Table of Contents

Question no. 1 ............................................................................................................................................... 1

a) List and explain the four Basic Functions of Management ............................................................... 1
Answer : ................................................................................................................................................ 1
b) List and explain the 3 level of managers in organization .................................................................. 3
Answer : ................................................................................................................................................ 3
Question No.2 ............................................................................................................................................... 5
a) What is decision making? Explain 3 types of decision making ........................................................ 5
Answer : ................................................................................................................................................ 5
b) List and explain the steps in the decision process. ............................................................................ 7
Answer : ................................................................................................................................................ 7
Question No. 4 .............................................................................................................................................. 9
a) Explain the following terms: ............................................................................................................. 9
- Chain of Command ........................................................................................................................... 9
- Authority ........................................................................................................................................... 9
Answer : ................................................................................................................................................ 9
b) List and explain 4 common forms of organizational structure........................................................ 10
Answer : .............................................................................................................................................. 10
Question No. 5 ............................................................................................................................................ 12
a) What is leadership? ......................................................................................................................... 12
Answer: ............................................................................................................................................... 12
b) Explain the difference between leaders and managers ................................................................... 12
Answer : .............................................................................................................................................. 12
c) Explain any five competencies required of a leader. ...................................................................... 14
Answer : .............................................................................................................................................. 14
Reference .................................................................................................................................................... 16
Question no. 1

a) List and explain the four Basic Functions of Management

Answer :

Four Basic Function of Management :

- Planning
- Organizing
- Leading
- Controlling

1) Planning
Planning is the process used by managers to identify and select proper goals and courses of action for
an organization.
3 steps to good planning :
1) Which goals should be persued ?
2) How should the goal be attained ?
3) How should resources be allocated ?
The planning function determines how effective and efficient the organization is and regulates the
strategy of the organization.

2) Organizing
- In organizing, managers create the structure of working relationships between organizational
members that best allows them to work together and realize goals.
- Managers will group people into departments according to the tasks performed. Managers will
also lay out lines of authority and responsibility for members.
- An organizational structure is the outcome of organizing. This structure coordinates and inspires
employees so that the work together to achieve goals.

3) Leading
- In leading, managers determine direction, state a clear vision for employees to follow and help
employees understand the role they play in achieving goals.
- Leadership involves a manager using power, influence, vision, persuasion and communication
skills.
- The outcome of the leading function is a high level of motivation and commitment from
employees to the organization.

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4) Controlling
- In controlling, managers appraise how well the organization is achieving its goals and takes
corrective action to improve performance.
- Managers will monitor individuals, departments and the organization to determine if anticipated
performance has been reached. Managers will also take action to increase performance as
required.
- The outcome of the controlling function is the precise dimension of performance and regulation of
efficiency and effectiveness.

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 b) List and explain the 3 level of managers in organization

Answer :

The 3 level of managers in organization :

a) Top level / administrative level

b) Middle level of management
c) Lower level of management

1) Top level / administrative level

- It consists of board of directors, chief executive or managing director. The top management is the
eventual source of authority and it manages goals and policies for an enterprise. It dedicates more
time on planning and coordinating functions.
The role of the top management can be summarized as follows :
a) Top management puts down the objectives and board policies of the enterprise.
b) It issues required instructions for preparation of department budgets, procedures, schedules
etc.
c) It prepares strategic plans and policies for the enterprise.
d) It employs the executive for middle level.
e) It controls and coordinates the activities of all the departments.
f) It is also responsible for maintaining a contact with the outside world.
g) It provides supervision and direction.
h) The top management is also responsible towards the shareholders for the performance of the
enterprise.

2) Middle level of management

- The branch managers and departmental managers establish middle level. They are responsible to
the top management for the running of their department. They devote more time to organizational
and directional functions. In small organization, there is only one layer of middle level of
management but in big enterprises, there may be senior and junior middle level management.
Their role can be highlighted as :
a) They execute the plan of the organization in accordance with the policies and directives of the
top management.
b) They make plans for the sub-units of the organization.
c) They participate in employment and training of lower level management.
d) They understand and explain policies from top level management to lower level.
e) They are responsible for coordinating the activities within the division or department.
f) It also sends important reports and other important data to top level management.
g) They assess performance of junior managers.
h) They are also responsible for inspiring lower level managers towards better performance.

3) Lower level of management

- Lower level is also known as supervisory / operative level of management. It consists of
supervisors, foreman, section officers, superintendent etc. according to R.C.Davis, “ supervisory
management refers to those executives whose work has to be largely with personal oversight and
direction of operative employees “. In other words, they are concerned with direction and
controlling function of management.
Their activities include :
a) Assigning of jobs and tasks to various workers.

