m1 Mls 324 Lab Management

MLS 324
Laboratory Management
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MLS 324
Second Sem A.Y. 2020-2021
COURSE LEARNING OUTCOMES

At the end of the term, the Medical Laboratory Scientist pupils are expected to:
1. Integrate knowledge of physical, social, natural, chemical, humanities, and health

sciences in the practice of Medical Laboratory Science.
2. Communicate effectively orally and in writing using English and Filipino with cultural
sensitivity when interacting with peers, students, patients and other health care
professionals.
3. Demonstrate technical competence (safe, appropriate, and accurate testing) in
the performance of laboratory tests to aid in the diagnosis, treatment, and
management of diseases. Engage in medical laboratory science related researches
and projects that would help the community.
4. Practice analytical and critical thinking skills in making sound judgment in dealing
with implausible laboratory results and take appropriate actions.
5. Manifest dedication and commitment as well as management skills in the laboratory
operation to deliver quality laboratory services.
6. Engage in lifelong learning for professional advancement to be globally and
technologically competent.
7. Work effectively and independently in multi-disciplinary and multi-cultural teams
while preserving and promoting Filipino historical cultural heritage.
8. Demonstrate professional, social and ethical responsibility for the protection and
preservation of the environment through the practice of proper biosafety and waste
management.
9. Practice the principles of social accountability (relevance, equity, quality, and cost
effectiveness) in the delivery of health care to patients, families, and communities.
10. Apply the latest developments in Medical Laboratory Science ethically to all
patients in general.
Laboratory Management
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electronic, mechanical, photocopying, recording, or otherwise of any part of this document, without the prior written permission of SLU, is strictly prohibited.
COURSE INTRODUCTION:
Dear future Medical Technologists,
Laboratory Management plays an important role in healthcare system. Achieving,

maintaining, and improving its day-to-day operational language requires significant
understanding to its purpose and its services provided. It is very important that
laboratory staff working within the laboratory should learn its language of healthcare in
general.
To successfully achieve its goal, one should be expected to understand and perform
numerous mandates from various regulatory agencies, managing human resources,
patient care testing, addressing quality performance issues, and overall accountability
to the facility administration.
We must not forget the purpose of the laboratory, these include improving accuracy,
timeliness, and reliability of all all its operations that sometimes these determinants
serves as a major challenge in its operations.
This module is intended to provide an avenue for students to be introduced to the basic
functions of management, and its essential quality-based services. Each topic is
discussed in a separate units.
By the end of the course, the student should be able to describe the basic concepts of
management as applied in administrative aspects of laboratory operations.
Specifically, it deals with planning, organizing, leading/directing, controlling/evaluating
the human, physical and financial resources of the clinical laboratory. Emphasis is also
given on quality systems and safety.
***
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MODULE 1 - PRINCIPLES OF MANAGEMENT AND
. MANAGEMENT FUNCTIONS
This module shall focus on the concepts of leadership, management, and

administration and review in general terms the variety of management concepts and
philosophy in such a way that the reader will feel familiar enough to apply the
concepts or know where to turn for more information.
Furthermore, it shall also emphasize on the overview of basic management principles

and practices in a laboratory or clinical setting.
MODULE SELF MONITORING FORM

To help you keep track of your tasks for this module, you are provided in the below with
a self-monitoring form. Take the time to tick on the “Yes” box for each activity that you
finish and be reminded about pending activities that you are yet to do. Remember that
your success in achieving the module objectives depends entirely on how
conscientious you are of your own progress.
Completed
Schedule Activities Remarks
Yes No
Unit 1 : Management
- Engage
Week 1
- Explore
- Explain
Unit 2 : Management Planning
- Explore
Week 2 - Explain
- Elaborate
- Evaluate 📄⇥
Unit 3 : Organizing and Staffing the Laboratory
- Engage
- Explore
Week 3
- Explain
- Elaborate
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- Evaluate 📄⇥
Unit 4 : Directing and Supervising the Laboratory
- Explore
Week 4 - Explain
- Elaborate
- Evaluate 📄⇥
Unit 5 : Controlling
- Engage
Week 5 - Explore
- Explain
- Elaborate 📑⇤
📑 ⇤ : For Submission
📄 ⇥ : Quiz
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MODULE CONTENTS
Contents
Course Introduction 03
Module Self Monitoring Form 04
Module Contents 06
Module and Unit Objectives 07
UNIT 1 : Management
Engage: Introduction to Management 08
Explore: Concepts of Management 08
Explain: Laboratory Manager 12
UNIT 2 : Management Planning

Explore: Concept of Planning 21
Explain: Planning Process 23
Elaborate: Management by Objective 26
Evaluate: Module 1—Unit 1 and Unit 2 Quiz 30
UNIT 3 : Organizing and Staffing the Laboratory

Engage: Overview of Organizational System 32
Explore: Organizational System 32
Explain: Concept of Organizing 33
Elaborate: Organizational Process 39
Evaluate: Module 1—Unit 3 Quiz 41
UNIT 4 : Directing and Supervising the Laboratory

Explore: Directing Process 43
Explain: Principles of Leadership 46
Elaborate: Situational Leadership Models 58
Evaluate: Module 1—Unit 4 Quiz 64
UNIT 5 : Controlling
Engage: Overview of Controlling Process 66
Explore: Types and Steps of Controlling 66
Explain: Requirements of Adequate Controls 68
Elaborate: Methods of Controlling & Measurement of Performance 70
References 73
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MODULE OBJECTIVES
After you are done reading and doing the tasks in this module, you are expected to be
able to:
1. To familiarize the reader with the concepts of leadership, management, and
administration
2. To learn in general terms the process of decision making and how a decision-
making style is a reflection of one’s leadership style
3. To give the readers an overview of basic management principles and practices in a
laboratory or clinical setting
4. To give the reader practical advice on the strategic planning process.
This module is divided into five (5) lecture units including:

Lecture Unit 1 — Management
Unit Objectives:
1. Define management and the conditions necessary for its success.
2. Identify the roles and skills associated with being a manager.
3. Compare and contrast the four schools of management philosophies
within the context of their historical development and contribution to
current knowledge.
4. Describe the management process and the functions of management.
Lecture Unit 2 — Management Planning

Unit Objectives:
1. Discuss the types and steps of planning.
2. Apply the concepts of planning in a clinical laboratory setting.
3. Apply management principles to the medical laboratory through the
introduction of an MBO program.
Lecture Unit 3 — Organizing and Staffing the Laboratory

Unit Objectives:
1. Describe the characteristics of an organizational system that can
sustain organizational peace.
2. Differentiate the two major types of organizational chart.
3. Explain the process of work analysis and job design
4. Learn the Standard protocol in pooling of qualified staff and laboratory
personnel.
5. Create a strategy in proper scheduling of work load to appropriate
personnel that promotes justice.
Lecture Unit 4 — Directing and Supervising the Laboratory

Unit Objectives:
1. Discuss the importance of directing and supervising.
2. Explain the major leadership systems and principles of leadership.
Lecture Unit 5 — Controlling

Unit Objectives:
1. Discuss the importance of controlling.
2. Explain the types and steps in controlling.
3. Describe controlling within the context of the management functions.
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UNIT 1: MANAGEMENT
ENGAGE INTRODUCTION TO MANAGEMENT
LECTURE ACTIVITY 1.1 Principles of Management
When it comes to the management of an organization, there is no right or wrong

way to get the job done. So long as they stay within the boundaries of ethics, the law,
and moral behavior, managers can and must choose their own path to success. Many
studies have been completed and articles written describing what managerial
behavior works best and what does not. For the most part the question is situational and
focuses on managers and what they must do at any moment to help their organization
achieve positive results and move forward. We study the past to learn from notable
successes and failures. We live in the present, moving forward ever faster it seems,
where the decisions we make must come quickly and the issues we face are more
complex and pressing. The best managers remain thoughtful about their avocation,
always seeking new answers to the questions they face.
A laboratory manager has unique skills and a high level of daily responsibility
spanning all areas of the organization. Because the technical aspects of running a
laboratory are tightly regulated, when technical problems arise, there is very often a
written set of guidelines that dictate a solution. However, when it comes to managing
the human side of the laboratory, there are daily challenges for which there are no
rulebook and no obvious solutions. But there is a set of time-tested management tools
for use by laboratory managers to address these daily challenges. A laboratory
manager must become familiar with these tools and use them on a daily basis to gain
confidence and experience in managing the human side of the laboratory.
EXPLORE CONCEPTS OF MANAGEMENT

LECTURE ACTIVITY 1.2
Management is required in all kinds of organizations whether they are

manufacturing computers or handlooms, trading in consumer goods or providing
saloon services and even in non-business organizations. No matter what the
organization is or what its goals might be, they all have something in common –
management and managers. Successful organizations achieve their goals by following
a deliberate process called ‘management. Management consists of a series of
interrelated functions that are performed by all managers. In simple words
Management is the art of getting things done through people. Let’s understand the
concept of management.
Some of the common definition of management given by famous writers and thinkers
are:
• According to Harold Koontz and Heinz Weihrich, Management is the process of
designing and maintaining an environment in which individuals, working
together in groups, efficiently accomplish selected aims.
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• According to Robert L. Trewelly and M. Gene Newport, Management is defined
as the process of planning, organising, actuating and controlling an
organization’s operations in order to achieve coordination of the human and
material resources essential in the effective and efficient attainment of
objectives.
• According to Kreitner, “Management is the process of working with and through

others to effectively achieve organizational objectives by efficiently using
limited resources in the changing environment.
• According to George R Terry, Management consists of planning, organizing,

actuating and controlling, performed to determine and accomplish the
objectives by the use of people and resources.
Throughout the history of the study of organizations and their operation and
functions, there have been many attempts to codify management into a single
sentence or phrase. Although these efforts have provided significant insight into the
process, they have failed to clearly define just what is included in the term
management. Working with and through people to accomplish a common mission is
usually the core of the descriptions that have been proposed. Generally, five conditions
must be present for management to succeed:
1. A mission, or goal, that the organization or subunit expects to accomplish

2. Leaders with the authority to direct the team toward the goal
3. Necessary resources (people, equipment, supplies, and money)
4. Responsibility for achieving the goals assigned
5. Accountability for using the resources established
With these five ingredients present, management can be defined as the process
of coordinating and implementing these five functions.
Management has been described as a social process involving responsibility for

economical and effective planning and regulation of operation of an enterprise in the
fulfillment of given purposes. It is a dynamic process consisting of various elements and
activities. These activities are different from operative functions like marketing, finance,
purchase etc. Rather these activities are common to each and every manger
irrespective of his level or status.
The study of management is typically broken out into four primary areas:
planning, organizing, directing, and controlling (Table 1.2.1).
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Table 1.2.1 Four fundamental functions of management
Four fundamental functions of management
The basic function of management.
It deals with chalking out a future course of action & deciding
Planning
in advance the most appropriate course of actions for
achievement of pre-determined goals.
The process of bringing together physical, financial and human
Organizing resources and developing productive relationship amongst
them for achievement of organizational goals.
It is that part of managerial function which actuates the
Directing
organizational methods to work efficiently for achievement of
(Leading)
organizational purposes.
It implies measurement of accomplishment against the
Controlling standards and correction of deviation if any to ensure
achievement of organizational goals.
LECTURE ACTIVITY 1.3 Major Theories

