The document discusses the roles and functions of management in organizations. It begins by defining management as coordinating efforts to accomplish goals using available resources. It then outlines the key functions of management as planning, organizing, staffing, leading, and controlling. The next sections discuss different approaches to management including classical, human relations, and role approaches. It also discusses Mintzberg's research identifying the 10 specific roles managers perform grouped into interpersonal, informational, and decisional categories. The document concludes by noting that effective managers need technical, human, and conceptual skills.

1. Introduction Role Of Management In An Organizations
Management in all business and organizational activities is the act of coordinating the efforts of
people to accomplish desired goals and objectives using available resources efficiently and
effectively.
Management
comprises planning, organizing, staffing, leading or
directing,
and controlling an organization (a group of one or more people or entities) or effort for the
purpose of accomplishing a goal. Resourcing encompasses the deployment and manipulation
of human resources, financial resources, technological resources, and natural resources.
Since organizations can be viewed as systems, management can also be defined as human action,
including design, to facilitate the production of useful outcomes from a system. This view opens
the opportunity to 'manage' oneself, a prerequisite to attempting to manage others.
The 21st century has brought with it a new workplace, one in which everyone must
adapt to a rapidly hanging society with constantly shifting demands and opportunities.
The economy has become global and is driven by innovations and technology and
organizations have to transform themselves to serve new customer expectations.
Today‘s economy presents challenging opportunities as well as dramatic uncertainty.
The new economy has become knowledge based and is performance driven. The
themes in the present context area ‗respect‘, participation, empowerment, teamwork and
self management. In the light of the above challenges a new kind of leader is needed to
guide business through turbulence. Managers in organizations do this task.
A manager is someone who coordinates and oversees the work of other people so that
organizational goals can be accomplished. It is not about personal achievement but
helping others do their job. Managers may also have additional work duties not related
to coordinating the work of others. Managers can be classified by their level in the organization,
particularly in traditionally

2. THE ROLE OF MANAGEMENT:
Essentially, the role of managers is to guide the organizations toward goal accomplishment. All
organizations exist for certain purposes or goals,and managers are responsible for combining and
using organizational resources to ensure that their organizations achieve their purposes.
The role of the Management is to move an organization towards its purposes or goals by
assigning activities that organization members perform.
If Management ensures that all the activities are designed effectively, the production of each
individual worker will contribute to the attainment of the organizational goals.
Management strives to encourage individual activity that will lead to reaching organizational
goals and to discourage individual activity that will hinder the accomplishment of the
organization objectives.
There is no idea more important than managing the fulfillment of the organizational goals and
objectives. The meaning of the Management is given by its goals and objectives.
Review o f Literature
Classical Approach
Henri Fayol
Henry Fayol (1916) is a recognised authority of this approach. He was the hed of a large French
Industrial and mining group and was considered to be very successful in his field. He believed
that he could declare some universal priciple of management from a synthesis of his own
experience. He esatblished fourteen principles of management and six verbs of the management
process: command, control, coordinate, forecast, plan, organise. Fayol‘s verbs were extended by
Gullick (1939, 1965) to: plan, orgnise,staff, control, report, budget.
Human relation approach
Elton Mayo

