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FUNDAMENTALS OF PERSONAL AND
ORGANIZATIONAL SUCCESS
Unit Structure
1.1 Fundamentals Of Personal Success
1.2 Fundamentals Of Organizational Success
1.1 FUNDAMENTALS OF PERSONAL SUCCESS
The personal success of an individual depends on following parameters
Get your Priorities Right
Making intelligent choices
When it comes to determining your priorities, you must decide whether
you want to go to school or work for someone else; if you want to get
married or remain single; if you want children or not; if you w ant to stay
married or divorced; and whether or not to remarry after you've been
widowed or divorced.
Deciding what goals to pursue in which order
Setting priorities correctly entails making informed decisions about which
objectives to pursue in what seque nce, which requires vision and foresight.
Intelligent individuals climb above the present's hills and valleys to look
over the future's hills and valleys, seeing the unseen and the difficulties it
contains. Renowned entrepreneurs such as Microsoft's Bill G ates, Apple's
Steve Jobs, and Facebook's Mark Zuckerberg possessed such vision and
foresight; they could see how technology might alter the lives of ordinary
people and developed goods and services to make their vision a reality.
People in a free society a re always looking for a better life. However, they
do not have an endless supply of resources at their disposal. They cannot
follow all of their interests at the same time. They must define priorities
properly, ranking objectives in order of importance: th e goal to be pursued
comes first, the goal to be pursued comes second, and so on. Getting
priorities right is therefore a matter of what economists refer to as
'opportunity cost.'
It is a matter of weighing various aims and activities to determine where
resources should be directed. Setting priorities entails making informed
decisions. Entrepreneurs must make sound decisions when it comes to
new business prospects, product development, new technology, and new
business models. Individuals must decide whether to attend school,
establish their own company, or work for someone else; whether to marry
or remain single; whether to have children or not; whether to stay married
or divorced; whether to remarry if widowed or divorced; and how to spend
their money. Peop le must devise a plan and chart a course - a road map for munotes.in

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2 their businesses and personal lives. Looking forward and seeing the
unseen and the problem it saves requires vision and insight.
Innovators include Frederick Tudor, Andrew Carnegie, Henry Ford, Bill
Gates, and Mike Dell. They widened their business options, deciding to go
"on new routes rather than tread the beaten pathways of acknowledged
success," in the words of Rockefeller. They attempted something fresh,
something out of the ordinary. They march ed in the other direction of the
throng, seeing sights that others did not. Tudor recognised an export
market that others had missed. Andrew Carnegie invented a substance that
no industry could live without. Bill Gates created a product that computer
users couldn't live without. Mike Dell created a computer distribution
method, transforming a specialised business into a huge one. Being an
innovator is especially vital in oversaturated global marketplaces with a
plethora of rivals. Getting priorities right i n business means: having a
vision, attempting something unique, and going against the grain - these
things usually pay off in the end.
Having the appropriate priorities is what separates successful marriages
from failed ones. Some couples establish their p riorities from the start.
They have a clear view of what they expect from one another and a shared
objective to accomplish. Other couples have the wrong priorities. They do
not have a clear picture of what they expect from each other and have
different goa ls to pursue; they get caught up in petty small things, such as
who will wash the dishes or take out the trash, which leads to divorce.
The difference between financially successful and unsuccessful families is
how they set financial goals and prioritise f inancial priorities such as
protection from catastrophic events, maintaining sufficient liquidity,
earning a high income, and saving enough funds to pay for housing,
children's education, and retirement. And how they rank their day -to-day
spending prioriti es, the things that come top on their shopping lists, the
products that come second and third on their shopping lists. That
necessitates thorough examination of their genuine requirements and
desires, as well as the manner in which various goods meet them.
Families that are financially unsuccessful do not plan at all. They do not
rate their financial objectives, assess their resources, or prioritise their
expenditure. They are unprepared to cope with catastrophic situations,
they lack adequate liquidity, th ey are often indoctrinated by skilled
marketers, and they become shop -alcoholics, purchasing items they don't
need in the first place out of compulsion rather than reason. And they
stockpile the items they acquire in a garage or basement until they can sel l
them at a yard sale. They live above their means, spiralling into debt,
bickering about money on a regular basis, and finally divorcing.
Getting priorities correct for people means: Getting priorities right is one
thing; having the resources to accomplis h them is another. Let us not
forget that the necessity for prioritisation originates from scarcity: limited
resources in comparison to alternative uses for them, i.e. the objectives
that individuals seek. This implies that resources must be utilised
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3 Use Resources Wisely
It’s also about making intelligent choices
Using resources wisely is also about making intelligent choices. In some
cases, using resources wisely means more than shopping around for
bargains for the right merchandise. It also mea ns paying the least interest
and finance charges for the things you buy on credit. Shop around for the
lowest interest rates on a home mortgage; refinance when interest rates fall
sufficiently; and stay away from consumer debt and finance charges that
add to the price of the merchandise you buy.
Deriving the most value out of limited resources
It is about deriving the most value out of limited resources; shopping
around for the right merchandise by asking three simple questions: Do I
need this piece of merc handise? Is the price right? Is this merchandise the
best use of my money?
Using resources wisely in business involves being efficient, accomplishing
more with less, and creating the maximum output with the fewest
resources. In other words, great output is a result of efficiency. High
production equates to cheap expenses. Make the product at a lower cost
than the competitors.
Furthermore, reduced cost gives businesses a competitive advantage and
big revenues.
But, what does it take for businesses to be effi cient?
Several techniques are available: One technique is 'economies of scale,' or
mass manufacturing with a big output size. And a mass market, where a
vast quantity of product will sell. A mass -market has a lower unit cost and
price: the lower the price, the bigger the market size; and the larger the
market size, the higher the manufacturing scale and competitive
advantage. Andrew Carnegie improved efficiency in the late -nineteenth -
century steel industry by mass -producing steel, which translated into
reduced manufacturing costs and cheaper steel prices. Henry Ford
enhanced efficiency in the early twentieth -century automotive business by
mass -producing his T -model vehicle on assembly lines. Sam Walton was
able to enhance efficiency in the late twentieth cen tury retail business via
massive retail stores and volume sales, which translated to cheaper
expenses and lower prices for customers.
However, how can businesses attain large -scale production? What are the
requirements?
It is sometimes necessary to use tec hnical advancements to replace a
current manufacturing process with a fundamentally new, more efficient
one. That is precisely what Andrew Carnagie's Bessmer mill
accomplished. It generated more steel while using less resources. Other
times, mergers or acq uisitions of rivals, as well as the removal of
redundant divisions and departments, are required to provide a higher
output with less resources. John D. Rockefeller extended the extent of his
company's activities in the late nineteenth century oil sector b y purchasing
rivals or putting them out of business. William C. Durrant united twenty -munotes.in

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4 five minor vehicle firms, including Buick, with Oldsmobile and Cadillac
in the first part of the twentieth century to become General Motors. Banks
increased their activit ies by combining with other banks and financial
service businesses in the 1980s and 1990s. Chemical joined with J. P.
Morgan and Chase, while Citibank merged with Travellers. In a third
example, on a bigger scale, strategic alliances are formed when two or
more organisations, frequently former rivals, pool their resources to mass
manufacture a product. Automobile manufacturers, such as Daimler
Chrysler, collaborated with Mitsubishi and Hyundai to create the world's
first family of engines capable of powerin g up to one million tiny vehicles.
Ford Motor Company collaborated with Mazda Motor Corporation to
create an engine for their vehicles as well as Volvo vehicles.
What distinguishes strategic partnerships from mergers and acquisitions?
The parties engaged i n mergers and acquisitions become part of a new
entity, a new and bigger business. Each participant in a strategic alliance
remains a distinct entity. Strategic partnerships combine the advantages of
scale that come from massive production with the benefit s of scope that
come from smaller, more flexible businesses in this manner.
Another effective corporate technique is mass marketing and advertising,
which enables salespeople to contact a large number of consumers and
bind them to their goods. For example, mass marketing and advertising in
the form of publications and showrooms enabled I.M. Singer & Company
to rapidly expand the sewing machine market, Eastman Kodak to expand
the camera market, Sears to become a household name in retailing,
General Motors to catch up with Ford, and Coca -Cola to become a world
brand name.
The use of appropriate logistical and business procedures is a third
technique that increases company efficiency. Toyota Motor Company
established the just in time inventory system, which red uces inventory
costs, in the early 1960s vehicle sector, a method that Mike Dell
introduced in the computer distribution industry a quarter -century later.
Steve Ballmer, Bill Gates' partner in the early 1980s software business,
increased Microsoft efficien cy by substituting overtime compensation for
engineers with bonuses and stock options. With solid logistics and sound
incentive systems that enhanced both capital and employee efficiency,
Southwest Airlines stayed profitable in an allaying sector.
Outsourc ing, or the transfer of firm services and operations to
subcontractors, is a fourth technique. Since the 1960s, multinational
corporations have been relocating manufacturing operations to low -wage
nations in Southeast Asia, Central and Latin America, in or der to save
money by reducing capital equipment and facilities needed for in -house
production and preserving working capital. Recently, multinational
corporations have relocated their product design, R&D operations, and
service support to Ireland and India , where white -collar occupations pay a
fraction of what they do in the United States and the European Union.
In the commercial world, efficiency means: But what about in the home?
What does efficiency imply for families? How can families make better munotes.in

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5 use of their resources? Efficiency implies two things to households: First,
generating the maximum return on human and non -human assets; second,
getting the greatest number of products and services with the fewest
expenditures, paying the lowest price for the co mmodities and services
purchased by families.
Human resources are the resources incorporated in individuals, as well as
the skills and capacities to conduct various market and nonmarket tasks.
Non-human resources are resources that are separate from people -land,
such as buildings and other forms of property that provide income and
value appreciation. Getting the most out of human resources requires
careful career planning, starting school early, completing on time, and
landing the proper job.
What about non -human assets, though? How can they be used most
effectively? What are the requirements?
The purchase of various financial instruments that fulfil their financial
goals. Households must acquire insurance to safeguard their valuables
from catastrophic occur rences. They must get property and causality
insurance to protect themselves against catastrophic catastrophes such as a
vehicle accident or a home fire. They must get disability insurance to
protect themselves against income loss due to disability, and so forth. To
meet their liquidity goal, they must invest a portion of their resources in
money market funds and short -term CDs.
Households should invest a portion of their resources in bonds and high
dividend paying shares to reach the goal of high income. H ouseholds must
invest in small and medium -sized shares to accomplish the goal of price
appreciation. However, investing in shares entails the danger of losing
some or all of your initial investment if equity market values fall below
the purchase price. Inv estors must balance the risks and benefits
associated with each asset type. Long -term, speculative investments such
as tiny and medium -sized equities provide greater returns at a higher risk,
whilst conservative investments such as bonds and Certificates o f Deposit
(CDs) produce lower returns at a lower risk.
Stay Focused
Sticking with your priorities and goals& Take the right steps to reach
your goals
Staying focused means sticking with your priorities and goals; focusing on
the message, not on the backgro und noise; and executing. Take the right
steps to reach your goals. That’s all that matters in the end.
It requires Patience, Persistence and Discipline
Staying focused requires patience, tenacity, and discipline. Patience to
conquer the obstacles that sta nd between you and your objective;
perseverance to overcome failures, setbacks, and temptations that may
derail you; and discipline to play the game correctly, to follow all the
rules: know what you're doing, be punctual, and iron out all the details.
Staying focused entails adhering to your key objectives, focusing on the
message rather than the background noise, and following through. Take munotes.in

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6 the necessary actions to achieve your objectives. In the end, it's all that
counts. People who fail to achieve their objectives squander their
resources and lose reputation among their friends and partners. They are
failures.
But what does it require to maintain concentration? Patience,
perseverance, and discipline are required. Patience to conquer all the
obstacles that lie between you and your objective; perseverance to
overcome the numerous failures, setbacks, and temptations that may derail
you; and discipline to play the game correctly, to follow all the rules:
know what you're doing, be punctual, and iron out all th e details.
Demonstrate zeal for the things you seek. Frederick Tudor was driven by
the desire to transport ice from Boston to the tropics. Carnegie was
passionate about steel, Ford was passionate about automobiles, George
Eastman was passionate about camer as, J.D. Rockefeller was passionate
about oil, and Bill Gates and Michael Dell were passionate about
computers. It needs a strong desire to persevere in the face of setbacks and
adversity.
Ford had to work hard to overcome his early failures with the Detro it
Automobile Company and the Henry Ford Company. William C. Durrant
needed a strong desire to overcome early setbacks in the assembly of
General Motors. Bill Gates and his associates Paul Allen and Steve
Ballmer had to work around the clock for weeks to b uild the code for the
IBM operating system.
Focus relies heavily on passion. People must put their hearts into their
work. It has to be their life or death. Most individuals struggle to
concentrate not because they lack knowledge, but because their heart i s
not in what they are doing, and they are indifferent and apathetic. They
refuse to follow the regulations and carry them out. If your heart and
intellect are not invested in what you do, you have the incorrect priorities
in the first place. You're in the wrong line of work.
But why would you want to be in the incorrect business in the first place?
Perhaps you don't. Perhaps your parents instructed you to. Perhaps you
were intimidated by your peers or just followed the pack.
Sometimes you're in the wrong b usiness because you don't have a choice.
You pursue a company or a job because you need to do something to live,
not because you like it or are excellent at it. In any situation, your heart is
missing. It's looking for something else, and it won't stop pou nding the
proper rhythm until it finds it. And once you've discovered that
"something else," you stay with it.
Develop the Right Relations
Need of friends and partners to overcome theobstacles
Reaching a certain goal requires moral and psychological stamin a.It takes
skills and resources no single individual possesses. This means that in
pursuing personal success, people need friends and partners to overcome
the many obstacles that stand between them and their personal goals. At
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7 and overcome the pressure that comes with class lectures, homework,
exams, and term paper deadlines. Partners provide the information and
expertise to go over complex concepts and to complete coursework
projects , sharing of class notes, participating in discussion groups.
Friends: Moral and Psychological support
At work, friends provide the moral and psychological support to endure
and overcome workplace -related stress, meeting project deadlines,
handling custome r complaints, and dealing with internal politics. Partners
provide skills and expertise to complete complex projects that require
cooperation among several parties.
Partners: Skills and Expertise
Many successful firm founders value friendships and collabor ations, like
HP founders Bill Hewlett and Dave Packard, Google founders Sergey Brin
and Larry Page, and Microsoft founders Bill Gates and Paul Allen.
Reaching particular commercial objectives often involves moral and
psychological endurance, as well as res ources and abilities that no one
entrepreneur has. For example, turning business concepts into products
and start -ups into mainstream operations involves psychological and
emotional assistance to cope with early losses. It also needs funding,
marketing, ma nagement experience, as well as the knowledge and time
that no single individual has.
Partners are considerably more vital in the creation of sophisticated goods
that need the integration of technical and marketing resources dispersed
both inside and outsi de of a firm. For example, the creation of computer
software products necessitates the integration of market and technical
knowledge dispersed across hundreds of engineers and marketers both
within and beyond the traditional bounds of software businesses.
Similarly, the design and development of hardware goods need the
integration of market and technical knowledge that cannot be owned or
controlled by a single person or gathered in a single corporation's research
facility.
What will it take to assemble all of these resources?
There are three requirements. First, there is a shared vision, which is a
common goal that aligns individual interests with those of the partnership,
as well as a set of fundamental values that define partner relations and
interactions with customers, suppliers, and the community. Second, an
efficient and effective communication system that enables corporate
members to interact with one another and exchange vital information for
new product development. Third, mastery of internal and ext ernal
relations that enables corporate members and partners to share the risk and
benefit of new product creation.
In reality, how can this be accomplished?
Through 'collective entrepreneurship,' a flexible organisational framework
is created that allows h undreds or even thousands of hidden entrepreneurs
to come out with the knowledge they hold and join forces for the
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8 networks grow across small, start -up businesses as well as big, establi shed
firms, resulting in efficient and effective communication and incentive
systems. Entrepreneurial networks developed between individual
entrepreneurs and venture capitalists, as well as networks formed between
individual entrepreneurs and business incu bators, foster collective
entrepreneurship in start -ups.
But what about group entrepreneurship at giant corporations?
Two types of institutions foster collective entrepreneurship in big
established firms. First, institutions that reduce internal barriers, enabling
for effective communication among members of the company. Re -
engineering, Total Quality Circles (TQC), and Total Quality Management
(TQM) are examples of such institutions, as are institutions that link the
interests of labour and management with those of shareholders, such as
Employee Stock Ownership Plans (ESOP) and Stock Options. Second,
institutions that decrease huge firms' exterior borders, enabling them to
build strategic alliances with suppliers, consumers, and rivals in order to
spin-off d ivisions and pursue strategic acquisitions.
MS-Windows, for example, was created by teams of engineers and
marketers who were compensated in stock options. Oracle's software was
created via strategic partnerships between Oracle Corporation and
hundreds of major and small partners. Cisco routers were created via
aggressive acquisitions of developing technology and experienced
engineers, as well as collaborations with contract manufacturers like as
Solectron Corporation. Corning's fibre optic cable was create d by teams of
engineers and scientists who transitioned from research to commercial
development.
Friends and partners give entrepreneurs with: Entrepreneurs are not the
only people who need friends and partners; individuals do as well. Friends
in school gi ve moral and psychological support to help students endure
and overcome the pressures of class lectures, homework, exams, and term -
paper deadlines. Partners contribute knowledge and experience to go over
complicated ideas and finish coursework tasks, as we ll as share class notes
and participate in discussion groups.
Friends at work give moral and psychological support to endure and
overcome workplace -related stress, such as completing project deadlines,
dealing with client complaints, and coping with intern al politics. Partners
offer the skills and knowledge required to finish complicated projects that
need tight collaboration among several individuals. Projects nowadays are
team -based, particularly in knowledge -intensive businesses such as
computer hardware and software, telecommunications, and biotechnology.
What does it take to form friendships and alliances?
Friendships cannot be purchased or established in a matter of hours. It
takes time to cultivate and build them, as well as the appropriate chemistry
to bring individuals together. What causes the chemical to exist?
A set of attitudes and situations that foster mutual commitment, trust, and
respect among individuals and foster the formation of a community of
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9 go further jointly than they can alone. Relationships that lack mutual
commitment and trust are opportunistic and do not last.
What exactly are these attitudes?
One such attitude is a desire to devote time and attention to liste ning to all
sides. Give them a sympathetic ear and a chance to reveal themselves.
Listening to others is essential in all relationships. Allow people to express
their issues, interests, and worries; appreciate their sentiments, talents, and
abilities; and enhance their self -esteem. And locate a point of
convergence, a group of shared aspirations and experiences. Relationships
that lack mutual aims and experiences disintegrate over time. That's what
happens to most high school friendships. The majority of th em fade away
over time as individuals move on with their life and no longer share
similar aims and experiences. This is particularly true in today's high -
mobility society, when individuals are more likely to pursue jobs and
chances than relationships. Anot her attitude that fosters mutual trust and
respect in partnerships is a desire to share information and expertise, seek
joint initiatives, and share the risks and benefits that come with them.
Personal friendships and relationships are built on a set of at titudes and
situations that foster mutual trust and respect: Building connections and
collaborations requires a lot of effort. Gluttony, on the other hand, has the
potential to ruin them.
Don’t be Greedy
Greed is an obsession that blurs the vision
Greed is the idolization and relentless pursuit of something that lets people
distinguish and set themselves apart from others —money, power, status,
and so on; the feeling that they never have enough of it, and nothing can
stop them from amassing and accumulatin g it.
Blind dart for money, power, status, and so on
Greed is an obsession that —like alcohol —numbs people’s senses, blurs
their vision, and makes them lose sight of the Big Picture. Greed leads
people to live a life of imbalance and disproportion, a life o f reckless and
dangerous behavior.
Dissatisfied, Selfish, Arrogant – end up losingeverything
People who want everything in life fail to negotiate with others and
compromise, and end up losing everything. People, who want everything
from personal friendship s and partnerships and become selfish and
arrogant, end up destroying them.
Greed is the idolization and constant pursuit of anything that allows
individuals to differentiate themselves from others – money, power,
position, and so on; the belief that there is never enough of it and that
nothing can stop them from gathering and acquiring it. Greed is an
addiction that numbs people's senses, clouds their vision, and causes them
to lose sight of the Big Picture. Greed's aim - money, power, or prestige
for its own sake — becomes the Big Picture. Greed, like many other
obsessions, leads to harmful action. It corrupts honest people into
dishonest ones, and intelligent people into idiots. People who want it all in munotes.in

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10 business become irresponsible, engage in unethical and even criminal
activities, and end up murdering the goose that lays the "golden eggs."
Three examples include energy trader Enron, telecoms operator MCI
Worldcom, and telecom start -up Global Crossing. A number of corporate
executives were determined to drive the firm stock higher at whatever cost
in order to increase their bonuses and profits from stock option schemes.
Some employees went along for the ride, putting all of their money into
business shares. Some consultants and auditors turned a blind eye in order
to earn large fees. Greed eventually killed the 'goose' that lay the golden
eggs. The firm went bankrupt, and several corporate officials were
sentenced to prison, while employees, financial advisers, and auditors are
still counting their losses.
Enron, MCI Workdcom, and Global Crossing are not novel or unusual
situations. During the late 1990s boom, financial analysts who
championed high -tech companies that they personally despised lost their
jobs. Greed in the junk bond market blinded a number o f traders who
ended up in prison for insider trading in the 1980s. People who desire
everything in life fail to negotiate and compromise with others, and as a
result, they lose everything. People who seek everything from personal
friendships and relationsh ips and become selfish and arrogant refuse to
listen to the other people involved, destroying the friendship and
partnership.
Don’t be Overconfident
What is Confidence?
Confidence is having the optimum level of self -belief. Individuals who
have the right amount of confidence succeed because they have the ideal
mixture of confidence and ability.
Overconfidence is often interchanged with arrogance, hubris, and
presumptuousness. It exhibits an excessive degree of self -belief to the
point that overconfident pe ople do not like to accept help and think that
they are the only ones who are able enough. As objective reality is
extremely far from the overconfident mind’s world, a number of problems
are most likely to arise such as being too complacent and irrational which
would eventually lead to failure.
The three domains of confidence, according to Lickerman, are beliefs in
one's:
Competence
The assurance comes from prior instruction and expertise. For example, a
soldier may be confident in battle yet self -conscious when it comes to
public speaking.
Capability to learn and solve problems
Unlike confidence in one's competency, belief in one's capacity to learn
and overcome problems does not need prior training. In general, this area
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11 also often found in unexpected environments and when confronted with
unknown problems.
Intrinsic Value
Being at ease in one's own skin, regardless of beauty, financial position, or
fame, is a sign of inherent va lue. This sector, which is synonymous with
self-esteem, focuses on independence from justification.
Overconfidence, like confidence, includes being able to express oneself
fairly readily. Obviously, both are concerned with self -assurance. Another
commonali ty is the state of motivation. The power of their positive views
about themselves often pushes both confident and overconfident persons.
Nonetheless, there are significant variances between them in addition to
these comparisons. The following paragraphs di scuss how to tell the
difference between confidence and overconfidence.Thin line between
Confidence and Overconfidence
Difference between Confidence and Overconfidence
Confidence Overconfidence
Accepts constructive criticism
“I can do it”
Long -term succe ss
There is no link between this and
psychiatric illnesses.
entices others
Recognizes the risk of failure
Belief is founded on facts.
Other people's help is appreciated.
Accepts responsibility for acts
Be aware of your limits.
Less likely to raise a commot ion
Ensures peak performance
Considers tough activities to be
difficult
Makes sound judgments
Patience is seen as a virtue.
Pays attention to others Does not admit that there is
potential for improvement
“Only I can do it”
Triumphant yet fleeting victory
Associated with narcissism
Others are driven away.
Regrets and resentment may
overtake you.
It disregards the prospect of
failure.
Belief is irrational.
Does not accept help.
Only takes credit for successes
while blaming others for
setbacks.
Has no bounds
It often brings individuals into
trouble.
Underperformance is encouraged.
Undervalues challenging jobs
Makes reckless decisions
This reflects very impatient
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12 Establish clear Mission, Vision, and Values
Mission: Purpo se of why an organization exists
A mission defines the business or companies in which the company plans
to compete as well as the consumers it seeks to serve. The purpose of the
company is clearer than its vision. A mission, like a vision, should define a
firm's uniqueness and be motivating and relevant to all stakeholders.
Together, vision and purpose provide the groundwork for the company to
choose and execute one or more strategies. When workers have a clear
understanding of the ethical principles that w ill govern their actions as
they strive to assist the organisation achieve its vision, the likelihood of
developing a successful mission improves. Thus, corporate ethics are an
important component of the firm's talks about what it wants to become (its
vision), who it wants to serve, and how it wants to serve those persons and
organisations (its mission).
Vision: What an organization wants to achieveor accomplish in the
long term
A visionary firm is founded on ideals. The company's basic core idea or
vision serves as the basis upon which the organisation builds. The brand
values stay intact even as they develop and evolve in response to market
demands. Coca -Cola has been in the market since 1886 and has done an
excellent job of keeping its brand positioning.
Vision is a vision of what the company aspires to be and, in general, what
it aims to accomplish. As a result, a vision statement articulates an
organization's ideal description and provides structure to its desired future.
In other words, a vision stateme nt leads the company in the direction of
where it wants to go in the future. It's also worth noting that vision
statements represent a company's ideals and objectives and are meant to
captivate the hearts and minds of every employee and, ideally, many of i ts
other stakeholders. A company's vision tends to be long -lasting, although
its mission might shift in response to changing external circumstances. A
vision statement is usually brief and to the point, making it easy to
remember.
Values: Deep beliefs that drive the behaviorsof every member of the
organization
Workplace values are one of the most essential considerations when
selecting a new team member. Everything you do is influenced by your
values – and when they conflict, it may be obvious.
Each of us h as our own set of working ideals. And, although you can't
always ensure that everyone's beliefs are exactly matched, you can strive
to employ individuals who are a good fit. In this post, we'll look at how to
discover and comprehend workplace values - the attitudes that "make
them tick."
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13 Your workplace values are the guiding principles that are most essential to
you in your profession. These strongly held ideas govern crucial
judgments and professional choices by allowi ng you to select between
good and improper methods of operating.
Some (potentially contradictory) examples of workplace values are as
follows:
 Accountability.
 Making a positive impact.
 Paying attention to detail.
 Providing high -quality service.
 Being tru thful.
 Fulfilling commitments.
 Being dependable.
 Being upbeat.
 Adherence to deadlines.
 Being an excellent team player.
 Obeying corporate policies and guidelines.
 Demonstrating tolerance.
It is critical that your employees' own workplace values correspond w ith
those of the business. These establish the tone for your company's culture
and identify what your business cares about as a whole.
By offering a unified purpose, values alignment assists the business as a
whole in achieving its fundamental objective. W hen people's values are
out of sync, they strive toward separate objectives, with different intents,
and with different results. Workplace relationships, productivity, job
happiness, and creative potential may all suffer as a result.
1.2 FUNDAMENTALS OF OR GANIZATIONAL
SUCCESS
Definition of Organization Success
In order to be successful, businesses must have both charismatic leaders
and sound managers. Organizations must implement plans and engage
personnel in order to obtain enhanced and sustained outcomes. Success is
determined by examining where the company is in relation to its
objectives and purpose.
Steps for Success
Organizations must consider the future of their company and devise new
strategies for success. Organizations might regard their obstacles as either
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14 their full potential. The path they chose decides whether or not they are
successful. With this in mind, here are four measures leaders can take to
guarantee that their b usinesses are not merely responding to issues but
have a clear grasp of what their company has to accomplish to succeed:
Get the right people
Invest in recruiting the people who possessthe character, chemistry
and commitment thatfit the Mission, Vision and Values of
theorganization
Applications and interviews are good starting points, followed by
regular reviews andappraisals
Recruiting the proper people is critical to the success of your firm, which
is why entrepreneurs should use a rigorous hiring procedu re when seeking
for new employees.
You will increase your chances of recruiting the greatest performers and
avoiding expensive and unpleasant errors if you invest time and effort in
identifying the appropriate personnel.
Many business owners have solid int uition about whether or not someone
is the suitable person for the position. However, you should not depend
only on your instincts. The hiring selection should be based on strong,
objective criteria.
Here are seven strategies to prevent making disastrous r ecruiting choices.
1. Evaluate your company's culture
To find the greatest candidates, you must first understand what your firm
requires. What is its purpose? What are its principles? Who are the people
who fit in? What kind of attitude are you searching f or?
Examine probable candidates in light of this larger picture and evaluate
how they do.
2. Write thorough job descriptions
You will have a difficult time selecting the correct individual if you do not
have a clear picture of what staff are expected to pe rform. Create job
descriptions for each position in the organisation that represent the tasks,
degree of skills, and experience needed.
During interviews, be sure to adequately convey the job requirements to
applicants.
3. Plan out well -structured intervie ws
Create an assessment scorecard that may be used to rate and compare
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Fundamentals of Personal
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15 When it comes time to interview, it's a good idea to have many
conversations with serious candidates and to engage other people in the
process, such as an HR representative and the manager to whom the new
employee would report.
Use strategies such as behavior -based interviewing. This entails asking
applicants to discuss how they dealt with unique obstacles in past roles.
One of the strongest indicators of future success is past performance. You
may also provide them with a challenging circumstance and ask them how
they would manage it.
4. Run a test
Another critical component of the recruiting process is requiring
applicants to complete an ass ignment that demands the abilities for which
they are being recruited. Why not ask the applicant to drive a truck if they
would be required to do so, or to deliver a sales presentation if it is part of
their job description?
5. Look beyond the resume
On pa per, the most qualified people may not be the greatest match for the
position. Inquire about the applicants' interests, goals, and objectives. If
working for a large corporation with a large pay is their desire, they may
struggle to work for a tiny enterpr ise.
6. Request references
It's usually a good idea to double -check references. Despite the fact that
fewer companies give references for prior workers, reference checks
remain one of the strongest sources of information about prospects.
Consider doing som e independent research by contacting persons who
know or have worked with the applicant in the past.
Bring them on board.
Once you've found the greatest candidates, you'll need their entire support.
According to research, a strong orientation programme may enhance new
employee retention by as much as 40%. Aside from patient training, you
may want to explore matching the new employee with a more experienced
employee who can mentor and coach the individual throughout his or her
first days on the job.
Finally, keep two fundamental ideas in mind: job -relatedness and
consistency. Make sure you record every stage of the process and that you
have sound, objective, evidence -based justifications for hiring or not
hiring someone.
Define and Enforce SOPs (Standard Oper ationalProcedures)
The most effective organisations are based on methodologies, frameworks,
and processes. These firms are founded on procedures and frameworks
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16 leadership. Some of these huge organisations have well -structured and
documented systems that have allowed them to leave a worldwide imprint
for an extended length of time. Methods, not individual genius, are the
foundation of great organisations. These systems are integrated into the
core of their company and have been responsible for their long -term
success. They put an emphasis on information exchange and creating a
culture of continuity. These organisations, such as 3M, Coca -Cola, and
GE, have mechanisms in place to facilitate s uccession planning.
Standardization is described as an activity that generates solutions for
repeated application to challenges across several disciplines. In general,
the activity encompasses the process of developing (determining, creating,
and issuing) and implementing standards. Thus, standards are the ideal
outcome of a standardisation operation, and within the context of quality
systems, they consist of quality papers or documents relevant to the
quality system. High levels of quality are required to meet the Company's
commercial goals. Quality, as a source of competitive advantage, should
continue to be a symbol of Company goods and services. High quality is
not an added bonus; it is an essential need. Every employee in every
organisational unit is ac countable for ensuring that their work procedures
are efficient and constantly improving.
The Quality Management system must grow via trial and error, gaining
experience, group debates, and shifting knowledge. At first, emphasis will
be placed on fundament al operating SOPs, before shifting to record
keeping (as additional SOPs are issued) and correcting gaps as practise
reveals missing links in the Quality Assurance chain.
SOPs describe how an organization functionson a day -to-day basis
Standard Operating P rocedures (SOP) are process documents that outline
how an operator should complete a certain task. SOPs include the purpose
of the operation, the equipment and materials needed, how to perform the
process's set -up and operations, how to perform the worker' s maintenance
and shut down operations, a description of safety issues, troubleshooting, a
list of spare parts and where to find them, illustrations, and checklists. The
SOP is one of several process papers required for the consistent
functioning of a part icular process, along with process flow charts,
material specifications, and so on.
Provides Consistency and Clarity
Standard Operating Procedures (SOPs) are sets of instructions with the
force of a directive that cover the aspects of operations that lend
themselves to a clear or standardised process without sacrificing
effectiveness.
SOPs are designed to be particular to the organisation whose operations
are described and to aid that organisation in maintaining its quality control
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Fundamentals of Personal
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17 SOP explains the following points: what is the purpose of SOP (Purpose),
what are the application and usage of SOP (Scope) , who will undertake
duties (Responsibility), who will oversee procedure implementation
(Accountability), and how tasks will be completed (Procedure).
Provide Professional Development to People
Identify the skill gap and develop everyone from the executive team
down to front line supervisors
A professional development plan outlines the goals, needed skill and
competence develop ment, and objectives that a staff person must meet in
order to enable ongoing progress and career advancement. The manager
creates a professional development plan in collaboration with the staff
person to determine the essential skills and resources to mee t the staff
member's career aspirations and the organization's business requirements.
Professional development for staff employees starts when a new person
joins your organisation. Furthermore, all staff employees should have a
"live" professional developm ent plan in place. Planning should not begin
simply after a staff person has been recognised as requiring improvement.
Professional development plans should be evaluated on an ongoing basis
throughout the year, with at least one interim review session betw een the
staff member and supervisor prior to the completion of the annual
performance review period.
Professional Development Planning Steps
Create a professional development plan with your employee by following
the steps below. Please feel free to utilis e the examples of professional
development plans (mentioned above) to help you through the process.
Step One: Request a self -assessment from a staff member.
Step two: Create an evaluation of the individual's ability level.
Step three is to assess the depar tment's and organization's requirements.
Step four: Discuss career advancement prospects with the employee.
Step 5: Keep track of and assess the development of the staff member.
Step One: Request a self -assessment from a staff member.
Request that the staf f member do a self -assessment of their interests,
skills, values, and personality. To help with the process, use the example
performance planning and self -assessment forms linked to the right. Keep
the following questions in mind while analysing the staff member's
responses:
 What talents, employment possibilities, and technology are of interest
to the individual?
 Do those skills/interests/goals complement the organization's needs
and goals?
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Perspective Management
18 Step two: Cr eate an evaluation of the individual's ability level.
Determine the staff member's ability level in the following areas based on
their self -assessment, work history, and your own observations:
 Technical skills: the abilities required to do the task.
 Social skills: how do they interact with others?
 Aptitudes: innate capabilities; exceptional ability for doing or learning
to accomplish specific tasks.
 Attitude: perspective, sentiments, mind -set, manner of thinking, and
point of view.
Step three is to assess t he department's and organization's requirements.
In order for professional development to be effective, staff members'
needs and interests must be matched to corporate goals. The staff
member's career path must be in line with the organization's workforce
requirements. Consider the following objectives while designing a
professional development plan:
 Significant Duke objectives
 Departmental Objectives
 Objectives for the team
 Personal objectives
Step four: Discuss career advancement prospects with the employ ee.
Explore the professional development possibilities offered at Duke with
your staff member. Some examples are:
 Professional Development Academy – The Professional Development
Academy is a facility committed to delivering professional
development trainin g programmes and resources for employees to
address recognised staffing requirements throughout Duke. The
Academy provides long -term training programmes with a customised
curriculum intended to build the skills and capacities required to fill
recognised em ployment needs throughout Duke.
 New Projects & Obligations – Investigate what new projects and
responsibilities the staff member can help with in their own
department. Staff workers may take advantage of such chances to learn
new skills such as web design, business writing, and project
management.
 Courses & Seminars – Learning & Organizational Development
provides a range of workshops and seminars to assist staff members
improve their job and computer technology abilities.
 Educational Possibilities – There are several educational opportunities
accessible at Duke and in the Durham region. Please see Training for a
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Fundamentals of Personal
and Organizational Success
19  Volunteer Activities – Volunteer opportunities might provide a unique
opportunity for a staff person to impr ove certain professional abilities.
Search the Duke Today website for a list of volunteer opportunities at
Duke (look under the "Volunteer Opportunities" tab).
 Mentorship – Interested employees may be linked with mentors for a
range of activities such as i nformation interviews, shadowing,
tutorials, and so on. Please visit the Mentoring At Duke website for
further mentoring options. Before seeking a mentoring relationship,
the Career Development Academy may help you determine your
professional objectives.
Step 5: Keep track of and assess the development of the staff member.
Collect feedback from staff members on their development progress to
assist in identifying what the staff member is doing well, building on their
skills, correcting any problems that may arise, and assisting them in
developing new abilities that will improve personal performance as well as
organisational outcomes.
Use a Performance Log to monitor, record, and provide feedback from
staff members. Dates, events, expectations, and the influen ce of action
measures on their growth should all be recorded. Make a note of:
 Observations of improved abilities or knowledge and how they were
applied
 Make progress toward goals and objectives.
 Observations on where skills/knowledge may be utilised – use for
future discussion.
Encourage Creativity and Innovation
Creativity and innovation are often seen as regular drivers of effective
corporate development. Organizations are under great pressure to innovate
in order to gain a competitive edge in a global ec onomy that is getting
more complex and competitive. As a result, organisational management
must instil or support a culture of creativity and invention inside the
business; nevertheless, most of the emphasis in this effort is on the
individual level, but t eamwork is also generally promoted. Individuals
play a critical role in creativity, and the innovation process need a
supportive, well -managed environment capable of efficiently translating
original ideas into inventive products.
In general, the two notion s are distinct, since creativity may be defined as
the generation of new ideas and concepts that are subsequently
implemented via a process, resulting in innovation. This argues that every
innovation is a process based on the creativity of the mind(s), and
creativity is dependent on innovation to become concrete. As a result, we
might say that innovation is the application of creativity. Creativity and
innovation are often thought of as habits that may be encouraged inside an
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20 Creativity may be achieved by a cognitive decision -making process in
which the decision -making body learns to be aware of its surroundings,
thinks and learns from previous experiences, and then analyses before
making a choice. On the other hand, the innovation process is a series of
creative ideas that begin with concept creation, then primary analysis,
which leads to the stage of making a choice to adopt, and lastly execution
of the idea.
Creating an atmosphere that su pports and promotes experimentation.
Successful inventions are the consequence of never -ending
experimentation, as great firms have shown over and again. 3M began as a
mine and failed spectacularly. For 11 years, the first president did not
receive a salar y. Nonetheless, it grew to become one of the most inventive
corporations, having over 60,000 items to its name.
Create an environment that promotes andencourages experimentation
In today's corporate environment, leaders and managers must apply more
inventi ve strategies and ideas to get more attention, attract more
consumers, and increase revenues. The business world is evolving, and
many organisations are embracing new advertising concepts, customer
service tactics, and technical advancements. Adopting a cu lture of
experimenting may be very beneficial to a company.
A culture of experimentation is introducing new ideas or solutions across
your business without limiting them to certain areas. Experimentation
must be encouraged across the organisation, and mana gers and executives
must adopt a mentality in which they seek out other people's perspectives
or ideas.
Managers cannot believe they know everything about operating a firm.
Innovation is at the heart of an experimental culture. However, it is critical
to experiment with new ideas in order to develop in any sector.
When you do a large number of trials, you will see that certain concepts
bloom while many others fail. Failure is an essential component of an
experimental culture. You will never be able to accom plish that one
brilliant idea that will enable your firm take off and become genuinely
competitive in a crowded market until you explore and fail at certain tasks.
Provide recognition and rewards for newInitiatives
Key Steps for Embedding an Experimentatio n Culture
1. Everyone has a Say
The first step in establishing a culture of experimentation is to guarantee
that everyone's ideas are heard inside a company. According to Forbes,
regardless of level or leadership, listening to and hearing the ideas of all
workers can help you develop an experimental culture.
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Fundamentals of Personal
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21 2. A/B Testing and Metrics
The next stage for a corporation is to use an A/B test to evaluate various
concepts, including competing arguments. Testing and experimenting will
tell if a concept is a succe ss or a failure. Furthermore, examining the
performance data can reveal if your proposal would be successful within
your target audience.
3. Promote New Initiatives
Regardless matter whether a new project succeeds or fails, all lower -level
managers and sta ff should be encouraged to start new projects and
experiment. This kind of support will make more workers feel comfortable
with a prospective concept failing and will enable them to keep
developing. Workers will no longer feel pressured to succeed with eve ry
new concept. Workers and supervisors will also learn from their mistakes
and refine their ideas over time.
Finally, rewarding your employees' efforts will go a long way toward
developing and maintaining a happy, experimental workplace. Following
these m easures will assist you in keeping up with the rapid speed of
change in any sector.
Build Trusted Relationships with Internal andExternal Customers
The client is at the heart of any company. The goal is to make the
consumer happy by providing the greatest goods and services possible. It
is not worth it to invest in innovation that does not deliver value to the end
customer. GE has launched a goodwill and customer happiness
programme in which GE Six Sigma black belts/management professionals
free of charge h elp their customers in optimising processes, lowering
expenses, and resulting in optimal companies for their clients. It's no
surprise that GE is at the top of the list of firms with the highest levels of
customer satisfaction. Other fantastic examples of corporations attracting
clients with exceptional services are technology behemoths Google and
Amazon.
Top-tier companies are founded on timeless values. What is required is top
leadership to instil a desire for change and growth. The most essential
thing i s to keep ahead of your competition by making regular
modifications in response to market needs. The world's most successful
organisations are founded on innovation. Business leaders not only
innovate, but they also capitalise on market possibilities. They foster a
culture of continual innovation and distinguish themselves from the
competition by being unique.
What is an internal customer?
Internal customers have a connection to and inside your organisation,
either as employees or as partners who offer your product or service to the
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Perspective Management
22 also internal customers, which is less evident but no less important. All of
these people may or may not buy your goods or service.
What is an external cus tomer?
External customers are those who pay for and consume the goods or
services provided by your firm. These clients are who you're designing for
while you're brainstorming challenges and developing solutions.
To be clear, an external customer is someone who is not directly related to
your business other than via the purchase of your product or service. This
client might be a one -time buyer or someone with whom you've worked
for a long time and for whom you've supplied add -ons or customization
possibiliti es. External customers may also be referred to as "clients" or
"accounts."
External client objectives might vary depending on your product or
service, such as repeat purchases, recommendations, favourable reviews,
and other forms of support for your firm. You might perform formal or
quick -pulse surveys after or during the transaction. When servicing this
group, the guiding philosophy is often "the customer is always right," and
the income they provide is the lifeblood of your organisation. Your firm
will co llapse if they are not present.
Putting internal and external customers side by side
External clients have been a part of business since humans began creating
and selling goods —a very long time! The concept of an internal customer,
on the other hand, is fa irly recent. Six Sigma, for example, promotes
identifying internal customers as a means of building a more favourable
work environment.
Kind and compassionate leadership, fair and equal remuneration, pleasant
working conditions, cutting -edge technology, an d so on are all examples
of a healthy work environment. According to the logic, the stronger
employee morale, the more those people would work with honesty and
productivity. Morale may also be boosted by the knowledge that they are
contributing to somethin g greater, which has a beneficial impact on how
they operate. According to one school of thinking, happy internal
consumers lead to happy external customers.
However, apart from the feel -good psychology, utilising the phrase
"internal customers" may have s ome actual advantages. It may assist
teams that deal with both internal and external clients prioritise issues and
schedules to enhance inter -departmental communication. Treating
everyone like a client may also inspire workers to take each other as
serious ly as they would a reference or complaint from a third party.
Is it true that unpleasant internal customer experiences have an impact on
external customers?
Once you've decided to handle customers as internal and external, it'll be
easy to see how the form er's experience might affect the latter. For munotes.in

