MPOB NOTES

Question 1st:- Write a detailed note on Social Responsibility?

Answer: - Social Responsibility of business refers to what the business does, over and above the statutory requirements, for the benefits of the society.

Or“Social Responsibility is the moral obligation of a business towards the society”

Corporate Citizenship: This term is also used as a reference to the moral obligations of business to the society. The concept of corporate citizenship implies that the corporate are an integral part of the society and it is the moral obligation of these corporates to serve the society.

Why Social Responsibility ? Various resources that a business requires are Finance, human Resources, Capital, Location etc.

Finance: If equity finance, then it comes from the people in the society, who later on becomes shareholders of the company.

Human Resources: All the employees working in the organization are a part of society and they represent the whole society.

Now for a business which takes most of its resources from the society and is operating with in the society, it becomes necessary that it should have a concern for the society. The shareholders, the suppliers of resources, the consumers, the local community and society as whole is influenced by what business do. Thus, a business has to be socially responsive so that a social balance is struck.

Finished goods for consumption

Business Input Society

Output

From the above figure, it is clear that the Business and Society are interrelated and interdependent.

Both can’t work if separated and it is very dynamic relationship between the two, where the society provides the resources to business and business provides all the finished goods back to the society

If a balance is struck between the two, where business recognizes all its moral obligations towards the society, then the survival of a business is possible in long run.

Today’s consumers have become so aware that they will not purchase any anti-social and anti-environment products and thus, for the organizations, where purpose is profit maximization only, the survival becomes difficult.

Thus the business enterprise, which make use of resources of society and depends on the society for its functioning, should discharge its duties and responsibility in enhancing the welfare of the society.

Views of Social Responsibility

Classical Contemporary

1st:- Classical View: - According to the view, the business has only economic objectivesand no other objectives beyond that.

Was give by Milton Friedman Business should use its resources and engage in the activities designed to increase

its profits. It says that business should engage in open and free competition, without

deception or fraud and aim at profit maximization.2nd:- Contemporary View: - The contemporary view of business is ecological one.

Business is an integral part of society and it should serve the social purpose. Given by Davis and Blomston.

Models of Social Responsibility

Archie B. Carroll Model: - This model defines Social Responsibility as the entire range of obligations which a business has to society. Also called as three dimensional conceptual model of corporate performance. According to this model, a firm has the following 4 categories of obligations. Economic: - The primary responsibility of the business is economic need of

the society and generation of surplus money. Legal:- These are also fundamental since the business has to obey the

laws Ethical: - these are certain norms, which the society expects the

business to observe, although they are not mandated by law. e.g., Society expect a company not indulge in bribe taking, although it is

not compulsory at times, many companies indulge in taking informal bribes like accepting gifts and sweets etc.

Discretionary: - These are the voluntary contribution of the business to the social cause, like involvement in community development or other social programmers. For example, opening up a school or an orphanage.

According to Carroll’s Pyramid, Legal responsibilities are the second stage and economic responsibility forms the base of pyramid.

Business

But actually, Economic and Legal responsibility go hand in hand.Ackerman’s Model:- According to this model, there are three phase in the development of the social responsiveness of a company.

1st Phase:- In this phase, the top management recognizes the existence of a social problem, which deserves company’s attention.

2nd Phase:- It is characterized by the company appointing staff specialists or external consultants to study the problem and suggest ways to deal it.

3rd Phase:- It involves the implementation of the social responsibility programmers. Degree of social orientation and involvement:

On the bases of extent social orientation and social involvement, various categories of social involvement are:Anti Social :- Companies are unsocial able and they involve in unfair conduct of business.They do not respect the laws and norms; instead they take advantage of loopholes the indulge in economic responsibilities.