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b) They guide and instruct workers for day to day activities.
c) They are responsible for the quality as well as quantity of production.
d) They are also entrusted with the responsibility of maintaining good relation in organization.
e) They communicate workers problems, suggestions and recommendatory appeals etc to the
higher level and higher level goals and objectives to the workers.
f) They help to solve the grievances of the workers.
g) They supervise and guide the sub-ordinates.
h) They are responsible for providing training to the workers.
i) They arrange necessary materials, machines, tools etc for getting the things done.
j) They prepare periodical reports about the performance of the workers.
k) They ensure discipline in the enterprise.
l) They motivate workers.
m) They are the image builders of the enterprise because they are in direct contact with the
workers.

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Question No.2

a) What is decision making? Explain 3 types of decision making

Answer :

The act of choosing one alternative from among a set of alternatives.

The process of deciding about something important,especially in a group of people or in an organization.
According to Harold Knootz, “Decision making is defined as the selection of a course of action among several
alternatives; it is the care of planning”.
According to Peter F.Drucker,a decision is a judgement. It is a choice between alternatives. It is rarely a choice
between right and wrong. It is a best choice between “almost right” and “probably wrong”.

3 types of decision making :

a) Programmed and Non-Programmed Decisions:

-Programmed decisions are normally monotonous in nature.
-Easiest to make.
-Usually these decisions are taken in consultation with the present policy,rule or procedure.
-Ex: making purchase orders, sanctioning of different types of leaves, increments in salary etc.

Non-Programmed
-Non-Programmed decisions are different in that they are non-routine in nature.
-Ex: Issues related conduct a serious industrial relations problem, declining market share, increasing
competition etc.
-The key may widely differ in the case of non-programmed decisions.
-The efficiency of the manager lies in handling exceptional situations.

b) Operational and strategic decisions:

-Operational or Tactical decisions relate to the present.
-The main purpose is to achieve high degree of efficiency in the company’s ongoing operations.
-Ex: Better working conditions,effective supervision, better preservation of the equipment etc.
-The focus in the operational decisions is on the short-run.

Srategic Decisions
-Expanding the scale of operation, entering new markets, changing the product mix, everchanging the
manufacturing place from one place to other etc. Are strategic in nature.
-Such decision will have far effect on the organization.
-Strategic decisions require general deliberations and massive resources and are taken by top level
managers.
-It is on the long-run in the case of strategic decisions.

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c) Organizational and Personal Decision:
-Decisions taken by managers in the normal course of business in their capacity as managers relating to the
organizational issues are organizational decisions.
-Ex: Decisions regarding introducing a new encouragement system, relocating an employee, reallocation
etc. Are taken by managers to achieve certain objectives.

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 b) List and explain the steps in the decision process.

Answer :

Steps in the decision process:

-Identify the decision

-Gather relevant information

-Identify the alternatives

-Weigh the evidence

-Choose among alternatives

-Take action

-Review your decision & its consequences

Step 1: Identify the decision

You realize that you need to make a decision. Try to clearly define the nature of the decision you must make.
This first step is very important.

Step 2: Gather relevant information

Collect some pertinent information before you make your decision: what information is needed, the best
sources of information, and how to get it. This step involves both internal and external “work.” Some
information is internal: you’ll seek it through a process of self-assessment. Other information is external:
you’ll find it online, in books, from other people, and from other sources.

Step 3: Identify the alternatives

As you collect information, you will probably identify several possible paths of action, or alternatives. You can
also use your imagination and additional information to construct new alternatives. In this step, you will list all
possible and desirable alternatives.

Step 4: Weigh the evidence

Draw on your information and emotions to imagine what it would be like if you carried out each of the
alternatives to the end. Evaluate whether the need identified in Step 1 would be met or resolved through the
use of each alternative. As you go through this difficult internal process, you’ll begin to favor certain

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alternatives: those that seem to have a higher potential for reaching your goal. Finally, place the alternatives in
a priority order, based upon your own value system.

Step 5: Choose among alternatives

Once you have weighed all the evidence, you are ready to select the alternative that seems to be best one for
you. You may even choose a combination of alternatives. Your choice in Step 5 may very likely be the same or
similar to the alternative you placed at the top of your list at the end of Step 4.

Step 6: Take action

You’re now ready to take some positive action by beginning to implement the alternative you chose in Step 5.

Step 7: Review your decision & its consequences

In this final step, consider the results of your decision and evaluate whether or not it has resolved the need you
identified in Step 1. If the decision has not met the identified need, you may want to repeat certain steps of the
process to make a new decision. For example, you might want to gather more detailed or somewhat different
information or explore additional alternatives.