Scientific Management
Scientific management represents the first orderly efforts to examine the

functioning of complex organizations. The idea was to apply the scientific method of
cause-and-effect analysis, used in the study of natural phenomena, to the examination
of business enterprises.
Henri Fayol (1841-1925) first introduced the concept that management should be
an orderly process of tasks and duties, of which planning was the most important.
Fayol’s thesis provides the base for the theory called the functions of management, or
management process.
Frederick Taylor (1856-1915), often called the father of scientific management,

broke down each task into segments that could be analyzed for ways to improve
efficiency. Many of the principles and concepts proposed by modern theorists can be
traced to Taylor.
Frank Gilbreth (1868-1924) and Lilian Gilbreth (1878-1972) perfected Taylor’s

motion study method and developed methods analysis. Performance standards, such
as those that were used by the College of American Pathologists (CAP) when it
sponsored its work-load units (WLU) program, are dependent on the procedures
developed by the Gilbreths.
Other important scientific management innovators include Mary Parker Follett

(1868-1933), who pointed out that management is essentially coordination, and Lyndall
Urwick (1891-1983), who introduced the role of the management consultant and
attempted to classify and codify the work done on management theories. Scientific
management has since spawned many subdisciplines and has now been absorbed
and succeeded by system theory.
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Bureaucracy Management
Many students of management have used the hierarchical chain of command

to examine the working of organizations. This field of investigation is referred to as
bureaucracy management; it examines the organizational aspects and work flow of
companies to explain how institutions function and how to improve the process.
Particular attention is given to the bureaucratic characteristics of organizations as they
relate to rules, regulations, impersonality, and the division of labor (Table 2).
Table 1.3.1 Six rules of a bureaucracy

Characteristic of the
Description
Bureaucracy
Hierarchical Each level controls the levels below and is controlled by the
Management level above. Authority and responsibilities are clearly defined
Structure for each position.
Tasks are clearly defined and employees become skilled by
Division of Labor specializing in doing one thing. There is clear definition of
authority and responsibility.
Employee selection and promotion are based on experience,
Formal Selection
competence, and technical qualification demonstrated by
Process
examinations, education, or training. There is no nepotism.
Management is separate from ownership, and managers are
Career Orientation career employees. Protection from arbitrary dismissal is
guaranteed.
Rules and regulations are documented to ensure reliable and
Formal Rules and
predictable behavior. Managers must depend on formal
Regulations
organizational rules in employee relations.
Rules are applied uniformly to everyone. There is no
Impersonality
preferential treatment or favoritism.
Bureaucracy would result in the highest level of efficiency, rationality, and worker
satisfaction. In fact, bureaucracy was so logical that it would transform all of society.
Unfortunately, each of the bureaucratic characteristics could also have a negative
result. For example, division of labor leads to specialized and highly skilled workers, but it
also can lead to tedium and boredom. Formal rules and regulations lead to uniformity
and predictability, but they also can lead to excessive procedures and “red tape.” In
spite of its potential problems, some form of bureaucracy is the dominant form of most
large organizations today. The “pyramid” organizational structure, with responsibility split
into divisions, departments, and teams, is based on principles of bureaucracy. It is used
by nearly all large corporations.
The search for the perfect organizational structure is an ongoing process, and
much discussion has been generated in the literature. From Adam Smith (1723-1790),
who introduced the concept of specialization, to contemporary gurus such Peter
Drucker (b. 1909) and Tom Peters (b. 1942), an understanding has developed of how
companies should be organized to more effectively pursue their operational goals.
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Organizational Behavior Management
Looking at people and how they function in groups is another approach to

examining how organizations perform. This approach uses concepts from psychology
and sociology as well as management theories. The origins of these efforts lie in the
studies conducted by Elton Mayo (1880-1949) between 1924 and 1932 at the
Hawthorne Western Electric plant in Chicago. Mayo’s lead was followed by Douglas
McGregor (1906-1964), who developed assumptions about the basic nature of man;
Rensis Likert (1903-1981), whose writings encouraged managers to be supportive in their
relationships; and Bernard, who recommended that executives encourage a climat of
cooperation.
Systems Analysis Management
“Systems” is a term that permeates our language. We speak about school

systems, banking systems, government systems, ecological systems, the circulatory
system, computer systems, and blood bank systems. Given its universality, it is not
surprising that nearly all management theories include this concept in some form.
Analyzing businesses as a system was a natural evolution of scientific management. The
systems approach has been claimed by researchers who rely heavily on mathematical
models, scientific methodology, and computer simulations to investigate management
problems and recommend solutions. These specialties include operations research,
management science, and systems (computer) analysis.
Systems analysis is the process of examining a business situation for the purpose
of developing a system solution to a problem or devising improvements to such a
situation. Before the development of any system can begin, a project proposal is
prepared by the users of the potential system and/or by systems analysts and submitted
to an appropriate managerial structure within the organization.
EXPLAIN LABORATORY MANAGER

LECTURE ACTIVITY 1.4 Managers
Laboratory managers have highly specialized skills, and they often serve multiple
overlapping roles within the healthcare system. First and foremost, a laboratory
manager is the chief laboratorian, providing specialized technical expertise within the
medical laboratory. Managers are “extenders” of the physician and clinical laboratory
scientist directors. As such, they must remain abreast of and implement federal and
industry regulations, adhere to credentialing and compliance requirements, understand
and evaluate new technologies, and remain continuously informed about
advancements in clinical testing capabilities.
In addition to these very important technical responsibilities, managers must also

oversee the business aspects of the laboratory. Personnel supervision, staff recruitment
and retention, budgeting, purchasing, and compliance are all essential tasks of the
laboratory manager. While bench-level expertise is essential, knowledge is required far
beyond and above the skills needed by a technologist. The laboratory manager
occupies a truly specialized niche within the organization. Understanding of basic
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management functions will contribute to the success of any complex organization, and
the application of some fundamental, time-honored practices will ensure that the
laboratory’s operations are carried out with maximum efficiency. A manager will be
more effective, and ultimately more successful, with a systematic approach. As Will
Rogers suggested, inaction and complacency - “just sitting there”- will most certainly
result in getting run over sooner or later.
A manager’s primary responsibility is directing the immediate operations of the

laboratory. The day-to-day, and often minute-to-minute, activities of the laboratory will
occupy the greatest amount of a manager’s time and resources. Understanding the
environment in which the laboratory functions, and anticipating potential problems that
might arise within it, allows a manager to avoid costly mistakes in staffing, scheduling,
purchasing, and budgeting. The best managers learn how to balance their time and
their many overlapping responsibilities with a well - organized approach. They are
always looking to the future and thinking about how major trends might affect the
operation of the laboratory. They view changes in the operational environment as
opportunities to make needed improvements in staffing, technology, and processes.
This progressive, forward-looking approach requires insight, commitment, and the ability
to teach the staff how to identify and solve problems. A good manager is a “high-
performance” manager (Table 1.4.1).
Table 1.4.1 High-performance manager

High-performance manager
A strategist A problem solver A teacher
One who looks to the One who clearly perceives One who guides others
future, makes educated the differences between and helps them to identify
guesses about the major the anticipated future and and solve problems, so
forces and trends he or she the unfolding present and that they can perform their
can see, and interprets who decides what must be tasks effectively and can
them in terms of done with those factors develop themselves as
opportunities for growth under his or her control to individuals as well as
and progress. influence the environment workers.
or to adapt to it most
effectively.
Great managers are able to lead teams, help them grow, and maintain full
control over their business and its performance at the same time. These are the people
who manage to constantly adapt to new situations, encourage others to reach their full
potential, and deliver their best work, too. Table 1.4.2 shows the must-have qualities of a
manager that can supply a roadmap to professional excellence.
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Table 1.4.2. Qualities of a manager
Qualities Descriptions
• Work with anyone at any level within or outside the
Managers work with and organizations who can help achieve the organizational
through other people goals
• Work to achieve personal goals
• In charge of seeing that specific tasks are done
successfully
• Evaluated on how well they arrange for these tasks to
be accomplished
• Responsible for the actions of their subordinates
Managers are responsible •
Expected to accomplish more than other members of
and accountable
the organization and they are held responsible for
greater achievement and for the allocation of the
organization’s resource
• The success or failure of subordinates is a direct
reflection of managers’ success or failure
• Every manager faces a number of organizational
goals, problems and needs - all of which compete for
Managers balance the manager’s time and resources (both human and
completing goals and set material)
priorities • Because such resources are always limited, each
manager must strike balance between various goals
and needs
Analytical Thinker
• A manager must be able to break a problem down
into its components, analyze those components then
come up with a feasible solution
Conceptual Thinker
Managers must think • More important
analytically and • View the entire task in the abstract and relate it to
conceptually other tasks
• Thinking about a particular task in relation to its larger
implications is no simple matter but it is essential if the
manager is to work toward the goals of the
organization as a whole as well as toward the goals of
an individual unit
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• Organizations are made up of people and people
within the same organization will often disagree about
goals and the most effective way of attaining them
• Disputes within a unit or organization can lower morale
and productivity, and they may become so
unpleasant and disruptive that competent employees
decide to leave the organization
Mangers and mediators • Occurrences hinder work toward the goals of the unit
or organization so managers must take on their role of
mediator and resolve disputes as they occur
• Setting quarrels requires skill and tact; managers who
are careless in their handling of disputes may be
dismayed to find that they have only made matters
worse
• Build relationships and use persuasion and compromise
to promote organizational goals, just as politicians do
to move their programs forward
Managers and politicians • All effective managers “play politics” by developing
networks of mutual obligations with other managers in
the organization
• Build or join alliances and coalitions
• Serve as official representatives of their work units at
organizational meetings
• Represent the entire organization as well as a particular
Managers are diplomats
unit in dealing with clients, customers, contractors,
government officials and personnel of other
organizations
• Personify, both for organizational members and for
outside observers, an organizations’ successes and
failures
Mangers are symbols • Responsible for things over which they have little or no
control, and it may be useful for the organization to
hold them so responsible
• No organization runs smoothly all the time
• There is almost no limit to the number and type of
problems that may occur (financial difficulties,
problems with employees, differences of opinion
Managers make difficult
concerning organization policy)
decisions • Managers are the people who are expected to come
up with solutions to difficult problems and to follow
through on their decisions even when doing so may be
unpopular
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LECTURE ACTIVITY 1.5 Roles of a Manager
Professional managers are called on to wear many hats in performing their
duties. Managers must preside over events that have a direct impact on the well-being
of the organization and its individual members. As leaders of organizations, managers
are required to play three basic roles: people, servant, and representatives. This
emphasis on human factors forms the core for all management theories.
Managers have the power to make or break their organizations. While great
leaders encourage their employees to reach their full potential and help their
organizations surpass their goals, terrible dictators discourage workers to the point they
want to jump ship.
The Manager as a Person
The manager is first and foremost a person – responsible for, and to, other people
with similar fears, dreams, hopes, life problems, aspirations, potential, and expectations.
Like the people they supervise, managers bring with them their own individual talents,
training, and weaknesses.
Some people may appear to be a “natural leaders” with inborn people skills.
However, without an understanding of the management process, they soon fail when
put in situations demanding extensive planning or technical knowledge.
The Manager as a Servant
The second role of a manager is that of servant. This part of the definition may
contradict common notions about managers, but the primary role of the manager is
one of instrumentality. Seeing that the person who actually performs the tasks and work
of the institution has the resources necessary to effectively and efficiently accomplish
his or her duties is the responsibility of everyone from the CEO to the immediate
supervision. The product must be manufactured, sold, and delivered, and the patient’s
needs, diagnosis, and treatment must be attended to promptly. The manager is
responsible for making certain that the person performing these tasks has the training
and resources necessary to accomplish these duties.
Managers must become supporters of theirs staffs if the organization is to