3. Elton Mayo was a respected researcher in the field of social science. His studies of the Hawthorn
Electric Company were published in 1933. He wrote: ―Management is the art of unifying
economic man with social man to harness his unique ability to grow when his motivational needs
are satisfied.‖ Many reseachers followed the path opened up by Mayo to define and develop a
theory of motivation and gain a better understanding of how to encourage effective work in
group. ―People would live to work rather than work to live‖.
Peter Drucker
Peter Drucker extended this approach: Management is the art of hetting the right result through
other people. He defined eight result ares: profitability, productivity, physical asset and return on
financial resources, worker performance and attitude, innovation, manager performance and
attitute, market standing, social responsibility.Drucker saw that its strenght was dependent on the
sustained quality of its people. Management was a special group whose skills needed nuturing,
and other employees needed training and development too.
Role Approach
Henry Mintzberg
In 1973 Henry Mintzberg published reserch finding from a set of diary studies. There were aimed
at chief executives and initially the purpose was to confirm that manager did indeed spend their
time in the type of verb and process activities envisaged by writers such as Fayol. Mintzberg‘s
finding profoundly challenged current beleifs about the process of management. He found that
management-particularly senoir management-was a most unstructured activity, with many breaks
in continuity and a huge number of informal contacts and decisions being made in a typical day.
R.M.Belbin
Belbin‘s research (1981) focused on project work. He suggested that much executives work in the
exciting aareas of product innovation and the introduction of new technology was ofter done
within enviornment of a multidisciplinary project team, and the secret of success was to have a
balanced team competent to deal with all stages of the project. Belbin identified eight distinct but
useful roles for people to adopt in successful project teams. They were: company worker,
chairman, shaper, plant, resource investigator, monitor evaluator, teamworker, completer-finisher.

4. Levels of Management‘
The term ―Levels of Management‘ refers to a line of demarcation between various managerial
positions in an organization. The number of levels in management increases when the size of the
business and work force increases and vice versa. The level of management determines a chain of
command, the amount of authority & status enjoyed by any managerial position. The levels of
management can be classified in three broad categories:
1. Top level / Administrative level
2. Middle level / Executory
3. Low level / Supervisory / Operative / First-line managers
Managers at all these levels perform different functions. The role of managers at all the three levels is
discussed below:
LEVELS OF MANAGEMENT
1. Top Level of Management
It consists of board of directors, chief executive or managing director. The top management is the
ultimate source of authority and it manages goals and policies for an enterprise. It devotes more
time on planning and coordinating functions.
The role of the top management can be summarized as follows a.
b.
c.
d.
e.
f.
g.
Top management lays down the objectives and broad policies of the enterprise.
It issues necessary instructions for preparation of department budgets, procedures, schedules etc.
It prepares strategic plans & policies for the enterprise.
It appoints the executive for middle level i.e. departmental managers.
It controls & coordinates the activities of all the departments.
It is also responsible for maintaining a contact with the outside world.
It provides guidance and direction.

5. h. The top management is also responsible towards the shareholders for the performance of the
enterprise.
2. Middle Level of Management
The branch managers and departmental managers constitute middle level. They are responsible to
the top management for the functioning of their department. They devote more time to
organizational and directional functions. In small organization, there is only one layer of middle
level of management but in big enterprises, there may be senior and junior middle level
management. Their role can be emphasized as a. They execute the plans of the organization in accordance with the policies and directives of the
top management.
b. They make plans for the sub-units of the organization.
c. They participate in employment & training of lower level management.
d. They interpret and explain policies from top level management to lower level.
e. They are responsible for coordinating the activities within the division or department.
f. It also sends important reports and other important data to top level management.
g. They evaluate performance of junior managers.
h. They are also responsible for inspiring lower level managers towards better performance.
3. Lower Level of Management
Lower level is also known as supervisory / operative level of management. It consists of
supervisors, foreman, section officers, superintendent etc. According to R.C. Davis, ―Supervisory
management refers to those executives whose work has to be largely with personal oversight and
direction of operative employees‖. In other words, they are concerned with direction and
controlling function of management. Their activities include a.
b.
c.
d.
e.
f.
g.
h.
i.
j.
Assigning of jobs and tasks to various workers.
They guide and instruct workers for day to day activities.
They are responsible for the quality as well as quantity of production.
They are also entrusted with the responsibility of maintaining good relation in the organization.
They communicate workers problems, suggestions, and recommendatory appeals etc to the higher
level and higher level goals and objectives to the workers.
They help to solve the grievances of the workers.
They supervise & guide the sub-ordinates.
They are responsible for providing training to the workers.
They arrange necessary materials, machines, tools etc for getting the things done.
They prepare periodical reports about the performance of the workers.