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Question No. 4

a) Explain the following terms:

- Chain of Command
- Authority

Answer :

Chain of Command
The chain of command is usually showed on an organizational chart, which identifies the superior and subordinate
relationships in the organizational structure.According to classical organization theory the organizational chart allow
one to imagine the lines of authority an communication within an organizational structure and ensures clear
assignment of duties and responsibilities.Each subordinate reports to one and only one superior.

Authority
Authority is defined as the right to give orders,supervise the work of others & make positive decision. It is lined
with the managerial position to give orders & expect to follow the orders. In olden days, it was the basic part that
made the organizations efficiently working. The authority was delegated from top to bottom of the organizational
hierarchy. Every manager controlled some type of Authority according to his designated position. It is related to a
specific position a person holds and his personal characteristics are ignored against his authority, even if a position
becomes available in the organization, but still it remains committed to that position.

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 b) List and explain 4 common forms of organizational structure.

Answer :

Four common forms of organizational structure :

a) Functional
b) Divisional
c) Matrix
d) Flatarchy

1. Functional

Also normally called a bureaucratic organizational structure, the functional structure divides the company based on
specialty. This is your traditional business with a sales department, marketing department, customer service
department, etc.

The advantage of a functional structure is that individuals are dedicated to a single function. These clearly defined
roles and potentials limit confusion. The weakness is that it’s challenging to facilitate strong communication
between different departments.

2. Divisional

The divisional structure refers to companies that structure leadership according to different products or projects. Gap
Inc. is a perfect example of this. While Gap is the company, there are three different retailers under the heading:
Gap, Old Navy, and Banana Republic. Each operates as an individual company, but they are all ultimately under the
Gap Inc. brand.

Another good example is GE, which owns dozens of different companies, brands, and assets transversely many
industries. GE is the larger brand, but each division functions as its own company. While somewhat dated and
abridged, this diagram gives you an idea of what GE’s basic organizational structure looks like.

3. Matrix

The matrix structure is a bit more confusing, but pulls benefits from a couple of different formats. Under this
structure, employees have many bosses and reporting lines. Not only do they report to a divisional manager, but they
also naturally have project managers for specific projects.

While matrix structures come with a lot of flexibility and balanced decision-making, this model is also prone to
confusion and complications when employees are asked to fulfill differing responsibilities.

4. Flatarchy

While large businesses have traditionally tracked a tall structure, it’s becoming increasingly common to see
flatarchies in smaller businesses and new startups.

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“Unlike the traditional hierarchy which typically sees one-way communication and everyone at the top with all the
information and power, a ‘flatter’ structure seeks to open up the lines of communication and collaboration while
removing layers within the organization,” writes Forbes’Jacob Morgan.

This flatarchy structure basically removes unnecessary levels and spreads power across multiple positions. This
leads to better decision-making, but can also be confusing and awkward when everyone doesn’t agree. In other
words, it comes with pros and cons just like the other structures.

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Question No. 5

a) What is leadership?

Answer:

Leadership is :
- Leadership is setting a new direction or idea for a group that they follow, ie: a leader is the
spearhead for that new direction.
- People who can inspiration the behaviors of others without having to rely on force.
- People who are accepted as leaders by others.

b) Explain the difference between leaders and managers

Answer :

1) Managers Manage the Tasks at Hand. Leaders Lead Towards the Future.

Managers are intensive on getting the current job done. That's fine—it needs to get done. But a leader is
looking at the big picture. He or she asks the tough questions, such as: How does this task main towards
the quarter's goals? How does this fit into the company's overall p lan? How does this help make the
employees for their future career goals?

2) Managers Supervise People or Tasks. Leaders can be Individual Contributors.

There are people managers and project managers. Each has a distinct set of responsibilities. Sometimes a
leader doesn't have a big title, and it's just the person that everyone looks up to for supervision and
direction to be an individual contributor. This person exemplifies leadership and people naturally follow.
This is the type of person to watch out for and encourage to management.

3) Leader's Guide People Towards Success. Managers Tell People What to Do.
If you're a list type of a manager, you're probably not a leader. Check boxes aren't bad —they aren't. But, if
all you can do is tell people to check off boxes, it's not leadership. A leader motivates and supports other
people to succeed, and sometimes that involves individual tasks and sometimes it involves leasing things
evolve on their own.

4) Leaders Are Willing to Give up control. Managers Set Directions for Everything.
When a direct report becomes too talented, it can send ill-equipped managers into a fury. Leaders celebrate
and recognize that this person is ready for more responsibility and a possible promotion. Managers may be
tempted to keep their tasks and their projects close at hand. Leaders identify when someone is ready to take
on new responsibilities and celebrates in that.

