BA7031 Managerial Behaviour and Effectiveness

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MANAGERIAL BEHAVIOR AND EFFECTIVENESS
CONTENTS
CHAPTER TOPICS PAGE NO
DEFINING THE MANAGERIAL JOB
1.1 Managerial Job-Descriptive Dimensions
1.2 Methods of Managerial job dimensions
1 1.3 Model of Managerial dimensions 5-18
1.4 Time Dimensions in Managerial Jobs
1.5 Effective and Ineffective Job behavior
1.6 Functional and level differences in Managerial Job behaviour
DESIGNING THE MANAGERIAL JOB
2.1 Identifying Managerial Talent
2.2 Selection
2.3 Recruitment
2.4 Managerial Skills Development
2.5 Pay and Rewards
2 19-45
2.6 Managerial Motivation
2.7 Effective Management Criteria
2.8 Performance Appraisal Measures
2.9 Balanced Scorecard
2.10 Feedback
2.11 Career Management
CONCEPT OF MANAGERIAL EFFECTIVENESS
3.1 Concept of Managerial Effectiveness
3.2 Measuring managerial effectiveness
3 3.3 Methods of Measuring Managerial Effectiveness 46-58
3.4 Current Industrial and Government Practices in the Management
of Managerial Effectiveness
3.5 Effective Manager as an Optimizer
ENVIRONMENTAL ISSUES IN MANAGERIAL
EFFECTIVENESS
4.1 Organisational Processes
4.2 Organisational Climate
4 4.3 Leader 59-73
4.4 Group Influences
4.5 Job Challenge
4.6 Competition
4.7 Managerial Styles
DEVELOPING THE WINNING EDGE
5.1 Organisational and Managerial Efforts
5.2 Self Development
5 5.3 Negotiation Skills 74-87
5.4 Development of the Competitive Spirit
5.5 Knowledge Management
5.6 Fostering Creativity and innovation
Question Bank 88-105
SCE 3 Department of Management Sciences
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BA7031 MANAGERIAL BEHAVIOR AND EFFECTIVENESS
COURSE OBJECTIVE:
 To examine managerial styles in terms of concern for production and concern for people.
 To assess different systems of management and relate these systems to organizational
characteristics.
COURSE OUTCOME:
Students will gain knowledge about appropriate style of managerial behaviour.
UNIT I DEFINING THE MANAGERIAL JOB 8

Descriptive Dimensions of Managerial Jobs – Methods – Model – Time Dimensions in Managerial
Jobs – Effective and Ineffective Job behaviour – Functional and level differences in Managerial Job
behaviour.
UNIT II DESIGNING THE MANAGERIAL JOB 12

Identifying Managerial Talent – Selection and Recruitment – Managerial Skills Development – Pay
and Rewards – Managerial Motivation – Effective Management Criteria – Performance Appraisal
Measures – Balanced Scorecard - Feedback – Career Management – Current Practices.
UNIT III THE CONCEPT OF MANAGERIAL EFFECTIVENESS 7

Definition – The person, process, product approaches – Bridging the Gap – Measuring Managerial
Effectiveness – Current Industrial and Government practices in the Management of Managerial
Effectiveness- the Effective Manager as an Optimizer.
UNIT IV ENVIRONMENTAL ISSUES IN MANAGERIAL EFFECTIVENESS 8

Organisational Processes – Organisational Climate – Leader – Group Influences – Job Challenge–
Competition – Managerial Styles.
UNIT V DEVELOPING THE WINNING EDGE 10

Organisational and Managerial Efforts – Self Development – Negotiation Skills – Development of the
Competitive Spirit – Knowledge Management – Fostering Creativity and innovation .
TOTAL: 45 PERIODS
REFERENCES
1. Peter Drucker, Management, Harper Row, 2005.
2. Milkovich and Newman, Compensation, McGraw-Hill International, 2005.
3. Blanchard and Thacker, Effective Training Systems, Strategies and Practices Pearson 2006.
4. Dubrin, Leadership, Research Findings, Practices & Skills, Biztantra, 2008.
5. Joe Tidd , John Bessant, Keith Pavitt , Managing Innovation ,Wiley 3rd edition,2006.
6. T.V.Rao,Appraising and Developing Managerial Performance, Excel Books,2000.
7. R.M.Omkar, Personality Development and Career Management, S.Chand 1st edition,2008.
8. Richard L.Daft, Leadership, Cengage, 1 st Indian Reprint 2008.
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CHAPTER-1
DEFINING THE MANAGERIAL JOB
MANAGEMENT
According to Peter Drucker, Management implies ‗Effectiveness‘ and effectiveness involves a
set of practices that can be learned. Such practices include:
• Management of time
• Focusing on employees and customers
• Building on strengths
• Identifying priorities
• Making effective decisions
According to Peter Drucker, Management implies ‗Effectiveness‘ and effectiveness involves a

set of practices that can be learned. Such practices include: • Management of time • Focusing on
employees and customers • Building on strengths • Identifying priorities • Making effective decisions
1.1 Managerial Job-Descriptive Dimensions
General Functions of a Manager
1. General Functions of a Manager
Planning - plans to integrate and coordinate activities.
Organizing- includes the determination of what tasks are to be done, how the tasks are to be
grouped, who reports to whom and where the decisions are to be made.
Leading - management‘s job to direct and coordinate people. When managers motivate
subordinates, direct the activities of others, select the most effective communication channel,
or resolve conflicts among members.
Controlling - To ensure that things are going, as they should, management must monitor the
organization‘s performance.
Functional Dimensions: Henri Fayol
The other activities of a business enterprise that managers perform, according to Fayol, could be
divided into six categories:
1. Technical (Production, Manufacturing)

2. Commercial (Buying, Selling, Exchanging)
3. Financial (Obtaining and using capital)
4. Security (Protecting of property and persons)
5. Accounting (Balance sheet, stock taking, statistics, costing)
6. Managerial (Planning, Organizing, Commanding, Co-coordinating, Control)
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1.2 Methods of Managerial job dimensions
Heuristic methods of Managerial Behavior & Performance
The person
Qualities include
 Ability to sustain defeat Alert
 Ambitious Assertive
 Capable of good judgment Confident
 Competitive Creative
 Decisive Dedicated
 Defensive Dynamism
 Emotional stability Energetic
 Extrovert Fear of failure
 Group oriented Honest
 Intelligent Mentally strong
 Optimistic Pragmatic
 Predictable Realistic
 Self-controlled Tolerant
The process
• Answers how managers manage successfully
• Manage work instead of people
• Plan and organize effectively
• Set goals realistically
• Decisions based on consensus but accept responsibility
• Delegate frequently and effectively
• Rely on others to help solve problems

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• Communicate precisely
• Cooperate with others
• Display consistent and dependable behavior
• Win with grace
• Express hostility tactfully
 Product
These reflect on outcome of effective managing and include:
• Organizational efficiency
• High productivity
• Profit maximization
• Organizational stability
• Employee welfare
• Social welfare
The four greatest myths are:
1. Task-oriented skills are more important for leadership effectiveness than are
person oriented skills.
2. Male managers are more likely to possess task oriented abilities than are female
managers; whereas female managers are more likely to possess person oriented skills than are male
managers.
3. In order to maximize managerial effectiveness, men should be given the jobs that
require task-oriented abilities and women should be given the jobs that require interpersonal skills.
4. If women want to rise to the top levels of management, they need to be more like
men.
MYTH#1: Task-oriented skills are more important for leadership effectiveness than are
person-oriented skills.
MYTH#2: Male managers are more likely to possess task-oriented abilities than are female
mangers, whereas female managers are more likely to possess person-oriented skills than are male
managers.
MYTH#3: In order to maximize managerial effectiveness, men should be given the

jobs that require task-oriented abilities and women should be given the jobs that require interpersonal
skills.
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MYTH#4: If women want to rise to the top levels of management, they need to be
more like men.
Benefits of Androgynous Management
Luthans description of effective and successful managers:
Fred Luthans and his associates studied more than 450 managers. What they found was that
these managers all engaged in four managerial activities.
Traditional Management: Decision-making, planning, and controlling.
Communication: Exchanging routine information and processing paper work
Human resource Management: Motivating, disciplining, managing conflict, staffing and

training.
Networking: Socializing, politicking, and interacting with outsiders.
VARIOUS OTHER JOB CRITERIA DIMENSIONS
Some other functions that managers perform are Communication, Listening, Oral
Presentation, Written Communication and many more.
Delegation as an important function of Manager:
There are several advantages resulting from effective delegation:
In order to delegate, the manager should have the following:
 Receptiveness – Willingness to delegate – welcomes the ideas of subordinate

 Willingness to allow them to make decisions
 Willingness to let others make mistakes
 Willingness to trust subordinates
 Should delegate only if they have means of getting feedback
 Reward effective delegation.
Social Responsibilities of Managers and Ethics to be followed:
 Responsibility towards shareholders
 Responsibility towards consumers
 Responsibility towards employees
 Responsibility towards creditors
 Responsibility towards the government
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 Responsibility towards suppliers
 Responsibility towards competitors
 Responsibility towards general public
Example: Tata group of companies took up social project as part of its corporate policy. Tata
Steel Rural Development Society adopted 32 clusters of village around Jamshedpur initially. Today it
serves more than 800 villages in eight districts of Bihar, Orissa and M.P.
1.3 Model of Managerial dimensions
Henry Mintzberg Role Dimensions
A role is an organized set of behaviours that are identified with a specific position.
Executives use role status to facilitate interpersonal relationships with supervisors,

subordinates, peers and individuals outside but connected with the organization.
Thus the managers are playing different roles.
Interpersonal Roles
• Figurehead role- receiving important visitors
• Leader – motivates & encourages the subordinates
• Liaison role- The manager establishes and maintains a network of relationships with
outside persons to bring information and favours to the organization.
Informational Roles
• Monitor - Seeks and receives information to obtain thorough understanding of organization

and environment.
• Disseminator role - The manager must transmit the information received from outsiders or
insiders to other organization members.
• Spokes person - Information about the organization must be transmitted to outsiders
Decisional Roles
• Disturbance handler role - to take corrective actions needed to resolve important and
unexpected disturbances.
• Resource allocator role - The manager allocates the monetary and non-monetary resources of
the organization.
• Specific activities include developing and monitoring budgets, forecasting future resource
needs and problems in acquiring them
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• Negotiator role - The manager frequently must negotiate with outsiders in matters affecting
the organization.
1.4 Time Dimensions in Managerial Jobs
• TIME DIMENSIONS IN MANAGERIAL JOB
• Bill May, ―President of American Company‖
• Time is the most valuable thing we deal with. It cannot be bought; it cannot be recaptured.
• It must be utilized with the highest degree of effectiveness possible. Time is the scarcest
resource, and unless it is managed nothing else can be managed
• The concept has been viewed differently through the ages.
• The concept of time is an integral part of one‘s personality and culture
The objective of time management is to increase and optimize the use of your discretionary time.
Time Management actually relates to:
• Getting the best out of your time
• Time management is the same as managing your life
• Life management
• Now management
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• Prioritization
• Managing your mind
• Awareness
•
Major areas that help in the management of time
• There are five major areas, which are imperative to improving the management of time:
1. The way we spend our time is habitual in nature
-the way you spend your time determines how you live your life, keep track of it(activity).-
Douglass
Learn to control time- changing a habit
Analysis of time:
Payoff time- 50 % of Avg a day
Investment time – 25%
Org time- 15%
Wasted time 10 %
2.Setting personal goals
plan time by setting goals, about what we want to do – long term, short term goals. SMART
3. Priorities- reduces over committed, forces to delegate responsibilities to others to make best use of
time
4. Proper communication- planned goals are executed, achieve clarity, understanding, commitment
& creativity, proper upward & downward communication
5.Procrastination( blocking usage of time)- causes
• Unpleasantness
• Difficult projects
Indecision- avoid unsatisfactory results
Principles of Time Management
• Establish goals, both long-term and short-term
• Principles of habit
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• Principles of proper planning
• Principles of prioritization
• Principles of effectiveness
• Principles of equal distribution
• Time estimates
• Delegation of authority
• Proper implementation
• Follow up
• Time wasters
• Time wasters can be classified as internal time wasters and external time wasters.
Internal time wasters:
– Poor communication-written and verbal
– Procrastination
– Inability to say ‗No‘
– Poor prioritizing
– Inadequate planning
– Failure to delegate
External time wasters
– Visitors
– Meetings
– Papers and correspondence
– Telephone
– Procedures and systems
– Travel
– Subordinates
Time Wasters with regard to Planning
• Lack of clarity on objectives

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• Shifting priorities
• Unrealistic time estimates
Process:
• Lack of clarity about the job requirements.
• Poor crisis( emergency) management
• Inability to concentrate
• Ineffective delegation
Effective Time Management Techniques based on task orientation
Four kinds of tasks
• The various tasks and projects that managers, as well as staff administrators perform can be
classified according to the two key dimensions as given
• One dimension is degree of difficulty and the second is duration of effort.( time estimation
difficult)
• Degree of difficulty is broken down into simple tasks
• Duration of effort is broken down into short-term tasks which can be completed in less than an
hour, and long term tasks which can take days, weeks or even months to finish.
The Three Laws of Time and Effort Management
The Three Laws of Time and Effort Management provide solution to the above stated
problem.
– The Law for Planning our time
– The Law for applying our effort
– The Law for Investing our Talent- smart enough to distinguish important &
unimportant tasks
Certain tips to managers on time management
– Start your day without a plan of action.
– TM is about doing right things faster & quicker
– Get out of balance in your life
– Health, family, financial, intellectual(thinker), social, professional, Spiritual – not

neglected
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– Work with a messy desk or work area
– Clean your desk to work better & effective way
– Don‘t get enough sleep.
– 75% complain tired, quantity of sleep they get but lack in quality of sleep. Plan your
day & work your plan
– Don‘t take a lunch break.
– 15 min break – to avoid procrastination
1.5 Effective and Ineffective Job behavior
Probably the greatest hurdle in developing productive and satisfying relationships among
professional and nonprofessional staff in the local church is understanding what components are
necessary to create a team. Most staff and senior pastors desperately desire positive work
relationships. Many people who give their time to the local church would like to experience fruitful
ministry among those they can also call close friends.
Quality staff relationships are experienced on purpose, not accidentally. They are the product
of hard work in defined areas of relationship and daily work processes. While some leaders may point
enviously to this staff or that staff and believe something unusual is taking place because they are
getting along, the truth is that almost any staff can learn what makes a staff effective. The divine law
of sowing and reaping applies to staff development—sow good things and you will reap the desired
fruit. Conversely, sow maliciously or without understanding and bushels of fruit from an undesired
harvest will show up in your work relationship. This tool will help you sow into your staff wisely.
The following chart is a tool for identifying the critical components of professional and
nonprofessional church workers that make their efforts collaborative or non collaborative in the truest
sense. Note: Your church‘s accepted; normal organizational-management style may not fit what is
here described as effective team characteristics. There are, of course, other ways to lead church
leaders, but not all create an environment of shared ministry. The assumption of this tool is that high
collaboration is desired. To experience high levels of staff input and significant sharing of ministry
responsibility throughout your church, the characteristics organized under effective team
characteristics (left column) need to become a reality. As you read through the 10 characteristics
below, think about the work relationships of your primary ministry group and which side of the page
they favor.
Effective Team Characteristics Ineffective Team Characteristics
1. Atmosphere
Unduly formal, disengaged, tense, guarded,
intimidating, stiff, fragmented, underchallenged
Informal, engaged, relaxed, open, comfortable,
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nonthreatening, participative
2. Group objectives
Group task or objectives are unclear, no evidence
Tasks or objectives understood and accepted, free that the group either understands or accepts a
discussion leading to group commitment, no common commitment, often in conflict with each
hidden agendas, regular reviews, measure of a other and with group‘s task
group‘s success is task achievement
3. Communications
A few people dominate discussion; selective
Open and honest; flows freely up, down sideways;
listening; information is hoarded, withheld, and
everyone is given a hearing; individuals build on
flows mainly down; mixed messages
each other‘s ideas; conversation takes place inside
and outside formal meetings
4. Handling of conflict
Protocols not understood or used; avoided and
Viewed as natural, even helpful; comfortable discouraged; becomes destructive, personal,
handling conflict; disagreements are not politicized; resolution regularly leaves some
suppressed, overridden, or smoothed over; focused individuals uncommitted
on issue, not the person
5. Decisionmaking
Forced or majority voting, dictated decisions,
By consensus, real issues openly discussed, full emphasis on power, various levels of commitment,
commitment by team, little formal voting, simple dissonance present within group
majority not accepted as a proper basis for action
6. Criticism
If present, it is embarrassing and tension
Criticism is frequent, frank, and constructive; producing; often appears to involve personal
oriented toward removing obstacles that are hostility; tends to be destructive, seeing only
preventing the group from getting the job done; negatives; there is little building on others‘
little evidence of personal attack, either openly or contributions
in a hidden fashion
7. Expressing personal feelings
Personal feelings are hidden; viewed as
People freely express their feelings and ideas, both inappropriate for discussion or would be
on the problem and on the group‘s operation; few destructive if brought out on the table; risk
hidden agendas; feedback readily accepted; high avoidance
levels of trust, respect, care
8. Task achievement Action decisions and individual roles tend to be
unclear; low follow- through, variable
Clear, agreed-on plans and roles; high commitment; performance is rarely reviewed; poor
commitment to follow-through; group regularly performance is rationalized; undisciplined;
weighs performance against objectives and takes reactive; action- oriented versus results-oriented
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steps to ensure success; diversified team member