Business

Ethical

Legal Economic

Indifferent: - These are the companies, which have no social orientation beyond discharging the legal economic responsibilities. These organization follow the regulations, which they are bound to

follow Peripheral: - These companies are slightly better than indifferent ones. They have a little bit of social orientation.Socially Oriented: - These companies have a high degree of social orientation, but their real involvement is restricted because of limitation of resources.Committed: - These organizations are the ones, which contribute to the society to the fullest, and they have high degree of commitment towards the society.

Commited Socially Oriented Peripheral Indifferent

Anti Social

Arguments in favor of Social Responsibility

1st. Business survives using society’s resources, so it has a responsibility to the society.2nd. Business is an integral part of the social system and it should take care of society.3rd. Since business is resourceful it should have a special responsibility to the society.4th. Social involvement of business develops harmonious relationship between

business and society.5th. It creates a better public image of the company.6th. It discourages the additional govt. regulations to intervene.

Arguments against Social Responsibility1st. Business should confine itself to its own business. There are govt. and Social

organization to carry out social activities.2nd. Involvement of business in social activities could adversely affect the economic

health of business.3rd. The cost of social responsibility is ultimately passed on to consumers.4th. Many companies involve them selves into social activities because of tax

exemptions.

Degree of Commitment towards Society

Question 2nd:- Define Leadership: How leaders play an important role in the organization? Explain various Leadership styles according to Blake & Mouton?

Answer:- Leadership is an essential ingredient for successful organization. The willing cooperation in the organization is must and this cooperation, which is required for efficient working of the organization, can be achieved only through Leadership.Definition:- “Leadership is interpersonal influence exercised in a situation and directed through communication process, towards the attainment of a specialized goal and goals.”

Leadership is a process of influencing the activities of an in individual or a group for goal achievement in given situation.

Basic characteristics of Leadership:

1. Leadership is basically a personal quality.2. Leader tries to influence the behavior of individuals.3. Leader tries to influence the individual to behave in a particularly desired way.4. There is a relationship between leader and followers, which arise out of

functioning for a common goal.5. It is a continuous process of influencing behavior of followers.

A Leader play an important role in an organization by:-

1. Motivating the Employees:- Motivation is necessary for work performance. Higher the motivation better would be the performance. A good Leader by exercising his Leadership motivates the employees for better performance. Good Leadership in the organization itself is a motivating factor for individuals.

2. Creating Confidence: A good Leader creates confidence in his followers by directing them, giving them advice and getting good results in the organization

3. Building morale: Morale is the attitude of the employees towards the organization, management and voluntary cooperation to offer their ability to the organization. High moral leads to high stability and high productivity. Good leaders raise morale of the employees thus ensuring the productivity of the organization.

Leadership styles may broadly be classified as:1. Autocratic leader are three types:

a) Strict Autocrat b) Benevolent Autocratc) Incompetent Autocrat

2. Participative Leader3. Free rein Leader

Leadership Theories

Trait theories Behavioral Theories Contingency Theory(Personal (Leader’s Behavior) (Situational variable)Characteristics)

(a) Thio-state Leadership Model

Ohio-state Studies (1940’s)

HHigh Consideration High Consideration Low Structure High Structure

Low Consideration Low Consideration Low Structure High Structure

L HInitiating Structure

StructureThe extent to which a leader is likely to define the structure and his role and those of subordinates in the search for goal attainment. Structure may also mean, in simple terms, leaders emphasis on work-completion.

ConsiderationThe extent to which a leader is likely to have job relationships characterized by mutual trust, respect etc. in simple term, leaders emphasis on personal relationship with employees.

(b) Managerial Grid: One of the most widely known approaches of leadership styles is the “Managerial Grid” developed by Blake and Mouton. The grid is basically the representation of Ohio’s State dimensions.

They emphasized on the leadership behavior on the two dimensions as the task-oriented and relation oriented behavior.

“concern for People” and “Concern for production” are the two phrases used for explaining the managerial grid.

Con

sid

erat

ion

“concern for People means degree of personal commitment and satisfying interpersonal relation.

“concern for Production” means efforts put in the achievement of the organization goals.

