Unit-4 Fom
Unit-4 Fom
Unit-4 Fom
LECTURE NOTES
ON
FUNDAMENTALS OF MANAGEMENT
7 TUTORIAL BANK
8 DESCRIPTIVE BANK 31
9 OBJECTIVE BANK 32
11 SEMINAR TOPICS 37
12 ASSIGNMENT BANK 38
14 NPTEL 40
15 BLOOMS TAXONOMY 41
OUT COME BASED
16 EDUCATION -ALE 42
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:
DEPARTMENT VISION:
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.
• PSO2: Programming Skills: Identify required data structures, design suitable algorithms, develop
and maintain software for real world proble
• 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
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.
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
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
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
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.
4.11. 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.
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
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.
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.
(A) External factors (B) Fixing of responsibility (C) Internal factors (D) Both (A) and (B)
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
(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
1. What do you understand by leadership in business? What should be the qualities of a good
business leader
or
SET NO: 2
(PART-A): Answer the Following Objective Questions: Each carries 0.5Mark
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.
NAME OF THE STUDENT: HTNO: Branch:
SET NO: 4
(PART-A): Answer the Following Objective Questions: Each carries 0.5Mark
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
3. According to Henri fayol, management process covers all except
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
5. Which of the following does management not refer to ?
a) Social process b) Exact Science c) Omnipresent and universal d) Situational in nature
6. 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
7. Structured programming is the base for:
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
9. 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
1. Leader
2. Motivation
3. Leadership Styles
4. Needs Hierarchy Theory,
5. Two Factor Theory, Theory X and Theory Y.
ASSIGNMENT QUESTIONS
1. A field that concentrates on the application of engineering principles for the effective
planning and efficient operations of managing manufacturing or industrial operations.
Course Instructer:
Aradhna Malik (PhD)
Assistant Professor
VGSOM, IIT Kharagpur
https://onlinecourses.nptel.ac.in/noc18_mg18/course
2. Creating
3. Evaluate
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
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’
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.