types, skill competence, and talents
9. Leadership
While the team has a formal leader, leadership Single-leader dominated; leader may coerce,
functions shift from time to time based on compromise, or abdicate; establishes norms for the
circumstances, skills, and team needs; control is group and leads from own value system
not an issue but how to get the job done; positive
norms established and modeled by the leader
10. Review of team processes
Discussion on the performance effectiveness or
The group is conscious about its own operations; operation is avoided; discussions about problems
periodically, it will stop to examine how well it is are kept private and not brought to the group;
doing or what may be interfering with team rewards are based on subjective, often arbitrary,
functioning; peer recognition; rewards based on appraisals
group contributions
1. Effective leaders are clear on what matters, communicate what matters, and model the
desired values and behaviours. Ineffective leaders are either not clear on what matters or simply not
able to able-willing to rule some stuff out. Ineffective leaders suck at communicating what matters.
And they don‘t live-model-embody the fine sounding values, beliefs, and behaviours that they talk
about.
2. Effective leaders name and insist on dealing with the most important issues no matter how
unpleasant these issues are. Ineffective leaders find all kinds of reasons and excuses for not dealing
with the real issues and instead spend their time on what they are comfortable with.
3. Effective leaders focus on getting a rounded-realistic-fact based picture of reality. And as

such they give real thought to who needs to take part in the conversation, and how to create a
context that calls forth the ‘truth of each participant’. Please note that feelings are facts!
Ineffective leaders are drunk on their own importance and thus push their views, their agenda, on to
the favoured few that they invite to the conversation.
4. Effective leaders deal with the thorny issues in a way that tends to build the self-esteem,
confidence, learning, and goodwill of their people. Ineffective leaders issue orders, discount the
concerns-views of their people, and make threats thus rupture one of the most critical pillars of an
effective organisation: relationship and emotional affinity and loyalty.
5. Effective leaders think about the well-being of the wider system – all stakeholders inside and
outside the business. Ineffective leaders focus on what matters to them and their favoured
constituency.
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6. Effective leaders first hold themselves accountable. And by doing so they create the powerful
access to holding their people accountable. Ineffective leaders hold others to account but not
themselves. And sometimes they don‘t even hold others accountable for fear of being confronted with
their own lack of accountability.
7. Effective leaders get the critical importance of integrity. As such they put in place powerful
‗instruments‘ that will: detect any ‗out of integrity‘ ways of showing up in the world; and call the
effective leader to get back into integrity quickly and clean up any mess s/he has made. Ineffective
leaders don‘t get that integrity is essential to ‗workability‘ and ‗performance‘ and as such there is little
fit between what they say and what they do. For ineffective leaders, integrity is optional.
1.6 Functional and level differences in Managerial Job behaviour
• Though all managers perform the same functions of planning, organizing, directing and
controlling.
• There are levels among them. It is normal practice to categorize managers into three levels
consisting of top level managers, middle level managers and first line managers consisting of
supervisors and foreman.
Top management Level
• Top-level management includes – Chief Executive Officer (CEO), Managing Directors,

President and Vice President, Senior Level Managers (called executives).
• These top-level managers have the overall responsibility of the survival and welfare of the
organizations. It is a biggest decision making body in the organization. They establish
objectives and devise strategies to achieve the objectives.
• Top management is a risky and challenging job
• E.g. Managing Director of Maruthi Udyog Ltd., took a decision to decrease the price of the
car, to increase the sales but it became vice versa. Sales got down.
Middle level Managers
• These will form the next layer of the management hierarchy. These are subordinates to top-
level managers.
• Middle level managers include – Operation Manager, Plant Manager, Division head etc.
• Middle level managers have overall responsibility of implementation of the plan and
controlling the activities. They are responsible for all the activities of the first line managers.
First level Managers
• These managers include foreman, supervisors, and section head or department manager.
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• The operators or workers directly report to first line manages. These are responsible for
controlling of operations plans prepared by middle level managers. They are responsible for
outputs
SKILLS REQUIRED BY THE MANAGERS AT EACH LEVEL
• Technical – at supervisory role
A technical skill is an ability to use a special proficiency or expertise relating to a method,

process, or procedure.
• Human – middle level
Human skill is the ability to work well in co-operation with other persons. It emerges as a
spirit of trust, enthusiasm, and genuine involvement in interpersonal relationships.
Good human skills to communicate, motivate and delegate.
• Conceptual Skill- Top Level
A conceptual skill that draws heavily on one‘s mental capacities to identify problems and
opportunities, gather and interpret relevant information, and make good problem-solving
decision that serve the organizations‘ purpose.
Top Managerial Level- Change Management Change
• Change is the norm
• Change is unavoidable
• Task of the organization is to lead change.
A change leader (Top Management) sees change as an opportunity. The following four
components should be given more attention by the managers.
• Change Policies
– Abandon yesterday
– Organized improvement
– Exploiting success
• Piloting
• Changes & continuity – balancing
• Making the future
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CHAPTER-2
DESIGNING THE MANAGERIAL JOB
2.1 Identifying Managerial Talent
• Managing Talent is increasingly challenging in the mists of globalization and a recovering

economy
• Companies willing to invest in talent development record a higher business performance than
those who don‘t.
• Critical Ingredients of Managerial Talent
• Unique vision thinking
• Rely on strengthens, compensate for weakness: met cognitive ability
• Trust your intuition :extra cognitive capabilities
• Be wise
• Optimism is desirable
People Talent’s in four Areas
• Creators
• Implementing business model which distinguishes its value proposition
• Ambassadors
• Represents the org public face and are responsible for customer experience
• Craft master
• Ensures the quality, timeliness and cost effectiveness of an org
• Drivers
• Keep business running, assembly line operators, back office agents, administrative
assistants
How talented Managers Lead Projects
• Find the right people : how & where
• Match people with the right tasks
• Provide constant feedback
• Concentrate on execution
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• Do more with : creativity in action
How talented Managers run organizations
• Build good team of senior managers( Andry Grove – Intel)
• Delegate them power
• Execute on promises ( Richard Branson – Virgin group)
• Delivery ( Michael Dell – Dell Computer corp.)
• Do not use all opportunities (― ― )
• Avoid micro management( Larry Ellison- Oracle corp.)
• Establish multiple mechanisms for search of managerial talent( Akio Mortia – Sony)
Assessing Leadership and Management Talent
• Selection Strategy – Four Steps
• Understand the position being staffed
• Specify the qualifications required for the position
• Use appropriate methods to measure the qualifications
• Collect and integrate the information's to identify the best qualified candidate
Review- Ernst & Young
• Through interviews with 480 top executives and 4000 surveys across all functions and levels
in organisations in Singapore, Greater China, Hong Kong, and India
• Examined the managerial talent identification and development policies, procedures and
processes of a broad spectrum of Multinational companies and Small and Medium Enterprises
in five industries
• Finance, high-technology manufacturing, IT and telecommunications, hospitality and supply

chain
Dimensions to develop talent and high potentials organisations
• Critical talent dimensions that help attract, develop and retain managerial talent and high
potentials in organisations
1. Creating the business case for talent
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The most important talent domain in driving talent management is building a business case
for talent. This implies that building a sound business case is a good area to target to improve business
performance.
A business case for talent comprises:
• Linking talent to the ability to implement business strategy
• Linking talent to the ability to create shareholder value
• Linking talent efforts to the ability to differentiate an organisation from its competitors
• Continuing to invest in talent during a downturn
The high correlation between positive business performance and managing talent
implies that the organisation‘s ability to manage talent has a strong impact on the organisation‘s
performance.
2. Ensuring high-performing teams
3. Aligning talent with strategy and customers
4. Assessing talent
5. Investing in talent
6. Fully leveraging and managing diversity
7. Matching talent to positions
8. Engaging talent for full contribution
9. Using technology to get greater return on talent
10. Measuring talent
11. Creating a shared partnership between HR and line managers
2.2 Selection
 ―Selection is the process of differentiating between applicants in order to identify and hire
those with a greater likelihood of success in a job.‖
 It is selecting a right person for a right job at right time.
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Preocess/Method
 Preliminary Interview
The purpose of preliminary interviews is basically to eliminate unqualified

applications based on information supplied in application forms. The basic objective is to
reject misfits. On the other hands preliminary interviews is often called a courtesy interview
and is a good public relations exercise.
 Selection Tests
Jobseekers who past the preliminary interviews are called for tests. There are
various types of tests conducted depending upon the jobs and the company. These tests can be
Aptitude Tests, Personality Tests, and Ability Tests and are conducted to judge how well an
individual can perform tasks related to the job. Besides this there are some other tests also like
Interest Tests (activity preferences), Graphology Test (Handwriting), Medical Tests,
Psychometric Tests etc.
 Employment Interview
The next step in selection is employment interview. Here interview is a formal

and in-depth conversation between applicant‘s acceptability. It is considered to be an excellent
selection device. Interviews can be One-to-One, Panel Interview, or Sequential Interviews.
Besides there can be Structured and Unstructured interviews, Behavioral Interviews, Stress
Interviews.
 Reference & Background Checks
Reference checks and background checks are conducted to verify the

information provided by the candidates. Reference checks can be through formal letters,
telephone conversations. However it is merely a formality and selections decisions are seldom
affected by it.
 Selection Decision
After obtaining all the information, the most critical step is the selection
decision is to be made. The final decision has to be made out of applicants who have passed
preliminary interviews, tests, final interviews and reference checks. The views of line
managers are considered generally because it is the line manager who is responsible for the
performance of the new employee.
 Physical Examination
After the selection decision is made, the candidate is required to undergo a

physical fitness test. A job offer is often contingent upon the candidate passing the physical
examination.
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 Job Offer
The next step in selection process is job offer to those applicants who have crossed all
the previous hurdles. It is made by way of letter of appointment.
 Final Selection
2.3 Recruitment
The process of attracting individuals on a timely basis, in sufficient numbers, and with
appropriate qualifications, and encouraging them to apply for jobs with an organization.
Recruitment Sources and Methods
 Recruitment sources: Place where qualified individuals are found
 Recruitment methods: Means by which potential employees can be attracted to the firm
Methods Used in Internal Recruiting
 Job Posting
 Employee Referrals
 Internal Job Fairs
External Recruitment Sources
Why external recruitment?
 Acquire skills not possessed by current employees
 Obtain employees with different backgrounds to provide a diversity of ideas
 External Recruitment Sources
 Internet
 Community Colleges
 Colleges and Universities
 Competitors and Other Firms
 Outplacement Firms
 Military Personnel
 Consultants or Researcher
 Professional Associations
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External Recruitment Methods
 Advertising
 Employment Agencies
 Job Fairs/Virtual Job Fairs
 Executive Search Firms
 Target Research
 Internships
 Professional Associations
 Open Houses
 Event Recruiting
 Sign-on Bonuses
 Company Database
 Target Internet sites
2.4 Managerial Skills Development
• Overall development in a person
• Not only improvement in job performance, but also improvement in knowledge, personality,
behavior of executive
• Focus more on personal growth
• Executive development improves job performance as well as job behavior
• Understands cause & effect relationships, synthesize from experience, visualizes relationship
& thinks logically
Definition
• Executive/ Managerial development is a systematic process of growth and development by

which the managers develop their abilities to manage.
• It is concerned with improving the performance of the manager by giving them opportunities
to grow.
Objectives of Executive Development Programs
• To over haul the management skills
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• To improve the performance of the managers
• To identify the person with the required potential and prepare them for senior positions.
• To increase morale of the members of the management group.
• To increase versatility of the management group.
• To keep the executives abreast with the changes and developments in their respective fields.
Executive Development Process
• Identifying Development Needs- how many & what type of executives-org, individual needs
• Appraisal of Present Managerial Talent – assessment is made to compare with the standard
expected from him
• Inventory of Executive man power
– Age, education, experience, qualification
– Strengthens, weakness in certain functions related to org needs
• Developing development programmes
– Skill development, changing attitudes & knowledge acquisition
• Conducting Development Programmes- participating
• Evaluating development Programmes
– Appraise the effectiveness, highlight weakness
METHODS OF EXECUTIVE DEVELOPMENT
• on the job development
• Under this method, the manager is placed on a regular job and the necessary skill is taught to
perform the job efficiently. On the job training has the advantage of giving first hand
knowledge and experience under the actual working condition
• Executive Development Methods
ON THE JOB OFF THE JOB
Coaching Lecture
Job rotation Case Studies
Understudy Group Discussion
Multiple Management Role Playing
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Management games
In Basket Exercise
Sensitivity Training
2.5 Pay and Rewards
Work performance is affected by:
Job characteristics and (physical) work environment
Abilities and skills
The willingness to perform
Rewarding Employees
 Major strategic rewards decisions:
 What to pay employees
 How to pay individual employees
 What benefits to offer
 How to construct employee recognition programs
 What to pay
 Need to establish a pay structure
 Balance between:
 Internal equity – the value of the job for the organization
 External equity – the external competitiveness of an organization‘s pay relative to a

pay elsewhere in its industry
 A strategic decision with trade-offs
Definition of Reward Management
• This management discipline is concerned with the formulation and implementation of

strategies and policies, the purposes of which are to reward employees fairly, equitably and
consistently in accordance with their value to the organisation.
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• It deals with design, implementation and maintenance of reward systems (processes, practices,
procedures) that aim to meet the needs of both the organisation and its stakeholders.
Philosophy of Reward Management
 Strategic sense: long-term focus & it must be derived from the business strategy
 Total Reward approach: considering all approaches of reward (financial or not) as a coherent
whole; integration with other HRM strategies
 Differential reward according to the contribution
 Fairness, equity, consistency, transparency
Economic theories (partially) explaining pay levels
 Supply & Demand: labor market factors
 Efficiency wage theory: attraction of better employees, motivation, reducing fluctuation leads
to high wages
 Human Capital theory: productivity differences
 Principal – Agent Theory: inequality in the information leads to „agency costs‖
 The effort bargain: collective bargaining
The 4Ps of Reward
 Pay
 Salary, bonus, shares, etc.
 Praise
 Positive feedback, commendation, staff-of-the-year award, etc.
 Promotion
 Status, career elevation, secondment, etc.
 Punishment
 Disciplinary action, withholding pay, or criticism, etc
Strategic Reward Management
 Where do we want our reward practices to be in a few years time? (vision)
 How do we intend to get there? (means)
Reward Strategy
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 A declaration of intent that defines what the organisation wants to do in the longer term to
develop and implement reward policies, practices and processes that will further the
achievement of its business goals and meet the needs of the stakeholders.
 It gives a framework to other elements of reward management.
The structure & content of a Reward strategy
 Environment analysis:
 Macro-level: social, economical, demographic
 Industrial level
 Micro-level: competitors
 Analysis of the „inner environment‖: strategy, job evaluation, financial conditions…
 Gap-analysis
 Guiding principles
 Broad-brush reward strategy
 Specific reward initiatives
Job-evaluation
A systematic process
 For defining the relative worth/ size of jobs/roles within an organisation
 For establishing internal relativities
 For designing an equitable grade structure and grading jobs in the structure
 To give an input for reward considerations
Dimensions of job evaluation
 Relative or measured to an absolute scale
 Relative: compares jobs to one another within the company
 Absolute: compares to an „independent‖, external measure
 Analytical or non-analytical (global)
 Analytical: measures factors or elements of the jobs
 Non-analytical: measures the job as a whole
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Wage gaps
 Wage gaps can occur in companies using international benchmarking in job evaluation. The
cause is simple:
 The market of top managers is usually international: they earn international wages, or
they leave the firm
 The market of workers with little or no qualification is local in (nearly) every case:
they earn local wages.
 In less developed countries this can lead to enermous wage gaps between the „top‖ and
„bottom‖ employees.
Components of Total Remuneration
 Base pay: Base pay is the fixed compensation paid to an employee for performing specific job
responsibilities. It is typically paid as a salary, hourly (or in some situations piece rate). There
is a tendency towards market orientation and the increasing role of qualifications.
 Contingent pay: Individual contingent pay relates financial rewards to the
 individual performance, organisation or team performance,
 competence,
 service,
 contribution or
 skill of individual employees.
Consolidated pay: built into the base pay
Variable pay: provided in the form of cash bonuses (increasing role nowadays).
 Employee benefits: Elements of remuneration given in addition to the various forms of cash
pay.
Contingent pay
 Individual contingent pay is a good motivator (but to what extent?) for those who receive it.
 It attracts and retains better workers.
 It makes labour related expenditures more flexible.
 It can demotivate those who don‘t receive it (depends on performance measurement)
 Can act against quality and teamwork.