6. k. They ensure discipline in the enterprise.
l. They motivate workers.
m. They are the image builders of the enterprise because they are in direct contact with the workers.
Functions of Management or Management Functions
Management consists of the functions given below. It is based on Henri Fayol's thinking on the functions
of management.
1.
Planning: generating plans of action for immediate, short term, medium term and long
term periods.
2.
Organizing: organizing the resources, particularly human resources, in the best possible
manner.
3.
Staffing: positioning right people right jobs at right time.
4.
Directing (includes leading, motivating, communicating and coordinating): Communicate
and coordinate with people to lead and enthuse them to work effectively together to achieve the
plans of the organization.
5.
Controlling (includes review and monitoring): evaluating the progress against the plans
and making corrections either in plans or in execution.
Each of these functions is explained in some detail below.
1. Planning
Planning is decision making process.
It is making decisions on future course of actions.
Planning involves taking decisions on vision, mission, values, objectives, strategies and policies
of an organization.
Planning is done for immediate, short term, medium term and long term periods.
It is a guideline for execution/implementation.
It is a measure to check the effectiveness and efficiency of an organization.
2. Organizing
Organizing involves determination and grouping of the activities.
Designing organization structures and departmentation based on this grouping.
Defining the roles and responsibilities of the departments and of the job positions within these
departments.
Defining relationships between departments and job positions.
Defining authorities for departments and job positions.

7. 3. Staffing
It includes manpower or human resource planning.
Staffing involves recruitment, selection, induction and positioning the people in theorganization.
Decisions on remuneration packages are part of staffing.
Training, retraining, development, mentoring and counseling are important aspects of staffing.
It also includes performance appraisals and designing and administering the motivational
packages.
4. Directing
It is one of the most important functions of management to translate company's plans into
execution.
It includes providing leadership to people so that they work willingly and enthusiastically.
Directing people involves motivating them all the time to enthuse them to give their best.
Communicating companies plans throughout the organization is an important directing activity.
It also means coordinating various people and their activities.
Directing aims at achieving the best not just out of an individual but achieving the best through
the groups or teams of people through team building efforts.
5. Controlling
It includes verifying the actual execution against the plans to ensure that execution is being done
in accordance with the plans.
It measures actual performance against the plans.
It sets standards or norms of performance.
It measures the effective and efficiency of execution against these standards and the plans.
It periodically reviews, evaluates and monitors the performance.
If the gaps are found between execution levels and the plans, controlling function involves
suitable corrective actions to expedite the execution to match up with the plans or in certain
circumstances deciding to make modifications in the plans

8. The 10 roles are then divided up into three categories, as follows:
Category
Role
Interpersonal
Figurehead
Leader
Liaison
Informational
Monitor
Disseminator
Spokesperson
Decisional
Entrepreneur
Disturbance Handler
Resource Allocator
Negotiator
Let's look at each of the ten roles in greater detail.
Interpersonal Category
The roles in this category involve providing information and ideas.
1. Figurehead – As a manager, you have social, ceremonial and legal responsibilities. You're
expected to be a source of inspiration. People look up to you as a person with authority,
and as a figurehead.
2. Leader – This is where you provide leadership for your team, your department or perhaps
your entire organization; and it's where you manage the performance and responsibilities
of everyone in the group.
3. Liaison – Managers must communicate with internal and external contacts. You need to
be able to network effectively on behalf of your organization.

9. Informational Category
The roles in this category involve processing information.
4. Monitor – In this role, you regularly seek out information related to your organization and
industry, looking for relevant changes in the environment. You also monitor your team, in
terms of both their productivity, and their well-being.
5. Disseminator – This is where you communicate potentially useful information to your
colleagues and your team.
6. Spokesperson – Managers represent and speak for their organization. In this role you're
responsible for transmitting information about your organization and its goals to the people
outside it.
Decisional Category
The roles in this category involve using information.
7. Entrepreneur – As a manager, you create and control change within the organization.
This means solving problems, generating new ideas, and implementing them.
8. Disturbance Handler – When an organization or team hits an unexpected roadblock, it's
the manager who must take charge. You also need to help mediate disputes within it.
9. Resource Allocator – You'll also need to determine where organizational resources are
best applied. This involves allocating funding, as well as assigning staff and other
organizational resources.
10. Negotiator – You may be needed to take part in, and direct, important negotiations within
your team, department, or organization.