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Fundamentals of Personal
and Organizational Success
23 example, if your internal customers work in a capacity where they interact
with external customers, such as at a contact centre, it is critical that the
technologies they depend on be durable and easy to use.
If your team is frustrated by old procedures and archaic technology, that
experience is likely to be reproduced when your external customers need
support, resulting in twin frustrations —not a good formula for success.
Providing seamless, straightforward expe riences for internal consumers
frees them up to deliver the same for your external customers.
Three factors contribute to internal customer trust:
a) Their supervisors are aware of and respect them.
b) They understand how their job affects the organization 's purpose and
the lives of others.
c) Their performance and achievement are evaluated –
Three factors contribute to the development of external consumer trust.
a) Excellent Product and Service
b) Consistency
c) Transparency



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24 2
MANAGEMENT
Unit Structure:
2.1 Introduction
2.1.1 Introduction to Management
2.1.2 Management and Organization
2.1.3 Management History
2.1.4 Understanding Management’s Context: Constraints and Challenges
2.15 Integrative Managerial Issues
2.2 Global ization
2.2.1 Diversity Management
2.2.2 Statistic of Benefits
2.2.3 Case Studies
2.2.4 Strategies for Leveraging Diversity
2.3 Social Responsibility & Ethics
2.4 Change and Innovations
2.4.1 Process of Change
2.4.2 Barriers To Change Management
2.5 Planning
2.5.1 Importance of Planning
2.5.2 Planning Process
2.5.3 Foundation of Planning
2.5.4 Elements of Planning
2.5.5 Process of Planning
2.5.6 Tools and Techniques Of Planning
2.6 Organizing
2.6.1 Types of Organizational Structure
2.6.2 Elements of Organizatio nal Design
2.1 INTRODUCTION: -
2.1.1 Introduction To Management
Success of an organization depends to a great extent on how well it is
managed. “Effectiveness” and “Efficiency” are the two words that are
often used interchangeably to describe an organizati on. These two words
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Management

25 The word “management” is derived from the two Latin words manus
meaning “hand” and agere means “to act”. In simple words it refers to
“act of getting things done”. Management is to plan, organiz e, direct and
control the resources of the organization for obtaining common objectives
or goals. It involves looking after resources like material, money,
machinery, methods , manufacturing and marketing which is the essence of
success of an organization.
DEFINITION
Management refers to a process of having a set of activities, undertaken by
people sharing a common goal.
According to Harold Koontz
“Management is the art of getting things done through and with people in
formally organized groups”.
According to the GeorgeR.Terry
“Management is a disconnect process consisting of planning organizing
activating and controlling performed to determine and accomplish the
objectives by the use of people and resources.”
According to the Donald. J. Cough
“Managemen t is the art and science of decision making and leadership”.
According to the Henry Fayol
“To manage is to forecast, to plan, to organize, to command, to coordinate,
and to control”.
2.1.2 Management and Organization: -
Management and organization are the words that complement each other.
An organization is a structured group of people established to achieve a set
of goals. Management is the process of leading an organization to achieve
its goals, hiring and supervising the people in it, administering proce sses,
allocating resources, assigning projects, and making key dec isions to
ensure the success of the organization.
MANAGEMENT ORGANIZATION
Management’ is the executive
process of getting works
accomplished by the subordinate
employees. Organisation’ is t he structure
bywhich a harmonious inter -
relation is established between the
workers and their work.
The functions of management are
administrative activities.
Through organisation authority and
responsibility are delegated. These
are organisational activ ities.
Management is the sum total of
several activities —making plan, Organisation is one of the various
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Perspecti ve Management
26 setting up organisation, giving
command and direction, motivating
the employees,coordinating and
controlling various functions of the
enterprise. of management, organisation helps
it to execute its other functions.

The managers perform duties and
respon sibilities for the organization . Organisation acts as a tool in the
hands of the managers
The objective of manageme nt is to
supervise the accomplishment of
work of the subordinate employees
and to give necessary direction for
getting the desired result for
achieving the pre -determined target. Organisation aims at performing
the planned activities through
creating prope r work environment.

Efficient management largely
depend son strong organisation The setting up of effective
organisation structure depend son
efficient management.
Management may be compared to
thewhole human body. Organisation may be regarded asthe
hands of human body.

2.1.3 Management History
“Management history” refers to the history of management thought that
has developed ove r time. It began since the period man saw the need to
live in groups foll owed with industrial revolution that brought drasti c
change. And suddenly, the need to develop a more holistic and
formal management procedure became a necessity.
The evolution of management thought can be divi ded into four different
stages that includes: -
• Pre-scientific management period
• Classical theory
• Neo-classical theory or behavior approach
• Bureaucratic Model of Max Weber
The industrial revolution that took place in the 18th century had a
significant impact on the growth of management. It involved changed how
to raise capital; organize labour and the p roduction of goods.
The last decade of the 19th century, witnessed the growth classical theory
of scientific management. Names like Emerson, F.W. Taylor, H.L. Grant,
and others, contributed for the establishment of scientific management
thatfocused on jo b content, standardization, the division of labor, and a
scientific approach towards the organization. It also was closely related to
the industrial revolution as well as the rise of large -scale enterprises.
Then came the stage of improv ement of the classi cal theory, it
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Management

27 management focus encompasses employee relationship. Such as, in
classical theory focus was more on the area of job content, including the
resources, while neo -classical theory gave more profound emphasis on
employee relationships in the work environment.
A German Sociologist called Max Weber proposed this model. And it
includes a system of rules, division of labour hinged on functional
specialization, legal authority, and power, the hierarchy of authority, and
placement of employees based on their technical competence.
These are the different stages through which the concept of management
has evolved. Management can also be seen as different approaches that
has been adopted from time to time , that has evolved it over the time.

Many management theorists and writers have made remarkable
contribution in the study of management. The various approaches to
management analysis, can help us to understand the concept of
management and have a better understanding of managerial functions. The
various approaches to management analysis are: -
1. The empirical or case approach: In this approach, you try to
understand management principles with the help of cases. You also
identi fies the situations, wherein organizations have either succeeded
or failed by following this approach.
2. The interpersonal behavior approach : This approach i s based on
individual psychology and focuses on interpersonal relationships.
3. The group behavior approach: This approach is based on sociology
and social psychology. It stresses on the behavior of people in
groups.
4. The cooperative social systems approach: It advocates a system of
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28 5. The sociotechnical systems approach: It realizes the impact of
technical systems on personal attitudes and group behavior. This
approach focuses on areas involving c lose relationships between
technical systems and the people involved such as production, of fice
operations, etc.
6. The decision theory approach: The focus in this approach is on the
decision -making process and people involved in it.
7. The systems approach: It considers organizations to be open systems
as they interact with the external environment. It recognizes the
importance of the inter -relationship between planning, organizing and
controlling.
8. The mathematical or “management science” approach: This
approach treats management as a logical process, which can be
expressed in terms of mathematical symbols and relationships.
9. The contingency or situational approach: In this approach, the main
assumption is that there is no hard and fast rule for all situations.
Managerial practice depends upon circumstances. Different
circumstances may necessitate the use of different methods.
10. The managerial roles approach: This approach had been developed
by studying the work methods of five chief executives. The study
identi fied ten managerial roles, which were grouped into three
categories — interpersonal, informational and decisional roles.
11. The McKinsey’s 7 -S framework: The seven S’s used in this
approach are strategy, structure, systems, style, staff, shared values
and skills.
12. The operational approach: This approach attempts to develop the
science and theory of management by drawing upon concepts,
principles, techniques and knowledge from other fields and
managerial approaches.
2.1.4 Understanding Management’s Context: Constraintsa nd
Challenges
The management of an organization largely depends on two aspects,
i.e. organizational culture and organizational environment. It is
important for a manager to understand that the culture and the
environment have important implication in the m anagement of an
organization, so as to gain a better understanding of the complexities
that are present in in ternal and external environment .
Internal environment reflects the organization culture that is being
followed and practiced and external environme nt comprises of
demographic, economic, legal and global factors that influence the
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29


MANAGER - OMNIPOTENT/ SYMBOLIC: -
The Omnipotent View: -This maintains that managers are directly
responsible for the success or failure of an organization.
This view of managers as being omnipotent is consistent with the
stereotypical picture of the “take charge” executive who can overcome
any obstacle in carrying out organization’s objectives. The
performance of an organization is linked t o Manager. Hence it is the
organization culture that matters in management of an organization.
The Symbolic View: -This view holds that much of an organization’s
success or failure is due to external forces that are beyond manager’s
control.
This view a ttributes the various external factors that are responsible
for the success or failure of an organization, hence external
environment plays a n important role in management.
Components of External Environment: -









1.Economic Factors: - The economic environment of business has
changed dramatically in recent years. The various conditions across globe
has impacted the growth and performance of businesses. For example -
after decades of growth and dominance, the U.S. economy is now
challenged by the developing economies of other nations, which are
jockeying to be number one. Since the financial crisis in 2008, the U.S.
economy and businesses have struggled to recover from the greatest
MANAGEMENT
CONSTRAINTS CULTURE ENVIRONMENT



TECHNOLOGICAL GLOBAL
SOCIAL ECONOMIC LEGAL
COMPETITIVE munotes.in

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30 economic crisis . These economic events have all had a direct impact on
businesses, regardless of size.
2. Legal Factors: - The legal environment of business is by far the most
complex and potentially dangerous external factor a business faces. There
are regulations, laws, and liabilities that companies must cope wit h, in
order to stay in business . For example - Volkswagen teeters on the brink of
ruin because it falsified data about its cars’ emissions. Tide is
airing commercials not to promote the marvels of its laundry detergent but
to warn parents to keep the Tide p ods away from children, w ho may be
tempted to eat them.
3. Technological Factors: - Advancement of technology has brought new
challenges in managing businesses.The expansion of Internet access to
virtually every corner of the world has forced many tradition al brick -and-
mortar businesses into e-commerce or online sales. This advancement and
progress has its own advantages and dis -advantages. On one hand
it’sconvenient to reach large set of customer in no time, lot of convenience
but on the other hand consumer s are also able to compare competitors’
prices, benefits, features, and services . Today’s businesses have to be
vigilant about spotting emerging trends not only in technology but in the
way consumers use that technology.
4. Social Factors: - The social envi ronment of business encompasses the
values, attitudes, beliefs, wants, and desires of the consuming public.
The demographics that describe the population by gender, age, ethnicity,
location, occupation, education and income are constantly evolving and so
has to business houses their product and services. The manager has to
keep into account all social factors right from the strategic planning to
actual implementation.
5. Competitive Factors: - The competitive environment has intensified
with the development of new technologies, the opening up of foreign
markets, and the rise of consumer expectations. Customers can order
online, get their items the same day, and receive loyalty rewards, free
delivery, customization, and even service and installation. Staying
competitive is a challenge for every business. More and more
opportunities are opening the doors for new entries, which again put many
fold challenges in front of business.
Management’s Challenges
1. Communicating with Employees: -One of the biggest challenges for
managers is bridging the distance with effective and timely
communication skills.Good managers need to develop advanced
listening and speaking skills as they play a huge role in the success of
their team. Ineffective communication has been found to be one of the
biggest challenges.
2. Performance Challenges :-Performance problems are always going to
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31 environment, if your teams aren’t performing to a high standard, a
competitor could easily come in and take your customer’s business.
3. Tracking Productivity :-Tracking and improving team productivity
remains one of the top challenges facing managers
today.Unfortunately, it has become even more challenging due to our
continuously evolving workplace.
Tracking productivity gets even trickier for managers looking after a
team with different work setups, work habits and timezones.
4. Shaping Organization Culture: -Company culture is a key driver of employee
engagement and productivity. As such, it’s important to address this
challenge. It is necessary to create a workplace culture that marches to the
beat of organisational goals.With more companies adapting to hybrid
working arrangements, this has resulted in more dispersed teams .Ensuring
diversity and inclusion i n the workplace has become one of the biggest
challenges facing today’s modern organizations. Diversity in the workplace
focuses on respecting and appreciating all employees for their
differences Inclusion, on the other hand, focuses on ensuring that all
employees feel valued and supported as individuals, irrespective of their
physical or cultural differences.
5. Technology: -As technologies change practically at the speed of light,
companies need to innovate or be left behind, but many CEOs started their
caree rs and businesses before many of these technologies even existed!
Consultants can be vital for integrating new technologies, in particular
mobile, app development, and cloud computing. There is increased pressure
for today’s managers to keep up as technolo gy continues to evolve. They also
face the challenge of finding the right software solutions to invest in on the
behalf of their organisations.
6. Hiring Right Employee: -Hiring right kind of a person for right job and then
retaining them for longer has become a challenge today. The job enrichment
and efficiency is continuously growing and with such a thing matching the
potentialities of employees has become quite difficult. On top of this every
now and then employees keep shifting from one company to another, in such
a situation generation return on cost is another big challenge.
7. Continuous Improvement: -With the technology changing every now and
then and the globalization puts a huge demands for continuous
improvement.Coping with changing trends and adapting to the change has
become a necessity to be a part of race.
8. Administering policies fairly and consistently: -One of the most common
challenges for managers is treating employees fairly and consistently.
Biasness, favouritism, consideration etc . dilute the unif ormity . A manager
has to be cautious enough in having a uniformity of policies for each and
every employee at each level.
9. Achieving Stretched Goal: -One of the difficult challenges faced in today’s
work culture is the extended targets. Apart from assigned t argets and goals,
an employee/manager has to work for some extra duties that come along with
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32 2.1.5 Integrative Managerial Issues: -
Today’s managers are concerned with such integrativemanagerial issues as
diversity, globalization, and ethics and social responsibility throughout
many aspects of what they do and how they manage.

INTEGRATIVE MANAGERIAL ISSUES









2.2 GLOBALIZATION
Globalization refers to the exchange of goods, services, jo bs, skill and
knowledge across borders. Global organizations exchange goods and
services with consumers abroad. They also use managerial and employee
talent from foreign countries. Furthermore, ‘financially globalized’
organizations, using financial sources and resources from other country, are
also considered global organizations.
Globalization for an organ ization is a four step approach :-
 Global Sourcing
 Exporting & Importing
 Licensing & Franchising
 Global Strategic Alliance
Global Sourcing: -Global sourc ing or global outsourcing is a stage where
a company and its management would enter global market with
minimum investment. They would like to enter the market in outsourcing
activities like labour or raw material, where ever it is cheapest. The
objectiv e is to take advantage of lower costs in order to be more
competitive.
GLOBALIZATION
DIVERSITY
CORPORATE SOCIAL RESPONSIBILITY
CHANGE & INNOVATION
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33 Example -Massachusetts General Hospital uses radiologists in India to
interpret CT scans. However during economic crisis many organizations
reconsidered their decisions to source global ly. For instance, Dell, Apple,
and American Express were few companies that scaled back some of their
offshore customer service operations.
Exporting & Importing :- Export refers to making of products
domestically and selling them abroad, and import refers to acquiring
products made abroad and selling them domestically.
Both activities involve minimal investment and risk, which is why
many small businesses often use these approaches for doing business
globally.
Franchising & Licensing :-Franchising & licensi ng are similar
approaches involving one organization giving another organization the
right to use its brand name, technology, or product specifications in return
for a lump -sum payment or a fee that is usually base d on sales. The only
difference is that li censing is primarily used by manufacturing
organizations that make or sell another company’s products, and
franchising is primarily used by service organizations that want to use
another company’s name and operating methods.
Global Strategic Alliance : - Global strategic alliance is a partnership
between an organization and a foreign company partner or partners in
which both share resources and knowledge in developing new products or
building production facilities.
Once the organization has gain little exper ience, it can enter in to an
arrangement where it can plan of some alliance or collaboration to start
some activity.
2.2.1 Diversity Management :-Having work force from various
background in an organization is now a days very common.
Diversity management re fers to organizational actions that aim to promote
greater inclusion of employees from different backgrounds into an
organization's structure. In the coming years, organizations that
understand how to manage diversity in the workplace effectively will hold
a distinct advantage when itcomes to recruiting and hiring talent.
Workplace diversity refers to the variety of differences between
individuals in an organization. Diversity not only includes how individuals
identify themselves but also how others perceiv e them. Diversity within a
workplace encompasses race, gender, ethnic groups, age, religion, sexual
orientation, citizenship status, military service and mental and physical
conditions, as well as other distinct differences between people.
Challenges: -
 Com munication - Perceptual, cultural and language barriers need to
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34 communication of key objectives results in confusion, lack of
teamwork, and low morale.
 Resistance to change - There are always emp loyees who will refuse
to accept the fact that the social and cultural makeup of their
workplace is changing. If the company doesn't handle opposition
properly, workplace diversity initiatives may not provide the intended
benefits to the company.
 Increas ed Tension: People from different cultural or ethnic
backgrounds can have very different views concerning lifestyle,
religion, and politics that can lead to tension and conflict when these
concepts are introduced into a work environment.
 Learning Curve: Businesses that have difficulty adapting to a more
diverse culture may require diversity training.
 Implementation of diversity in the workplace policies - This can be
the overriding challenge to all diversity advocates. Armed with the
results of employee assessments and research data, they must build
and implement a customized strategy to maximize the effects of
diversity in the workplace for their particular organization.
 Fairness: One of the key challenges in dealing with diversity is
ensuring each wo rker is treated fairly. This does not mean we can treat
everyone the same, as different individuals have different needs.
 Inclusion: Inclusion of all employees is often a challenging part of
diversity management. People often segregate themselves into gr oups
in which they are comfortable. It is the job of the manager to help
workers integrate so that the company and its individuals profit
through associations.
2.2.2 Statistic of Benefits: -
 Gender -diverse companies are 15% more likely to outperform their
peers and ethnically -diverse companies are 35% more likely to do the
same.
 Catalyst research shows that companies with more women on the
board statistically outperform their peers over a long period of time.
Studies also suggested that top management tea ms with a high
representation of women had better financial performance than teams
with fewer women.
 Deloitte Australia research shows that inclusive teams outperform their
peers by 80% in team -based assessments.
 Companies reporting highest levels of rac ial diversity in their
organizations bring in nearly 15 times more sales revenue than those
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35  57% of employees think their companies should be more diverse.
(Glassdoor)
2.2.3 Case Studi es:-
IBM -IBM has always been a leader in diversity management. IBM
diversity and inclusion policies focus on the advancement of women,
people with disability, cultural diversity, generation diversity and lesbian
gay bisexual transgender. IBM’s first writt en equal opportunity policy
called for equity in hiring “regardless of race, colour, or creed was signed
in 1953. IBM recognizes the unique value and skills every individual
brings to the workplace and believes that Innovation comes from seeking
out and in spiring diversity in all its dimension s
Infosys :-Infosys is the first Indian IT company founded in 1981 to set up
a dedicated office for diversity and inclusion. Infosys values diversity and
inclusion and is committed to the principles of equal employmen t
opportunity.They comply with all applicable laws prohibiting
discrimination or harassment against any applicant or employee that
includes, without limitation, discrimination based on age, race, colour,
gender, national origin, religion, creed, disability , covered veteran status,
genetic information etc.
2.2.4 Strategies For Leveraging Diversity: -
1. Set a clear, inclusive vision. As Blanchard explains, that includes
identifying your organizational purpose, picture of the future,
operating values, and action steps.
2. Increase the quality and quantity of conversations occurring
between managers and direct reports. The greater the amount of
diversity there is in the workforce, the more managers have to
communicate to make sure that everyone’s issues and concerns are on
the table.
3. Walk the talk. In the past, if leaders were inconsistent, employees
would talk about it in the bathrooms and in the hallways, but that was
usually as far as it went. Today, people are much more direct, so
integrity is more important than ever.
4. Turn the organizational hierarchy upside -down. Effective day -to-
day implementation requires turning the organizational chart upside
down so that front line people are at the top serving customers while
leaders move themselves to a supporting role an d focus on removing
roadblocks and providing resources.
5. Consider the whole person. Don’t ask people to “leave their nerve
endings at the door.” Employees want their managers to know them as
people —including the issues they might be dealing with both in and
out of work. Employees want to feel cared for, understood, and
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36 6. Increase involvement. As Blanchard likes to point out, “No one of us
is as smart as all of us.” One of the great advantages in having a
diverse population is that you can tackle a problem from a rich variety
of viewpoints. But you have to encourage participation and really
listen to what people have to say to make the most of that opportunity.
2.3 SOCIAL RESPONSIBILITY & ETHICS
The word e thics, refers to principles of behaviour that distinguish between
what is good, bad, right and wrong.Ethics helps managers to take sound
managerial decisions relating to consumers, organisations, employees of
the firm and the organisation as a whole,
Tool s of Ethics: -
1. VALUES: These are permanent desires that everyone want them to
happen in themselves. Values answer the question "why". For a 'why',
answer goes on and stops at point and that poi nt is the value. For
corporates, they run the business . Why? To make profit. Here the profit is
the value. For an individual Peace, Goodwill etc. may be values.
2. RIGHTS: This is a "spree of autonomy" which entails a person to take
an action. Rights are not absolute and are related to the rights of others.
3. DUTIE S: It is a specific obligation to take a specific step by an
individual. Say, for example, the step taken to pay tax, tantamount to
obeying the order.
4. MORAL RULES : They are the rules at behaviour that often become
internalized as moral values .
2.4 C HANGE AND INNOVATIONS: -

Change management is a complex process and requires serious attention
as well as involvement from the management and people from all levels,
in order to achieve a meaningful or a progressive transformation across
various levels . For being ahead in the competitive race and gaining a
winning edge, organizations have been focusing on expansion of business
worldwide, achieving excellence in processes and operations,
implementing innovations in technology and identifying/developing the
right talent. The fast changes which have taken place and the way in which
this has affected the strategies, people, policies and processes in an
organization.
Effective Change management process help organizations in
understanding the changing customer nee ds, meeting their demands and
expectations much better since the requirements are well defined . If
implemented with proper planning, change management does not affect
the day to day functioning of an organization, rather it functions
concurrently. Instead it creates a scope for establishing best practices,
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37 Organizational change can be either adaptive or transformational:
 Adaptive changes are small, gradual, iterative c hanges that an
organization undertakes to evolve its products, processes, workflows,
and strategies over time. Hiring a new team member to address
increased demand or implementing a new work -from -home policy to
attract more qualified job applicants are bot h examples of adaptive
changes.
 Transformational changes are larger in scale and scope and often
signify a dramatic and, occasionally sudden, departure from the status
quo. Launching a new product or business division, or deciding to
expand internationally , are examples of transformational changes.
2.4.1 PROCESS OF CHANGE
1. Prepare the Organization for Change
For an organization to successfully pursue and implement change, it must
be prepared both logistically and culturally. Before delving into logistics,
cultural preparation must first take place.
In the preparation phase, the manager is focused on helping employees
recognize and understand the need for change. They raise awareness of the
various challenges or problems facing the organization that are act ing as
forces of change and generating dissatisfaction with the status quo.
Gaining this initial buy -in from employees who will help implement the
change can remove friction and resistance later on.
2. Craft a Vision and Plan for Change
Once the organizati on is ready to embrace change, managers must develop
a thorough and realistic plan for bringing it about. The plan should detail:
 Strategic goals: What goals does this change help the organization
work toward?
 Key performance indicators: How will success b e measured? What
metrics need to be moved? What’s the baseline for how things currently
stand?
 Project stakeholders and team: Who will oversee the task of
implementing change? Who needs to sign off at each critical stage?
Who will be responsible for implem entation?
 Project scope: What discrete steps and actions will the project include?
What falls outside of the project scope?

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38 3. Implement the Changes
After the plan has been created, all that remains is to follow the steps
outlined within it to implement the required change. Whether that involves
changes to the company’s structure, strategy, systems, processes,
employee behaviors, or other aspects will depend on the specifics of the
initiative.
4. Embed Changes within Company Culture and Practices
Once the change initiative has been completed, change managers must
prevent a reversion to the prior state or status quo. This is particularly
important for organizational change related to processes, workflows,
culture, and strategies. Without an adequate plan, e mployees may
backslide into the “old way” of doing things, particularly during the
transitory period.
5.Review Progress and Analyze Results Conducting analysis
and review, or a “project post mortem,” can help business leaders
understand whether a change in itiative was a success, failure, or
mixed result. It can also offer valuable insights and lessons that
can be leveraged in future change efforts.
2.4.2 BARRIERS TO CHANGE MANAGEMENT:
1. Underestimating the complexity of the change process
Complex problems can present unexpected challenges and obstacles arise
that we have no previous experience dealing with. Change management
means expecting the unexpected and being able to correct course if the
process goes off the rails.
2. Lack of Change Management Knowle dge skills
Every change management strategy emphasizes the importance of
planning and communication. Leaders must involve people from all levels
of the organization and keep them on board with what is happening. Short -
term achievable goals should be a part of the change process to encourage
employee engagement.
3. Lack of accountability
Employees, including managers and front -line workers, need to feel they
are playing a role in the change process in order to feel accountable for the
outcome. This can mean senior leaders holding frequent information
sessions, asking for suggestions and feedback, conducting anonymous
surveys, town halls, and upper - and mid -level managers ensuring an open
door office policy.
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39 4. Management resistance/time pressure
Because they deal directly with lower -level employees and front -line
workers, middle managers are crucial to the overall success of any change
initiative. Employees will pick up on a manager’s doubt or resentment
about the process. Leaders need to ensure all managemen t staff have
suitable time -frames and the resources they need to face the challenges in
front of them.
5. Change structures
There must be a structure in place to allow workers at every level in the
organizational hierarchy to be heard — including managemen t, team leads
and front -line workers. This structure can take the form of a representative
group from each level that works with executives and senior leaders in
decision -making and planning of the change process.
6. Assuming it will be easy
Executives and senior leaders often underestimate the impact that
organizational changes will have on lower level workers. They don’t plan
for allocating new resources or the implications of a resistant corporate
culture. Many factors will stand in the way of change and can’t be
ignored.
7. Lack of senior management modelling
Sometimes senior managers can feel threatened by organizational change.
They want to protect their own positions and are reluctant to support mid -
level managers or listen to those above them. The fl ow of communication
is blocked as workers are not given clear instructions and have nowhere to
express concerns or give feedback.
8. Poor cross -functional teamwork
The negative impact of “soloing” is well -documented. Particularly in
times of organizational change, inter -departmental cooperation needs to be
encouraged. Senior leaders can create teams with members drawn from
different departments and include team leaders and managers in discussion
about overall alignment in corporate goals.
9. No follow up
Continuous reinforcement of the change achievement is necessary.
Workers should be notified of new outcomes with emails that include
metrics. Hold team meetings with stakeholders to provide updates and
give credit to those who participated well in the change process.