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Types of individual contingency pays
 Performance-related: increases basic pay or bonuses related to assessment of performance
 Competence related: Pay increases related to the level of competence
 Contribution-related: pay is related both to inputs and outputs
 Skill-based: pay is related to acquisition of skills
 Service-related: pay is related to service-time
Team based pay
 Pay is related to team performance
 It can encourages teamwork, loyalty and co-operation
 It can be demotivating on individual level (encourages social loafing)
Organisaton-wide schemes
 Profit-Sharing Plans – organization-wide programs that distribute compensation based on an

established formula designed around profitability
 Gain Sharing – compensation based on sharing of gains from improved productivity
 Employee Stock Ownership Plans (ESOPs) – plans in which employees acquire stock, often at
below-market prices
Employee benefits
 Attractive and competitive total remuneration
 Provide for the personal needs
 Increase commitment toward the organisation
 Tax-efficient
Main types of Employee benefits
 Pension schemes
 Personal (and family) security: different types of insurances
 Financial assistance: loans, house purchase schemes, discount on company services…
 Personal needs: holidays, child care, recreation facilities, career breaks…
 Company cars and petrol
 Intangible benfits: quality of working life…

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 Other benefits: mobile phones, notebooks…
 Cafeteria systems
2.6 Managerial Motivation
What is Motivation?
 Motivation refers to the process by which a person‘s efforts are energized directed and
sustained towards attaining a goal.
 Three key elements
I. Energy
II. Direction
III. Persistence
Energy:
The energy element is a measure of intensity or drive. A motivated person puts forth effort and
works hard however the quality of effort must also be considered.
Direction:
High levels of effort do not necessarily need to favorable job performance unless the effort is
channeled in a direction that benefits the organization.
Persistence:
Effort that is directed toward and consistent with organization goals is the kind of effort we
want from employees.
Finally motivation includes a persistence dimension. We want employees to persist in

putting forth effort to achieve those goals.
THEORIES OF MOTIVATION
 Maslow‘s Hierarchy Of Needs Theory
 McGregor‘s Theory X and Theory Y
 Herzberg‘s Two-Fact Theory
 McClelland‘s Three-Needs Theory
Maslow‘s Hierarchy Of Needs Theory
 Maslow Argues that each levels in needs hierarchy must be substantially satisfied before the
next need becomes dominant.
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 An individual moves up the needs hierarchy from one level to the next.
 He considered psychological and safety needs(lower order needs)
 He considered social, esteem, self actualization needs (higher order needs)
 Lower order needs are predominantly satisfied externally
 Higher order needs are satisfied internally
McGregor‘s Theory X and Theory Y
 Douglas McGregor is best known about two assumption of human nature. Theory X and
Theory Y
 Theory X is a negative view of people
 Theory Y is a positive view of people
Theory Y assumption should guide management practice and proposed that participation and
decision making responsible and challenging jobs and good group relations would maximize
employee motivation.
Herzberg‘s Two-Fact Theory
 Also Called motivation hygiene theory
 Have two factors
i. Intrinsic factors: job satisfaction
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ii. Extrinsic factors: job dissatisfaction
McClelland‘s Three-Needs Theory
 David McClelland and his associates proposed the three needs theory which says there are
three acquired(not innate{not in born}) needs that are major motivators in work
 Three needs are:
i. Need for achievement
ii. Need for power
iii. Need for Affiliation
2.7 Effective Management Criteria
Effective managers lead to business success
1. Know what is going on.

Be aware of what is happening in your sector, your organisation andyour team. Knowledge
gives you the tools to plan ahead, use your resources effectively andmake informed decisions.
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2. Create a sense of direction.

Establish clear goals and objectives for your employees – andexplain how these fit into an
overall plan. Be ready to alter goals as circumstances change, butalways explain why. Make sure
tasks, projects and meetings have a purpose and an outcome: ashared sense of direction is the core of a
tightly knit, focused team.
3. Make decisions.
Your staff look to you for leadership, and that means making decisions.Indecisiveness will
wear away at your credibility and create uncertainty in your team. By allmeans consult with your staff
before making a decision, but take responsibility for making ityourself.
4. Lead by example.
Whether you like it or not, you set the tone for your team and they willfollow your example. If
you are slack, they will be slack; if you are sharp, they will be, too. It isup to you to set the standards
you want your team to aspire to, and communicate those standardsin what you do, what you say and
how you say it.
5. Consult and delegate.

You cannot do everything by yourself, so don‘t even try. Talk to your staff about the business,
listen to what they say and take their ideas on board. Pass work on to people who can do it and trust
them to get the job done.
6. Take responsibility for your team.

Ultimately, you are responsible for your team‘s performance. If they perform poorly, that‘s a
reflection on you. So be accountable for their performance and don‘t pass the buck – blame only
creates resentment and division. Acceptingresponsibility will earn your employees‘ loyalty and
respect.
7. Ask your staff what they want to achieve.

Successful organisations harness the interests andambitions of their staff, who will work with
greater enthusiasm and commitment when they havea personal stake in a business or project. Find out
what they want to achieve and give them themeans to achieve it.
8. Praise your staff for work well done.
Never pass up an opportunity to commend your staff for working well and always
acknowledge their contribution to successful projects. A pat on the back costs nothing, but instils a
sense of pride and increases motivation. You might evenconsider developing some sort of incentive or
reward scheme.
9. Be completely fair.
Favouritism, however subtle, creates jealousy and damages morale. It‘svital that you don‘t
show preference for one person over another, and you give your attentionequally to your staff. This
doesn‘t mean you treat them all in exactly the same way, however:good managers realise that people
respond to different incentives.
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10. Deal with errors calmly.

If you lose your temper, you lose credibility. Deal with mistakescalmly and without rancour. If
you have cause to criticise someone, never do so publicly – it isdamaging to individual pride and
collective morale.
There are also following facts that should be kept in mind for effectivemanagement:
1. Low competence, high commitment

This bucket tends to contain inexperienced or new teammembers. They often lack the training
and experience to be highly competent, but they make upfor it in enthusiasm and commitment to the
job at hand.
2. Low to moderate competence, low commitment

This bucket contains poor performers aswell as good performers who are temporarily
frustrated. Frustration is usually caused bysomeone who wants to do a good job but doesn‘t yet have
the expertise to perform to their expectations.
2.8 Performance Appraisal Measures
 By means of HRD activities, the manager develops the technical, managerial, behavioral
knowledge, skill ability and values, which are necessary to perform present and future role.
 The process of performance appraisals helps the manager and management to know the actual
performance level of manager when compared to standard level.
 Performance appraisal is the basis of HRD, based on which promotions ,demotion, salary
fixing etc. can be decided. It is the basis for the individual development
Definitions
 It is a method of evaluating the behaviour of the manager in work spot, both qualitative and
quantitative aspect.
 It is the degree of accomplishment of the task that makes up an individual job.
 The performance of an employee is his resultant behavior on task which can be observed &
evaluated
 Performance is measured in degree of the result achieved.
Performance Appraisal :
Performance Appraisal (PA) refers to all those procedures that are used to evaluate the personality,
performance, potential, of its group members
Purpose of PA-Remedial, maintenance, development

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Characteristic feature of performance appraisal
 Performance appraisal is the systematic description of the manager job relevant strength and
weakness.
 Basic purpose is to find out how well the manager is performing the job.
 Appraisals are arranged periodically.
 Performance appraisal is a continuous process.
 Secure information for making correct decisions on employees
 Performance appraisal is followed by corrective measures
NEED FOR PERFORMANCE APPRAISAL
 Provides information about the performance rank.
 Provide feedback information about the level of achievements and behaviours of subordinate.
 Prevent grievances and maintains discipline
 Creates and maintain satisfactory level of performance.
 Contributes to manager growth and development through training programs.
 Helps the superior to have proper understanding about their subordinates.
 Helps to adopt job changes with the help of continuous ranking.
 Facilitates fair and equitable compensation, based on performance.
 Facilitates in testing and validating selection tests, interview techniques, by comparing their
scores with performance standards.
 Provides information for making decisions regarding layoff, retrenchment etc.
 The Appraisal Model
The appraisal model consists of three kinds of appraisals:
 Comprehensive review
 Progress or periodic review
 Continuous monitoring
Formal Comprehensive Review
 It is conducted at least once a year.
 Performance is reviewed for the period.

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Progress or Periodic review
 Identifies the problems or barrier that hinder effective performance at regular intervals.
 Open communication between superior and subordinate
 Priorities can be rearranged and objectives can be reorganized
Continuous monitoring
 If the system deviates from the plan , one does not have to wait for the next periodic review to
correct it. The superior and the subordinate discuss the situation such that corrective action can
be taken immediately in order to prevent further deviation.
Process of PA
Performance appraisal methods
 With the evolution and development of the appraisal system a number of methods or
techniques of performance appraisal have been developed. They can be classified as
 Traditional method
 Graphic rating scales
 Ranking method
 Paired Comparison Method
 Forced Distribution Method
 Check List Method
 Critical Incident Method
 Essay Appraisal Form
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 Modern method
 BARS (Behaviourally Anchored Rating Scales)
 Assessment centres
 Management By Objective
 Psychological Appraisal
 360-Degree Feedback
Problems of Performance Appraisal
 Halo effect- one trait
 The Error of Central tendency
 Rating all in the middle – avoid both extremes of scale
 The leniency and strictness – liberal rating
 Personal prejudices - dislikes
 Recent effect
 Recent action
 Negative rating
 Less reliability and validity
How to minimize the problems
The problems of performance appraisal can be minimized through the following means:
 By covering an open meeting with the appraisers and discussing the performance of the
manager before an after performance review discussions.
 By encouraging every one to comment on each other‘s achievements and area requiring
improvement.
 The appraiser should be objective and speak the truth.
 By conducting counselling meeting with the managers to appraise them of their performance
and consequences.
2.9 Balanced Scorecard
 New Approach to strategic management was developed in the early 1990‘s
 Dr.Robert Kaplan, David Norton ( HBS)
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 Recognizing the weakness and vagueness of previous management approaches
 This approach provides a clear prescription as what companies should measure in order to
balance the financial, customer , learning & growth and internal business process
 The balance scorecard is a management system that enables organizations to clarify their
vision and strategy and translate them into action
 It provides feedback around both internal business process and external outcomes in order to
continuously improve strategic performance & results
 Companies must make to create future value through investment in customers, suppliers,
employees, process, technology, innovation
 The balance scorecard suggests that we view organization from four perspectives and to
develop metrics, collect data and analyze it relative to each of these perspectives
1. Learning & Growth Perspective
 Includes employee training, corporate cultural attitudes related to both individual & corporate
self improvement
 In knowledge- worker org , People – the only repository of knowledge are the main resource in
the current climate of rapid change in technology
 Knowledge workers has be put in continuous learning process
 They constitute the essential foundation for any success of organization
 Learning is more than training
2. Business Process Perspective
 Refers to internal business process
 Allows the managers to know how well their business is running and whether its products and
services conform to customer requirements
 Designed by person who know the process intimately
Two kinds of business process
 Mission oriented processes
 Support processes - benchmark
3. Customer Perspective
 Realized the importance of customer focus and customer satisfaction
 Poor performance in this perspective indicates the future decline

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 Developing metrics for satisfaction – customers should be analyzed in terms of kinds of

customer, kind of process which we are providing a product or service to those customer
groups
4.Financial Perspective
 Timely & accurate funding data will always be a priority
 Enough handling and processing of financial data
 With the implementation of a corporate database, more process can be centralized and
automated
 Risk assessment and cost- benefit data also should be added
2.10 Feedback
 Feedback is a planned, systematic intervention in the life of an individual -who is capable of

choosing the goal and the direction of his own development.
 Thus the purpose of counselling is to help the employee become aware of his own
performance, his strengths and weaknesses, opportunities available for performance
development and the threats in the form of technological change etc.
360-Degree Feedback
 360-degree appraisal is basically a Multi-rater appraisal and feedback system. In this system,
the employee is assessed periodically (once in a year and sometimes even half yearly) by a
number of assessors including his
 Supervisor
 immediate subordinates
 Colleagues
 internal customers and
 external customers
Importance of 360-degree feedback
 A 360-degree evaluation is valuable because people don‘t act the same towards everyone.
 Another important aspect of 360-degree feedback is the inclusion of self-evaluations – think

about Strength, weakness
 360-degree feedback evaluations have the advantage of confidentiality
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 360-degree feedbacks are known as multi-rater assessments since the number of evaluations is
increased to include peers, supervisor and subordinates to offer a more balanced and
comprehensive view and improve the quality of performance measures.
 Benefits both the organization but also to appraise
Objectives Of 360-Degree Feedback
 Insight into the strong and weak areas of the candidate in terms of the effective performance of
roles, activities, styles, traits, qualities, competencies knowledge, attitudes and skills, impact
on others and the like.
 Identification of developmental needs and preparing developmental plans more objectively in

relation to current or future roles and performance improvements for an individual or a group
of individuals.
 Data generation to serve as a more objective basis for rewards and other personnel decisions.
 Alignment of individual and group goals with organizational vision, values and goals.
 Reinforcement of other change management efforts and organization effectiveness directed

interventions.
Appraisers
 The appraiser may be any person who has thorough knowledge about the job contents to be
appraised. The appraiser should be capable of determining what is more important and what is
relatively less important. He should prepare reports and make judgments without bias.
 Supervisors
 Familiarity
 Responsibility
 Linking T &D
 Peers- contribution, reliability, initiative, interpersonal effectiveness
 Subordinates
 Self Appraisal - MBO
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360-Degree Feedback
Steps
 The assessment is made in a questionnaire specially designed to measure behaviours

considered as critical for performance
 Others do the Appraisal anonymously and the assessment is collected by an external agent
(consultant) or specially designated internal agent (for example the HR Department).
 The assessment is consolidated. Feedback profiles are prepared and given to the employee.
 This type of multi-perspective evaluation is more complete and accurate than the traditional
top-down evaluation
360-degree feedback can be used for
 Self development and individual counselling
 Part of organized training and development
 Team building
 Performance management
 Strategic or organization development
 Validation of training and other initiatives

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 Fixing Remuneration
Advantages of 360-Degree Feedback
 It is more objective than a one-person assessment of traits and qualities.
 It adds objectivity and supplements the traditional appraisal system.
 It is more participative and enhances the quality of HR decisions.
 It is suitable for new organizational cultures being promoted by most world-class

organizations (participative culture, learning culture, quality culture teamwork, leadership
culture etc)
 Provides quality and large quantity of detailed information about a person.
 It has morale boosting effect
Phases of Feedback Exercises
 Orientation
 Questionnaire distribution
 Monitoring & following up
 Data feeding and reports
 Counselling
2.11 Career Management
Career management is the combination of structured planning and the active management
choice of one's own professional career. The outcome of successful career management should
include personal fulfillment, work/life balance, goal achievement and financial security
Career stages
1. Entry to the organization when the individual can begin the process of self-directed career planning.
2. Progress within particular areas of work where skills and potential are developed through
experience, training, coaching, mentoring and performance management.
3. Mid-career when some people will still have good career prospects while others may have got as far
as they are going to get, or at least feel that they have. It is necessary to ensure that these ‗plateaued‘
people do not lose interest at this stage by taking such steps as providing them with cross-functional
moves, job rotation, special assignments, recognition and rewards for effective performance, etc.
4. Later career when individuals may have settled down at whatever level they have reached but are
beginning to be concerned about the future. They need to be treated with respect as people who are
still making a contribution and given opportunities to take on new challenges wherever this is
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possible. They may also need reassurance about their future with the organization and what is to
happen to them when they leave.
5. End of career with the organization – the possibility of phasing disengagement by being given the
chance to work part time for a period before they fi nally have to go should be considered at this stage.
Career development strategy
A career development strategy might include the following activities: a policy of promoting
from within wherever possible; • career routes enabling talented people to move from bottom to top of
the organization, • or laterally in the fi rm, as their development and job opportunities take them;
personal development planning as a major part of the performance management • process, in order to
develop each individual‘s knowledge and skills; systems and processes to achieve sharing and
development of knowledge (especially • tacit) across the fi rm; multi-disciplinary project teams with a
shifting membership in order to offer develop- • mental opportunities for as wide a range of
employees as possible.
Career management activities
As described by Hirsh and Carter (2002), career management encompasses recruitment, per-
sonal development plans, lateral moves, special assignments at home or abroad, development
positions, career bridges, lateral moves and support for employees who want to develop.
Career management practices 1. Postings regarding internal job openings.
2. Formal education as part of career development.
3. Performance appraisal as a basis for career planning.
4. Career counselling by manager.
5. Lateral moves to create cross-functional experience.
6. Career counselling by HR department.
7. Retirement preparation programmes.
8. Succession planning.
9. Formal mentoring.
10. Common career paths.
11. Dual ladder career paths (parallel hierarchy for professional staff).
12. Books and/or pamphlets on career issues.
13. Written personal career planning (as done by the organization or personally).
14. Assessment centres.
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15. Peer appraisal.
16. Career workshops.
17. Upward (subordinate) appraisal.
The process of career management
Career planning
Career planning involves the defi nition of career paths – the routes people can take to advance
their careers within an organization. It uses all the information provided by the organization‘s
assessments of requirements, the assessments of performance and potential and management
succession plans, and translates it into the form of individual career development programmes and
general arrangements for management development, career counselling and mentoring.
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CHAPTER-3
CONCEPT OF MANAGERIAL EFFECTIVENESS
3.1 Concept of Managerial Effectiveness
 Definition :Managerial effectiveness is made measurable, verifiable, operational and more

specific with the help of effectiveness areas, standards and objectives
 Describing managerial effectiveness is in terms of effectiveness areas, effectiveness standards

and objectives.
 Effectiveness areas indicate general output requirements of managerial position.
 The idea of effectiveness is based on the view that all managerial positions are best seen in
terms of the output associated with it.
 For e.g., the areas could be in terms of sales level, production level, inventory control, best
utilization of resources etc., the effectiveness areas emanate from the strategy of the firm to
make its organizational structure operational.
 The effectiveness areas are divided into sub-division
 Effectiveness areas can be broken down into effectiveness standards.
 When effectiveness standards are made more specific, they are called objectives.
 Objectives have time limits and numerical values are attached to them
3.2 Measuring managerial effectiveness
 Managerial effectiveness is measured through comparing the actual standard set with the
achieved standard.
 Both the standards will match perfectly provided the managers prove to be an effective
delegator, frank and fearless, well-defined, award subordinates for good job, pro-active,
innovative, energetic and adaptive in approach.
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3.3 Methods of Measuring Managerial Effectiveness
1.The Person, Process, Product Approaches – Bridging the gap
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2.Managerial Grid
 A graphic presentation of a two dimensional view of leadership style has been developed by
Blake and Mouton
 They proposed a Managerial Grid based on the styles of ‘concern for people’ and ‘concern
for production’
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The grid identified five basic styles of leadership.
 The 9,1 (task management) leader is primarily concerned with production and has little
concern of people. This person believes in getting work done at all costs.
 The 1,9 (country club management) leader is primarily concerned with people.
 The 5,5 (middle of the road management) leader represents a moderate concern for both.
 The 9,9 (team management) style demonstrates high concern for both production and people
and is therefore the ideal approach to leadership.
 The 1,1 ( impoverished management) has minimum concern for people and production.
 The model is useful to managers in as much as it helps them identify their current styles and
develop the most desirable style.
 It seems unlikely that the 9,9 management style is appropriate for organizations experiencing
different growth rates, labour relations, competition, and a host of other differentiating
problems
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GLOBAL MEASURES OF MANAGERIAL EFFECTIVENESS
Managerial Effectiveness an also be measured through
 Supervisory rankings
 Salary
 Hierarchical position
Strengths of such a measurement
 Period of assessment is long, so it is fairly stable.
 It can be used for validation.
 Close monitoring by supervisor is there.
 Peer rankings form a basis of comparison.
Weaknesses-It suffers from deficiency
 Measures only a small portion of variance caused by behaviour
 Variations are dependent on many other factors
 Some factors are not controllable by managers.
 Subjective criteria need to be relied on.
Example : In General Electric Company the evaluator evaluates effectiveness based on
 Absence rate
 Separation rate
 Medical leave
 Disciplinary actions
 Suggestion submitted
 Grievance
Certain other Industries
 Use observations.
 Use tests.
 Use correlation measurements.
 Personality inventories.- emotional stability, sociability, general activity