10. 10 Roles That Managers Perform in Organizations
Creating the Vision
Successful organizations are led by visionary leaders with a clear understanding of the
organization's mission statement. Part of the manager's role is to lead his team in developing the
mission statement. This helps everyone focus on the organization's main purpose.
Implementing the Vision
It is also the manager's role to implement the mission statement by breaking it down into
specific, achievable goals. Managers help the workers to recognize how the work they do relates
to the overall goal of the organization.
Facilitating Change
Dynamic organizations are always changing, and managers help facilitate the change through
their role as change agents. They do this by fully understanding and accepting the need to change
and by conveying this rationale to the staff.
Mentoring
Managers who are visionary leaders constantly mentor their staff. It's their role to recognize
talent and groom employees for positions of additional responsibility. They contribute to the
professional development of their employees by conducting performance appraisals and
encouraging personal growth and increased productivity.
Gathering Information
It's the manager's role to gather all relevant information. Managers stay in touch with their
superiors and are aware of new trends that might be implemented in the future. They maintain an
"open-door" policy with their employees to keep up-to-date with issues that might be causing
resentment or discontent among them.
Evaluating Information
It's also the manager's role to evaluate information when it is received, to determine who should
receive the information and how it will be communicated. Managers use their judgment to decide
what is relevant to pass on to their supervisors and what to share with their workers.

11. Communicating
Managers must communicate information at the most suitable time, using the most appropriate
method of communication whether it be face-to-face at a meeting, via electronic technology or in
print.
Decision-Making
Managers are constantly involved in decision-making, whether it's for smaller issues such as
what time workers will take their breaks or for more important matters such as firing an
employee for a transgression. The decision-making role is a critical one and involves resource
allocation and negotiation.
Building Relationships
A vital management role revolves around the interpersonal relationships managers have with
their subordinates and with their superiors. A manager's level of competency is directly related to
the success of these relationships. Managers who develop a climate of trust find it easier to do
their job. It's easier for them to get their workers to follow directions and it's easier to take
direction from their supervisors.
Controlling Climate
Managers are also responsible for facilitating healthy interpersonal relationships among staff
members. Employees are more productive when the relationships in the workplace are
supportive and collaborative instead of filled with poisonous back-stabbing. It's the role of the
manager to foster a positive climate.
In the late 1960s, Henry Mintzberg conducted a precise study of managers at work. He
concluded that managers perform 10 different roles, which are highly interrelated.
Management roles refer to specific categories of managerial behavior. Overall there are
ten specific roles performed by managers which are included in the following three
categories.
1)Interpersonal roles include figurehead, leadership, and liaison activities.
2) Informational roles include monitoring, disseminating, and spokesperson
activities.
3) Decisional roles include entrepreneur, disturbance handler, resource allocator,and negotiator.

12. .Management Skills
Managers need certain skills to perform the challenging duties and activities associated
with being a manager. Robert L. Katz found through his research in the early 1970s that
managers need three essential skills
1) Technical skills are job-specific knowledge and techniques needed to
proficiently perform specific tasks.
2) Human skills are the ability to work well with other people individually and in
a group.
3) Conceptual skills are the ability to think and to conceptualize about abstract and
complex situations.
These skills reflect a broad cross-section of the important managerial activities that are
elements of the four management functions
Organizational structure