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40 2.5 PLANNING
Introduction: -
Planning is the first step where by a manager creates a detailed action plan
aimed at some organizational goal. Organizing is the second step, which
involves the manager determining how to distribute resources and a rrange
employees according to the plan.
Planning means looking ahead and meeting future events effectivel y.
Planning is regarded as a forward -looking function based on forecasting.
On the basis of forecasting, future conditions and events are anticipated
and plans are prepared.
1. Planning is goal -oriented.
a. Planning is made to achieve desired objective of business.
b. The goals established should general acceptance otherwise
individual efforts & energies will go misguided and misdirected.
c. Planning identifies the action that would lead to desired goals
quickly & economically.
d. It provides sense of direction to various activities. E.g.
MarutiUdhyog is trying to capture once again Indian Car Market
by launching diesel models.
2. Planning is looking ahead.
a. Planning is don e for future.
b. It requires peeping in future, analyzing it and predicting it.
c. Thus planning is based on forecasting.
d. A plan is a synthesis of forecast.
e. It is a mental predisposition for things to happen in future.
3. Planning is an intellectual process.
a. Planni ng is a mental exercise involving creative thinking, sound
judgement and imagination.
b. It is not a mere guesswork but a rotational thinking.
c. A manager can prepare sound plans only if he has sound
judgement, foresight and imagination.
d. Planning is always base d on goals, facts and considered estimates.
4. Planning involves choice & decision making.
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41 b. Therefore, if there is only one possible course of action, there is no
need planning because there is n o choice.
c. Thus, decision making is an integral part of planning.
d. A manager is surrounded by no. of alternatives. He has to pick the
best depending upon requirements & resources of the enterprises.
5. Planning is the primary function of management / Primacy
of Planning.
a. Planning lays foundation for other functions of management.
b. It serves as a guide for organizing, staffing, directing and
controlling.
c. All the functions of management are performed within the
framework of plans laid out.
d. Therefore planning is the basic or fundamental function of
management.
6. Planning is a Continuous Process.
a. Planning is a never ending function due to the dynamic business
environment.
b. Plans are also prepared for specific period f time and at the end of
that period, plans are subject ed to revaluation and review in the
light of new requirements and changing conditions.
c. Planning never comes into end till the enterprise exists issues,
problems may keep cropping up and they have to be tackled by
planning effectively.
7. Planning is all Perva sive.
a. It is required at all levels of management and in all departments of
enterprise.
b. Of course, the scope of planning may differ from one level to
another.
c. The top level may be more concerned about planning the
organization as a whole whereas the middle level may be more
specific in departmental plans and the lower level plans
implementation of the same.
8. Planning is designed for efficiency.
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42 b. It avoids wastage of resources and ensu res adequate and optimum
utilization of resources.
c. A plan is worthless or useless if it does not value the cost incurred
on it.Therefore planning must lead to saving of time, effort and
money.
d. Planning leads to proper utilization of men, money, materials,
methods and machines.
9. Planning is Flexible.
a. Planning is done for the future.
b. Since future is unpredictable, planning must provide enough room
to cope with the changes in customer’s demand, competition, govt.
policies etc.
c. Under changed circumstances, the o riginal plan of action must be
revised and updated to make it more practical.
2.5.1 IMPORATNCE OF PLANNING:
1. Planning provides Direction:
Planning is concerned with predetermined course of action. It provides the
directions to the efforts of employees. P lanning makes clear what
employees have to do, how to do, etc. By stating in advance how work has
to be done, planning provides direction for action. Employees know in
advance in which direction they have to work. This leads to Unity of
Direction also. If there were no planning, employees would be working in
different directions and organisation would not be able to achieve its
desired goal.
2. Planning Reduces the risk of uncertainties:
Organisations have to face many uncertainties and unexpected situation s
every day. Planning helps the manager to face the uncertainty because
planners try to foresee the future by making some assumptions regarding
future keeping in mind their past experiences and scanning of business
environments. The plans are made to overc ome such uncertainties. The
plans also include unexpected risks such as fire or some other calamities in
the organisation. The resources are kept aside in the plan to meet such
uncertainties.
3. Planning reduces over lapping and wasteful activities:
The or ganisational plans are made keeping in mind the requirements of all
the departments. The departmental plans are derived from main
organisational plan. As a result there will be co -ordination in different
departments. On the other hand, if the managers, non -managers and all the
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43 be integration in the activities. Plans ensure clarity of thoughts and action
and work can be carried out smoothly.
4. Planning Promotes innovative ideas:
Planning requires high thinking and it is an intellectual process. So, there
is a great scope of finding better ideas, better methods and procedures to
perform a particular job. Planning process forces managers to think
differently and assume the future condit ions. So, it makes the managers
innovative and creative.
5. Planning Facilitates Decision Making:
Planning helps the managers to take various decisions. As in planning
goals are set in advance and predictions are made for future. These
predictions and goal s help the manager to take fast decisions.
6. Planning establishes standard for controlling:
Controlling means comparison between planned and actual output and if
there is variation between both then find out the reasons for such
deviations and taking meas ures to match the actual output with the
planned. But in case there is no planned output then controlling manager
will have no base to compare whether the actual output is adequate or not.
7. Focuses attention on objectives of the company:
Planning functio n begins with the setting up of the objectives, policies,
procedures, methods and rules, etc. which are made in planning to achieve
these objectives only. When employees follow the plan they are leading
towards the achievement of objectives. Through planni ng, efforts of all the
employees are directed towards the achievement of organisational goals
and objectives.
2.5.2 Planning Process:
1. Setting up of the objectives:
In planning function manager begins with setting up of objectives because
all the policie s, procedures and methods are framed for achieving
objectives only. The managers set up very clearly the objectives of the
company keeping in mind the goals of the company and the physical and
financial resources of the company.
2. Developing premises:
Premises refer to making assumptions regarding future. Premises are the
base on which plans are made. It is a kind of forecast made keeping in
view existing plans and any past information about various policies. There
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44 3. Listing the various alternatives for achieving the
objectives:
After setting up of objectives the managers make a list of alternatives
through which the organisation can achieve its objectives as there can be
many ways to achieve the objectiv e and managers must know all the ways
to reach the objectives.
4. Evaluation of different alternatives:
After making the list of various alternatives along with the assumptions
supporting them, the manager starts evaluating each and every alternative
and n otes down the positive and negative aspects of every alternative.
After this the manager starts eliminating the alternatives with more of
negative aspect and the one with the maximum positive aspect and with
most feasible assumption is selected as best alt ernative. Alternatives are
evaluated in the light of their feasibility.
5. Selecting an alternative:
The best alternative is selected but as such there is no mathematical
formula to select the best alternative. Sometimes instead of selecting one
alternativ e, a combination of different alternatives can also be selected.
The most ideal plan is most feasible, profitable and with least negative
consequences.
6. Implement the plan:
The managers prepare or draft the main and supportive plans on paper but
there is no use of these plans unless and until these are put in action. For
implementing the plans or putting the plans into action, the managers start
communicating the plans to all the employees very clearly because the
employees actually have to carry on the a ctivities according to
specification of plans.
7. Follow -up:
Planning is a continuous process so the manager’s job does not get over
simply by putting the plan into action. The managers monitor the plan
carefully while it is implemented. The monitoring of plan is very
important because it helps to verify whether the conditions and predictions
assumed in plan are holding true in present situation or not. If these are not
coming true then immediately changes are made in the plan .
2.5.3 FOUNDATION OF PLANNING :-
Planning is an attempt to manage the future: what is to be
accomplished and how . In essence, "planning is the process of
determining objectives and assessing the way these objectives can best be
achieved." This process determines where the organization should be
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45 TYPES OF PLANNING: -
Formal – written, specific, and long term focus, involved shared goals of
organization.
Informal – not written down, short term focus and specific to organization
unit
PURPOSE OF PLANNING: -
Provides direct ion
Reducesuncertainty
Minimizes waste and redundancy
Sets standards for controlling
Relation Between Performance and Planning: -
Formal Planning is associated with -
Higher profits and returns on assets
Positive financial results
Quality of planning and im plementation affects performance more than
the extent of planning
The external environment can reduce the impact of planning on
performance
2.5.4 Elements of Planning:
1. Objectives:
The important task of planning is to determine the objectives of the
enterprise. Objectives are the goals towards which all managerial activities
are aimed at. All planning work must spell out in clear terms the
objectives to be realised from the proposed business activities.
2. Forecasting:
It is the analysis and interpretat ion of future in relation to the activities and
working of an enterprise. Business forecasting refers to analysing the
statistical data and other economic, political and market information for
the purpose of reducing the risks involved in making business d ecisions
and long range plans. Forecasting provides a logical basis for anticipating
the shape of the future business transactions and their requirements as to
man and material.
3. Policies:
Planning also requires laying down of policies for the easy rea lisation of
the -objectives of business. Policies are statements or principles that guide
and direct different managers at various levels in making decisions.
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46 overall boundaries w ithin which the decision -makers are expected to
operate while making decisions. Policies act as guidelines for taking
administrative decisions.
4. Procedures:
The manner in which each work has to be done is indicated by the
procedures laid down. Procedu res outline a series of tasks for a specified
course of action. There may be some confusion between policies and
procedures. Policies provide guidelines to thinking and action, but
procedures are definite and specific steps to thinking and action. For
exam ple, the policy may be the recruitment of personnel from all parts of
the country; but procedures may be to advertise and invite applications, to
take interviews and offer appointment to the selected personnel.
5. Rules:
A rule specifies necessary course of action in a particular situation. It acts
as a guide and is essentially in the nature of a decision made by the
management authority. This decision signifies that a definite action must
be taken in respect of a specific situation. The rules prescribe a definite
and rigid course of action to be followed in different business activities
without any scope for deviation or discretion.
6. Programmes:
Programmes are precise plans of action followed in proper sequence in
accordance with the objectives, polic ies and procedures. Programmes,
thus, lead to a concrete course of inter -related actions for the
accomplishment of a purpose.
7. Budgets:
Budget means an estimate of men, money, materials and equipment in
numerical terms required for implementation of pl ans and programmes.
Thus, planning and budgeting are inter -linked. Budget indicates the size of
the programme and involves income and outgo, input and output.
8. Projects:
A project is a single -use plan which is a part of a general programme. It is
part of the job that needs to be done in connection with the general
programme. So a single step in a programme is set up as a project.
Generally, in planning a project, a special task force is also envisaged.
9. Strategies:
Strategies are the devices formul ated and adopted from the competitive
standpoint as well as from the point of view of the employees, customers,
suppliers and government. Strategies thus may be internal and external.
Whether internal or external, the success of the plans demands that it
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47 2.5.5 Process of Planning

Perception of the Opportunities:
The manager must first identify the opportunity that calls for planning and
action. This is very important for the planning process because it leads to
formulation of plans by providing clue as to whether opportunities exist
for taking up particular plans.
Establishment of the Objectives:
The next step in the planning process lies in the setting up of objectives to
be achieved by the enterprise in the clearest possib le terms keeping in
view its strength and limitation. Objectives specify the results expected in
measurable terms and indicate the end points of what is to be done; where
the primary emphasis is to be placed, and what is to be accomplished by
various types of plans.
Building the Planning Premises:
After determination of the organisational goals, it is necessary to establish
planning premises, that is, the conditions under which planning activities
will be undertaken. This involves collection of facts and f igures necessary
for planning the future course of the enterprise. ‘Planning Premises’ are
planning assumptions relating to the expected environmental and internal
conditions.
Identifying the Alternatives:
The next step in planning process is to search fo r various alternative
courses of action based on the organisational objectives and planning
premises. A particular objective can be achieved through various actions.
Evaluation of the Alternatives:
Various alternative courses that are considered feasible in terms of
preliminary criteria have to be taken for detailed evaluation. Alternative
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48 and organisational facilities. The strong and weak points of every
alternative should be analysed carefully.
Choice of the Course of Action:
After the evaluation of various alternatives, the most appropriate
one is selected as the plan. Sometimes evaluation shows that more
than one alternative are equally good. In such a case, the manager
may choose more than one alternative at the same time.
Formulation of Supporting or Derivative Plans:
After the best alternative is decided upon, the next step is to derive various
plans for different departments or sections of the organisation to support
the main plan. In an organisation, there can be various derivative plans
like planning for buying raw materials and equipment, developing new
product, recruiting and training the personnel, etc.
Establishing the Sequence of Activities:
After formulating th e basic and derivative plans, the sequence of
activities is determined so that the plans are put into action. Based
on the plans at various levels, it can be decided who will do what
and at what time. Budgets for various periods can be prepared to
make pla ns more concrete for implementation.
Securing Participation:
Plans must be communicated in greater details to the subordinates
to increase their understanding of the proposed action and for
enlisting their co -operations in the execution of plans. It will , thus,
add to the quality of planning through the knowledge of additional
facts, new visions and revealing situations.
Providing for Future Evaluation:
For ensuring that the selected plans are proceeding with the right
lines, it is of paramount importa nce to devise a system of
continuous evaluation and appraisal of the plan. It will help in
detecting the shortcomings and pitfalls of the plans and taking
remedial actions well in time .
2.5.6 TOOLS AND TECHNIQUES OF PLANNING:
Management and Planning tools are:
1. Affinity diagram organizes a large number of ideas into their natural
relationships.
2. Interrelationship diagram : Shows cause -and-effect relationships and
helps analyze the natural links between different aspects of a complex
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49 3. Tree diagram : Breaks down broad categories into finer and finer
levels of detail, helping to move step -by-step thinking from
generalities to specifics.
4. L Shaped Matrix diagram : Shows the relationship between two,
three, or four groups of information and can give informati on about the
relationship, such as its strength, the roles played by various
individuals, or measurements.
5. Matrix data analysis : A complex mathematical technique for
analyzing matrices, often replaced by a similar prioritization matrix. A
prioritization ma trix is an L -shaped matrix that uses pairwise
comparisons of a list of options to a set of criteria to choose the best
option(s).
6. Arrow diagram : Shows the required order of tasks in a project or
process, the best s chedule for the entire project, and potent ial
scheduling and resource problems and their solutions.
7. Process decision tree : Systematically identifies what might go wrong
in a plan under development.
2.6 ORGANIZING: -
Organizing involves assigning tasks, grouping tasks into departments,
delegating au thority, and allocating resources across the organization .
During the organizing process, managers coordinate employees, resources,
policies, and procedures to facilitate the goals identified in the plan.
An organizational structure is a set of rules, role s, relationships and
responsibilities that determine how a company's activities should be
directed to achieve its goals. It also governs the flow of information
through levels of the company and outlines the reporting relationship
among midlevel staff, sen ior management, executives and owners.
2.6.1 TYPES OF ORGANIZATIONAL STRUCTURE: -
Hierarchical structure
A hierarchical structure, also known as a line organization, is the most
common type of organizational structure. Its chain of command is the one
that likely comes to mind when you think of any company:
Functional structure
The functional structure is a centralized structure that greatly overlaps
with the hierarchical structure. However, the role of a staff director instead
falls to each department head – in other words, each department has its
own staff director, who reports to the CEO.
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50 Divisional structure
The centralized structure, known as a divisional organization, is more
common in enterprise companies with many large departments, markets or
territories.
Flat structure
A flat structure is a decentralized organizational structure in which almost
all employees have equal power. At most, executives may have just a bit
more authority than employees, as seen in this flat structure template..
Matrix st ructure
The matrix structure is a fluid form of the classic hierarchical structure.
This centralized organization structure allows employees to move from
one department to another as needed, as the horizontal lines in this matrix
organization template indi cate.
Team structure
A team structure is a decentralized but formal structure that allows
department heads to collaborate with employees from other departments
as needed.
Network structure
A network structure is especially suitable for a large, multi -city or even
international company operating in the modern era. It organizes not just
the relationships among departments in one office location, but the
relationships among different locations and each location's team of
freelancers, third -party companies to w hom certain tasks are outsourced,
and more. While this may sound like a lot for one type of network
structure to detail, this network structure template.
Projectized structure
In a projectized structure, the focus is on one project at a time. In this
centr alized organizational structure, project manager s act as supervisors,
not just resource allocators and decision -makers.
2.6.2 Elements Of Organizational Design
A well -designed organizational structure not only defines functions,
hierarchy, roles, and resp onsibilities but also the alignment of
organizational goals of staff/teams. Poor organizational design or structure
may result in serious downfalls in organizations i.e. ambiguity of roles,
lack of trust in team and superiors, rigid work environment, slow and
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51 Chain of Command/Line of Command
In this, the authority and power are delegated from top to bottom i.e. in an
organization top management gives instructions to the bottom team and all
the employees at each level. Further, the accountability of an employee’s
job flows upward to the management. It gives clarity of the reporting
structure in an organization.
Span of Control
“Span Of Control” demonstrates how wide is the area of the direct control
of supervisors over their subordinates which is directly related to how
many subordinates (in numbers) report to a senior or supervisor; which, in
turn, depends on the number of tasks performed at different levels. In case
of more tasks, the span of control will be wider.
Centrali zation
Centralization refers to centralizing an organizational system where
planning and decision -making authority is allotted either to a single person
or the top management. A decentralized organization is the one where
planning and decision -making are h anded over to middle or low -levels.
Specialization
Large organizations divide some of its functions based on the specialized
areas and, so, subtasks are defined in different tasks. These subtasks are
distributed among individual job roles.
Formalization
Formalization refers to the process of specifying or mentioning rules,
procedures, and duties to the employees as an individual as well as to the
teams, departmen ts, units, and the whole organization by managers in
written form too. Formalization indicates the goals and vision of an
organization, tasks, hierarchy and relationships, authority and
responsibilities, different processes, and work methods.
Departmentali zation
Departmentalization is the process of dividing organizational functions
into different departments as per specializations of jobs or responsibilities
so that the common tasks can be handled by specialized teams.


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52 3
MANAGING YOUR CAREER AND
UNDERS TANDING ORGANISATIONAL
DYNAMICS
Unit Structure
3.0 Objectives
3.1 Introduction
3.2 Leadership Functions
3.3 Leadership Styles
3.4 Skills Required
3.5 Choosing the right positions
3.6 Special dilemmas of early career
3.7 Landing stretch assignments
3.8 Building a network of relationships
3.9 Challenges faced by the minority
3.10 Developing ethical judgement
3.11 Assessing your career
3.12 Summary
3.13 Exercise
3.0 OBJECTIVE
After studying this unit students will be able to -
 Understand Leadership Functions
 Built up a promising career
 Decide right career options
 Network building with effective relationships.
3.1 INTRODUCTION
Leadership is important in every Organisation. Leadership enhances
personal as well as organisational growth and development. Due to
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53 deliver prompt services. In the words of George Terry “Leadership is
the activity of influencing people to strive willingly for group
objectives .”
Alford and Beatty define, ‘’ Leade rship is the ability to secure desired
actions from a group of followers voluntarily, without the use of
coercion.”
Managers need to be good leaders. A leader according to Webster’s
Dictionary “is a person who takes charge of or guides a performance
or act ivity.”
3.2 LEADERSHIP FUNCTIONS
Leadership Functions play a major role in any Organisation. They help an
Organisation to grow internally as well as externally.
Following are various Leadership Functions:
1) Organising
2) Motivating
3) Evaluating
4) Controlling
5) Briefing
6) Planning
7) Defining the task
8) Providing an example
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54

1) Organizing :
Organizing is possible on a large extent due to Leadership. Leadership
enables organizing resources, machinery, raw materials etc. A well
organised organisation has chances of achi eving higher results. Due to
effective leadership organisations are able to manage their staff well, cater
to their needs and expectations, and fulfil their organisational demands. In
order to be ahead in competition, organisations must appoint effective
leaders who deliver excellent performance in organising tasks and
activities.
2) Motivating:
Effective leaders undertake different motivational factors to encourage
their team mates. Some of the motivational factors undertaken by leaders
include:
MONETARY FACTORS:
 Salaries and Wages
 Bonus
 Incentives etc .
NON -MONETARY FACTORS:
 Status
 Appreciation
 Delegation etc.
Advantages of undertaking motivation include :
1) It induces the employees to be innovative
2) It improves the corporate image due to effective performance of
employees.
3) It generates higher efficiency.
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55 5) Motivated employees make optimum use of resources.
6) It enables the firm to develop competitive advantage.
7) It helps to reduce absenteeism of employees.
8) It also makes the employees loyal to the organisation.
3) Evaluating:
Leaders need to evaluate the company results from time to time. They
need to discuss important areas with their team mates with the help of
latest technology. Some of the technology instruments used i n case of
evaluation of results include:
 Zoom Meetings
 MS Teams Meetings
 Google Meet
 Team call on WhatsApp Video call
Effective evaluation of timely results gives rise to increase in growth and
development of the organisation on a greater extent.
4) Controlling:
Organisations need to appoint leaders who are efficient in controlling
resources and manpower. Resources are at times subject to being
unutilised or are wasted when used without care, hence leaders need to
keep a check on the resources used, o rdered etc. Manpower controlling is
also very essential. They need to undertake software’s such as HRIS, ATS
etc. to know accurate details of employees working in the organisation.
Such techniques of controlling resources and manpower would help
organisati ons grow internally as well as externally.
5) Briefing:
Leaders need to brief their subordinates about tasks to be performed,
responsibilities to be handled, strategies to be made for performance
deliverance etc. Its only when company leaders converse with their team
mates regarding roles and responsibilities to be handled, subordinates get a
central idea of what is to be done and how it is to be done. Subordinates
have the capacity of doing a lot of work independently but the work is
organised well when th eir superiors brief them about important areas to be
covered.
6) Planning:
Planning makes an organisation stand ahead in competition. When leaders
plan their activities, subordinates are able to understand their duties
accurately. Planned activities have h igher chances of getting completed on
time as compared to unplanned activities. During company audits, Leaders
can showcase their annual plans to auditors giving them a higher chance of
delivering good audit reports. When organisations undertake planning,
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56 and superiors should indulge themselves in effective planning for
increasing company profits.
7) Defining the Task:
Leaders are required to define tasks assigned to them with the help of
conducting Seminars, Conferences, Webinars etc . so that their
subordinates know their duties properly. Well -defined tasks are
understood well and easily grasped by subordinates which increases
chances of timely completion of work and reducing last minute pressure.
Subordinates are well aware of their duties on an earlier note which gives
them more time to systematically plan their daily schedule and also focus
on individual growth while delivering results.
8) Providing an example:
Subordinates learn on a large extent when they are provided with live
examples. Sometimes even past examples of team mates can be discussed
so that subordinates learn a lesson from it and refrain from making future
errors. Examples can also be explained with the help of Pie -Char ts, PPT
Presentations, Excel Sheets , Line Graphs etc. Every organisation can
decide their examples taking into consideration number of employees
working at a particular task, resources used etc. For this, effective leaders
should be appointed through vario us interview rounds judging their
capabilities.
3.3 LEADERSHIP STYLES
Every manager develops a style in managing the activities. Such styles
vary from leader to leader, from situation to situation and from
organisation to organisation.
In the words of Edw in Flippo, “ Leadership style is a pattern of
behaviour designed to integrate organisational and personal interest
in pursuit of some objective.”
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57

1) Autocratic Style:
An autocrat is the one who takes all decisions by himself and expects to be
obeyed by hi s subordinates. The subordinates have no scope to question
the superior. Certain points to be noted in this respect:
 The superior makes the decision.
 The superior does not consult the subordinates in decision making
 The superior is responsible for the decision.
 The relations between superior and subordinates are formal.
2) Bureaucratic Style:
This type of leadership style is more followed in government departments.
The bureaucrats often follow rules and regulations in totality. They do not
use their discre tion, even to do away with mere formalities. They strictly
follow the scalar chain principle, even in the case of urgency. The
following points to be noted:
 The bureaucrat takes the decision by strictly following formalities, or
rules and regulations.
 The subordinates are often not consulted.
 The bureaucrat may avoid responsibility.
 The relations between superior and subordinates are formal.
 This style results in delay and red tape and unwanted paper work.
3) Consultative Style:
In this type, the leader consults his subordinates before taking a decision.
The leader feels that it is always advisable to consult the subordinates.
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58 from the subordinates before making a decision. The following points to
be noted:
 The superior consults the subordinates before making a decision.
 The subordinates may give their suggestions or comments, which the
superior may or may not accept.
 The superior makes the decision.
 The superior is responsible for the decision.
 The relations between superior and subordinates are informal.
4) Participative Style:
The leader not only consults the subordinates, but allows them to take part
in decision making. The following points are to be noted:
 The superior consults his subordinates before making a decision.
 The leader along with the group take part in decision making.
 Both the leader and the group share the responsibility for making the
decision.
 The relations are informal.
5) Laissez -faire Style:
The term laissez faire comes from the French language which means “Let
them do - the way they want to do.”
In this style, the leader shares the problem with the group. He acts more
as a chairperson in generating and evaluating alternatives in search of
group consensus. The following points are to be noted:
 The superior allows the subordinates to take decision.
 The superior acts more as a guide in arriving at decision.
 The superior and the subordinates share the responsibility.
 The relations are very informal.

6) Paternalistic Style:
This style aims at creating a family atmosphere within the organisation.
The leader is respected and treated as a father figure by the subordinates.
This style is mostly followed in Japanese organisations. The following
points to be n oted:
 The leader considers himself as a parent figure.
 The leader may consult his subordinates.
 Mostly the leader takes the decision.
 The leader is responsible for decision making.
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59 This type of style is more suitable in small organisations, where there are a
handful of employees and just one leader or boss. The leader advises,
guides, consoles and helps the subordinates even during their personal
hardships.
7) Sociocratic Style:
Sociocrats attempt to run their organisation like a social club. The leader is
more employee oriented rather than work oriented. For them, the interest
of the subordinates comes first and then that of the organisation.
The following points to be noted:
 The superior takes a decision by keeping the interest of the
subordinates. The interest of organisation may be secondary.
 The superior consults the subordinates for decision making.
8) Neurocratic Style:
A neurocrat is highly task oriented and wants to get the things done at any
cost. He is highly sensitive and gets quickly upset at failures. The
following points to be noted:
 The leader may be emotional and eccentric.
 The leader may not consult the subordinates in decision making.
 The leader takes the decision.
 The leader is responsible for decision making, but h e may shift the
responsibility on to his subordinates.
9) Situational Style:
Now -a-days, in professionally managed organisations, the managers adopt
situational leadership style. This means, the leadership style varies
depending upon the situation. The situat ional leadership is a combination
of three main leadership styles
a) Autocratic
b) Consultative and
c) Participative - depending on situation.
 The leader may follow autocratic style in urgent and important
decision, when there is no time to consult the subordinates.
 The leader may follow consultative style to overcome the resistance
from the subordinates, and also to obtain relevant suggestions or
information.
 The leader may adopt participative style , especially when group
decision making is necessary.
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60 3.4 SKILLS REQUIRED FOR LEADERSHIP
1) Team Spirit:
A Leader should be one who can generate effective team spirit. Its only
through team spirit subordinates are able to achieve their org anisational
goals. Team spirit is necessary for motivation, focus, all round
development of employees and the organisation. Companies benefit on a
great extent due to Team spirit.
2) High Confidence level:
Leaders need to have high confidence level. At times of crisis, it’s only the
positivity and confidence level of leaders that help their team win. Leaders
need to have a positive outlook almost in all situations. They need not get
worried or upset on small issues. They should be willing to work outside
their comfort zone to guide their subordinates.
3) Analytical Thinking:
Analytical thinking is a must for all leaders. They need to plan their tasks
and activities well in advance to avoid last minute confusion. If a leader is
analytical in his approach, he will b e able to make his team strong in all
given situations. Analysis will help the team to perform better.
4) Challenging attitude:
Teams grow internally as well as externally when leaders showcase
challenging attitude. Almost every organisation is subject to new er
challenges but those organisations grow variably whose leaders are
challenging and goal oriented. Challenges at times make an organisation
future ready for upcoming hurdles. Leaders too can utilise their
challenging attitude while training their subordi nates.
5) Risk oriented:
Risks are necessary for any corporate to be ahead in competition. Risks
could be financial, human, related to machinery etc. If a leader fears in
taking risk, he will lose competitive advantage and his team would have to
suffer in the near future. While on the other hand if a leader takes risk with
appropriate precautions, he will gain the benefits of competitive advantage
and his organisation will also grow profitably.
6) Active Listener:
A leader needs to be an active listener. He/she n eeds to pay heed to the
problems and difficulties faced by their respective team members.
Common problems faced by team members include internal conflicts
among team members, lack of trust, lack of coordination, jealousy etc. If a
leader tries to solve the se common issues in an innovative way, he will be
liked by his team members and his team will be able to deliver efficient
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61 7) Creative:
A leader has to be creative in everything that he does. Creativity would
give rise to increased interest in team m embers towards their work which
would result in higher performance. Leader can also make a separate
creativity team among his subordinates who would look after the finalising
and graphics of presentations while presenting to the shareholders.
Creative idea s can also help in gaining a lot of public attention.
8) Independent worker:
A leader should be an independent worker. He/she should not be one who
approaches other team members to take his/her decisions. He should be
confident and clear about his agenda of work and duties to be assigned. He
cannot take things lightly and work on a lazy mode. He has to be
independent, alert, goal driven. Independency in work gives chances of
accuracy.
3.5 CHOOSING THE RIGHT POSITIONS
Career options are a very esse ntial part o f each individual’s life. Choosing
the right position is thus very important. Following are th e areas to be
taken into consideration while choosing career options or right positions:
1) Research:
Research is very important while choosing right positions for career. Its
only through research that an individual can understand which career
option or position is suitable for him/her. Research methods that can be
adopted in this respect are Google searc h, asking peers, Alumni reports
etc.
2) Live Discussions:
Individuals can involve themselves in live discussions with their
Professors, Institute heads etc. For this purpose, they can attend webinars,
seminars, conferences where the main area of discussion is Career growth
and development. Live discussions would give individuals a chance to get
their doubts cleared and take better decisions.
3) Reading career options online:
Career options and choosing right positions for it makes an individual
professionally sta ble. For this one can go through various online articles
available on various sites such as Quro.com, Wikipedia, Fresherlive.com.
Such sites can help individuals in deciding their right career options and
simultaneously appropriate career positions.
4) Subscr ibing News articles:
News articles play a very vital role in career selection. There are various
topics discussed in special columns of newspaper which can give
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62 unaware of career o ptions to be selected after their graduation. There are
PDF’s available in this respect. Hence subscribing news articles would be
of great benefit.
5) Career Development programs:
Career development programs nowadays is doing a great job in helping
individual s in their career selection and choosing right positions. One can
enrol themselves in paid versions of career development programs. For
example: International Model United Nations (IMUN) is an organisation
that gives thousands of students and working profe ssionals a chance to do
internship with them for a period of 1 month and promote their
Conferences through social media.
6) Usage of social media:
Individuals can make use of social media posts in their career selections.
They can get in touch with students f rom all over the world and raise their
doubts of career selection. Students from diverse locations can interact
with each other and get their study material ready for giving competitive
exams such as GMAT, CAT, TOEFL etc.
7) Group Discussions:
Group discussions can help individuals on a great extent in their search of
right positions. Many a times personal experiences discussed during these
group discussions helps students to relate their current situation to the
speaker’s situation. Hence, Group disc ussions help individuals in their
career selection.
3.6 SPECIAL DILE MMAS OF EARLY CAREER
A career dilemma is a hypothetical or real situation in which a character is
confronted with several career options each of which has advantages and
disadvantages.
Mid-career dilemma management traditionally focuses on fighting against
the forces that someone has been struggling for a long. This is the reason
why an individual’s mid -life and mid -career crisis appear almost
simultaneously.
The most prominent career di lemmas that were identified included
performance management and promotion; role overload and role conflict;
financial remuneration, support regarding research and teaching;
discrimination; and certain management matters.
1) Performance Management:
If an empl oyee is unable to perform well, organisations often tend to issue
memos on that employee. Warning letters too are issued. The employee is
at times humiliated in front of others which lower’s morale of employees.
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63 2) Promotion:
Employees are often subject to dilemmas relating to their promotion. If by
chance any employee is unable to meet company targets, he is subject to
discrimination at work place. These factors do affect promotion of
employees.
3) Role overload and role conflict:
Many organisations at times overload their employees with unnecessary
work. Employees are found to be doing work that doesn’t belong to their
profile. Role conflicts too poses dilemma situation in employees’ life.
They a re found to be stressed, hyper etc . in their behaviour.
4) Financial Remuneration:
Each and every employee expects a decent remuneration from his/her
organisation. Employees are found to be affected when they are paid less
for their services rendered. They feel as if they are underrated. This feeling
of frustration and depression is often seen in their work and behaviour
towards other team mates.
5) Support regarding Research and Teaching:
Nowadays many organisations are undertaking campaigns and sessions to
teach their employees work ethics. Researching various topics online and
its benefits are also covered in such sessions. Employees are also sent on
locations outside their work place to make them feel comfortable and
relaxed in their corporate trainings . Good performers are given a chance to
go on vacations with their families. But some organisations do not
undertake such events which increases boredom in employees and hatred
towards work.
6) Discrimination:
Situations could be created by other employees t o put down the morale of
high performers making them feel discriminated. When employees
experience discrimination they start searching for opportunities to change
their existing organisation. They are often found to be less interested in
organisation’s eve nts and programs as they feel that they would be
discriminated there too.
7) Certain Management matters:
Many a times , management poses a lot of stress on employees. Employees
are found to be confused in decision making as the right of decision -
making lies wi th the management. Employees enjoy independency in
work and decision -making which is not seen when all decisions are taken
by management. Organisations need to keep their employees’ problems
and difficulties in front of the management so that management kn ows the
areas of disturbance that could lead to serious problems on part of
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64 Hence, almost all employees are subject to dilemmas during their early
career years. The only thing that would keep them moving is persistency
in work and performance.
3.7 LANDING STRETCH ASSIGNMENTS
A stretch assignment is a project or task that is currently beyond your level
of knowledge or skill. Such assignments serve to “stretch” you
developmentally by placing you in a challenging position in order to learn
and grow.
(I) Advantages of Stretch Assignments:
 It presents employees with an unfamiliar challenge.
 It challenges an employee to create change.
 It gives an employee a high level of responsibility
 It challenges an employee to work cross -functionally.
(II) Examples of Stretch Assignments:
Following are examples of stretch assignments:
 Delivering a presentation to a VIP Client:
An employee involving himself in stretch assignment would definitely
deliver a presentation to his organisation’s VIP Client. A VIP Client
would not be available all the time. Hence, the employee would fix up a
time suitable to the client and present his presentation. If the Client is
satisfied with the employees’ performance, he may end up closing the deal
with the said company and may also approach them for newer projects.
 Structuring and communicating a rollout for a key change:
Change in an organisation is very important. Structuring and
communicating a rollout for a key change is possible only when
employees showcase higher level of inter est in organisation’s events and
achievements . Employees need to come up with enthusiastic ideas to
implement newer policies beneficial for the organisation.
 Leading the implementation of new tools to replace manual
processes:
Manual processes should be re placed with the help of new tools. For this
employees’ need to do research online and find out new techniques that
could easily replace manual methods and technologies. For example:
Earlier organisations used to appoint a member to write down minutes of
meetings and make notes, which can now be done online with the Notes
feature.
 Innovative Programs:
Employees need to suggest innovative programs to their superiors.
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65 employees. They start inv olving themselves in organisation's events and
come up with newer solutions to company problems.
Hence, stretch assignments promote growth and skill development.
3.8 BUILDING A NETWORK OF RELATIONSHIPS
Networking is very essential in a business. Effective networking along
with a good set of relationships helps an organisation to flourish on a large
scale.
(I) Benefits of building a network of relationships:
1) Corporate Image:
Organisations whose employees are able to do effective networking and
built-up long -term relationships benefit a lot. Networking could be done
through LinkedIn, Instagram, Corporate pages etc. Through networking
many a times , employees are able to sell their company’s products online
without any difficulty.
2) New Business ideas:
Employees with the help of networking come up with new business ideas.
They are more confident their business proposals. Pitching newer
customers is possible easily when employees have n ew business ideas.
Investments of organisation too increases when employees present newer
products to their loyal customers.
3) Loyalty towards Company:
Companies that come up with new products, offers and special discounts
etc. develop certain amount of loyalty in the eyes of customers. Customers
do not want to purchase any product other th an their regular company. For
example: Zepto offers 10 Minute Grocery delivery along with No
minimum value, this feature of Zepto is attracting newer customers and
old customers are not wanting to order from any other app other than
Zepto.
4) New product line s:
Many companies nowadays are changing their existing product lines and
coming up with new products and offers. For example: Reliance Jio was
originally in the Telecom industry but now it has entered the Retail,
Electronics, Fashion and Jewellery industry with launch of Jio Mart
(Retail), Reliance digital (Electronics), Reliance Trends (Fashion) and
Reliance Jewels (Jewellery).
5) Increased investments:
A network of relationships is always helpful in increasing investment of a
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66 events etc. Hence, employees should constantly keep making networks
and keep attracting new customers to their organisation.
6) Partnerships:
Network of relationships enable effective partnerships. People interact
with each other, meet over coffee for discussing business deals, conduct
one to one corporate event etc. Examples of Partnership include:
Spotifyand Uber, Red Bull and GoPro, Levi’s and Pint erest, Maruti
Suzuki, Hindustan Petroleum. Due to effective partnerships companies are
able to increase their sales and achieve their goals.
3.9 CHALLENGES FACED BY THE MINORITY
Minority face quite many challenges in their daily life. Some of the
challenges faced include:
1) Discrimination:
Minorities face a lot of discrimination in the society. They are deprived of
their basic rights, exploited on a great extent. Their views and suggestions
are often neglected. They are not treated like other individ uals. They are at
times made to feel low on their personality. They are not respected by high
class section of society.
2) Isolation:
Different classes of society are often found isolating minorities. They
believe that interacting with them is not a good soci al sign. Hence, many
communities believe it’s better to keep oneself away from minorities.
They avoid touching their hand, eating with them, sharing thoughts with
them etc. Isolation on a large extent sometimes creates inferiority complex
among minorities.
3) Unequal access to healthcare:
Healthcare is a necessity which should be received by all individuals
irrespective of their Cast, Creed, Race or Ethnicity. Healthcare measures if
not received on right time can lead to serious problems. Hence, minorities
too should have an equal access to healthcare. If minorities are deprived
from healthcare facilities their households would be affected and their
children would face serious health hazards.
4) Employment opportunities:
Minorities also experience bias behaviour in employment opportunities. In
spite of real talent, they are asked to work at lower positions. They are not
promoted to higher posts like others. They are ill -treated and insulted by
bosses. At times they are forced to resign too.