Leadership styles given by Blake and Mouton:There are 81 leadership styles define by various combinations of two dimensions.

We discuss 5 of the main styles:

a) 1,1: Exertion of minimum effort is required to get work done and sustain organization morale.

b) 1,9: Thoughtful attention to the needs of people in the organization leads to friendly environment but the consideration to work is very less.

c) 9,1: Efficiency results from arranging work in such a way that human element have a little effect.

d) 5,5 Adequate performance through balance of work and maintaining satisfactory morale by taking care for people also.

e) 9,9 work accomplished is from committed people with interdependence through a common stake in organization purpose with trust and respect.

Conclusion:- Good leadership is critical to the success of any organization. Since leadership influence the behavior of employees and direct them towards a particular goal. Thus leadership play a central part in understanding group behavior.

Question 3:-Define Perception. Describe various factors affecting Perception. What is perception Distortions?

Answer: - PerceptionPerception may be defined as a process by which individuals organize and

interpret their sensory impressions in order to give meaning to their environment.In other words we can say that perception correlate, integrate and comprehends

diverse sensation and information from many organs of body. It classifies the stimuli based on past experience, feelings and motives.

Features of Perception Perception is the intellectual process, through which the person selects data from

environment, organizes it and obtains meaning from. It is a psychological process. It is the manner in which the person perceive the

environment and eventually affects his behavior. Thus people’s action, thoughts or feeling are triggered by perception of their surrounding.

It is subjective. Reality in any given condition may be different from the perception of different people. In other words we can say that different people perceive different things depending upon the various factors affecting their perception.

Factors Influencing Perception

The factors, which influence perception, are divided into three categories:

Perceiver Factors in Fluencing Target Perception

SituationFactor in perceiver: there may be some factor in perceiver, which influence perception in one or the other way. The factor are

(1) Individual attitude: The person tries to fit his attitude in the situation and perceive something. for example if a person always think negative, he think that whatever is going to happen in his life will be negative. he will perceive everything n the negative way. on the contrary if a person think positive, he is an optimistic, he will perceive every think in a positive way.

(2) Interest: if a person is interesting in something he will perceive that thing in a better way. on the other hand if a person is not interesting in that thing, he will not perceive that thing in a better way. for example, children watch television with the good interest and curiosity, so they perceive quickly whatever is shown in TV

(3) Personality of individual: personality influence perception in many ways. The perceiver tries to project his personality attributes in other .people with different personality have different perception of the same perception of the same variable. Secure people perceive other as warm individual rather then cold and indifferent. Self-accepting people perceive other as liking and accepting them.

(4)Learning and experience: people perceive many things differently according to their learning and experienced of the past. if a person has wrong impression or bed past experience of something, he she the thing as negative and he perceive tat thing in only negative way because it is his experience that forces him to perceive in this way.

(!!)Factor In Situation:(1)Time: time plays an important role in perception the time when the perceiver is making observation effect perception to a large extent that a person dressed in jogging dress in the afternoon is perceived to be awaked.(2)Work Setting: perception is influenced to a large extend by work setting. The atmosphere where the person is working influences perception, for example- A person is

perceived differently if he meets other in a five stare hotel as compared to an ordinary palace.

(3)Social Setting: The social circle where the person is living affects perception. The social circle gives him an identity and the person perceives others in a way suitable to the social setting. For example, Cultural differences influence the perception.

Factor in Target:(1)Novelty: Any new thing gets perceived quickly, if we are habitual of seeing things in a given situation. A new face or a material added in given palace is perceived quickly.

(2)Motion: If a thing is in motion that moving it will be perceived soon. for example that in a meeting where all person sitting quietly a signal person moving will be perceived.

(3)Sound: A thing making sound is perceived quickly and in a better way.

(4)Size: If the size of a thing is large and it is placed between small things then it will be perceived soon.