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 Leadership ability test
3.4 Current Industrial and Government Practices in the Management of Managerial

Effectiveness
 The government and industries have adopted certain practices to ensure the effectiveness of
managers which involves
 completion of work on time
 effective and efficient output
 management of knowledge and information
 careful preparations of meetings and
 presentations and follow-up with deviations and corrections to ensure that agreements
and commitments have been fulfilled.
1. Sets up procedures to ensure high quality of work (e.g., review meetings).
2. Arrange for training and executive development programs
3. Involvement in career development program of its employees.
4. Monitor the quality of work through performance appraisal.
5. Verification of information through feedback.
6. Checking the accuracy of one‘s own and others‘ work.
7. Developing and using systems to organize and keep track of information or work progress.
8. Carefully preparing for meetings and presentations.
9. Organizing information or materials for others.
10. Carefully reviewing and checking the accuracy of information in work reports (e.g.,
production, sales, financial performance) provided by management, management information
systems, or other individuals and groups.`
Some other areas, which require attention of both the government and the industries in the
management of managerial effectiveness
1. Developing Initiative
 Drive : High motivation for work and also encourage others to work towards a common goal.
 Energy : Enthusiastic in work place.
 Self-starter : Does jobs proactively and seizes the opportunities.
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2.Encouraging self management approach
 Team player : Works in a team, supports and encourages team members.
 Leader : Defines goals and standards of performance, delegates and allocates work according
to abilities.
 Develops subordinates : Identifies, train and involves people in all activities.
 Individual / Disciplined : Maintains decorum of the workplace, has respect for seniors and
juniors
3.Facilitating appropriate Communication
 Articulate / expressive: Can communicate (verbal & written) in a fashion, which is

understood and appreciated by people.
 Persuasive/ winning : Sticks to a problem until it is resolved.
 Supportive : Supports subordinates in their work.
 Confident : Has confidence in his values and action
The skills and competencies of their managers would help them perform better in certain core
areas like:
 Ability to plan : Formulate, plans and business goals.
 Organize : Divide jobs into logical entities.
 Execute : Works according to plans.
 Meet Deadlines : Follow a strict schedule and completes a job.
Adoption of Skills by Managers for Effective Management of Corporate
 Certain skills should be practiced and developed by the managers in order to efficiently
perform their responsibilities in a competitive driven business environment.
1. Problem solving:
 Identifies the specific information needed to clarify a situation or to make a decision.
 Gets more complete and accurate information by checking the multiple sources.
 Probes skilfully to get at the facts, when others are reluctant/unwilling to provide full, detailed
information.
 Routinely walks around to see how people are doing and to hear about any problems they are
encountering.
 Questions others to assess whether they have thought through a plan of action.
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 Questions others to assess their confidence in solving a problem or tackling a situation.
 Asks questions to clarify a situation.
 Seeks the perspective of everyone involved in a situation.
 Seeks out knowledgeable people to obtain information or clarify a problem.
2. Analytical thinking: The ability to tackle a problem by using a logical, systematic, sequential
approach.
 Makes a systematic comparison of two or more alternatives.
 Notices discrepancies and inconsistencies in available information.
 Identifies a set of features, parameters or considerations to take into account, in analyzing a

situation or making a decision.
 Approaches a complex task or problem by breaking it down into its component parts and
considering each part in detail.
 Weigh the costs, benefits, risks and chances for success, in making a decision.
 Identifies many possible causes for a problem.
 Carefully weighs the priority of things to be done.
3. Forward thinking: The ability to anticipate the implications and consequences of situations and
take appropriate action to be prepared for possible contingencies.
 Anticipates possible problems and develops contingency plans in advance.
 Notices trends in the industry or market place and develops plans to prepare for opportunities
or problems.
 Anticipates the consequences of situations and plans accordingly.
 Anticipates how individuals and groups will react to situations and information and plans
accordingly.
4. Conceptual thinking: The ability to find effective solutions by taking a holistic, abstract, for
theoretical perspective.
 Notices similarities between different unrelated situations.
 Quickly identifies the central or underlying issues in a complex situation.
 Creates a graphic diagram showing a systems view of a situation.
 Develops analogies or metaphors/ descriptions to explain a situation.
 Applies a theoretical framework to understand a specific situation.

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 Adjusts behavior, strategies according to changing environment and circumstances.
 Goes beyond conventional thinking and produces imaginative or unique response to a problem
5. Strategic thinking: The ability to analyze the organization‘s competitive position by considering
market and industry trends, existing and potential customers (internal and external), and strengths and
weaknesses as compared to competitors.
 Understands the organization‘s strengths and weaknesses as compared to competitors.
 Understands the industry and market trends affecting the organization‘s competitiveness.
 Has an in-depth understanding of competitive products and services available within the
marketplace.
 Develops and proposes a long term (3-5 year) strategy for the organization based on an
analysis of the industry and marketplace and the organization‘s current and potential
capabilities to other competitors.
6. Technical expertise: The ability to demonstrate depth of knowledge and skill in a technical area.
 Effectively applies technical knowledge to solve a range of problems.
 Possesses an in-depth knowledge and skill in a technical area.
 Develops technical solutions to new or highly complex problems that cannot be solved using
existing methods or approaches.
 Is sought out as an expert to provide advice or solutions in his/her technical specialization
 Keeps informed about cutting-edge technology in his/her technical area.
7. Entrepreneurial orientation: The ability to look for and seize profitable business opportunities;
willingness to take calculated risks to achieve business goals.
 Notices and seizes profitable business opportunities.
 Stays abreast of business, industry and market information that may reveal many business
opportunities.
 Demonstrates willingness to take calculated risks to achieve business goals.
 Proposes innovative business deals to potential customers, suppliers and business partners.
 Encourages and supports entrepreneurial behavior in others
8. Fostering innovation: The ability to develop, sponsors, or support the introduction of new and
improved method, products, procedures, or technologies.
 Personally develops a new product or service, process or approach, methods and technologies.
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 Supports the development of new products, services, methods or procedures.
 Develops better, faster, or less expensive ways to do things.
 Works cooperatively with others to produce innovative solutions.
9. Results Orientation: The ability to focus on the desired result of one‘s own or one‘s unit‘s work‘s
setting challenging goals, focusing effort on the goals and meeting or exceeding them.
 Develops challenging but achievable goals.
 Develops clear goals for meetings and projects.
 Maintains commitment to goals in the face of obstacles and frustrations.
 Finds or creates ways to measure performance against set goals.
 Exerts unusual effort over time to achieve a goal.
 Has a strong sense of urgency about solving problems and getting work done.
10. Decisiveness: The ability to make difficult decisions in a timely manner.
 Is willing to make decisions in difficult or ambiguous situations, when time is critical.
 Takes charge of a group when it is necessary to facilitate change, overcome an impasse, face
issues, or ensure that decisions are made.
 Makes tough decisions (e.g., closing a facility, reducing staff, accepting or rejecting a high-
stakes deal).
11.Self Confidence: Faith in one‘s ideas and capability to be successful; willingness to take an
independent position in the face of any opposition.
 Is confident of own ability to accomplish goals.
 Presents oneself impressively
 Is willing to speak up to the right person or group at the right time, when he/she disagrees with
a decision or strategy.
 Approaches challenging tasks with a ―can-do‖ attitude.
12. Stress Management: The ability to keep functioning effectively when under pressure and
maintain self control in the face of hostility or provocation/ frustration.
 Remains calm under stress.
 Can effectively handle several problems or tasks at once.
 Controls his/her response when criticized, attacked or provoked.
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 Maintains a sense of humor under difficult circumstances.
 Manages own behaviour to prevent or reduce feelings of stress.
13. Personality Credibility: Demonstrated concern that one be perceived as responsible, reliable and
trustworthy.
 Does what he/she commits to doing.
 Respects the confidentiality of information or concerns shared by others.
 Is honest and forthright/direct with people.
 Carries his/her fair share of the workload.
 Takes responsibility for own mistakes; does not blame others.
 Conveys a command of the relevant facts and information.
14. Flexibility: Openness to different and new ways of doing things; willingness to modify one‘s
preferred way of doing things.
 Is able to see the merits of perspectives other than his/her own.
 Demonstrates openness to new organizational structure, procedures and technology.
 Switches to a different strategy when an initially selected one is unsuccessful.
 Demonstrates a willingness to modify a strongly held position in the face of contrary evidence.
3.5 Effective Manager as an Optimizer
 Effective manager focuses on what he is doing and efficiency deals with how well he does
with minimum wastage of resources.
 Since managers deal with input resource that is scarce such as money, people, equipment, and
time, they should be more concerned about its efficient utility, minimizing resource cost and
optimizing the output.
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 According to Campbell, in his behavioural approach, effective manager is said to be an

optimizer in utilizing all available and potential resources.
 Effective managerial job behaviour talks about as "any set of managerial actions believed to be
optimal for identifying, assimilating/ incorporating and utilizing both internal and external
resources towards the functioning of the organizational unit and sustaining in the long run, for
which a manager has high degree of responsibility‖.
 Therefore effective manager is expected to work as an optimizer by focusing on low waste and
high goal attainment
 Effective managers do differently from their less-effective counterparts.
 Have high concern for people and productivity
 Effective managers are able to communicate
 Spend Time in Managing
 Using General Style
 Allow Employees to Influence them
 Have influence upward
 Minimize Status Differences
Spend Time Managing

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The effective manager spend most of their time manager . That is they spend most of
their time identifying opportunity for improvement, locating problems, training subordinates ,
developing contacts with other in the organization, working through inter- unit differences .
Manager as a Optimizer
The actions he is to take will arise from the answers a manager gives to these questions.
 What is my potential contribution?

 What are my objectives?
 What does it take to be effective here?
 What needs changing?
 What is organization‘s philosophy
 What can I do now?
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CHAPTER-4
ENVIRONMENTAL ISSUES IN MANAGERIAL EFFECTIVENESS
4.1 Organisational Processes
Managerial Effectiveness Developed Through Organizational Interventions
 Organizational development (OD) it is a term used to encompass a collection of planned-

change interventions, built on humanistic-democratic values, that seek to improve
organizational effectiveness and employee well being.
OD Values
 Respect for employees
 Trust and support
 Power equalization
 Participation
OD Interventions Techniques
 Sensitivity Training
 Refer to a method of changing behaviour through unstructured group interaction.
 The group is process-oriented, which means that individuals learn through observing and
participating rather than being told.
 The objectives of the T-groups are to provide the subjects with increased awareness of their
own behaviour and how others perceive them, greater sensitivity to the behaviour of others,
and increased understanding of group processes.
Results
 Increased ability to empathize with other, improved listening skills, greater openness,
increased tolerance of individual differences, and improved conflict resolution skills
Survey Feedback
 One tool for assessing attitudes held by organizational members, identifying discrepancies
among member perceptions, solving differences is the survey feedback approach.
 The questionnaire typically asks members for their perceptions and attitudes on a broad range
of topics, including decision making practices; communication effectiveness; coordination
between units; and satisfaction with organization, job, peers, and their immediate supervisor.
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Process Consultation
 Managers often sense that their unit‘s performance can be improved, but they are unable to
identify what can be improved and how it can be improved.
 The purpose of process consultation is for an outside consultant to assist a client, usually a
manager, ―to perceive, understand, and act upon process events‖ with which he or she must
deal.
 Consultants in PC are there to ―give the client ‗insight‘ into what is going on around him,
within him, and between him and other people.‖ They do not solve the organization‘s
problems.
 Rather, the consultant is a guide or each who advises on the process to help the client solve his
or her own problems.
Team Building
 Team building can be applied within groups or at the inter group level where activities are
interdependent.
 The objective is to improve coordinative efforts of team members, which will result in
increasing the group‘s performance.
 The activities considered in team building typically include goal setting, development of
interpersonal relations among team members, role analysis to clarify each member‘s role and
responsibilities, and team process analysis.
Inter-group Development
 Inter-group development seeks to change the attitudes, stereotypes, and perceptions that
groups have of each other.
 Each group meet independently to develop lists of its perception of itself, the other group, and
how it believes the other group perceives it.
4.2 Organisational Climate
Organizational climate (sometimes known as Corporate Climate) is the process of

quantifying the ―culture‖ of an organization, it precedes the notion of organizational culture.
There are two difficulties in defining organization climate: how to define climate, and how to
measure it effectively on different levels of analysis. Furthermore, there are several approaches to the
concept of climate. Two in particular have received substantial patronage: the cognitive schema
approach and the shared perception approach.
The cognitive schema approach regards the concept of climate as an individual perception and
cognitive representation of the work environment. From this perspective climate assessments should
be conducted at an individual level.
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The shared perception approach emphasizes the importance of shared perceptions as

underpinning the notion of climate.[3] Organisational climate has also been defined as "the shared
perception of the way things are around here".[4] There is great deal of overlap in the two approaches..
Features of organisational climate
 Organisational climate is an abstract and intangible concept. But it exercises a significant

impact on the behaviour and performance of organisational members.
 It is the perceived aspect of organisational internal environment.
 It refers to the relatively enduring characteristics which remain stable over a period of time.
 It gives a distinct identity to organisation and do difference from one to other organisations.
 Total expression of what the organisation is all about.
 It provide the view of people behaviour about the organisation.
 It's a multi- dimensional concept .
Elements of organisational climate
Individual autonomy-It implies the degree to which employees are free to manage themselves, have
considerable decisionmaking power and are not continuously accountable to higher management.
Position structure-The degree to which objectives of jobs and methods for accomplishing it are
established and communicated to the employees.
Reward orientation-It means the degree to which an organisation rewards individuals for hard work or
achievement. It is high when an organisation orients people to perform better and rewards them for do
the work.
Task orientation-If the management is task oriented , the leadership style will be automatic do the
work.
Relations orientation or consideration-The organisational climate will be considerate and supportive if

the managers are Relation- oriented while dealing with employees. Employee needs are very
important in any organisations. This will give motivation to employees.
Job satisfaction-Employee satisfaction are very important for any organisation, and it is very
important in organisational climate. It gives motivation to employees to work more and more.
Morale-It gives attitudes and sentiments of organisational members towards the organisation
members. If it is high , there will be an atmoshphere of cooperation in the organisation. But if the
morale is low, there will be conflicts between employees.
Control-Having full control over the workers. Control is either two types either flexible or flexible.
Factors Affecting Organizational Climate and Retention
Organisational change-Change refers to new reporting relationships, responsibilities, procedures,

policies, equipment, tools, and/or software used on the job. Think about how an organization or work
unit responds to change as a whole, rather than how individuals respond. Communication.
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Service-Service is defined as meeting the needs and expectations of the persons (children, youth and
families) for whom you are performing your work. This does not refer to the management, but the
persons who benefit from the work.
Compensation-Monetary compensation is an employee's gross payroll pay rate and benefits programs
funded by an organization or agency. Flextime and benefits like agency-based childcare are closely
related to compensation.
4.3 Leader
"Leadership is a function of knowing yourself, having a vision that is well communicated, building
trust among colleagues, and taking effective action to realize your own leadership potential."
Prof. Warren Bennis
Types of Leadership Style
• Autocratic:
– Leader makes decisions without reference to anyone else
– High degree of dependency on the leader
– Can create de-motivation and alienation

of staff
– May be valuable in some types of business where decisions need to be made quickly
and decisively
• Democratic:
Encourages decision making

from different perspectives – leadership may be emphasised throughout
the organisation
– Consultative: process of consultation before decisions are taken
– Persuasive: Leader takes decision and seeks to persuade others that the decision
is correct
• Laissez-Faire:
– ‗Let it be‘ – the leadership responsibilities

are shared by all
– Can be very useful in businesses

where creative ideas are important
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– Can be highly motivational,

as people have control over their working life
– Can make coordination and decision making

time-consuming and lacking in overall direction
– Relies on good team work
– Relies on good interpersonal relations
• Paternalistic:
1. Leader acts as a ‗father figure‘