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67 5) Problem of Housing faci lities:
Proper sanitation and housing facility is the basic right of all individuals.
If minorities are deprived from this right too, they will experience
problems such as Infections, Chronic cough and cold, Fever, Dengue and
serious health problems such a s Asthma, Coronavirus, Omicron etc. The
local municipal authorities need to take into consideration these problems
and conduct monthly drives to verify that available health services are
reaching the poor and needy minorities effectively.
6) Experiencing nega tive mental and physical health outcomes:
Every individual deserves a positive mental and physical environment.
Environment plays a very vital role on an individual’s thought process. A
healthy environment enables oneself to come up with new ideas, motivat e
others etc. But minorities are most of the times fighting discrimination
hence they are experiencing negative mental and physical health
outcomes. These health ailments at times lower productivity at work.
3.10 DEVELOPING ETHICAL JUDGEMENT
Ethics is nece ssary in every organisation. Following ethical practises is
essential for any organisation to grow righteously. They include:
1) Following Rules and Regulations:
Rules and regulations need to be taken into consideration while
conducting any business. Proper l aws need to be followed. For instance,
the company has to be registered under Government laws, acquire proper
GST number, and tally their yearly Balance Sheet etc. Following ethical
practises helps companies to serve the society better.
2) Corporate Social Re sponsibility:
Corporates that make good number of profits should undertake Corporate
Social Responsibility. They must keep some % of their profits aside for
CSR activities. Companies that undertake CSR, gain competitive
advantage. They have a promising mar ket value.For example: Tata
Company invests a lot of efforts, time and finance in carrying out CSR
activities.
3) Avoiding Window dressing:
Companies involving themselves in ethical behaviour are always
following true and fair view. They avoid following window dressing. They
keep their balance sheets and other accounts open in front of their
shareholders. They arrange time to time annual meetings.
4) Clear criminal records:
Companies that want to grow invariably have clear criminal records. They
are on a sa fer side legally as compared to other companies. They conduct
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68 of the companies that work on a right path include: Tata Motors, TCS Ion,
Aditya Birla Group etc.
5) Remuneration:
Remuneratio n is something that all employees require ending of the day.
An ethical company is one that does not deduct its employee’s salary
unnecessarily, pays timely over time, allows sabbaticals, encourages
employees for Mediclaim, provides educational assistance to employee’s
children etc. Such a company enjoys complete commitment from its
employees. Employees don’t want leave such companies easily.
6) Campaigns and drives:
Companies that follow ethical paths are very socially active in their
conduct. They undertake constant drives and campaigns for helping the
poor and needy, providing job opportunities to talented poor students,
employment drives for women etc. Some of the drives undertaken include:
HUL CSR Activities:
 Asha daan (2020 -21)
 Project Sanjeevani (2020 -21)
 Promoting Nutrition and Hygiene (2020 -21)
 Project Shakti
NavBharat times too conducted ‘Gift a Classroom’ campaign of donating
old and new mobile phones, Ipad’s, laptops to poor and needy students
which got lot of public response.
3.11 ASSESSING YOUR CAREER
Career assessment is very necessary in today’s world. Some of the points
that help in effective career assessment include:
1) Research:
Researching the right career option is very essential in career assessment.
Students need to conduct effective online research of their selected career
so that they are avoiding repenting later on. Effective research along with
right judgement can make a student win in all situations. Students can take
help of their seniors, professors etc . in their career researc h.
2) Experience:
Students should see whether their selected career option requires prior
experience. If yes then they should search for sources to gain the required
experience. For example: CA Professionals require experience of article
ship in their Batche lor’s. Such experience researching will put students in
a better position.
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69 3) Joining professional Institutes:
There are many institutes that guide students in career selection and career
assessment. Students should get in touch with such institutes. They wou ld
be able to guide and place students in good positions. Students would love
interacting with experienced professors from different institutes.
4) Knowledge about career areas:
Students need to acquire appropriate knowledge about their selected career
areas. There could be many differences in career options today and 20 -25
years back. Hence, students should discuss their career options with their
age group students to be in touch with latest career options.
5) Interest evaluation:
Students should see whether the ir selected career option is of their interest.
For this purpose, they need to their interest evaluation by conducting
aptitude tests, management games etc. Results derived from these tests
will help students in deciding their career options.
6) Reading succe ss stories:
Students may also benefit a lot from reading success stories. They will
start comparing their struggles with struggles of other achievers and get
motivation from them. They will start enjoying their career option and try
to work too hard to ach ieve their goals. They will start aiming high as
compared to before.
3.12 SUMMARY
1) In this Unit you studied Managing your career and understanding
organisational dynamics in detail.
2) Leadership Functions are divided into 8 types
3) The term laissez faire comes from the French language which means
“Let them do - the way they want to do.”
In this style, the leader shares the problem with the group. He acts
more as a chairperson in generating and evaluating alternatives in
search of group consensus.
4) Challenges faced b y the minority include Discrimination, Isolation
etc.
3.13 EXERCISE
(1) State True or False:
1) Leadership is the activity of influencing people to work forcibly in the
organisation.
2) In participative leadership style, only the leader is responsible for
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70 3) Discrimination should not be applicable to the minority.
4) In Laissez - faire leadership style, only the subordinates are responsible
for decision making because the subordinates make the decisions.
5) The leader who follows laissez -faire style is respected as a fatherly
figure in an organisation
6) Under paternalistic leadership style, the leader gives complete freedom
in decision making to the subordinates.
7) Career assessment is very necessary in today’s world.
8) Investme nts of a company increase due to effective network of
relationships.
Answer: True - 3,7,8 False - 1,2,4,5,6
2) Match the following:
Group A Group B
1) Autocratic Leadership
2) Bureaucratic Leadership
3) Consultative Leadership
4) Sociocratic Leadership
5) La issez -Faire Leadership [a] Employee Oriented
[b] Rules and Regulations
[c] Complete Freedom to Employees
[d] Suggestions from Employees
[e] Orders to Subordinates
Answer: 1] -[e], 2] -[b], 3] -[d], 4] -[a], 5] -[c]
3) Answerin Brief:
1) What is leadership? Explain leadership styles.
2) Write a note on landing stretch assignments.
3) Explain Skills required for Leadership in detail.
4) Describe Challenges faced by minority
5) Why is assessment of career necessary, explain in detail
6) Write a note on building network of relationships
7) Explain developing ethical judgement with the help of examples.


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71 4
MANAGING IN ADVERSITIES
MANAGEMENT OF CRISIS
Unit Structure :
4.0 Objectives
4.1 Introduction
4.2 Reasons for Crisis
4.3 Types o f Crisis
4.4 Four Stages in Crisis Management
4.5 Crisis Management Model
4.6 What is Crisis Management Plan
4.7 What is Crisis Management Team?
4.8 Ways to Overcome Organisational Crisis
4.9 Examples of Case Studies
4.10 Questions
4.0 OBJECTIVES
After studying this unit students will be able to –
 Understand the concepts of Crisis,causes& measures to resolve them
 Identify effective methods & learn management ways to solve crisis.
4.1 INTRODUCTION
A crisis is any event or period that will lead, or may lead, to an unstable
and dangerous situation affecting an individual, group, or all of society.
In other words, crisis is defined as any emergency situation which disturbs
the employees as well as leads to instability in the organization. Crisis
affects an individual, group, organization or society on the whole.
Characteristics of Crisis
 Crisis is a sequence of sudden disturbing events harming the
organization.
 Crisis generally arises on a short notice.
 Crisis triggers a feeling of fear and threat amongst the individuals.
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72 4.2 REASONS FORCRISIS
Crisis can arise in an organization due to any of the following reasons:
 Technological failure and Breakdown of machines lead to crisis.
 Problems in internet, corruption in the software, errors in passwords all
result in crisis.
 Crisis arises when employees do not agree to each other and fight
amongst themselves. Crisis arises as a result of boycott, strikes for
indefinite periods, disputes and so on.
 Violence, thefts and terrorism at the workplace result in organization
crisis.
 Neglecting minor issues in the beginning can lead to major crisis and a
situation of uncertainty at the work place. The management must have
complet e control on its employees and should not adopt a casual
attitude at work.
 Illegal behaviors such as accepting bribes, frauds, data or information
tampering all lead to organization crisis.
 Crisis arises when organization fails to pay its creditors and dec lares
itself a bankrupt organization.
4.3 TYPES OF CRI SIS

Natural Crisis
 Disturbances in the environment and nature lead to natural crisis.
 Such events are generally beyond the control of human beings.
 Tornadoes, Earthquakes, Hurricanes, Landslides, Tsunamis, Flood,
Drought all result in natural disaster.
2. Technological Crisis
 Technological crisis arises as a result of failure in technology. Problems
in the overall systems lead to technological crisis.
 Breakdown of machine, corrupted software and so on give rise to
technological crisis.
3. Confrontation Crisis
 Confrontation crises arise when employees fight amongst themselves.
Individuals do not agree to each other and eventually depend on non-
productive acts like boycotts, strikes for indefinite periods a nd so on.
 In such a type of crisis, employees disobey superiors; give them
ultimatums and force them to accept their demands.
 Internal disputes, ineffective communication and lack of coordination
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73 4. Crisis of Malevolence
 Organizations face crisis of malevolence when some notorious
employees take the help of criminal activities and extreme steps to
fulfil their demands.
 Acts like kidnapping company’s officials, false rumours all lead to
crisis of malevolence.
5. Crisis of Organizational Misdeeds
 Crises of organizational misdeeds arise when management takes
certain decisions knowing the harmful consequences of the same
towards the stakeholders and external parties.
 In such cases, superiors ignore the after effects of strateg ies and
implement the same for quick results.

4.4 FOUR STAGES IN CRISIS MANAGEMENT
1. Mitigation /Analysis
2. Preparedness
3. Response
4. Recovery
It may be wrong to ignore mitigation and preparedness when you’re in the
middle of a crisis and move right to response and recovery modes.
However, it’s essential to give the first two stages careful thought and
analysis.
A crisis like COVID -19 is a dynamic situation w ith long -term
implications. It’s good governance practice for the board to carve out time
or dedicate a committee to consider the next phase of crises and determine
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74 Phase 1: Mitigation
There are six items to co nsider during the mitigation phase:
 Create a risk management team.
 Designate a coordinator who is ready to act.
 Create, or evolve, a business continuity plan (BCP) to determine how
you will serve your institution’s community during a time of crisis.
 Create a communications strategy for communicating with
stakeholders and communities both on and off campus.
 Determine your best sources of information in times of crisis and
establish communications channels.
 Understand budget ramifications and which areas of r evenue and
expense are most likely to be impacted so you can access financial
resources when needed.
Phase 2: Preparedness
There are three items to consider during the preparedness phase:
 Periodically review insurance policies to make sure what is covered and
make adjustments as needed.
 Put a plan in place to hold remote/virtual board meetings.
 Create a crisis communications plan.
The board can help during this phase by:
 Defining parameters for accessing financial reserves
 Reviewing your bylaws to determine whether virtual board meetings
and voting are an option
 Reviewing the crisis communications plan
Phase 3: Response
There are nine items to consider during the response phase:
 Triage the most pressing issues.
 Communicate regularly with your key stakeholders.
 Analyze budget implications and create contingency plans.
 Implement the business continuity plan.
 Institute remote work.
 Reconfigure staffing needs.
 Manage the stress response from all stakeholders: staff, students,
trustees, donors, funders, etc.
 Access response/recovery funds and insurance benefits and stabilize
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75  Observe where the disaster reveals weaknesses in your organization
and begin prioritizing how to fix them in the future.
The board can help during this phase by:
 Supportin g college and university leaders and back up to them on all
decision -making
 Supporting the implementation of the business continuity plan
 Empowering the administration to be creative
 Triaging and managing the amount of “help” being offered by
community members
 Beginning documenting the organizational stressors
 Meeting frequently to address real -time issues and keep the full board
informed
 Supporting staff’s short -term decision -making while also advancing
long-term needs
 Arranging for mental health suppor t for staff, as needed
Phase 4: Recovery
There are 10 items to consider during the recovery phase:
 Rebuild learning models to evaluate what is possible in this new
environment.
 Talk to your peers – learn from others.
 Adopt a strategic plan as needed.
 Acces s recovery funding.
 Address any organizational weaknesses revealed during the crisis.
 Create transition plans for the new normal for all stakeholders.
 Acknowledge and manage the ongoing stress and trauma for all
stakeholders.
 Emerge from triage decision -making and make better long -term
decisions.
 Identify new areas for investment and divestment.
 Renegotiate stakeholder agreements, contracts, etc.
The board can help during this phase by:
 Being unified in supporting the work and staff
 Celebrating t he good work that was done during the crisis response
 Identifying and capturing “lessons learned” during the crisis response
 Creating a plan for addressing the organizational stressors
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76  Challenging and supportin g the staff to renew long -term decision -
making
 Addressing board structure, relationships, and policies that hindered
the board during the crisis
 Challenging board and staff to address what’s been left unsaid and
unaddressed
4.5 CRISIS MANAGEMENT MODEL
1) Fink’s Model of a Crisis and Other Lifecycle Crisis Management
Models
Steven Fink laid out a four -stage crisis model consisting of the
prodromal, acute, chronic, and resolution stages.
The prodromal stage covers the period between first signs and crisis
eruption. During this period, Fink states that crisis managers should be
proactively monitoring, seeking to identify signs of a brewing crisis, and
trying to prevent it or limit its scope.
The acute stage begins when a trigger unleashes the crisis event. This
phase entails activation of crisis managers and their plans.
The chronic stage encompasses the lasting effects of the crisis, such as
after a flood or a hurricane when teams repair damage to buildings and
roads. Finally, the resolution stage represen ts the end of the crisis and a
time for internalizing what went wrong through a root-cause analysis and
implementing changes to ensure there is no r epetition.

2) Mitroff’s Five -Stage Crisis Management Model and Portfolio Model
In 1994, Mitroff described five crisis stages, which also follow a similar
lifecycle progression:

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77  Containment
 Recovery
 Learning
Mitroff was one of the first researchers to recognize that, due to resource
limits, preparing for every conceivable kind of crisis is impossible. He
noted that crises tend to fall into certain categories, which Mitroff
called clusters , such as breaks or defects in equipment, external actions,
and threats (i.e., product recalls). Similarly, prevention actions cluster
together, too.
Based on a survey of the Fortune 1,000 companies, in 1988 Mitroff, along
with Terry C. Pauchant and Paul Shrivastava, recommended that
companies rationalize their crisis management programs by forming dual
crisis “portfolios.” The first portfolio consists of crises, one drawn from
each crisis cluster, and the second portfolio compr ises matching
preventative actions from each cluster. Mitroff and his colleagues posited
that setting up these two portfolios provides at least minimum coverage
across crisis categories.

3) Burnett Model of Crisis Management
In 1998, John Burnett proposed a crisis management model with three
broad stages — identification, confrontation, and reconfiguration — which
each consist of two steps. This model also follows a progression like the
other lifecycle models. The steps in Burnett’s model are goal formation ,
environmental analysis, strategy formulation, strategy evaluation, strategy
implementation, and strategic control.

Preparing for a crisis involves goal -setting and analyzing the threat
environment. Managers then formulate a strategy in the face of a cris is,
and the organization responds to the crisis via strategy implementation and
strategic control (the latter stage includes the oversight of crisis
management actions as well as post -crisis review).

Burnett held that the process is more difficult to master as the steps
progress. In an outer ring, he arrayed factors that stand in the way of crisis
management, including time pressure, control issues, threat level concerns,
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78

4) Relational Model of Crisis Management
In 2007, Tony Jacques took issue with the idea that crisis management is a
linear process of sequential phases in which you manage issues one at a
time. Instead, he argued that important processes and activities often
overlap or occur simultaneously, such as crisis prevention and preparation,
and don’t always proceed in one direction.
As opposed to the lifecycle models, Jacques proposed that crisis
management and the field of issue management are related, integr ated
disciplines. Issues management involves creating systems to deal with
problems — while issues are more routine than crises, they overlap
because issues can become the source of crises if not properly dealt with.
Jacques’ relational model has four pri mary elements — crisis
preparedness, crisis prevention, crisis incident management, and post -
crisis management — each with clusters of activities and processes. He
concluded that understanding the relationship among these elements, and
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79

5) Incident Command System Model
The incident command system model is unique in that it originated in the
real world and was then formalized as a model (other models began as
conceptual frameworks). Incident command started in the 1970s as a
model for California agencies to manage wildfires.
The incident command system divides work into five broad areas,
including operations and logistics, as well as a hierarchy of roles and
responsibilities for key players that provides a clear chain of command
and communication. Each fire department or company site replicates the
structure, so teams automatically know their counterparts and share
common terminology and integrated communication s. Therefore,
coordinating and working together becomes relatively straightforward, and
teams spend less time organizing the response and more time actually
responding.
The incident command system model is useful because it offers a
framework for the unif ied command of a crisis, scales well, makes
efficient use of resources, and facilitates communication among people
from different departments or organizations.
When the 9/11 attacks on the United States occurred, organization
problems hampered an early re sponse. There was initially no coordination
agency, and first responders from different agencies struggled to
communicate due to incompatible technologies. Additional offers of help
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80 Implementing incident command solved many organizational challenges.
In 2003, this experience prompted the U.S. government to make incident
command mandatory for all publicly funded U.S. agencies. Incident
command spread both nationally and internationally, and has since been
adopted by many private -sector organizations, too.
U.S. private -sector businesses that deal with hazardous materials and
nuclear power are also required to use the incident command model. Many
organizations that interact with the public sector (for inciden ts such as
mass casualties and fires) have also embraced the model because it
facilitates their cooperation with emergency services. These organizations
include schools, universities, transportation systems, chemical plants, and
critical infrastructure lik e power, water, and communications.
4.6 WHAT IS A CRISIS MANAGEMENT PLAN

Individuals need to adopt a step by step approach during critical situations.
Planning is essential. Getting hyper does not solve any problem, instead
makes the situation worse. It is a crime to take impulsive and hasty
decisions during crisis. It is essential to think rationally and devise
strategies which would work best during emergency situations.
Complaining and cribbing lead you nowhere.
Crisis Management Plan refers to a detaile d plan which describes the
various actions which need to be taken during critical situations or
crisis .

Any plan prepared by superiors, members of crisis management team and
related employees to help organization overcome crisis in the best possible
way is called crisis management plan.

Why Crisis Management Plan ?
 Crisis management plan helps the employees to adopt a focused
approach during emergency situations .
 Crisis management Plan elaborates the actions to be taken by the
management as well as the employees to save organization’s
reputation and standing in the industry. It gives a detailed overview of
the roles and responsibilities of employees during crisis .
 Individuals representing the crisis management team formulate crisis
management plan to red uce the after effects of crisis at the workplace .
 Crisis Management Plan helps the managers and superiors to take
quick and relevant actions as per the situation .
 Crisis Management plan protects an organization from inevitable
threats and also makes its fu ture secure.
 Such plans reduce instability and uncertainty amongst the
employees and help them concentrate on their work.
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81 Characteristics of Crisis Management Plan
 Crisis Management Plan should be made in the presence of all
executives. Every member of cr isis management team should have a
say in the plan. It is important for each one to give his / her valuable
inputs and suggestions.
 Crisis Management Plan should take into account all identified
problem areas and suggest a possible solution for all of them to help
the organization come out of crisis as soon as possible.
 Make sure the plans are realistic and solve the purpose of saving
organization’s reputation and name.


How t o make a crisis management plan ?

 Identify the problem areas and various factors which led to crisis at
the workplace.
 Discuss issues and areas of concern amongst yourselves on an open
forum for everyone to share their opinion.
 Make sure you have accurate information. Don’t depend on guess
works and assumptions. Double check your infor mation before
submitting the final plan.
 Crisis Management Plan should not only focus on ways to overcome
crisis but also on making the processes foolproof to avoid emergency
situations in future.
4.7 WHAT IS A CRISIS MANAGEMENT TEAM ?

A Crisis Management Team is formed to protect an organization against
the adverse effects of crisis. Crisis Management team prepares an
organization for inevitable threats.

Organizations form crisis management team to decide on future
course of action and devise strategies to help organization come out of
difficult times as soon as possible .
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82 Crisis Management Team is formed to respond immediately to warning
signals of crisis and execute relevant plans to overcome emergency
situations.

Role of Crisis Management Team
Crisis Management team primarily focuses on:
 Detecting the early signs of crisis.
 Identifying the problem areas
 Sit with employees face to face and discuss on the identified areas of
concern
 Prepare crisis management plan which works best during emergency
situations
 Encourage the employees to face problems with courage,
determination and smile. Motivate them not to lose hope and deliver
their level best.
 Help the organization come out of tough times and also prepare it for
the future.
Crisis Management Team includes:
Head of departments
Chief executive officer and people closely associated with him
Board of directors
Media Advisors
Human Resource Representatives
The role of Crisis Management Team is to analyse the situation and
formulate crisis management pl an to save the organization’s reputation
and standing in the industry.

How does Crisis Management Team function ?
A Team Leader is appointed to take charge of the situation immediately
and encourage the employees to work as a single unit.

 The first step is to understand the main areas of concern during
emergency situations.
Crisis Management Team then works on the various problems and
shortcomings which led to crisis at the workplace. The team members
must understand where things went wrong and how current processes
can be improved and made better for smooth functioning of the
organization.
 It is important to prioritize the issues . Rank the problems as per their
effect on the employees as well as the organization. Know which
problems must be resolved immedia tely and which all can be attended a
little later.
 A single brain cannot take all decisions alone. Crisis Management
Team should sit with rest of the employees on a common platform,
discuss prevailing issues, take each other’s suggestions and reach to
plans acceptable to all.
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83  One of the major roles of the Crisis management team is to stay in
touch with external clients as well as media. The team must handle
critical situations well .

 Develop alternate plans and strategies for the tough times. Make sure
you have accurate information. Double check your information
before finalizing the plan .

 Implement the plans immediately for results. Proper feedback must be
taken from time to time.
Crisis Management team helps the organization to take the right step at
the right time and help the organization overcome critical situations.

4.8 WAYS TO OVERCOME ORGANISATIONALCRISIS
Employees must not lose hope during crisis. It is important for them to
face inevitable threats with courage, determination and smile.



 Adopt a focused approach . Take initiative and find out where things
went wrong. Identify the problem areas and devise appropriate
strategies to overcome the same.
 Gather correct and relevant information . One should not depend on
mere guess works and assumptions d uring emergency situations.
Double check your information before submitting reports.
 Employees should change their perspective . One should always look at
the brighter side of things. Remember life has its own ups and downs.
Unnecessary cribbing and complai ning does not help at the workplace.
Avoid making issues over petty things. Don’t adopt a negative
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84  Effective communication is essential to overcome crisis in the
organization . Information must flow across all departments in its
desired form. Employees must be aware of what is happening around
them. Individuals should have an easy access to their superior’s cabin
to discuss critical issues and seek their suggestions. Superiors must
address emplo yees on an open forum during critical situations.
 Roles and responsibilities must be delegated as per the employee’s
specialization . Make sure the right person is doing the right job.
Employees must be motivated to deliver their level best and focus on
the organization’s goals to overcome tough times in the best possible
way.
 It is essential to take quick decisions during critical situations. Learn
how to take risks. The moment an employee detects the early signs of
crisis, it is important for him to act im mediately. Escalate issues to
your superiors and do inform your co -workers as well. Don’t wait for
others to take action.
 Be calm and patient. Don’t panic and spread baseless rumours around.
Taking unnecessary stress makes situation all the more worse.
Rem ember a calm individual can handle things better. Relax and then
decide on the future course of action to overcome crisis. Don’t lash out
at others under pressure.
 Discussions are essential during crisis . Sit with fellow workers and
discuss issues amongst yourselves to reach to mutually acceptable
solutions which would work best at the times of crisis.
 Be loyal to your organization even at the times of crisis. Stick to it
during bad times. Don’t just treat your organization as a mere source
of earning money . It is important to respect your workplace.
 Review your performance regularly. Be your own critic. Strive hard to
achieve your targets within the desired time frame. Don’t work only
when your boss is around.
 Avoid unnecessary conflicts and misunderstandin gs at the workplace .
Treat your fellow workers as members of your extended family. Help
each other when needed. Employees should not ask for unjustified
things. Think from the management’s perspective as well. Avoid
criticizing your colleagues.
 Don’t hide at the times of crisis. Come out; interact with external
clients as well as media. Do not hesitate to ask for help. Ignoring
outsiders worsens the situations.
4.9 EXAMPLES OF CASE STUDIES
1) KFC and the shortage of chicken (Recent Case Study on Crisis
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85

What Happened ?
In February 2018, KFC had to close more than half of its 900 stores in the
United Kingdom because of a shortage of…chicken.The social and
mainstream media enjoyed the irony of a chicken shop without any
chicken and went to town on the story.The cause was a delivery problem
after the chain switched its contract to DHL which said that due to
‘administrative problems’ a number of deliveries were cancelled or
delayed.
Loyal customers vented on Twitter and took their families to McDo nalds.
Some even complained to their local politicians.Then KFC, even while
struggling to get the restaurants re -opened, managed to switch the
narrative entirely.It ran an apology advertisement that was extremely
funny (especially to the brand’s core young er consumers) while taking
ownership of the problem.
The company was widely applauded by customers and the media for its
deft handling of the situation and became the poster child for how well to
handle a crisis.
What We Learned :
Among the key elements in a best -in-class crisis response plan are:
 An understanding of the brand’s key stakeholder, particularly the core
consumers. Who are they? Whe re are they? What are their key
considerations? What’s likely to be on their minds when the brand is
facing challenges?
 An understanding of the brand’s promise and ‘voice’. How is it
positioned? What’s likely to support or break the trust in the brand in
how it responds to a crisis?
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86 It knew its audience (young, hip and irreverent) and it followed through in
exactly the kind of tone and language that was c onsistent with how the
brand was positioned in other, more positive marketing.
The result was a swift abatement of the criticism for the closed stores –
and the sound of widespread applause for a model crisis response
2) Tylenol Product Tampering :(CPG Product Crisis Management
Example )
In 1982, seven people in the Chicago area died after taking Tylenol
capsules poisoned with cyanide. The tampering was believed to have
occurred when someone injected the chemical into capsules and returned
them to store s helves. The deaths remain unsolved, but the way Johnson &
Johnson handled the episode has become a teaching case study for
effective crisis management at Harvard Business School and elsewhere. In
2003, Fortune magazine named James Burke, the company’s CEO at the
time, as one of history’s greatest CEOs for the way he handled the scare.

Below are some highlights of Johnson & Johnson’s handling of the crisis:

 Fast and Decisive Action: According to a book on the case by Harvard
Professor Richard Tedlow, on the afternoon of the first two deaths, the
company halted all product advertising, sent 450,000 messages to
hospitals, doctors’ offices, and other stakeholders, and established toll -free
hotlines for consumers. At a cost of more than $100 million, the company
recalled all products from store shelves — one of the first nationwide
recalls — even though government officials felt that doing so was
excessive. Additionally, Johnson & Johnson issued warnings to consumers
not to take its pain reliever.
 Honesty and In tegrity : Despite evidence that the poison was
introduced via store shelves, Johnson & Johnson did not try to evade
blame. As a result, Burke was praised for his honesty. His integrity stood
out in the context of the post -Nixon era and the forthright handling of the
Three Mile Island nuclear disaster. The company became a pioneer in
developing tamper -proof packaging, and eventually moved away from
capsules to a more tamper -resistant caplet. Burke was candid in expressing
regret that the company had no t done so right away.
In less than a year, Tylenol regained its market share and sales leadership,
and it continues to rank highly for consumer trust.

3) Samsung :(Examples of Good Crisis Management of Product
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87

In 2016, Korean electronics company Samsung faced a crisis when its
Galaxy Note 7 smartphones exploded due to a battery problem. Sales
slumped as airlines banned passengers from carrying the phone on board.
Samsung responded by immediately taking accountab ility, being
transparent about not immediately knowing the cause, and vowing to
determine the problem.
The company put 700 engineers on the problem and opened the research
to third parties. When the problem was identified, the company
communicated the iss ue clearly and introduced quality assurance and
safety features.
Samsung also launched a campaign aimed at tying its brand image to a
larger purpose and improving its culture. In the next year, Samsung’s
brand value rose 9 percent, according to Interbrand, and its Galaxy S8
yielded record profits the following year.
4) Industrial Disaster Crisis Management Example: Bhopal Gas Leak
In 1984, a toxic gas leak from a Union Carbide India pesticide plant in
Bhopal, India killed up to 30,000 people from immediate and long -term
effects (according to estimates) and injured about 575,000. The accident is
one of the world’s wor st industrial disasters.
The leak was caused by the introduction of water into a chemical tank,
which resulted in a heat -generating, runaway reaction. Several inquiries
found evidence of company negligence, but an internal analysis blamed
employee sabotag e.
Researchers have written extensively about the accident, and some of the
lessons cited are universally helpful in crisis management, including the
following:
 Rehearse Emergency Procedures: The plant did not have an
emergency plan, and plant operators d id not know how to handle an
emergency. No effective public warning system or public education about
the risks were in place.
 Prioritize Crisis Readiness: The company reduced training and
staffing at the plant to save costs. Supplies of gas masks were ina dequate,
and several plant safety mechanisms were either deactivated or faulty.
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88 the unit to function safely. On the night of the accident, the supervisor
delayed investigating an i nitial small leak until after a crew break, rather
than being proactive.
 Share Information: A U.S. Union Carbide plant found earlier in the
year that a runaway reaction in the chemical tank could happen, but they
didn’t communicate it to the India plant. When the leak occurred, plant
staff did not inform senior managers or local authorities. Most of the
information on the chemical involved, including how to treat exposure,
was proprietary and was not disclosed. So, public health authorities and
hospitals i n Bhopal did not know immediately what victims had been
exposed to (and therefore couldn’t provide the best antidotes).
4.10 QUESTIONS:
i) What is Crisis? Explain the reasons for Crisis ?
ii) Enumerate in detail the various Crisis Management model?
iii) What are the stages involved in Crisis Management?
iv) Write a Note on Fink’s Crisis model?
v) Suggest some remedial ways to overcome Organisational Crisis?
vi) How will you define crisis? List out some of the different types?
vii) Explain any case study which deals with good Crisis m anage ment
methods adopted by Company ?
viii) How does Crisis management function ?
Short Notes:
i) Reference Model of Crisis
ii) Ways to Redress Crisis
iii) Stages In crisis Management
iv) Crisis Management Teams
v) What is Crisis Management Plan?
vi) Mitroff 5 stage Crisis Management Model
vii) Burnett Model of Crisis M anagement
viii) Incidental system Model
ix) Different Models in Crisis Management
x) Role of Crisis Management Teams.


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89 5
SOCIAL RESPONSIBILITY , ETHICS &
SUSTAINABLE DEVELOPMENT
Unit Structure :
5.0 Objectives
5.1 Introduction
5.2 Types of Social Responsibility
5.3 Advantages of Social Responsibility
5.4 Disadvantages of Social Responsibility
5.5 Social Responsibility and Ethics
5.6 Types of Business Ethics
5.7 Importance of Business Ethics
5.8 Sustainability
5.9 Three Pillars of sustainability
5.10 Sustainable Development Goals
5.11 Objectives of Sustainable development
5.12 Measures taken by Government to Implement S ustainable
Development.
5.13 Challenges in attaining Sustainable Development Goals in
India.
5.14 Questions
5.0 OBJECTIVES
After studying this unit students will be able to –
 To understand the role of Managers & citizens in society
 Identify significance of Ethics & be socially responsible towards
sustainability towards environment & resources
5.1 INTRODUCTION
Social responsibility is a moral obligation on a company or an individual
to take decisions or actions that is in favour and useful to society. Social
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90 Responsibility or CSR. For any company, this responsibility indicates that
they acknowledge and appreciate the goals of the society, and therefore,
would support them to achieve these goals.
Social responsibility is an ethical framework in which individuals or
corporations are accountable for fulfilling their civic duty and taking
actions that will benefit society as a whole
Social Responsibility helps the business by :
 Providing a cultural view of the company and understanding of quality
 Generating new career paths for quality professionals who are experts
in Social Responsibility related decisions.
 Providing methods to enhance the efforts of SR professional s’
 Growing the community of SR practitioners


What is an example of social responsibility?
Working for the community, such as volunteering, giving blood donations,
and working at a food bank or animal shelter . Supporting issues that affect
society, such as advocating political or social issues that can help others —
for example, advocating for child labor laws, purchasing fair trade
products, recycling.









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91 5.2 TYPES OF SOCIAL RESPONSIBILITY
Following Are the Different Types of Social Responsibilities:

1) Environmental Responsibility:
For companies committed to CSR, it’s important for businesses to engage
in environmentally friendly practices. Corporations can be significant
contributors to greenhouse gas emissions, pollution, waste, and natural
resource depletion —but by committing to environmental responsibility, a
business takes ownership over its impact on the environment.
Depending on a business’s size and industry, environmental responsibility
can take many different forms. For some companies, it mean s using
alternative energy sources and sustainable materials. For others, it means
enacting a company -wide recycling program or donating to and
volunteering for local environment -focused organizations.
2) Ethical Responsibility :
Being ethically responsible m eans ensuring a business engages in fair
business practices across the board —including treating all employees,
stakeholders, and customers ethically and with respect.
This type of CSR can also take a lot of different forms. Some common
examples of ethical responsibility include setting a higher minimum wage,
guaranteeing all materials are ethically sourced, and ensuring that all
employees receive competitive pay and comprehensive benefits as well as
treated with respect.
3) Philanthropic Responsibility :
In today’s world, it’s almost expected for businesses to give back to the
communities they exist in and donate to causes that align with their
company mission. When businesses do this, they’re following through with
their philanthropic responsibility.
This phi lanthropic responsibility can be as small scale as sponsoring a
local non -profit’s annual fundraiser or as large -scale as donating a
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92 4) Economic Responsibility:
When a business is acting with economic responsibility in mind, it is
making financial decisions that prioritize doing good, not just making
more money. This means that this type of CSR is intertwined with the other
types above.
For example, this could mean that a business signs a contr act with a
supplier that uses sustainable materials —even if it costs more. Another
example of economic responsibility is when a company commits to a
transparent salary system that fairly compensates all employees and makes
up for past gender and race pay g aps.
5.3 ADVANTAGES OF SOCIAL RESPONSIBILITY
There are a number of advantages when a company chooses to be socially
responsible, such as:
 Gives a company a competitive edge
 Attracts strong candidates and increases retention
 Makes your business attractive to investors
 Improves business culture
 Increases customer loyalty and advocacy
 Improves company reputation
 Improves profitability and value
1) Gives a company a competitive edge:
Most customers today agree that social responsibility is a top criterion
when choosing a company to shop from or do business with. Being a
socially responsible company is also a message you can use in your brand
position and marketing .
2) Attracts strong candidates and increases retention:
The success of your company is strongly impact ed by the people who
work for you. If you consistently provide a socially responsible culture for
your employees, and you have a reputation for doing so, you can attract
and retain top talent to your organization.
3) Makes your business attractive to investor s:
Investors generally believe that a commitment to social change is a great
way to position a company for long -term success. While there must be a
balancing act between focusing on the profitability of an organization and
social initiatives, doing so succ essfully can create endless opportunities for
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93 4) Improves business culture:
Your employees are likely to be more motivated and have a greater
commitment to the organization if they see the social initiatives are in
place. Providing time for employe es to support their own social initiatives
can also build pride, loyalty and motivation among members of your team.
This, in turn, makes everyone more engaged and productive .
5) Increases customer loyalty and advocacy:
Consumers are drawn to companies that ha ve a reputation for being a good
corporate citizen. Moreover, customer advocacy is key to attracting new
customers. As your loyal customers talk to people they know about your
product and share positive reviews, they will drive more business your
way.
6) Impr oves company reputation:
If your organization is continually participating in social initiatives, it
gives an impression to customers, investors and the world as a whole that
your organization is financially viable. This, in turn, can attract new
investors and investors alike.
7) Improves profitability and value:
In many cases, companies find that when they introduce more energy -
efficient methods and begin recycling they actually cut operational costs
and benefit the environment. Social responsibility also inc reases
transparency with investment analysts, shareholders and community
members, which in turn improves the company's reputation and increases
the overall value.
5.4 DISADVANTAGES OF SOCIAL RESPONSIBILITY
While corporate social responsibility is generally advantageous for
organizations, there are a few drawbacks. Here are the primary
disadvantages to consider:
1) Costs money to implement:
While large organizations can afford to allocate a budget to corporate
social responsibility reporting, this can be financ ially taxing on smaller
organizations. While smaller companies can use social media to share any
social responsibility policies or initiatives with customers and community
members, monitoring these channels takes time and resources. It may
require the comp any to hire extra employees to manage the process
effectively, which can be challenging for small businesses.
2) Impacts profitability:
A company has a fiduciary duty to its shareholders and costly social
responsibility initiatives can impact this directly. T his conflict can be
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94 socially responsible decisions or initiatives and focusing on the company's
profitability.
3) Green washing:
In some cases, social responsibility initiatives have been used as a ploy to
improve a company's image even though no real change has been made.
For this reason, it's important to consider what social responsibility
initiatives you're going to take and evaluate the impact that they will have
on the organization.
5.5 SOCIAL RESPONSIBILITY AND ETHICS
Business ethics are the act of determining and making the right choices.
Companies develop a set of rules and principles that guide their decisions
and actions, creating positive influences on employees and consumers.
Thoug h every business forms a unique set of principles, they usually
follow the same ethical standards.