Perceptual Distortion: When a person perceives something there are a number of factor, which tries to hinder the correctness of perception.

Various distortion used in perceptions:

(1)Personality of perceiver: It greatly influences the perception. A perceive things people according to his own personality.(2)Attribution: Attribution refers to how a person tries to understand the behavior or event by interpreting them as caused by certain factor. Individual perceive the information around them and learn to behave accordingly by attributing it to certain reason.

(3)Stereo typing: It is another heuristic of perception, which makes a perceiver developed a judgment about one variable by associated them to a general class to which it belongs.

Question 4th: - What do you mea by Work Stress? What are its symptoms and causes? What remedial measures can be used to minimize work stress?

Answer: - Work life is buys and it is full of stress. The stress may range from individual stress to organizational stress. Urbanization, industrialization etc. has increased the stress in modern life but one can always try to minimize the impact of stress.

Hans Selves first introduced the term stress into the social sciences in 1936.Stress is identified as “the know specifically induced changes with in a biological

system.” This term is synonymously used with strain, conflict and pressure.“Stress can be identified as an adaptive response to an external factor that results

in physical, psychological, all behavioral deviations in an individual” Not all type of stress however, is harmful to the individual.

Types of Stress

Eustress Distress(+ve) (-ve)

Eustress means stress, which actually increases the performance level of an individual. it is the distress, which we discuss here, which negatively affects the performance of an individual.

Feature of Stress Stress may result in any kind of deviation: physical, psychological or

behavioral in an individual. Stress may be a result of individual interaction with environment stimuli.

It is not necessary that stress is always dysfunctional or harmful. Stress can either be temporary or long term.

Causes of Stress: Conditions or stimuli that cause stress are called “Stressors”.Various stressors can be: -

1st: - Individual Stressors: - There are various factors that cause individual stress.a) Life and Career change: - Life changes from unmarried to married or from

married to parenthood or from young to old are some of the change, which may cause stress in individuals.

b) Role characteristics: - An individual plays different roles according to the situation. At times ole conflict or role ambiguity causes stress.

2nd:- Group Stressor: - These are the stressor, which are the result of group dynamics. Group interaction affects individual behavior.

a) Lack of group cohesiveness: - Group cohesiveness is very important for satisfaction of group members. If belongingness in group is not there, group stress occurs.

b) Lack of Social Support: - If individuals do not get support from other member’s from the group, it causes stress.

Extra Organiza-

tion Stressor

Organiza-tional

Stressor

Group Stressor

Individual Stressor

c) Conflict: - Mismatch of ideas may cause conflict in group and it serves as a cause for group stress.

3rd:- Organizational Stressors: - An organization is composed of various individuals and individual group Stressors may also exist in organization. Major organizational stressors are as follows: -

a) Organization Policies: - These policies provide the guidelines and if the policies are ambiguous they cause stress.

b) Organization Structure: - Any inconsistency in the structure of organization cause stress in individuals as well as organization.

c) Physical Conditions: - The physical conditions in an organization affects the performance of employees e.g., Lighting, Ventilation, Seating arrangement, Sanitation etc.

Symptoms of Stress

The symptoms of stress can be related to the effects of stress also. If the stress is low it is considered to be positive in booting the performance.

High level of stress leads to negative impact and this aspect of stress have gained a lot of attention all around the world these days.

General symptoms of stress are: Decreased Performance: - If the individual is working under some stress, his

productivity will be affected badly. If there are certain physical reactions in an individual like increased heart beat

rate or decreased body temperature or the excitability of nerves, a;; these are the symptoms of increased stress.

Certain psychological symptoms also evidence the occurrence of stress like:- Anger Anxiety Depression Nervousness Irritability, Tension etc. Are psychological symptoms of stress?

The symptoms change the mood of an individual frequently, which affects the performance and productivity.

There are various behavioral; symptoms which evidence stress in an individual. If the behavior of people is dysfunctional, it shows high stress. Such behavior may be in the from of alcoholism, drug addiction, increased smoking and sleeplessness etc.