2. Paternalistic leader makes decision but may consult
3. Believes in the need to support staff
4. Theories of Leadership
Early Theories:
Great Man Theories
• Leaders are exceptional people, born with innate qualities, destined to lead
• Term 'man' was intentional - concept was primarily male, military and Western
Trait Theories
• Research on traits or qualities associated with leadership are numerous
• Traits are hard to measure. For example, how do we measure honesty or integrity?
Leadership Traits
Group Exercise:
• Choose leaders YOU admire
• What personality traits and skills do they have?
Traits
• Adaptable to situations
• Alert to social environment
• Ambitious and achievement orientated
• Assertive
• Cooperative
• Decisive
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• Dependable
• Dominant (desire to influence others)
• Energetic (high activity level)
• Persistent
• Self-confident
• Tolerant of stress
• Willing to assume responsibility
Skills
• Clever (intelligent)
• Conceptually skilled
• Creative
• Diplomatic and tactful
• Fluent in speaking
• Knowledgeable about group task
• Organised (administrative ability)
• Persuasive
• Socially skilled
Functional Theories (John Adair, Action Centred Leadership, 1970)
Leader is concerned with the interaction of 3 areas:
• Task – goal setting, methods and process
• Team – effective interaction/communication,

clarify roles, team morale
• Individual – attention to behaviour, feelings,

coaching, CPD
Behaviourist Theories (Blake and Mouton, Managerial grid, 1964)
• Leaders behaviour and actions, rather than their traits and skills e.g. production orientated or
people orientated
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• Different leadership behaviours categorised as ‗leadership styles‘ e.g. autocratic, persuasive,

consultative, democratic
• Doesn‘t provide guide to effective leadership in different situations
Situational/contingency Leadership (Hersey-Blanchard, 1970/80)

Leadership style changes according to the 'situation‗ and in response to the individuals being
managed – their competency and motivation
Transformational Theory (Bass and Avolio, 1994)
• Leaders inspire individuals, develop trust, and encourage creativity and personal growth
• Individuals develop a sense of purpose to benefit the group, organisation or society. This goes
beyond their own self-interests and an exchange of rewards or recognition for effort or loyalty.
4.4 Group Influences
A collection of individuals who have regular contact and frequent interaction, mutual
influence, common feeling of camaraderie, and who work together to achieve a common set of goals.
Group influence
 Group types
 Primary
 Secondary
 Brand community
 Formal v. informal groups
 Aspiration v. dissociative
 Conformity
 Peer pressure
Social Power
Types of power
 Referent
 Legitimate
 Expert
 Reward
 Coercive
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Reference Group Influences
 Types
 Informational
 Utilitarian
 Value-expressive
 Value & Reference groups
 Utilitarian
 Hedonic
Reference Group Influence
What makes people susceptible to group influence?
 Attention to social comparison information
 Separateness-connectedness
 Connected self-schema
 Social influence and embarrassment
Word-of-mouth Marketing
 Characteristics
 Organic
 Amplified
 Cheaper and more influential
 Positive & negative word-of-mouth
 Consumer expertise
 Online capabilities
 Social networking
 Buzz marketing
 Guerilla marketing
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 Ford Focus
 Viral marketing
 Cloverfield
 The Dark Knight
 Stealth marketing
 Tactics
 Opinion leaders
 Characteristics
 Market mavens
 Surrogate consumers
 Rachel on Friends
 Diffusion processes
Household Decision-Making
 Traditional Structure
 Family
 Nuclear
 Extended
 Emerging trends
Household life cycle
 Boomerang kids
 Sandwich generation
 Household Decision-Making
 Purchasing roles
 Influencer
 Gatekeeper
 User
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 Decision-maker
 Purchaser
 Sex roles
 Power of children
 Consumer socialization
4.5 Job Challenge
The Job Challenge Profile (JCP) is a self-assessment that will gauge workplace
challenges and highlights prime learning experiences. This profile can show you or your employees
how to seek, challenge and develop the valuable skills needed within ones professional life.
What does the Job Challenge Profile assess?
There are five clusters of job components that represent major aspects of managerial work:
› Experiencing a job transition
› Creating change
› Managing high levels of responsibility
› Managing boundaries
› Dealing with diversity
Need a change in your career? Accept a new job challenge.

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The benefits of using the Job Challenge Profile:
› Versatile: can be administered to managers and leaders at all levels and organization types
› Quick, easy to understand and administer
› Comprehensive Facilitator‘s Guide
Job assignments are one of the oldest and most important forms of leader development. It can give
you the opportunity to learn by doing, and more importantly, allow you to grow as a leader. But not
every job can help develop leadership, however. It must be something that stretches you, pushes you
out of your comfort zone, and requires you to think and act differently.
Research into what makes a job developmental has identified five broad sources of challenge related
to learning:
1. Job transitions. A change in work role – whether change in content, level of responsibility or
location – requires you to handle responsibilities that are in some way unfamiliar and where the
usual routines and behaviors are no longer adequate.
2. Creating change. Jobs that require you to create change call for actions and decisions in the face
of uncertainty and ambiguity. You are responsible for new directions, must address inherited
problems and face problems with employees who are dealing with change.
3. High levels of responsibility. Assignments with high levels of responsibility have greater breadth,
visibility and complexity; they also expose you to pressure and high-stakes decisions.
4. Managing boundaries. Most leaders are accustomed to managing downward. In situations where
you must work across lateral boundaries your new challenge is to work with people over whom
you have no formal or direct authority.
5. Dealing with diversity. Most organizations are experiencing rapid and substantial increases in
diversity, not only in the domestic workforce but also in the demands of operating in the global
arena. This requires you to learn to work with and manage people from different cultures or
countries as well as with people of both genders and of different racial and ethnic backgrounds.
4.6 Competition
From a managerial perspective, competition generally falls into the external environment, though it
can also take shape in the internal environment through rivalry between strategic business units
(SBUs). For managers, understanding the external competitive landscape is a critical factor in
assessing company strategies and benchmarking appropriately to ensure the competitiveness of the
firm. Businesses that fail to keep pace with their rivals will eventually be overpowered and often
forced to develop an exit strategy.
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Avoiding the risks of competitive factors demands a strong understanding of operational efficiency
(low cost), quality production, differentiation, and competitive advantage or who you target and
whether or not you have a cost or quality advantage (see figure below).
Cost vs. quality
Companies generally achieve either a cost or a quality advantage (very rarely, both).
Low-Cost and Branding
The simplest perspective on competition is in industries where products are homogeneous (or very
alike). In such a situation, companies compete directly. For example, bottled-water producers are
directly involved in such a framework and thus adopt two basic competitive strategies: low-cost and
branding.
Low-cost suppliers find ways to optimize their production and distribution to offer consumers the
lowest possible price on one bottle of water. Low-cost suppliers often benefit largely from economies
of scale. Branding, on the other hand, aims to convince the consumer that a higher price point is worth
paying based upon the company's name, reputation, or other distinguishing characteristic. For
example, Dasani brand water costs more than generic store brand water, despite being essentially the
same product. Commercials, aesthetic presentation, goodwill, and factors other than price may then
influence a consumer's purchasing decision.
Differentiation
Most products and services are not homogeneous, however, allowing incumbents in an industry to
compete with one another by means of various competitive strategies. Differentiation is a competitive
tactic wherein companies approach certain niche needs within an industry to capture a segment of the
market share.
An example of differentiation might be cereal. There are hundreds of different kinds of cereals. The
need being filled is sustenance: people need to eat. The producers of these cereals use differentiation
to capture a share of the cereal market: some brands focus on their organic nature, others their sugary
appeal, and still others on being "cool." Branding plays an important role here as well, though
assessing niche consumer needs and filling them is the principal focus.
Quality
Finally, there is the potential to compete externally based upon quality. Toyota makes both the Corolla
and the Lexus, thereby targeting both ordinary automobile drivers and those in the luxury-car
consumer bracket. Quality competitive strategies, while related to branding, provide a particular level
of quality to capture a specific income or interest demographic. The opportunity cost of efficiency is
associated with quality, which generally sees higher price points. Quality is therefore a strong
antithesis to the low-cost strategy.
Internal Competition
Businesses also compete internally, an intrinsically complex issue. On the surface, internal
competition involves either direct product substitutes or funding competition (among different
business units). An example of internal competition is PepsiCo. Pepsi makes both colas and sports
drinks, all of which sit on the shelf next to one another. When a customer sees the sports drink and
chooses it over the cola, the cola has lost a sale to an internal competitor. Pepsi, however, did not lose
a sale; it merely lost one segment of the business while gaining another.
With these points in mind, managers must thoroughly understand the products they are pitching and
which strategy will help them avoid going toe-to-toe with other businesses with whom they cannot
compete. Starting up a car manufacturing business to compete with Hyundai in the low-cost market is
extremely difficult, as Hyundai has economies of scale in place that will almost always beat smaller
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competition on a low-cost strategy. This example illustrates an extremely important point in business:
rely on strengths. Managers must understand their own competitive advantage (what they do better
than the competition) to adopt the appropriate competitive strategy to gain market share and remain
profitable
4.7 Managerial Styles

6 Management Styles
According to Hay-McBer there are six key leadership or management styles.
DIRECTIVE
The DIRECTIVE (Coercive) style has the primary objective of immediate compliance from
employees:
 The ―do it the way I tell you‖ manager
 Closely controls employees
 Motivates by threats and discipline
Effective when:
 There is a crisis
 When deviations are risky
Not effective when:

 Employees are underdeveloped – little learning happens with this style
 Employees are highly skilled – they become frustrated and resentful at the micromanaging.
AUTHORITATIVE
The AUTHORITATIVE (Visionary) style has the primary objective of providing long-term direction
and vision for employees:
 The ―firm but fair‖ manager
 Gives employees clear direction
 Motivates by persuasion and feedback on task performance
Effective when:
 Clear directions and standards needed
 The leader is credible
Ineffective when:
 Employees are underdeveloped – they need guidance on what to do
 The leader is not credible – people won‘t follow your vision if they don‘t believe in it
AFFILIATIVE
The AFFILIATIVE style has the primary objective of creating harmony among employees and
between manager and employees:
 The ―people first, task second‖ manager
 Avoids conflict and emphasizes good personal relationships among employees
 Motivates by trying to keep people happy
Effective when:
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 Used with other styles

 Tasks routine, performance adequate
 Counselling, helping
 Managing conflict
Least effective when:
 Performance is inadequate – affiliation does not emphasise performance
 There are crisis situations needing direction
PARTICIPATIVE
The PARTICIPATIVE (Democratic) style has the primary objective of building commitment and
consensus among employees:
 The ―everyone has input‖ manager
 Encourages employee input in decision making
 Motivates by rewarding team effort
Effective when:
 Employees working together
 Staff have experience and credibility
 Steady working environment
 Employees must be coordinated
 There is a crisis – no time for meetings
 There is a lack of competency – close supervision required
PACESETTING
The PACESETTING style has the primary objective of accomplishing tasks to a high standard of
excellence:
 The ―do it myself‖ manager
 Performs many tasks personally and expects employees to follow his/her example
 Motivates by setting high standards and expects self-direction from employees
Effective when:
 People are highly motivated, competent
 Little direction/coordination required
 When managing experts
 When workload requires assistance from others
 When development, coaching & coordination required
COACHING
The COACHING style has the primary objective of long-term professional development of
employees:
 The ―developmental‖ manager
 Helps and encourages employees to develop their strengths and improve their performance
 Motivates by providing opportunities for professional development
Effective when:
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 Skill needs to be developed

 Employees are motivated and wanting development
Ineffective when:
 The leader lacks expertise
 When performance discrepancy is too great – coaching managers may persist rather than
exit a poor performer
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CHAPTER-5
DEVELOPING THE WINNING EDGE
5.1 Organisational and Managerial Efforts
Sustaining success depends on an organization‘s ability to adapt to a changing environment – whether

it‘s an external change, such as a transformative technology or a changing economy.
Unfortunately, 70% of organizational transformations fail. Why? Because too many crucial elements
in the change process are skipped.
Sometimes we wrongly assume that change is all about improving financial results – stock price,
profitability, sales. We forget that successful transformation also generates ―soft‖ benefits, such as
trust, new organizational capabilities, and emotional commitment among employees.
But even if we strive for financial and non-financial results, additional perils await: painful emotions
that boil up in our workforces whenever we ask people to think or do things differently. Whether it‘s
anger, alarm, or confusion, we must ease those feelings by cultivating an environment of trust,
involvement and empowerment.
Nothing about leading change is easy.
Urgency-An organizational burning platform exists when maintaining the status quo becomes
prohibitively expensive. Major change is always costly, but when the present course of action is even
more expensive, a burning-platform situation erupts.
Create a sense of urgency based on the company‘s financial performance, competitive situation,
market position, technological trends – create a burning platform: What will happen if we don‘t react
now?
Compelling change story-Management need to be able to tell a compelling change story that motivate
employees. But before you you get buy-in, people need to feel the problem.
People aren‘t going to consider anything until they are convinced there is a problem that truly needs to
be addressed.
Current strategy-When dealing with change management it is often required to have a closer look at
the current strategy.
Vision and values-Successful change is hinged on a picture of a desirable future. Vision can provide
both a corporate sense of being and a sense of enduring purpose. Without a sensible vision, change
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efforts can dissolve into a list of confusing projects that take the organization in the wrong direction. It
is important that the vision be easy to communicate. Create a shared vision, values and common
directions.
Communicate-Communicate this information broadly and dramatically, especially with respect to

crises, potential crises etc. To successfully implement change initiatives, organizational leaders must
identify the need for change and communicate it throughout the organization.
Create a dialog-Involving employees right from the start, where they have influence in the strategic
plan of the organization, tends to reduce employees‘ resistance, which is always a very important
factor in the success of any organizational change.
Culture-All change in organizations is challenging, but perhaps the most daunting is changing culture.
Whenever possible use storytelling – storytelling can be a powerful tool when you want to drive
organizational change.
Visualize the ―journey‖-Not only is it easier to communicate something using a picture, but it‘s also
much easier for people to remember things that have been communicated to them visually. People
remember 10% of what they hear, 20% of what they read and 80% of what they see and do.
Measure-Measurement should be considered during the planning of change and before any action is
undertaken. Measure early and often and tell about it Without measures of success, the organization
does not know if it has succeeded in its efforts. Someone once said, ―What gets measured gets
improved.‖ Someone else said, ―If you don‘t know where you are going, any road will get you there.‖
Create wins-It is critical for teams and individuals working on change to achieve small wins regularly.
So if you want something to grow, don‘t forget to pour champagne on it.
Align performance management-Align performance management processes to drive desired behavior

changes Lookout for inconsistencies-Continuously lookout for inconsistencies – Deal proactively with
resistance
5.2 Self Development
Personal development is a lifelong process. It's a way for people to assess their skills and
qualities, consider their aims in life and set goals in order to realise and maximise their potential.
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15 Personal Development Strategy Tips

A personal development strategy begins with a simple premise: your development is your
responsibility.
At heart we probably know this to be the case, yet how often do we sit back waiting for that
development to be put on a plate for us. For a lucky few things might fall into place easily, but for
most of us that will not be the case.
So why not decide that you‘re going to make your own development a priority, rather than leaving
things to chance.
Here we suggest 15 tips to help you think about your own personal development strategy. In doing so
we propose that you think more widely about how you‘d like to develop. Don‘t limit your thinking to
just the work you‘re currently doing.
For a happy manager, development is much wider than job specific training, it should be about you
career and about your life.
Here are 15 tips to help you develop your own personal development strategy:
1. Make your own development your number 1 priority.
2. Spend more time developing as a person than developing as a manager.
3. Imagine you had to make the case to yourself regarding the development you need.
What would it take to convince you to invest?
4. Give yourself a self-appraisal. (see our article: self-performance appraisal for some
useful questions to ask yourself)
5. Choose how you want to develop, rather than conform to whatever an organization
might tell you to do. In some cases they may be one and the same – but the difference
is that you choose to do it!
6. Spend much more time on getting better at what you‘re good at, than struggling to
improve your weaknesses.
7. Identify some specific strengths you have and commit to getting even better at them.
8. What do you aspire to do/be?
9. Make the ―ordinary‖ part of your development – what happens in your normal day‘s
work that can help you to develop?
10. Choose something you do, then try to do it to the best of your ability.
11. Take real pride in something that you do.
12. Take on an ordinary project and find something extra-ordinary in it – try to make a real
impact.
13. Vary your learning diet. Experience bite-size learning, the small learning snacks just
when you need them. But make sure you also experience the breadth of learning from a
longer, more measured, ―learning‖ meal taken regularly.
14. Cultivate a healthy dissatisfaction with how things are. If you are to improve you need
to have some dissatisfaction with your current abilities. Be careful that your motive
here is to improve, not to become frustrated or cynical.
15. Learn more about what you really enjoy doing.
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5.3 Negotiation Skills
Negotiation is a method by which people settle differences - explore the stages of negotiation and
learn how to improve your negotiating skills.
These skills include:

 Effective verbal communication. See our pages: Verbal Communication and
Effective Speaking.
 Listening. ...
 Reducing misunderstandings is a key part of effective negotiation. ...
 Rapport Building. ...
 Problem Solving. ...
 Decision Making. ...
 Assertiveness. ...
 Dealing with Difficult Situations.
Problem Analysis
Effective negotiators must have the skills to analyze a problem to determine the interests of
each party in the negotiation. A detailed problem analysis identifies the issue, the interested parties
and the outcome goals. For example, in an employer and employee contract negotiation, the problem
or area where the parties disagree may be in salary or benefits. Identifying the issues for both sides
can help to find a compromise for all parties.
Preparation
Before entering a bargaining meeting, the skilled negotiator prepares for the meeting.
Preparation includes determining goals, areas for trade and alternatives to the stated goals. In addition,
negotiators study the history of the relationship between the two parties and past negotiations to find
areas of agreement and common goals. Past precedents and outcomes can set the tone for current
negotiations.
Active Listening
Negotiators have the skills to listen actively to the other party during the debate. Active
listening involves the ability to read body language as well as verbal communication. It is important to
listen to the other party to find areas for compromise during the meeting. Instead of spending the bulk
of the time in negotiation expounding the virtues of his viewpoint, the skilled negotiator will spend
more time listening to the other party.
Emotional Control
It is vital that a negotiator have the ability to keep his emotions in check during the
negotiation. While a negotiation on contentious issues can be frustrating, allowing emotions to take
control during the meeting can lead to unfavorable results. For example, a manager frustrated with the
lack of progress during a salary negotiation may concede more than is acceptable to the organization
in an attempt to end the frustration. On the other hand, employees negotiating a pay raise may become
too emotionally involved to accept a compromise with management and take an all or nothing
approach, which breaks down the communication between the two parties.
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Verbal Communication
Negotiators must have the ability to communicate clearly and effectively to the other side
during the negotiation. Misunderstandings can occur if the negotiator does not state his case clearly.
During a bargaining meeting, an effective negotiator must have the skills to state his desired outcome
as well as his reasoning.
Collaboration and Teamwork
Negotiation is not necessarily a one side against another arrangement. Effective negotiators
must have the skills to work together as a team and foster a collaborative atmosphere during
negotiations. Those involved in a negotiation on both sides of the issue must work together to reach an
agreeable solution.
Problem Solving
Individuals with negotiation skills have the ability to seek a variety of solutions to problems.
Instead of focusing on his ultimate goal for the negotiation, the individual with skills can focus on
solving the problem, which may be a breakdown in communication, to benefit both sides of the issue.
Decision Making Ability
Leaders with negotiation skills have the ability to act decisively during a negotiation. It may be
necessary during a bargaining arrangement to agree to a compromise quickly to end a stalemate.
Interpersonal Skills
Effective negotiators have the interpersonal skills to maintain a good working relationship
with those involved in the negotiation. Negotiators with patience and the ability to persuade others
without using manipulation can maintain a positive atmosphere during a difficult negotiation.
Ethics and Reliability
Ethical standards and reliability in an effective negotiator promote a trusting environment for
negotiations. Both sides in a negotiation must trust that the other party will follow through on
promises and agreements. A negotiator must have the skills to execute on his promises after
bargaining ends.
5.4 Development of the Competitive Spirit
In today‘s fast-paced economy competition is an issue of services and products. Much

attention has been directed to a better service and the best product and how this can be achieved
through utilizing the human resources. This research paper identifies the competitive advantage
concepts and models, competitive strategies and the main human resource practices that have a
significant impact on the employee‘s performance. Understanding sources of competitive advantage
has become a major area of research in the field of strategic management. Finally a summary of
practical criteria of best practice for competitive advantage is presented and a general discussion and
recommendations have been drawn.
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When a firm is implementing a value creating strategy not simultaneously being implemented
by any current or potential competitors, then we can say the firm has a Competitive advantage. And
when a firm is implementing a value creating strategy not simultaneously being implemented by any
current or potential competitors and when these other firms are unable to duplicate the benefits of this
strategy, then we can say the firm has a sustained competitive advantage (Barney 1991). There are
two major models that have to be considered. The first one is the position or environmental model and
the second one is the resource-based view model.
The Position or Environmental Model.
In order to achieve a competitive advantage, the firm is required to make a choice about the type of
competitive advantage it seeks to attain and the scope within which it will attain it. Choosing the
competitive scope or the range of the firm‘s activities can play a powerful role in determining
competitive advantage because it aims to establish a profitable and sustainable position against the
forces that determine your industry competition.
Porter 1985 defines the competitive strategy as the positioning of a company in its competitive
environment. Also Porter has posed two important questions:
1. What is the structure or the attractiveness of the industry which the company is in?
2. What is the company‘s position in its competitive environment?
To answer the first question a company, as an organization, should analyze their industry by
focusing on the following points (industrial analysis):
 Begin with understanding your industry.

 Focus attention on significant force.
 Watch out for industry change.
To answer the second question (competitive position), the following question should be asked:
 How does a company achieve superior performance?

To be a superior performer in the engineering industry or any industry, the company must have a
sustainable competitive advantage which its rival cannot copy or duplicate.
The competitive advantage can be sustained in one of the two ways (Porter 1985):-
1. Either the company can be lucky enough to come up with something that its rivals cannot copy
which is very rare, or
2. The company is improving so fast that its rivals can not catch up.
Porter shows that there are five competitive forces which play a major role in the company success or
failure
1. The entry of new competitors,

2. The threat of substitutes,
3. The bargaining power of suppliers,
4. The bargaining power of buyers, and
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5. The rivalry among the existing competitors.
The collective strength of these five competitive forces determines the ability of firms in an industry
to earn on average, a rate of return on investment in excess of the cost of the capital.
Porter also notes that a business can develop a sustainable competitive advantage by following two
strategies; cost leadership strategy or differentiation strategy.
Cost Leadership Strategy: the primary focus of a cost leadership strategy is to achieve low costs
relative to competitors. Lowering costs lead to lowering prices, which can increase demand for
products or services, but if the product or services cannot be produced at a lower cost it also reduces
profit margins. To compete based on cost, managers must address labour, materials, overheads, and
other costs, and to design a system that lowers the cost per unit of the product or service. Often,
lowering costs requires additional investment in automated facilities, equipment and employees skill.
Differentiation Strategy: the primary focus of a differentiation strategy is
Creating uniqueness such that the organization‘s goods and services are clearly
Distinguished from those of its competitors. In other words the focus is on creativity and innovation
which have long been recognized as necessary for bringing the required
change to obtain the competitive advantage
Schuler and Jackson 1987 have emerged from Porter discussion of competitive advantage three
competitive advantage strategies that organizations can use to gain competitive advantage:
Innovation strategy: the primary focus here is developing products or services different from those of
competitors or offering something new and different. A vital component of any innovation strategy is
getting employees to broaden their skills.
Quality enhancement strategy: the primary focus here is enhancing the product and/or services.
Quality enhancement often means changing the processes of production in ways that require workers
to be more involved and more flexible.
Cost reduction strategy: firms typically attempt to gain competitive advantage by being the lowest
cost producer.
The question is who brings the innovation, quality and the cost reduction strategy to the firm? It
comes from the right employee who is motivated by the right human resources practices. In the next
sections we will deal with the issues of how the right employee is employed and motivated.
Competitive Advantage through Job Analysis, Job Description and Job Evaluation
Job Analysis
The job analysis looks at the behavioral needs of a particular competitive strategy (cost leadership or
differentiation) role peculiar to the culture and organization of the company. It is like performing a
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Personal Profile Analysis on an imaginary person. The goal is to define the ideal individual for the job
position from the perspective of the company and the employees that the successful applicant will
work with. Job analysis is the process of collecting information and making judgments about a
specific job. From the stand point of researchers, that competitive advantage only occur when
employee‘s knowledge, skills and ability can add value to the firm, are rare, cannot be imitated and
are not sustainable. In order to target employees with the requisite knowledge, skills and ability, the
job has to be carefully defined. The HRM literature promotes careful job definition in the belief that it
will have two effects. First, it is commonly believed to assist targeting and attraction of potential
recruits. Second, job analysis helps potential recruits to make up their own minds about whether to
apply or not.
Job Description
The job description is generally used to identify the responsibilities, the objectives associated with
each specific task and the reward that associated with good performance. In order to accomplish the
employment relationship effectively, work has to be designed, programmed, costed, organized and co-
coordinated. In other words detailed job description, otherwise can be used by an employee to define
what s/he is not prepared to (―that‘s not part of my job‖ or I‘m not paid to do that‖). In a dynamic
environment it is impossible to have a good job description because anticipating the environment
changes in advance is impossible. But that does not mean we should not describe the job as detailed as
possible.
Job Evaluation
Once jobs have been analyzed and described, the job evaluation began by considering several job
factors such as: working conditions, necessary technical KSA (Knowledge, Skills and Ability) and
behavior, salaries and required managerial skills. A rating of each factor is made on a standard scale,
and the total rating points can be used to rank jobs hierarchically. The recruiting and selection model
appendix A can be used in the rating process by using different criteria and weights such as the above-
mentioned job factors.
5.5 Knowledge Management
Knowledge management (KM) is the process of capturing, developing, sharing, and effectively using
organizational knowledge. It refers to a multi-disciplined approach to achieving organisational
objectives by making the best use of knowledge.
"Knowledge management is the process of capturing, distributing, and effectively using knowledge."
This definition has the virtue of being simple, stark, and to the point. A few years later, the Gartner
Group created another second definition of KM, which is perhaps the most frequently cited one
(Duhon, 1998):
"Knowledge management is a discipline that promotes an integrated approach to identifying,

capturing, evaluating, retrieving, and sharing all of an enterprise's information assets. These assets
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may include databases, documents, policies, procedures, and previously un-captured expertise and
experience in individual workers."
Both definitions share a very organizational, a very corporate orientation. KM, historically at least, is
primarily about managing the knowledge of and in organizations.
The operational origin of KM, as the term is understood today, arose within the consulting
community and from there the principles of KM were rather rapidly spread by the consulting
organizations to other disciplines. The consulting firms quickly realized the potential of the Intranet
flavor of the Internet for linking together their own geographically dispersed and knowledge-based
organizations. Once having gained expertise in how to take advantage of intranets to connect across
their organizations and to share and manage information and knowledge, they then understood that the
expertise they had gained was a product that could be sold to other organizations. A new product of
course needed a name, and the name chosen, or at least arrived at, was Knowledge Management. The
timing was propitious, as the enthusiasm for intellectual capital in the 1980s, had primed the pump for
the recognition of information and knowledge as essential assets for any organization.
Perhaps the most central thrust in KM is to capture and make available, so it can be used by others in
the organization, the information and knowledge that is in people's heads as it were, and that has never
been explicitly set down.
What is still probably the best graphic to try to set forth what KM is constituted of, is the graphic
developed by IBM for the use of their KM consultants, based on the distinction between collecting
stuff (content) and connecting people, presented here with minor modifications (the marvelous C, E,
and H mnemonics are entirely IBM's):
COLLECTING (STUFF) & CONNECTING (PEOPLE) &

CODIFICATION PERSONALIZATION
DIRECTED  Databases, external & internal  community & learning
INFORMATION &  Content Architecture  directories, "yellow pages"
KNOWLEDGE  Information Service Support (expertise locators)
SEARCH (training required)  findings & facilitating tools,
 data mining best practices / groupware
EXPLOIT lessons learned/after action  response teams
analysis
(HARNESS)
(HARVEST)
SERENDIPITY &  Cultural support  Cultural support
BROWSING  current awareness profiles and  spaces - libraries & lounges (literal
databases & virtual), cultural support,
EXPLORE  selection of items for alerting groupware
purposes / push  travel & meeting attendance
 data mining best practices
(HYPOTHESIZE)
(HUNTING)
From: Tom Short, Senior consultant, Knowledge Management, IBM Global Services
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Another way to view and define KM is to describe KM as the movement to replicate the
information environment known to be conducive to successful R&D—rich, deep, and open
communication and information access—and deploy it broadly across the firm. It is almost trite now
to observe that we are in the post-industrial information age and that an increasingly large proportion
of the working population consists of information workers. The role of the researcher, considered the
quintessential information worker, has been studied in depth with a focus on identifying
environmental aspects that lead to successful research (Koenig, 1990, 1992), and the strongest
relationship by far is with information and knowledge access and communication. It is quite logical
then to attempt to apply those same successful environmental aspects to knowledge workers at large,
and that is what in fact KM attempts to do.
The Stages of Development of KM
Looking at KM historically through the stages of its development tells us not only about the history of
KM, but it also reveals a great deal about what constitutes KM.
First Stage of KM: Information Technology
The initial stage of KM was driven primarily by IT, information technology. That first stage has been
described using an equestrian metaphor as ―by the internet out of intellectual capital‖. The concept of
intellectual capital provided the justification and the framework, the seed, and the availability of the
internet provided the tool. As described above, the consulting community jumped at the new
capabilities provided by the Internet, using it first for themselves, realizing that if they shared
knowledge across their organization more effectively, then they could avoid reinventing the wheel,
underbid their competitors, and make more profit. The first use of the term Knowledge Management
in the new context appears to have been at McKinsey. They realized quickly that they had a
compelling new product. Ernst and Young organized the first conference on KM in 1992 in Boston
(Prusak, 1999). The salient point is that the first stage of KM was about how to deploy that new
technology to accomplish more effective use of information and knowledge.
The first stage might be described as the ―If only Texas Instruments knew what Texas Instruments
knew‖ stage, to revisit a much quoted aphorism. The hallmark phrase of Stage 1 was first ―best
practices,‖ to be replaced by the more politic ―lessons learned.‖
Second Stage of KM: HR and Corporate Culture
The second stage of KM emerged when it became apparent that simply deploying new technology
was not sufficient to effectively enable information and knowledge sharing. Human and cultural
dimensions needed to be addressed. The second stage might be described as the ― ‗If you build it they
will come‘ is a fallacy‖ stage—the recognition that ―If you build it they will come‖ is a recipe that
can easily lead to quick and embarrassing failure if human factors are not sufficiently taken into
account.
It became clear that KM implementation would involve changes in the corporate culture, in many
cases rather significant changes. Consider the case above of the new pediatric medicine and the
discovery of the efficacy of adding orange juice to the recipe. Pharmaceutical sales reps are
compensated primarily not by salary, but by bonuses based on sales results. What is in it for that sales
rep to share her new discovery when the most likely result is that next year her bonus would be
substantially reduced? The changes in corporate culture needed to facilitate and encourage
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information and knowledge sharing can be major and profound. KM therefore extends far beyond just
structuring information and knowledge and making it more accessible.
As this recognition unfolded, two major themes from the business literature were brought into the KM
fold. The first was Senge‘s work on the learning organization (Senge, Peter M., 1990 The Fifth
Discipline: The Art and Practice of the Learning Organization.) The second was Nonaka‘s work on
―tacit‖ knowledge and how to discover and cultivate it (Nonaka, Ikujiro & Takeuchi, Hirotaka, 1995
The Knowledge-Creating Company: How Japanese Companies Create the Dynamics of Innovation.)
Both were not only about the human factors of KM implementation and use; they were also about
knowledge creation as well as knowledge sharing and communication. The hallmark phrase of Stage
2 was ―communities of practice.‖ A good marker of the shift from the first to the second stage of KM
is that for the 1998 Conference Board conference on KM, there was for the first time a noticeable
contingent of attendees from HR, human resources, departments, and by the next year, 1999, HR was
the largest single group, displacing IT attendees from first place.
Third Stage of KM: Taxonomy and Content Management
The third stage developed from the awareness of the importance of content, and in particular the
awareness of the importance of the retrievability of content, and therefore of the importance of the
arrangement, description, and structure of that content. Since a good alternative description for the
second stage of KM is the ―it‘s no good if they don‘t use it‖ stage, then in that vein, perhaps the best
description for the new third stage is the ―it‘s no good if they try to use it but can‘t find it‖ stage.
Another bellwether is that TFPL‘s report of their October 2001 CKO (Chief Knowledge Officer)
Summit reported that for the first time taxonomies emerged as a topic, and it emerged full blown as a
major topic (TFPL, 2001 Knowledge Strategies – Corporate Strategies.) The hallmark phrases
emerging for the third stage are content management (or enterprise content management) and
taxonomies.. At KMWorld 2000 a track on Content Management appeared for the first time, and by
the 2001 KMWorld Conference, Content Management had become the dominant track. In 2006,
KMWorld added a two-day workshop entitled Taxonomy Boot Camp, which still exists today. The
hallmark terms for the third stage of KM are taxonomy and content.
Other KM Issues
One issue is the need to retain the knowledge of retirees. Of course the fact that the baby boomer
bulge is now reaching retirement age is making this issue particularly salient. KM techniques are very
relevant to this issue. One technique is the application of the lessons learned idea—just treat the
retiree‘s career as a long project that is coming to its end and create an after action report, a massive
data dump. This idea seems obvious, but only in special cases is it likely to be very useful.
Much more likely to be useful is to keep the retiree involved, maintain him or her in the CoPs and
findable through expertise locater systems. The real utility is likely to be found not directly in the
information that the retiree leaves behind, but in new knowledge created by the interaction of the
retiree with current employees. The retiree says "it occurs to me that ..." and elicits a response
something like ―yes, but here ...,‖ a discussion unfolds, the retiree contributes some of the needed
expertise, and a solution is generated. The solution arises not directly from the retiree‘s knowledge
but rather from the interaction.
Another major development is the expansion of KM beyond the 20th century vision of KM as the
organization‘s knowledge as described in the Gartner Group definition of KM. Increasingly KM is
seen as ideally encompassing the whole bandwidth of information and knowledge likely to be useful
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to an organization, including knowledge external to the organization—knowledge emanating from

