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 objectives
and 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
Business

Ethical

Legal Economic

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.
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.
Degree of Commitment towards 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 Responsibility

1st. Business should confine itself to its own business. There are govt. and Social
organization to carry out social activities.
nd
2 . 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.
 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 Autocrat
c) Incompetent Autocrat
2. Participative Leader
3. 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)

H
High Consideration High Consideration
Low Structure High Structure
Consideration

Low Consideration Low Consideration

Low Structure High Structure

L H
Initiating Structure

Structure
The 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.

Consideration
The 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.
 • “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: - Perception
Perception 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

Situation
Factor 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: -
 Individual
Stressor

Group
Stressor
Organiza-
tional
Stressor
Extra
Organiza-
tion Stressor

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.
 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 Organizational
Coping 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 Consistency

The 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 Determinants
An adult’s personality is generally considered to be made up of certain influences.
Hereditary
Determined at conception. For example, physical Stature, facial attractiveness,
gender, temperament, energy level etc.

Hereditary

Situation Environment

Personality Traits
A 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 skills
Skills 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 Business
Financial
Services
Managerial Skills
Service
are required in
Advertising marketing
Agencies
Educational
Institutes

Research Concern for

Organization Production Clubs/Resorts
Managerial skills may be broadly classified as: -

Conceptual Skills

Managerial
Skills

Technical Human
Skills 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 Level

President, Managing Director

Regional Managers Middle Level

Branch 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
Point
III

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 problem
2. Identify the alternatives
3. Analyze the alternative
4. Select the best alternative
5. Implement the plan
6. 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.