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5) Leaders Care About the People. Managers Care About the Numbers.
Numbers are important—anyone who tells you else is off his rocker. However, they aren't the only thing
that matters. A manager might bark at a slow moving worker to pick up the step, but a leader will ask if
there is a problem and offer a answer. Both leaders and managers may end up firing an employee who can't
pull it together, but a leader will try to determination the issue first.

Resolving a problem is often a more difficult task than firing an employee. Ignoring a it doesn't make it go
away and will likely reassure your best employees to quit. Managers focus on hitting targets, while leaders
see if their team is solid and if there are problems steeping.

If you're a manager—whether it's of a project or people—stop and take a look at how you conduct yourself.
Are you acting as a true leader, or simply as a manager? Make sure it's the former.

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 c) Explain any five competencies required of a leader.

Answer :

1: An Ability to Grow & Adapt

Data from the study suggests that exceptional managers at all levels don’t necessarily start out that way. In fact, the
ability to continue to learn and gain competence is a characteristic that often sets excellent leaders apart from their
counterparts that hit a “performance plateau” earlier in their careers.

In the survey, the percentage of managers who were rated as exceptional peaked among managers who had 5-10
years or more of tenure in their role—these two groups accounted for a combined 50% of all managers rated as
exceptional. Meanwhile, only 33% of the total managers rated as average were among this tenure group.

Of all the managers rated as being exceptional, only 5% had a year or less of tenure in their role. Basically, the
longer a manager was in their role, the more likely they were to be rated as exceptional. However, the number of
managers who had 5 or more years of tenure that were rated as “average” or worse revealed that experience alone
didn’t guarantee an improvement in performance.

The most effective leaders were those who could learn from their experiences to grow and familiarize to their roles.

2: Action Orientation

Action direction is the ability to maintain a sense of urgency to complete a task and acting decisively to implement
solutions and resolve crises.

Many of the leaders across all levels of management in the organizations measured displayed this competency—
helping them and their teams complete tasks and meet goals in a timely method. In all three levels of management,
this leadership competency was rated as either the first or second highest-rated of the 46 different skills inspected in
the study.

3: Building Teams

Team building consists of many separate (but closely related) skills in one main capability, including the leader’s
ability to:

 Increase mutual trust;

 Encourage cooperation, coordination, and identification with the work unit;
 Encourage information sharing among individuals; and
 Include others in processes and decisions.
Effective leaders are able to achieve all of the above tasks—helping create teams that work well together to meet
both short-term and strategic goals.

4: Building Trust & Personal Accountability

Building trust and demonstrating personal accountability involves the leader keeping promises and honoring
commitments, accepting responsibility for their own actions, being honest and frank when communicating
information, and assuming responsibility for dealing with problems, crises, or issues when they ascend.

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 5: Critical & Analytical Thinking

Critical and analytical thinking involves the leader’s ability to maintain an objective view of situations by:

 Questioning basic expectations;

 Applying sound reasoning;
 Understanding the difficulty of an issue and breaking it down into manageable pieces; and
 Understanding the allegations of data/information.
Leaders who are able to use critical thinking can objectively assess situations and make independent, well-reasoned
decisions. The feature ranks highly for all manager types—placing in the top 10 competencies for each.

For leaders in any role, these five competencies are objectively-verifiable “must-haves” for maximizing success.
However, some roles may need additional skills for success. Because of this, it’s significant to not only develop
these five capabilities, but to identify other leadership capabilities for specific roles in your own organization as
well.

A competency model creates a precise definition of the skills and attributes that are needed to meet critical business
challenges. These models allow companies to achieve several things:

1. Align leader behaviors with the inclusive business culture and strategy;
2. Provide useful feedback based on defined sets of potentials; and
3. Invest in the training and expansion activities that will have the greatest impact on leadership success.

Taking the time to define what success looks like for key leadership roles in your organization is vital for precisely
assessing a leader’s strengths and opportunities for enhancement in that role.

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Reference

1) https://www.managementstudyguide.com/management_levels.htm
2) https://www.slideshare.net/sindhubhargavi3/principles-of-management-types-of-decision-making
3) https://www.allbusiness.com/4-common-types-organizational-structures-103745-1.html
4) https://www.teamtechnology.co.uk/leadership/management/definitions-of-leadership-and-management/
5) https://www.cornerstoneondemand.com/rework/whats-difference-between-manager-and-leader
6) https://www.onpointconsultingllc.com/blog/the-top-5-must-have-leadership-competencies
7) https://www.umassd.edu/fycm/decision-making/process/
8) https://www.merriam-webster.com/dictionary/decision-making
9) https://www.managementstudyguide.com/what-is-decision-making.htm
10) https://www.study.com/academy/lesson/four-function-of-management-planning-organizing-leading-
controlling.html

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