vendors, suppliers, customers, etc., and knowledge originating in the scientific and scholarly
community, the traditional domain of the library world. Looked at in this light, KM extends into
environmental scanning and competitive intelligence.
5.6 Fostering Creativity and innovation
It is a very common tendency of every employee to get into a rut at work especially if one has
been doing a same kind of job for a very long time. The longer one has been doing the job the greater
is the tendency to keep doing things the way they have always done them; as it gets monotonous, easy
and boring.
In almost every job there is opportunity for creativity and innovation – sometimes they are small
operational improvements and sometimes they are big challenging innovations.
How can you be creative and innovative at your work?
Here are five steps:
1. There is always a scope for improvement: every single product, service,method and aspect of any
job can be done in many different and better ways. Approach every task with the attitude that the
current method can always be improvised and that your job is to find a better way to do it.
2. Asking is the beginning of improving: ask colleagues, friends, seniors and customers what
problems and issues they have with a product or service. Discuss ideas for cost savings and quality
improvements. Inter-departmental communication about what could be improvised is also a great
way. People in other places have different exposure; thus different viewpoints and can help to identify
problem areas and opportunities that you could have possibly missed looking at. Network with people
in other fields and discuss their attitudes and approaches to some of the topics that concern you.
3. Unleash the power of ideas: ideas are the raw material for progress. A well co-ordinated
brainstorming or ideation session with a group of diverse people helps generate great ideas for any
business challenge or new business opportunities. Testing, accepting and implementing the best ideas
multiply the chances of success.
4. Learn from the experience of others: experience may be a good teacher; someone else‘s
experience is a far better teacher. Look far outside. Discuss with superiors and people who have
experience and expertise in tackling the sort of challenges that you or your organization faces. Look
far outside. How have other organizations in different sectors faired with challenges? What do
businesses similar to yours but in other zones of the world do? Research may help pinch some of their
great ideas and you can try applying them locally.
Maybe you can contribute a few ideas of your own ideas which will help your manager or the
company at large. Exhibit that you are a positive contributor of ideas.
5. Change your attitude to failure: As Woody Allen puts it; ―If you‘re not failing now and again,
it‘s a sign you are not doing anything very innovative.‖ The most innovative organizations really do
think differently. The organizations that do not innovate inevitably age and decline. Thus, to sustain
in a period of rapid change it is vital to recognize the fact that innovation is significant positive change
be it in products, processes or people.
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Every CEO says the same thing, ―We need creativity and innovation here.‖
Ironically, in the same organization, we see people frightened to try new things. There are many
barriers to think and create innovatively – the fear of being judged, the fear of failure, employees
being overburdened, issues of budget etc.
There are some other ways to foster innovation,
1. Let Every Employee Play Designer.
Three years ago, the five-person research and development team at pet-accessory company
West Paw Design had a case of collective writer's block. A production manager named Seth Partain
proposed holding a contest for the company's three-dozen employees. Everyone from salespeople to
seamstresses were encouraged to spend an afternoon designing and producing prototypes for new
products. Following an end-of-day vote, a winner was crowned at an award ceremony. By making
employees feel a part of the idea-creation process, West Paw Design set up a new pipeline of product
development.
2. Provide Lots of Free Time to Think.
"The five last bastions of thinking are the car, the john, the shower, the church or synagogue,
and the gym," Joey Reiman, CEO of BrightHouse, told Inc.'s Leigh Buchanan. Note the absence of
office from that roster. So, to allow for that crucial "think time," in addition to nearly five weeks'
vacation, BrightHouse's 18 staff members get five "Your Days," in which they are encouraged to visit
a spot conducive to reflection and let their neurons rip.
3. Use New Software to Round Up Staff Ideas.
What happens when your employees are too shy to pipe up? That happened at Solar Systems,
an El Canjon, California, company that installs solar power systems. So CEO Mike Hall decided to
use an online survey tool to allow employees to review their peers idea submissions – and set a prize
at $500. "We knew we had people who might be shy about submitting ideas," he says. "We gave them
a forum that encourages everyone to share."
4. Encourage Risk-Taking.
Another innovation booster at BrightHouse is the company's annual event known as March
Fo(u)rth. On that date, each employee is encouraged to do something he or she has never before
attempted – say, skydive or give a large presentation. "If we're known for anything, it's
possibilitarianism," says CEO Reiman.
5. Hold an Intern Contest.
La Jolla Group, an apparel company in Irvine, California, recognized in 2007 that it faced a
shortage of designers specializing in surf fashions. So CEO Toby Bost came up with the idea for a
contest – a contest to earn employment in his company. Now, each September, a handful of teens
compete in a runway fashion show judged by audience members who text message a vote for their
favorite designer. The winner of the fashion show receives an internship at La Jolla Group, a $4,000
scholarship, free clothes, and a mention in Teen Vogue. "I knew that we couldn't keep going on by
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pinching designers from each other's backyards," Bost said. "We needed to manufacture long-term
talent by targeting students early and focusing them on a design career."
6. Reward Million-Dollar Ideas.
A few years ago, a college student spending the summer programming at Fog Creek Software,
came to his boss, Inc. columnist Joel Spolsky, with an idea: What about running job ads on the
company's blog? The site was popular in the programming community, and the student, Noah Weiss,
proposed hosting relevant classified job ads could open up a new revenue stream. It did: more than $1
million came in. Spolsky decided a reward was in order. But what? Spolsky offered the student an
equity stake—if he were to return to Fog Creek as a full-time employee.
7. New Project, New Team.
InnovationLabs in Walnut Creek, California, thrives on being an outfit of outsiders. That's

because the company has just four principals and pulls together a new team for each new project.
Teams are comprised of referrals, including business professors, webmasters, scientists, and
miscellaneous others. InnovationLabs allows these team members to work any way they like. "Some
people are amused when they work with us, because we're so averse to telling people what to do,"
says managing partner Langdon Morris. "But we want our people to be creative about how they help
clients be creative."
8. Allocate 10 Percent of Time for Invention.
Scott Cook, the founder of Intuit, says one of the keys to encouraging innovation is to let
employees be as inventive as possible. "We encourage this by allowing our engineers and product
managers in most of our divisions to devote 10 percent of their workweeks to new ideas," Cook says.
"That's how we developed many of our products and features."
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Question Bank
QUESTION BANK
UNIT-I
2 MARKS
1. Define manager?
Manager is a person who plans, organizes directs & controls the allocation of human, material,
financial& information resources in pursuit of the organization goals.
2. What is meant by Managerial Job?
A managerial job should be based on a task that has to be done to attain the company‘s
objectives. It should always a real job- one that makes a visible if possible measurable contribution to
the success of the organization.
3. Define Work Effectiveness.

Manager is a capable person to produce some favorable results.
4. List out the different kinds of effectiveness.
Apparent effectiveness, personal effectiveness, Leadership effectiveness, Team effectiveness,

Organizational effectiveness, Managerial effectiveness.
5. List out the types of managers?
Functional, General, Administrative, Entrepreneurs small business owners, Team leaders.
6. What are the Roles of manager regarding decision making?
Entrepreneurship role, Disturbance handling role, Resource allocation role, Negotiation role.
7. How to improve decision making?
1. Brain storming
2. Nominal group technique
3. Electronic meeting
8. What are the Types of control?
1. Feed forward control
2. Concurrent control
3. feed back control
9. What are the Methods of control?
Mechanistic, Organic, Market, Finance of accounting, Automation based control.
10. What you mean by Time Management?

Time management is the act or process of planning and exercising conscious control over the
amount of time spent on specific activities, especially to increase effectiveness, efficiency or
productivity.
11. Equation for effective time management?

Effective time management = Right motivation+Right frame of mind+right teaching.
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12. Define Job Description.

A job description is a list that a person might use for general tasks, or functions, and
responsibilities of a position. It may often include to whom the position reports, specifications such as
the qualifications or skills needed by the person in the job, or a salary range.
13. What is Job Related Behavior?

Work behavior is the behavior one uses in employment and is normally more formal than other
types of human behavior. This varies from profession to profession, as some are far more casual than
others. For example, a computer programmer would usually have far more leeway in their work
behavior than a lawyer.
14. Who is a Trainee?
A trainee is commonly known as an individual taking part in a trainee program or a graduate
program within a company after having graduated from university or college. A trainee is an official
employee of the firm that is being trained to the job he/she was originally hired for.
15. What is Talent?

Talent means the skill that someone has quite naturally to do something that is hard. Someone
who has talent is able to do something without trying hard. It is an ability that someone is born with. It
is a high degree of ability or of aptitudes. People may have talent for music, dancing, acting, sport or
other skills.
16. Define Transfer.
A transfer may involve an exchange of funds when it involves a change in ownership, such as
when an investor sells a real estate holding.
17. What Is Delegation?

Delegation is the assignment of responsibility or authority to another person (normally
from a manager to a subordinate) to carry out specific activities. It is one of the core concepts of
management leadership. However, the person who delegated the work remains accountable for the
outcome of the delegated work.
18. What are the Functional Dimensions of Henri Fayol?
 Production
 Marketing
 Human Resource
 Finance
19. What you mean by Liaison Role?

Managers act as liaisons when making contacts with people outside of their area of
responsibility, both inside their organization and outside in the world at large.
20. List out the three Laws of Time and Effort Management.
1. The Law for Planning our time

2. The Law for applying our effort
3. The Law for Investing our Talent
21. What are the Objectives of Effective Manager?
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 Customer satisfaction
 Financial
 Internal/operational
 Product Management duties
22. Equation for effective Time Management?
Effective time management = Right motivation+Right frame of mind+right teaching.
23. Define job behaviour?

Job behaviour means the total set of work related behaviour that the organisation expects the
individuals to display.
 Effective job behaviour
 Ineffective job behaviour
16 MARKS
1. Discuss the General Dimensions of Managerial Jobs.
2. What are the Major areas that help in Management of Time?
3. Briefly explain about the Managerial Job Model and Model of Managerial Effectiveness.
4. How an Effective Manager will be an Optimizer? Explain.
5. What is the Effective Job Behavior Skills Required for Manager ?
6. Discuss about Henry Mintzberg‘s Role Dimensions.
7. Explain the Principles of Time Management.
8. Briefly explain Effective and Ineffective Job Behavior with Examples.
9. Functional Level Difference in Managerial Job Behavior
10. Explain about Talent cycle.
11. Write a notes on Two Factor Theory.
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UNIT-2
2-MARKS
1. What is Talent?
Talent means the skill that someone has quite naturally to do something that is hard. Someone
who has talent is able to do something without trying hard. It is an ability that someone is born with. It
is a high degree of ability or of aptitudes. People may have talent for music, dancing, acting, sport or
other skills.
2. What is meant by Recruitment?

Recruitment refers to the overall process of attracting, selecting and appointing suitable
candidates for jobs within an organisation, either permanent or temporary.
3. What is meant by Motivation?
Motivation is a theoretical construct, used to explain behavior. It is the scientific word
used to represent the reasons for our actions, our desires, our needs, etc. Motives are hypothetical
constructs, used to explain why people do what they do.
4. What is Executive Development?

Executive development is the whole of activities aimed at developing the skills and
competencies of those that (will) have executive positions in organisations.
5. What is meant by Selection?

A selection test is a systematic and standardized procedure of sampling human
behavior in order to obtain qualified applicants for organizational activities.
6. Classify the talents?

Striving, Thinking, Related talents.
7. What is Striving talents?

It explains why a personal is motivated to push of pull.
 Stamina for physical Endure
 Vision to picturise the future events
8. What is Related talents?

It explains whom he is the persons whom he trust, with whom he build relationship, with whom
he confront and ignore.
9. What are the Managerial ability?

Supervisor ability, Intelligence , Initative,Interactomg ability, Organisation ability.
10. Identification of Managerial talents?

Performance appraisal, Job enlargement, Decentralisation & delegation, Participation of
consultative management, Based on productivity, Orgn image, Orgn position in business setup,
Public relations, Services provided, Product quality, Employees stability
11. What are the Internal sources of recruitment?
Orgn database, Job postings, Promotion, Transfer, Deputation, Current employee references,
recruiting.
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12. What are the External sources of recruitment?

Campus recruitment, Advertisment, Employment, Professional associates, Modem
recruitment.
13. What are the Managerial skills?

Conceptual skills, Human skills,Technical skills.
14. What are the Factors Affecting Managerial Compensation?

Jobsize, Individual managerial characteristics, Managerial labour market, Product market
conditions& employer‘s cost structure, Remuneration philosophy of the company, Job
evaluation.
15. What are the Types of Managerial Compensation?

Merit pay, Performance based pay, Job competency pay method, Remuneration & Quality
culture.
16.List out the Methods of Performance Apprasal?

Alphabetical/Numerical method, Trait rating scale, Behavourly anchored rating scales, Forced
Distribution ratings, Ranking, Paired Comparison, MBO,Work std Approach, Written
report/Narrative Essay, Critical incidents method.
17. Explain the Importance of motivation.

Productive use of Resources, Increase Efficiency & output, Achievements of Goals,
Development of Friendly Relationship, Motivational Factors.
18. What are the Types of Rewards?

Incentive Bonsu, Excutive stock option, referred compensation, Executive Insurance,
Executive prerequisites.
19. What are the Managerial career stage?

Trial stage, Establishment stage, Maintenance stage, Decline stage.
20. How to Identify Talent?

 Discover your strongest traits to find an ideal career path.
 Know what natural talents you possess
 Recognize and overcome negative character traits
 Assess your successful and failed jobs
 Envision your ideal career path
21. State the Importance of Training Programs.

 Training can develop high morale in employee.
 Training leads to higher productivity.
 Better quality of work
 Reduced learning period
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22. What is meant by Pay?

A salary is a form of periodic payment from an employer to an employee, which may be
specified in an employment contract.
23. Explain types of rewards.
Extrinsic rewards: concrete rewards that employee receive.
1. Bonuses
2. Salary raise
3. Gifts
4. Promotion
Intrinsic rewards: tend to give personal satisfaction to individual
1. Information / feedback
2. Recognition
3. Trust/empowerment
24. What is career pathing?
Career Pathing: a process used by an employee to chart a course within an organization for
his/her career path and career development.
25. Define 360 degree Performance appraisal.

360-degree feedback will include direct feedback from an employee's subordinates,
peers (colleagues), and supervisor(s), as well as a self-evaluation. It can also include, in some cases,
feedback from external sources, such as customers and suppliers or other interested stakeholders.
26. Define Reward.
Reward is something given or received in recompense for worthy behavior or in retribution for
evil acts.
27. What Is Performance appraisal?
A performance appraisal is a systematic and periodic process that assesses an
individual employee's job performance and productivity in relation to certain pre-established criteria
and organizational objectives.
28. Who are all appraisers?
An appraisal is a professional appraiser's opinion of value. The preparation of an
appraisal involves research into appropriate market areas; the assembly and analysis of information
pertinent to a property; and the knowledge, experience, and professional judgment of the appraiser.
29. What you mean by Feedback?
Feedback is defined as a return of information about a result or the returned portion of a
process.
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30. What are the stages in career?
a. Exploration
b. Establishment
c. Mid-career
d. Late career
e. Decline
31. What is meant by Career development?
Career Development is the lifelong process of managing learning, work, leisure, and
transitions in order to move toward a personally determined and evolving preferred future.
32. What is Job enlargement?
Job enlargement is an increase in job tasks and responsibilities to make a position more
challenging. It is a horizontal expansion, which means that the tasks added are at the same level as
those in the current position.
33. What is Job rotation?
Job rotation in the workplace is a system where employees work at several jobs in a business,
performing each job for a relatively short period of time.
34. Explain the guidelines of feedback?
a. Check your intention
b. Ask permission
c. Consider timing
d. Be specific
e. Be constructive
35. What is career?
A career includes all the roles you undertake throughout your life - education, training, paid
and unpaid work, family, volunteer work, leisure activities and more. "Career" was traditionally
associated with paid employment and referred to a single occupation.
36. What is Managerial career planning?

Analysing managers nees of asperations, Analysing career opportunity, Identify consurrence &
unconcurrence.
37. What is Organisation career planning?
To assess managerial requirements, career path for each managers, Integrate career goals of
organisation needs, Initiate career development efforts
38. What are the perspectives of career management?
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"career perspective" will affect how you view your own career, but economic realities could
dictate that you will change occupations or employers at least once.
1. Make It Personal
2. Recognize Differences
3. Seek a Perspective
4. What You're Worth
39. What is meant by Job enrichment?
Job enrichment is an attempt to motivate employees by giving them the opportunity to
use the range of their abilities.
40. What is meant by career planning?