13. Organizational structure
Having the appropriate structure is vital for an organisation or
business to meet its aims and objectives. A business may be structured by:
functions - activities such as customer service, marketing, operations, finance or IT
location - where regional divisions of the business take responsibility for a specific function or
particular products, whether locally, nationally or internationally
product or services - where the business is divided into the particular products made or services
provided.
All organisations have employees working at different levels of responsibility. At the bottom, a
business depends on its operatives to produce the products or services. Team leaders often
perform the day-to-day management role, with operational managers setting direction and strategy
for the business as a whole. The number of employees in each level will depend on the business‘
organisational structure.
Hierarchical structure
Large organisations, like British Gas, tend to have tall (or hierarchical) structures. A tall structure
will have many different levels of employees all reporting upwards to team leaders and then up to
operational management. It will have a wide chain of command with a narrow span of control.
The chain of command refers to the number of levels within an organisation. The span of control
is the number of employees who are directly supervised by one person.
A tall structure can often lead to slower communication channels and decision-making. British
Gas divides its business activities by products (gas and electricity), by services (maintenance and
repairs) and also by functions, for example, customer services.

14. Flat structure
A flat organisational structure has fewer layers of
management and wider spans of control. This means operatives can access and communicate with
managers more easily and quickly. This relies on workers taking more responsibility for decisionmaking. This can create a more motivated workforce. This type of structure is often seen in newly
set-up or smaller businesses.
A benefit of this structure is that it allows the business to change rapidly to respond to the market,
customers or competitors. However, this only applies if the staff are well trained and capable of
making effective responses.
Matrix structure
A matrix structure pulls together employees who combine the relevant product and functional
expertise in order for the business to meet its goals. The people selected come from different
levels and departments within the business. This structure can be used in both hierarchical and flat
organisations.
Matrix structures are frequently used for specific projects. Individual team members may come
from different parts of the business, regardless of their location. Once a project is completed, the
matrix will be disbanded and a new structure set up appropriate for the next project.
The main objectives of management are:
1. Getting Maximum Results with Minimum Efforts - The main objective of
management is to secure maximum outputs with minimum efforts & resources.
Management is basically concerned with thinking & utilizing human, material
& financial resources in such a manner that would result in best combination.
This combination results in reduction of various costs.
2. Increasing the Efficiency of factors of Production - Through proper utilization of various
factors of production, their efficiency can be increased to a great extent which can be obtained by
reducing spoilage, wastages and breakage of all kinds, this in turn leads to saving of time, effort
and money which is essential for the growth & prosperity of the enterprise.
3. Maximum Prosperity for Employer & Employees - Management ensures smooth and
coordinated functioning of the enterprise. This in turn helps in providing maximum benefits to the
employee in the shape of good working condition, suitable wage system, incentive plans on the

15. one hand and higher profits to the employer on the other hand.
4. Human betterment & Social Justice - Management serves as a tool for the upliftment as
well as betterment of the society. Through increased productivity & employment,
management ensures better standards of living for the society. It provides justice through its
uniform policies.
Significant changes in the internal and external environments have a measurable impact
on management. Security threats, corporate ethics scandals, global economic and
political uncertainties, and technological advancements have had a great impact on the
manager‘s job.
Two significant changes facing today‘s managers are importance of customers to the
manager‘s job and Importance of innovation to the manager‘s job
Organizations need managers. An organization is a deliberate arrangement of people to
accomplish some specific purpose. Organizations share three common characteristics:
(1) Each has a distinct purpose (2) Each is composed of people (3) Each develops some
deliberate structure so members can do their work. Although these three characteristics
are important in defining what an organization is, the concept of an organization is
changing. The characteristic of new organizations of today include: flexible work
arrangements, employee work teams, open communication systems, and supplier
alliances. Organizations are becoming more open, flexible, and responsive to changes.
Organizations are changing because the world around them has changed and is
continuing to change. These societal, economic, global, and technological changes have
created an environment in which successful organizations must embrace new ways of
getting their work done.
The importance of studying management in today‘s dynamic global environment can be
explained by looking at the universality of management, the reality of work, and the
rewards and challenges of being a manager.

