Unit-4 Fom

Department of Management
LECTURE NOTES
ON
FUNDAMENTALS OF MANAGEMENT
III B. Tech I semester (JNTUH-R17)
COURSE I/C CONTENT Coordinator HOD DIRECTOR

Department of MBA
COURSE: FUNDAMENTALS OF MANAGEMENT (SM504MS)
MAIN INDEX A.Y: 2019-20
PAGE
SNO TOPIC REMARK
NO
6 LECTURE NOTES 08-30
7 TUTORIAL BANK
8 DESCRIPTIVE BANK 31
9 OBJECTIVE BANK 32
10 UNIT TEST PAPER 33-36
11 SEMINAR TOPICS 37
12 ASSIGNMENT BANK 38
13 REAL TIME APPLICATIONS 39
14 NPTEL 40
15 BLOOMS TAXONOMY 41
OUT COME BASED
16 EDUCATION -ALE 42

VISION AND MISSION OF THE INSTITUTE
INSTITUTE VISION:
To establish as an ideal academic institutions in the service of the nation, the world and the humanity
by graduating talented engineers to be ethically strong, globally competent by conducting high
quality research, developing breakthrough technologies, and disseminating and preserving technical
knowledge.
INSTITUTE MISSION:
To fulfill the promised vision through the following strategic characteristics and aspirations:
1. An atmosphere that facilitates personal commitment to the educational success of students

in an environment that values diversity and community.
2. Prudent and accountable resource management;
3. Undergraduate programs that integrate global awareness, communication skills and team
building across the curriculum;
4. Leadership and service to meet society’s needs;
5. Education and research partnerships with colleges, universities, and industries to graduate
education and training that prepares students for interdisciplinary engineering research and
advanced problem solving;
6. Highly successful alumni who contribute to the profession in the global society.

VISION AND MISSION OF THE DEPARTMENT
DEPARTMENT VISION:
To empower the students to be technologically adept, innovative, self-motivated and

responsible global citizen possessing human values and contribute significantly towards
high quality technical education with ever changing world.
MISSION:
• To offer high-quality education in the computing fields by providing an environment

where the knowledge is gained and applied to participate in research, for both students
and faculty.
• To develop the problem solving skills in the students to be ready to deal with cutting
edge technologies of the industry.
• To make the students and faculty excel in their professional fields by inculcating the
communication skills, leadership skills, team building skills with the organization of
various co-curricular and extra-curricular programmes.
• To provide the students with theoretical and applied knowledge, and adopt an
education approach that promotes lifelong learning and ethical growth.
PROGRAMME EDUCATIONAL OBJECTIVES
Sl. No. PEOs Name Program Education Objective Statements

Professional career: Establish a successful professional career in industry,
1 PEO - 1 government or academia
Higher studies or R & D: gain multidisciplinary knowledge providing a
2 PEO – 2 sustainable competitive edge in higher studies or Research and Development
Entrepreneurial: promote design, research, and implementation of products and
3 PEO – 3 services through strong communication, leadership and ethical skills, to be an

entrepreneurial

Program Outcomes
PO Name Graduate Attributes PO Statements
Engineering Apply the knowledge of mathematics, science, engineering fundamentals, and an

PO1
knowledge engineering specialization to the solution of complex engineering problems
Identify, formulate, review research literature, and analyze complex engineering
PO 2 Problem analysis problems reaching substantiated conclusions using first principles of mathematics,
natural sciences, and engineering sciences.
Design solutions for complex engineering problems and design system
Design/
components or processes that meet the specified needs with appropriate
PO 3 development of
consideration for the public health and safety, and the cultural, societal, and
solutions
environmental considerations.
Conduct Use research-based knowledge and research methods including design of
PO 4 investigations of experiments, analysis and interpretation of data, and synthesis of the information
complex problems to provide valid conclusions
Create, select, and apply appropriate techniques, resources, and modern
PO 5 Modern tool usage engineering and IT tools including prediction and modeling to complex
engineering activities with an understanding of the limitations.
Apply reasoning informed by the contextual knowledge to assess societal, health,
The engineer and
PO 6 safety, legal and cultural issues and the consequent responsibilities relevant to the
society
professional engineering practice.
Understand the impact of the professional engineering solutions in societal and
Environment and
PO 7 environmental contexts, and demonstrate the knowledge of, and need for
sustainability
sustainable development.
Apply ethical principles and commit to professional ethics and responsibilities and
PO 8 Ethics
norms of the engineering practice.
Individual and Function effectively as an individual, and as a member or leader in diverse teams,
PO 9
team work and in multidisciplinary settings.
Communicate effectively on complex engineering activities with the engineering
community and with society at large, such as, being able to comprehend and write
PO 10 Communication
effective reports and design documentation, make effective presentations, and give
and receive clear instructions.

Project Demonstrate knowledge and understanding of the engineering and management
PO 11 management and principles and apply these to one’s own work, as a member and leader in a team,
finance to manage projects and in multidisciplinary environments.
Recognize the need for, and have the preparation and ability to engage in
PO 12 Life-long learning
independent and life-long learning in the broadest context of technological change.
Program Specific Outcomes
• PSO1: Applications of Computing: Ability to use knowledge in various domains to provide

solution to new ideas and innovations.
• PSO2: Programming Skills: Identify required data structures, design suitable algorithms, develop
and maintain software for real world proble

Course Outcomes& Course Objectives
Course Outcomes
• What are the circumstances that lead to management evolution and how it will affect future
managers
• Analyze and evaluate the influence of historical forces on the current practice of
management
• Identify and evaluate social responsibility and ethical issues involved in business
situations and logically articulate own position on such issues.
• Explain how organizations adapt to an uncertain environment and identify techniques
managers use to influence and control the internal environment
• Develop the process of management's four functions: planning, organizing, leading,
and controlling.
• Interpret and properly use vocabularies within the field of management to articulate one's
own position on a specific management issue and communicate effectively with varied
audiences.
• Evaluate leadership styles to anticipate the consequences of each leadership style.
• Identify the areas to control and Selecting the Appropriate controlling
methods/Techniques
Course Objectives
• Managers manage business organizations in the dynamic global environment

• Organizations develop and maintain competitive advantage
• Business decisions are made using various tools and techniques to remain competitive
• Managers use problem-solving strategies and critical thinking skills in real-life situations
• Different areas of the business (i.e., Manufacturing/Service, Marketing, Finance
and Human Resource Management) support the vision and mission.
• Managers implement successful planning
CO-PO
III B.TECH I SYLLABUS
Regulation: R17
FUNDAMENTALS OF MANAGEMENT
UNIT – IV
Leading and Motivation: Leadership, Power and Authority, Leadership Styles; Behavioral
Leadership, Situational Leadership, Leadership Skills, Leader as Mentor and Coach, Leadership
during adversity and Crisis; Handling Employee and Customer Complaints, Team Motivation -
Types of Motivation; Relationship between Motivation, Performance and Engagement, Content
Motivational Theories - Needs Hierarchy Theory, Two Factor Theory, Theory X and Theory Y.

