1.

Briefly describe four functions of management (planning, organizing, leading and controlling) and give
an example to illustrate your answer.

Planning:

Planning is the process of defining organizational goals, establishing strategies to achieve those goals, and
developing comprehensive plans to coordinate and integrate the necessary activities. It involves making
decisions about the organization's future direction and determining the best course of action to reach the
desired outcomes. It is the first and most crucial management function, as it provides focus and context for the
other functions of organizing, leading, and controlling.

Example: A marketing manager plans the company's advertising campaign for the next fiscal year, setting
specific revenue and brand awareness goals, determining the marketing channels to use, and outlining the
budget and resource allocation.

Organizing:

Organizing is the function of management that focuses on determining the tasks that need to be performed,
involves the deployment of organizational resources to achieve strategic goals how those tasks should be
grouped, who will perform them. This is reflected in the division of labor and the establishment of formal lines
of authority and coordination mechanisms.

Example: A manufacturing manager organizes the production department by creating specialized teams for
assembly, quality control, and inventory management, with clear reporting structures and job responsibilities.

Leading:

Leading is the function of management that involves influencing and motivating people to work towards the
accomplishment of group or organizational objectives. It encompasses activities such as setting a clear vision,
communicating expectations, providing guidance and support, empowering employees, and creating a positive
work environment that encourages commitment and collaboration.

Example: A sales manager leads the sales team by providing a clear vision, motivating them with incentives, and
coaching them to improve their customer relationship skills.

Controlling:

Controlling is the function of management that involves monitoring and evaluating the organization's
performance, comparing it to the established goals and plans, and taking corrective action when necessary. It
helps ensure that the organization's activities and outputs align with the intended objectives and that any
deviations or issues are identified and addressed in a timely manner.

Example: A project manager controls the progress of a new product development initiative by regularly
reviewing milestones, identifying deviations from the plan, and making adjustments to keep the project on
track.
These four functions - planning, organizing, leading, and controlling - are interconnected and essential for the
effective management of an organization. Managers must continuously balance and coordinate these functions
to achieve desired outcomes, adapt to changing circumstances, and ensure the long-term success and
sustainability of the organization.

2. What is organizing in management? Give definitions to the following terms/concepts:

- Differentiation
- Specialization
- Integration
- Span of management
- Delegation of authority
- Chain of command
Organizing in management is a managerial activity that involves arranging and structuring
responsibilities and work of employees to attain desired results, which includes delegating
responsibility and authority, and establishing relationships for efficient work

✔ Differentiation means that the organization is composed of units that work on specialized
tasks using different work methods and requiring employees with unique competencies.
✔ Specialization: A component of organization structure that involves having each discrete
step of a job done by a different individual rather than having one individual do the whole
job.
✔ Integration means that the various units must be put back together so that work is
coordinated.
✔ Span of management: The trend in management towards larger spans of control, also
known as spans of management, refers to the increasing tendency for managers to
oversee and direct a greater number of subordinates or employees under their
supervision.
✔ Delegation of authority involves assigning responsibility and authority from a manager to
an employee to carry out specific activities.
✔ Chain of command is the formal line of authority within an organization that dictates who
reports to whom.

3. What are the typical phases of planning?

Define the Overall Purpose or Desired Result: The planning process begins by referencing the
overarching mission, vision, or intended outcome that the plan aims to achieve.

Take Stock Outside and Inside the System: Planners take stock of both the internal
strengths/weaknesses and external opportunities/threats that will impact the plan.

Analyze the Situation: This often involves conducting a SWOT (strengths, weaknesses,
opportunities, threats) analysis to thoroughly understand the current state and influencing factors.

Establish Goals: Based on the analysis and alignment to the overall mission of the system,
planners establish a set of goals that build on strengths to take advantage of opportunities, while
building up weaknesses and warding off threats.
 Establish Strategies to Reach Goals: The particular strategies (or methods to reach the goals)
chosen depend on matters of affordability, practicality and efficiency.

Establish Objectives Along the Way to Achieving Goals: Objectives are selected to be timely
and indicative of progress toward goals.

