IIIrd Internal of Introduction to Business Studies 

NAME- Vineet Dahiya

PRN NO-18010126072

DIVISION-A

ROLL NO-72
Q1. M/s Jaisy Ltd. deals in consumer goods. It employs 500 workers and 20 operative
managers who give guidance and support to the workers while operating the machinery. The
company has a policy of granting leave as per the requirement of the workers. Workers 3 H 3
are generally granted leave on festivals and special occasions. Recently on Puja festival, it
received a big order. Workers are keen to take Puja holidays while management is pressing
hard for overtime. This matter was placed before the Personnel Manager who called the
meeting of operative managers and workers to inform them about the changes in the incentive
plan which states payment of double wages for working overtime and triple wages for
working on holidays. Workers without any pressure voluntarily took limited holidays and
were able to increase their earning by working overtime and on holidays. During Board of
Directors meeting, Personnel Manager was asked to update the management for achieving
higher output, meeting timely supplies without any confrontation with workers. Personnel
Manager replied, “I just used a carrot with no sticks approach”.

Discuss the two elements of management function that are used in the above case.

Ans. The elements of management function that have been used in the above case are: -

1. Coordination
2. Directing
3. Leadership

Coordination- It implies an orderly pattern or arrangement of group efforts to ensure unity of

action in the pursuit of common objectives. It involves orderly synchronization of the efforts
of individual components of an enterprise to provide the proper timing, amount, quality, place
and sequence of efforts so that the stated objectives may be achieved with minimum of
friction. Coordination requires unification of diverse and specialized activities. It is the task
of blending the activities of individual and group efforts in order to maximize contribution
towards the accomplishments of common goals.
As we can see in the scenario above, the manager called in a meeting of operative managers
and workers to inform them about the changes in the incentive plan which states payment of
double wages for working overtime and triple wages for working on holidays. Which showed
that the manager ensured the unity of action and common objectives, by synchronizing and
blending the group efforts in order to maximize contribution and accomplished common
goals.

As we saw the workers come in voluntarily for extra-time and also on holidays to work and
reach the goal set by the company superiors.

According to Henry Fayol, “to coordinate is the harmonise all the activities of a concern so as
to facilitate its working and its success. In a well-coordinate enterprise, each department or
division works in harmony with others and is fully informed of its role in the organisation.
The working schedules of various departments are constantly attuned to circumstances.”
Coordination is to secure harmony of action or team-work, and concurrence of purpose.

As stated by Haimann, “coordination is the orderly synchronizing of efforts of the

subordinates to provide the proper amount, timing and quality of execution so that their
unified efforts lead to the stated objective, namely, the common purpose of the enterprise.”1

Directing- It is said to be a process in which the managers instruct, guide and oversee the
performance of the workers to achieve predetermined goals. Directing is said to be the heart
of management process. Planning, organizing, staffing has got no importance if direction
function does not take place.

Directing initiates action and it is from here actual work starts. Direction is said to be
consisting of human factors. In simple words, it can be described as providing guidance to
workers is doing work. In field of management, direction is said to be all those activities
which are designed to encourage the subordinates to work effectively and efficiently.
According to Human, “Directing consists of process or technique by which instruction can be
issued and operations can be carried out as originally planned” Therefore, Directing is the
function of guiding, inspiring, overseeing and instructing people towards accomplishment of
organizational goals.

Applying some of the functions of Directing to the scenario: –

1
Theo Haimann, Professional Management, p.27.
 1. Pervasive Function – The Personnel Manager provided his operative managers and
workers with guidance by sharing the new plan with them and provided inspiration to
do it by adding in benefits for working, like giving them double pay for extra-time
and triple for workig on holidays.

2. Cautious Activity – The Personnel Manager was cautious while giving instructions
to his workers and did not demoralize them in any way as it would have hampered the
productivity.

3. Creative Activity – Personnel Manager was creative enough to convert a risky plan
of asking his workers to do Overtime during Puja-Holidays, into performance and
achieved 100% success rate.

4. Executive Function – Passing on of the plan details by the Superiors to the Personnel
Manager to Operative Managers to Workers, was a successful execution of executive
function.

Leadership- It is a process by which an executive can direct, guide and influence the
behaviour and work of others towards accomplishment of specific goals in a given situation.
Leadership is the ability of a manager to induce the subordinates to work with confidence and
zeal.

Leadership is the potential to influence behaviour of others. It is also defined as the capacity
to influence a group towards the realization of a goal. Leaders are required to develop future
visions, and to motivate the organizational members to want to achieve the visions.

Applying some of the important Leadership Traits: -

1. Initiates action - Personnel Manager starts the work by communicating the

policies and plans to his Operative Managers and Workers.
2. Motivation – Personnel Manager motivated his workers by giving them Double-Pay
for Overtime and Triple-Pay for working on Holidays.
3. Providing Guidance – Personnel Manager guided his workers by telling them the
plans and instructing them how to work on it.
4. Building Morale – Personnel Manager built-up morale by providing them with extra
pay for their extra effort.
According to Keith Davis, “Leadership is the ability to persuade others to seek defined
objectives enthusiastically. It is the human factor which binds a group together and motivates
it towards goals.”2

2
Management Study Guide.
Q2. Manish, project manager, achieved his set targets one month in advance. This
achievement was displayed on the notice board and a certificate for the best performance was
awarded to him by the CEO of the company.
1. Name the incentive provided to Manish.
2. Identify the type of incentive.
3. List two other incentives of the type identified in part 1.
4. Highlight any one relevance of incentive identified in part 1.
Ans.
1 Incentive provided to Manish is “Employee Recognition”
2 It is a Non-Monetary Incentive.
3 Two other types of Incentives are

 Organizational Climate.
 Employee’s Participation.

4 Employee Recognition, means giving special regard or respect which satisfies the
subordinate’s Ego. As it is a very good motivator. As was the Personnel Manager Recognized
during the Board of Directors Meeting.