Being socially responsible and following basic business ethics have the
following benefits:
 Gaining more customers:
Consumers are more likely to continual ly support businesses that care
about the impact they make. Being positives influences on communities
and maintaining ethical standards allows businesses to gain new customers
and maintain existing ones. Existing customers are also more likely to
promote t he company by word of mouth.
 Recruiting from a wider candidate group:
Professionals are increasingly searching for careers with companies that
are ethically and socially responsible. Promoting a strong code of ethics
that includes social responsibility can help companies attract and retain
more candidates.
 Getting an advantage over similar businesses:
Companies that promote social responsibility often acquire more
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95 advantages over their competition by considering their impact on the
community.
 Creating a positive work culture:
When employees agree with a company's code of ethics and social
responsibility, they are more likely to feel motivated and support the
organization. Employers who encourage employees to take action in their
community also gain more approval and commitment.
How businesses incorporate social responsibilities and ethics?
Organizations have countless options to implement strong business ethics
and exemplify social res ponsibilities. Below are some of the ways
businesses can incorporate these important elements:
 Develop a mission and objective:
One of the first steps that businesses should complete is to craft a mission
and objective that support ethics and social responsibility. A mission and
objective serve as the foundation for all goals and actions that a business
takes, so it's key to carefully consider these ideas. When writing the
mission and objective, companies need to think about how they can
support their communities, promote a positive business culture and better
society as a whole.
 Create and maintain core values :
Core values reinforce the company mission and show how the company
intends to uphold its social standards. Both the business and employee
need to follow these core values, so it's important to define a clear set that
lasts long term. Core values that support social responsibility and ethics
include :
 Integrity
 Kindness
 Openness
 Humility
 Community
 Knowledge
 Growth
 Transparency
Employers can select four or five core values to focus on and grow their
business around.
 Focus on impact in the local community :
Society starts with the local community. Businesses that focus on the area
they operate in can make a large impact on their residents. By promotin g
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96 influence on a local group. This group is then inspired to advance that
positive influence by helping others, which can increase awareness of the
company's brand. Companies that operate in multiple locations should
strive to make positive changes in each community.
 Support environmentally and socially conscious initiatives:
One of the main aspects of being socially responsible is supporting
progressive societal efforts. Doing so shows th at organizations are actively
taking part in making their communities and society better places. Taking
part in these efforts can also attract more customers and loyal employees.
Companies should select initiatives that align with their core values and
missions, which can help build their brand and culture. For example, a
grocery store could support a non -profit that provides food to
underprivileged families. Making green efforts, such as implementing
recycling programs and installing low -energy lights and appliances, are
common initiatives that businesses can take.
 Encourage communication:
Employees should feel comfortable expressing their ideas and opinions in
order to foster strong business ethics. Managers should have open -door
policies in which employee s can approach them with feedback about the
culture. Encouraging feedback helps employees feel comfortable being
open, which improves morale and supports both employee and
organizational growth. Employees who feel heard and respected are also
more likely t o stay loyal to the organization.
 Consider ethics during the hiring process:
Ethical companies need to hire ethical employees to build a positive
culture. Employees also represent the companies they work for, so it's
important to hire professionals who can positively influence society on
their companies' behalf. During the hiring process, employers should seek
employees who have similar core values and believe in the business's
mission. Asking questions directly related to values and ideologies allows
emplo yers to find like -minded candidates.
 Lead by example:
Employers should lead by example, abiding by the code of ethics they
implement. When employees see leaders following their own business
ethics, they are more likely to follow them, too. It also encourag es
accountability for both the employees and the company leaders. For
example, if one of the employer's core values is open communication, they
should regularly update employees on company events and changes.
 Express compassion:
Companies that support best business ethics should be generous and kind
to consumers and employees. They should genuinely care about the
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97 One way a company can demonstrate compassion is by making socially
conscio us decisions that positively affect the community or employees
regardless of cost. Making compassionate decisions helps ethical
companies gain the trust and support of team members and consumers
5.6 TYPES OF BUSINESS ETHICS

There are various types of bus iness ethics. Both the nature of the
company's business and where the company is located can affect which
ethics it emphasizes. The following are some of the more common
business ethics.
1. Personal responsibility:
Each person who works for a business, whether on the executive level or
the entry -level, will be expected to show personal responsibility. This
could mean completing tasks your manager has assigned to you, or simply
fulfilling the duties of your job description. If you make a mistake, you
ackn owledge your fault and do whatever you need to do to fix it.
2. Corporate responsibility:
Businesses have responsibilities to their employees, their clients or
customers, and, in some cases, to their board of directors. Some of these
may be contractual or legal obligations, others may be promises, for
example, to conduct business fairly and to treat people with dignity and
respect. Whatever those obligations are, the business has a responsibility
to keep them.
3. Loyalty:
Both businesses and their employees are expected to show loyalty.
Employees should be loyal to their co -workers, managers, and the
company. This might involve speaking positively about the business in
public and only addressing personnel or corporate issues in private.
Customer or client lo yalty is important to a company not only to maintain
good business relations but also to attract business through a good
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98 4. Respect:
Respect is an important business ethic, both in the way the business treats
its clients, customers and employee s, and also in the way its employees
treat one another. When you show respect to someone, that person feels
like a valued member of the team or an important customer. You care
about their opinions, you keep your promises to them, and you work
quickly to re solve any issues they may have.
5. Trustworthiness:
A business cultivates trustworthiness with its clients, customers and
employees through honesty, transparency and reliability. Employees
should feel they can trust the business to keep to the terms of the ir
employment. Clients and customers should be able to trust the business
with their money, data, contractual obligations and confidential
information. Being trustworthy encourages people to do business with you
and helps you maintain a positive reputation .
6. Fairness:
When a business exercises fairness, it applies the same standards for all
employees regardless of rank. The same expectations with regard to
honesty, integrity and responsibility placed upon the entry -level employee
also apply to the CEO. Th e business will treat its customers with equal
respect, offering the same goods and services to all based on the same
terms.
7. Community and Environmental Responsibility:
Not only will businesses act ethically toward their clients, customers and
employees , but also with regard to the community and the environment.
Many companies look for ways to give back to their communities through
volunteer work or financial investments. They will also adopt measures to
reduce waste and promote a safe and healthy enviro nment.
5.7 IMPORTANCE OF BUSINESS ETHICS
 Control Business Malpractices :
Business ethics directly influence the operations of the business. It is the
one which helps business in deciding what is wrong and what is right.
These ethics set certain rules and principles to be followed strictly by
business, and their violation leads to a penalty.
Implementation of these principles ensures that business does not indulge
in any unfair practices like black marketing, providing misleading
advertisement, frauds in measures and weight, adulteration, etc. Through
business, ethics works on providing better products to its customers at
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99  Better Relation with Employees :
Employees are an important part of the business and necessary for the
survival of th e business. Business ethics ensures that business works for
the welfare of its employees working with it. The business should not only
work for the achievement of its objectives like profit maximization and
higher growth but should also focus on peoples wo rking with it.
These ethics ensures that business provides better monetary compensation
and good working conditions to its employees, active participation in
decision making, addressing complaints, and providing promotions as per
their progress. This he lps in maintaining a good relationship with
employees.
 Improves Customer Satisfaction:
The consumer is termed as king in the market and is the one who decides
the success or failure of every business. It is important that the business
fulfils the needs of its customers.
Business ethics provides principles for business operations under which it
is required to provide better quality products at reasonable prices. It
ensures that the business provides better customer support and redressal of
all complaints. This helps businesses in improving the satisfaction levels
of its customers.
 Increase Profitability: Business ethics improve the productivity and
profitability of every business. It sets certain rules to be followed by every
person working wit h the business. Every employee is required to adhere to
these rules and should focus on its duties with sincerity.
These ethics ensure that there is no wastage of resources, and every
resource is efficiently utilized. This eventually leads to an increase in
business profit in the long run.
 Improves Business Goodwill: Business goodwill has an important
effect on capturing the market. Better goodwill businesses are able to
attract more and more customers. By implementing ethics in its operations
business aim s at providing better service to the market.
Businesses that work ethically operate at the low -profit base and with
honesty. This develops a better image in front of the public and is easily
accepted by customers with fewer efforts.
 Better Decision Making : Ethics in business helps them in making
better decisions timely. It provides certain rules and guidelines that every
business needs to follow in its operations. Every decision is taken in light
of the moral principles and social values provide through th ese ethics.
It helps businesses in deciding what is right and what is wrong. Every
person working within the business is required to respect these ethics,
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100  Protection of Society: Society is very important for t he success of
every business. If a business does not consider the interests of its society,
then it will harm its survival.
Business ethics direct that business should work for the welfare of its
society and take part in various infrastructural developmen t programs.
It ensures that business contributes actively to its corporate social
responsibility. A business should not perform any activity that creates a
problem for the society in which business exists.
5.8 SUSTAINABILITY MEANING :
Sustainable development can be defined as development that meets the
needs of the present without compromising the ability of future
generations to meet their own needs .
It is the organizing principle for meeting human development goals while
simultaneously sustaining the ability of natural systems to provide the
natural resources and ecosystem services based upon which the economy
and society depend .
Main features of sustainable development are as under :
1. Sustained rise in real per capita income and economic welfar e :
There should be a sustained rise in real per capita income and economic
welfare over time.
2. Rational use of the natural resources :
Sustainable development does not mean that natural resources should not
be used at all. It simply means that natural resources be rationally used in
a manner such that they are not excessively exploited.
3. No reduction in the ability of future generation to meet their own
needs :
Sustainable development aims at making of natural resource and
environments for asking or rais ing the existing standard of living in such a
way as not to reduce ability of the future generations to meet their own
needs.
4. No increase in pollution :
Sustainable development discards those activities which in order to
maintain existing high standard of living, prove deter mental to nature
resources and environment .


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101 5.9 THREE PILLARS OF SUSTAINABILITY

The concept of sustainability is composed of three pillars: environmental,
social and economic —also known informally as profits, planet, and
people. These are in particular relevant to corporate sustainability, and
efforts made by companies .
1) Environmental protection:
It is the most frequently discussed element. It is concerned with the
reduction of carbon footprints, water usage, non -decomposable packaging,
and wasteful processes as part of a supply chain. These processes can
often be cost -effective, and financially useful as well as important for
environmental sustainability.
2) Social development:
It is about treating employees fairly and ensuring responsible, ethical, and
sustainable treatment of employees, stakeholders, and the community in
which a business operates. This may be achieved through more responsive
benefits, like better maternity and paternity benefits, flexible scheduling,
and learni ng and development opportunities. For example, business should
operate using sustainable labour, which involves fairly -paid, adult
employees who can operate in a safe environment.
3) Economic development:
It is probably the simplest form of sustainability. To be economically
sustainable, a business must be profitable and produce enough revenues to
be continued into the future. The challenge with this form of sustainability
is achieving an equilibrium. Rather than making money at any cost,
companies should atte mpt to generate profit in accordance with other
elements of sustainability.
5.10 SUSTAINABLE DEVELOPMENT GOALS
According to the UN, The Sustainable Development Goals (SDGs) are
the world’s shared plan to end severe poverty, reduce inequality, and
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102

1. Eliminate Poverty
2. Erase Hunger
3. Establish Good Health and Well -Being
4. Provide Quality Education
5. Enforce Gender Equality
6. Improve Clean Water and Sanitation
7. Grow Affordable and Clean Energy
8. Create Decent Work and Ec onomic Growth
9. Increase Industry, Innovation, and Infrastructure
10. Reduce Inequality
11. Mobilize Sustainable Cities and Communities
12. Influence Responsible Consumption and Production
13. Organize Climate Action
14. Develop Life below Water
15. Advan ce Life on Land
16. Guarantee Peace, Justice, and Strong Institutions
17. Build Partnerships for the Goals.
5.11 OBJECTIVES OF SUSTAINABLE DEVELOPMENT
Following are the Objectives of Sustainable Development.
• Stable economic growth - The eradication of poverty and hunger to
ensuring a healthy life.
• Conservation of natural resources - Achieve universal access to basic
services such as water, sanitation, and sustainable energy.
• Social progress and equality - Reduce inequalities in the world,
especially gender inequalities. Supporting the generation by the
development of opportunities through inclusive education and decent
work. Foster innovation and resilient infrastructures by creating
communities and cities capable of producing and consuming sustainab ly.
• Environmental protection - Caring for the environment by combating
climate change and protecting oceans and terrestrial ecosystems.

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103 5.12 MEASURES TAKEN BY GOVERNMENT
TOIMPLEMENTSUSTAINABLE
DEVELOPMENT
NITI (National Institution for Transforming Indi a) Aayog, the
newly -formed commission that replaced the 65 -year old Planning
Commission in India, is entrusted with the task of coordinating
SDGs in India.
States are also advised to undertake similar mapping, including
visioning, planning, budgeting, and developing implementation &
monitoring systems for the state -sponsored schemes that are being
implemented to fulfil the SDGs.
In addition to that, the Ministry of Statistics & Programme
Implementation is engaged in the process of building key indicators
to monitor the implementation of SDGs.
Since 2015 (when the United Nations, along with other countries,
adopted the SDGs) the Indian government has launched several
flagship programs that are at the heart of SDGs. Some of these
include Swachh Bharat Mission, Skill India, Make In India, Digital
India, etc.
5.13 CHALLENGES IN ATTAINING SUSTAINABLE
DEVELOPMENT GOALS FOR INDIA
The four major challenges for attaining SDGs in India are
discussed below:

1) Defining the Key Indicators:
One of the major challenges for India is to devise suitable indicators to
effectively assess the progress of SDGs. The key definitions for areas, munotes.in

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104 such as poverty, hunger, safe drinking water, education need to be revised
in order to effectively implement t he SDGs.
2) Financing Sustainable Development Goals (SDG): Despite
India’s best efforts and making poverty alleviation a priority since the
Fourth 5 -year Plan, India has the highest number of people living below
the poverty line. At today’s level of investmen t, there is a huge funding
shortfall that hinders the progress of attaining SDGs.
3) Monitoring & Ownership of Implementation Process:
Although NITI Aayog is expected to play an important role in taking
ownership of the implementation process, the members of the Aayog have
expressed their concerns time and again about the limited manpower they
have to handle such a Herculean task.
4) Measuring the Progress: The government of India has admitted
the non -availability of data, especially from the sub -national areas.
Incomplete coverage of administrative data is yet another factor that has
hampered the measurement of progress for even the Millennial
Development Goals (MDG’s) that were the precursor to SDGs.
5.14 QUESTIONS:
1) What is Social Responsibility? Explain its adv antages & disadvantages
2) Describe Ethics. What are its Types?
3) List out the importance of Business Ethics
4) Write a Brief note on Sustainability
5) List out 3 pillars of Sustainability
6) Explain Social Responsibility & Ethics, what kind of relationship
exists.
7) List out in detail Goals of Sustainable development
8) How do you define Social Responsibility? Explain its advantages &
disadvantages
9) Enumerate the Challenges in attaining Sustainable Development Goals
in India
10) List out the Objectives of Sustainable Development



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105
6
MIND CONTROL AND SPIRITUAL
QUOTIENT

Unit Structure
6.0 Objectives
6.1 Mind Control
6.2 Spiritual Intelligence or Spiritual Quotient
6.3 Let us sum up
6.4 Exercises
6.0 OBJECTIVES
After going through this unit, you will be able to understand
 Meaning of mind control
 Spiritual quotient
6.1 MIND CONTROL
The control of the mind is a theme ofuniversal interest . It personally
concerns every spiritual seeker belonging to any religion.Religion in its
applied aspect has to grapplewith this problem .
Mind -Control: Difficult but Possible
In this theme, the mind and its control, we areall deeply interested, in a
very personal way,for nothing affects us individually more thanour own
minds. We know somet hing about thesubject. All of us try to control our
minds.But we should like to know more and do better.
Who can help us in this regard? Only thosewho have perfectly controlled
their own minds can guide us.
What we may learn from such sources we shallprese nt here as a system of
simple disciplines.
Control of the mind is a very interesting inner game. If you have a
sportsman's attitudeyou will thoroughly enjoy it, even while
apparentlylosing. In the playing, this game takes agreat deal of skill,
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106 some heroic flair which makes it possiblenot to get disheartened in the
face of a hundredfailures.
Sri Krishna was explaining in the Gita howthe supreme state of Yoga was
to be attained.After listening to him Arjuna said to the Lordin
understandable despair:
O Krishna, this yoga which you declare to be characterized by perfect
evenness of mind, I do not see how it can endure, because of the
restlessnessof the mind. The mind, O Krishna, is restl ess, turbulent,
powerful and obstinate. Tocontrol the mind is as hard, it seems to me, as
tocontrol the wind.
Sri Krishna listened to this representative complaintof man and gave a
reply important forall men of all times. All Indian thinking andpractice on
mindcontrol are largely based onthis teaching of Sri Krishna, He said:
'Undoubtedly, O Arjuna, the mind is restless and hard to control.But by
practice (abhyasa) anddispassion (vairagya) it can be controlled.
From this conversation we know three basicfact s about mind -control:
a. That it has always been an extremelydifficult task even for heroic
persons ofthe stature of Arjuna.
b. That yet it is possible to control the mind.
c. That there are well -defined methods forcontrolling the mind.
In these two words, abhyasa and vairagya practice and dispassion, Sri
Krishna gave thewhole secret of controlling the mind .
It is the uniform verdict of all the saints of India down the ages that there
is no other wayof controlling the mind except through 'practiceand
dispass ion.' This is also calledabhyasa -yoga' or 'the yoga of practice'.
We shall quote here a dialogue between SriRamakrishna and a devotee, in
which the form reemphasizes a fundamental point which everyoneneeds to
remember:
Sri Ramakrishna: “Don't sit idle simply becauseyour spiritual
consciousness has been awakened alittle. Go forward. Beyond the forest of
sandalwoodthere are other and more valuable things - silver -mines, gold -
mines and so on”.
Priya :“Sir, our legs are in chains. We cannotgo forward ”.
Sri R amakrishna: “What if the legs are chained?The important thing is the
mind.Bondage is ofthe mind, and freedom is also of the mind ”.
Priya: “ But the mind isnot under my control ”.
Sri Ramakrishna: “How is that? There is sucha thing as abhyasa -yoga,
yoga thr ough practice.Keep up the practice and you will find that
yourmind will follow in whatever direction you lead it.The mind like a munotes.in

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107 white cloth just returned fromthe laundry. It will be red if you dip it in
reddye and blue if you dip it in blue. It will havew hatever colour you dip it
in”.
Practice and dispassion are no doubt theentire secret of controlling the
mind. But howdo we bring them into our life -stream? Thatis the question.
To do this:
a. we shall have to develop a strong will tocontrol the mind ;
b. we shall have to understand the natureof the mind ;
c. we shall have to learn certain techniquesand practice them earnestly and
intelligently.
How to strengthen the will to control the mind?
It cannot be said that we have no will tocontrol the mind. The ve ry fact
that all of us have our own inner struggles indicates that we have the will.
But in most cases this will tocontrol the mind is not very strong.Our will
to control the mind can never bestrong until and unless we have
deliberatelyand irrevocably reno unced pleasure as one ofthe main pursuits
of our life. The canker which eats away the vitality of our will to
controlthe mind is the pursuit of pleasure. It is likethis: if you have a
servant who is aware thatyou depend on him to procure you illicit
drugs and if you both enjoy the drug together, youcannot then control that
servant. The same isthe case with the mind. The mind which we usefor
seeking pleasure and enjoying pleasure, wecan never control until we give
up seekingpleasure. Even after giving up the pursuit ofpleasure it will not
be easy to control it for themind will always have past incidents to citeto
embarrass us. The strength of our will tocontrol the mind will be in
proportion to thestrength and intensity of our renunciation of thepursuit of
pleasure. Unless the pleasure -motiveis overcome, no matter what else we
do, wecan never perfectly control the mind . Thederivative of this truth is
that those who arereluctant to renounce the pleasure -motive arenot sincere
enough in wanting to control theirmi nds, whatever their professions.By
renunciation of the pursuit of pleasure isnot meant renunciation of the
pursuit of joy. By pleasure is meant the enjoyment ofsense -pleasures or
the gratification arising fromwhat Sri Ramakrishna calls the ‘unripe
ego’,both of which obstruct the attainment of joyor bliss, It is by going
beyond pleasure andpain that one attains joy or bliss, which is thevery
goal of life. There is no question of givingup the desire for joy or bliss, for
it is integralto us, our real nature b eing Existence -Knowledge -Bliss.
Opposites sometimes look alike. Two typesof persons do not have inner
struggle; thosewho have become unquestioning slaves of theirlower
nature, and those who have completelymastered their lower nature. All
others haveinner struggles, which are the result of inadequateor
unsuccessful attempts at controllingthe mind. Inadequate attempts are
indicationsof weak will and of lack of knowledge as tohow to control the
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108 The most important thing is to strengthenthe will to such a degree that
even in the faceof repeated failures we are not disheartened;rather, that
with every new failure to controlthe mind we are roused to fresh
endeavors with new enthusiasm.Now how do we strengthen this will to
controlthe mind? We have to remove th e causesof weakness of will. And
we have to inject strength into it by ensuring the presence ofsuitable
causes. No doubt some of us have struggled with ourminds but have faced
repeated failures. So wehave come to believe that controlling the mindis
not for us. Another reason for the weaknessof our will is that most of us
have perhaps notclearly thought what exactly is at stake in thecontrol of
the mind. If we had, the sheer instinctfor survival would have driven us to
strengthenour will to control the mind. As regards ourfailures to control
the mind, we need not beunduly exercised. It has never been an easytask
even for the noblest of men, the nature ofthe mind being restless. Sri
Krishna says in theGita :
The turbulent senses, O Arjuna, do violentlysnatch awa y the mind
of even a wise man, strivingafter perfection.
For the mind which follows in the wake of thewandering senses,
carries away his discrimination,as a wind carries off its course a
boat on thewaters.
The Buddha teaches :
If one man conquers in battle a thousand mena thousand times,
and if another conquers himself,he (the latter) is the greater
conqueror.
From this we canunderstand that controllingthe mind is the most difficult
task in the world.It is indeed a hero's task. Hence occasional orrepeated
failures to control the mind should notbe taken too seriously. Failures
should be takenas spurs to more determined, sustained, andintelligent
efforts, for we are assured by thegreat teachers that perfect control of the
mindis possible. All thoughts to the co ntrary mustbe eschewed like poison.
What is at stake in controlling the mind?
We must clearly understand what is at stakein controlling the mind.
Insanity is the worstthing that can happen to an individual as aresult of
non-control of the mind. Collectively,non -control of mind may lead to the
downfallof an entire civilization, however prosperous orstable it may
appear to be. There are manyother lesser misfortunes that directly or
indirectlyissue from non -control of mind.
Non-control of mind effec tively obstructsintegration of personality. A
person ofuncontrolled mind will always have a tendency to abnormal
developments or to mental disintegration through internal conflict. Even
underthe most favourable circumstances he will notrealize his potentia l or
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109 One who has no control over his mind cannothave peace of mind. One
who has no peaceof mind, how can he have happiness? A victimof
passions, emotions and tensions,he maydevelop obstinate mental maladies
or turn intoa criminal. If he is the head of a household,indiscipline,
disorder, delinquency, and wretchedhuman relationships leading to family
misfortunesare likely to prevail .
In an Indian maxim it is said: a man mayhave received the grace of God,
of the teacher -and of holy men ; but if he does not have thegrace of his
own mind he will go to rack andruin. Having the grace of one's own mind
leads to having control of it.
On the positive side, at its highest, throughcontrol of mind one can attain
spiritual illumination.Short of that there are many otherblessings of life
attainable through control of mind;a controlled mind can easily be
concentrated.Through concentration of mind , onegains knowledge. And
knowledge is power.
One of the spontaneous results of control ofmind is integration of
personality. Such a personsucceeds, even in adverse circumstances.
Acontrolled state of mind leads to calmness, andcalmness leads to peace
of mind. Peace of mindleads to happiness . A happy person makesothers
happy. The quality of his work improvesstead ily and he often attains
enduringprosperity as a matter of course. It is not thatsuch a person has not
to face the trials andtribulations of life. But he never lacks thecourage and
strength to face them. At home,where he is the head, there are greater
chan cesof order, discipline, joy, culture, and excellenthuman relations.
Society looks upon such aperson as an exemplar of go od life. A person of
controlled mind will be freefrom mental maladies and physical
troublescaused by mental tension.
In a person who ha s controlled his mind hishigher nature asserts itself, and
his hiddenpowers axe released. Friends wonder how thisperson could
become, before their eyes, sogreat. A popular Sanskrit maxim says:
‘Whoconquers the world? He does alone who conquers hismind ’.
Progress, prosperity or peace —nothing of an enduring nature can be
achieved in any field,without control of mind. People without self -control
will not retain even the prosperity thatthey have.
Such are the stakes in control of the mind.To develop a strong w ill to
control the mind,we must teach our own minds that, without it,we are
nowhere. We must impress upon ourselvesthe fact that the character of our
entirefuture depends on whether or not we controlour minds. After
fulfilling man ’s basic physicalneeds, ot her things also may be important;
butfor the attainment of the highest objective oflife —spiritual
illumination —nothing in life ismore important than controlling the mind.
Oncewe re ally understand and believe this, our willto control the mind
will become strong, asstrong as we need to have it.

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110 How to overcome thepleasure -motive
Unless the pleasure -motiveis overcome, no matter what else we do, wecan
never perfectly control the mind; this statementmay give a rude jolt to
many who strugglewith their minds. But it is a statement of fact,and the
implications of this fact need to begrasped.
It is easy to say bluntly that unless thepleasure -motive is renounced one
cannot havea strong will to control the mind, But thepleasure -urge, being
elemental in us, is so de eplyingrained in our flesh and blood that it canbe
got rid of, if at all, only with the greatestdifficulty. We must not, however,
complicateour inner situation by imagining that we arewicked in seeking
pleasure. The pleasuremotiveis not in itself sinful, t hough, of course,
Indulgence in immoral pleasures which creategreater bondage and retard
our higher self -development is. Except for a microscopicminority —who,
in response to a higher call,have renounced worldly pursuits and
aboutwhom we are not speaking he re—except forthem, life itself will
hardly be possible withoutsome satisfaction of the pleasure -urge. 'Whatto
live for, if not for pleasure?' will be thehonest question of the majority of
mankind. Thisurge is a living force in man, and a force by which he lives.
Yet it is true that the pleasuremotiveeats away our will to control the
mind.What then is the solution of this inner problem? To be sure, ascetic
denial is not the answerfor the vast majority. Neither is the
answerindulgence. The answer is in gradual ly educatingour pleasure -urge,
and in understanding thedimensions of our own being and how toharness
the pleasure -urge for the purpose ofself -fulfillment.
This will need some elaboration.Incidentally it is as well to make it clear
thatwe are now discussin g a general problem thatfaces beginners who are
worldly in their dispositions.For those who are advanced aspirantssome of
the points we are going to discusswill not hold good. They will know
whatthese points are; for example, the enjoyment oflegitimate sen se-
pleasure is permissible for theordinary person who has yet to make a start
inspiritual life, but not for the person who hastaken several steps in it.
'Don't seek pleasure' is hardly a practical preceptfor any One who has a
pronounced craving or pleasure in his nature. The illuminedteachers of
India, besides being knowers oftruth, were masters of human psychology
andcompassionate preceptors. What they taught onthis subject can be put
in a few words: seekpleasure, but in a way which will not spoil
yourphys ical or mental health, or obstruct yourhigher development If you
must seek physicalpleasure, seek them in such a way that yourpowers may
be preserved for enjoying the joysof the mind; seek the joys of the mind in
sucha way that your powers may be preserved forattaining the bliss of the
spirit. Do not seekpleasure in a way that will destroy you. Thisshould
make sense to thinking people. Ethicalprinciples, the observance of which
is helpful incontrolling the mind, are all meant to protecta man from
harming hi mself. Thus they servehis profoundest interest.
The wild pleasure -urge has first to be domesticatedin the frame of the
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111 What do we mean by ‘graduation here?By graduation we mean passing
from one ofthe above kinds or levels of joy to one above.We must
remember that the joy of Brahmanis attainable by man not only
theoretically butactually. A firm faith in this truth is necessaryfor
graduation in pleasure -seeking.
A time will eventually come in the life ofthe person who sincerely
struggles on in thisway, when he faces the necessity of settingaside even
the joy of worship, and becominga firm seeker of the Supreme Spirit. It is
onething to seek the benefits of seeking God andquite a different th ing to
seek God for His ownsake, benefit or no benefit. When the seeker
hasinwardly grown to the extent of seeking theSupreme Spirit for its own
sake and for noother motive, then his desire for pleasure willhave been
sublimated, and this will be conducivet o perfect control of the mind.
The very root of man's existence being bliss,it is but natural that he should
instinctivelyseek to feel identified with it. But when he isignorant and is
identified with body and mind,he seeks it ignorantly in the body and
mindand not where it is —in the Spirit. This wrongseeking of bliss in a
wrong place gives rise toour pleasure -motive and its resultant bondage.As
we have said before, bliss (Amanda) is not pleasure; it is beyond pleasure
and pain,which can never be separated on the physicaland mental plane.
It is man's essential nature that urges him toseek bliss. And after much
striving and fitfulseeking of it on the material and mental planes,in the
limited, man ultimately discovers it withinhis very Self —the Atman,
which is unlimited,being identical with the Supreme Spirit.
He then realizes the truth of this teachingof the Upanisad : ‘In the Infinite
alone is bliss ; there is no bliss in the finite ’. To come toknow this fact man
must learn at one stagethat bliss is different from pleasure and painand that
to attain it he must control his mindand give his pleasure -motive a higher
direction.
Changing the Constitutionof the Mind
The impurities of the mind can be graduallyremoved by providing the
mind with wholesomefood, and by br inging about a change inthe
constitution of the mind so that sattva predominatesover the other two
gunas. Finally,it is true, sattva has to be transcended; but firstit has to
predominate.
We mentioned earlier that according to theteachings of the Upanisad the
mind consists offood.In elaborating this teaching the Upanisadsays:
The food that we eat is transformed in threedifferent ways: the
grossest part of it becomesexcrement, the middle part is
transformed intoflesh, and the subtlest part goes to form the m ind.
Further :
Just as in the churning of curds, the subtlestpart rises up and is
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112 andis transformed into mind.As the mind consists of food, naturally
theteaching follows:
When the foo d is pure, the mind becomes pure.When the mind
becomes pure, memory becomesfirm. And when a man is in
possession of firmmemory, all the bonds which tie him down to
theworld are loosed .
According to the commentary of Sankaracaryathe word ‘food’ in the text
means anything thatis taken in by the senses, that is to say :sound, sights ,
smells, etc. And 'the mind becomespure' means that it becomes free from
aversion,attachment or delusion, which creates disquiet in the mind,
making it difficult to control. So , one of the basic methods of controlling
themind is to desist fromtaking such 'food ’ aswill cause attachment,
aversion and delusion.
But how do we know which food will causeattachment, aversion and
delusion? Broadlyspeaking , according to the G ita, rajasika andt amasika
food cause s attachment, aversion anddelusion. S attvika food helps a
person to reduceattachment, aversion and delusion. It isnot only what is
usually taken through themouth for nourishment which will have
something to do with the state of the mind. Liquorand drugs are also taken
through the mouth,and they also affect the mind. We can easilysee the
difference in effect when we drink ag lass of sugar -candy water and a glass
of liquor.
The effect of drugs on the state of the mindis well known. Also, as w e
have noted, whatwe see with our eyes, hear with our ears, andwhat we
touch, have great effect on our minds.A movie, or an oration, can set in
motion wavesof various sorts in the mind, making it difficultor easy to
control.
So, in moulding the conditions favourable forcontrolling the mind,
judicious eating and drinkingare of some help. Equally important is
theintake through the other senses. In the choiceof food, persons desiring
to control the mindwill do well to prefer sattvika to r ajasika andtamasika
foods. So far as food taken throughthe mouth is concerned, the Git a is our
bestguide:
The foods which augment vitality, energy,strength, health,
cheerfulness and appetite, whichare savory and oleaginous,
substantial and agreeable,are liked by the sattvika.
The foods that are bitter, sour, saline, excessivelyhot, pungent, dry
and burning are liked by therajasika and are productive of pain,
grief anddisease.
That which is stale and tasteless, stinking, cookedovernight, refuse
and impure is the food likedby the tamasika .
What is liked by s attvika, rajasika andt amasika persons is also conducive
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113 Human nature being constituted by varyingcombinations of the three
substantive forces,sattva, rajas and tam as, the predominance ofone of the
three gunas over the other two determinesthe dominant tone of a man's
nature, Aman with a preponderance of rajas or tam as inhis nature cannot
behave, in spite of himself,like a man with a preponderance of sattva.This
is why Sri Kr ishna says in - despair, as itwere, in the Gita: 'Even a wise
man acts inaccordance with his own nature: beings follownature: what can
restraint do?'
If restraint can do nothing, if human natureis predetermined and incapable
of being changed,then th ere is little sense in discussing howto control the
mind. The implication of thisstatement of the Lord, therefore, seems to
be:man must change his nature, physical and mental,in order to be able to
control the mind. Solong as rajas or tamas predominates in the
constitutionof our mind, we cannot control it, howevermuch we may try.
The reason for thisshould be understood.
The psychological consequences of thepredominance of the projecting
power of rajasand the veiling power of tamas make controllingthe mind in
which these powers aredominant a difficult task. Yet there is
anotherconstituent of the mind which makes the tasknot a hopeless one.
This constituent is saliva,which is found in a mixed or pure state. Onthis,
Vedanta teaches:
Pure sattva is (clear) like water, yet in conjunctionwith rajas and
tamas, it makes for transmigration. The reality of Atman becomes
reflectedin sattva, and like the sun reveals the entireworld of
matter. The traits of mixed saliva arean utter absence of pride etc.,
niyama, yama, et c.,as well as faith, devotion, yearning for
liberation,the divine tendencies, and turning away from theunreal.
The traits of pure sattva are cheerfulness, the realization of one’s
owns Self, supreme peace, contentment,bliss, and steady devotion
to Atman bywh ich the aspirant enjoys bliss everlasting.
So we find —and it is very important tounderstand this —that built into our
ownnature are powerful impediments and potenthelp in controlling the
mind. It is therefore aquestion of devising the right strategy so that the
inimical forces may be defeated and thehelpful forces given full play. This
can be donenot by engaging in a blind mad fight, but by skillfully
operating the inner forces.
The strategic question in regard to thecontrol of mind is this: can we so
change t he "g una-balance in our nature as to bring aboutthe preponderan ce
of sattva? Teachings on this problem are therefore of great help to us.
Inthe S rimad Bhagavatam we find:
The gunas, sattva, rajas and tamas, belong tothe intellect and not
to the Self. Through sattvaone should subdue the other two and
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114 Through developed sattva a man attains that formof spirituality
which consists in devotion to Me.
Through the use of sattvika things (i.e.tend to purity and
illumination and sois developed; this leads to spirituality.
That superior form of spirituality which is brought on by an
increase of sattva destroys tamas. And when both of them
areiniquity which has its rise in them, is al so quickly destroyed.
In the teachin g that through developedsattva the aspirant attains
spirituality we getthe most important lesson for our purpose, forattainment
of spirituality and mind -control areidentical in one sense. So, of utmost
importancefor those who want to control the mind is to know how to
develop sattva.
What are the sattvika things and activities bymeans of which sattva can be
made to predominate?
Sri Kr ishna specifies them in the nextverse:
Scriptures, water, people, place, time, work, birth,meditation,
mantra and purification —these are theten causes which develop
the gunas.
The import of this verse is that 'each of thesehas its sattvika, rajasika and
tamasika counterparts ; the first conducing to purity, illumination,and bliss;
the second to temporarypleasure followed by painf ul reaction; and thelast
leading to ignorance and increasingbondage.
Of these, those alone are sattvika, which the sages praise ; the tamasa are
what they condemn; while those are rajasa about which they are
indifferent. For the increase of saliva a man sh ould concernhimself with
sattvika things alone. Thence comes spirituality, and from this again
knowledge, leading to the realization of one's independenceand
theremoval of the superimposition of grossand subtle bodies .
In the verses quoted above we have, f roman authentic source, ill -important
teachings onhow to bring about desirable transformation inthe g una-
combination in our mind. Control ofmind, in its creative arid positive
aspect, is thisinner transformation. Until this is achieved notrue work is
really done for gaining controlover the mind .
When through these and other means theaspirant has succeeded in
ensuring the preponderance of sattva in his nature, his battlefor min d-
control is more than half won, butnot fully . The reason is that even sattva
bindsman. This is how the G ita puts it:
Sattva , rajas and tam as—these gunas, O mightya rmed,bo th of Prakrti, bind
fast in the body theindestructible embodied one.
Of these sattva that is stainlessness,luminous and free from evil, binds the
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115 The psychological implication of the wordsof the Gita that 'sattva binds by
attachment tohappiness and attachment to knowledge, andof Sri
Ramakrishna, that 'sattva is also a robber',is that even the pr eponderance
of sattvain our nature does not amount to perfect controlof the mind. What
is needed for gaining perfect control of the mind is to go beyond thegunas.
Sri Kr ishna teaches the t echnique of goingbeyond the gunas in the
fourteenth chapter ofthe Gi ta. In verse twenty -six he gives the
entireteaching in its' simplest form, shorn of all technicalities.
He says: ‘And he who serves Me(the Lord) with unswerving devotion, he,
goingbeyond the gunas, is fitted for becoming Brahman ’.
But only the pure in hear t can serve Godwith unswerving devotion. If we
feel that weare not so pure in heart and so cannot practice unswerving
devotion, we must not be discouraged.Through the persistent practice
ofdevotion we can gradually become more unswervingand pure.However,
if for any reason we are not able to adopt the ‘ simplest method ’ of going
beyondthe gums, other ways of controlling the mindremain open to us.
In addition to learning how to conquer tamasand rajas we need to learn
how to conquersattva also. This is taught by Sri Sarikaracaryathus:
Tamas is destroyed by both sattva and rajas by sattva, and sattva dies
when purified . Therefore do away with thy superimpositionthrough the
help of sattva.
Holy company greatly helps Mind -Control
We have discussed in some detail one methodof changing the guna -
compositionof our mindfor the purpose of controlling it. This is
anauthentic method taught in the scriptures.
When correctly practiced, it can help anyone.There will, however, be
many people who areso constituted that they canno t take inner careof
themselves in such detail, or because theirconditions of living are not
conducive to thepractice of this discipline. Is there any otherdiscipline
easier to practice but equally effective?Yes, there is a discipline which is
easierto practice, and is equally, if not more effective.But there is a
difficulty in speaking about thisvery simple method. An illustration will
showwhat we mean. There are some patients who,having suffered a great
deal from an obstinate ailment , do not really trust t he doctor when
heprescribes a simple remedy. They are inclinedto think that a difficult
disease needs correspondinglycomplicated treatment. The same istrue of
the simple method we are about todescribe: for some people it is too
simple.
The method is that o f being in holy company.It is a simple method, but
more effective thanall others.
Most of our attachments are due to the preponderance of rajas in our
nature. When weare in the company of a perfected soul, thepowerful
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116 change inthe guna -composition of our mind, leading toa preponderance of
sattva - for the time being.
How enduring this sattva dominance will bedepending on how often we
frequent holy company.
Holy company makes our task of controllingthe mind easier, so we must
not fail to seek it.But when holy company is not available, whatdo we do?
We must depend on our own resourcesand go ahead with hard and
methodicalwork. Following thoseof the above teachingswhich are suitable
for us, w e must bring aboutthe preponderance of sattva in our mind,
andfinally learn how to transcend sattva by purifyingit.
Basic yoga disciplines formind -control
The yoga scriptures insist that in order tocontrol the mind aspirants must
practice thedisciplines of yama and niyama. Non -killing,truthfulness, non -
stealing, continence, and non -receivingof gifts are called yamas. Internal
andexternal purification, contentment, mortification,study, and worship of
God are the niyamas.
Obviously one who is not yet the master ofhis mind will fail to observe
some of these precepts.Yet the idea of insisting on the practiceof these
virtues is to keep the ideal alwaysbright before the practitioner, so that
innerstrength may grow through self -effort.
Patanjali,the great teac her of yoga, says that u ndisturbed calmness of mind
is attained bycultivating:
a. Friendliness towards the happy.
b. Compassion for the unhappy.
c. Delight in the good.
d. Indifference to the evil.
This aphorism requires explanation. The dispositionof bein g happy at the
happiness ofothers creates a very soothing mental climatein which wrong
impulses like jealousy cannotthrive.
While avoidance of evil company is helpfulfor controlling the mind in a
negative way, thecompany of the holy is helpful in the mostp ositive
manner; Holy Company removes themental impurities of even a degraded
person. This is what the saints and scriptures say, ShriKrishna teaches in
the Srimad Bhagavatam thatassociation with the holy roots out all
attachment.
Our attachments are themost powerful impediments to the control of the
mind. When attachments are removed, aversions and delusionsalso leave
us easily, as a result of whichwe attain discrimination andclarity of
understanding. With these inner transformation sun knowingly going on as
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117 6.2 SPIRITUAL INTELLIGENCE OR SPIRITUAL
QUOTIENT
What does it mean to have spiritual intelligence or spiritual ? Spiritual
intelligence is a higher dimension ofintelligence that activates capacities
such as a new level of understanding, empathy, andinnovation, and stems
from a deep understanding of its goals and reasons for existence, resulting
inan improvement of talents and work. It's also a "transpersonal intellect
that extends beyond hu manboundaries, a non -rational dimension that
connects man to nature and to God.
Scholars like Maslow, Jung, and Fowler have demonstrated the
importance of spirituality in theformation of human personality traits and
motivations. Spiritualintelligence, is t he pinnacle of intelligence, the
ultimate intelligence , and helps us to make acceptable judgments on
events and act accordingly. It allows people to analyze conditions in order
to figure out how to change them, rather than reacting tothem. This allows
peop le to become masters of situations rather than just enduring them.
Thisintelligence also aids in answering questions about the profound
meaning of things and their value,allowing one to act holistically. Spiritual
intelligence is also a multidimensional tr ansformationalspirituality.
Internal and external transformations are taking place (a new relationship
with God, anew relationship in searching harmony with oneself and well -
being for the community, andharmony with the environment in being
preoccupied not only by the present but also by the resources for the future
generations). Values and rationality are included, but it goes beyond
them.It also serves as the foundation and basis for all transformational
activities.
Gardner's theory of multiple intelligences
Howard Gardner changed the world's perception of intelligence, which
was previously defined in terms of IQ (intelligence quotient). Professor of
psychology at Harvard University's GraduateSchool of Education, he
wrote "Frames of Mind: The The ory of Several Intelligences," in which e
demonstrates the presence of multiple intelligences rather than a single
mind that can bemeasured and quantified. Gardner isn't the first to
advocate for multiple intelligences. Gardner first outlined his theory in his
1983 book "Frames of Mind: The Theory of Multiple Intelligences,"
where he suggested that all people have different kinds of "intelligences."
Gardner proposed that there are eight intelligences, and has suggested the
possible addition of a ninth known as "existentialist intelligence."
While a person might be particularly strong in a specific area, such as
musical intelligence, he or she most likely possesses a range of abilities.
For example, anindividual might be strong in verbal, musical, and
natura listic intelligence.