function properly.
The Manager as a Representative
The manager is a paid representative of the owners or board of directors in both

for-profit and not-for-profit organizations. Managers also represent those they supervise,
as they are responsible for supplying their needs and presenting their concerns to the
owners. This crucial coordination and communication link is magnified at each level of
the organization as information flows back and forth between management and staff.
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Some experts have argued that this representation function is the most important role of
a manager in the successful operation of any business.
Mintzberg’s Management Roles
Henry Mintzberg (1991), a well-known management thinker, recorded what

some managers did during their working days and came to the conclusion that there
was a gap between theory and practice. He found that the manager’s work was
characterized by pace, interruptions, brevity and a fragmentation of activities. The
managers liked talking to people and they spent much of their time in contact with
others, in meetings and in networks.
Mintzberg identified ten roles that describe the variety of the manager’s work. He
grouped those ten roles into three clusters. These are shown in Table 1.5.1.
Table 1.5.1 Mintzberg’s managerial roles

The manager:
• Acts as a figurehead, the person who represents the
Interpersonal organization
• Leads the staff
• Liaises between the organization and the people outside it
The manager:
• Monitors the information flows within and outside the
Informational organization
• Disseminates relevant information to those who need it
• Acts as spokesperson for the organization
The manager:
• Monitors the information flows within and outside the
Decision Maker organization
• Disseminates relevant information to those who need it
• Acts as a spokesperson for the organization
LECTURE ACTIVITY 1.6 Management Skills and Management Levels

For managers to succeed in their roles, they need specific skills in each area. Like
management roles, the skills needed center around people and things and their
coordination. The mission of an organization is to produce either material goods and
services. Managers must have a basic understanding of the organization’s product and
be proficient in organizing the physical and human resources of the corporation to
deliver a high-quality product; these are management skills.
Organizational skills include the ability to conceptualize and apply the management
process, systematize workflow, make decisions, and communicate with coworkers.
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People skills involve in an understanding of the basic theories of human needs and work
motivation is essential to accomplishing the goals of the individual and the
organization.
Financial management skills involve the effective use of and accounting for the
monetary assets of the company.
Technical skills involve the synthesis of the first three skills and the management of
physical resources into
The term “Levels of Management’ refers to a line of demarcation between

various managerial positions in an organization. The number of levels in management
increases when the size of the business and work force increases and vice versa. The
level of management determines a chain of command, the amount of authority &
status enjoyed by any managerial position. The levels of management can be classified
in three broad categories:
• Top level / Administrative level
• Middle level / Executory
• Low level / Supervisory / Operative / First-line managers
Top Level of Management
It consists of board of directors, chief executive or managing director. The top

management is the ultimate source of authority and it manages goals and policies for
an enterprise. It devotes more time on planning and coordinating functions. The role of
the top management can be summarized as follows:
i. Top management lays down the objectives and broad policies of the enterprise.
ii. It issues necessary instructions for preparation of department budgets, procedures,
schedules etc. It prepares strategic plans & policies for the enterprise.
iii. It appoints the executive for middle level
iv. It controls & coordinates the activities of all the departments.
v. It is also responsible for maintaining a contact with the outside world.
vi. It provides guidance and direction.
vii. The top management is also responsible towards the shareholders for the
performance of the enterprise.
Middle Level of Management
The branch managers and departmental managers constitute middle level. They
are responsible to the top management for the functioning of their department. They
devote more time to organizational and directional functions. In small organization,
there is only one layer of middle level of management but in big enterprises, there may
be senior and junior middle level management. Their role can be emphasized as:
i. They execute the plans of the organization in accordance with the policies and
directives of the top management.
ii. They make plans for the sub-units of the organization.
iii. They participate in employment & training of lower-level management.
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iv. They interpret and explain policies from top level management to lower level.
v. They are responsible for coordinating the activities within the division or department.
vi. It also sends important reports and other important data to top level management.
vii. They evaluate performance of junior managers.
viii. They are also responsible for inspiring lower-level managers towards better
performance.
Lower Level of Management
Lower level is also known as supervisory / operative level of management. It

consists of supervisors, foreman, section officers, superintendent etc. According to R.C.
Davis, “Supervisory management refers to those executives whose work has to be
largely with personal oversight and direction of operative employees”. In other words,
they are concerned with direction and controlling function of management. Their
activities include:
i. Assigning of jobs and tasks to various workers.

ii. They guide and instruct workers for day-to-day activities.
iii. They are responsible for the quality as well as quantity of production.
iv. They are also entrusted with the responsibility of maintaining good relation in the
organization.
v. They communicate workers problems, suggestions, and recommendatory appeals
etc. to the higher level and higher-level goals and objectives to the workers.
vi. They help to solve the grievances of the workers.
vii. They supervise & guide the sub-ordinates.
viii. They are responsible for providing training to the workers.
ix. They arrange necessary materials, machines, tools etc. for getting the things done.
x. They prepare periodical reports about the performance of the workers.
xi. They ensure discipline in the enterprise.
xii. They motivate workers.
xiii. They are the image builders of the enterprise because they are in direct contact
with the workers.
++ End of Unit 1 ++
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UNIT 2: MANAGEMENT PLANNING
Management pioneer Henri Fayol first proposed that the management process
was a continuum of functions that the manager must perform to ensure the smooth
operations of an organization. Fayol’s initial analysis has been elaborated upon by
many authors, including Peter Drucker, a recognized modern authority on
management, who stated, “There are five basic operations in the work of the manager.
Together they result in the integration of resources into a viable growing organism”.
Drucker’s five basic management operations are setting objectives; organizing;
motivating and communicating; establishing standards or measurements of
performance; and developing people, including the managers themselves.
EXPLORE CONCEPT OF PLANNING

LECTURE ACTIVITY 2.1 Hierarchy of Plans
Planning is the first and foremost function of management which involves

deciding the vision, mission, goals, targets, et. It’s the primary function of management.
All managers need to be effective planners. Whether they work organizations that
involve for sale of product or service it may private or public sector or in a profit-
oriented or social institution. Each of these types of the organization needs planning.
Planning focuses on the future of action. It specifies the objectives to be

achieved in the future and selects the best course of action to be taken to achieve
defined objectives. It also involves many activities like analyzing and deciding about
technical personnel, financial and other elements essential to implement the
predetermined course of action.
Planning is the thinking and analyzing portion of the management process; the
other three phases (organizing, directing, and controlling) focus on implementation of
the plan developed in this initial stage. Another saying illustrates the importance of
planning: “The manager must plan to succeed or plan on failing”.
The management planning process can be divided into seven steps:
1. Determine the goals the organization wishes to accomplish.

2. Collect information and evaluate the current situation, compared with where the
enterprise wishes to be.
3. Establish a time frame or period in which to achieve the goals.
4. Set objectives that will move the company toward the desired future.
5. Forecast needs and the use of resources.
6. Determine the steps necessary to implement the plan.
7. Provide for a feedback mechanism to continually review the success of the plan
and to implement necessary revisions.
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Planning is a pervasive function; therefore, it forms a hierarchy (Figure 1). The
managers at different levels form different types of plans. Top-level management
prepares higher-level plans whereas middle and first-line managers prepare lower-level
plans. Therefore, lower-level plans are consistent with higher-level plans.
1. Mission Figure 2.1.1

The mission is the reason for the
existence of an organization. It clears what an
organization wants to provide to society. It
tells who we are and what we do as well as
what we would like to become. The mission is
developed by top-level management, which
defines the fundamental unique purpose that
sets an organization apart from other
organizations of a similar type. It also involves
the company’s philosophy about how it does
business and treats its employees.
2. Goals and objectives

Goals are planned results to be achieved. These are accomplished by
destinations that an organization plans to reach. Goals specify what is to be
accomplished and by whom and should be shown in quantitative terms. They should
be consistent with the mission of an organization.
3. Strategies
It is one of the important parts of the hierarchy of planning in management. The
strategy is a comprehensive master plan stating how an organization will achieve its
mission and goals. It determines the basic long-term objectives of an organization’s
adaptation of the course of action and allocation of resources necessary to achieve
advantages and minimize the desired goals. It maximizes competitive disadvantages.
4. Policies
The policy is a comprehensive guideline for decision making that links the
formulation of strategy with its implementation. It defines the area within which a
decision is to be made and ensures that decisions will be consistent with objectives.
Managers develop policies to make sure that employees of the organization make
decisions and take actions that support the mission, goals, and strategies.
5. Procedures
Procedures are the sequential steps that describe in detail how a particular task
is to be performed. They generally indicate how a policy is to be implemented and
carried out. They are the guides to action and detail the exact manner in which certain
activity must be accomplished.
6. Rules
Rules are detailed guides to action. They are specific and rigid and are strictly to
be obeyed by all the members of an organization. It is essential to operate an
organization in an orderly way. They must be followed precisely and observed strictly.
The violation of rules is associated with disciplinary action.
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7. Programs
Program is a statement of activities essential to accomplish a single-use plan. It is
a comprehensive plan consisting of a complex set of goals, procedures, rules, resource
flow, etc. It is an aggregate of several related action plans that are designed to
accomplish a mission.
8. Budgets
The budget is a short-term financial plan. Which is presented in terms of money. It
is designed to allocate the resources of an organization. It is the basis of measuring
actual performance achieved with that of standard and identifying the variance.
EXPLAIN PLANNING PROCESS