Associate Responsibilities and Time Lines With Each Objective: Responsibilities are assigned,
including for implementation of the plan, and for achieving various goals and objectives. Ideally,
deadlines are set for meeting each responsibility.

Write and Communicate a Plan Document: The above information is organized and written in a
document which is distributed around the system.

Acknowledge Completion and Celebrate Success: The final phase involves recognizing when
goals have been achieved and celebrating the successful execution of the plan.

4. Describe Hersey and Blanchard’s situational leadership theory (draw the chart of this
model).
5. Discuss the advantages and disadvantages of autocratic and democratic leadership?
Explain why democratic style of leadership is not always effective?

The Democratic Style of Leadership:

The democratic style of leadership, also known as the participative style, is a approach where the
leader encourages employees to be involved in the decision-making process. In this style, the
leader maintains the ultimate decision-making authority, but they seek input and feedback from
their team members before making a final decision.

- Advantages of Democratic Leadership:

Increased Employee Engagement: By involving employees in the decision-making process,

democratic leaders foster a sense of ownership and commitment among their team. This can lead
to higher levels of job satisfaction, motivation, and productivity.

Diverse Perspectives: Tapping into the collective knowledge and experiences of the team can
result in more well-rounded and innovative solutions to problems. Democratic leaders benefit
from the diverse viewpoints and ideas contributed by their employees.

Employee Development: The democratic approach provides opportunities for employees to

develop their skills and capabilities. By actively participating in decision-making, they gain
valuable experience and a deeper understanding of the organization's operations.

Improved Morale and Loyalty: Employees who feel their voices are heard and their opinions are
valued are more likely to be loyal and committed to the organization. This can contribute to a
positive work environment and lower employee turnover.

- Disadvantages of Democratic Leadership:

Time-Consuming Process: The collaborative nature of democratic decision-making can be more

time-consuming than a more autocratic approach. Reaching a consensus among team members
can prolong the decision-making process.

Potential for Conflict: If there are strong disagreements or conflicting opinions within the team,
the democratic process can lead to tensions and conflicts that the leader must navigate
effectively.

Lack of Decisiveness: In some situations, the democratic approach may result in a lack of
decisiveness, as the leader may be reluctant to make a final decision without complete agreement
from the team.

Unsuitable for Urgent Situations: When immediate action is required, the democratic style may
not be the most effective, as it involves gathering input and building consensus, which can slow
down the decision-making process.
 Advantages of Autocratic Leadership:

1. Rapid Decision-Making: Autocratic leaders can make decisions quickly without extensive
consultation, which can be beneficial in time-sensitive or crisis situations.

2. Efficient Implementation: With a centralized decision-making structure, autocratic leaders can

ensure quick and direct implementation of their decisions.

3. Consistent Policies: Autocratic leadership can provide a clear, consistent vision and direction
for the organization, as the leader has complete control over policies and strategies.

Disadvantages of Autocratic Leadership:

1. Lack of Employee Engagement: Autocratic leadership can stifle employee creativity,

motivation, and ownership, as it provides little room for input and participation from the team.

2. Resentment and Resistance: Employees may resent the lack of autonomy and feel
disempowered, leading to lower morale, decreased productivity, and potential resistance to the
leader's decisions.

3. Limited Adaptability: Autocratic leaders may be less responsive to changing circumstances

and employee needs, as they are less inclined to solicit feedback or adapt their approach based on
input from the team.

4. High Turnover: The lack of employee engagement and disempowerment can lead to higher
staff turnover, as people may feel unfulfilled and seek more collaborative work environments.

The effectiveness of autocratic leadership largely depends on the specific context, the nature of
the organization, and the readiness of the employees to accept such a leadership style. In some
cases, it may be appropriate, but in many modern organizations, a more participative and
democratic approach is often more effective in the long run.

Why Democratic Style May Not Always Be Effective:

Urgency and Time Constraints: In situations where quick decision-making is essential, the
democratic style may not be the most appropriate, as the time-consuming nature of the
collaborative process can hinder timely responses.

