To work out plans and business strategies to achieve goals
 To identify and use available resources to implement a plan
 To find information, analysis situation, make decisions and resolve problems
 To have determinacies
 To take risks
The manager should take notice of immediate needs of the market, while him happening all
the above actions.
Organizing3.1.2
 Designing structure - Fashioning the arrangement of people and work to achieve the
organization‘s goals in situations of both stability and change.
 Co-coordinating parts - Integrating the activities of separate units in an organization, to
provide unity of action in pursuit of common purpose.
 Arranging delegation - Assigning authority and responsibility to other people or groups,
to do specific tasks.
 Managing conflict and change - stimulating a desired amount of controlled conflict and
managing its resolutions, to bring about necessary change for improved organizational
performance.
Controlling3.1.3
Making sure performance conforms to plan.
 Establishing standards - specifying performance standards in key areas for individuals
and groups and having them accepted through participation of those concerned.
 Measuring performance - making measurements of actual performance in key areas at
agreed frequencies, and comparing them with the standards set, in time for action to be
taken.

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 Taking action - seeing the control process through to its conclusion by action, in changing
operations or standards where necessary, or exploiting opportunities where indicated.
 Instigating self-control - instituting the means by which organizational members can
control their performances against objectives and ensuring that a proper balance is
achieved in the amount of control exerted.
Leading3.1.4
Encouraging the human factor in performance.
 Implementing decisions - having the confidence to oversee the carrying out of decisions
and the ability to enact them in humane fashion.
 Forming communications - encouraging two-way transmission between people and
between groups, so that they take part jointly in the organization‘s activities.
 Developing employees - enabling personnel consciously to carry out appropriate career
development through self-assessment and opportunity seeking.
3.2 Management skills
To run a successful business you need a varied range of business management skills.
Human Skills3.2.1
Human relations skills are also called interpersonal skills. It is an ability to work with people.
It helps the managers to understand, communicate and work with others. It also helps the
managers to lead, motivate and develop team spirit. Human relations skills are required by all
managers at all levels of management. This is so, since all managers have to interact and
work with people.
Conceptual Skills3.2.2
Conceptual skill is the ability to imagine the organization as a whole. It includes analytical,
creative and initiative skills. It helps the manager to identify the causes of the problems and
not the symptoms. It helps him to solve the problems for the benefit of the entire

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organization. It helps the manager to fix goals for the whole organization and to plan for
every situation. Conceptual skills are mostly required by the top-level management because
they spend more time in planning, organizing and problem solving.
Technical knowledge3.2.3
Manger should to address the rapid technical changes in the industry. Higher levels of
technology must be introduced in the production methods in order to achieve productivity
demands. Therefore he must update his technical knowledge in order to serve customers
quickly and more effectively.
Problem solving skill3.2.4
Problem solving refers to the application of appropriate knowledge and skills in order to
solve a problem arising while carrying on the business. It requires mangers to have creative
thinking in order to understand the various techniques involved in resolving different
problematic issues of a business.
Communication Skill3.2.5
Communication skill refers to the ability of an entrepreneur to transfer ideas, plans, policies
and programs to employees, debtors, creditors, customers and everyone who is connected
with the business in order to inform, influence and to express his feelings.
Decision-making skills3.2.6
Decision-making skills are required at all levels of management. However, it is required more
at the top-level of management. A manager must be able to take quick and correct decisions.
He must also be able to implement his decision wisely. The success or failure of a manager
depends upon the correctness of his decisions.

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3.3 Management layers
In this case, span of control under Mr. Fonseka is 16 including 2 senior managers, 4 sales
manager and 10 sales executives. The levels of management can be classified in three broad
categories.
Chain of command3.3.1
A chain of command is an aspect of organizational structure that is meant to show a clear line
of responsibility from the top position to the bottom. There are three type of chain of
command under the Mr.Fonseka.
 First level - Under the Mr.Fonseka has a 2 senior sales manager in this level. They will
directly to response to Mr.Fonseka.
 Second level – The 4 sales managers are in second level. They are responsible to above
the 2 managers. Under the 4 sales managers have 10 sales executive.
S.E- 7
Mr. Fonseka
Sal M-1
S.M -1
Sal M-2 Sal M-3 Sal M-4
S.M -2
S.E- 8 S.E- 9 S.E-10S.E - 6S.E- 2 S.E - 3 S.E - 4 S.E - 5S.E - 1