LECTURE ACTIVITY 2.2 Planning Process
The planning function of management is one of the

most crucial ones. It involves setting the goals of the
company and then managing the resources to achieve
such goals. As you can imagine it is a systematic process
involving eight well thought out steps (Figure 2.2.1). Let us
take a look at the planning process.
1. Recognizing need for action
An important part of the planning process is to be aware of the business

opportunities in the firm’s external environment as well as within the firm. Once such
opportunities get recognized the managers can recognize the actions that need to be
taken to realize them. A realistic look must be taken at the prospect of these new
opportunities and SWOT analysis should be done.
Say for example the government plans on promoting cottage industries in semi-
urban areas. A firm can look to explore this opportunity.
2. Setting objectives
This is the second and perhaps the most important step of the planning process.
Here we establish the objectives for the whole organization and also individual
departments. Organizational objectives provide a general direction, objectives of
departments will be more planned and detailed.
Objectives can be long term and short term as well. They indicate the end result
the company wishes to achieve. So objectives will percolate down from the managers
and will also guide and push the employees in the correct direction.
3. Developing premises
Planning is always done keeping the future in mind, however, the future is always
uncertain. So, in the function of management certain assumptions will have to be
made. These assumptions are the premises. Such assumptions are made in the form of
forecasts, existing plans, past policies, etc.
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These planning premises are also of two types – internal and external. External
assumptions deal with factors such as political environment, social environment, the
advancement of technology, competition, government policies, etc. Internal
assumptions deal with policies, availability of resources, quality of management, etc.
These assumptions being made should be uniform across the organization. All
managers should be aware of these premises and should agree with them.
4. Identifying alternatives
The fourth step of the planning process is to identify the alternatives available to
the managers. There is no one way to achieve the objectives of the firm, there is a
multitude of choices. All of these alternative courses should be identified. There must be
options available to the manager.
Maybe he chooses an innovative alternative hoping for more efficient results. If

he does not want to experiment he will stick to the more routine course of action. The
problem with this step is not finding the alternatives but narrowing them down to a
reasonable amount of choices so all of them can be thoroughly evaluated.
5. Examining alternate course of action

The next step of the planning process is to evaluate and closely examine each of
the alternative plans. Every option will go through an examination where all there pros
and cons will be weighed. The alternative plans need to be evaluated in light of the
organizational objectives.
For example, if it is a financial plan. Then it that case its risk-return evaluation will
be done. Detailed calculation and analysis are done to ensure that the plan is capable
of achieving the objectives in the best and most efficient manner possible.
6. Selecting the alternative

Finally, we reach the decision making stage of the planning process. Now the
best and most feasible plan will be chosen to be implemented. The ideal plan is the
most profitable one with the least amount of negative consequences and is also
adaptable to dynamic situations.
The choice is obviously based on scientific analysis and mathematical equations.

But a manager’s intuition and experience should also play a big part in this decision.
Sometimes a few different aspects of different plans are combined to come up with the
one ideal plan.
7. Formulating supporting plan

Once you have chosen the plan to be implemented, managers will have to
come up with one or more supporting plans. These secondary plans help with the
implementation of the main plan. For example, plans to hire more people, train
personnel, expand the office etc. are supporting plans for the main plan of launching a
new product. So, all these secondary plans are in fact part of the main plan.
8. Implementation of the plan

And finally, we come to the last step of the planning process, implementation of
the plan. This is when all the other functions of management come into play and the
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plan is put into action to achieve the objectives of the organization. The tools required
for such implementation involve the types of plans- procedures, policies, budgets, rules,
standards etc.
Planning is a formal process and a schedule to complete the work. Every

organization has to prepare a plan to achieve a predetermined objective in proper
time. However, type of plan depends upon the nature and size of the organization.
Such plans may be prepared either for a short period or a long period and may be
prepared by top-level management or operational level management. The following
are the basis of classification of organizational plans:
Figure 2.2.2 Types of Planning in Principle of Management
1. On the Basis of Hierarchy
On the basis of hierarchy, the plan may be classified into three groups:
Corporate plan, strategic plan, and operational plan.
a. Corporate Plan
The corporate plan is a long-term plan prepared by top-level management after
environmental scanning. It also gives the reason for existence for the organization. It
clearly defines the objectives of the organization and the strategy to achieve defined
objectives. The strategy involves a clear explanation of how to achieve the defined
objectives because there is high degree of uncertainty in the strategic plan.
b. Tactical Plan
Middle-level management prepares the tactical plan. It is consistent with the
corporate plan. It is the sub-division of the corporate plans to be implemented in the
practical field. The divisional managers identify the priority of the activities and prepare
plans on the basis of the priority of works. They focus on allocating resources based on
programs. It is prepared to perform divisional activities like production, finance,
marketing, personnel, and others.
c. Operational Plan
Lower-level management prepares this plan. It is consistent with the tactical
plan. It is a specific action plan for each and every activity of the unit. It involves
preparing a schedule for each unit of work to implement in practice. It concentrates on
the best use of available resources.
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2. On the Basis of Use
On the basis of use, the plan may be classified into two groups – a single-use
plan, and a standing use plan. Brief discussions of these plans are as follows:
a. Single use Plan

Such a plan is prepared for a specific purpose in a non-programmed situation. It
is prepared for non-repetitive activities. After completion of the defined objective, such
a plan becomes worthless. The example of such plan is the project program and
budget.
b. Standing use Plan

Such a plan is prepared for a programmed decision-making situation in an
organization. This plan
gives broad guidelines for repetitive activities. Such a plan once developed will be
implemented in the organization to achieve organizational objectives in different
situations. Examples of such a plan are objectives, rules, policies, procedures, and
strategy.
3. On the Basis of Flexibility
On the basis of flexibility, the plan may be classified into two groups specific
plan, and a flexible plan.
a. Specific Plan
The specific plan is developed for a particular department or unit about the
activities to be performed. Members of an organization are clear about the task to be
performed and the resources to be used. All clearly stated plans are specific plans.
b. Flexible Plan
A flexible plan is changeable on the basis of time and situation. It is not specific in
terms of procedures and allocation of resources. Such plan only provides guidelines to
the members and they can modify it on the basis of their facility and requirement.
ELABORATE MANAGEMETN BY OBJECTIVE (MBO)

LECTURE ACTIVITY 2.3 Overview of Management by Objective (MBO)
The “Management by Objective” (MBO) approach, in the sense that it requires
all managers to set specific objectives to be achieved in the future and encourages
them to continually ask what more can be done, is offered as a partial answer to this
question of organizational vitality and creativity. As a term, “Management by
Objectives” was first used by Peter Drucker in 1954. As a management approach, it has
been further developed by many management theoreticians, among them Douglas
McGregor, George Odiorne, and John Humble. Essentially, MBO is a process or system
designed for supervisory managers in which a manager and his or her subordinate sit
down and jointly set specific objectives to be accomplished within a set time frame
and for which the subordinate is then held directly responsible.
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All organizations exist for a purpose, and, to achieve that purpose, top
management sets goals and objectives that are common to the whole organization. In
organizations that are not using the MBO approach, most planning and objective
setting to achieve these common organizational goals is directed downward. Plans
and objectives are passed down from one managerial level to another, and
subordinates are told what to do and what they will be held responsible for.
The MBO approach injects an element of dialogue into the process of passing
plans and objectives from one organizational level to another. The superior brings
specific goals and measures for the subordinate to a meeting with this subordinate,
who also brings specific objectives and measures that he or she sees as appropriate or
contributing to better accomplishment of the job.
Together they develop a group of specific goals, measures of achievement, and

time frames in which the subordinate commits himself or herself to the accomplishment
of those goals. The subordinate is then held responsible for the accomplishment of the
goals. The manager and the subordinate may have occasional progress reviews and
reevaluation meetings, but at the end of the set period of time, the subordinate is
judged on the results the he or she has achieved. He or she may be rewarded for
success by promotion or salary increases or he or she may be fired or transferred to a
job that will provide needed training or supervision. Whatever the outcome, it will be
based on the accomplishment of the goals the subordinate had some part in setting
and committed himself or herself to achieving.
Variations in Practice
In practice, this MBO approach, of necessity, varies widely, especially in regard

to how formalized and structured it is in a given organization and to what degree
subordinates are allowed to set their own goals. In some organizations, MBO is a very
formal management system with precise review scheduling, set evaluation techniques,
and specific formats in which objectives and measures must be presented for review
and discussion. In other organizations, it may be so informal as to be described simply as
“we get together and decide what we’ve done and what we’re going to do.”
However, in most organizations, MBO takes the form of formal objective setting and
appraisal meetings held on a regular basis—often quarterly, semi-annually, or annually.
Even more situational than the degree of formality and structure is the degree to which
a subordinate is allowed to set his or her own goals. In this regard, the kind of work that
an organization does plays a large part in determining how much and on what level a
subordinate will be allowed to participate in formulating his or her own goals.
In some organizations a subordinate is almost told what he or she needs to do

and is simply asked if he or she will commit to achieve that goal, while in others the
subordinate is given great latitude and room for innovation. For example, there is a
contrast between a production situation in which a supervisor informs a subordinate
that so many widgets must be made over the next six months and simply asks which
part of that production burden the subordinate is willing to shoulder and a university
situation in which a department head informs a subordinate of the need to develop
more community-oriented programs and asks how the subordinate thinks he or she can
contribute to this goal. In the latter circumstance, the subordinate has much more room
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for innovation and personal contribution as well as a greater part in designing the
specifics of the program than does the production worker who is simply asked which
part of a very specific activity he or she cares to commit to.
Potential Advantages
No matter what form the MBO approach takes in a given organization, it is

essentially a process that helps to (a) direct managers’ attention toward results, (b)
force members of the organization to commit themselves to specific achievement, and
(c) facilitate their thinking in terms of their organization’s future needs and the setting of
objectives to meet those needs. In addition, the MBO approach can supply the
manager with greater measures of three of the tools he or she needs to make the best
use of the organization’s greatest resource: people. The manager can:
1. Gain greater commitment and desire to contribute from subordinates by:

a. allowing them to feel that the objectives they are working toward were not
just handed to them but are really theirs because they played a part in
formulating them
b. giving subordinates a better sense of where they fit in the organization by
making clear how the subordinates’ objectives fit into the overall picture
c. injecting a vitality into organizational life that comes with the energy
produced as a worker strives to achieve a goal to which he or she has taken
the psychological and (sometimes economic) risk to commit.
2. Gain better control and coordination toward goal accomplishment by:

a. having a clearer picture of who is doing what and how the parts all fit
together
b. having subordinates who are more likely to control and coordinate their own
activities because they know what will help and what will hinder their goal
achievement
c. being able to see which subordinates consistently produce and which do
not.
3. Gain an increased ability to help subordinates develop by:

a. being better able to see their strengths and weakness in operation on a
specific objective
b. using a management approach that teaches the subordinates (and the
manager, for that matter) to think in terms of results in the future—an
approach that teaches them to try to anticipate change, to define clear
and specific objectives, and to delineate concrete measurements that will
tell them when they have achieved their goals.
Potential for Misuse
MBO easily can be misused and often is. What is supposed to be a system that
allows for dialogue and growth between boss and subordinate with a view to
achieving results often degenerates into a system in which the boss puts constant
pressure on the subordinate to produce results and forgets about using MBO for
commitment, desire to contribute, and management development. Sometimes even
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well-intentioned managers misuse MBO because they do not have the interpersonal
skills or knowledge of human needs to keep their appraisal sessions from becoming
critical, chewing-out periods. Finally, many managers have a tendency to see MBO as
a total system that, once installed, can handle all management problems. This has led
to forcing issues on the MBO system that it is not equipped to handle and that frustrate
whatever good effects it might have on the issues with which it is designed to deal.
Implementation of MBO Program
There are three phases in implementing an MBO program:
1. Managers must set the goals and objectives for the organization in order to have a
clear picture of what they wish to accomplish.
2. These objectives should be shared with the staff. Employees should be given the
opportunity to develop their own priorities from the guidelines presented by the
managers.
3. The manager and each employee must meet and come to a mutual agreement on
the goals and objectives of the individual. This meeting should serve as the
foundation for the employees periodic performance evaluation. From this session,
both the manager and the employee have a clear understanding of what is
expected and have the employees work will be evaluated.
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EVALUATE
MODULE 1 UNIT 1 & 2 — QUIZ
For OBL Students: Wait for the instructions of the class instructor.
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UNIT 3: ORGANIZING AND STAFFING THE LABORATORY
ENGAGE OVERVIEW OF ORGANIZATIONAL SYSTEM
Human organizations by their very nature are social systems in the most classic
sense. A system may be defined as a self-contained collection of interacting and
interdependent components, working together toward a common purpose. Systems
receive instructions and resources from external sources (input), process this internally
(transformation), and deliver the finished goods or service to external users (output).
As a concept, organizational systems may sound abstract. Truth is, we live and
thrive in organizational systems all the time--the family we are part of, the place of
worship we attend, the city we live in, the place where we work and the world at large
are just a few examples. No matter how minimal our role may seem to be, we are
always part of a larger community serving a purpose and our contribution always
affects the organizational system, positively or negatively depending on our actions.
EXPLORE ORGANIZATIONAL SYSTEM

