Managerial Skills
Management Functions
1. Planning:- Determine the objectives, Formulate ways to achieve them
2. Organizing:- Arrange the activities, Allocate resources
3. Staffing:- Recruiting the employees, train and develop them
4. Directing/ Leading:- Influence and supervise people, Motivate them
5. Controlling:- Compare actual and standard, Take remedial actions
What should be managed:- Time, Information, Money, People, Task, Stress, Life
What is organization?[ Group of people, Work together, Achievement of common
objectives ]
What is management? [ Resources, Goals, Efficiently, Effectively ]
Efficiency Effectiveness
Doing things right Doing the right things
Output from minimum input Ability to achieve desired goals
Characteristic of Management:-
Goal oriented, Continuous process, Multi-dimensional, Group activity, Dynamic
function, Intangible force, Universal
5 M’s in Management: Men, Money, Material, Machine, Methods
Management Levels
● Top Level:- Set objectives, Scan environment, Plan & make decision
● Middle Level:- Allocate resources, Oversee first-line managers, Report to top
management, Develop & Implement activities
● First-Line:- Coordinate activities, Supervise employees, Report to middle
management, Participate in day-to-day activities
Management Skills
1. Technical skill:- Ability and knowledge to use the equipment, techniques
and procedures involved in performing a specific task.
2. Conceptual skill:- Mental ability to analyze and diagnose complex
situations.
3. Interpersonal skill ( Human skill ):- Ability to work with, understand and
motivate other people individually or in a group
Technical skill, Conceptual skill & Interpersonal skill can be seen in the Middle Level
Management.
PLANNING
What is a plan?
● A detailed proposal for doing and achieving something.
Importance of Planning
1. Give right direction
2. Reduce risks
3. Improves coordination
4. Promotes creativity and innovation
5. Aids other functions of management
6. Increases efficiency
SMART Goals
● S - Specific
● M - Measurable
● A - Achievable
● R - Relevant
● T - Time-bound
Planning process
1. Setting objectives
2. Develop planning promises
3. Identify alternatives
4. Evaluating alternatives
5. Selecting the best option
6. Implementing the plan
7. Monitoring and evaluating the progress
Types of Plan
1. Strategic Plans: involves analysing competitive opportunities and threats, as
well as strength and weakness of the organization & determining the how to
position the organization to compete effectively in their environment.
2. Tactical Plans: creates the blueprint for the larger strategic plan, short term,
carried out by middle level managers.
3. Operational Plans: ( very short term plan, less than a year )
Limitations of Planning:-
Misdirection,Time consuming, Rigidity, False sense of security, Expensive,
Unexpected threats, Problems with staff
LEADING
● Leading is a function of management that involves motivating employees and
influencing their behavior to achieve organizational objectives.
● It focuses on managing people, such as individual employees, teams rather
than tasks.
● It involves the social and informal sources of influence that managers use to
inspire action taken by others.
● Management is a position, and leadership is a relationship with others.
ORGANIZING
Organizing is the process of creating a structure for the organization that will
enable the various players to work together effectively towards its objectives.
1. Identifying and grouping of works.
2. Allocating resources: Organizing involves arranging resources (5M s) to
implement the plan efficiently and effectively.
3. Delegating authorities and responsibilities.
4. Linking people with work activities.
Organizational structure:
❖ System that defines an organization's hierarchy and workflows through the
organization.
❖ how job titles, roles, responsibilities, and authority are assigned in an
organization.
❖ It defines how information flows, who reports to whom, and how decisions
are made. (Hierarchy, span of control, departmentalization, formalization)
Organizational Chart (Organogram): visual representation of the organizational
structure. It depicts the organization as a whole, the various components and their
interrelationships.
Tall Organization Flat Organization
Purpose of Organizing:
❖ Efficient and effective management
❖ To avoid confusion of roles, tasks, authorities, responsibilities etc.
❖ It allocates accountability to each employee for the outcomes of the work
they are responsible for.
❖ It establishes clear channels of communication
❖ It enables managers to deploy resources (human, financial, informational,
and physical)
❖ It enables monitoring of organizational activities.