4.1. Leadership
4.2. Power and Authority
4.3. Leadership Styles
4.4. Behavioural Leadership
4.5. Situational Leadership
4.6. Leadership Skills
4.7. Leader as Mentor and Coach
4.8. Leadership during adversity and Crisis
4.9. Handling Employee and Customer Complaints
4.10. Team Leadership
4.11. Motivation
4.12. Types of Motivation
4.13. Relationship between Motivation, Performance and Engagement
4.14. Needs Hierarchy Theory
4.15. Two Factor Theory
4.16. Theory X and Theory Y
*********
4.1. LEADERSHIP
Leadership is a process by which an executive can direct, guide and
influence the behaviour and work of others towards accomplishment of
specific goals in a given situation.
Leadership is the ability of a manager to induce the subordinates to
work with confidence and zeal.
Leadership is the potential to influence behaviour of others. It is also defined
as the capacity to influence a group towards the realization of a goal. Leaders
are required to develop future visions, and to motivate the organizational
members to want to achieve the visions.
Leadership is a process whereby an individual influences a group of
individuals to achieve a common goal. Leadership is defined as the process of
influencing others to get the job done more effectively over a sustained period
of time. Leaders play a critical role in influencing the work behaviour of others
in the system.
According to Keith Davis, “Leadership is the ability to persuade others to
seek defined objectives enthusiastically. It is the human factor which binds a
group together and motivates it towards goals.”
According to Pearce & Robbinson, “Leadership is the process of influencing
others to work towards the attainment of specific goals.”
4.1.1. Characteristics of Leadership
1. It is an inter-personal process in which a manager is into influencing
and guiding workers towards attainment of goals.
2. It denotes a few qualities to be present in a person which includes
intelligence, maturity and personality.
3. It is a group process. It involves two or more people interacting with
each other.
4. A leader is involved in shaping and moulding the behaviour of the group
towards accomplishment of organizational goals.

5. Leadership is situation bound. There is no best style of leadership. It all
depends upon tackling with the situations.
4.1.2. Importance of Leadership
Leadership is an important function of management which helps to maximize

efficiency and to achieve organizational goals. The following points justify the
importance of leadership in a concern.
1. Initiates action- Leader is a person who starts the work by
communicating the policies and plans to the subordinates from where
the work actually starts.
2. Motivation- A leader proves to be playing an incentive role in the
concern’s working. He motivates the employees with economic and non-
economic rewards and thereby gets the work from the subordinates.
3. Providing guidance- A leader has to not only supervise but also play a
guiding role for the subordinates. Guidance here means instructing the
subordinates the way they have to perform their work effectively and
efficiently.
4. Creating confidence- Confidence is an important factor which can be
achieved through expressing the work efforts to the subordinates,
explaining them clearly their role and giving them guidelines to achieve
the goals effectively. It is also important to hear the employees with
regards to their complaints and problems.
5. Building morale- Morale denotes willing co-operation of the employees
towards their work and getting them into confidence and winning their
trust. A leader can be a morale booster by achieving full co-operation so
that they perform with best of their abilities as they work to achieve
goals.
6. Builds work environment- Management is getting things done from
people. An efficient work environment helps in sound and stable growth.
Therefore, human relations should be kept into mind by a leader. He
should have personal contacts with employees and should listen to their
problems and solve them. He should treat employees on humanitarian
terms.
7. Co-ordination- Co-ordination can be achieved through reconciling
personal interests with organizational goals. This synchronization can
be achieved through proper and effective co-ordination which should be
primary motive of a leader.
4.2. Authority and Power
The authority exercised is a kind of legitimate power and people follow

figures exercising it, because their positions demand so irrespective of the
person holding the position. Leaders in organizations and elsewhere may
have formal authorities but they mostly rely on the informal authority
that they exercise on people to influence them.

Leaders are trusted for their judgment and respected for their expertise,
integrity etc and hence followed and not because they hold a certain position.
For e.g. M.K. Gandhi for most part did not hold any official position to lead the
Indian freedom struggle.
It is also important to understand that a formal authority and power emerging
from it, might not always be able to influence people in the desired manner as;
in times of crisis and difficulties people view it as coercion. On the other hand
leadership tends to create followers out of free will and choice without forcing
them to accept anything thrown their way.
Authority rarely provides a scope for feedback, constructive criticism or
opinions of the people on whom it is exercised however leaders provide ample
platform to their followers to voice their thoughts and feedback.
When dealing with adults, the sole use of authority to direct and discipline
them hardly works, leadership provides a better approach of sharing and
involving thus building rapports with followers and creating long term
relationships.
Authority can hardly make people change their attitudes and behaviours
with lasting effects and results however a leader inspires followers through self
modelled ways and hence leadership displays greater effectiveness in
addressing attitudes and behaviours of people.
Exercising authority sometimes limits the approaches to arrive at solutions for
issues and problems while leadership encourages people to look beyond the
obvious and think innovatively and sometimes emerge with radical solutions.
Apart from it, the biggest difference between the two as cited by Stephen R
Covey is the moral authority held by leaders over the followers which is absent
in the case of power from authority. Within the organizational setup when
leaders also have moral authority on their subordinates by establishing a
synchrony in their words and actions; the rest of the structure and processes
of the organization also get aligned to it, thus creating a robust and
transparent culture.
Authoritative way of working also encourages individuals to work in silos while
in the organizations of today; the leaders need to have a complete picture and
coordinate with other functions and departments as and when required. It is
indeed difficult for mangers and leaders to move out of their circle of authority
and coordinate and interact with external people. However the need of the
hour and the more effective approach to leadership and management is when
leaders come out of their comfort zone and move from exercising authority on
a small group to leading the entire organization.
Individuals, who do not rely on authority but lead people, are the ones
who enjoy the privilege of their ideologies and thoughts practiced by
later generations long after they are gone. Even with individuals who held
positions of responsibilities, the ones who actually led their people are the
ones remembered and followed.
4.3. Leadership Styles

All leaders do not possess same attitude or same perspective. As
discussed earlier, few leaders adopt the carrot approach and a few adopt the
stick approach. Thus, all of the leaders do not get the things done in the same
manner. Their style varies. The leadership style varies with the kind of people
the leader interacts and deals with. A perfect/standard leadership style is one
which assists a leader in getting the best out of the people who follow him.
Some of the important leadership styles are as follows:
Autocratic leadership style: In this style of leadership, a leader has complete
command and hold over their employees/team. The team cannot put forward
their views even if they are best for the teams or organizational interests. They
cannot criticize or question the leader’s way of getting things done. The leader
himself gets the things done. The advantage of this style is that it leads to
speedy decision-making and greater productivity under leader’s supervision.
Drawbacks of this leadership style are that it leads to greater employee
absenteeism and turnover.
This leadership style works only when the leader is the best in performing or
when the job is monotonous, unskilled and routine in nature or where the
project is short-term and risky.
The Laissez Faire Leadership Style: Here, the leader totally trusts their
employees/team to perform the job themselves. He just concentrates on the
intellectual/rational aspect of his work and does not focus on the management
aspect of his work. The team/employees are welcomed to share their views
and provide suggestions which are best for organizational interests. This
leadership style works only when the employees are skilled, loyal, experienced
and intellectual.
Democratic/Participative leadership style: The leaders invite and encourage
the team members to play an important role in decision-making process,
though the ultimate decision-making power rests with the leader. The leader
guides the employees on what to perform and how to perform, while the
employees communicate to the leader their experience and the suggestions if
any. The advantages of this leadership style are that it leads to satisfied,
motivated and more skilled employees. It leads to an optimistic work
environment and also encourages creativity. This leadership style has the only
drawback that it is time-consuming.
Bureaucratic leadership: Here the leaders strictly adhere to the
organizational rules and policies. Also, they make sure that the
employees/team also strictly follows the rules and procedures. Promotions
take place on the basis of employees’ ability to adhere to organizational rules.
This leadership style gradually develops over time. This leadership style is
more suitable when safe work conditions and quality are required. But this
leadership style discourages creativity and does not make employees self-
contented.
4.4. Behavioural Leadership:

The foundation for the style of leadership approach was the belief that
effective leaders utilized a particular style to lead individuals and groups to
achieving certain goals, resulting in high productivity and morale. Unlike trait

theories, the behavioural approach focused on leader effectiveness, not the
emergence of an individual as a leader. There are two prominent styles of
leadership such as task orientation, and employee orientation. Task
orientation is the emphasis the leader place on getting the job done by such
actions as assigning and organizing the work, making decision, and evaluating
performance.
Employee orientation is the openness and friendless exhibited by the
leader and his concern for the needs of subordinates.Two major research
studies directed toward investigating the behavioural approach to leaderships
is
i) Ohio State University Studies and
ii) University of Michigan Studies.
Ohio State Studies: Initiating Structures and Consideration: They identified
two independent leadership dimensions.
Initiating Structure: This concerned the degree to which the leader organized
and defined the task, assigned the work to be done, established
communication networks and evaluated workgroup performance.
Consideration: which was defined as behaviour that involves trust, mutual
respect, friendship; support and concern for the welfare of the employee?
Consideration refers to an emphasis on an employee orientation leadership
style. Their findings indicated that a mixture of initiating structure and
consideration leader behaviour, which are achieved the highest effectiveness,
depends largely on situational factors.
Michigan State Studies: Two distinct styles of leadership were developed from
their studies:
Job-centred leaderships style, which focused on the use of close supervision,
legitimate and coercive power, meeting schedules and evaluating work
performance.
Employee-centred style, which is people oriented and emphasis delegation of
responsibility and a concern for employee welfare, needs, advancement and
personal growth.
Their findings reported that employee centred and job centred styles
result in productivity increase. However, job centred behaviour created tension
and pressure and resulted in lower satisfaction and increased turnover and
absenteeism.
Employee centred style is the best leadership style. -Leadership’s style is
too complex to be viewed as unidimensional, but more than two dimensions
may complicate the interpretation of leadership behaviour. The measurement
of leadership style for each of the approaches was accomplished through the
use of questionnaire.
This method of measurement is both limited and controversial. Further,
in search of the most effective leadership’s style, the research findings
suggested that a universally accepted best style was inappropriate to the
complexities of modern organizations.
4.5. Situational Leadership

Leaders are essentially people who know their goals and have the power
to influence the thoughts and actions of others to garner their support and
cooperation to achieve these goals. In-case of leaders these goals are rarely
personal and generally to serve the larger good.
Ever since man was a hunter gatherer and lived in closely knit groups, they
had leaders who led the hunting expeditions and took greater risk than the
rest of the group members. In turn they were bestowed with larger share of
hunting, respect and a higher position in the group. With changing times, how
leadership is perceived has also changed, but, it remains an important aspect
of social fabric nevertheless.
The initial theories proposed that leaders are born and cannot be created,
there are certain distinct characteristics possessed by few men which make
them leaders. However, for the current discussion we would try and take a
closer look at another interesting theory which was proposed called Situational
Leadership Theory. This theory says that the same leadership style cannot be
practiced in all situations, depending upon the circumstance and
environmental context the leadership style also changes. The pioneers of this
theory were Kenneth Blanchard and Paul Hersey.
The model encourages the leaders to analyze a particular situation in
depth and then lead in the most appropriate manner, suitable for that
situation. The three aspects that need could be considered in a situation are:
▪ Employees’ competences
▪ Maturity of the employees
▪ Complexity of the task
▪ Leadership style
In the Situational Leadership model, the leadership style has been
divided into 4 types:
S1: Telling - Telling style is associated with leaders who minutely supervise
their followers, constantly instructing them about why, how and when of the
tasks that need to be performed.
S2: Selling - Selling style is when a leader provide controlled direction and is a
little more open and allows two way communication between him/herself and
the followers thus ensuring that the followers buy in the process and work
towards the desired goals.
S3: Participating - This style is characterized when the leaders seeks opinion
and participation of the followers to establish how a task should be performed.
The leader in this case tries creating relationship with the followers.
S4: Delegating - In this case, the leader plays a role in decisions that are
taken but passes on or delegates the responsibilities of carrying out tasks to
his followers. The leader however monitors and reviews the process.
The developmental level of follower is an important indication for a leader to
decide the most appropriate leadership style for them:
D4 - High Competence, High Commitment - The followers who are identified
in this category are the ones who have high competence and high commitment
towards tasks to be performed. It might happen so that they turn out better
than their leaders in performing these tasks. (For e.g. cricketing legend Sachin

Tendulkar playing in the Indian cricket team under the captainship of
Mahendra Singh Dhoni)
D3 - High Competence, Variable Commitment - This category consists of
followers who have the competence to do the job but their commitment level is
inconsistent. They also tend to lack the confidence to go out and perform task
alone. (E.g. President Barack Obama)
D2 - Some Competence, Low Commitment - In this case, the followers have
a certain level of competence which might be sufficient to do the job but they
are low on commitment towards the tasks. Despite of having relevant skills to
perform the task they seek external help when faced with new situations. (A
team member made the trainer for new joiners)

D1 - Low Competence, High Commitment - This category of followers may
not have the specific skill required but they display a high level of commitment
towards the task they have to perform, with confidence and motivation, they
figure out ways to complete the tasks. (E.g. Mohandas Karamchand Gandhi, a
lawyer by profession who spearheaded the Indian Freedom Struggle). The
above information regarding the style of leadership and the type of followers
sure has a correlation to each other which forms the basis of situational
leadership. So, a situational leader would try to accommodate his leadership
style as per the situation and the level of competence and commitment of his
followers. This information is also an important aspect to consider when senior
leaders act as coaches for their subordinates in the organizations.

4.6. Leadership Skills
Who is a leader - A strong leader is one who thinks and plans ahead. He is
ready with solutions and he understands the pulse of his employees. However,
what are the skills which a leader must possess to be able to do his job well.
You can be an effective leader if you have following traits...
Master Your Time: Effective leaders will always be in a position to manage
their time well. They would know how to prioritize list of activities / pending
tasks. Most important - they would know the different between ’urgent’ and
‘important’. Remember, not everything that is urgent is important. Also, not
everything that is important is urgent.
Ask Questions: Leaders will ask questions that help them assess employees’
contribution to the organization and also help employees understand how
better they can contribute towards organizational goals. A Leader must ask his
/ her employees - the task they perform, do they feel their task is linked to the
big picture, and is there anything that comes in the way of their performance.
Provide Work-Life Balance: In today’s world where working hours are on a
rise, an effective leader must ensure that his / her workers are able to
maintain a balance between their personal and professional lives. Effective
leaders should always lead by example by leaving on time, avoiding meetings
during Fridays or end of the business days, not calling employees on their day
off. Remember, an effective leader will have effective followers only if they are
not burnt out or feel they are over worked.
Manage Employee’s Professional growth: An effective leader will always
chart out a personal development plan [PDP] along with his / her employee.
He would identify the training the employee will need to go through keeping in
mind his personal development plan. The employees will feel encouraged and
valued.
Let your employees speak: An effective leader has to be a good listener. Have
an "open hour" with your employees and let them speak their heart out. You
will be surprised to know the number of ideas they have. Always follow and
believe in the mantra "Silence is Golden". Your employees will feel they are
being heard and they also have a way to express their thoughts.
Facilitate Brainstorming... Generate ideas: Effective leaders will always
encourage people to get together in a room and brainstorm on ideas to solve a
particular problem. Remember, discussions are always healthy and almost all
the times they also help creating solutions which are mutually agreed upon.
Create Talent Pool: Smart leaders will always be ready for any shortage in
staff. They will have their talent pool ready in case of any crisis situation. They
will ensure that every employee has a trained / trainable back-up.
Be Courageous: As per Peter Drucker, “whenever you see a successful
business, someone once made a courageous decision”. An effective leader will
always be ready to take difficult / courageous decisions when required.
Be Competent: The art of “tooting your own horn without blowing it” is a
delicate balance of demonstrating your “expertise” and “taking credit” in a way
that people notice their success. And one of the safest ways to do it is to