LECTURE ACTIVITY 3.1 Characteristics of Organizational System
Organizational Systems
1. Input
Through the input mechanism, needed resources are acquired and replaced.
Supplies, knowledge, machinery, and labor are procured with the money received
from the sale of the enterprise’s products and services. In social institutions such as
government agencies, financial resources are provided in return for the expected
delivery of services. Also received at this stage are requests for the products or services
of the organization.
2. Transformation
Resources received through the input channels must be converted into the
product and services offered by the organization. This transformation is achieved by the
internal action of the organization performing the tasks established for these purposes.
This process, which requires constant attention to the desires and needs of both the
enterprise’s customers and employees, is accomplished through a mechanism of
continuous self-regulation.
3. Output
Through the output mechanism, products and services produced by the
organization are delivered to its customers. In this stage the enterprise satisfies its clients
and receives the nourishment to renew itself through the input process. Failure to meet
this goal results in challenges to the organization’s legitimacy.
All organizations share the following six traits:
1. Holistic and synergistic with clearly defined boundaries

They are made up of interconnected parts that are both dependent on and
supportive of each other. Each component acts on, and is acted upon, by the other
members of the system, resulting in a cause-and effect syndrome.
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2. Purposeful activity and a primary task
This trait is almost inseparable from the first. The system’s reason for being is a
commonly shared goal. The parts exist and are organized in such a manner as to
achieve this purpose. Although the goals and objectives of an organization may
temporarily change, the primary task must be accomplished if the enterprise is to
survive.
3. Hierarchy of systems
The internal components change and become progressively more specialized as
the organization increases in size and sophistication. This differentiation increases the
interdependence and seeks to improve the efficiency of the entity. This process results
in the development of their own character yet maintain remain under the umbrella of
the superior organization.
4. Operates as an open system

This openness is an important concept because even the most comprehensive
system must receive inputs from outside its boundaries to survive. Even a system as large
as the earth must receive and exchange important support from other systems to
maintain its dynamic.
5. Seek a state of stability and equilibrium

This characteristic can be both a strength and a source of frustration to
managers, whose job is to influence the behavior or direction of the group. Because
the mission of the organization defines its nature, the demands and tasks associated
with this purpose create an inertia to develop around certain levels and tasks.
6. Self-regulating
To be successful, a system depends on specific behaviors occurring at exactly
the right time. A business organization relies on the management process to monitor
performance and provide information to its members.
EXPLAIN
LECTURE ACTIVITY 3.2 Concept of Organizing
Work specialization
One popular organizational concept is based on the fundamental principle that
employees can work more efficiently if they're allowed to specialize. Work
specialization, sometimes called division of labor, is the degree to which organizational
tasks are divided into separate jobs. Employees within each department perform only
the tasks related to their specialized function.
When specialization is extensive, employees specialize in a single task, such as

running a particular machine in a factory assembly line. Jobs tend to be small, but
workers can perform them efficiently. By contrast, if a single factory employee built an
entire automobile or performed a large number of unrelated jobs in a bottling plant,
the results would be inefficient.
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Despite the apparent advantages of specialization, many organizations are
moving away from this principle. With too much specialization, employees are isolated
and perform only small, narrow, boring tasks. In addition, if that person leaves the
company, his specialized knowledge may disappear as well. Many companies are
enlarging jobs to provide greater challenges and creating teams so that employees
can rotate among several jobs.
Chain of command
The chain of command is an unbroken line of authority that links all persons in an
organization and defines who reports to whom. This chain has two underlying principles:
unity of command and scalar principle.
• Unity of command: This principle states that an employee should have one
and only one supervisor to whom he or she is directly responsible. No
employee should report to two or more people. Otherwise, the employee
may receive conflicting demands or priorities from several supervisors at
once, placing this employee in a no-win situation.
Sometimes, however, an organization deliberately breaks the chain of

command, such as when a project team is created to work on a special project. In
such cases, team members report to their immediate supervisor and also to a team
project leader. Another example is when a sales representative reports to both an
immediate district supervisor and a marketing specialist, who is coordinating the
introduction of a new product, in the home office.
Nevertheless, these examples are exceptions to the rule. They happen under
special circumstances and usually only within a special type of employee group. For
the most part, however, when allocating tasks to individuals or grouping assignments,
management should ensure that each has one boss, and only one boss, to whom he or
she directly reports.
• Scalar principle: The scalar principle refers to a clearly defined line of

authority that includes all employees in the organization. The classical
school of management suggests that there should be a clear and
unbroken chain of command linking every person in the organization with
successively higher levels of authority up to and including the top
manager. When organizations grow in size, they tend to get taller, as
more and more levels of management are added. This increases
overhead costs, adds more communication layers, and impacts
understanding and access between top and bottom levels. It can greatly
slow decision making and can lead to a loss of contact with the client or
customer.
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Authority
Authority is the formal and legitimate right of a manager to make decisions, issue
orders, and allocate resources to achieve organizationally desired outcomes. A
manager's authority is defined in his or her job description.
Organizational authority has three important underlying principles:

• Authority is based on the organizational position, and anyone in the same
position has the same authority.
• Authority is accepted by subordinates. Subordinates comply because they
believe that managers have a legitimate right to issue orders.
• Authority flows down the vertical hierarchy. Positions at the top of the
hierarchy are vested with more formal authority than are positions at the
bottom.
In addition, authority comes in three types:

• Line authority gives a manager the right to direct the work of his or her
employees and make many decisions without consulting others. Line
managers are always in charge of essential activities such as sales, and
they are authorized to issue orders to subordinates down the chain of
command.
• Staff authority supports line authority by advising, servicing, and assisting, but
this type of authority is typically limited. For example, the assistant to the
department head has staff authority because he or she acts as an
extension of that authority. These assistants can give advice and
suggestions, but they don't have to be obeyed. The department head
may also give the assistant the authority to act, such as the right to sign
off on expense reports or memos. In such cases, the directives are given
under the line authority of the boss.
• Functional authority is authority delegated to an individual or department

over specific activities undertaken by personnel in other departments.
Staff managers may have functional authority, meaning that they can
issue orders down the chain of command within the very narrow limits of
their authority. For example, supervisors in a manufacturing plant may find
that their immediate bosses have line authority over them, but that
someone in corporate headquarters may also have line authority over
some of their activities or decisions.
Why would an organization create positions of functional authority? After all, this
authority breaks the unity of command principle by having individuals report to two
bosses. The answer is that functional authority allows specialization of skills and
improved coordination. This concept was originally suggested by Frederick Taylor. He
separated “planning” from “doing” by establishing a special department to relieve the
laborer and the foreman from the work of planning. The role of the foreman became
one of making sure that planned operations were carried out. The major problem of
functional authority is overlapping relationships, which can be resolved by clearly
designating to individuals which activities their immediate bosses have authority over
and which activities are under the direction of someone else.
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Delegation
A concept related to authority is delegation. Delegation is the downward

transfer of authority from a manager to a subordinate. Most organizations today
encourage managers to delegate authority in order to provide maximum flexibility in
meeting customer needs. In addition, delegation leads to empowerment, in that
people have the freedom to contribute ideas and do their jobs in the best possible
ways. This involvement can increase job satisfaction for the individual and frequently
results in better job performance. Without delegation, managers do all the work
themselves and underutilize their workers. The ability to delegate is crucial to
managerial success. Managers need to take four steps if they want to successfully
delegate responsibilities to their teams.
1. Specifically assign tasks to individual team members

The manager needs to make sure that employees know that they are
ultimately responsible for carrying out specific assignments.
2. Give team members the correct amount of authority to accomplish

assignments
Typically, an employee is assigned authority commensurate with the task.
A classical principle of organization warns managers not to delegate without
giving the subordinate the authority to perform to delegated task. When an
employee has responsibility for the task outcome but little authority,
accomplishing the job is possible but difficult. The subordinate without authority
must rely on persuasion and luck to meet performance expectations. When an
employee has authority exceeding responsibility, he or she may become a
tyrant, using authority toward frivolous outcomes.
3. Make sure that team members accept responsibility