❖ Allows for coordination of different parts of the organization and different
areas of work.
❖ Encourages good human relations
❖ Optimum utilization of resources
Basic Principles of Organizing
1. Coordination in Organizing
2. Division of work / Work specialization
3. Delegation of Authority
4. Chain of Command
5. Unity of Command
6. Span of Control
7. Accountability and Responsibility
8. Authority and Power
9. Centralization and Decentralization
10.Departmentalization
11.Formalization
Coordination in Organizing
➢ The process of integrating departments both horizontally and vertically.
➢ It is achieved through authority relationships, which involve allocation of
responsibility and authority to each position in the organizational structure.
➢ Ensures different departments and individuals work together harmoniously.
➢ Aligns efforts toward organizational goals.
Division of work / Work Specialization
➢ It involves dividing total workload into tasks that can be logically and
effectively performed by individuals with specialized knowledge.
➢ It allows employees to specialize in specific areas.
➢ It increases work output, efficiency and expertise.
Delegation of Authority
➢ Delegation is the process by which managers assign a portion of their total
workload to others.
➢ It includes assigning formal authority and responsibility for completion of
specific activities.
Why Delegate:
★ Get more work done
★ Subordinates may have some unique expertise which the manager lacks
★ Helps develop subordinate’s managerial skills
★ Enhance prompt action
★ Superiors can take higher level tasks
★ Better decisions as they are made lower down where the problems are
What are the barriers in delegation:
★ Reluctance/inability to delegate due to lack of planning what to and not to
delegate
★ Insecurity due to fear that subordinates may do better and threaten their
positions
★ Lack of confidence in the subordinate to do the job
★ Reluctance by subordinate to accept delegation due to fear of failure, lack of
rewards, risk avoidance tendencies etc. (Incompetent subordinates)
Guidelines for effective delegation:
★ Free communication to ensure subordinates understand their responsibility,
authority and accountability
★ Balance responsibility and authority- give enough authority to achieve
desired results
★ Define the expected results clearly
★ Evaluate the experience and competence of the subordinate before
delegating
★ Be flexible with delegation- modify, increase, decrease or withdraw
★ Supportive managerial climate free from fear, frustration and threats
Chain of Command
➢ The line of authority within a company or institution. It shows who reports to
whom and who is responsible for what decisions.
➢ It defines the reporting lines of individuals and groups in the organizations.
Unity of Command
➢ It implies that each subordinate must have only one manager to report to.
➢ Prevents confusion and conflict in instructions.
Span of Control
➢ It refers to the number of subordinates working under one manager.
➢ Number of subordinates who can be managed effectively and efficiently by
supervisors or managers in an organization.
➢ Span of control management refers to the number of subordinates who report
directly to a given superior.
➢ A manager’s ability to manage a larger number of subordinates is limited by
time, knowledge, energy, personality and the tasks.
➢ Research has shown that managers at the top can handle up to four
subordinates while the lower level can be as high as twenty.
Types of Span:
1. Operational Span: This span generally exists in the lower level of the
management. Here there are a greater number of subordinates supervised
by one supervisor. It creates flat organizational structure.
2. Executive Span: This span generally exists in the higher levels of
management. In here there are a smaller number of subordinates supervised
by one supervisor. It creates a tall organizational structure.
Factors determining an effective span of control:
★ Subordinate training – level of knowledge and experience possessed to
handle the job
★ Degree of hazard or danger associated with the job
★ Clarity of plans – clear policies, rules and procedures to guide decisions and
reduce supervision time
★ Cost of possible mistakes to the individuals and to the organization
★ Extent to which the job is complex
★ Similarity of tasks
Accountability and Responsibility
➢ Accountability is the fact that the people with authority and responsibility are
subject to reporting and justifying task outcomes to those above them in the
chain of command.
➢ Responsibility is the obligation to do assigned tasks.
Authority and Power
➢ Authority: It is the right to do something. It is the right of a manager to make
a subordinate do something in order to accomplish organizational goals.
➢ Power: It is the ability to exert influence in the organization.
There are six sources of powers:
1. Legitimate Power: Is a result of the position a person holds in the
organization's hierarchy.