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 Third level – The 10 sales executives are in this level. They are response to second level
sales managers in this layer.
Scalar Chain3.3.2
Scalar chain is the formal of authority which moves from highest lowest rank in a straight
line. it is direct authority relationship from superior to subordinate through the organization.
The clear position is responsible for decision making and more effective communication. In
this scenario you will not directly communicate with your all staff but you will manage under
the sales manager.
 Clear communication of information.
 Better relation among employees.
 Systematic communication in the organization.
 Faster solution to organizational problems.
 Bitterness in the relation of employees because of ignoring the close supervisors.
 Difficulty in finding the responsible person
The Scalar chain of Mr.Fonseka’s business management layers.
Mr.Fonseka
↓
Senior Manager (2)
↓
Sales Manager (4)
↓
Sales Executives (10)

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Span of Control3.3.3
You should personally supervision and control all the staff. You will get a time to
communicate then communicate and manage every single staff. You should flexibility,
prompt decision making, and effective communication between higher your and your
management staff and improved staff communication in case of wide span of management.
According to this approach, Mr.Fonseka can effectively and efficiently handle a large number
of subordinates at one way.
Mr.Fonseka can supervise and control effectively a large group of persons at one time by
using this approach. These are the benefits of wide span of control.
 To reduce the supervision cost
 Staffs are authorized to make their own decisions and to carry out their own tasks without
interference by managers.
 Fewer managers are required and wages are saved.
 Less levels of communication for decisions to pass through.
 High quality staff should exist.
 Increase managerial effectives
 better personal contact and better supervision

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4. Leadership styles
4.1 Leadership
Leadership is the ability to influence the behavior or actions of people by using different
forms of power in order to achieve set of goals. Good leadership is important to business. It is
an important to making organization successful.
There are different styles to leadership and management that are based in different
assumptions and theories. The style that individuals use will be based on a combination of
their belief, values and preferences as well as the organization culture and norms which will
encourage some styles and discourage others.
Type of leadership styles
 Charismatic leadership
 Transactional leadership
 Transformational leadership
 Situational Leadership
 Contingency Theory
 Servant leadership
 Participative leadership
Charismatic leadership4.1.1
Charismatic leader attract flowers with attraction and personality. These leaders have the
ability to motivate groups to do almost anything. Charisma is a special ability to ignite others
people’s mind. They are capable of transferring their own vision to groups so that the groups
would accept the same and devote themselves to achieve
Transactional leadership4.1.2
This theory based of rewards and punishment. A transactional leader is responsible for
making sure that their followers are working on goals and objectives in alignment with

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overall organizational objectives. There is no dispute as to who is in charge and generally
little dispute about what the goals and objectives are.
The leader views the relationship between managers and subordinates as an exchange. You
give me something for something in return. When subordinates perform well, they receive
some type of reward. When they perform poorly, they will be punished in some way.
For example, if a staff achieves a set goal or objective, he will be rewarded with a bonus.
Alternatively, if staffs fail, then a negative difficulty is going to occur.
Transformational leadership4.1.3
Leader engages in transforming people from their self-interests to broader collective mission
(individual thoughts group thoughts), extrinsic lower level needs to more intrinsic needs, and
to have confidence in their abilities to achieve higher missions. Leader could become a role
model, motivating followers and encouraging innovative methods.
Contingency theory4.1.4
The behavioral theory based on their views that there is no “one best way” to lead an
organization, organize cooperation or to make a decision. Contingency theory states that
these actions are dependent (contingent) to the internal and external factors. Thus it states that
there is no single theory of contingency management.
Servant leadership4.1.5
Servant leadership is a philosophy and set of practices that enriches the lives of individuals,
builds better organizations and ultimately creates a more just and caring world.
Participative leadership4.1.6
Participative leadership style is a form of leadership style where the leader includes
subordinates in problem solving and goal setting aspects of an organization. Subordinates are
involved in the process but the leader retains the final decision making authority.