These are general symptoms of stress.

Coping strategies for stress

Stress coping strategies

Individual OrganizationalCoping strategies coping strategies

1st: - Individual coping strategies: - These are the strategies, which re adopted by individual to minimize their

stress level. Individual coping strategies tend to be more reactive in nature;i.e. they

tend to be the ways of reducing he stress, which already has taken place. Various individual coping strategies are:

Physical Exercise Relaxation Work Home Transition Cognitive Therapy Networking

i) Physical Exercise: - It is a good strategy to overcome stress and get body fit. Jogging, playing, working etc. reduce the stress. “Yoga” a scientific technique of physical exercise helps to keep body fit and reduce stress.

ii) Work Home Transition: - It is also a relaxation technique. During the last hour of work, the person can review the day’s activities; list the priorities of activities that need to be attended to the next day. It reduces the stress.

iii) Cognitive Therapy: - In this technique, lecture and interactive discussion sessions are arranged to help participants minimize their stress.

iv) Networking: - In this the formation of close associations with trusted, empathetic coworkers and colleagues who are good listeners and confidence builders is done to share the feelings & get stress out of mind.

v) Relaxation: - Impact of stress can be overcome by relaxation. It can be a simple relaxation or can be a scientific method of relaxation like “meditation” etc.“Meditation involves quite concentrated inner thought in order to give rest to the body physically and emotionally.”

2nd:- Organizational coping strategies: - These are more proactive in nature, they attempt at removing existing stressors or

the potential stressors basically related to the job.Various strategies are: -

Supportive Organizational Climate Job Environment Role Clarity Career Planning.

1) Supportive Organizational Climate: - The climate in the organization should be supportive to the employees. This increases their satisfaction. Senior managers may counsel the junior staff on issues adding upon stress.

2) Job environment: - Monotonous jobs cause stress in employees, if the job is changed or is supported with some interesting assignment it reduces stress.

3) Role Clarity: - If the role is clear, what an individual is supposed to play in an organization, it reduces stress.

4) Career Planning: - It helps employees to obtain professional advice regarding career paths that would help them to achieve personal goals.

Conclusion: - The cause of stress may be individual or organizational. Work stress is the stress, which occurs in individuals because of the organizational or work Environment.

Stress has a number of negative impacts on individual, family and Organizational life and the aim of a manager is to reduce the stress by following certain stress coping mechanism s so as to ensure the efficient working of an Organizational.

Question 5th: - Define the term Personality. What are the different theories of Personality?Answer: Personality: -

It is a Latin word’s derivation. The word personality is derived from a Latin word “Person” which mean to put on some mask. Personality may be understood as a characteristic pattern of behavior and style of thinking that determines a person’s adjustment to the environment. It is dynamic concept describing the growth and development of a person’s whole psychological system.

“Personality is the entire mental organization of human beings at any stage of his development”. -S.C. Worren

“Personality is the dynamic organization with in individual of those psychophysical systems that determine his unique adjustment to his environment.”

-G.W. Allport

The personality is the sum total of way in which an individual reacts to and interacts with other.

Our own experience seems to tell us two things about human beings: Firstly, they are all unique. The entire individual possesses different kind of

traits and characteristics and no individual completely matches with any other individual.

Secondly, all these traits remain stable over time.The modern definition of personality too emphasis two aspects of personality viz.

Uniqueness and ConsistencyThe tem personality is used in various senses: Generally, it is used to indicate the external outlook of an individual. In philosophy, it means the internal quality.

But in psychology, it indicates neither only external nor it explains only internal quality.

Thus the personality means an “Integrated Whole” of person.

According to “Ruth” Personality should include:1. External appearance and behavior or societal stimulus values.2. Inner awareness of self as a permanent organizing force.3. The particular pattern or organization of measurable traits, both inner and

outer.