2. Coercive Power: Power that comes from the ability to punish or impose
consequences. (E.g. A supervisor who threatens to write up an employee for
being late is using coercive power.)
3. Reward power: It comes from the ability to give rewards such as promotions,
raises, praise, bonuses, or desirable assignments. (E.g: A sales manager who
can give bonuses to top performers is using reward power to motivate
employees.)
4. Expert Power: It comes from expertise, skills or knowledge. (E.g: An IT
specialist)
5. Referent Power: It comes from being admired, respected, or liked, often
rooted in charisma (personality) or interpersonal relationships. (E.g: A team
leader who inspires others.)
6. Information Power: Power derived from access to valuable or exclusive
information. (E.g: An executive assistant who knows details about upcoming
strategy changes has information power, especially if others rely on them to
stay informed.)
Line Authority and Staff Authority
The concepts of line and staff can be viewed both as functions and as authority
relationships.
★ Line functions: Refers to those functions that have direct responsibility for
accomplishing the objectives of the firm. The managers responsible are line
managers and the others are line employees.
★ Line authority: refers to the chain of command where line officials have
authority over subordinates e.g. a manager and a subordinate. This is
exercised by all managers irrespective of whether they are line or staff.
★ Staff functions: refer to those functions that support the line functions by
providing expertise, advice and support. Examples are HRM, finance or
research and development
★ Staff authority: The authority given to staff specialists to advise, support, and
assist line managers. They do not have direct control over line employees.
Centralization and Decentralization
➢ This refers to the extent to which decision-making power and authority is
spread to lower levels.
➢ It also refers to the degree of delegation of duties, power and authority to
lower levels of an organization.
➢ Centralization is the degree to which decision making is concentrated at the
top level.
➢ Decentralization is the degree to which decision making is concentrated at
various levels or units.
Factors determine an organization position on the decentralization-centralization
continuum.
★ External environment – the greater the complexity and uncertainty, the greater
the need to decentralize.
★ Tradition – tendency to do things the way they have always been done
★ The nature of the decision – the costlier and riskier they are, the greater the
pressure to centralize
★ The abilities of lower-level managers – the more qualified and competent they
are the greater the tendency for top management to take advantage of their
talents by decentralizing
★ The size of the organization – large organizations tend to be more
decentralized.
Departmentalization
➢ It refers to the logical grouping into manageable sizes of organizational
activities belonging together.
➢ It is an organizational structure that separates people into groups, or
departments, based on a particular set of criteria.
➢ The departments created constitute the organization’s structure and appear
on the organizational chart.
Formalization
➢ Degree to which jobs are standardized and the extent to which employee
behaviour is guided by rules and procedures.
LEADERSHIP
● Leadership is much more than management. It is the ability to lead a group of
followers effectively, make the organization successful, and maintain valid
principles and standards.
● Leaders should have values that are consistent with high moral and ethical
standards.
● Great leaders have the ability to motivate their followers and provoke change.
● Leaders help themselves and others to do the right things. They set direction,
build an inspiring vision, and create something new.
● While leaders set the direction, they must also use management skills
(technical skills, human skills, conceptual skills) to guide their team.
● Successful leaders anticipate change, exploit opportunities, motivate their
followers to high levels of productivity, correct poor performance, and lead the
organization towards its objectives.
● Characteristics of the Leader:- Drive, Honesty & Integrity, Leadership
motivation, Self-confidence, Knowledge of the business, Creativity, Flexibility
Functions of leadership:
1. Directing & Guiding
2. Communicating
3. Motivating
4. Changing
Leadership theories & Approaches:
1. Trait Approach
2. Behavioral Approach
3. Situational Approach
Trait Approach
Common Traits: Intelligence, Confidence, Charisma, Integrity
Behavioral Approach
Three types of behavioral approach:
❖ Autocratic Style: The leader typically tends to centralize authority,
dictate work methods, make unilateral decisions and limit subordinate
authority by prohibiting subordinate participation in decision making
such as work methods and goal setting.
❖ Democratic Style: Leaders with a democratic style tend to involve
subordinates in decision making. They delegate authority and
encourage participation in dividing work methods and goals. They use
feedback as an opportunity for coaching subordinates.