16. CURRENT TRENDS AND ISSUES
The following are the current concepts and practices are changing the way managers do
their jobs today.
Globalization: Organizational operations are no longer limited by national borders.
Managers throughout the world must deal with new opportunities and challenges
inherent in the globalization of business.
Ethics: Cases of corporate lying, misrepresentations, and financial manipulations have
been widespread in recent years. Managers of firms such as Enron, ImClone, Global
Crossing, and Tyco International have placed their own self-interest ahead of other
stakeholders‘ welfare. While most managers continue to behave in a highly ethical
manner, abuses suggest a need to ―upgrade‖ ethical standards. Ethics education is
increasingly emphasized in college curricula today. Organizations are taking a more
active role in creating and using codes of ethics, ethics training programs, and ethical
hiring procedures.
Workforce diversity: It refers to a workforce that is heterogeneous in terms of gender,
race, ethnicity, age, and other characteristics that reflect differences. Accommodating
diverse groups of people by addressing different lifestyles, family needs, and work
styles is a major challenge for today‘s managers.
.
Entrepreneurship: It is the process whereby an individual or group of individuals use
organized efforts to pursue opportunities to create value and grow by fulfilling wants
and needs through innovation and uniqueness, no matter what resources the
entrepreneur currently has.nt on others‘ work performance.
Social Responsibility and Managerial Ethics
This chapter discusses issues involving social responsibility and managerial ethics and
their effect on managerial decision making. Both social responsibility and ethics are
responses to a changing environment and are influenced by organizational culture
Managers regularly face decisions that have dimensions of social responsibility.
Examples include employee relations, philanthropy, pricing, resource conservation,
product quality, and doing business in countries that violate human rights

17. SOCIAL RESPONSIBILITY
Two opposing views of social responsibility are presented:
The classical view is the view that management‘s only social responsibility is to
maximize profits. The socio economic view is the view that management‘s social
responsibility goes beyond the making of profits to include protecting and improving
society‘s welfare.
A four stage model shows how social responsibility progresses in organizations Social
responsibility may progress from the stance of obeying all laws and regulations while
caring for stockholders‘ interests (Stage 1) to the point of demonstrating responsibility
to society as a whole (Stage 4), which characterizes the highest socioeconomic
commitment.Social Obligations to Responsiveness to Responsibility:
Social obligation occurs when a firm engages in social actions because of its obligation to meet
certain economic andlegal responsibilities.
Social responsiveness is seen when a firm engages in social
actions in response to some popular social need. Social responsibility is a business‘s
intention, beyond its legal and economic obligations, to do the right things and act in
ways that are good for society
The Greening of Management
A number of highly visible ecological problems and environmental disasters (e.g.,
Exxon Valdez oil spill, mercury poisoning in Japan, Three Mile Island, Chernobyl)
brought about a new spirit of environmentalism. Recognizing the close link between an
organization‘s decisions and activities and its impact on the natural environment is
called the greening of management.
Values-based management is an approach to managing in which managers are guided
by the organization‘s shared values in their management practices. Purposes of Shared
Values are:
1) They act as guideposts for managerial decisions and actions.
2) Shared values serve to shape employee behavior and to communicate what the
organization expects of its members.
3) Shared corporate values can influence an organization‘s marketing efforts.
4) Shared values are a way to build team spirit in organizations.