celebrate and bring attention to team achievements. Praise people for good
work, and when you do so, be specific on what exactly you liked.
Shaking hands is a gesture that will show them that you are actually happy
about their contribution and their success. And thus, you will prove out your
competence as a leader.
Be Visionary: What’s lying ahead in future is a topic of fascination and has
mystic charm. This is a trait of absolute confidence and should be handled
with care. It is important to make goals specific, with possible outcomes and
benefits, without making promises that you may not be able to keep. A
successful leader knows his goals and checks if performance and goals are in
symmetry.
4.7. Leader as Mentor and Coach
Leaders are naturals in developing people around them, because they
aim to serve others. They do that by investing the time to get to know their
people and understanding their strengths and weaknesses. Leaders are
good listeners. They spend more time listening than talking. By listening,
they have a deeper understanding of their people’s capabilities.
There are a couple of ways in which leaders can develop their people. The
two most common ways are mentoring and coaching. In order for a leader
to use each of these methods, they need to have experience and
background. It is important that they are competent. When does a leader
use one over the other? A leader uses experience and knowledge to help or
guide a less experienced or knowledgeable individual. The mentor will use
his/her expertise to get the person up to speed and share their experience,
while coaching is used with qualified people who have experience. Done
right, coaching can help improve the effectiveness and performance of the
coachee. The coach uses his/her ability to ask the right questions that
make the coachee think through the situation help them come up with the
answer. A coach asks pointed questions that hold the coachee accountable
for their actions. In coaching, the person being coached is challenged with
questions that make them dig deep and come up with the answer that can
help them move forward.
While a leader coaches and mentors others, they themselves also have
mentors and coaches that help them continue to help them develop. A
leader believes in continuous improvement and dedicates time to develop
them. Leaders always give back to others. It is this commitment that makes
them special. To raise others we must equip ourselves with the skills that
make us capable to help others. Remember that leadership is about giving.
4.8. Leadership in the Face of Adversity
The best leaders are those who can face adversity and turnaround their
companies from times of trouble to positions of strength. Throughout history,
the leaders who were feted and achieved fame are those who took charge
during times of crisis and managed to actualize victory. Similarly, in recent
decades, the business world has seen a surfeit of leaders who stepped in when

their companies were going through a rough patch and with their leadership
ensured that they could revive and rejuvenate their companies.
For instance, the legendary Lee Iacocca who was at the helm in Ford Motors
took over the leadership of another auto major, Chrysler when the company
was going through troubled times and in a matter of a few years ensured that
it turned the corner. The case of the late Steve Jobs is another example of how
he was recalled to Apple when the company was facing adversity and
shrinking market share and with his game changing approach to business
ensured that Apple is the most profitable company in the world. In recent
weeks, the respected founder of Infosys, NR Narayana Murthy, has been
recalled from retirement and tasked with the job of restoring the company to
its previous dominant position.
The Elements of Leadership in Adversity
What these examples tell us is that true leadership is a phenomenon that
thrives on challenges and the authentic leaders are those who can turn
adversity into opportunity. These leaders follow the maxim that when the
going gets tough, the tough get going. More often than not, they lead by
example and from the front, which means that they set a benchmark for the
employees to follow which often motivates the employees to perform better and
actualize their potential. In many cases, leadership in times of adversity works
by rejuvenating the company through stirring words and actions and the latter
are more important as the nuts and bolts of leadership lies in execution. The
example of how Ratan Tata turned the TATA group around is a case in point
as to how leaders need to work more and talk less and ensure that execution
is as important as or more important than planning and conceptualization.
When one considers businesses that are moribund or near to failure, we find
that bringing in leaders who can inspire and actualize success helps a lot in
reviving the fortunes of these companies. For instance, the example of how the
public sector enterprises in India have been made profitable and that too
worthy of high market capitalization from a situation where they were close to
being shut tells us that collective leadership in the face of adversity is as
important as charismatic and visionary leadership.
The Characteristics of Leadership in Adversity
The key point to be noted here is that anyone can ride the success of
companies but it takes a real leader with vision, mission, and hard work to
turn around companies that are struggling. One of the important aspects of
such leadership is that they must have a team of peers and managers who are
as committed to the revival of the company as the leader. This is critical and
necessary for leaders tor turnaround the companies. Another aspect about
such leadership is that they must be given time to succeed as transformations
do not happen overnight unless one expects miracles, which is something
most business leaders discount. Therefore, time, patience, effort, and
cooperation are all factors that play a crucial role in determining whether the
leader succeeds in his or her mission. The case of the former Defence
Secretaries, Robert McNamara in the 1960s, and Robert Gates in recent years

illustrates that for deep changes to actualize; the leaders need time, patience,
and energy as well as a single-minded devotion to their tasks.
4.9. Dealing with Customer Complaints
At some point, everyone in business has to deal with an upset customer. The
challenge is to handle the situation in a way that leaves the customer thinking
you operate a great company. If you’re lucky, you can even encourage him or
her to serve as a passionate advocate for your brand.
When it comes down to it, many customers don't even bother to complain.
They simply leave and buy from your competitors. Research suggests that up
to 80 percent of customers who leave were, in fact, "satisfied" with the original
company. Obviously, customer satisfaction is not enough. Businesses
nowadays need to positively delight customers if they want to earn their
loyalty.
It may seem counter-intuitive, but a business owner’s ability to effectively deal
with customer complaints provides a great opportunity to turn dissatisfied
customers into active promoters of the business. Here are some customer-
oriented tips I’ve learned while working in the business coaching business:
1. Listen carefully to what the customer has to say, and let them
finish. Don't get defensive. The customer is not attacking you personally; he or
she has a problem and is upset. Repeat back what you are hearing to show
that you have listened.
2. Ask questions in a caring and concerned manner.
The more information you can get from the customer, the better you will
understand his or her perspective. I’ve learned it’s easier to ask questions than
to jump to conclusions.
3. Put yourself in their shoes.
As a business owner, your goal is to solve the problem, not argue. The
customer needs to feel like you’re on his or her side and that you empathize
with the situation.
4. Apologize without blaming.
When a customer senses that you are sincerely sorry, it usually diffuses the
situation. Don't blame another person or department. Just say, "I'm sorry
about that.”
5. Ask the customer, "What would be an acceptable solution to you?"
Whether or not the customer knows what a good solution would be, I’ve found
it’s best to propose one or more solutions to alleviate his or her pain. Become a
partner with the customer in solving the problem.
6. Solve the problem, or find someone who can solve it— quickly!
Research indicates that customers prefer the person they are speaking with to
instantly solve their problem. When complaints are moved up the chain of
command, they become more expensive to handle and only add to the
customer's frustration.
There is no getting around customer complaints, regardless of your industry.
However, by employing these steps and taking the time to review the issue
with the customer, you can turn challenges into something constructive.