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4.2 Recommend transformational leadership style to span of control layers
I recommend the transformational leadership style for span of control. Because, Mr.Fonseka
should internal motivations to achieve goals and objectives, the transactional leader motivates
with rewards and punishments with a every staff. Transactional leaders are expected to do the
following
 Emphasizing setting of goals – Mr.Fonseka clear agreements regarding what the leader
expects from organizational members and how they will be rewarded for their efforts and
commitment, and provide positive feedback to keep staff.
 Efficiency of operation – Mr.Fonskea focus on increasing the efficiency of established
routines and procedures and are more concerned with following existing rules than with
making changes to the structure of the organization
 Simple and low cost - it depends on external rewards or punishments for motivations, the
style can be performed by most employees or managers without extensive training or
required personal traits such as charisma, vision or inspiration. So, Mr.Fonske can easily
improve the organization staff in lower cost than other leadership style.
 Sure in goals and achievement - A transactional leader is responsible for making sure that
their followers are working on goals and objectives in alignment with overall
organizational objectives. So Mr.Fonseka is no argument to control, argument with their
staff.
 Fonseka will perform best when the chain of command is defined and clear.
 When consideration the staff performance, he will decide to reward and punishment.
 Obeying the instruction and commands of the leader is the primary goal the followers and
the subordinates need to be carefully monitored to ensure that expectation are met.
 Work requirements and reward structure are clear and Punishments are not always
mentioned, but they are also well‐understood and formal systems of discipline are usually
in place.

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5. Motivational theories & strategies
The following the discussion general manger also CROA (Pvt) Ltd and current human
resource situation and subject two give two this scenario. I recommend the following to
achieve the high level motivation within staff.
5.1 Motivation Objective of CROA (Pvt) Ltd
CROA (Pvt) Ltd is committed to deliver sustainable excellence in motivation strategy for the
objective by the following below
 The purpose of motivation is to create condition in which people are willing to work with
enthusiasm, initiative. Interest and enthusiasm are high personal and group moral
satisfaction with a sense of responsibility.
 To increase loyalty against company.
 Motivation techniques utilized to stimulate employee growth.
 Performance results from the interaction of physical, financial and human resource.
5.2 Marketing team
Mr.Fonseka should lead to understand how to translate the organization’s business objectives
into marketing strategies. He should takes the tactical marketing plan and execution past on
their experience and professional qualification.
Mr.Fonseka has two types of staff. So, he has to take to suitable motivational strategies to
their companies. The high motivation is high performance then it is grate for achieve the
objective. The CROA (Pvt) Ltd will maximum achieves the objective of the company
through motivational strategies.
5.3 Motivational strategies
Motivation strategy should goal to growth the effective contribution of members of the
organization in achieving its objective. Motivation strategy will mention to the performance

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of management and reward systems and in particular to the type and scale of financial
incentives which are to be provided.
Mr.Fonseka should possible to select suitable motivation strategies to their staff.
 Incentives - Money is primary motivator because it is the reason for which people work
 Non finance rewards - Rewards like a day off, paid vacations, gifts, movie tickets,
occasional treats to lunch or dinner, or a better office are some ways used to motivate the
employees.
 Job security – It is stability in staff's personal development, focusing to best skill and
capabilities, peace of mind as well as financial security.
 Providing training - Training can help to understand their work, company structures,
mission, goals and achievement. It improves the result of work, education, and
achievement.
 Working condition and areas - Facility for better working conditions such as air-
conditioned rooms, proper plant layout, proper health, equipment, machines etc.
 Job enrichment - Job enrichment involves more challenging tasks and responsibilities.
5.4 Motivational theories
Hierarchy of needs theory5.4.1
Maslow’s-Hierarchy of Needs Theory: This theory was proposed by Abraham Maslow and is
based on the assumption that people are motivated by a series of five universal needs. These
needs are ranked, according to the order in which they influence human behavior, in
hierarchical fashion.
 Physiological needs - re deemed to be the lowest- level needs. These needs include the
needs such as food & water.
 Safety needs - he needs for shelter and security to motivators of human behavior. For
example security, stability, dependency, protection, freedom from fear and anxiety and a
need for structure.
 Social needs - include the need for belongs and love. For example as gregarious creatures

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 Ego and esteem need - Esteem needs include the desire for self-respect, self-esteem,
desire for reputation, prestige, status, fame, glory, dominance, recognition, attention,
importance, and appreciation and the esteem of others.
 Self-actualization - the need for self-realization, continuous self-development, and the
process of becoming all that a person is capable of becoming.
Goal setting theory5.4.2
Specific and difficult goals with feedback leaf to higher performance. Goal Setting Theory
improves motivation. Salient features of this theory are the following
 Specific goal fixes the needs of resources and efforts
 It increases performance
 Difficult goals result higher performance than easy job
 Better feedback of results leads to better to better performance than lack of feedback.
 Participation of employees in goal has mixed result
 Participation of setting goal, however, increases acceptance of goal and involvements.
Equity theory5.4.3
Individuals compare their job inputs and outcomes with those of others and then respond. So,
as to elements any inequities
This theory of motivation centers on the principle of balance or equity. According to this
theory level of motivation in an individual is related to his or her perception of equity and
farness practiced by management. Greater the fairness perceived higher the motivation and
vice versa. In this assessment of fairness, employee makes comparison of input in the job (in
terms of contribution) with that of outcome (interims of compensation) and compares the
same with that of another colleague of equivalent cadre.