Taking these aspects into consideration, the “personality may be defined in terms of organized behavior as a predisposition to a given stimulus in a particular manner.”

Bonner provides six propositions o clarify the nature of personality as:1. Human behavior is composed of acts.2. Personality visualize as a whole actualizes itself in a particular environment.3. It is distinguished by self consistency.4. It forms a time integrating structure.5. It is a goal directed behavior.6. It is a process of ‘becoming’.

Personality DeterminantsAn adult’s personality is generally considered to be made up of certain influences.

HereditaryDetermined at conception. For example, physical Stature, facial attractiveness,

gender, temperament, energy level etc.

Hereditary

Situation Environment

Personality TraitsA trait is a predisposition to respond in manner to various kinds of stimulus.

Various attempts have been made to identify and isolate traits and understand the individual’s personality. Generally speaking, trait means characteristic/features.

a) Myers-Briggs Framework (MBTI): - It is a questionnaire with 100 items. Myers Briggs type indicators ask people how they usually feel in a particular situation. Based on the answer, people are differentiated as- Sensing, intuiting, judging and perceiving.

b) The Big-5 Model: - This model identifies five different traits. Agreeableness, conscientiousness, emotional stability, extroversion, openness. Depending upon the degree of high or low response a person’s personality may be judged.

Personality Theories Psychoanalytical Theory Socio- Psychoanalytical Theory Trait Factor Theory Self Theory

1st:- Psychoanalytical Theory: - This Theory states that man is motivated by unseen forces more than he is controlled by conscious and rational thought.

Given by Sigmund Freud as the first comprehensive personality Theory. Sigmund noticed that his patient’s behavior could not always be consciously

explained. This finding led him to conclude that major motivating force in men was

unconscious framework.

Freud gave the core of a person as:

The ID: - It is the source of psychic energy; it seeks immediate gratification for biological or instinctual needs. It is the innate component of personality.

Kinds of instincts are:a) Life instincts:- Hunger, thirst and sex. Energy involved in this activity is libido.b) Death instincts:- Id will proceed unchecked to fulfill the needs.

As an individual matures he has a control over Id, but it remains driving force throughout life and is an important source of thinking and behavior.

The ego: - It is the conscious and logical part of human personality and it is associated with reality.

Ego keeps the Id in check through the realities of external world. Whereas Id wants an immediate gratification, Ego aims at socially acceptable

gratification. Ego gets a support from Super ego

Super Ego:- It represent the social and personal norms and serves as an ethical constraint on behavior. It can best be defined as moral conscience.

Fred’s theory does not give the total picture of behavior emerging from the personality. This theory gives an important insight into personality structure and the idea of unconscious motivation, which can be used by behavioral scientists.

2nd: - Socio-psychoanalytical Theory: - This theory recognizes the interdependence of individual and society.

Individual strive to meet the needs of the society, while society helps the individual to attain his goals.

Given by AIDER, Horney, Fromm and Sullivan. It differs from Psychoanalytical theory.

Social Variables and not the biological instincts are the important determinants in shaping the personality.

Behavioral Motivation is Conscious: - Man knows his needs and wants and his behavior is directed to meet these needs.The managers can use this theory in shaping the behavior of employees, but they can’t get a total picture of human behavior as determined by a personality.

3rd:- Trait Theory: - Trait factor theory represents a quantitative approach to the personality.

This theory postulates that an individual’s personality is composed of definite predisposition attributes called “Traits”.

A trait may be defined as any distinguishable relatively enduring way in which one individual differs form another.

Assumption:- Traits are common to many individual and vary in absolute amounts between

individuals. Traits are relatively exerting fairly universal effects on behavior regardless of the

environmental situation. Traits can be inferred from the measurement of behavioral indicators. Trait factor theory gives recognition to the continuity of the personality. This is

based on personality research.

4th: - Self Theory: - Termed as organismic or field theories, it emphasizes on the totality and interrelatedness of all behavior.