4.9.1. Handle Employee Complaints
As a human resources professional, you may wonder how to respond to

employee complaints, especially if you get one or two every day either in
person or delivered on an employee complaint form.
Depending on the gravity of the situation, you may be able to address the
complaint then and there or you may find it necessary to get others involved.
Examples of Common Complaints
Employee complaints run the gamut between serious allegations that require
official action and perceived wrongs with little or no substance. They often
stem from employee perceptions, though, and are relatively easy to resolve.
"My manager is mean to me. He yells at me in front of other co workers and
tells me to do my job."
"My boss is always looking over my shoulder. I don't like it. She times my
breaks and stands behind me watching what I do."
"At our last department meeting, they told us to follow the chain of command
instead of going to HR to complain.”
The thing about employee complaints like this is that they're subjective. For
instance, take the example “My manager is mean to me. He yells at me in front
of other co workers and tells me to do my job.”
• Is the supervisor actually mean? Some supervisors are, of course.
Others are not mean; they're just dealing with problem employees.
• Is the supervisor yelling or just speaking? People have very different
perceptions of yelling. Some people take any form of criticism as yelling.
But sometimes supervisors do yell, and it's not appropriate behaviour.
• What about telling the employee to do her job? Is she slacking off? Or is
the manager nitpicking or giving unclear instructions? Is the command
“do your jobs” about the employee playing on her phone, or is it a
response to the employee's complaint about a safety violation?
It's critical that you don't become too hardened to employee complaints,
because your most important job is to help the business. If you ignore a
complaint that a manager is yelling and it turns out that the manager truly is
yelling, turnover may increase or customers might overhear and that's
damaging to the business.
• Be careful about telling people that they always have to go through the
chain of command before complaining. For example, a sexually harassed
female may not feel comfortable going to her male supervisor's boss to
complain about the harassment. In this case, the policy of always
following the chain may result in continued harassment and legal
liability for the company.
4.10. Team Leadership
A lack of leadership is often seen as a roadblock to a team's
performance. According to Stewart and Manz “More specifically, work
team management or supervision is often identified as a primary reason
why self-management teams fail to properly develop and yield
improvements in productivity, quality, and quality of life for American
workers.” Rather than focusing on ineffective teams, Larson and

LaFasto (1989) looked in the opposite direction by interviewing excellent
teams to gain insights as to what enables them to function to a high
degree. They came away with the following conclusions:
o A clear elevating goal — they have a vision
o Results driven structure — visions have a business goal
o Competent team members — with right number and mix of diversity
o Unified commitment — they are a team, not a group
o A collaborative climate — aligned towards a common purpose
o High standards of excellence — they have group norms
o Principled leadership — the central driver of excellence
o External support — they have adequate resources
Team Leadership Model
While there are several Team Leadership models, Hill's Team model is
perhaps one of the best known ones as it provides the leader or a
designated team member with a mental road map to help diagnose team
problems, and then take appropriate action to correct team problems
(Northouse, 2007). This Team Leadership model is built on a number of
research projects:
Hill's Team Leadership Model

The Four Layers or Steps in the Team Leadership
Model
1. Top layer: Effective team performance begins with leader’s mental
model of the situation and then determining if the situation
requires Action or Monitoring?
2. Second Layer: Is it at an Internal or External leadership level?
3. Third layer: Is it Task, Relational, or an Environmental
intervention? Select a function depending on the type of intervention.
4. Bottom layer: Correctly performing the above three steps create
high Performance through Development and Maintenance functions
Team Leadership Function Interventions
Internal Task Functions:
o Focus on goals by clarifying and/or getting agreement
o Restructure plans, processes, roles, etc. in order to gain desired
results (process improvement)
o Guide the decision-making process so that better information is
obtained, coordination is better, focusing on issues, etc.
o Train members through both formal and informal means
o Assess performance an confront when necessary
Internal Relationship Functions
o Coach team members
o Use more collaborative methods to involve all team members
(this survey includes questions to determine if the environment is
collaborative)
o Manage conflict
o Build commitment and esprit de corps through the use
of ethos leadership
o Satisfy team members' needs
o Model what you expect from your team members
External Environmental Functions
o Network to increase influence and gather information
o Advocate by representing your team so that it shows them at their
best
o Get support for your team by gathering resources and recognition
for your team
o Buffer the team from environmental distractions
o Assess the environment through surveys and other performance
indicators to determine its impact on the organization
o Share information with the team
4.11. Motivation
It is an important factor which encourages persons to give their best
performance and help in reaching enterprise goals. A strong positive
motivation will enable the increased output of employees but a negative
motivation will reduce their performance. A key element in personnel
management is motivation.

Motivation has been variously defined by scholars.
According to Likert, “It is the core of management which shows that every
human being gives him a sense of worth in face-to face groups which are most
important to him….A supervisor should strive to treat individuals with dignity
and a recognition of their personal worth.”
According to Berelson and Steiner:
“A motive is an inner state that energizes, activates, or moves and directs or
channels behaviour goals.
According to Lillis:
“It is the stimulation of any emotion or desire operating upon one’s will and
promoting or driving it to action.”
According to The Encyclopedia of Management:
“Motivation refers to degree of readiness of an organism to pursue some
designated goal and implies the determination of the nature and locus of the
forces, including the degree of readiness.”
According to Dubin:
“Motivation is the complex of forces starting and keeping a person at work in
an organization.”
According to Vance:
“Motivation implies any emotion or desire which so conditions one’s will that
the individual is properly led into action.”
According to Vitiles:
“Motivation represents an unsatisfied need which creates a state of tension or
disequilibrium, causing the individual to make in a goal-directed pattern
towards restoring a state of equilibrium by satisfying the need.”
According to Memoria:
“A willingness to expend energy to achieve a goal or reward. It is a force that
activates dormant energies and sets in motion the action of the people. It is
the function that kindles a burning passion for action among the human
beings of an organisation.”
4.11.1. Nature of Motivation
Motivation is a psychological phenomenon which generates within an
individual.
A person feels the lack of certain needs, to satisfy which he feels working
more. The need satisfying ego motivates a person to do better than he
normally does.
From definitions given earlier the following inferences can be derived:
1. Motivation is an inner feeling which energizes a person to work more.
2. The emotions or desires of a person prompt him for doing a particular work.
3. There are unsatisfied needs of a person which disturb his equilibrium.
4. A person moves to fulfill his unsatisfied needs by conditioning his energies.
5. There are dormant energies in a person which are activated by channelizing
them into actions.
4.11.2. Types of Motivation
There are two types of motivation, Intrinsic and Extrinsic motivation. It's
important to understand that we are not all the same; thus effectively

motivating your employees requires that you gain an understanding of the
different types of motivation. Such an understanding will enable you to better
categorize your team members and apply the appropriate type of motivation.
You will find each member different and each member's motivational needs
will be varied as well. Some people respond best to intrinsic which means
"from within" and will meet any obligation of an area of their passion.
Quite the reverse, others will respond better to extrinsic motivation

which, in their world, provides that difficult tasks can be dealt with provided
there is a reward upon completion of that task. Become an expert in
determining which type will work best with which team members.
4.11.2.1. Intrinsic Motivation
Intrinsic motivation means that the individual's motivational stimuli are
coming from within. The individual has the desire to perform a specific task,
because its results are in accordance with his belief system or fulfills a desire
and therefore importance is attached to it.
Our deep-rooted desires have the highest motivational power. Below are some
examples:
Acceptance: We all need to feel that we, as well as our decisions, are accepted
by our co-workers.
Curiosity: We all have the desire to be in the know.
Honor: We all need to respect the rules and to be ethical.
Independence: We all need to feel we are unique.
Order: We all need to be organized.
Power: We all have the desire to be able to have influence.
Social contact: We all need to have some social interactions.
Social Status: We all have the desire to feel important.
4.11.2.2. Extrinsic Motivation
Extrinsic motivation means that the individual's motivational stimuli are
coming from outside. In other words, our desires to perform a task are
controlled by an outside source. Note that even though the stimuli are coming
from outside, the result of performing the task will still be rewarding for the
individual performing the task.
Extrinsic motivation is external in nature. The most well-known and the most
debated motivation is money. Below are some other examples:
Employee of the month award
Benefit package
Bonuses
Organized activities
4.11.2.3. Other types of Motivation
Positive Motivation:
Positive motivation or incentive motivation is based on reward. The workers
are offered incentives for achieving the desired goals. The incentives may be in
the shape of more pay, promotion, recognition of work, etc. The employees are
offered the incentives and try to improve their performance willingly. According
to Peter Drucker, the real and positive motivators are responsible for
placement, high standard of performance, information adequate for self-