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118  Visual -Spatial Intelligence
Strengths: Visual and spatial judgment
People who are strong in visual -spatial intelligence are good at visualizing
things. These individuals are often good with directions as well as maps,
charts, videos, and pictures.
Characteristics
Characteristics of visual -spatial intelligence include:
 Enjoys reading and writing
 Good at putting puzzles together
 Good at interpreting pictures, graphs, and charts
 Enjoys drawing, painting, and the visual arts
 Recogn izes patterns easily
Potential Career Choices
If you're strong in visual -spatial intelligence, good career choices for you
are:
 Architect
 Artist
 Engineer

 Linguistic -Verbal Intelligence
Strengths: Words, language, and writing
People who are strong in linguistic -verbal intelligence are able to use
words well, both when writing and speaking. These individuals are
typically very good at writing stories, memorizing information, and
reading.
Characteristics
Characteristics of ling uistic -verbal intelligence include:
 Good at remembering written and spoken information
 Enjoys reading and writing
 Good at debating or giving persuasive speeches
 Able to explain things well
 Often uses humor when telling stories
Potential Career Choice s
If you're strong in linguistic -verbal intelligence, good career choices for
you are:
 Writer/journalist
 Lawyer
 Teacher

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119  Logical -Mathematical Intelligence
Strengths: Analyzing problems and mathematical operations
People who are strong in logical -mathematical intelligence are good at
reasoning, recognizing patterns, and logically analyzing problems. These
individuals tend to think conceptually about numbers, relationships, and
patterns.
Characteristics
Characteris tics of logical -mathematical intelligence include:
 Excellent problem -solving skills
 Enjoys thinking about abstract ideas
 Likes conducting scientific experiments
 Good at solving complex computations
Potential Career Choices
If you're strong in logical -mathematical intelligence, good career choices
for you are:
 Scientist
 Mathematician
 Computer programmer
 Engineer
 Accountant

 Bodily -Kinesthetic Intelligence
Strengths: Physical movement, motor control
Those who have high bodily -kinesthetic intelligence are said to be good at
body movement, performing actions, and physical control. People who are
strong in this area tend to have excellent hand -eye coordination and
dexterity.
Characteristics
Characteris tics of bodily -kinesthetic intelligence include:
 Good at dancing and sports
 Enjoys creating things with his or her hands
 Excellent physical coordination
 Tends to remember by doing, rather than hearing or seeing
Potential Career Choices
If you're stro ng in bodily -kinesthetic intelligence, good career choices for
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120  Builder
 Sculptor or an Actor

 Musical Intelligence
Strengths: Rhythm and music
People who have strong musical intelligence are good at thinking in
patterns, rhythms, and s ounds. They have a strong appreciation for music
and are often good at musical composition and performance.
Characteristics
Characteristics of musical intelligence include:
• Enjoys singing and playing musical instruments
• Recognizes musical patterns and tones easily
• Good at remembering songs and melodies
• Rich understanding of musical structure, rhythm, and notes
Potential Career Choices
If you're strong in musical intelligence, good career choices for you are:
 Musician
 Composer
 Singer
 Music teacher
 Conductor

 Interpersonal Intelligence
Strengths: Understanding and relating to other people
Those who have strong interpersonal intelligence are good at
understanding and interacting with other people. These individuals are
skilled at assessing the emotions, motivations, desires, and intentions of
those around them.
Characteristics
Characteristics of interpersonal intelligence include:
 Good at communicating verbally
 Skilled at nonverbal communication
 Sees situations from different perspectives
 Creates positive relationships with others
 Good at resolving conflict in groups

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121 Poten tial Career Choices
If you're strong in interpersonal intelligence, good career choices for you
are:
 Psychologist
 Philosopher
 Counselor
 Salesperson
 Politician

 Intrapersonal Intelligence
Strengths: Introspection and self -reflection
Individuals who are strong in intrapersonal intelligence are good at being
aware of their own emotional states, feelings, and motivations. They tend
to enjoy self -reflection and analysis, including daydreaming, exploring
relationships with others, and asse ssing their personal strengths.
Characteristics
Characteristics of intrapersonal intelligence include:
 Good at analyzing his or her strengths and weaknesses
 Enjoys analyzing theories and ideas
 Excellent self -awareness
 Clearly understands the basis fo r his or her own motivations and
feelings
Potential Career Choices
If you're strong in intrapersonal intelligence, good career choices for you
are:
 Philosopher
 Writer
 Theorist
 Scientist

 Naturalistic Intelligence
Strengths: Finding patterns and rel ationships to nature
Naturalistic is the most recent addition to Gardner’s theory and has been
met with more resistance than his original seven intelligences. According
to Gardner, individuals who are high in this type of intelligence are more
in tune wit h nature and are often interested in nurturing, exploring the
environment, and learning about other species. These individuals are said
to be highly aware of even subtle changes to their environments.
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122 Characteristics
Characteristics of naturalistic intelligence include:
 Interested in subjects such as botany, biology, and zoology
 Good at categorizing and cataloging information easily
 May enjoy camping, gardening, hiking, and exploring the outdoors
 Doesn’t enjoy lear ning unfamiliar topics that have no connection to
nature
Potential Career Choices
If you're strong in naturalistic intelligence, good career choices for you
are:
 Biologist
 Conservationist
 Gardener
 Farmer
There are many people who feel that there sh ould be a “ninth intelligence”
added to Howard Gardner’s Theory of Multiple Intelligences, th at of
“existential intelligence ” that can be called as wondering smart, cosmic
smart, spiritually smart, or metaphysical intelligence. The possibility of
“existent ial” intelligence has been alluded to by Gardner in several of his
works. He has stated that existential intelligence might be manifest in
someone who is concerned with fundamental questions about existence, or
who questions the intricacies of existence.
Existential intelligence can be defined as the ability to be sensitive to, or
have the capacity for, conceptualizing or tackling deeper or larger
questions about human existence, such as the meaning of life, why are we
born, why do we die, what is conscious ness, or how did we get here.
Gardner’s theory has come under criticism from both psychologists and
educators. These critics argue that Gardner’s definition of intelligence is
too broad and that his eight different "intelligences" simply represent
talents , personality traits, and abilities. Gardner’s theory also suffers from
a lack of supporting empirical research.
Despite this, the theory of multiple intelligences enjoys considerable
popularity with educators. Many teachers utilize multiple intelligences in
their teaching philosophies and work to integrate Gardner’s theory into the
classroom.
6.3 LET US SUM UP
In this unit the concept of mind and controlling the mind for deviant
behaviour is discussed by controlling the brain power. The ability to
control electrical activity in brain circuits has the potential to do for brain
disorders what electrical stimulation has accomplished in treating cardiac
disorders. By beaming electrical or magnetic pulses through the scalp, and munotes.in

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123 by implanting electrodes in the b rain, researchers and doctors can treat a
vast array of neurological and psychiatric disorders, from Parkinson’s
disease to chronic depression.
But the prospect of “mind control” frightens many, and brain stimulation
to modify behavior and treat mental ill ness has a sordid history. In the
1970s Spanish neuroscientist Jos e Delgado used brain stimulation in
monkeys, people and even a charging bull to understand how, at a neural
circuit level, specific behaviors and functions are controlled —and to
control them at will by pushing buttons on his radio -controlled device
energizing electrodes implanted in the brain. Controlling movements,
altering thoughts, evoking memories, rage and passion were all at
Delgado’s fingertips. Delgado’s goal was to relieve the world of deviant
behavior through brain stimulation and produce a “psycho -civilized”
society.
The concept of spiritual intelligence has been explained. Spiritual
intelligence is defined as the human capacity to ask questions about the
ultimate meaning of life an d the integrated relationship between us and the
world in which we live. It results in an increase in psychological well -
being of individuals as well as having a goal in their life.
6.4 EXERCISES
Q.1 What is mind control? Discuss different strategies of mind control.
Q.2 Explain spiritual intelligence with examples.




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124 7
ROLE AND RESPONSIBILITIES OF A
MANAGER, EFFECTIVE AND
INEFFECTIVE MANAGERIAL STYLES
Unit Structure
7.0 Objectives
7.1 Role and Responsibilities of a Manager
7.2 Effective and Ineffective Managerial Styles
7.3 Let us sum up
7.4 Exercises
7.0 OBJECTIVES
After going through this unit, you will be able to understand
 Role and Responsibilities of a Manager
 Effective and Ineffective Managerial Styles.
7.1 ROLE AND RESPONSIBILITIES OF A MANAGER
Notion of Manager
Managers are the community that visibly stands apart in present -day
business organization, although heterogeneous and difficult to unequivocal
defining. The reasons for this phenomenon are concerned with the process
of ownership and management’s separation, therefore with so called
“managerial revolut ion”. The notion of manager is fairly indefinite. This
issue is much expanded in economic and organization and management
sciences. Tremendous heterogeneity of administration personnel is the
reason that there is no, universal and commonly accepted definit ion in the
literature on this subject. In the business encyclopedia, manager is on
described as a person, who fulfills the primordial managerial functions
(planning, organizing, motivating and controlling) and is the superior of
given human team. In partic ular manager is the person that makes plans
and decisions, organizes, supervises and controls human, finance and
information resources. Manager is the person employed in the
administration position, who has comprehensive knowledge necessary to
leading peop le and managing the organization, in order to achieve optimal
realization of their tasks in the confined conditions.
Most of managers are also supervisors, but not all of them, because there
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125 do not – have in any way impact on organizations achievements
capability. Supervisor is the person, who is placed in formal organization
and has subordinates. So, it is the person who the head of the given
department and causes – using employees – realization of commissioned
to this division tasks.
Managing personnel could be divided in to many groups; it depends on the
undertaken criterion. The most often referred criterion is the position of
manager in the organization’s structure (hierarchy). From this point of
view one can distinguish:
a) top -management – including managers occupying the highest posts in
company’s central administration or in branch establishments; they are
responsible for planning and strategic decisions;
b) middle -management – that means managers of departments and
services in company’s central and its branch establishments; they come to
operating decisions, pass them on first -line management and control
implementation of these decisions;
c) first -line management, supervisory man agement or junior management
– including mainly supervisors of production’s divisions (that is foremen
and brigadiers) responsible for implementation of made decisions and
direct control of tasks realization’s process.
In another way administration personn el could be divided, when one
makes allowance for manager’s sphere of activity and job description.
When man takes into consideration this criterion, then it could be marked
out:
 functional managers – responsible for one kind of activity in given
business organization (e.g. production, marketing, selling or finance),
 Overall managers – supervising complicated economic unit, like
enterprise, branch establishment or separate department and
responsible for whole economic activity of this unit (i.e. production,
marketing, selling and finance).
Next and also essential partition makes allowance for management as a
decisions process and divides all people from managerial sphere
population into:
 assistant personnel – their job includes recording, gathering and
storage of information,
 specialists – responsible for transformation and preparation of
organization or its division’s activity variants,
 decision -makers – people who choose aims and ways of reaching
them.
Beyond above mentioned indexing (that takes into accou nt first of all
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126 also divided giving consideration to another criterions, like for example:
characteristic features, ways of behavior, demographic features or
preferred managerial style. It is worth also emphasizing the meaning of
another indexing that takes into account managers’ approach to commit
and administrated resources. Here one can mention:
a) entrepreneurs – that is contractors, who establish a business, take risk
and lead it on their own account; they usually undertake risky business
venture hoping to make a success; this undertakings consist in transferring
different resources from areas where are little profits and low effectiveness
to the areas of high performance and great e arnings;
b) intrapreneurs – in other words managers, who have proper knowledge
to administrate the company and reveal initiative and inventiveness in
their activity, which they make use of to develop somebody else’s
enterprise; the methods of acting (and a lso knowledge) are often much the
same as principles of entrepreneurs’’ activities but the potential risk and
emotional loading is here considerably lower, because intrapreneurs does
not lead the enterprise at his own risk and account.
Typologies of manage rial roles
Managers’ roles were being changed in the time distance, because the
contexts of enterprises’ activity were also being changed. One hundred
years ago the supervisor was only the liaison between the owner and all
the staff of the company. He list ened to what the employees had to say and
used their ideas, but he was concentrated rather on resolving the problems
than on discipline. However, along with the growth of an average
enterprise size, supervisors got more powerful and theirs managerial style
became more autocratic. The contexts of managers’ activity were changed
and so called “managers’ revolution” took place. Together with it manager
received the right to employ and dismiss people, specify the quantity and
quality of their work, specify the required quality of products, etc.
Afterwards the status of managers in the enterprise began to change
because of changes in the external and internal conditions of company’s
functioning.
Internal changes, because technological development required employi ng
experts.
This people with specialist knowledge be in want of more freedom of
action, which autocratic style of management did not provide. However
external context was changed because of improvement of subordinates’
situation, as a result of more and mo re expanding labour rights. One
started to pay attention to employee’s needs and their motivation, which
was expressed in behaviour theory. Nowadays management conceptions
are concentrated rather on showing the inferior the direction than on tight
control.
Although the level of knowledge, necessary for effective job processing,
has lately enormously increased and methods of its accomplishing are
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127 in a such way, that hitherto prevailing q uantity and quality of production
could be sustained by keeping up good interhuman relationships in the
enterprise.
Manager – which has already been found out – performs many various
roles in business organization. Very often they arise as a result of
existence of certain behaviour patterns which function in external and
internal environment of the company and are related with position of a
given person in the organization’s structure. One can therefore distinguish
many different typologies of managerial ro les in the enterprise, if one
takes into consideration particular criteria.
According to task priority criterion (enterprise survival oriented and not
development oriented) one can present:
 conservative roles – arising from day -to-day problems and as a rule
leading to fixation of conservative attitudes; managers such orientation
would – in the name of “survival at any price” – avoid any conflicts in
the company, restrain it’s development aspiration and theirs own self -
realization,
 creative roles – direct ed on company’s expansion, its adaptation to
changing environment and managers self -realization, which makes
possible to provide the policy of the long term dynamic development.
When one makes allowance for criterion of market behaviour, one can
distinguis h:
 strategic roles – identified most often with the program of general
defining and realization of organizations aims and fulfillment of its
mission,
 organizing roles – making possible for manager to accurate
organization of the enterprise and it’s functio ning according to
expectations.
The managerial roles are divided into three groups: interpersonal(creating
and maintaining of interpersonal relationships), informational (concerned
with the information aspects of managerial work – resumption and
transmissi on of information)and decisional (coming to decisions).
1. Interpersonal roles include:
 figurehead role – manager represents the business organization in all
matters of formality, legally and socially to those inside and outside of
the organization (it depends on his position in the enterprise’s
structure) and he is like a company symbol for external environment,
 leader role – he reaches the organization’s aims by using specified
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128  liaison role – manger interacts with peers and people outside the
organization, heenters into agreements, contracts, gain the orders and
therefore perform activity essential for the company.
2. Information roles include:
 monitor role – manager searches for the informatio n concerned with
the company’s activity (problems with selling, taxes, production, etc),
which are necessary for making decisions; he read professional
magazines connected with specificity and selling market of his
enterprise,
 disseminator role – manager t ransmits and propagate special
information into the organization; he works up and sends reports,
letters, etc.
 spokesperson – disseminates the organization’s information into its
environment(central government, local government, different offices,
media, e tc.) and into the organization(e.g. organized labour).
3. Decision roles include:
 entrepreneur role – manager analyzes possibilities of company’s
development and implements systematic changes, initiates different
programs and scientific research, encourages employees to make
contribution and present individual ideas for developing the
organization,
 disturbance handler role – manager improves the organization’s
structures, responds to conflicts, all types of criticism and complaints
that appear in the company, solves them and counteracts new ones,
eliminates disturbances and negative events inthe ent erprise,
 resource allocator role – he chooses where the organization will
expand its efforts, distribute limited resources (finance, technical,
human, etc .) in the organization, regulate their usage in work,
prioritizes tasks and procedures,
 negotiator rol e – manager negotiates on behalf of the organization in
any individual or group, external or internal agreements.
Conditions of managers’ role
The way of fulfilling the social role by the person depends both on
subjective factors, his personality traits, a nd the personality as well as on
objective, outside factors in the relation to him. It is possible to point out
here two approaches to determinants of the fulfilling of the roles by the
given manager:
 individualistic approach – where the person’s individua l features are
influencing the specification of him according to his position in the
team and the content of hisroles, and so the manager has influence on
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129 reaching depends on the gener al ability to wield managerial duties
chiefly,
 situation theory – according to which it is the objective situation that
influences the management style, the quality, effects of directing, for
fulfilling the managerial roles, because the situation requires the
determined decision and individual features are leaving for the other
plan here.
Both theories are not staying in the contradiction in reality since working
of the manager refers to various contexts. Because he has bigger influence
on the situation in which he is operating he has a bigger power, he has the
more important role or the high office position in the organizational
structure of the given company. It refers to influence on his direct, nearest
environment, i.e. for the company and the internal c ontext of his
functioning. However the more far -away environment, the global
situation, the social and economic system more is influencing the
manager, the behaviour of whom is the reaction to the existing outside
context.
The economic growth and dynamics of the environment influence the
evolution of manager’s roles. This new formed roles are the answer on the
changing of internal and external context of the companies functioning. It
is possible to separate among objective, outside conditioning of managers ’
roles the five basic factors which exert bigger and bigger influence on the
manager’s activity. They are the following:
 broad institutional perspective – growing meaning of the business
activity as the social activity on the one hand, and the growing rem ark
of the state from other, they are dictating necessity of the more precise
co-operation of the company and the social environment. New social
requirements in the face of companies and the limitation are forcing
the management of these companies to inclu de variables of social
benefits in every significant decision in practice. Systems of purposes
and values of the company are also changing;
 widening geographical limits and political perspectives – company
operating apart from the country is dealing with v arious national
manners, cultures and levels of the economic development. That is
why in the process the following economic, social, political and
cultural variables must be taken into consideration;
 information challenge – it is conditioned on the technol ogy, variability
of companies and with the global scale of their activity but the result
with growing complexity of managerial decisions. The challenge
includes both capacity and the topic content of the information
necessary in the process of management;
 growing complexity of the company as the system of action – growing
participation of scientific and technical examinations are dictating the
need to lead the level of management competence to the level of the
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130 assortment are leading to decentralization of the decision process and
in the effect to the rise of the complex information system;
 the variety and variability of requests in the relation to the company –
from one sight increasing c ompetition, increasing the pace of the
contact and the transport in the global scale requires quicker reactions
to changes of demand, working of competitors, problems tied with
production and the technology, from other sight tasks referring to
development of new products, new technologies and marketing will
bring to changes which will be tied with the past in the smaller and
smaller mark.
Managerial roles in the internal and external context
Each manager’s role usually influences the bigger mark for the internal or
external context of functioning of the company. Manager’s basic roles
could be split into those which toa bigger or smaller extent influence the
internal and external environment of the companies. So, influence for
internal context has: the leader role, monitor role, disseminator role,
entrepreneur role, disturbance handler role and resource allocator role.
However, remaining manager’s roles influence the external context, i.e.:
figurehead role, liaison role, spokesperson role and negotiator role. Two
last parts having influence external context, but they also influence the
internal context however, they were enumerated in the outside context,
because can afford fulfilling of these pa rts relatively bigger weightin the
face of the external than internal environment.


One of the most important manager’s roles is the leader’s role, which
influences a lot the internal and indirectly also external context of
functioning of the company. The lead is variously defined in literature of
the subject. The lead is both the process and the property. The process of
the lead consists in unconstrained guiding and co -coordinating of work
members of the organized group to reach group purposes. However , the munotes.in

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131 lead as the property is the set of personality features possessed by the ones
who are perceived as persons successfully applying such an interaction.
The lead can be defined as the ability to influence the group so that the
group can gain determined goals. This definition appears to defy whole
essence of the lead. Leader will be evaluated before everything for one’s
effectiveness in reaching intended purposes. This understanding of lead is
based on four pillars which are providing of the leader’s effi ciency:
 creating the vision of what an organization should become in future
and this vision should take into consideration the business of all parties
concerned,
 creating the strategy which takes into consideration significant chances
and threats in the en vironment and strong and weak sights of the
organization,
 creating the supporting coalition, whom participants are followers and
people committed to the realization of the vision and the strategy of
the company,
 communicating, convincing and inspiring part icipants to the
realization of the mission and the strategy of the organization.
Four above -mentioned pillars are distinguishing manager -leader from
ordinary manager -administrator. Manager -administrator is before
everything taking such action uphow: plann ing, budgeting (determining of
the budget), organizing and controlling. Plans do not have to and they
most often contain no visions in themselves. They are most often
extrapolation of the situation from the previous years. Similarly little
common to onesel f, the organizational structure and the supporting
coalition have. The organizational structure is determining principles of
the inferiority and the precedency in the organization and the supporting
coalition includes people supporting the vision and the s trategy proposed
by leader.
It is necessary to point out also here, that with the leader’s name is often
called aperson that has the ability to exert influence on other people and
win people and it doesnot matter if it is being determined by right of the
position occupied in the hierarchy of the organizational structure,
knowledge, interpersonal contacts whether and charisma. It means that a
leader does not have to be a person formally appointed to this role but of
course, the best effect is certainly givi ng connection of authority legal with
charisma power, because then formal (because of one’s place in the
organizational structure) the leader is the leader whom a crew would
choose if they had such a possibility. To shape the internal context of the
compan y for such a leader is most easily this way so that the best effects
were being reached. A role of the leader -manager in the face of the need to
modify the internal context of the company is important especially within
a period of economic transformations. In difficult periods, when
restructuring is being carried out the manager should by supporting
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132 order to impel them to put the suitable effort on to the realization of these
purposes.
Nowadays the managerial roles have widened, became more complicated,
active and creative. Managers, who want to administrate enterprises in an
appropriate way must be up to the mark, fulfill more and more functions
and play on many “stages”. They should be f lexible, be able to adapt
themselves to different situations and play many roles, change roles, adapt
them and even create the roles, because the internal and external contexts
of company’s functioning are constantly changing. Who is not able to
keep up wi th it, will lose the game called “management art.”
7.2 EFFECTIVE AND INEFFECTIVE MANAGERIAL
STYLES
Effective Managerial Styles
There are managers who are coaches, who are democratic, who are
dictatorial and those who are consensus builders. All styles com e with
positives and negatives, many managers employ a combination of all to
make progress. Ultimately, the managers that have the most successful
teams are the ones who help each individual member of the team to grow.
To manage the best way possible, you need to be strict but gentle and,
employees will probably feel good and happy in a medium where
inclusivity is a need. Balance in the work environment is imperative for
empowering employees from all background to feel certain about their
potential and acco mplish their best. The higher the self -esteem, the more
beneficial the employees are. People from different background can offer
variety of abilities and experiences, aptitudes and encounters that might be
of advantage to the organization and their work ex ecution. Although some
hybrid of aptitudes can be gainful with regards to helping each other, a
mixture of skills and abilities among the group likewise implies that
workers can gain from each other. By working nearby individuals of
various backgrounds, ex periences and working styles, creative ideas can
be conceived then discussed among each other and offering feedback and
proposals. Though one individual might be extraordinary at out of the box
thoughts, another individual may have the important experience to execute
it; so it is fundamental to play on every individual's skills, abilities and
work together within the group.
Simple definition of workplace would be ‘’a place where people work,
such as an office or factory’’ every industry or organizations fir st aim is to
benefit from their work and reach the purpose and targets they have built.
One of the key drive is to have the right people for achieving that desired
goals, workplace happiness and comfort have direct effect on achieving
any organizations goa ls, you can take the best out of people by making
them feel a pleasant working environment, secure and support from their
higher managements within the a workplace, all these will result in
increasing employees well -being and productivity. Keeping high mor ale in
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133 Management style is best portrayed as a strategy of leadership that is
utilized by supervisors. Management is the technique of working with and
via others to successfully acquire the goals o f the organization, through
efficient use of the available resources as management is a wide range
subject and there are so many researches, publication and articles in this
field, each one have different division and definition for the management
styles u sed.
At first, “ Visionary or imaginative style ’’ in which, this style is most
proper when an organization needs another heading. Its objective likely
moves individuals towards a new set of shared visions and goals.
Visionary leader focuses on where a group is going and doesn’t matter
how it gets there in other words the focus is on the destination, not the
road, allowing individuals to advance, explore and take risks.
Secondly, “ Coaching style ’’ in which this one -on-one style centres on
creating people, sh owing them how to improve their performance and
aligning their goals with organization goals.Coaching style works best
with employees who demonstrate activity and need more expert
advancement. However, backfire is expected if it goes towards
"micromanaging " which will cause losing self -confidence and morale for
the employee.
The third style is known as an “ Affiliative style ’’ which underlines the
significance of collaboration and makes group harmony by strengthening
people’s communication. It is specifical ly important when you have to
enhance the balance of the team, improve morale, and restore the broken
trust and communications in the organization. However, it has its
downsides, continuous positive feedback on the group performance might
lead to poor perf ormance to go uncorrected and persuade that
insignificance will be endured.
Another approach is a “ Democratic style ’’. A democratic manager is a
person who solves issues or makes changes with the aid of asking crew
members for their feedback, recommendati ons, and ideas. This leader can
be uncomfortable with making all of the decisions themselves. This
approach canbe catastrophic during crises, and in the times that quick and
urgent decisions are needed, also it’s time consuming and decision making
process takes longer time.
Furthermore, there is “ Pacesetting style ’’ where the leader sets high
standards for performance. He or she is obsessive about doing things
better and faster and asks the same from everyone, this style destroys work
environment, employee s will experience overwhelmed by managers needs
for excellence. Working guidelines might be clear for the manager,
however, they do not clarify them properly and expects people to know
what to do and how to thinks, it will lead to morale drop and failure
feeling among people. But it has shrouded advantage: quick acquiring of
the outcomes within the short time period, there will be a high -energy
group with the terrific performance in terms of conducting tasks as well as
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134 “Auto cratic style ’’ this is the style where the manager tells the employees
what to do. Consequences awaits them if they fail to fall in line,
employees are inspired generally via fear of discipline. The company has
precise, clear regulations that employees sho uld comply with. The higher
management has no interest in hearing feedbacks from the employees. All
things considered, in emergency circumstances, when urgent action is
required, it can be a successful approach.
Finally, there is “ Laissez -faire style ’’ that is the inverse of autocratic,
workers are permitted to settle most of the decisions, with management
giving direction when required, the manager for this situation is viewed as
an adviser instead of a leader. This style of management is mainstream in
new businesses and technology organizations, where the risk taking is
supported. It works well when a group of experts are working together and
they have the success skills to achieve the desired goals.
Note that what recognize every initiative style above aren’t the individual
attributes of the leader, yet rather the nature and requirements of the
individuals who are being driven.
Managers arrange and regulate the work by other individuals with the goal
that authoritative objectives can be refined, no ne managerial employee
work specifically on a job or assignment and have nobody answering to
them which is the feature differentiate managers from their employees yet
the main purpose of manager is making sure that the works and activities
are completed in the best way and as efficient as possible. Organizations
have three qualities in general; a purpose, made from individuals, and a
conscientious structure. A considerable number of the present organization
are organized to be more open, adaptable, and rece ptive to changes,
managers are critical to the firms, companies or organization for three
reasons. To begin with, organizations require their managerial aptitudes
and abilities in unclear, complex, and disordered circumstances. Second,
managers are basic t o complete things and finalizing the tasks and finally,
managers can affect employees’ efficiency and reliability; the way
workers are overseen can influence the organizations budgetary execution,
managerial potentials has been appeared to be essential in making
hierarchical esteem.
Managers should have the ability to perceive and use the qualities of
individual workers to properly pick up on their strength and weakness and
utilize those special qualities in a way that is helpful to theorganization.
No two workers are the same and people can be significantly more
compelling when their skills are utilized further towards their advantage.
Another tool for a good manger is the ability to change management styles
for depending on whom they are responsible for, t he best manager
perceive that employees do not react the same to the way he/she manages,
however, they can alter their management style as needs be to amplify
workplace satisfaction and, thus, increasing efficiency. For instance, some
workers respond bette r to harsh and criticism and under pressure working
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135 Choosing one style of management might be impossible as all of them
have advantages and disadvantages, any of them is best for certain
situation but if a manager has to choose one style, then situational or
adaptive leadership works best in most cases, you will get more from your
people if you are stern but understanding, keeping an open -door policy,
asking for feedbacks, and keeping all i nformed on what is going on inside
the company or organization. Most people prefer managers who are good
communicators and friendly, people tend to be recognized and respected,
engaging your employees in daily activity will result in moving towards a
conti nuous improvement, the productivity will increase, quality will
enhance, turnover ratio will decrease, and it will cause in reducing absence
from work, considering all above parameters you will see happiness
within the organization, people will work with p assion and loyalty as they
feel recognized and respected which in return the profitability of the
organization will be more and more.
Managers should have a clear vision about the goals to be achieved and
have passion for the organization along with the a bility to inspire trust
among the employees as well as making sure that everyone believes in the
organization visions and they are excited about it.
Current workplace requires different managing skills as the diversity
increases, the new generation workfor ce needs more attention due to
mixture of different culture, religion and background, people are reaching
high position at young ages which is acceptable as long as they eligible to
hold that responsibility , two different generation can be noticed nowadays
in which the first one is having years of experience but sometimes they
lack of technology skills or communication with new generation which are
very hard to manage, they are more demanding they expect high salaries
with least experience, more free time a nd distance working, following the
applied organizations policies is not their point of strength as they tend to
change things, suggesting new ideas and expecting to be implemented
quickly which is the main conflict between the two generation.
Not to forg et the role of female workers have increased during the last
decade, now women are given more chances and competing with mans in
a very high level, anyone can reach any position based on eligibility which
is accepted by majority of people regardless of age , religion, nationality,
gender etc.
Some concerns to be considered as the preferences based on cultural or
linguistic background that will result in un -unified workforce, the
organization will turn into a bunch of groups in which all works on their
own g roups’ interest. Organization should have strict policies against any
type of preferences and insist on unified language within the workplace.
Also religion has a strong impact on religious people behaviour and
efficiency, so it should be respected and we ll treated. the organization
should consider this subject carefully because it’s like double -edged sword
as if you praise it and respect people’s belief the productivity will
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136 and in t he other hand the organization might face problems even operating
in the area.
Ineffective Managerial Styles
Learning how to lead a team can be a case of trial and error, often
involving learning from past mistakes. There are many management styles
you may wish to follow, and there are even more to avoid.
Ineffective leadership styles can have detrimental effects on a business.
For example, poor leadership may result in unmotivated employees, can
lower the efficiency of the business and has the potential of being costly if
bad decisions are made.
A number of leadership styles that you may want to avoid, include
mushroom management, seagull management and autocratic styles. Have
youever experienced any of these management styles? What do you think
makes a goo d leader?
However, good leaders know that they are not perfect, but they should
avoid the following ineffective managerial styles:
Micro Managing
Helping employees is one thing, but it’s also important to know when to
take a stepback. Over -management leads to anunempowered team.
Anything Goes
The opposite of micro management is also problematic as well. By letting
everything fly, there is no order and it can lead to missing deadlines or low
expectations.
Autocratic
In many situations, having just one person making the decisions can lead
to employees carrying out projects that they disagree with or do not think
will work.
The Charge -Ahead General
Charging ahead on every new project usually comes with a key weakness:
a lack of patience. If managers continually get impatient with employees,
it affect trust and respect within the organisation.
Complete Self -Reliance
If a manager can’t trust others, then the work will pile up for that manager
until it becomes unbearable. Meanwhile, employees have a tough time
becoming independent in their roles.
Dictatorial
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137 Excessive Consistency
A manager with this leadership style has inflexible boundaries, and tends
to be overstrictwith employees.This can create resentment and lower
motivation .
Mushroom Management
Severe lack of communications between management and employees
leads to misunderstandings and confusion.
The Morale Buster
Criticism is important, bu t too much of it canhurt employee morale.
The Screamer
Too much expression of authority, or expressing it in unprofessional ways,
canlead to a lack of respect between employees and management.
There are other ways to articulate authorityand constructive cr iticisms.
Seagull Management
Managers only interact with employees when there is a problem – this
means employees never get praise or encouragement when it is needed.
Being a manager or business owner is challenging. Some days you might
feel as if you’re b eing pulled in a dozen different directions —and none of
them take you where you want to go! Everyone has leadership strengths
and weaknesses, and it can be tough to acknowledge your own
shortcomings.
During stressful times as a leader, stay self -aware so y ou don’t slip into
negative patterns of behavior. Micromanaging, instilling fear, or
disparaging your employees leads to a toxic and unproductive work
environment.
That’s why it’s crucial to be aware of these common —and some not -so-
common —bad management s tyles:
The Poor Communicator
Poor communicators have trouble clearly articulating instructions, goals,
and expectations, and they have trouble listening to and understanding
others’ points of view. They may fail to provide proper training on key
tasks, as suming that certain aspects of the job are “common knowledge”.
They often give partial or confusing instructions. And, when workers
share concerns, poor communicators may tune them out.
If you notice that your workers frequently fail to meet expectations, maybe
you have not provided clear instructions. Take a few minutes to
thoroughly review procedures to make sure you are all on the same page.
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138 necessary skills and truly understand th e procedures and protocols. Ask
for feedback and listen to what they have to say, as well, repeating back
comments in your own words to convey your understanding.
The Unfocused Manager
Another example of bad management styles is the unfocused manager who
muddles through each day without any sort of plan or direction.
Employees who work with unfocused managers tend to feel as if their own
work lacks meaning or purpose. Having a clear vision of your company’s
mission —and an understanding of what steps need to be taken to fulfill
that mission —can help you stay focused on the big picture in the midst of
the day -to-day grind. Take a few minutes each day to remind yourself of
your objectives, and share this with your employees regularly. Set simple
short -term and long -term goals and chart your progress to stay focused.
The Micromanager
Micromanagers show little faith in the talents and abilities of others. They
tend to be overly controlling and are likely to handle all company
decision -making. They may hover over employees excessively or they
may take over projects midstream, without giving workers a chance to
complete the task. Micromanaging is damaging to employee morale
because it makes workers feel powerless, ineffective and incapable.
If you think that you might have micromanaging tendencies, ask yourself
why you feel the need to handle everything yourself. Are you worried that
your employees will make mistakes that will hurt the business? Do you
feel as if no one can do the job as well as you? Challenge yourself to
overcome these ideas by taking a fresh look at your employees’ skills and
delegating certain tasks with a hands -off approach. Start with simple tasks
and work your way up to more complex projects. Focus more on re sults
and less on process by reminding yourself that there is usually more than
one right way to do something.
The Indecisive Manager
Do you have difficulty making hard decisions or sticking to a plan once
it’s formed? If you often find yourself wavering o n issues or changing
your mind to suit your current audience, you might find that your
employees are running in circles, too. There’s nothing wrong with
reassessing situations or changing your mind based on new information —
in fact, those are good executive attributes —but if you switch courses to
please others or to avoid facing a challenge, you may be damaging your
business and credibility as a leader.
One tip to help you avoid this bad management style: think carefully
before announcing decisions. Whenever possible, take the time to digest
all sides of an issue before stating your course of action. When you
inevitably do find it necessary to alter course, examine the reasons why
and share them with your employees. If the shift is based on logic and
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139 The Abusive Manager
Abusive managers lead by instilling fear and creating a hostile climate that
makes employees feel unappreciated and apathetic. This is the most
damaging of all bad manageme nt styles. Managers, who make
inappropriate remarks, belittle or demean employees, or lash out in anger
risk damaging their reputation and losing valuable employees. Abusive
leaders lack empathy and are rigid and unyielding. They see things in stark
terms and are often unforgiving of even minor mistakes or transgressions.
When dealing with a problem, they tend to focus on placing blame rather
than finding solutions. These negative, tyrannical behaviors can cripple an
organization by stifling creativity and teamwork.
Although everyone overreacts occasionally, if you find yourself losing
your temper often or engaging in these types of behaviors, it may be time
to seek professional help. There may be unresolved issues that make it
difficult for you to maintain emotional stability, which is essential in the
workplace. Look for a qualified therapist or find a professional
development course that focuses on “soft skills” to hel p you improve your
ability to work effectively with others.
Reduce Stress to Become a Better Leader
As a manager, you set the tone for the workplace atmosphere. If you are
calm and focused, your employees are more likely to be calm and focused.
If you’re f razzled and overwhelmed, your employees are likely to feel the
same.
Many bad management styles can be overcome by reducing daily stress.
Take regular breaks, eat well, and take time to connect with your
employees. Engaging in group activities —holiday part ies or summer
picnics, for example —orcelebrating small victories with a pizza party or
ice cream can go a long way in strengthening work relationships!
7.3 LET US SUM UP
The role of a Business Manager is to supervise and lead a company's
operations and emp loyees. They perform a range of tasks to ensure
company productivity and efficiency including implementing business
strategies, evaluating company performances, and supervising employees.
 The main responsibilities of a Business Manager are:
 Assess and iden tify new opportunities for growth in current and
prospective markets.
 Establish the company’s goals and objectives.
 Recruit and train new employees.
 Perform regular employee evaluations to determine areas of
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140  Design business strategies and plans to meet the company goals.
 Make sure that the company has sufficient resources such as
personnel, material, and equipment.
 Develop a comprehensive company budget and perform periodic
budget analyses.
 Ensure all company activities adhere to legal guid elines and policies.
 Assess overall company performance.
New research suggests that the most effective executives use a collection
of distinct leadership styles each in the right measure, at just the right
time. Such flexibility is tough to put into action , but it pays off in
performance. And better yet, it can be learned. The most effective
managerial styles are: Democratic, Coaching, Pacesetting, Authoritative,
Coercive, Laissez -Faire and Persuasive management styles.
Ineffective leadership styles can hav e detrimental effects on a business.
For example, poor leadership may result in unmotivated employees, can
lower the efficiency of the business and has the potential of being costly if
bad decisions are made. Some of the ineffective managerial styles are:
Micro Managing, Anything Goes, Autocratic, The Charge -Ahead General,
Complete Self -Reliance, Dictatorial, Excessive Consistency, Mushroom
Management, The Morale Buster, The Screamer and Seagull
Management.
7.4 EXERCISES
Q. 1. Explain the role and responsi bilities of a manager.
Q. 2. Discuss the e ffective and ineffective managerial styles with
reference to your own work sit uation.