Responsibility is the flip side of the authority coin. Responsibility is the duty
to perform the task or activity an employee has been assigned. An important
distinction between authority and responsibility is that the supervisor delegates
authority, but the responsibility is shared. Delegation of authority gives a
subordinate the right to make commitments, use resources, and take actions in
relation to duties assigned. However, in making this delegation, the obligation
created is not shifted from the supervisor to the subordinate — it is shared. A
supervisor always retains some responsibility for work performed by lower-level
units or individuals.
4. Create accountability
o Team members need to know that they are accountable for their
projects. Accountability means answering for one's actions and
accepting the consequences. Team members may need to report
and justify task outcomes to their superiors. Managers can build
accountability into their organizational structures by monitoring
performances and rewarding successful outcomes. Although
managers are encouraged to delegate authority, they often find
accomplishing this step difficult for the following reasons:
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o Delegation requires planning, and planning takes time. A manager may
say, “By the time I explain this task to someone, I could do it myself.”
This manager is overlooking the fact that the initial time spent up front
training someone to do a task may save much more time in the long
run. Once an employee has learned how to do a task, the manager
will not have to take the time to show that employee how to do it
again. This improves the flow of the process from that point forward.
o Managers may simply lack confidence in the abilities of their
subordinates. Such a situation fosters the attitude, “If you want it done
well, do it yourself.” If managers feel that their subordinates lack
abilities, they need to provide appropriate training so that all are
comfortable performing their duties.
o Managers experience dual accountability. Managers are accountable
for their own actions and the actions of their subordinates. If a
subordinate fails to perform a certain task or does so poorly, the
manager is ultimately responsible for the subordinate's failure. But by
the same token, if a subordinate succeeds, the manager shares in
that success as well, and the department can be even more
productive.
o Finally, managers may refrain from delegating because they are insecure
about their value to the organization. However, managers need to
realize that they become more valuable as their teams become more
productive and talented.
Despite the perceived disadvantages of delegation, the reality is that a

manager can improve the performance of his or her work groups by empowering
subordinates through effective delegation. Few managers are successful in the long
term without learning to delegate effectively.
So, how do managers learn to delegate effectively? The following additional principles
may be helpful for managers who've tried to delegate in the past and failed:
• Principle 1: Match the employee to the task. Managers should carefully

consider the employees to whom they delegate tasks. The individual
selected should possess the skills and capabilities needed to complete
the task. Perhaps even more important is to delegate to an individual
who is not only able to complete the task but also willing to complete the
task. Therefore, managers should delegate to employees who will view
their accomplishments as personal benefits.
• Principle 2: Be organized and communicate clearly. The manager must have

a clear understanding of what needs to be done, what deadlines exist,
and what special skills are required. Furthermore, managers must be
capable of communicating their instructions effectively if their
subordinates are to perform up to their expectations.
• Principle 3: Transfer authority and accountability with the task. The delegation
process is doomed to failure if the individual to whom the task is
delegated is not given the authority to succeed at accomplishing the
task and is not held accountable for the results as well. Managers must
expect employees to carry the ball and then let them do so. This means
providing the employees with the necessary resources and power to
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succeed, giving them timely feedback on their progress, and holding
them fully accountable for the results of their efforts. Managers also
should be available to answer questions as needed.
• Principle 4: Choose the level of delegation carefully. Delegation does not

mean that the manager can walk away from the task or the person to
whom the task is delegated. The manager must maintain some control of
both the process and the results of the delegated activities. Depending
upon the confidence the manager has in the subordinate and the
importance of the task, the manager can choose to delegate at several
levels.
Span of control
Span of control (sometimes called span of management) refers to the number of
workers who report to one manager. For hundreds of years, theorists have searched for
an ideal span of control. When no perfect number of subordinates for a manager to
supervise became apparent, they turned their attention to the more general issue of
whether the span should be wide or narrow.
A wide span of management exists when a manager has a large number of

subordinates. Generally, the span of control may be wide when:
• The manager and the subordinates are very competent.
• The organization has a well-established set of standard operating
procedures.
• Few new problems are anticipated.
A narrow span of management exists when the manager has only a few
subordinates. The span should be narrow when:
• Workers are located far from one another physically.
• The manager has a lot of work to do in addition to supervising workers.
• A great deal of interaction is required between supervisor and workers.
• New problems arise frequently.
Keep in mind that the span of management may change from one department
to another within the same organization.
The general pattern of authority throughout an organization determines the
extent to which that organization is centralized or decentralized.
A centralized organization systematically works to concentrate authority at the

upper levels. In a decentralized organization, management consciously attempts to
spread authority to the lower organization levels.
A variety of factors can influence the extent to which a firm is centralized or

decentralized. The following is a list of possible determinants:
• The external environment in which the firm operates. The more complex and
unpredictable this environment, the more likely it is that top management
will let low-level managers make important decisions. After all, low-level
managers are closer to the problems because they are more likely to
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have direct contact with customers and workers. Therefore, they are in a
better position to determine problems and concerns.
• The nature of the decision itself. The riskier or the more important the decision,
the greater the tendency to centralize decision making.
• The abilities of low-level managers. If these managers do not have strong

decision-making skills, top managers will be reluctant to decentralize.
Strong low-level decision-making skills encourage decentralization.
• The organization's tradition of management. An organization that has

traditionally practiced centralization or decentralization is likely to
maintain that posture in the future.
ELABORATE
LECTURE ACTIVITY 3.3 Organizational Process
In any enterprise two simultaneous organizational structures may complement,
but often compete with each other. The first is the formal bureaucracy, which is
officially sanctioned by the owners of the institution and is given the authority and
responsibility to carry out the organization’s designated duties. Within the formal
structure, members of the organization know whom they work for, whom they supervise,
how their department relates to other groups, and even who supervise their boss. The
formal bureaucracy consists of a specific organizational plan that can drawn up
formally in an organizational chart so that the chain of command and chain of
responsibility are clearly understood.
The second, less obvious structures are the informal groups that develop from the
interaction and allegiance of people with common interest. These informal groups can
arise from within the organization through the day-to-day activities of people working
together or from social involvement with community, family, or recreational ties. The
smart manager is aware of the potential of both structures and builds opportunities for
groups and individuals to work creatively together by forming teams that develop from
the natural flow of the work.
Organizing, like planning, must be a carefully worked out and applied process.
This process involves determining what work is needed to accomplish the goal,
assigning those tasks to individuals, and arranging those individuals in a decision-
making framework (organizational structure). The end result of the organizing process is
an organization — a whole consisting of unified parts acting in harmony to execute
tasks to achieve goals, both effectively and efficiently.
A properly implemented organizing process should result in a work environment

where all team members are aware of their responsibilities. If the organizing process is
not conducted well, the results may yield confusion, frustration, loss of efficiency, and
limited effectiveness.
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In general, the organizational process consists of five steps (a flowchart of these steps is
shown in Figure 3.3.1):
Figure 3.3.1 Organizational Process
1.Review plans and objectives

Objectives are the specific activities that must be completed to achieve goals.
Plans shape the activities needed to reach those goals. Managers must examine plans
initially and continue to do so as plans change and new goals are developed.
2.Determine the work activities necessary to accomplish objectives

Although this task may seem overwhelming to some managers, it doesn't need
to be. Managers simply list and analyze all the tasks that need to be accomplished in
order to reach organizational goals.
3.Classify and group the necessary work activities into manageable units
A manager can group activities based on four models of departmentalization:
functional, geographical, product, and customer.
4.Assign activities and delegate authority

Managers assign the defined work activities to specific individuals. Also, they give
each individual the authority (right) to carry out the assigned tasks.
5.Design a hierarchy of relationships

A manager should determine the vertical (decision-making) and horizontal
(coordinating) relationships of the organization as a whole. Next, using the
organizational chart, a manager should diagram the relationships.
Organizational Chart
An essential management tool is the organizational chart. An organizational
chart shows hierarchical relationships between functional areas. It is a visual depiction
of the organization. It helps to clarify workflow, reporting lines, and areas of responsibility
by explicitly listing delineated work areas, be it by division, laboratory, or medical
specialty.
The chart specifically indicates positional authority. Authority implicitly

accompanies a position on the organizational chart, and its location on the chart
implies a degree of consent by direct reports. The organizational chart is a contract of
sorts, as it unambiguously illustrates the structure of the organization and the
relationships among the people within it.
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EVALUATE
MODULE 1 UNIT 3 — QUIZ
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UNIT 4: DIRECTING AND SUPERVISING THE LABORATORY
EXPLORE DIRECTING PROCESS

LECTURE ACTIVITY 4.1 Overview of Directing Process
A manager is a director of people and activities. Staff members require and
expect direction in their activities. The action of management is in directing people in
their activities. Directing is the process of influencing people to attain predetermined
objectives.
Table 4.1.1 Differences of Directing and Supervising

Directing Supervising
-Most visible of all management -Implies overseeing the work of
functions subordinates by their superiors
-Includes seeing that the day-to-day -It is the act of watching and directing
tasks necessary to ensure a smooth- work and workers
running facility are done
-Is the human factor stage (both
leadership and managerial skills come
to the forefront)
Managers should be comfortable and confident commanding their team

members’ daily tasks as well as during periods of significant change or challenge. This
involves projecting a strong sense of direction and leadership when setting goals and
communicating new processes, products and services, or internal policy.
Leadership can manifest itself in a number of ways, including recognizing when
employees need an extra boost of reinforcement and praise to handling conflicts
between team members fairly and decisively. Often, managers may function as
leaders even during small personal interactions by modeling supportive, encouraging,
and motivational qualities.
Leadership should be distinguished from management
!Management involves planning, organizing, staffing, directing, and controlling, and

a manager is someone who performs these functions. A manager has formal
authority by virtue of his or her position or office
!Leadership, by contrast, primarily deals with influence. A manager may or may not
be an effective leader. A leader's ability to influence others may be based on a
variety of factors other than his or her formal authority or position.
!Other opinions of leadership

i.Leadership is tied to the personality and persuasive talents (charisma) of the
person
ii.The situation or special circumstances enable a person to rise to the occasion
iii.It is the power either the formal authority or money, that makes the leader
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! These opinions about leadership raise an important question: Are leaders born, or
can they be trained?
i.Some people make friends and influence others easily, but they may have
trouble organizing or lack the necessary analytical skills
ii.There are those who are natural organizers, but have difficulty dealing with
people and need
iii.Others may be talented in analytic and troubleshooting situations but deficient
in organizing and people skills
Within the context of motivation, leadership can be defined as the process of

influencing the efforts of others to achieve designated organizational goals (Directing
function)
LECTURE ACTIVITY 4.2 Major Leadership System

Social psychologist Rensis Likert first described his famous management systems
in the 1960s, based upon his observations of employee-manager relationships in
organizational settings. His four systems are designed to highlight various organizational
dynamics and characteristics built around interactions between individuals. Notably,
the systems explore various soft management skills such as trust-building and their
effects on the broader dynamic of the organization itself.
The four management systems as identified by Likert were:

1. Exploitative Authoritative
2. Benevolent Authoritative
3. Consultative
4. Participative
In his view, the closer the organizational characteristics are to the participative
system, the more satisfied and therefore more productive the employees will be. On
top of productivity, the organization will receive numerous other benefits, including staff
retention increased profitability and generally reduce costs over the long term.
1. Exploitative Authoritative
Exploitative authoritative systems are extremely hierarchical, with power and
responsibility lying at higher levels within the organization.
Individuals lower down the system (non-managers) do not influence the

decision-making whatsoever and are not involved in the process by their superiors - this
is due to a lack of trust between managers and employees. Communication is
delivered top-down and roles are dictated, rather than it being a two-way
conversation. Higher management considers themselves responsible for achieving
organizational objectives but will hold employees responsible for any mistakes that are
made at lower levels.
•Decision-making and responsibility at upper levels of the organizational hierarchy

•Little to no trust in employees
•Decisions and roles are imposed on employees
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•Employees cannot openly discuss decisions and roles with managers
•Employees may engage in counter-productive behaviour
•Motivation by punishments and threats - play on fear
•Teamwork and communication are minimal
2. Benevolent Authoritative
In a benevolent authoritative system, responsibility also lies at the upper echelons
of the organization. However, instead of inducing performance through the threat of
punishment, and therefore fear, employees are instead motivated through a reward
system. Superiors have more trust in their employees than do managers in an
exploitative authoritative system, and therefore are more willing to reward individuals
for good performance.
There is more two-way communication between employee and line-

manager however, upwards communication is more limited and tends towards only
positive information, not queries or requests. Employees will not suggest any new ideas
or recommendations which can make them more productive or satisfied and therefore
the result is a lack of communication and teamwork.
A summary of the key characteristics is as follows:

•Decision-making extended to middle-managerial levels
•More trust towards employees, though somewhat condescendingly
•Responsibility still lies near the top of the hierarchy
•Limited employee consultation on decisions
•Employees still cannot discuss their roles with managers
•Team members may compete for rewards
•Rewards for performance, but also still a threat of punishment
•Teamwork and communication are minimal
3. Consultative System
In a consultative system, managers have yet greater trust in their subordinates
and demonstrate as such by implementing ideas or beliefs that they share with their
team members.
There is an open level of communication throughout the hierarchy of the

organization and team members are often consulted during the decision-making
process, particularly when any changes will affect them substantially. However, the
ultimate power of decisions still remains with those at the highest levels within the
organization.
Employee motivation is fuelled by incentives, including both rewards and the

possibility of involvement or even responsibility for specific tasks. In this
style, employees are given greater freedom and involvement in meaningful tasks are
used to boost intrinsic motivation.
A summary of the key aspects:

•Decision-making extended to lower-levels when it significantly affects their role
•Substantial trust in employees
•Responsibility often shared with some team members
•Decisions can be formed through employee consultation processes
•Employees discuss job-related issues horizontally, and sometimes vertically
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•Teams are more co-operative - communication and teamwork are good
•Motivation primarily through reward, but sometimes punishment
4. Participative System
Likert considered the participative system to be the most satisfying for lower-level
employees. Upper management has full trust in their subordinates and actively works
with them as part of the decision-making process. Employees are free to discuss any
issues or ideas with their superiors, knowing full well that their discussions may be
conducive to at least some kind of change.
Rewards within a participative system are common, and teams are happily co-
operative with no direct competition between employees. The level of communication
is high, both horizontally and vertically, and teamwork is regular. This system is generally
more common in flatter organizations, or those which are smaller with lower tiers of the
hierarchy, though it can be employed within any company.
A summary of the key aspects:

•Decision-making, responsibility and values are free-spread across all tiers
•Complete confidence and trust in all employees
•Decisions are formed through group participation and consultation
•Communication is free and managers actively try to understand issues
•Employees are co-operative and openly accountable
•Motivation is provided through monetary rewards and involvement in goal-setting
•Teamwork, satisfaction and therefore productivity, are high
EXPLAIN
LECTURE ACTIVITY 4.3 Principles of Leadership
Leadership principles are the set of actions or guiding beliefs that leaders can
implement to move them toward success. How well an organization, company or
business performs is directly related to how effectively the leader motivates and guides
their employees.
There are many different leadership styles, and what works for one leader may
not work for another. Because of this, each leader must have a specific set of principles
that applies to them and their organization. However, certain principles are found in all
styles of leadership, such as showing people how to do a good job instead of just telling
them what to do. This is one difference that separates a great leader from a manager
or supervisor. A leader should always be involved in their work and have a genuine
interest in seeing the organization succeed.
Leadership principles are a framework of actions you can take as a leader to

inspire others to work together toward a common goal—they are the foundation for
success.
1. Lead by example
Many successful leaders demonstrate how to behave, perform tasks and do their
work. A good leader models excellent behavior and must be able to motivate and
encourage people. The most successful companies and organizations have leaders
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who help their staff understand the value in their vision and show them how everyone
can work together to achieve that goal in their role.
It is challenging for people to have faith in an idea or point of view if their leader
is not also committed to the vision and empowering their employees or followers to take
appropriate action. When you lead by example, your followers should see that you are
confident and dedicated, and they will want to align their behavior to their leader.
2. Leadership is about people

Communicating and engaging with your team is essential to leadership.
Interpersonal and communication skills are essential to any leader. Without being able
to communicate your vision to others, leadership will be challenging. As a leader, you
should have the best possible relationship with each member of your team. This means
not only relating to those people in top-level management but also the people who
work in the lowest-level positions and everyone in between.
Leaders should work to constantly improve relationships, their interpersonal skills

and how they influence the people who surround them.
3. Focus on change
Transformation should be at the foundation of every leadership plan. People
need to understand what your goals and objectives are and the part they can play in
transforming the organization. Once they know the direction and changes that need to
happen, they may be more willing to work toward them.
When you encourage others to change and grow, you will do the same as a
leader. Change for the better should be your focus, not just making changes for
financial gain. Focus on the overall vision and have the ambition to bring about
change.
4. Be human and admit mistakes

Everyone makes mistakes, but it can be beneficial for other people to see a
leader acknowledge their mistakes as it can help them be more relatable. Mistakes can
show you where you went wrong and how you can improve in the future. A wise leader
learns from each experience and uses it to teach their employees and themselves what
areas they need to focus on to grow as an organization.
People can lose faith in others when they are unwilling to accept responsibility.
When a leader owns a mistake, they are often held in higher regard.
5. Understand the value of listening

Learn to listen more than you talk. When you listen, you could be finding out
valuable, new information that may help you lead effectively. Leaders are great
listeners, which does not mean that they must agree with everything they hear, but they
must try to make sense of it and understand.
There are two levels of human understanding: intellectual and emotional. When
you understand what someone is saying, this is the intellectual level. The emotional level
of understanding means that you know how they are feeling. A good leader should
understand both. People feel valued and respected when a leader takes the time to
listen and process what they are saying.
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6. Develop leadership skills
A leader is defined by their behavior and actions, and a good leader has
specific skills and characteristics that help them lead effectively.
To be a great leader, you should recognize the skills you need and work to
develop them. Identify your strengths and weaknesses and what your leadership
strategy will be. You need to understand your own behaviors and attitudes, and how
these affect your ability to lead. You must constantly work on your skills and always
strive to improve them because they determine how successful your leadership style will
be.
7. Promote diversity
A leader should welcome diversity and harness the strengths that it can confer
on a company. When everyone has the same background and experience, it means
there is a limited field of expertise, but when there is a diverse range, you may be able
to approach things differently and find fresh perspectives.
A diverse workforce encourages innovation and new ideas, which in turn

increases the likelihood of success. Many schools of thought now identify diversity as
key to business accomplishments like profit and growth. A leader needs to recognize
the importance of diversity and aim to build teams that embrace it.
8. Work together to achieve more

Collaboration is the act of working with others to share information, strategies
and successes, and every great leader understands its importance. Cooperation and
collaboration can happen between organizations without affecting healthy
competition. A leader should embrace the benefits working collaboratively can bring.
9. Have solid values

An effective leader must have a clear vision and solid values so they can inspire
their followers and motivate them. Values are essential, and they show that you are a
credible leader. Profit is essential to every business, but it should not be the sole value
that a leader works toward. Employees appreciate working within a great team, having
flexible working hours, job security, training and development, a comfortable working
environment and a job that makes them feel like they are making a difference.
People typically want to work with a leader who understands their values and
needs and has authentic values they follow themselves.
10. Use technology and innovation

Since technology use in the workplace is widespread, as a leader you should
take advantage of the benefits that technology can bring to your organization.
Technology can help in the operation of a business, increase productivity, help
movement into new markets and facilitate in achieving the company vision.
Communication across the world is easier using new technologies, which helps with
collaboration. Teams can now work together even if they are based in different
countries.
It is vital to strong leadership that you understand and educate yourself on the
technologies that are involved in your organization. You can then improve on how they
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are used so you gain the most benefit. It is also essential to understand what challenges
there could be and how you can overcome them. Your vision for the future could be
affected by the technology that is available or by future innovations.
11. Help to develop future leaders

There is always a need for good leadership, and part of being a great leader is
to make sure there is someone else who can take over your role when necessary.
Thinking about the future in this way is a strong leadership trait. The organization will
benefit from having a plan in place that leaves no time gap when people have no
leader to look to. When employees are educated on how to become leaders, they are
motivated to take ownership of their work.
Leaders should understand the value of education and the development of skill
sets, nurture talent within the workforce and be able to identify and mentor the
individuals who could become leaders of the future.
Factors of Leadership
There are four primary factors of leadership:
1. Leader
You must have an honest understanding of who you are, what you know, and
what you can do. Also, note that it is the followers, not the leader or someone else who
determines if the leader is successful. If they do not trust or lack confidence in their
leader, then they will be uninspired. To be successful you have to convince your
followers, not yourself or your superiors, that you are worthy of being followed.
2. Followers
Different people require different styles of leadership. For example, a new hire
requires more supervision than an experienced employee does. A person who lacks
motivation requires a different approach than one with a high degree of motivation.
You must know your people! The fundamental starting point is having a good
understanding of human nature, such as needs, emotions, and motivation. You must
come to know your employees' be, know, and do attributes.
3. Communication
You lead through two-way communication. Much of it is nonverbal. For instance,
when you “set the example,” that communicates to your people that you would not
ask them to perform anything that you would not be willing to do. What and how you
communicate either builds or harms the relationship between you and your followers.
4. Situation
All situations are different. What you do in one situation will not always work in
another. You must use your judgment to decide the best course of action and the
leadership style needed for each situation. For example, you may need to confront an
employee for inappropriate behavior, but if the confrontation is too late or too early,
too harsh or too weak, then the results may prove ineffective.
Personal Traits of Leaders

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Successful leaders come in a wide variety of personal characteristics (Table 4.3.1)
such as their ability to make speeches in public or to relate to people in groups or
individually. We have all met successful leaders that we wondered what enabled them
to be effective. Some are smooth and some are rough. It is impossible to find any one
characteristic that all of them have and many non-leaders do not have.
Table 4.3.1. Leadership traits