control and the participation of the worker as a responsible citizen in the plant
community. Positive motivation is achieved by the co-operation of employees
and they have a feeling of happiness.
Negative Motivation:
Negative or fear motivation is based on force or fear. Fear causes employees to
act in a certain way. In case, they do not act accordingly then they may be
punished with demotions or lay-offs. The fear acts as a push mechanism. The
employees do not willingly co-operate, rather they want to avoid the
punishment.
Though employees work up-to a level where punishment is avoided but this
type of motivation causes anger and frustration. This type of motivation
generally becomes a cause of industrial unrest. In spite of the drawbacks of
negative motivation, this method is commonly used to achieve desired results.
There may be hardly any management which has not used negative motivation
at one or the other time.
Achievement Motivation:
It is the drive to pursue and attain goals. An individual with achievement
motivation wishes to achieve objectives and advance up on the ladder of
success.Here, accomplishment is important for its own sake and not for the
rewards that accompany it. It is similar to ‘Kaizen’ approach of Japanese
Management. This motivation is more important for professionals.
Affiliation Motivation:
It is a drive to relate to people on a social basis. Persons with affiliation
motivation perform work better when they are complimented for their
favourable attitudes and co-operation. This motivation is of greater use where
money cannot be used to motivate, especially minimum-wage employees and
contingent professionals.
Competence Motivation:
It is the drive to be good at something, allowing the individual to perform high
quality work. Competence motivated people seek job mastery, take pride in
developing and using their problem-solving skills and strive to be creative
when confronted with obstacles. They learn from their experience. Specialists,
like heart surgeons would feel motivated if they get chances to operate upon
unique cases.
Power Motivation
It is the drive to influence people and change situations. Power motivated
people create an impact on their organization and are willing to take risk to do
so. Ms Mayawati, Chief Minister of UP, is power motivated.
Attitude Motivation:
Attitude motivation is how people think and feel. It is their self- confidence,
their belief in themselves, and their attitude to life. It is how they feel about
the future and how they react to the past.
Incentive Motivation:
It is where a person or a team reaps a reward from an activity. It is “you do
this and you get that”, attitude. It is the type of rewards and prizes that drive
people to work a little harder. Most of the unorganized job workers get
motivated when they are offered more money.

Fear Motivation:
Fear motivation coercions a person to act against will. It is instantaneous and
gets the job done quickly. It is helpful in the short run. Managers following
Theory x come into this category. In Indian army, this kind of motivation is
very popular.
4.12. Motivation Theories
From the very beginning, when the human organisations were established,
various thinkers have tried to find out the answer to what motivates people to
work. Different approaches applied by them have resulted in a number of
theories concerning motivation.
These are discussed in brief in that order.
4.13. Abraham Maslow’s Need Hierarchy Theory

It is probably safe to say that the most well-known theory of motivation
is Maslow’s need hierarchy theory Maslow’s theory is based on the human
needs. Drawing chiefly on his clinical experience, he classified all human
needs into a hierarchical manner from the lower to the higher order.
In essence, he believed that once a given level of need is satisfied, it no longer
serves to motivate man. Then, the next higher level of need has to be activated
in order to motivate the man.
1. Physiological Needs:
These needs are basic to human life and, hence, include food, clothing,
shelter, air, water and necessities of life. These needs relate to the survival and
maintenance of human life. They exert tremendous influence on human
behaviour. These needs are to be met first at least partly before higher level

needs emerge. Once physiological needs are satisfied, they no longer motivate
the man.
2. Safety Needs:
After satisfying the physiological needs, the next needs felt are called safety
and security needs. These needs find expression in such desires as economic
security and protection from physical dangers. Meeting these needs requires
more money and, hence, the individual is prompted to work more. Like
physiological needs, these become inactive once they are satisfied.
3. Social Needs:
Man is a social being. He is, therefore, interested in social interaction,
companionship, belongingness, etc. It is this socialising and belongingness
why individuals prefer to work in groups and especially older people go to
work.
4. Esteem Needs:
These needs refer to self-esteem and self-respect. They include such needs
which indicate self-confidence, achievement, competence, knowledge and
independence. The fulfilment of esteem needs leads to self-confidence,
strength and capability of being useful in the organisation. However, inability
to fulfil these needs results in feeling like inferiority, weakness and
helplessness.
5. Self-Actualisation Needs
This level represents the culmination of all the lower, intermediate, and higher
needs of human beings. In other words, the final step under the need
hierarchy model is the need for self-actualization. This refers to fulfilment.
The term self-actualization was coined by Kurt Goldstein and means to
become actualized in what one is potentially good at. In effect, self-
actualization is the person’s motivation to transform perception of self into
reality.
4.14. Herzberg’s Two Factor Theory

The psychologist Frederick Herzberg extended the work of Maslow and propsed
a new motivation theory popularly known as Herzberg’s Motivation Hygiene

(Two-Factor) Theory. Herzberg conducted a widely reported motivational study
on 200 accountants and engineers employed by firms in and around Western
Pennsylvania.
He asked these people to describe two important incidents at their jobs:
(1) When did you feel particularly good about your job, and
(2) When did you feel exceptionally bad about your job? He used the critical
incident method of obtaining data.
The responses when analysed were found quite interesting and fairly
consistent. The replies respondents gave when they felt good about their jobs
were significantly different from the replies given when they felt bad. Reported
good feelings were generally associated with job satisfaction, whereas bad
feeling with job dissatisfaction.
Herzberg labelled the job satisfiers motivators, and he called job dissatisfies
hygiene or maintenance factors. Taken together, the motivators and hygiene
factors have become known as Herzberg’s two-factor theory of motivation
According to Herzberg, the opposite of satisfaction is not dissatisfaction. The
underlying reason, he says, is that removal of dissatisfying characteristics
from a job does not necessarily make the job satisfying. He believes in the
existence of a dual continuum.
The opposite of ‘satisfaction’ is ‘no satisfaction’ and the opposite of
‘dissatisfaction’ is ‘no dissatisfaction.

According to Herzberg, today’s motivators are tomorrow’s hygiene because the
latter stop influencing the behaviour of persons when they get them.
Accordingly, one’s hygiene may be the motivator of another.
4.15. Theory X and Theory Y
In 1960, Douglas McGregor formulated Theory X and Theory Y suggesting two

aspects of human behaviour at work, or in other words, two different views of
individuals (employees): one of which is negative, called as Theory X and the
other is positive, so called as Theory Y. According to McGregor, the perception
of managers on the nature of individuals is based on various assumptions.
Assumptions of Theory X
• An average employee intrinsically does not like work and tries to escape
it whenever possible.
• Since the employee does not want to work, he must be persuaded,
compelled, or warned with punishment so as to achieve organizational
goals. A close supervision is required on part of managers. The
managers adopt a more dictatorial style.
• Many employees rank job security on top, and they have little or no
aspiration/ ambition.
• Employees generally dislike responsibilities.
• Employees resist change.
• An average employee needs formal direction.
Assumptions of Theory Y
• Employees can perceive their job as relaxing and normal. They exercise
their physical and mental efforts in an inherent manner in their jobs.
• Employees may not require only threat, external control and coercion to
work, but they can use self-direction and self-control if they are
dedicated and sincere to achieve the organizational objectives.
• If the job is rewarding and satisfying, then it will result in employees’
loyalty and commitment to organization.
• An average employee can learn to admit and recognize the responsibility.
In fact, he can even learn to obtain responsibility.
• The employees have skills and capabilities. Their logical capabilities
should be fully utilized. In other words, the creativity, resourcefulness
and innovative potentiality of the employees can be utilized to solve
organizational problems.
Thus, we can say that Theory X presents a pessimistic view of employees’
nature and behaviour at work, while Theory Y presents an optimistic view of
the employees’ nature and behaviour at work. If correlate it with Maslow’s
theory, we can say that Theory X is based on the assumption that the
employees emphasize on the physiological needs and the safety needs; while
Theory X is based on the assumption that the social needs, esteem needs and
the self-actualization needs dominate the employees.