❖ Laissez-faire Style: Leaders usually provide freedom to group
members to make necessary decisions and to complete their work
using whatever methods they see as suitable.
❖ Autocratic or Authoritarian Style :- “Do What I Say”
● All decision-making powers are centralized in the leader, as with dictator
leaders.
● Leaders make decisions without consulting anyone.
● The leader maintains strict control and expects obedience.
● This leadership style is good for employees who need close supervision to
perform certain tasks.
Eg:- Steve Jobs (Apple Inc, in early years) – He was known for his hands-on
and top-down management approach. He made key decisions himself and
expected his vision to be executed precisely.
Advantages of Autocratic Leadership:
★ It allows for fast decisions to be made.
★ It improves productivity
★ It handles crisis situations effectively.
★ Good for inexperienced or unmotivated workers.
★ Inexperienced teams can still produce experienced results.
Disadvantages of Autocratic Leadership:
★ It creates a system of dependence
★ It creates a lack of trust
★ Bad for Highly Skilled and Motivated Workers
★ It may create an unwelcome culture within the organization.
★ It increases the work burden for the leader.
❖ Participative or Democratic Style :- “Let’s work together to solve this”
● Involve people in their decisions, although they may make the final decision.
● The decisions of the democratic leader are not unilateral as with the autocrat
because they arise from consultation with the group members and
participation by them.
Eg:- Sundar Pichai (Google/Alphabet)
A project manager holds regular meetings where team members discuss
progress, propose ideas, and vote on major decisions before moving forward.
Advantages of Democratic Leadership:
★ Solution for Complex Problems
★ Strong Teams are built by Democratic Leaders
★ It improves job satisfaction
★ It encourages stronger commitment levels
★ It promotes a creative environment
Disadvantages of Democratic Leadership:
★ Time Consuming
★ It takes long to process the decisions
★ It can lead to procrastination
❖ Laissez-Faire or Free Rein Style :- “You go and sort out the problem”
● Leaders are minimally involved in decision making.
● A free rein leader does not lead, but leaves the group entirely to itself such a
leader allows maximum freedom to subordinates, i.e. they are given a
free hand in deciding their own policies and methods.
● On the other hand, this type of style is also associated with leaders that don’t
lead at all, failing in supervising team members, resulting in lack of control and
higher costs, bad service or failure to meet deadlines.
● They trust the team's expertise and independence.
Eg:- A software development team is given a goal and deadline, but the
leader steps back, letting the team decide how to achieve it and only checks
in occasionally.
Advantages of Laissez Faire Style
★ It allows team members to maximize their own leadership skills
★ It provides the people with the most experience to shine
★ It creates an environment of independence
★ It encourages team members to explore new ideas
★ It generates more individual satisfaction for the work being done
★ It allows individual teams to create their own environment.
Disadvantages of Laissez Faire Style
★ It downplays the role of the leader on the team
★ It allows leaders to avoid leadership
★ It can be difficult to adapt to changing situations
Few more types of leader’s type:
1. Visionary Leader: A visionary leader is someone who has a clear, compelling
vision for the future and motivates others to work toward that goal. Eg:- Elon
Musk
2. Charismatic Leader: Charismatic leaders inspire enthusiasm, loyalty, and
devotion through their personal charm and compelling personality. (Traits;
Persuasive, confident, emotionally expressive, magnetic.) Eg:- Barack Obama
3. Transformational Leader: These leaders work with teams to identify needed
change and create a vision to guide transformation through inspiration. (traits;
motivating, empowering, emotionally intelligent, innovative) Eg:- Steve Jobs
4. Transactional Leader: Focuses on structured tasks and clear goals.
Rewards and punishments are used to motivate team performance.(traits;
Organized, task-oriented, directive, rule-bound) Eg:- Jeff Bezos (early
Amazon)
5. Servant Leader: Puts the needs of the team first, helping people develop and
perform as highly as possible. (traits: Empathetic, humble, supportive,
community-focused) Eg:- Mother Teresa.
DECISION MAKING
It is the process of choosing between different alternatives.