Complexity and Specialized Knowledge: When dealing with highly complex problems or tasks
that require specialized expertise, the leader's direct instructions and close supervision may be
more effective than relying on employee input.

Employee Competence and Motivation: If employees lack the necessary skills, knowledge, or
motivation to contribute meaningfully to the decision-making process, a more directive
leadership style may be more appropriate.
 Organizational Culture and Expectations: The democratic style may not align with the existing
organizational culture or the expectations of the employees. In such cases, a more authoritative
approach may be better received and effective.

6. What are the major objectives of organizational control? What are the four major steps in
the organizational control process? Describe three major types of organizational controls?

The six major purposes of controls are as follows:

● Controls make plans effective. Managers need to measure progress, offer feedback, and
direct their teams if they want to succeed.
● Controls make sure that organizational activities are consistent. Policies and procedures
help ensure that efforts are integrated.
● Controls make organizations effective. Organizations need controls in place if they want
to achieve and accomplish their objectives.
● Controls make organizations efficient. Efficiency probably depends more on controls
than any other management function.
● Controls provide feedback on project status. Not only do they measure progress, but
controls also provide feedback to participants as well. Feedback influences behavior and
is an essential ingredient in the control process.
● Controls aid in decision making. The ultimate purpose of controls is to help managers
make better decisions. Controls make managers aware of problems and give the
information that is necessary for decision making.

The Organizational Control Process:

The control process involves carefully collecting information about a system, process, person, or
group of people in order to make necessary decisions about each. Managers set up control
systems that consist of four key steps.

1. Establish standards to measure performance. Within an organization, overall strategic plan,

managers define goals for organizational departments in specific, operational terms that include
standards of performance to compare with organizational activities.

2. Measure actual performance. Most organizations prepare formal reports of performance

measurements that managers review regularly. These measurements should be related to the
standards set in the first step of the control process. For example, if sales growth is a target, the
organization should have a means of gathering and reporting sales data.

3. Compare performance with the standards. This step compares actual activities to performance
standards. When managers read computer reports or walk through their plans, they identify
whether actual performance meets, exceeds, or falls short of standards. Typically, performance
reports simplify such comparison by placing the erformance standards for the reporting period
alongside the actual performance for the same period and by computing the variance—that is, the
difference between each actual amount and the associated standard.
4. Take corrective actions. When performance deviates from standards, managers must
determine what changes, if any, are necessary and how to apply them. In the productivity and
quality-centered environment, workers and managers are often empowered to evaluate their own
work. After the evaluator determines the cause or causes of deviation, he or she can take the
fourth step—corrective action. The most effective course may be prescribed by policies or may
be best left up to employees' judgment and initiative.

Types of Organizational Controls:

These steps must be repeated periodically until the organizational goal is achieved.

These types of controls are formally called feedforward, concurrent, and feedback, respectively.

● Feedforward controls, sometimes called preliminary or preventive controls, attempt to

identify and prevent deviations in the standards before they occur. Feedforward controls
focus on human, material, and financial resources within the organization. These controls
are evident in the selection and hiring of new employees. For example, organizations
attempt to improve the likelihood that employees will perform up to standards by
identifying the necessary job skills and by using tests and other screening devices to hire
people with those skills.
● Concurrent controls monitor ongoing employee activity to ensure consistency with
quality standards. These controls rely on performance standards, rules, and regulations
for guiding employee tasks and behaviors. Their purpose is to ensure that work activities
produce the desired results. As an example, many manufacturing operations include
devices that measure whether the items being produced meet quality standards.
● Employees monitor the measurements; if they see that standards are not being met in
some area, they make a correction themselves or let a manager know that a problem is
occurring.
● Feedback controls involve reviewing information to determine whether performance
meets established standards. For example, suppose that an organization establishes a goal
of increasing its profit by 12 percent next year. To ensure that this goal is reached, the
organization must monitor its profit on a monthly basis. After three months, if profit has
increased by 3 percent, management might assume that plans are going according to
schedule.