Given by Carl Rogers Contribution from Maslow, Herzberg, Levin. It identifies the self concept as organized, consistent and conceptual.

Gestalt composed of I and me; the interrelationship of I and Me.I: What a person thinks he is;Me: Window image; What other think.

a) Self Image: - It is way one sees oneself. Every person has certain beliefs about what or who he is; these beliefs are a person’s self image or identity.

b) Ideal Self: - It denotes the way one would like to be. The self image indicates the reality of a person as perceived by him and ideal self indicates the ideal position as a perceived by him.

c) Looking Glass Self; - It is the perception of a person about how others perceive his qualities and characteristics. These believes about self in large measures are reflection of other perception about the person

d) Real Self: - The real self is what one really is. A person’s self concept gives him a sense of meaningfulness and consistency.

These are the various theories of personality.Question 6th:- What do you mean by Managerial Skills? Do you think that

different skills are required at different managerial levels?Answer: - Managerial skillsSkills are the competencies which are specialized in a particular field. A skill is an

ability to do a particular work or a given task. Managerial skills and competencies are required to perform the task of a manager. There are certain specialized abilities that a manager needs to perform his task in the organization effectively and efficiently. For the efficient performance of his job a manager required these skills at all level of the organization and in all types of organizations.

Hospitals Event Management Business Organization

Real-Estate BusinessFinancialServices

ServiceAdvertising marketingAgencies

Educational Institutes

Research Concern forOrganization Production Clubs/Resorts

Managerial skills may be broadly classified as: -

Managerial Skills are required in

Conceptual Skills

ManagerialSkills

Technical HumanSkills Skills

a) Conceptual Skills: - Conceptual Skills are the competencies required to have a vision and understanding of the organization as a whole. It necessitates the existence of extensive knowledge, creativity and philosophical vision. It is the ability to see the organization as a whole, to recognize the interrelationship among different functions of the business and external force so as to integrate the working of the organization and design a path for accomplishment.

b) Technical Skills: - These skills are called Technical as these are specific capabilities learnt by rigorous training through learning and practice. Computer and software Medical Legal Financial Supervisor etc.

About are scums of the technical skills possessed by different individuals in an organization. Different job position require different technical know how.

c) Human skills: - Human skills are the inter personal capabilities of an individual. It means ability to interact positively with people and be understood positively by others.The three categories of managerial skills are interrelated and interdependent. For higher efficiency, a manager needs to posses a combination of these skills

One more important skill required by a manager is the decision skill.a. Decision skill primarily involves competencies to solve organization problems in

the view of the prevailing internal and external environment variables in the organization. The basic task of any manager is to take a right decision at the right required by a manager to be effective. It includes:

Identification of the problem Logical thinking Analytical reasoning

Creative problem solving Diagnose of the problem General intelligence Commonsense etc.

There are various levels of Management. A manager needs to posses different managerial skills at different levels of management.

Chairman, BOD, CEO Upper LevelPresident, Managing Director

Regional Managers Middle LevelBranch Managers

Supervisors Lower Level Term Leader

At upper most level in an organization, managers are involved in:- Strategic planning Decision-making Problem solving Setting of goals and objectives Formulating mission and vision Designing and updating the organizational structure Laying down programmers and policies etc. Planning and implementing change.

Hence, high degrees of conceptual skills are required at the top level of the management. However moderate degrees of Technical Skills are required at this level.

b. Middle level: - The Middle level Management concerns itself with: - Planning for Short term Implementation Controlling Liaison building Term Building etc,

Thus at the middle level of management, more of Human skills are required a sufficient degree of technical skills are also required to seek coordination and cooperation between the level of management. Conceptual skills to a sufficient degree are also required for facilitating the top management.

c. Lower Level: - The basic task of lower level of management is to supervise and control the routine activities of the staff. It further includes activities such as

Implementation Coordination Controlling Supervision etc.