McGregor views Theory Y to be more valid and reasonable than Theory X.
Thus, he encouraged cordial team relations, responsible and stimulating jobs,
and participation of all in decision-making process.

DESCRIPTIVE BANK
1. What do you understand by leadership in business? What should be the qualities

of a good business leader
2. Explain “Leadership is situational”. Comment on the statement
3. Discuss “A successful leader is not necessarily effective”.
4. What is meant by leadership style? How will you secure effective leadership
behavior? Is there one best style of l leadership in the management of an
organization?
5. Discuss various styles of leadership. Do you think categorization of leadership
styles into water-tight compartments is possible?
6. Explain Abraham Maslow’s motivation theory based on hierarchy of needs.
7. Compare the “Management is essentially a process of motivation”.
8. Explain Herzberg’s Two Factor Theory and differentiate it from Maslow’s Theory
of Need Hierarchy.
9. What is motivation? What does Maslow’s hierarchy of needs tell us about
people’s needs?
10. Explain the assumptions of McGregor’s Theory X and Theory Y. Which one is
applicable in India
OBJECTIVE BANK
1- ______ is a process of influencing people

(A) Motivation (B) Leadership (C) Delegation (D) Controlling
2- The following is (are) the element(s) of control ( )

(A) Authority and knowledge (B) Guidance and direction (C) Constraint and restraint
(D) All of the above
3- Which type of strategies do professional managers help organizations in chalking out? ( )

(A) Corporate (B) Multi-disciplinary (C) Both (A) and (B) (D) None of the above
4- Limitation of control is (are) ( )
(A) External factors (B) Fixing of responsibility (C) Internal factors (D) Both (A) and (B)
5- MBO was invented by ________.

(A) Peter Ducker (B) Koontz & O ‘Donellm (C) Henry Fayol (D) None of the above
6- The relationship(s) for selecting the span of control would be: ( )

(A) One to one (B) Cross relationship (C) Direct group (D) All of the above
7- Management is said to be the combination of three factors, arts, science and the third is ( )
(A) Profession (B) Authority (C) Communication (D) None of the above
8- One of the popular forecasts is ( )

(A) Technological (B) Economic (C) Demand (D) None of the above
9- Events are occurrences designed for ________ interests.

(A) Marketing (B) Customer (C) Both (A) and (B) (D) Company
10- Limitation(s) of business planning is (are) ( )
(A) Time Consuming (B) Expensive device (C) Heavy cost of planning (D) All of the above
Name of the student: H.T NO: BRANCH:
Subject: Fundamentals of Management TEST-1 MARKS:10
SET NO: 1
(PART-A): Answer the Following Objective Questions: Each carries 0.5Mark
1. According to Tom Peters, which of the following does not refer to management?
a) How effectively managers do not respond to customers; requirements.
b) How the people in an organization can participate as partners is progress
c) How innovation can be constantly pursued in all areas of the firm
d) How activities in an organization can be controlled through simple support system
2. Which of the following does management not refer to ?
a) Social process b) Exact Science c) Omnipresent and universal d) Situational in nature
3. The term management does not cannot which of the following ?
a) Inter-disciplinary in nature b) Profession c) ‘Body of people’ involved in decision making d) Omniscient
4. Management is viewed as a very significant tool for one of the following reasons. What is that?
a) Ensures discontinuity in the organization c) Focuses on group efforts
b) Ensures economy and efficiency d) Key to the economic growth
5. Luther Gullick coined a new term ‘POSDCORD’. In this acronym, what does the B stand for?
a) Bullion b) Bearish c) Budgeting d) Bench marking
6. According to Henri fayol, management process covers all except
a) Organizing b)Commanding c) Ordinating d) Controlling
7. The course of action to be followed and how the resources are to be deployed to achieve the given objectives is
called
a) Procedures b) Strategies c) Forecasts d) Programmes
8. If we have relevant and reliable information about a particular event or happening, such context is called :
a) Risk b) Uncertainty c) Certainty d) Probability
9. Structured programming is the base for:
a) Programmed decisions b) Non-programmed decisions c) Situational decisions d) Tactical decisions
10. Which one of the following is a demerit of the line organization
a) Simple and understand c) Facilitates quick decisions
b) Each section is treated as a unit for control purposes d) Instability is likely, due to a lack of continuity
(PART-B ): Answer any one question (5m)
1. What do you understand by leadership in business? What should be the qualities of a good
business leader
or
2. Explain “Leadership is situational”. Comment on the statement

NAME OF THE STUDENT: HTNO: Branch:
SUBJECT: Fundamentals of Management TEST NO: 1 MARKS: 10M
SET NO: 2

b) Social process b) Exact Science c) Omnipresent and universal d) Situational in nature
c) Ensures discontinuity in the organization c) Focuses on group efforts
d) Ensures economy and efficiency d) Key to the economic growth
b) Organizing b)Commanding c) Ordinating d) Controlling
called
b) Procedures b) Strategies c) Forecasts d) Programmes
b) Bullion b) Bearish c) Budgeting d) Bench marking
b) Risk b) Uncertainty c) Certainty d) Probability
b) Programmed decisions b) Non-programmed decisions c) Situational decisions d) Tactical decisions
b) Inter-disciplinary in nature b) Profession c) ‘Body of people’ involved in decision making d) Omniscient
c) Simple and understand c) Facilitates quick decisions
d) Each section is treated as a unit for control purposes d) Instability is likely, due to a lack of continuity
(PART-B ): Answer any one question (5m)

1. Discuss “A successful leader is not necessarily effective”.
Or
2. What is meant by leadership style? How will you secure effective leadership behavior? Is
there one best style of l leadership in the management of an organization?
.

SET NO: 3
called
c) Procedures b) Strategies c) Forecasts d) Programmes
c) Risk b) Uncertainty c) Certainty d) Probability
c) Organizing b)Commanding c) Ordinating d) Controlling
c) Social process b) Exact Science c) Omnipresent and universal d) Situational in nature
e) Ensures discontinuity in the organization c) Focuses on group efforts
f) Ensures economy and efficiency d) Key to the economic growth
c) Bullion b) Bearish c) Budgeting d) Bench marking
c) Inter-disciplinary in nature b) Profession c) ‘Body of people’ involved in decision making d) Omniscient
c) Programmed decisions b) Non-programmed decisions c) Situational decisions d) Tactical decisions