Career planning is an ongoing process that can help you manage your learning and
development
41. What you mean by balanced scorecard?
The balanced scorecard is a strategic planning and management system that is used extensively
in business and industry, government, and nonprofit organizations worldwide to align business
activities to the vision and strategy of the organization, improve internal and external
communications, and monitor organization.
16 MARKS
1.Discuss the Sources of Recruitment.
2. Explain Maslow‘s Need Theory?
3. Explain the Steps involved in Selection.
4. What are the important methods of Executive Development?
5. Explain Performance appraisal Process?
6. Explain the Contingent pay schemes.
7. Explain Roles in career management?
8. Discuss about 360 degree feedback.
9. What are the Types of Pay?
10.Briefly explain Measures of Performance appraisal with examples. 11.Explain
Career management process.
12. Perspectives of balanced scorecard
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UNIT-3
2-MARKS
1. Who is an Effective Manager?
An ―effective‖ manager takes responsibility for ensuring that each individual within his
department succeeds and that the team or business unit achieves results.
2. What is managerial effectiveness?
Managerial effectiveness is a leader's ability to achieve desired results. How well he applies
his skills and abilities in guiding and directing others determines whether he can effectively meet
those results. If he can, his achievements are poised to help the organization gain a competitive edge
against rival organizations heading into the future.
3. Define PPP approach?

An effective managerial is one who is positive in his personality i.e, what type of person beis
his managerial process product inter dependent of together they make managerial effectiveness.
4. What are Descriptive effective Managerials quality?

Decisive, Aggressive/Assertive, Determined, /energetic, Intelligent.
5. What are Least Descriptive effective managers quality

Amicable, Confirming, Agreeable, conservative, Modest.
6. What are the Important Behaviours of managers?

To set goal realistically, Delegate frequently & effectively, Communicate effectively, Express
hostility tactfully.
7. Define product/result?
Open efficiency, High productivity, profit maximisation, organisation growth, Leadership,
organisation stability, Employee welfare, Social welfare.
8. What are the Methods of measuring managerial effectiveness?

By casual variables, Intervening variables, Output variables.
9. What you meant by casual variables?

Leadership strategies, Skill & styles, Management decisions, Organisation philosophies
objective, policy & structure, Available Technology.
10. What you meant Intervening variable?
Commitment to objectives, Motivation & morale of employees, Communication, Conflict
resolvation, Decision making & problem solving.
11. What you meant Output variables?

Production output, Cost, Sales, Profit-earnings, Management-union relations, Ternover.
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12. What are the Factors affecting managerial effectiveness?

Economic factor, Govt policies, Political & legal factor, Technological factor, Infra structurak
factor, Market factor, International factor.
13. What are the Economic Factors in managerial effectiveness?

Fiscal policy, Monetoary policy, Prices of income trends, Nature of economic system at work,
National economic plan, Balance of payment.
14. What are the Govt policies in managerial effectiveness?

Exim policy, Industrial incentives, Credit policy of RBI, Policies regarding Foreign
investment, Corporate tax policy, subsidy to various sector and Industrial licensing policy.
15. What are the Political & legal factor in managerial effectiveness?
Form of factor, Idealogy of ruling party, Strength of oppositions, political stability, socio –
economic legislations, political legal institutions.
16. What are the Technological factor in managerial effectiveness?

Availability of appropriate technology/technique, Cost of technique transfer, Adoption for
foreign technology, R & D facilities, Product & innovational opportunities.
17. What are the Infrastructural factors in managerial effectiveness?

Availability of sources of raw managerials, Prices of input, Availability of power, Availability
of manpower, Communication channel.
18.What are the Market factors in managerial effectiveness?

Business strategy, Consumer Behaviour, Demand & supply, Strenth of competitions,
Marketing intermediaries, Population growth, Ad & sales promotion, Entry of new competitors.
19. What are the International factors in managerial effectiveness?

World wide technological trend, Balance of payment, Relationship with neighbouring
countries, Stability of rate of dollars.
20. What is Efficiency?
Do things right, Solve problems, Safe guard resources, follow duties, lower cost.
21. What is Effectiveness?
Do right things, produce creative alternatives, Optimised resource utilisation, obtain results,
Increases profit.
22. What is Approaches of Managerial effectiveness?

Person, process, product approach, Structure approach, Behavioural approach, Personal
effectiveness approach.
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23. What is Structure Approach?

Rules, Methods, Procedures, Structures.
24. What is Behavioural approach?

Managerial effectiveness is to be seen terms of optimisation rather than maximisation. The
effective manager is said to be an optimzer in utlisingall available potential resources.
25. What is Personal effectiveness approach?

Managers personal goals are taken the main area of interest. The manager is perimarily
interested in personal effectiveness. The idea behind approach seems to be if managers are possible
they are effective.
26. What is High effectiveness?

Self confidence, perceptive, Good listner, Frank Task oriented, Open.
27. What is Low effectiveness?

Unperceptive, Secretive, Percavtion minded, Egocentrie, Closed, Superfician.
16 MARKS
1. How effective managers lead to business success? Discuss.
2. Explain the essentials for effective management.
3. Briefly explain about the current industrial and government practices in management of
4. Discuss the model of Managerial Effectiveness.
5. Explain the term Effective manager as an optimizer.
6. Explain bridging the gap in managerial effectiveness.
7. Write notes on current practices in designing managerial job.
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UNIT-4
2-MARKS
1. What is meant by Organization?

An organization is a group of people who work together, like a neighborhood association, a
charity, a union, or a corporation. Organization is also the act of forming or establishing something
(like an organization). It can also refer to a system of arrangement or order, or a structure for
classifying things.
2. How situation is affecting Leadership?

Leader may change their leadership style based on situation.
3. Who is a Leader?
A leader is "a person who influences a group of people towards the achievement of a goal".
4. Define Group.
Group is defined as something related to a collection or a number of people or things.
5. What is competition?
It means the activity or condition of striving to gain or win something by defeating or
establishing superiority over others.
6. Define Organization as a Process.

Organizational process assets enable consistent process performance across the organization
and provide a basis for cumulative, long-term benefits to the organization
7. What is Organizational Climate?

Organizational climate (sometimes known as Corporate Climate) is the process of quantifying
the ―culture‖ of an organization, it precedes the notion of organizational culture.
8. What you meant by Leadership?

It means the action of leading a group of people or an organization, or the ability to do this.
9. Define Job Challenge?

Challenging job is Employee take any job as a challenge one. It should have more difficulties
and opportunities in the job.
10.What are Eight steps Organizational Processes?

Organisation goals or objectives, task requirements, Division of tasks, Integration of jobs,
Selection of personnel, Assignment of work positions, Granting the authority, Determination of
superior subordinate relationships.
11. What are the features of Organization?

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1. An organisation always refers to people.

2. The organisation is composed of people who interact among themselves.
3. The interactions are specified by some sort of structure.
4. The interactions are means to achieves some sort of object.
12.What are the activities in Organizational Processes?

Identifying the work, Grouping the work, Establishing relationships, measurement evaluations
& control,Delegation of authority & responsibility, Empowerment, Decentralisation.
13. What are the Element of organisation?

Departmentation. Linking department, Delegating authority & esponsibility, Preserving
authority relationship.
14. What is organisation climate?

The organisation climate comprises all those factors which influence behaviour in an
organisation & which are common to essentially unrelated positions in that organisation.
15.What are the Four basic types of organisation climate?

Systems, People, Production, Team.
16.What Influence on organisation climate?

Top person style, Founder style, Dominant group, Dominant family, Technology.
17. What is task orientation?

It emphasis productivity, getting the job done, initiating, organizing& directing .
18. What is Relationship orientation?

It emphasizes people as evidenced by listening trusting & encouraging.
19.What is System climate?

Little personal communication relentify organisation rather than individual intellent is valued
by senior management.
20. What is People climate?

Recognition of the individual There is usually a good linkage up and down the organisation &
across it. Usually they are team members superiors & subordinates.
21.What is Production climate?
o It tends to give dominance to the work process.
o It identify with superiors and with the technical system of the organisation.
22. What is Team climate?

Integrate indociduaal with organisation/technology The climate leads to judge people on their
willingness to join & work with the team & their general skill in team work.
23.What is Input oriented cliamte?

Stagnant, Acquirescent, Authoritarian, Ambivalent.
24. What is Output oriented climate?

Conforming, Humanisize, Dedicated, Achievement.
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25. List out Four less effective managerial styles.

Desserter univoled, passive or negative, Missionary, Autocrat, Comprimiser
26.List out More effective managerial styles.

Buneavcrat, Developer, Benovolent, Autocrat, Executive.
27. What you meant by Influence?

Influence is the ability to affect the perceptions, attitudes or behaviours of others.
28.What are the Personality traits of effective leaders?

selfconfidence,humility,trustworthiness,extroversion,assertiveness,emotional stability,sense of
humour ,warmth.
29. What is Leadership substitutes?

Are individual, task and organizational characteristics that tend to out weigh the leader ability
affect subadinate satisfaction and performation.
30. What is Power?

Power is the potential ability of a person or group to exercise control over another person or
group.
31. What are the Types of power?

Legitimate, reward, Coercive, Expert, Referent, Position, Personal power.
32. What is Competition?

Competition occurs when two are more individual or groups are striving for a goal that can be
achieved by only one.
33. What are Function of Competition?

Sense of identity, Responsebility, internal standards, excellents, individual creativity,
autonomy.
16 MARKS
1. What are the Environmental Issues in Managerial Effectiveness?

2. Explain the Importance of Organization?
3. Discuss the model of Group Effectiveness.
4. Explain on Organizational Processes?
5. Discuss the factors affecting Organizational Climate.
6. Briefly explain the Approaches to Leadership.
7. What are the Types of Groups?
8. What are the Job challenges faced by Managers?
9. Mention the Styles of Managers.
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UNIT-5
2-MARKS
1. What you meant by Negotiation?

Negotiation is a dialogue between two or more people or parties intended to reach an
understanding, resolve points of difference, to gain advantage for an individual or collective, or to
craft outcomes to satisfy various interests.
2. Write a note on Development of Competitive Spirit?

When a firm is implementing a value creating strategy not simultaneously being implemented
by any current or potential competitors, then we can say the firm has a Competitive advantage.
3. What is meant by Innovation?

The process of translating an idea or invention into a good or service that creates value or for
which customers will pay.
4. Define Brain Storming.

Brainstorming is a group or individual creativity technique by which efforts are made to find a
conclusion for a specific problem by gathering a list of ideas spontaneously contributed by its
member(s).
5. What you meant by Integrative Bargaining?

Integrative bargaining (also called "interest-based bargaining," "win-win bargaining") is a
negotiation strategy in which parties collaborate to find a "win-win" solution to their dispute.
6. What are the factors influencing Negotiation?

 Disagreement
 Argument
 Clash of goals, interests and perceptions
 Difficulty in making a decision
 Inadequate or poor communication
 Incompatible personalities
7. Make a note on Self Development?

Self development is taking steps to better yourself, such as by learning new skills or
overcoming bad habits.
8. What is meant by Knowledge?

Knowledge is a familiarity, awareness or understanding of someone or something, such as
facts, information, descriptions, or skills, which is acquired through experience or education by
perceiving, discovering, or learning.
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9. Define Creativity?
Creativity is a phenomenon whereby something new and in some way valuable is created
(such as an idea, a joke, a literary work, painting or musical composition, a solution, an invention etc).
10. What is Mind-Mapping?

A mind map is a diagram used to visually organise information. A mind map is often created
around a single concept, drawn as an image in the center of a blank landscape page, to which
associated representations of ideas such as images, words and parts of words are added.
11. What you meant by Paradigm Innovation?

Paradigm-based innovations relate to the mental models which shape what an organisation or
business is about. Henry Ford provides a pithy quote, when talking about the development of the
Model T motor car: ‗If I asked people what they wanted, they would have asked for a five-legged
horse‘.
12. What is creativity?

Creativity is the ability ti visualize generate and implement new ideas creative thinking
increases the quality of solutions to many types of problems. help stimulate in motivation, revitalices
motivation & commitment by challenging individuals and serves as a catalyst for effective team
performance.
13. Mention Five inter connected stages of creative process.

Preparation, Concentration, Incubation, Illumination, Verification.
14.What is Pepacation?
Investigating an essueor problem to ensure that all its aspects have been identified &
understood. Thsi stages involves searching for & collecting fact and ideas.
15. What is Concentration?

Focusing energies and resources on identifying & solving and essue or problems. A
commitment must be made at this stage to implement a solution.
16. What is Verification?

It is the testing of the created solution or idea. At this conformation and acceptance of the new
approach is sought.
17. What is Incubation?

It is an interval of unconcious ordering of gathered information. This stage may envolve an
unconscious Personal conflict between what is currently accepted as reality and what may be
possible. Relaxing sometimes distaning oneself from the issue and allowing the unconscious to
search for possible issues or problems and solutions is important.
A successful incubation stage helds fresh ideas of new ways of thinking about the nature of an
issue or a problem and alternative solutions.
18. What you meant by Illumination?

This stage is the moment of discovery the instant of recognition the mind enstantly connects an
issue or a problem to a solution through a remembered observation or occurrence.
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19. What are the steps in Self development process?

Thinking, Sorting out new ideas, giving up old ideas, trying out something new taking a risk
trying a achieve a goal.
20.What do you mean by the self?

The is a complex cluster of attributes, development of the self involves exploring questions
about these attributes and your relationship to them.
21.What are Elements of self?

Gender ,race,age,skills,hobbies,values,others.
22.What is Negotiation?
It is the process of making joint decisions when the parties involved have different
preferences.
23.What are the Action settings for negotiation?

Two party ,group,inter group,constituency negotiation.
24.What are the Approaches to negotiation?

 Distributive negotiation
 Integrative negotiation
25.What does BATNA stands for?

―Best alternative to a negotiated agreement‖ or each party‘s position on what he must do if an
agreement can‘t be reached.
26.What are the Negotiation stages?

Preparation,developing a strategy,getting started,building understanding,bargaining,closing.
27.What is Knowledge management?

It is the collection of processes that govern the creation,dissemination,and utilization of
knowledge.
28.Mention the Types of knowledge.

Tacit and explicit ,culturally based,knowledge structures and mapping.
29. What is competition?

It means the activity or condition of striving to gain or win something by defeating or
establishing superiority over others.
30. What is Mind-Mapping?

A mind map is a diagram used to visually organise information. A mind map is often created
around a single concept, drawn as an image in the center of a blank landscape page, to which
associated representations of ideas such as images, words and parts of words are added.
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16 MARKS
1. Briefly explain about Knowledge Management.

2. Explain Stages of Self Development?
3. Explain the Techniques for Improving Creativity.
4. What are the top management roles in organizational success?
5. Explain the benefits of creativity.
6. How to foster Innovation in Organization.
7. Explain Negotiation Skills.
8. Explain the process of Negotiation skills.
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BA7031 Managerial Behaviour and Effectiveness

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BA7031

SCE 3 Department of Management Sciences

BA7031 MANAGERIAL BEHAVIOR AND EFFECTIVENESS

UNIT I DEFINING THE MANAGERIAL JOB 8

UNIT II DESIGNING THE MANAGERIAL JOB 12

UNIT III THE CONCEPT OF MANAGERIAL EFFECTIVENESS 7

UNIT IV ENVIRONMENTAL ISSUES IN MANAGERIAL EFFECTIVENESS 8

UNIT V DEVELOPING THE WINNING EDGE 10

SCE 4 Department of Management Sciences

DEFINING THE MANAGERIAL JOB

According to Peter Drucker, Management implies ‗Effectiveness‘ and effectiveness involves a

1.1 Managerial Job-Descriptive Dimensions

General Functions of a Manager

1. General Functions of a Manager

Planning - plans to integrate and coordinate activities.

Functional Dimensions: Henri Fayol

1. Technical (Production, Manufacturing)

SCE 5 Department of Management Sciences

1.2 Methods of Managerial job dimensions

Heuristic methods of Managerial Behavior & Performance

 Ability to sustain defeat Alert

 Capable of good judgment Confident

 Emotional stability Energetic

 Extrovert Fear of failure

 Group oriented Honest

 Intelligent Mentally strong

• Answers how managers manage successfully

• Manage work instead of people

• Plan and organize effectively

• Set goals realistically

• Decisions based on consensus but accept responsibility

• Delegate frequently and effectively

• Rely on others to help solve problems

• Cooperate with others

• Display consistent and dependable behavior

• Win with grace

• Express hostility tactfully

These reflect on outcome of effective managing and include:

The four greatest myths are:

MYTH#3: In order to maximize managerial effectiveness, men should be given the

Benefits of Androgynous Management

Luthans description of effective and successful managers:

Traditional Management: Decision-making, planning, and controlling.

Communication: Exchanging routine information and processing paper work

Human resource Management: Motivating, disciplining, managing conflict, staffing and

Networking: Socializing, politicking, and interacting with outsiders.

VARIOUS OTHER JOB CRITERIA DIMENSIONS

Delegation as an important function of Manager:

There are several advantages resulting from effective delegation:

In order to delegate, the manager should have the following:

 Receptiveness – Willingness to delegate – welcomes the ideas of subordinate

Social Responsibilities of Managers and Ethics to be followed:

 Responsibility towards shareholders

 Responsibility towards consumers

 Responsibility towards employees

 Responsibility towards creditors

 Responsibility towards the government

SCE 8 Department of Management Sciences

 Responsibility towards suppliers

 Responsibility towards competitors

 Responsibility towards general public

1.3 Model of Managerial dimensions

Henry Mintzberg Role Dimensions

Executives use role status to facilitate interpersonal relationships with supervisors,