18. MANAGERIAL ETHICS
The term ethics refers to principles, values, and beliefs that define what is right and
wrong behavior.
Factors That Affect Employee Ethics
1. Stages of Moral Development. Research confirms three levels of moral
development. Each level has two stages.
a) The first level is called preconventional. At this level, the individual‘s choice
between right or wrong is based on personal consequences involved.
b) At the second stage, which is labeled conventional, moral values reside in
maintaining expected standards and living up to the expectations of others.
c) The third level—the principled level—the individual makes a clear effort to
define moral principles apart from the authority of the groups to which the
person belongs.
d) Research on the stages of moral development indicates that people proceed
sequentially through the six stages of these three levels, with no guarantee of
continued development at any stage. The majority of adults are at Stage 4. The
higher the stage an employee reaches, the more likelihood that he or she will
behave ethically.
2. Individual Characteristics: A person joins an organization with a relatively
entrenched set of values.
a. Values are basic convictions about what is right and wrong. Values are broad
and cover a wide variety of issues.
b. Ego strength is a personality measure of the strength of a person‘s convictions.
Individuals who score high on ego strength are likely to resist impulses to act
unethically and are likely do what they think is right.
c. Locus of control is a personality attribute that measures the degree to which
people believe they control their own fate. Individuals with an internal locus of
control think that they control their destiny, while persons with an external locus
of control are less likely to take personal responsibility for the consequences of
their behavior and are more likely to rely on external forces. Externals believe
that what happens to them is due to luck or chance.
3. A third factor influencing managerial ethics is structural variables. The existence
of structural variables such as formal rules and regulations, job descriptions, written
codes of ethics, performance appraisal systems, and reward systems can strongly
influence ethical behavior.
4. The content and strength of an organization’s culture influences ethical behavior.
a. An organizational culture most likely to encourage high ethical standards is one
that is high in risk tolerance, control, and conflict tolerance.
b. A strong culture exerts more influence on managers than does a weak one.
c. However, in organizations with weak cultures, work groups and departmental
standards strongly influence ethical behavior.
5. Finally, the intensity of an issue can affect ethical decisions. Six characteristics
determine issue intensity
a. Greatness of harm
b. Consensus of wrong

19. c. Probability of harm
d. Immediacy of consequences
e. Proximity to victim
f. Concentration of effect
Improving Ethical Behavior
Organizations can take a number of actions to cultivate ethical behavior among
members. Some of those are‖
1) The selection process for bringing new employees into organizations should be
viewed as an opportunity to learn about an individual‘s level of moral
development, personal values, ego strength, and locus of control.
2) A code of ethics is a formal statement of an organization‘s primary values and
the ethical rules it expects employees to follow. In addition, decision rules can
be developed to guide managers in handling ethical dilemmas in decision
making.
3) Top management‘s leadership and commitment to ethical behavior is extremely
important since the cultural tone for an organization is established by its top
managers
4) Employees‘ job goals should be tangible and realistic, because clear and
realistic goals reduce ambiguity and motivate rather than punish. Job goals are
usually a key issue in the performance appraisal process.
5) If an organization wants employees to uphold high ethical standards, this
dimension must be included in the appraisal process. Performance appraisals
should include this dimension, rather than focusing solely on economic
outcomes.
6) Ethics training should be used to help teach ethical problem solving and to
present simulations of ethical situations that could arise. At the least, ethics
training should increase awareness of ethical issues.
7) Independent social audits evaluate decisions and management practices in terms
of the organization‘s code of ethics and can be used to deter unethical behavior.
8) Organizations can provide formal protective mechanisms so that employees
with ethical dilemmas can do what is right without fear of reprisal.
Social Entrepreneurship: A social entrepreneur is an individual or organization who
seeks out opportunities to improve society by using practical, innovative, and
sustainable approaches.
Social impact management: Managers are increasingly expected to act responsibly in
the way they conduct business. Managers using a social impact management approach
examine the social impacts of their decisions and actions. When they consider how
their actions in planning, organizing, leading and controlling will work in light of the
social context within which business operates, managers become more aware of
whether they are leading in a responsible manner.