A) Simple and understand b) Facilitates quick decisions
c) Each section is treated as a unit for control purposes d) Instability is likely, due to a lack of continuity
(PART-B): Answer any one question
1. Discuss various styles of leadership. Do you think categorization of leadership styles into water-
tight compartments is possible?
or
2. Explain Abraham Maslow’s motivation theory based on hierarchy of needs.
SET NO: 4
1. If we have relevant and reliable information about a particular event or happening, such
context is called :
a) Risk b) Uncertainty c) Certainty d) Probability
2. The course of action to be followed and how the resources are to be deployed to achieve the
given objectives is called
a) Procedures b) Strategies c) Forecasts d) Programmes
a) Organizing b)Commanding c) Ordinating d) Controlling
4. Management is viewed as a very significant tool for one of the following reasons. What is
that?
a) Ensures discontinuity in the organization b) Focuses on group efforts
b) Ensures economy and efficiency d) Key to the economic growth
a) Social process b) Exact Science c) Omnipresent and universal d) Situational in nature
a) Inter-disciplinary in nature b) Profession c) ‘Body of people’ involved in decision
making d) Omniscient
a) Programmed decisions b) Non-programmed decisions c) Situational decisions d)
Tactical decisions
8. Luther Gullick coined a new term ‘POSDCORD’. In this acronym, what does the B stand
for?
a) Bullion b) Bearish c) Budgeting d) Bench marking

e) Simple and understand c) Facilitates quick decisions
f) Each section is treated as a unit for control purposes d) Instability is likely, due to a lack of
continuity
(PART-B): Answer any one question

1. What is motivation? What does Maslow’s hierarchy of needs tell us about
people’s needs?’
or
2. Explain the assumptions of McGregor’s Theory X and Theory Y. Which one is
applicable in India
SEMINAR TOPICS
1. Leader
2. Motivation
3. Leadership Styles
4. Needs Hierarchy Theory,
5. Two Factor Theory, Theory X and Theory Y.
ASSIGNMENT QUESTIONS
1. What is charismatic leadership?
2. Ex Explain System 4-Management

3. What is Managerial Grid
4. Explain Leadership Continuum
5. What is employee-centered leadership?
6. Explain what is meant by hierarchical nature of the needs?
7. What is meant by morale?
8. Differentiate between the Motivation and Morale
9. What is Motivation?
10. Explain “Motivation is the core of management”
REAL TIME APPLICATIONS
1. A field that concentrates on the application of engineering principles for the effective
planning and efficient operations of managing manufacturing or industrial operations.
2. When setting up a new business, management concept is help to designing your

company's organizational structure.
3. Engineering management is a career that brings together the technological problem-

solving ability of engineering and the organizational, administrative, and planning abilities
of management in order to oversee the operational performance of complex engineering driven
enterprises.
4. To produce graduates who: Contribute to the success of companies through effective

problem solving. Design, develop, implement, and improve integrated systems that include
people, materials, information, equipment, and environments.
NPTEL REFERENCES
Course Instructer:
Aradhna Malik (PhD)
Assistant Professor
VGSOM, IIT Kharagpur
https://onlinecourses.nptel.ac.in/noc18_mg18/course
• Introduction to HRM 7 LECTURES

Staffing / Recruitment 7 LECTURES
Performance Management and Appraisal Process 7 LECTURES
• Training and development 7 LECTURES
Managing Careers 7 LECTURES
• Implications 7 LECTURES
Compensation Management 7 LECTURES
• Pay for Performance and Incentives 7 LECTURES
Benefits and Services 7 LECTURES
Employee Relations Strategic Human Resource Management and HR Scorecard 7 LECTURES
Bloom’s Taxonomy
1. Analysis
Q. Explain the Concept of Motivation
2. Creating
Q. Compare Power and Authority?
3. Evaluate
Q. What Are The Basis For Motivational Theories?

OUTCOME BASED EDUCATION
The students understand the
1. Significance of Management in their Profession.
2. The various Management Functions like Planning, Organizing, Staffing,
3. Leading, Motivation and Control aspects are learnt in this course.
4. The students can explore the Management Practices in their domain area.
_______________________________________________________
Active Learning Techniques
With Peer Instruction, you pause during class and ask students a conceptual
question. Give students a few minutes to think about the question, and then have
them provide answers, possibly using clickers. Then, have students spend a few
minutes talking about their answers, usually in pairs, and try to convince each other
that their answer is correct. Then have students answer again
Thinking Abilities
UNIT - III
Let The Students “Teach”
Allowing students who do a research project to share the information they learned with the class
has two advantages. First, the student-teachers have the opportunity to improve their oral
communication skills. Second, the other students in class might learn more when they are being
taught by a classmate. “When students listen to each other, they often benefit from hearing
concepts being explained from different points and in ways that might be closer to the students’
way of thinking,” says the NDT report “Developing Communication Skills.”
Let The Students Pretend
Having students pretend to live in Colonial America before or during the Revolutionary War can
help them understand concepts of freedom and democracy much better than listening to lectures
about the subject. A play might help the students think more independently about these concepts.
Asking students to make or write a speech as if they were revolutionaries might also help.

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Department of Management

III B. Tech I semester (JNTUH-R17)

COURSE I/C CONTENT Coordinator HOD DIRECTOR

6 LECTURE NOTES 08-30

10 UNIT TEST PAPER 33-36

13 REAL TIME APPLICATIONS 39

COURSE I/C CONTENT Coordinator HOD DIRECTOR

1. An atmosphere that facilitates personal commitment to the educational success of students

COURSE I/C CONTENT Coordinator HOD DIRECTOR

To empower the students to be technologically adept, innovative, self-motivated and

• To offer high-quality education in the computing fields by providing an environment

PROGRAMME EDUCATIONAL OBJECTIVES

Sl. No. PEOs Name Program Education Objective Statements

2 PEO – 2 sustainable competitive edge in higher studies or Research and Development

Entrepreneurial: promote design, research, and implementation of products and

3 PEO – 3 services through strong communication, leadership and ethical skills, to be an

COURSE I/C CONTENT Coordinator HOD DIRECTOR

PO Name Graduate Attributes PO Statements

Engineering Apply the knowledge of mathematics, science, engineering fundamentals, and an

COURSE I/C CONTENT Coordinator HOD DIRECTOR

Program Specific Outcomes

• PSO1: Applications of Computing: Ability to use knowledge in various domains to provide

COURSE I/C CONTENT Coordinator HOD DIRECTOR

• Managers manage business organizations in the dynamic global environment

COURSE I/C CONTENT Coordinator HOD DIRECTOR

COURSE I/C CONTENT Coordinator HOD DIRECTOR

4.1.2. Importance of Leadership

Leadership is an important function of management which helps to maximize

4.2. Authority and Power

The authority exercised is a kind of legitimate power and people follow

COURSE I/C CONTENT Coordinator HOD DIRECTOR

4.3. Leadership Styles

COURSE I/C CONTENT Coordinator HOD DIRECTOR

4.4. Behavioural Leadership:

COURSE I/C CONTENT Coordinator HOD DIRECTOR

4.5. Situational Leadership

COURSE I/C CONTENT Coordinator HOD DIRECTOR

COURSE I/C CONTENT Coordinator HOD DIRECTOR

COURSE I/C CONTENT Coordinator HOD DIRECTOR

COURSE I/C CONTENT Coordinator HOD DIRECTOR

COURSE I/C CONTENT Coordinator HOD DIRECTOR

4.8. Leadership in the Face of Adversity

COURSE I/C CONTENT Coordinator HOD DIRECTOR

COURSE I/C CONTENT Coordinator HOD DIRECTOR

4.9. Dealing with Customer Complaints

COURSE I/C CONTENT Coordinator HOD DIRECTOR

As a human resources professional, you may wonder how to respond to

COURSE I/C CONTENT Coordinator HOD DIRECTOR

COURSE I/C CONTENT Coordinator HOD DIRECTOR

COURSE I/C CONTENT Coordinator HOD DIRECTOR

COURSE I/C CONTENT Coordinator HOD DIRECTOR

Quite the reverse, others will respond better to extrinsic motivation

COURSE I/C CONTENT Coordinator HOD DIRECTOR

COURSE I/C CONTENT Coordinator HOD DIRECTOR

4.12. Motivation Theories

4.13. Abraham Maslow’s Need Hierarchy Theory

COURSE I/C CONTENT Coordinator HOD DIRECTOR