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141 8
MANAGEMENT AND LEADERSHIP
Unit Structure
8.1 Management
8.2 Leadership
8.3 Di fference between Management and Leadership
8.4 Understanding Level 5 Leadership
8.5 Summary
8.1 MANAGEMENT
8.1.1 INTRODUCTION
The 21st century economy is a knowledge based and performance driven
econom y. A businessman drives his business with the help of
innovations and technology to transform it as per the customer
expectations. In a course of time, every business develops with
complexities. Beyond a level, managing alone becomes a difficult task
for a person. The need for management has increased tremendousl y.
The existence and application of management is not only essential for
growth and development but also it is essential for the survival of
business organizations. There are several types of groups. Every human
being has needs and desires. O rganizations understand and work in this
direction to provide better goods and services to the customers. These
needs and wants can be satisfied by working and living together in an
organized group of o rganizations.
The motive is to satisfy their economic and social needs by helping
organizations to achieve the common goals. They work in a controlled
and coordinated manner to achieve the goals. Management works in
this direction to carry out the operations e ffectively and e fficiently
towards the achievement of the goals of the o rganizations. Various
managerial skills are required at various levels of the organizational
hierarchy while managing an enterprise. Mana gement is needed in all
types and levels of o rganization.
8.1.2 MEANING
Management is an art of getting things done through people to achieve the
common goal of the o rganization. Management is must to achieve the
desired goals through group efforts. It is a social and universal
process. Management is an art of maximizing efficiency of groups
and putting their e fforts towards the predetermined goals of the
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142 The concept of management not only deals with the art of getting things
done through pe ople but also directing their efforts through utilization of
available resources towards the objective of the o rganization.
Management is a comprehensive term and covers planning, o rganizing,
directing, controlling and coordinating. Decision making is an important
component of management.
It is a systematic technique of extracting work from people. The work is
divided and responsibility is put through groups. It is to be ensured
by the manager that the people are working as per the rules and
expectations of the predetermined things. There are many functions of
management which help managers to extract the work from people in a
more systematic and e fficient wa y.
8.1.3 DEFINITION
There are many definitions contributed by many management thinkers.
Lets recall a few -
The American Management Association defined management as, “
The art of getting things done through other people.”
According to Peter F. Drucker “ A Multipurpose organ that manages a
business and manages managers and manages workers and works “.
According to F.W. Taylor “ Management is the art of knowing what you
want to do in the best and cheapest way “.
In the words of Henry Fayol - "To manage is to forecast and to plan, to
organize, to command, to co -ordinate and to control".
According to Harold Koontz “ Management is the art of getting things
done through and with formally o rganized groups.”
Mary Parker Follett defined management as the "art of getting things
done through people".
The definition given by Mary Parker Follett drew attent ion towards the
fundamental di fference between a manager and other employees. A
manager contributes his work by directing the people towards the goal
while the other people contribute by actually working. That's wh y, it is
said that management is an art of getting things done through people
towards the achievement of common goals.




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143 8.1.4 CONCEPTUAL FRAMEWORK OF MANAGEMENT

Fig. 8.1: Concept of
Management

Fig. 8.2: Framework of Management
In nutshell, it can be said that management is an art of managing
resources and science of building and maintaining knowledge.
Application of theories on o rganization is an important part of
management.
8.1.5 MANAGEMENT AS A SYSTEM

The system approach to management deals with the way of converting
inputs into outputs with the help of various management functions. The
system approach covers the policies, framework and strategies which
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144 the common goal. With the help of this diagram, we c an understand how
the management works as a system.

Fig. 8.3 System Approach to Management
8.1.6 FOUR DISTINGUISH ASPECTS OF MANAGEMENT
Management is an art. Management is also considered as a science as
well. Management as a science is a systematic body of knowledge.
Managers use analytical approaches to solve problems. Management
consists of various theories, models, theories, tools and techniques.
These things have been extensively used by the managers from time to
time to deal with the problems and their solutions. Management as a
science has four distinguishing aspects -
01. As a science, system orientation is used.
02. Use of scientific methods and procedures.
03. It is considered as an interdisciplinary team approach.
04. Various mode ls and techniques are put into use.
8.2 LEADERSHIP
Good leadership is the essence of an organization. The success and
failure of managers depends on their leadership qualities. To achieve
objectives, managers bring resources togethe r, develop strategies and
tactics, plan and control activities to achieve organizational goals. They
decide what is to be done and accordingly motivates and influences
subordinates to work. Finding solutions to the problems of the
subordinates is one of the tasks of the manager when he/she acts as a
leade r.
In an organization, wherever a person has subordinates, he may act as a
leade r. A person may be an effective manager but if he lacks leadership
skills, he/she will serve the o rganization as a manager only and will fail to
understand the problem of subordinates as a leade r. Being a good planner
and organized administrator cannot make a person a leade r. Organizations
need such people who possess managerial as well as leadership qualities.
In today ’s business world, most o rganizations prefer managers who also
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145 8.2.1 INTRODUCTION

Leadership development is an important issue in the field of
management. Due to complex o rganizational structure, fast changes,
internal imbalances, diversity in human nature and other reasons,
organizations are putting efforts to have a manager who must act as a
leade r. It is believed that leaders are made not born. Few believes,
leaders are born not made. The new concept advocates leaders are born
and also made.
8.2.2 MEANING
Leadership is an act of influencing people to achieve the goals of the
organizations. It is a process of influencing the behavior of people.
The relation between leader and followers is im portant. Leader is one
who influences and followers are the one who get influenced by the leade r.
The success of leadership depends upon the acceptance of followers.
One must have followers to be a leade r. Otherwise, a manager will be
called a manager only and he/she will not be acknowledged as a leade r.
A leader is directive, supportive, achievement oriented and participative
for his subordinates. A leader tries to influence the behavior of
followers to achieve desired goals. Leadership is a dynamic process. It
is basically a continuous process of influencing behavio r. It is an art
of persuading others to work towards defined goals. The process of
leadership also involves authority and responsibilit y.
8.2.3 DEFINITION
According to C.I. Bernard – ‘Leadership is the quality of behavior of the
individuals whereby they guide people or their activities in o rganized
efforts’.
In the words of Keith Davis , “Leadership is the process of encouraging
and helping others to work enthusiastically towards their objectives.
Leadership must extract cooperation and willingness of the individuals
and groups to attain the o rganizational objectives.”
According to Koontz and O’Donnell, “Leadership is the process of
influencing people so that they will strive willingly towards the
achievement of group goals.”
George R. Terry defined, “Leadership is a relationship in which one
person influences others to work together willingly on related tasks to
attain what the leader desires.”
According to Livingston – ‘Leadership is the ability to awaken the desire
to follow a common objective’.
According to Bernard Keys and Thomas – ‘Leadership is the process of
influencing and supporting others to work enthusiastically towards
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146 In the words of Keith Davis , “Leadership is the process of encouraging
and helping others to work enthusiastically towards their objectives.
Leadership must extract cooperation and willingness of the individuals
and groups to attain the o rganizational objectives.”
8.2.4 CONCEPTUAL FRA MEWORK



Fig.8.5 :
Leadership

Fig.8.5 : Leader and various roles8.2.5 KEY ELEMENTS OF
LEADERSHIP

Every group that attains its goals and performs well has a good leade r.
As it is mentioned earlier leaders are born and also made. A leader must
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147

Fig.8.6: Key Elements
01. Ability to Use Power
The first element of leadership is the ability to use power e ffectiv ely. In a
responsible manne r, it is expected that a leader must use his powe r. A
leader can exercise power on others. Using power diligently can affect
the behavior of the people in a positive way. The capacity to affect the
behavior of others by using power must be reasonable and e ffective.
02. Ability to Inspi re
The ability to inspire people at the workplace is one of the
fundamental elements of leadership. The leader must be able to
inspire people. There are many theories and principles of management.
A manager must be able to apply this knowledge on people in an
organization. He must have the ability to inspire people towards the
desired goal of the o rganization.
03. Ability to Influence
Leadership is an act of influencing people towards the common goal of
the o rganization. Through the art of influencing, a manager strives
willingly and enthusiastically towards the desired goals. It is the ability of
persuading people in an o rganization. The act of leadership involves other
people. By the degree of their willingness, they determined the status of
the manager as a leade r.
04. Ability to Behave
Harmonious work culture and relations are the key of a good
organization. This element concerns the style of a manager adopted in an
organization as a leade r. By understanding the importance of values,
status, powe r, pride and mone y, a leader can design and implement a
model of behaving in a proper way with his subordinates. This
will ultimately help a manager in creating a good atmospher e in
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148 05. Ability to Understand
Ability to understand people is a significant factor to run an o rganization
effectivel y. It is important for a leader to understand the fact that people
are motivated by di fferent forces at different times. A manager who
understands the behavior of subordinates is expected to use the strength
and nature of humans in a better wa y.
Leadership involves the application of certain values. Through the
process of leadership, leaders use non -coercive influence to inspi re and
motivate people to work towards the group goals and ultimately towards
the o rganizational goals.
8.3 DIFFERENCE BETWEEN MANAGEMENT AND
LEADERSHIP
How do we differentiate leadership and management? How do we
define management and leadership? Few years ago, entrepreneurs created
companies and they hired managers to manage them. Now, the concepts
are changing significantl y. Leadership and management overlap but they
are not the same.
People often mistake management and leadership as the same thing . But,
in essence and work, management and leadership are very different. It
can be said that management and leadership are mutually interdependent.
Leadership is a necessary part of good management. A manager has to act
as a leade r. There are many more other dimensions as well. Leadership in
management is an important component to every employee to excel.
Both management and leadership involve working with people,
influencing people to achieve common goals. Leadership is a style and
management is a syste m. There are many other points which can justify
the topics, their differences in a beautiful wa y. Let's have a look.


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149

Fig. 8.8: Components of Leadership
8.3.1 THE THREE TESTS THEO RY- MANAGER AND LEADER
Mr. Vineet Nayar is a founder and chairperson of Sampark Foundation.
He is a former CEO of HCL Technologies. A keynote speaker and an
author of a highly acclaimed management book. According to him, the
three tests are devised to help managers in analyzing and dec iding
whether they have shifted from managing people to leading people.
The Three Tests Theory -
01. Counting Values vs. Creating Values
02. Circles of Influence vs. Circles of Power
03. Leading People vs. Managing
People

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150 01. Counting Values vs. C reating Values
Nayar said that, “ Leading by example and leading by enabling people
are the hallmarks of action -based leadership.” Managers count value.
Leaders instead of counting values focus on creating values.
02. Ci rcles of Influence vs. Ci rcles of Power
He says, “The quickest way to figure out which of the two you’re doing is
to count the number of people outside your reporting hierarchy who
come to you for advice. The more that do, the more likely it is that you
are perceived to be a leade r.” Managers create a circle of power while
leaders create a circle of influence. Managers have subordinates and
leaders gain followers. He emphasized that one must identify what type
of people you have around.
It’s all about understanding circles of influence and circles of powe r.
03. Leading People vs. Managing People
Leadership is an activity of influencing people while management is an
art of getting things done. Managers divert the work of individuals
towards the common go al. A leader motivates individuals to work
towards common goals. One is managing people, the other is leading
people. It ’s not about power and control but inspiring and influencing
people.
8.3.2 POINT OF DIFFERENCE
As mentioned earlie r, people think management and leadership are the
same. In essence, they are di fferent. Leaders have followers, managers
have people who work for them. The following points can justify the
difference between management and leadership -
01. Di fference in Skills
02. Di fference in Vision
03. Di fference in Abilities
04. Di fference in Queries
05. Assembling vs. Creating
06. Managing People vs. Leading People
01. Diffe rence in Skills
A manager is a member of an organization who is basically involved in
carrying out the various managerial functions of the o rganization. A
manager is required to have certain managerial skills to involve the
people of the o rganization in work. Not all managers can possess
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151 A leader need not hold or have a managerial position in an organization.
A leader can be anyone. Leadership is a quality or we can say it is a skill.
A leader must have influencing skills to motivate his followers to work
towards the o rganizational goals. A manager acts as a leade r.
02. Diffe rence in Vision
Managers are good at taking work from people. They set out to achieve
organizational goals through the system. Budgeting, organizational
planning, producers, set of rules and regulations are some important
processes used by managers to achieve vision of the o rganization.
They generally carry the vision set by the system and work in that
direction.
Leaders set the pathways to excel in organizational growth. They
are considered visionar y. They see where their organization stands.
After analysis, they decide where they want to go with followers. They
decide the strategy to reach the goal. They are the ones who create their
own vision to achieve the vision of the o rganization.
03. Diffe rence in Abilities
Whatever a manager does, he/she does through decision making.
Managers have di fferent abilities to carry out the managerial functions of
the o rganization. Managers have the ability to be a leade r. Some
managers have poor leadership qualities. It makes employees follow their
instructions. They are compelled to do so because they are not inspired
by the management style.
Leader is someone who influences and inspires people to do work
willingl y. They are able to motivate, communicate and guide their
followers to work better towards the organizational goals. Not every
manager is able to be a good leade r. Leadership is a quality or we can say
it is an ability to inspire people.
04. Diffe rence in Queries
Managers are expected to carry out their plans effectivel y. They are
known for getting things done. Their work emphasizes on assessment
and analysis of plans. If the plans are not implemented properl y, they are
not required to analyze failures. Managers focus on how and when. As far
as the queries of subordinates are concerned, a manager maintains the
status quo.
A leader is the one who initiates work first. A leader expects that the
follower should follow their path. A leader asks what and why. If the
things are not in the interest of the team, they try to attempt to bring the
changes which are in favour of their team. They help their teammates in
solving their queries. They make sure that the followers in case of any
query should contact them first. This quality of supportiveness makes
them leaders.
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152 05. Assembling vs. C reating
Managers are responsible for assembling the work of the employees and
direction of their e fforts towards the common goal of the o rganization.
They basically work as per the plan and processes. They distribute, direct
and assemble the work from their subordinates.
Leaders believe in working with their employees. They believe in
creating a team rather than working in a group. They believe in taking the
failure on them and sharing success with their teammates. They create
opportunities, involve and work with followers.
06. Managing People vs. Leading People
Management function deals with the planning, o rganizing, directing
and controlling people in the organization. A manager basically deals
with managing work of the subordinates towards the common goal. He is
responsible for the implementation of the managerial functions in an
organization.
Leadership emerges as a result of their actions. They inspire, influence
and motivate their followers to work. A leader takes a lead in doing work
with his/her subordinates. He makes sure that he is the first who is
contributing in initiating any work. That ’s why a leader is known for
leading his team rather than managing.
Table 8.1: Diffe rences between a manager and a leader -
Point of
Difference Manager Leader
01. Managers create goals Leaders create vision
02. Managers may use common
approach Leaders are unique
03. Managers control risks Leaders take risks
04. Managers reply on proven
skills Leaders grow personally 05. Managers direct Leaders coach
06. Managers have subordinates Leaders have followers
07. Managers build system Leaders build
relationships
08. Managers focus on short term Leaders focus on long
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153

Fig. 8.10 Leader and Manager
8.3.3 TRAITS OF A MANAGER
The following are the important traits a manager must possesses -

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154 01. Visionary
A manager must possess this qualit y. He must be a visionary and should
be in a position to prepare strategic plans.
02. Di rection
He must be a good directo r. Giving orders and instructions is an
important task, a manager is needed to perform.
03. People Focused
A manager must be people centered. List ening to them , involving them in
work are some qualities and skills a manager is required to possess. He
must be people focused.
04. P rocess Management
Setting rules and regulations, procedures and strategies is something
an organization needs. A manager must possess the quality of
understanding, preparing and implementing the process.
8.3.4 TRAITS OF A LEADER
The following are the important traits a leader must possesses -

Fig. 8.12: Traits of a Leader 01. Inspi re
A leader must set an example for followers. He must be an inspiration for
others. They help their team in understanding their role in a la rger context.
02. Influence
Leader must act as an influence r. He must have the ability to influence
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Management and Leadership
155 03. Honest
A leader must act honestly and with integrit y. They help their followers in
setting some benchmarks in their caree r. They assure them that they
will walk with them in their problems in finding solutions.
04. Able
Thinking out of the box is one of the things leaders must do. He must
possess the ability to communication, understand. They challenge the
status quo.
8.3.5 CONCLUSION
Management and Leadership are like two sides of a coin. Many
complementary qualities are linked to each othe r. If you want to be a good
manage r, you must have leadership skills. If you want to be a good leade r,
you must have managerial skills.
8.4 UNDERS TANDING LEVEL 5 LEADERSHIP
The concept of level 5 Leadership is based on empirical studies and
is unique. The concept of Level 5 Leadership is developed by Business
Consultant, Jim Collins. In a Harvard Business Review Article, he wrote
about this model in 2001. Late r, he published his research in his popular
book, “Good to Great.”
In 1996, Jim Collins began research about what makes a company great.
He started by looking at 1,435 companies. After analysis, he selected 11
companies for this research. These 11 companies were headed by Level 5
leaders.
Collins found that the leaders of th ese companies have humilit y. They
don't run for glor y. They share credit for success and take the blame on
themselves for mistakes. The leaders are fearless when it comes to making
decisions.
Collin ’s have identified the following types of leaders and classified
them into five categories. His discovery was based on a hierarchy of
capabilities and traits discovered during his stud y.
Let’s have look on Collin ’s 5 Level Leadership Model - Level 1 - Highly
Capable Individual
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156 Level 3 - Competent Manager Level 4 - Effective Leader Level 5 - The
Executive

Fig. 8.13: Collin ’s Level 5 Leadership
01. Highly Capable Individual
A highly capable individual is the one who makes quality contributions
in his work. They are talented, enthusiastic, knowledgeable and
skilled. They carry e ffectiveness at the workplace. They are ready to
contribute to work. They are good at their jobs.
02. Contributing Team Member
Level 2 of leadership theory deals with the trait of contribution and
supportive trait. They are good at working with others. They use their
knowledge and skills to help the team to get success. Their work is
effective, productive and they try tomake every endeavor successful. They
are known for helping othe rs in groups. They are notably proficient in
helping people to reach the objectives of the group.
03. Competent Manager
A competent manager is one who is able to o rganize a group
effectively to achieve the desired goals. They can effectively oversee
people and resources.. They help others to achieve predetermined goals.
04. Effective Leader
Level 4 category is all about an e ffective leade r. Most top leaders fall into
this categor y. Here, leaders can steer their o rganizations to work towards
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157 organizations at a high level of performance. An effective leader with his
followers work towards the achievement of the vision and mission of the
organization.
05. The Execut ive
Level 5 of the leadership is the executive level. Here, a leader has all the
abilities which are needed to reach at this level. Not everyone comes
at this level of leadership. Leaders have a unique blend of humility and
they understand their company and employees well. Collins defines, “
The executive is a paradoxical combination of personal humility plus
professional will.
8.4.1 HOW TO ACHIEVE LEVEL 5 IN LEADERSHIP
The following points talk about the features of Level 5 leade r-
01. Level 5 leaders are humble people.
02. Level 5 leaders take responsibility for their team ’s mistakes.
03. Level 5 leaders are disciplined.
04. Level 5 leaders lead their work with passions.
05. Level 5 leaders depend on the people.
After knowing about the distinguish features of level 5 leadership,
here are some strategies that will help to grow a leader to grow
emotionally and professionally -
Ask for help Develop humility Help people to grow Develop discipline
Take responsibil ity Lead with passion Find the right people .
8.5 SUMMA RY
● The concept of management not only deals with the art of getting
things done through people but also directing their efforts through
utilization of available resources towards the objective of the
organization. Management is a comprehensive term and covers
planning, o rganizing, directing, controlling and coordinating. Decision
making is an important component of management.
● Leadership is an act of influencing people to achieve the goals
of the o rganizations. It is a process of influencing the behavior of
people. The relation between leader and followers is important. Leader
is one who influences and followers are the one who get influenced by
the leade r. The success of leadership depends upon the acceptance of
followers. One must have followers to be a leade r. Otherwise, a
manager will be called a manager only and he/she will not be
acknowledged as a leade r.
● People often mistake manag ement and leadership as the same thing.
But, in essence and work, management and leadership are very munotes.in

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158 different. It can be said that management and leadership are mutually
interdependent. Leadership is a necessary part of good management. A
manager has to act as a leade r. There are many more other dimensions as
well. Leadership in management is an important component to every
employee to excel.
● Jim Collin ’s has identified the following types of leaders and classified
them into five categori es. His discovery was based on a hierarchy of
capabilities and traits discovered during his stud y.
● Collin ’s 5 Level Leadership Model comprises Level 1 - Highly
Capable Individual, Level 2 - Contributing Team Membe r, Level 3 -
Competent Manage r, Level 4 - Effective Leader and Level 5 - The
Executive.
8.6 QUESTIONS
01. Define the term ‘Management’.
02. Define the term ‘Leadership;.
03. Distinguish between “Management” and “Leadership”.
04. Point out the di fference between a Manager and aLeade r.
05. “Every Manager is not a leader” Comment.
06. Describe the theory of Level 5 Leadership.
07. Explain the various levels of Level 5 Leadership


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159 9
STR ATEGIC MANAGEMENT

Unit Structu re
9.1 Introduction
9.2 Definition
9.3 Classes of Decisions
9.4 Levels of Decisions
9.5 Strategy
9.6 Role of Di fferent Strategies
9.7 Relevance of Strategic Management and its benefits
9.8 Strategic Management in India
9.9 Summary
9.1 INTRODUCTION
In the field of management, strategic management is a relatively new
discipline. This subject deals with defining the o rganization ’s strateg y.
This discipline of management is exciting and interesting and poses
various chall enges in front of the managers. The concept of strategic
management does not replace traditional functions like planning,
organizing, directing and controlling rather it integrates these functions
in formulating and implementing the strategies. The strategies will help
organizations to understand and take into account the external
environment and internal environment to set the goals and objectives.
Strategic management makes fundamental decisions about the future
direction of a firm. The purpose, resou rces and how it interacts with the
environment. It helps o rganizations in understanding every aspect with
respect to its employees, finances, production functions, customers,
suppliers and market. Strategic management is described as the
identification of the objective of the o rganization and the plans and
strategies to achieve that objective.
The subject deals with the long term performance of the
organization. The decisions are converted into action to achieve the
purpose of the busin ess enterprise. The strategies are formulated and
implemented to achieve the purpose. It also helps in studying the
management processes in an organization. It deals with determining the
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Fig 9.1: Vision and Strategy
Vision and strategies help o rganizations to work in a particular direction.
The concept of vision and strategy plays a fundamental role in the subject
of strategic management. Strategic management connects the dot
between vision, mi ssion, core values, focus areas, objectives, purpose,
target and goals.
In common parlance, strategic management is a process of planning,
monitoring, assessment and analysis of an o rganization to meet its
purpose, goals and objectives.
9.2 DEFINITION
Many contributors have defined the term ‘Strategic Management’ in
their words. Let's have a look -
According to Dess, Lumpkin & Taylor , “Strategic management
consists of the analysis, decisions, and actions an o rganization
undertakes in order to create and sustain competitive advantages.”
According to Fed R David, “Strategic management is a process of
formulating, implementing and evaluating cross -functional decisions that
enable an o rganization to achieve its objective”.
In the words of Alfred C handler , “Strategic management is concerned
with the determination of the basic long-term goals and the objectives
of an enterprise, and the adoption of courses of action and allocation of
resources necessary for carrying out these goals”
According to Pearce and Robinson, “Strategic management is the set of
decisions and actions resulting in the formulation and implementation
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161 Glueck and Jaunch defined strategic management as, “Strategic
manag ement is a stream of decisions and actions which lead to the
development of an e ffective strategy or strategies to help achieve
corporate objectives”.
According to Johnson and Sholes, “Strategic management includes
understanding the strategic position of an organization, making strategic
choices for the future and turning strategy into action.”
From the above definitions, we can say that strategic management deals
with the managerial decisions which are long term and strategic in
nature. It is a stream of d ecisions and action. It helps o rganizations in
formulating and implementing plans to achieve a company's objectives.

Fig.9.2: Concept of Strategic Management

Fig.9.3: Framework of Strategic Management
9.3 CLASSES OF DECISIONS
Strategic decisions are long term decisions. They are concerned with the
future planning and are long term in nature. In accordance with the
mission and vision of the o rganization, these decisions are taken. The
following are the classes of decisions -

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Fig. 9.4: C lasses of Decisions
01. Strategic Decisions and Routine Decisions
Strategic decisions represent the long term decisions taken for the
organization. Vision and strategies help organizations to work in a
particular direction. Strategic management decisions connect the dot
between vision, mission, core values, focus areas, objectives, purpose,
target and goals.
Routine decisions are those types of decisions which are taken frequently
and they are repetitive in nature. They are also known as structured
decision s.
02. P rogrammed Decisions and Non -programmed Decisions
Programmed decisions are also called routine decisions but these
decisions are more structured. These decisions are taken with the
purview of the policy of the business enterprise. Programmed decisions
deal with simple, common and frequently occurring problems that have
well-established and understood solutions.
Non-programmed decisions are not structured in nature. These decisions
deal with the exceptional or unusual problems. Most of the deci sions are
ill-structured, normal rules of decisions do not apply for such decisions.
03. Policy Decisions and Operating Decisions
In order to make an alignment with the purpose and goals of the
firms, the policy decisions have a significant role. These decisions help
in determining how we will act in the future. A policy is an ornament of
an organization. Policy decisions provide clear cut directions for taking
managerial and administrative decisions.
Operating decisions relate to the daily operations of an organization.
Normall y, middle level managers are responsible for taking these kinds of
decisions. The decision related to shift hours, time of payment of bonus
and wages, overtime allowances are few examples of operating decisions.
04. Organi zational Decisions and Personal Decisions
Decisions taken for effective functioning of an organization are known
as o rganizational decisions. The decision taken with respect to
organizational working and its implementation is a part of o rganizational
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163 Personal decisions do not reflect the functioning of an organization. The
decisions taken by an individual for his/her personal life are personal
decisions. It has no relation with respect to the working and functioning of
an organization.
05. Indivi dual Decisions and G roup Decisions
Individual decisions and personal decisions are often termed the same.
While, in reality they both share a di fferent relation with o rganization. A
person taking a personal decision is not a member of an organization
while a person taking an individual decision can be considered as a
member of an o rganization. He is delegated with authority to make
individual decisions.
Organization is a group of people who work together to achieve a
common goal. Groups are formed in an organization to facilitate work
in a better and efficient way. Group decisions represent those decisions
which are taken in a group.
9.4 LEVELS OF DECISIONS
There are three types or levels of strategy -

Fig. 9.5: Levels of Strategy


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164 01. Corporate S trategy
Corporate level strategy is designed by top level management. Strategy
which deals with vision, corporate goals, philosophy and culture is
corporate strateg y. The purpose is to identify the business areas in which
an organization can carry out its operations.

Fig.9.6: Corporate Level Strategies
02. Business Unit Strategy
This level of strategy is also known as a strategic business unit. It is
a fully functional and independent unit of a business that has its own
purpose and goal. Business unit strategy or strategic business unit is an
independent department of an o rganization. The unit manages products,
services, customers or a geographical area. They are allowed to plan and
implement strategies autonomousl y.






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165












Fig.9.7: Busines s Unit Strategy


Fig. 9.8: Types of Strategic Business Units

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166 03. Functional Strategy
Functional level strategy as the name suggests deals with the actions and
goals as far as their functions are concerned to various departments. The
functional level st rategy supports corporate level strategy and business
unit strateg y. It focuses on appointing specialized people for the
organization and combining activities within the functional areas.
It determines the daily operation of each and every department.
Exam ples are strategies for product diversification, marketing events,
market penetration, launching of a new product etc.

Fig.9.9: Functional Level Strategy
9.5 STR ATEGY

9.5.1 INTRODUCTION
The term ‘strategy’ denotes a plan of action. It is a plan of actio n to
achieve long term goals of the organization. Strategy defines the overall
vision, mission and working of the o rganization. It bridges the gap
between where we are and where we want to be. It deals with the
evaluation and determination of alternatives to select possible courses of
action.