20. The success of effectively managing these activities as a part of the manager job, it is
recommended that you select one team member at a time and spare adequate effort and time.
The newer approach to these activities are widely accepted and practiced by the world‘s
greatest managers and form the part of managerial competencies, the approach to each of
these activities are outlined below:
Selection of person: Conventionally, any selection of person in a team is based on the
person‘s experience, intelligence, persistency etc but the newer approach urges mangers to
select people based on the talent. The world over, effective mangers today spend significant
time and energy to select talent for the organization and not just mere individuals to fill a
role/vacancy.
Setting Expectations from the team members: To fulfill the targets, good managers often
contract on the right steps to be taken with the team members. However, one managerial
competency that very few managers possess is that of doing the same thing by defining the
outcomes and not only the steps
Motivate the team members: Often Managers make the mistake of motivating team members
by supporting/helping them to identify and overcome weaknesses and as a result focus on the
weakness of individuals. World‘s greatest managers in fact focus on the strengths of team
members and teach them to capitalize on the strengths.
Develop and nurture the team members: Traditionally, the managers‘ role in the team
members‘ development is outlined to help him to learn and get promoted. However, good
managers make a difference if they help the team members to identify the right fit for them.
The background and context of these four key activities to managers‘ success in the role of
a catalyst is outlined in details in the book, First, Break All The Rules. These activities
weave the Managerial duties and responsibilities of every manager job globally.

21. Decision Making: The Essence of the Manager’s Job
Everyone in an organization makes decisions, but decision making is particularly
important in a manager‘s job. Decision making is such an important part of all four
managerial functions that decision making is said to be synonymous with managing.
The Decision-Making Process
A decision is a choice made from two or more alternatives. The decision-making
process is a set of eight steps that include the following:
_ Identifying a problem: A problem is a discrepancy between an existing state
and a desired state of affairs. In order to identify a problem, a manager should
be able to differentiate the problem from its symptom; he should be under
pressure to taken action and must have the authority and resources to take
action.
_ Identifying decision criteria: Decision criteria are criteria that define what is
relevant in a decision.
_ Allocating weights to the criteria: The criteria identified in the previous step
of the decision-making process may not have equal importance. So he decision
maker must assign a weight to each of the items in order to give each item
accurate priority in the decision.
_ Developing alternatives: The decision maker should then identify viable
alternatives that could resolve the problem.
_ Analyzing alternatives: Each of the alternatives are then critically analyzed by
evaluating it against the criteria established in Steps 2 and 3.
_ Selecting an alternative: The next step is to select the best alternative from
among those identified and assessed. If criteria weights have been used, the
decision maker would select the alternative that received the highest score in
Step 5.
_ Implementing the alternative: The selected alternative is implemented by
effectively communicating the decision to the individuals who would be
affected by it and their commitment to the decision is acquired.
_ Evaluating decision effectiveness: The last step in the decision-making process

22. is to assess the result of the decision in order to determine whether or not the
problem has been resolved.
Managers can make decisions on the basis of rationality, bounded rationality, or
intuition.
1. Rational decision making. Managerial decision making is assumed to be
rational—that is, making choices that are consistent and value-maximizing
within specified constraints. A rational manager would be completely logical
and objective. Rational decision making assumes that the manager is making
decisions in the best interests of the organization, not in his/her own interests.
The assumptions of rationality can be met if the manager is faced with a
simple problem in which (1) goals are clear and alternatives limited, (2) time
pressures are minimal and the cost of finding and evaluating alternatives is
low, (3) the organizational culture supports innovation and risk taking, and
(4) outcomes are concrete and measurable.
2. Bounded rationality. As the perfectly rational model of decision making
isn‘t realistic, managers tend to operate under assumptions of bounded
rationality, which is decision-making behavior that is rational, but limited
(bounded) by an individual‘s ability to process information.
Under bounded rationality, managers make satisficing decisions, in which they
accept solutions that are ―good enough.‖ Managers‘ decision making may be
strongly influenced by the organization‘s culture, internal politics, power
considerations, and by a phenomenon called escalation of commitment—
an increased commitment to a previous decision despite evidence that it may
have been wrong.
3. Intuitive decision making. Managers also regularly use their intuition.
Intuitive decision making is a subconscious process of making decisions on
the basis of experience and accumulated judgment. Although intuitive
decision making will not replace the rational decision-making process, it
does play an important role in managerial decision making.