The most important skills at the lower level are the Technical Skills for the day to day management of the production and marketing activities. However human skills are all pervasive and are required equal at all level of management.

Conclusions:- thus it may be concluded that different managerial skills are required at different level of management, while conceptual skills are required at different level of management, Technical skills are more important at lower levels. However human kills are all pervasive and are required equally at all level of management. As managements deals with interpersonal relationships.

Question 7th:- What do you mean by Decision making? Explain the process of decision making. How group decision making is superior to individual decision making?

Answer: - Meaning of Decision making Decision making is the essence of management since it makes or mars the success

of business as a whole. In general it means taking the final step, deliberately, before action. In management it means the process of choosing amongst the available

alternatives. If there is no choice r alternative, a decision can not be made. A decision always involves prediction. The function of a decision making is

therefore, to select the best course of action for future. Decision making is the heart of management and requires a lot of time to

complete its procedure. It requires knowledge of essential information and application of that knowledge

in a given situation. Decision making is sought whenever a problem occurs or some conditions

change, various alternatives are found the best possible out of them is selected.

For example, a manager who wants to order raw material for production will first obtain the information about available suppliers and after checking their quotations, he will place an order with the best supplier, this is how he chooses the best alternative and makes decision.

Define the Identify the alternative Analyze the problem to solve the problem alternatives

I II Strong and weak PointIII

Identify Select the best alternative resulting Implement the suitable to the situation & changes resources

VI V IV

Process of Decision making: - Steps involves in decision making are: -1. Define the problem2. Identify the alternatives3. Analyze the alternative4. Select the best alternative5. Implement the plan6. Study the consequences.

Define the problem: - decision making does not take place until we recognize its necessity. Whenever we face some problem and it is defined clearly, no solution can be achieved. Thus it is important to define the problem clearly and precisely and then collect the relevant information for solving the problem.

Identify the alternatives: - Once it is recognized that a decision has to be made regarding a correctly identified problem, all the available information and knowledge must be used to formulate the possible course of action. This will enable the manager to make best solution.

Analyze the alternative:- After having examined all the information related to the problem, all the alternative are analyzed keeping in mind the resources of the company, the nature of problem and the consequences of the alternative chosen.

Select the best alternative: - After having identified and analyzed the available alternatives, the manager selects the best alternative and acts on it. Choosing an alternative is very crucial stage in decision making. Thus an accurate analysis and evaluation of the possible effect of the alternative is of utmost importance.

The ability to assess and accept the consequences of the decision is a great asset for making the future decision.

The experience would indicate the final outcome of decision making. The result of this decision could influence further plans and evaluation criteria for future decision

also. This would help to redefine the skills necessary to make rational decision. It creates self confidence in people to make effective decisions in future.

Group Decision making Techniques: -

Interacting group(Members interact with each other face to face)

Brain Storming Nominal Group Technique(Idea generating process (Members pool their Judgment

by controlling criticism) systematically but independently)

Group Decision making is Superior to Individual Decision making

This can be proved with following points:-1. The members of group pool different ideas and views before taking a decision.2. Since entire group taken the decision there is less possibility of uncertainty,

decisions are generally taken in condition of certainty.3. The stress is laid upon the way a decision should be taken and not on why the

decision is taken.4. In individual decision making, manager may full use of resources but the group

makes full use of limited resources as the area of authority expands.5. Many individual are involved in group decision making so more data and

information can be collected.6. Individual satisfaction and commitment in group decision making are enhanced

since people feel more sense of responsibility and belongingness.7. Acceptance of decision is possible easily when an appropriate group takes it.8. Quality of decision is enhanced when the knowledge of entire group is pooled in.

Conclusion: - Decision making is crucial for the success of an organization and group decision making adds on the reliability, validity and quality of decisions. Although the group decision making has certain drawbacks like: delay in decision making and conflict etc. but it has been observed that group decision making. If done in an organized and formal manner, adds to the success of an organization.