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Fig.9.10: Strategic Plan Hiera rchy
9.5.2 DEFINITION

According to Kenichi Ohmae, “Strategy is the way in which a
corporation endeavors to di fferentiate itself positively from its
competitors, using its relative strengths to better satisfy customer needs.”
In the words of Prahlad , “Strategy is more than just fit and
allocation of resources. It is stretching and leveraging resources.”
According to Alfred P Chandler , “Strategy is the determination of the
basic long -term goals and objectives of an enterprise, and the adoption of
courses of action and the allocation of resources necessary for carrying
out these goals.”
In the opinion of Porter , “Strategy is about being di fferent. It means
deliberately c hoosing a di fferent set of activities to deliver a unique mix of
value.”
According to Mintzberg , “Strategy is a mediating force between the
organization and its environment: consistent patterns in streams of
organizational decisions to deal with the enviro nment.”
According to Mintzbe rg, a strategy could be of five types -
● Plan
● Pattern
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168 ● Position
● Perspective

9.5.3 CONCEPTUAL FRAMEWORK

Fig. 9. 11 Concept of Strategy

Fig.9. 12 Strategy
9.5.4 N ATURE OF STR ATEGY
The following points jus tify the nature of strategy in o rganizational and
common perspective -

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169 01. Strategy is a blend of internal and external factors.
02. It is universal in nature.
03. It keeps pace with the changing environment.
04. It is future oriented.
05. It determines the major course of action for an o rganization.
06. There are three levels of strategy - Corporate level, business unit
strategy and functional level strateg y.
07. It is a product of top management thinking.
08. It deals with th e long term decision making process.
09. It helps in resource mobilization.
10. It changes according to the business situations and is dynamic in
nature.
9.6 ROLE OF DIFFERENT STR ATEGIES
While discussing the role of strategies, it is important to understan d the
various components. The four major components are -

Fig.9.14 Components of Strategy and Strategic Management
According to many strategy Gurus, for the smooth functioning of any
business enterprise the most important strategies are likely to be in the
following areas -
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170 01. The role of corporate level strategy deals with vision, corporate goals,
philosophy and culture is corporate strateg y. The purpose is to identify the
business areas in which an o rganization can carry out its operations.
deals with vision, corporate goals, philosophy and culture is corporate
strateg y. The purpose is to identify the business areas in which an
organization can carry out its operations.
02. Strategic business unit role is to work independentl y. Each SBU has
its own sets of goals, purposes, competitors and strategies. The focus is
to determine the best ways of operating a particular business. The
strategic business unit works in accordance with the corporate level
strateg y.
03. Functional level strategy focuses on developing an action plan
for a particular department. This level of strategy plays a major role in
product diversification, marketing events, market penetration, launching of
a new product, research and development.
04. The role of finance strategy is very essential for any business operation.
The firm should carefully choose its financial strategy after taking
into consideration the merits and demerits of alternative financing
strategies.
05. The role of growth strategy is to provi de guidelines for the future
growth of the o rganization. These strategies help in forecasting the
quantity and speed of the growth required.
06. The strategy related to products and services helps in formulating a set
of strategies that can be appli ed across the firm for effective
performance. This strategy also focuses on customer satisfaction and
customer base development by offering good products and services.
07. The role of differentiation strategy deals with the uniqueness and
innovativenes s of the product and services offered by the organization. If
a firm is successful in di fferentiating products and services in front of its
customers against competitors, they can take the advantage of sizable
profit and remarkable growth.
9.7 RELE VANCE OF STR ATEGIC MANAGEMENT AND
ITS BENEFITS
Communicating strategies to all the key decision -making managers is an
essential element of successful strategic management. In recent years, the
relevance of strategic management for the managers and organizations
has grown substantiall y. For the long term growth of the
organization, the field of strategic management plays a vital role.


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171 The following points highlight the relevance of strategic management
and it also states the benefits of the stra tegic management -

Fig.9.15 Relevance of Strategic Management
01. Imp roves Performance
Strategic management helps o rganizations in framing better policies for
the future. Each and every unit of the o rganization works in accordance
with the mission and vi sion of the o rganization by setting their own
supportive goals and objectives. Ultimatel y, it contributes to improving
the performance of the o rganization.
02. Common Purpose and Sha red Goals
Strategies and policies are closely related terms. The purpose a nd shared
goals helps o rganizations to form a basis for operational goals and it
influences the other areas of management. The common purpose provides
a uniform direction to the groups of the o rganization to work togethe r.
03. Consistency in Decision -makin g
When the things are clear, it becomes easy for every member of the
organization to work in that direction. Strategic management provides
consistency in decision -making. The vision, mission and course is
already shared and this helps in getting the things done in time.
04. P rofit-making Organization
Strategic management helps organizations to perform well. Most
organizations recognize the role of strategies for the long term growth
and survival of the organization. The subject also helps in facilitat ing
the development of plans. It helps organizations in making themselves
a profit generating enterprise.
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172 05. Favorable Attitude
Another benefit of strategic management is that it enables managers to
prepare for the changing conditions of business. On the basis of
experience, failure and success, they develop an attitude of handling
each and every situation in an optimistic way. This develops a
favorable attitude for the o rganization regarding work and conditions.
06. Clear sense of Vision a nd Mission
On the basis of vision and mission, the strategic plans are formulated for
a long -term period. It helps organizations in communicating the vision.,
mission and goals to achieve the desired results of the plan. Thus,
strategic management helps in providing a clear sense of vision and
mission.
Managers involved in the strategic management process aim at translating
the vision and mission of the organization into an action. They focus
extensively on long -term goals. Strategic planning helps managers in
anticipating problems before they arise.
9.8 STR ATEGIC MANAGEMENT IN INDIA
As mentioned earlie r, the concept of strategic management does not
replace traditional functions like planning, organizing, directing and
controlling rather it integrates these functions in formulating and
implementing the strategies. The strategies will help o rganizations to
understand and take into account the external environment and internal
environment to set the goals and objectives.
Strategic management deals with the purpose, resources and how it
interacts with the environment. It helps organizations in understanding
every aspect with respect to its employees, finances, production
functions, customers, suppliers and market. It connects the dot between
vision, mission, core values, focus areas, objectives, purpose, ta rget and
goals.
Strategic management in India is gaining relevance due to the growing
economy of our countr y. Thanks to the Industrial policy of 1991, due
importance was given to Liberalization, priv atization and globalization.
The concept of LPG was introduced in front of all businesses and
industries to provide a good pace to economic growth. Due to LPG polic y,
strategic management has gained more relevance. Economic liberalization
increased the rel evance of strategic management as Indian companies
received greater autonomy in terms of decision -making.
Among Indian corporates, the subject of strategic management is gaining
more and more relevance. The following points reveal the nature and
benefits o f strategic management in India like how it is helping Indian
companies to work more e fficientl y. Let's have a look -
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Fig.9.16 Strategic Management in India
01. Mergers and Acquisitions
Scrapping of many acts have opened the avenues for many Indian
companies. Due to the growing econom y, the opportunities in India are
giving a pace to the economic growth and development. Dereservation
and delicensing of industries have created an opportunity for
business enterprises to go for mergers and acquisitions to gain more
market share and profit.
Without the knowledge of strategic management, a manager cannot
connect the dots between the vision and goals. This subject is proved to
have relevance in mergers and acquisitions of businesses.
02. Provide Di rection
India ’s economy right now is flooded with many unicorns and a
variety of start-ups. Good strategy helps new businesses to connect the
link between vision and objectives. Keeping an eye on the goal helps
organizations to work towards product development and customer
satisfaction.
03. Total Quality Management
The concept of total quality management deals with the overall working
and e fficiency of the organizations. Integration of total quality
management with strategic management is a fun damental requirement for
an organization to make both the concepts are implemented well. The
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174 operational efficienc y. Strategic management integrates the e fforts of
Indian corporates to impl ement the concept of TQM successfull y.
04. Envi ronment Analysis
Strategic management allows Indian companies to evaluate the business
environment - internally and externall y. It provides various tools like
SWO T, PESTLE, BCG Matrix to evaluate the current position of the
firms. The firms with the help of the tools of strategic management can
evaluate the market, planning and control measures to achieve the
desired results strategicall y.
05. Operations at Global Level
More and more industries are going global. Strategic management is
helping firms in keeping track of international changes and
developments. It is also helping companies to make such kinds of
strategies which will provide more competitive advantage to the firms
at global level.
06. Strat egic Alliances
With similar and complimenting objectives and goals, a firm can go
for strategic alliances. Apart from mergers and acquisitions, firms are
creating many ways to get in connection with other o rganizations to
increase their market share and earn more profit. It is also giving them
competitive advantage at international level as well.
9.9 SUMMA RY
● Strategic management makes fundamental decisions about the future
direction of a firm. The purpose, resources and how it interacts with
the environment. It helps o rganizations in understanding every aspect
with respect to its employees, finances, product ion functions,
customers, suppliers and market.
● There are programmed decisions, non-programmed decisions,
strategic decisions, policy decisions, functional decisions which helps
firms to categorize the classes as per the nature of the decision.
● There are three levels of decisions - corporate level decisions,
strategic business unit and functional level decisions.
● The term ‘Strategy’ is a plan of action to achieve long term
goals of the o rganization. Strategy defines the overall visio n,
mission and working of the o rganization. It bridges the gap between
where we are and where we want to be. It deals with the evaluation
and determination of alternatives to select possible courses of action.
● The strategic management process aims at translating the vision and
mission of the organization into an action. They focus extensively on
long-term goals. Strategic planning helps managers in anticipating
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175 ● India ’s economy right now is flooded with many unicorn s and a
variety of start -ups. Strategic management in India is gaining
relevance due to the growing economy of our countr y.
9.10 QUESTIONS
01. Define Strateg y. Explain the nature of strateg y.
02. What is Strategic Management? Describe the process and
components of strategic management.
03. Explain the various classes of decisions.
04. Write a note on strategic management in India.
05. Explain the three levels of decision.
06. Highlight the benefits associated with the concept of strategic
manag ement. How is it helping Indian corporations?
07. “India is home to the third la rgest number of start -ups globall y. But,
many fail due to lack of innovation.” Comment and support your
answer with the help of some examples.



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176 10
CHANGE MANAGEMENT
Unit Structu re
10.1 Introduction
10.2 Forces of Change
10.3 Why do people resists Change
10.4 Managing Resistance to Change
10.5 Process of Change Management
10.6 Models of Change Management
10.7 Summary
10.1 INTRODUCTION
10.1.1 ORGANI ZATIONAL CHANGE
Change is inevitable in nature. This is the common line used to introduce
the concept of change. Change is something which denotes a transition
from one state to anothe r. The fact of being replaced or changed creates
fear in the mind of the people. In an o rganization, translating change into
an action is challenging if it is not communicated properl y. People feel
change is a never ending process where responses to it will be in the form
of readjustment or readaptation.
It is introduced in an organization to make structural adjustments, project,
initiative or solution to improve the way of work. Planned change is
something an o rganization should introduce. Planned change reflects
proper understanding of the need for change and comm unication to the
people. The purpose is to change employee behavior towards change in a
positive way and to improve the ability of the organization to adapt
changes in the new environment. It is not that easy to introduce
change. People ressists due to many reasons. That’s why, management
of change is a concept which one must understand as far as the
organizational perspective is concerned.
Change is called the law of life. It is constant, inevitable and consistent.
In every walk of human life, we witness many changes. Uncertainty and
complex nature of businesses due to growing competition and customers
expectation, compelling organizations to introduce changes. Manage r’s
job is becoming di fficult and challenging. If change is introduced, it is a
tendency of a human being to resist change. They think of losing
something.
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177 10.1.2 CHANGE MANAGEMENT

Proper planning, communication and implementation is required to
introduce change. Change management is a systematic approach in
dealing w ith o rganizational change. Change management is a process
in which the changes are introduced in a planned and systematic way in an
organization. Dealing with the change involves the perspective of an
organization as well as an individual. Pre-define d models are proved to
be helpful in successfully implementing change in an o rganization.
When a manager plans for change, communicate the need of change to the
people, assure them about the positive aspects of change and implement
the same with the suppor t of the people. This process is called change
management. It is like managing those things which are inevitable,
consistent and create fear in the mind of the people. The concept of
change management plays a vital role in any o rganization. The task of
managing change is not an easy task.
Standardized methods, strategies and processes that are beneficial to
bring change are used by the managers for the successful implementation
of change in an o rganization. It is important to communicate the need for
change . Introducing change is a problem and communication of the need
for change and its successful implementation later on is the solution.
Change management deals with the people's side of the change.
10.1.3 CONCEPTUAL FRAMEWORK

The following diagrams help us to understand the conceptual
framework of Organizational Change and it ’s management.

Fig.10.1: Fo rces and Organizational Change

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178 Internal Fo rces - Internal forces are internal to the o rganization and are
controllable in nature.
External Forces - External forces are external to the organization and
are uncontrollable in nature.

Fig.10.1: Change Management
It is important to understand the three important elements of change
management -
● Change must be planned in advance.
● It must be comm unicated in advance.
● One must implement the change by involving needs.
One more important dimension is the need for change. Change is going
to give an impact to a few people or to the whole organization. If the
need of the change is communicated clearl y, the people will adopt it
freely. Though, there will be few who will resist change.
The topic of resistance of change is also discussed here in the later
headings for better understanding.
10.1.4 N ATURE OF CHANGE MANAGEMENT

To understand the concept of change management, it is important to know
the nature of change management. With the help of the diagram given
below, one can understand the nature of management of change -


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179

Fig.10.2: Natu re of Change Management
01. Natural
The concept of change is not ne w. It is natural and one has to adopt the
change. O rganizations not accepting change may face the problem of
growth and survival in the market.
02. Unavoidable
One cannot avoid change. It is inevitable in nature. It is not a series of
event s. Sometimes, it is planned for the betterment of organization and
sometimes, it is compelled. With the help of proper planning and control,
one can deal with change.
03. Internal and External Fo rces
The nature of change can be determined by the external and internal
forces. Internal forces are internal to the o rganization and are controllable
in nature. External forces are external to the o rganization and are
uncontrollable in nature.
04. Change generates Change
Change at one place will simultaneously dem and change at another place.
Changes in one system require changes in additional aspects. Change
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180 05. Continuum
Change is a continuum. Continuum means to keep on going. Something
which changes slowl y. Change is not a new thing and it keeps on
coming. The transition from one state to another helps o rganizations to
move and be flexible.
06. Adaptability
Adaptability of change means accepting change and implementing
the same for the betterment of organization. One has to plan and
communicate the change to people of the o rganization.
10.2 FORCES OF CHANGE
The need for bringing about a change arises due to external and internal
sources. O rganizations unde rgo changes for the betterment and survival.
The following are the major driving forces which provoke o rganization to
introduce and implement change -

Fig. 10.3: Fo rces of Change
01. Internal Fo rces
Internal forces are those forces which originate within the o rganization.
The internal forces are under the control of the o rganization. The internal
forces come from either individual problems or from the system. The
problem of communication is considered as the major cause of conflict
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181 There are many internal forces which br ing changes in an o rganization.
Some of the changes are depicted in a diagram above while along with
those points, the few can be discussed here.
● Change in work profile
● Change in leadership style
● Dynamic changes in system
● Safety and securit y of individual
● Influence of union
● New technology ’s implementation
● Change in employees profile
● Inadequate working conditions
● Change in management policy
● Personnel policy
02. External Fo rces
External forces originated outside the organization. The external
forces are beyond the control of the organization. The impact of these
forces is general. Many firms and o rganizations get a ffected due to these
forces. Change in legal framework, social factors, economical factors, ban
on technology a ffects the working and e fficiency of the firm.
There are many external forces which bring changes in an organization.
Some of the changes are depicted in a diagram above while along with
those points, the few can be discussed here.
● Changes in market
● Globalization and liberalization
● Changes in technology
● Economic factors
● Change in taste and fashion
● War
● Natural Calamities
● Political factors
● Change in legal framework
● Demographic factors
● Competiti on
10.3 WHY DO PEOPLE RESIST CHANGE?
Change is inevitable in nature. Although, people resist change. There
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182 of functio nal conflict. Some evidence of resistance to change is very
destructive. To further understand this topic, the reasons for resistance to
change are divided into two categories.

Fig.10.4: Why do People Resist Change
01. Organizational Resistance
The main reason people resist change is uncertainty of its impact. The
organizational structure itself also resists change. Every kind of change
involves resistance to change. Let's have a look on the reasons of
organizational resistance to change -

Fig.10.5: Re asons of Organizational Resistance

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183 i) Organizational Inertia
Making significant internal changes in the face of external changes is
known as o rganizational inertia. It depends upon the organization's ability
to make changes. People react when they fee l the changes are
occurring graduall y. On the basis of their past experience, they resist
change.
ii) System Relationships
It is one of the important features of change that one change brings
another change. It has a domino effect. Due to the changes which arise
in one subsystem lead to changes in other subsystems also. The change
in one department may bring the change in another department as well.
That's why o rganizations resist change.
iii) Lack of Clarity
When organizations lack clarity about the incidence and gravity of
change, they resist. The organizational structure itself also resists change.
Most changes have the power to disrupt things. Lack of clarity brings
more confusion and fear about the change.
iv) Sunk Costs and Vested Inte rest
Sunk costs are those costs which are used in investments. Investments in
fixed assets like machiner y, land and building are treated as sunk costs.
Any new change can create a disruption in his system. Vested interests of
an individual involve commitment of an indivi dual towards resources,
programmes, policies of the o rganization. O rganizations resist change
when the things related to abandonment arise.
v) Structural Rigidness
Organizations resist change due to structural rigidness also. Many
changes have the capacity to disrupt the structural rigidness. It a ffects the
power structure as well. Decentralization of authority can be often seen
as threats to the power of superiors when it comes to delegation and
granting power is concerned.
02. Individual Resistanc e
Individuals resist change due to multiple factors. The main factor which is
considered is dfera. They fear losing powe r, status, responsibilities and
post.


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184

Fig.10.6: Reasons of Individual Resistance
i) Fear
The most common reason for people re sisting change is fear. Fear of
the unknown, uncertainty and ambiguity are some of the reasons. Fear
of learning something new is also one of the reasons that compel people
to resist change.
ii) New Learning
New learning is also one of the reasons. New lea rning requires e ffort and
energy. For doing new work and tasks, one requires to learn new
methods, a new technology etc. learning something new can be exciting if
a person is willing to learn. Few people may find it unattractive to learn
and that's why the y resist change.
iii) Lack of Trust
The relation between management and labor is a sensitive one.
Labor if not communicated properly about the change may suspect the
reason for change and try to oppose the decision taken in favor of th e
change against the management. Lack of trust is also considered as one of
the reasons.
iv) Habits
Human beings are slaves of habit. Changes create challenges for the
people who believe in routine work and do not like the concept of
newness. Rapid changes in organizations can disturb the routine of their
work nature. Such people find resistance easy rather than accepting
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185 v) Lack of Information
Providing information about the change is a fundamental step of
introducing change. Lack of information about the change can create
fear of the unknown and it can disrupt the stable relationships and work
culture of the o rganizations.
10.4 MANAGING RESIS TANCE TO CHANGE
Managing resistance to change is a key to management of change.
Through the following ways, an o rganization can e ffectively manage
resistance of change -

Fig. 10.7: Management of Resistance of Change
01. Participation
Taking participation of employees in the change process can help
organizations and managers to implement change. It is observed that
individuals find it di fficult to resist a change in decision in which they
participate. A bring can involve all employees and those employees who
resist change. They can be brought into the decision process.
02. Communication
Communication is the best way to bring change. Communication is a
powerful force for change in ambiguous situations. Giving
communication about the need for change is an e ffective tool to facilitate
change. Communicating the process of change to employees helps them to
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186 03. Coe rcion
This can be taken as the last resort to implement change. After taking
into consideration all the measures, as a last tactic organization can apply
direct threats on the resisters to make them understand and accept the
change. Coe rcion in the form of demotion, transfe r, loss of promotion,
ineffective performance appraisal can be used against the resisto r.
04. Facilitation
Facilitating change is an easy process to make employees understand
the gravity of change. Providing empa thy to those employees who have
trouble in dealing with change is another important strateg y. Managing
change through facilitation is a kind of help extended to the person
who is facing trouble in accepting change.
05. Support
One of the important strateg ies for managing resistance to change is
providing support to the employees. The persons who are facing trouble
in accepting change, they must be provided proper and needed support
like skill training, knowledge about the work, counseling and therapy etc.
06. Co -optation
Co-optation means an act of co-opttating something in order to take over
something. The people who resist are invited to get their endorsement
regarding change. The technique of co -optation is less expensive and
simple. Through this method, a manager can seek the support of the
resistors in an o rganization. They are being tricked for undertaking
change. Manipulation and co -optation covert attempts to influence.
07. Education
Providing details to employees about the change and its need is one of
the best methods to manage resistance to change. Employees can be
educated about the change. Methods like discussions, memos, notices,
groups discussion can be used to educate the employees about the change
and its nature.
10.6 PROCESS OF CHANGE MANAGE MENT
Any change, big or small, has its effect on its employees and
organization. There is a close relationship between the organizational
change and the behavior of employees. Managing change is a process.
Change management is considered as a process of introducing, planning
and implementing change in an o rganization.


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Fig.10.8: Managing Organizational Change
The acceptance of change depends on the responsiveness and
understanding of the employees regarding change. Implementing and
managing change su ccessfully needs the involvement of the employees.
Through the process of change management, the employees can be
convinced about the benefits of accepting change in an o rganization. Let ’s
have a look -

Fig.10.9: P rocess of Change Management
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188 Step I - Determine the Type of Change
Determining the type of change is the first step in the process of change
management. O rganizational change can be transformational or adaptive,
reactive or proactive depending on nature. When the forces compelled
organization s to implement change without delay, the process of change
management will involve less days. Determining the type of change is
helpful in planning for the next steps to implement change successfull y.
Step II - Prepare the Organization for Change
In this phase, managers are focused on preparing the o rganization for
change. They make people understand the need and importance of change.
They educate, provide support and try to facilitate the change. They try to
involve people in the change process to avoid re sistance.
Step III - Plan for Change and Communication
Managers after preparing the organization for change, plan for change.
Managers are required to develop a plan to bring change systematically
in an o rganization. Managers take into consideration goals and strategies,
key indicators, components, scope of the change to make it more realistic
and well planned. A planned change is considered as half the ta rget
achieved.
Step IV - Implement the Change
After planning about the introduction of change, the fourth step of
the change management process deals with the implementation part. It
involves changes which need to be implemented in sync with
company’ structure, policies, plans, processes and system. The most
important consideration of this step is to analyze and seek support from
people. This step involves the implementation of change as per plan.
Managers must empower their subordinates to accept change and ensure
that they must participate and contribute in the change process.
Step V - Integrate the Change with Company Policies
Once the change is implemented, it is really important to integrate the
change with the company ’s policies. Reversion to the old situation or
status quo will disturb and disrupt the whole process. The change should
work in accordance with the company's policies. Integration is an
important process of change management.
The sixth and the most important step of change management is to review
the process and manage the change effectivel y. Every change introduced
by the management involves di fferent steps. Managers must thoroughly
understand the change process.

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189

Fig. 10.10: P rocess of Change Management
10.7 MODELS OF CHANGE MANAGEMENT
10.7.1 LEWIN’S CHANGE MANAGEMENT MODEL
Kurt Lewin has developed a change manage ment model popularly known
as Lewin ’s Change Management Model. The model represents a simple
and practical approach for understanding the change. This change model
involves three steps - Unfreezing, Changing and Refreezing. For better
understanding, the ex planation is given below -

Fig. 10. 11: Steps of Change Management Model
Unfreezing
Before implementing aay change, it must go through a process of
unfreezing. The objective is to create an awareness about the need and
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190 benefits associated with the change must also be communicated to each
employee.
Idea is to make them accept change. In this step, many people will
naturally change. Awareness and communication are the key elements of
this step.
Changing
In this step, the people are already aware that the change is going to
happen and is better for us. They will be ready to transition from one state
to another state. This step marks the implementation of change. The
people may fear or may fe el insecure about the change. In this step,
communication, support and time are the key elements in his step. People
begin to learn the new nature, behavior and ways of thinking.
Refreezing
The final stage of Lewin ’s model is refreezing. It can be referred to as the
stage of reinforcing the change and stabilizing the change. After
stabilizing, the new state can be solidified. In this stage, people have
accepted change and are accustomed to it. A manager must ensure that the
people should not revert back. The change must be integrated in such a
way that it should get in line with the company ’s polic y.
10.7.2 MCKINSEY’S 7 -S CHANGE MANAGEMENT MODEL
The McKinsey 7S Model was developed by Tom Peters and Robert
Waterman. This model is a powerful tool to analyze th e changes in the
internal circle of the o rganization. The model is based on seven key
elements. These seven key elements determine the o rganization ’s success.
For improving o rganizational behavior and analyzing futuristic change,
this model can be used.
As per this model, there are seven elements which determine the
organization ’s success. These elements must work together for e ffective
change management. This model is basically used to plan and implement
organizational changes. The McKinsey 7S model is divided into hard
and soft element categories.
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191

Fig. 10.12: McKinsey 7S Model
01. Strategy
Strategies are the roadmap by which an o rganization can gain competitive
advantage. It is an organization ’s plan for achieving and maintaining
competitive advantage o ver competitors. It deals with the long term.
02. Structu re
Structure means how the department and levels are divided? How the
groups and teams work towards the common goals. It means the reporting
pattern of the o rganization. Who will report whom?
03. Sys tem
To get the job done, procedures and processes are followed. To
complete the assigned task, a system is followed by the sta ff to get the
work done.
04. Sha red Values
The mission, vision, objectives and goals of the o rganization denotes the
shared values . Because it is shared by all in general. Every group works
towards the achievement of the desired goals of the o rganization.
05. Style
Style influences organizational performance. The way employees are
treated define the style of leadership. How the leade rship style influences
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192 06. Staff
Staff represents the human resources of the organization. The HR
policies and its impact comes under this element. The domain of this
element also cove rs knowledge management, training and development of
the sta ff in an o rganization.
07. Skill
The capabilities and competencies of the employees determine the
skills of the employees. Skill level of employees determine how well the
employees are able to accept change.
This model is used to identify which element company is in need to
realign to improve performance. The changes in the form of -
● Mergers and Acquisitions
● Restructuring
● Adoption of New Technology
● New Processes
● New Systems
● Leadership Style can be adopted by the o rganization to work more
effectivel y. This model is used for o rganizational design and
restructuring .
10.8 SUMMA RY
● Change is inevitable in nature. This is the common line used to
introduce the concept of change. Change is something which denotes
a transition from one state to anothe r. The fact of being replaced or
changed creates fear in the mind of th e people.
● Change management is a systematic approach in dealing with
organizational change.
Change management is a process in which the changes are introduced in
a planned and systematic way in an o rganization.
● Internal forces are those forces which originate within the
organization. The internal forces are under the control of the
organization. The internal forces come from either individual
problems or from the system. External forces originated outside the
organization. The external forces are beyond the control of the
organization. The impact of these forces is general. Many firms and
organizations get a ffected due to these forces.
● Resistance to change can be a source of functional conflict. Some
evidence of resistance to change is very destructive. To further
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193 into two categories - Organizational resistance and personal
resistance.
● Managing resistance to change is a key to management of
change. Through communication, participation, support and
coercion, the resistance of change can be managed.
● The acceptance of change depends on the responsiveness and
understanding of the employees regarding change. Implementing and
managing change successfully needs the involvement of the
employees. Through the process of change management, the
employees can be convinced about the benefi ts of accepting change in
an organization.
10.9 QUESTIONS
01. What is meant by organizational change? Why is change
considered as inevitable in nature?
02. What are the major external and internal forces for change in
organization?
03. “People resist change and it's a completely normal part of the process”
Comment.
04. How can resistance to change be prevented and managed? Explain its
various techniques or measures.
05. Discuss various models of change.
06. Describe the process of ch ange management with the help of
diagrams.
07. Write a note on Lewins’ change management model.


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194 11
TOTAL QUALITY MANAGEMENT
Unit Structu re
11.1 Introduction
11.2 Concept of Quality and Quality Management
11.3 Concept of Total Quality Management (TQM)
11.4 TQM Framework
11.5 TQM Principles
11.6 TQM Tools and Techniques
11.7 Summary
11.1 INTRODUCTION
Total Quality Management is a new approach to management. It
originated in the 1950's in Japan. The concept of TQM has now gained
popularity all over the world due to its importance. As the name suggests,
it basically deals with the continuous improvement in an organization. It
is both philosophy and a set of guiding principles to help o rganizations to
continuously improve. This approach is for customer oriented
organizations. The empl oyees are expected to produce quality products
and provide quality services. This approach is centered around the needs
of the customers.


Fig. 11.1: Qualit y, Quality Management and Total Quality
Management
For better understanding the concept of Total Quality Management
(TQM), let us first understand the concept of quality and quality
management -
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195 11.2 CONCEPT OF QUALITY
The word ‘Quality’ is often misunderstood and popularly used. The
concept has shifted from quality to quality circle, from quality circle to
quality control, from quality control to quality assurance, from quality
assurance to quality management and from quality management to noq
total quality management. It has always been the most exploited word.

Fig. 11.2: Concepts o f Quality
Quality means a degree of excellence a product or service provides.
Quality is considered as a measure of the achievements and e fficiency of
the o rganization. The quality is measured in terms of customer
satisfaction, product quality and service deliver y. Quality denotes that the
organization is working beyond or above the level of minimum
standards. It shows the level of commitment of an organization in
whatever activities they are undertaking, ensuring that the level of
excellence is always maintained at all levels by the managers and
employees.
Quality is considered as excellence but it lacks measurabilit y. Some
viewed the concept of quality as value. The value concept of quality
deals with the performance and features of the products. How useful is it?
Sometimes, quality is perceived as conforming to the requirements. This
concept is technical in nature and deals with the specifications and
functions of the products. Quality is also called zero error polic y.

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196 Quality is considered as a parameter which decides the performance of
the product. Product or service is inferior or superior is determined by
the qualit y. It helps companies to differentiate their products from their
competitors as far as product or service s are concerned. In every
business, quality plays an important role. It has also proved to be
helpful in surviving the cut -throat competition. The reason why the
company is gaining more and more customers and market share is because
of qualit y.
The quality is defined in many ways, let's have a look -
W. Edwards Deming defines it as “A predictable degree of uniformity
and dependability at low cost and suited to market”.
According to Gilmore , “Quality is the degree to which a specific product
satisfies the wants of a specific consumer”.
Crosby defines quality as the means to conform to standards,
specifications or requirements.
Joseph M Juran defines “Quality is fitness for use or purpose”.
Bill Conway defines quality as “Development, manufactu re,
administration and distribution of consistently low cost and products and
services that customers need and want”.
11.2.1 QUALITY MANAGEMENT
The concept of quality management includes quality planning and quality
control. Quality planning refers to the process of knowing the
specifications and requirements of the customers. While, quality control
deals with the inconsistency of the action with the planning by taking
corrective actions.
Thus, quality management refers to all the functions which deal with
designing and providing quality products and services to fulfill the needs
of the customers. The core concept of quality management includes
quality planning, controlling, assurance and improvement. The scope of
quality management is not confined to inspec tion. The factors which
effects quality management are -
● Contribution of management
● Involvement of employees
● Support from suppliers
● Customer satisfaction
● Efficient production
● Effective planning and control
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197 Quality management ensures that the organization is working efficiently
and as per the expectations and requirements of the customers. It also
ensures that the products and services are consistent as far as their
performance is concerned. The four major components of quality
management covers all the fundamental functions of an o rganization in
terms of qualit y. The approach of quality management in any
organization should be based on the principles of relationship
management, effective decision -making, e fficient leadership, customer
focused and engagement of people of the o rganization.
11.3 TOTAL QUALITY MANAGEMENT
Initiall y, the concept of total quality management originated for the
manufacturing sector but it can be applied to all o rganizations. The
concept of total quality management was originally developed jointly by
W. Edwards deming, A.V. Feigenbaum and Joseph Juran. The concept of
total quality management involves every employee in the o rganization.
Total quality management is a philosoph y. It is not a technique. It states
that every employee should work towards the improvement of the
organization. To ensure a continuous success, the employees should
contribute in improving the work culture, work e fficienc y, services,
systems and processes. It is m ainly concerned with continuous
improvements in all the areas of o rganization. The approach of total
quality management is a never ending process.
The term consists three words -

Fig.11.3: Total, Quality and Management
Total - Every employee of the o rganization is responsible for maintaining
qualit y.Quality - Degree of excellence of the product or service and
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198 Management - art of getting things done with the help of plann ing,
organizing, directing and controlling.

Fig.11.4: Framework of TQM
The concept of total quality management is cross functional in nature and
involves the entire o rganization. It is a long term activity which ensures
the operational e fficiency of the organization. It is a never ending push to
improve. It means o rganizations will work towards continuous
improvement. It also lays emphasis on customers' expectations. The
main objective of total quality management is continuous
improvement. The approa ch covers all the rules, regulations,
guidelines and principles that contribute in improving the
efficiency and performance of the o rganization.
To satisfy the expectations and needs of the customers, the approach
continuously works. It integrates all the management techniques to
achieve the objectives of qualit y. The process of quality planning, control,
assurance and improvement requires a continuous improvement between
the customers and the o rganization. Defining the quality attributes on
the basis of customer needs and defining how to measure each attribute
are the important steps of quality planning, control and improvement.



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199

Fig.11.5: Conceptual Framework and Elements of TQM
The concept of total quality management is b ased on total system
approach and involves the involvement of top level management. It is an
integral part of the strategic decision making of the management. Infact,
it involves the involvement of all levels of management. It is a
consistent effort taken by all the employees of the organization. In all
aspects of the business, a company must set and specify the quality
standards.
11.4 TQM FRAMEWORK
The concept of total quality management has evolved over a period of
time. Management Gurus like Juran, Deming, Shewhart, Crosby and
many more have contributed their e fforts towards the development of the
subject area of total quality management. How the framework of total
quality management works can be understood with the help of the
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200

Fig.11.6: Framework of TQM
Many quality Gurus have contributed their knowledge and understanding
towards the subject of total quality management. The whole concept is
focused towards customers through continuous improvement. Principles
and p ractices of TQM are directed towards the development of a
concept which is continuously working for the improvement of quality of
the o rganization.
On the basis of factors of people and their relationship in terms of
customer satisfaction, leadership, involvement and commitment of
employees, partnership with suppliers, relation with the various
stakeholders helps to determine the quality planning. After preparation of
quality planning, the managers concentrate on its implementation and
contr ol aspects.
The fundamental thing in the whole process is -
● Culture of the o rganization
● Communication flow and
● Commitment of people
The performance is measured to evaluate the impact of planning. In the
direction of the set goals, it is also observed that the products and
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201 are some important parameters which helps o rganizations to evaluate the
benefits of TQM.
The framework of TQM is determined by the way it is perceived and
managed by top level management. Only a committed top management
can inculcate the culture of continuous improvement. The main focus
will be on consumers needs, expectations and requirements.
Involvement of employees can also be ensured by instilling the feeling
of quality consciousness in them. Performance measures act as
motivators. It helps o rganizations to know about their path and direction.
11.5 TQM PRINCIPLES
Quality is the main parameter for every o rganization. There are many
principles of total quality management directing organizations to move
towards business excellence. When the principles are implemented
togethe r, it helps the o rganization to work towards the development of
quality aspects at all levels covering the whole organization. The
following are the principles -

Fig.11.7: Principles of TQM
01. Focus on Customer
The quality of the products and services is determined by the
custome r. Customer feedback plays an important role no matter what
an organization does? In the form of customer return ratio, reviews,
feedback, surveys, an o rganization can work on this principle.

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202 02. Involvement of Employees
The essence of the organization is people. At all levels of management,
the involvement of employees are needed to implement the system of
TQM. Their abilities and skills at the fullest can be used for the
organization ’s benefit. They must be empowered and feel motivated to
involve themselves in work.
03. Continuous Imp rovement
This principle is the essence of TQM. preparing plans and implementing
policies for the quality aspects of the o rganization will instill a
culture of continuous improvement among employees. It also
encourages employees to learn the system of quality at all levels.
04. Integrated System
An organization should follow an integrated system to manage the work
of various units and departments. Integrated systems allow for e ffective
total quality management. The work of every department and unit must be
integrated to achieve the quality objectives of the o rganization.
05. Strategic Approach
Strategic plan helps organizations to outline their work in accordance
with the vision and mission. How an organization intends to achieve the
objecti ve and goals of the business is an essence of this principle.
Strategic and systematic approach for an organization easily facilitates
working towards the business goals by keeping quality as the core
component.
06. Facts based Decision -making
Analyzing and checking data to ensure its reliability is an important part
of TQM. Based on the available information, the analysis of data leads to
better decisions. On the basis of sales data, revenue, market share,
customer retention rates, factual base d decision making ensures e ffective
administration.
07. Communication
Effective communication ensures that the goals and objectives are
conveyed properly to the employees. A good communication system is
a key to better management. It is essential when an o rganization is
implementing changes and policies for the improvement of the system.
Reasons behind the change must be communicated in advance to facilitate
the better flow of work.
08. P rocess Cente red
The system of total quality management should be process centered.
Fault in process is the main cause of all the problems. Effective planning,
monitoring and control of the system ensures the maintenance and
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203 09. Leadership
In achieving the organizational objectives, leadership plays an important
role. Leaders influence people to work towards the common interest of
the o rganization. Leaders must create and maintain the quality aspects in
their mind while planning and implementing work.
11.6 TQM TOOLS AND TECHNIQUES

A quality -focused environment is the key indicator of qualit y. Customer
satisfaction by continuous improvement of products ,services,
processes and organization sustain the TQM movement in the compan y.

The following tools and techniques enable organizations to adopt and
maintain the system of
TQM -


Fig.11.8: TQM Tools and Techniques 01. Benchmarking
Identifying the internal opportunities for improvement is known as
benchmarking. Benchmarking involves the measurement and comparison
of product and services with other companies to identify the best in
class. It is an organized search for best practices by taking into
consideration time, quality and cost. During this exercise, the company
compares its performance against the performance of the other
companies. The information is an important parameter in benchmarking.
There are various types of benchmarking. munotes.in