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ERG theory5.4.4
There are three types of core needs
 Existence - Includes all of the various forms of material and psychological desires
 Relatedness - Involve relationships with significant others
 Growth - Impel a person to make creative or productive effects on himself and his
environment
Expectancy theory5.4.5
The strength of a tendency to act in a expectation that the act will be followed by a given
outcome and on the attractiveness of that outcome to the individual.
A number of factors can contribute to an employee's expectancy perceptions
 The level of confidence in the skills required for the task
 The amount of support that may be expected from superiors and subordinates
 The quality of the materials and equipment
 The availability of related information
Two factor theory5.4.6
Intrinsic factors are related to job satisfaction, while extrinsic factors are associated with
dissatisfaction.

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6. Findings and Conclusion
This study reports finds a person who possess certain leadership and motivation of mangers, a
person who has excellent insight in to management need and wants and is able to fulfill them
and the main managerial competencies. Hence the report analysis the management
competence, skills and management subordinate. Finally, this report explains leadership and
motivation.
This report explains management competences and skill. Manager is different with a respect,
authority and responsibility. They theoretical thinker because they responsible for
management. They skill and knowledge should for organization success. Managing
subordinate has responsibilities. It should to accountable to authority to go with the position.
So, senior manager’s development requires a certain amount of risk with the subordinate. The
recommendation of span of control is suitable to managing all the staff.
The effective leadership helps to managing success. It enables to fulfill the organization
success and without leadership organization move too slowly, go bad and lose them goals.
Leadership is essential in implementation decision successfully to CROA (Pvt) Ltd.
Motivation is important to promote to staff. It improves the level of efficiency in every
employee. This leads to increased productivity and reduction of operations costs. In addition,
motivation leads to stability of the work force.

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7. Recommendation
Mr.Fonseka should follow some main managerial competencies. This leads to giving up
certain opportunities and business success.
Mr.Fonaeka should focus the under the all staff because it get a time to communicate then
and manage every single staff. It management staff and improved staff communication in
case of wide span of management.
Leadership is never essay. It is group working to achieve challenge and goal. Mr.Fonseka
can't solve the problems alone. But, all staff leads to solve the problems. Good leaders
recognize that they do not have all the answers and are constantly reeducating themselves on
their businesses and sharpening their leadership skills. So, Mr.Fonseka should focus the
suitable leadership styles. It is an important to making organization successful.
Motivation is important increase the performance of every employee. Co-ordination of
employees and the goals of the organization can be easily achieved. This promotes the feeling
of job satisfaction among the employees and increased productivity since its basic object is to
achieve the goals of the enterprise. Mr.Fosnkea should reward the motivation to their staff.

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8. References
 New era of management. Richard L.Draft - Vanderbilt University. 10th edition
 http://kalyan-city.blogspot.com/2011/06/managerial-skills-conceptual-human.html
 http://www.employeedevelopmentsystems.com/media/pdfs/SkillsforManagers.pdf
 http://education-portal.com/academy/lesson/scalar-chain-in-management-principle-
lesson-quiz.html#lesson
 http://managementconsultingcourses.com/Lesson20Motivation&ItsTheories.pdf
 http://www.mc.edu/rotc/files/1013/1471/9570/MSL_202_L09a_Transformational_Leader
ship.pdf
 http://dspace.knust.edu.gh:8080/jspui/bitstream/123456789/4257/1/Aryeetey%20Loretta
%20Naomi.pdf
 http://yourbusiness.azcentral.com/characteristics-charismatic-leader-7990.html
 http://www.hrconsultant.com/articles-white-papers/motive_strat.html
 http://info.shine.com/Career-Advice-Articles/Leadership-Teamwork/Competencies-of-a-
manager/1942/cid31.aspx