Leadership Traits Description
•An outgoing style - the ability and enjoyment of
"working the crowd" is a very useful skill both for
leadership and many other parts of life.
•Charisma is often thought of as a trait of many
leaders
•Humor and warmth are effective in most
Personality
leadership (and non-leadership) situations.
•Another useful characteristic is the ability
to remember personal characteristics such as
names, items about the family, how many children
they have, etc. People like to hear their names. It
recognizes them as a unique individual.
•Communications skills - you must be able to speak
effectively in public and in most cases, you must
have good writing skills also.
Persuasive •You must be able to communicate in the style or
jargon of the group or organization.
•Your message must fit your audience.
•Keep trying - most social changes, large and small,
is and should be slow. Major changes in values and
beliefs often occur between generations. It is
unusual for major social changes to occur in less
than a few years or even decades. Changes in the
educational system often take several decades. If
change occurs too fast, people become uncertain
Persistence about what is "right," good or appropriate. They lose
their sense of security. Something as simple as a
small change in curriculum of the local school
system may take years. But if the idea is good, the
results may last decades and effect many people.
Also realize that in historical perspective, the
changes you are working toward are small and
incremental.
•Patience and persistence are essential twins for
getting things done.
Patience •Always remember it takes time, time for
leadership, and time for change.
•Self-discipline is an essential trait for leadership.
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•You must be sensitive to other people's wants and
needs and to changes in these wants and needs.
Genuine interest in another person will often
develop a sense of trust by that person. A gifted
politician is one who can carefully always perceive
Perceptive
the current mood of his constituents. The ability to
listen is an essential skill of a good leader.
•You must stay in touch with your supporters. If the
group is large or unorganized, this is very difficult to
do because of the lack of accurate feedback.
•Honesty and trustworthy, you need to be honest
both now and in the future. Most people will believe
and follow someone they trust. Openness and
Probity candor are characteristics that most people
appreciate. There are a few people who will take
advantage of such traits, but the vast majority will
appreciate them.
•It is very important that people be given
recognition for their contributions.
Praise giving •A self-effacing leader who gives the credit to his/
her supporters will attract many more followers than
one who brags on "my" accomplishments.
•The future should always be seen as bright and
optimistic. Tomorrow will be better than today.
•We want to think that the future will be better than
today, that things can and will improve. Problems
Positive orientation can be solved by our actions. And we want our
leaders to portray a positive optimistic attitude.
Problems are not "problems", but opportunities.
Simultaneously, we want our leaders to be honest
and realistic.
•Leadership must be of, by and for the people.
People based •The only reason for leadership should be for the
benefit of the people.
•A leader must be realistic to determine the art of
the possible.
Possible •Determining which ideas in any organization or
setting are politically and economically feasible
and which are not is a vital asset for any leader.
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•A leader must realize that pleasing all of the
people all of the time is not possible. A leader must
be practical in decisions made catering to the
majority, perceptive enough to realize when the
majority is right and strong enough to take action
without the support of the majority when the
Practical
majority is wrong
•At the same time you must be strong enough to
stand by your convictions and accept the criticisms
- valid and invalid - which are sure to come.
•Again, practical and possible are twins that have
considerable interrelationships.
•An effective leader will move the group forward.
Incorporating new strategies in leadership and
Progressive communications is important. Sometimes progress
may mean maintaining the current situation. It
depends upon the group's needs and desires.
•A leader must be knowledgeable about his or her
goals, the variety of means for reaching the goals,
Prepared the needs necessary to meet the goals and about
the people in the group. An effective leader must
be both organized and prepared.
•Even the best leaders cannot tackle most
leadership jobs alone. They need to have and to
motivate followers to become involved in getting
the job done. They must trust other people to get a
Power-building
job done and they must be able to delegate. A
similar trait is the ability to network - to build linkages
of friends and acquaintances that may be able to
provide needed assistance at some future time.
LECTURE ACTIVITY 4.4 Leadership Behavior and Styles

Leader behavior is the traits and characteristics that make some effective as a
leader. Leaders utilize their behavior to help them guide, direct, and influence the work
of their team. There are many innate characteristics that enhance leadership behavior,
however there are strategies and actions that leaders can work to develop in order to
improve their behavior and be more effective.
Organizations thrive on leaders who use their behavior to share a vision,

encourage teams, and ensure everyone is as effective as possible. Tables 4.4.1 and
4.4.2 shows the comparison of leadership styles.
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Table 4.4.1. Employee-Oriented vs. Production-Oriented Leadership Styles
Employee-oriented Leaders Production-oriented Leaders
•Strong ties to their employees •Emphasize high productivity at the
•Spent more of their time in actual expense of all other factors
supervision rather than in production •Viewed workers as only tools for use
work by the company
•Supervised less closely while allowing •Spent majority of their time on
workers more latitude in performing production-related problems
their duties
•Demonstrated concern for their
people both on and off the job
Table 4.4.2. Structure vs. Consideration Leadership Styles

Initiating structure behavior Consideration behavior
Marked by emphasis on actively directing •Managers’ effort to explain their
the staff toward getting the work done: action
•P a y i n g a t t e n t i o n t o a s s i g n i n g •Treat workers as equals, listen to
particular tasks subordinates’ concerns
•Specifying and clarifying what is •Look out for their persona welfare
expected of subordinates •Give advance notice of changes
•Uniformity of the procedures to be •Friendly and approachable
followed
•Personally deciding what and how
work will be done
Managerial Grid
The Blake Mouton Managerial Grid is based on two behavioral dimensions:
• Concern for People: this is the degree to which a leader considers team
members' needs, interests and areas of personal development when
deciding how best to accomplish a task.
• Concern for Results: this is the degree to which a leader emphasizes concrete
objectives, organizational efficiency and high productivity when deciding
how best to accomplish a task.
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Blake and Mouton defined five leadership styles based on these, as illustrated in the
diagram below.
Figure 4.4.1 The Blake and Mouton Managerial Grid
1. Impoverished Management – Low Results/Low People

The Impoverished or "indifferent" manager is mostly ineffective. With a low regard
for creating systems that get the job done, and with little interest in creating a satisfying
or motivating team environment, his results are inevitably disorganization, dissatisfaction
and disharmony.
2. Produce-or-Perish Management – High Results/Low People

Also known as "authoritarian" or "authority-compliance" managers, people in this
category believe that their team members are simply a means to an end. The team's
needs are always secondary to its productivity.
This type of manager is autocratic, has strict work rules, policies and procedures,
and can view punishment as an effective way of motivating team members. This
approach can drive impressive production results at first, but low team morale and
motivation will ultimately affect people's performance, and this type of leader will
struggle to retain high performers.
She probably adheres to the Theory X approach to motivation, which assumes

that employees are naturally unmotivated and dislike working. A manager who
believes people are self-motivated and happy to work is said to follow Theory Y.
3. Middle-of-the-Road Management – Medium Results/Medium People

A Middle-of-the-Road or "status quo" manager tries to balance results and
people, but this strategy is not as effective as it may sound. Through continual
compromise, he fails to inspire high performance and also fails to meet people's needs
fully. The result is that his team will likely deliver only mediocre performance.
4. Country Club Management – High People/Low Results

The Country Club or "accommodating" style of manager is most concerned
about her team members' needs and feelings. She assumes that, as long as they are
happy and secure, they will work hard.
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What tends to be the result is a work environment that is very relaxed and fun,
but where productivity suffers because there is a lack of direction and control.
5. Team Management – High Production/High People

According to the Blake Mouton model, Team management is the most effective
leadership style. It reflects a leader who is passionate about his work and who does the
best he can for the people he works with.
Team or "sound" managers commit to their organization's goals and mission,

motivate the people who report to them, and work hard to get people to stretch
themselves to deliver great results. But, at the same time, they're inspiring figures who
look after their teams. Someone led by a Team manager feels respected and
empowered, and is committed to achieving her goals.
Team managers prioritize both the organization's production needs and their people's
needs. They do this by making sure that their team members understand the
organization's purpose, and by involving them in determining production needs.
When people are committed to, and have a stake in, the organization's success,
their needs and production needs coincide. This creates an environment based on trust
and respect, which leads to high satisfaction, motivation and excellent results. Team
managers likely adopt the Theory Y approach to motivation, as we mentioned above.
Note:
Blake and his colleagues added two more leadership styles after Mouton's death in
1987, although neither appears on the grid itself, for the reasons explained below.
• Paternalistic Management
o A paternalistic manager will jump between the Country Club and
Produce-or-Perish styles. This type of leader can be supportive and
encouraging, but will also guard his or her own position – and
paternalistic managers don't appreciate anyone questioning the way
they think.
o Opportunistic Management
o This doesn't appear on the grid because this style can show up anywhere
within it. Opportunistic managers place their own needs first, shifting
around the grid to adopt whichever style will benefit them. They will
manipulate and take advantage of others to get what they want.
McGregor’s Theory X and Theory Y

The idea that a manager’s attitude has an impact on employee motivation was
originally proposed by Douglas McGregor, a management professor at the
Massachusetts Institute of Technology during the 1950s and 1960s. In his 1960 book, The
Human Side of Enterprise, McGregor proposed two theories by which managers
perceive and address employee motivation. He referred to these opposing
motivational methods as Theory X and Theory Y management. Each assumes that the
manager’s role is to organize resources, including people, to best benefit the company.
However, beyond this commonality, the attitudes and assumptions they embody are
quite different.
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Theory X
According to McGregor, Theory X management assumes the following:
• Work is inherently distasteful to most people, and they will attempt to avoid work
whenever possible.
• Most people are not ambitious, have little desire for responsibility, and prefer to
be directed.
• Most people have little aptitude for creativity in solving organizational problems.
• Motivation occurs only at the physiological and security levels of Maslow’s
hierarchy of needs.
• Most people are self-centered. As a result, they must be closely controlled and
often coerced to achieve organizational objectives.
• Most people resist change.
• Most people are gullible and unintelligent.
Essentially, Theory X assumes that the primary source of employee motivation is

monetary, with security as a strong second. Under Theory X, one can take a hard or soft
approach to getting results.
The hard approach to motivation relies on coercion, implicit threats,

micromanagement, and tight controls— essentially an environment of command and
control. The soft approach, however, is to be permissive and seek harmony in the hopes
that, in return, employees will cooperate when asked. However, neither of these
extremes is optimal. The hard approach results in hostility, purposely low output, and
extreme union demands. The soft approach results in a growing desire for greater
reward in exchange for diminished work output.
It might seem that the optimal approach to human resource management would
lie somewhere between these extremes. However, McGregor asserts that neither
approach is appropriate, since the basic assumptions of Theory X are incorrect.
Drawing on Maslow’s hierarchy of needs, McGregor argues that a need, once

satisfied, no longer motivates. The company uses monetary rewards and benefits to
satisfy employees’ lower-level needs. Once those needs have been satisfied, the
motivation disappears. Theory X management hinders the satisfaction of higher-level
needs because it doesn’t acknowledge that those needs are relevant in the
workplace. As a result, the only way that employees can attempt to meet higher-level
needs at work is to seek more compensation, so, predictably, they focus on monetary
rewards. While money may not be the most effective way to self-fulfillment, it may be
the only way available. People will use work to satisfy their lower needs and seek to
satisfy their higher needs during their leisure time. However, employees can be most
productive when their work goals align with their higher-level needs.
McGregor makes the point that a command-and-control environment is not

effective because it relies on lower needs for motivation, but in modern society those
needs are mostly satisfied and thus are no longer motivating. In this situation, one would
expect employees to dislike their work, avoid responsibility, have no interest in
organizational goals, resist change, etc.—creating, in effect, a self-fulfilling prophecy. To
McGregor, a steady supply of motivation seemed more likely to occur under Theory Y
management.
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Theory Y
The higher-level needs of esteem and self-actualization are ongoing needs that,
for most people, are never completely satisfied. As such, it is these higher-level needs
through which employees can best be motivated.
In strong contrast to Theory X, Theory Y management makes the following

assumptions:
• Work can be as natural as play if the conditions are favorable.

• People will be self-directed and creative to meet their work and organizational
objectives if they are committed to them.
• People will be committed to their quality and productivity objectives if rewards
are in place that address higher needs such as self-fulfillment.
• The capacity for creativity spreads throughout organizations.
• Most people can handle responsibility because creativity and ingenuity are
common in the population.
• Under these conditions, people will seek responsibility.
Under these assumptions, there is an opportunity to align personal goals with

organizational goals by using the employee’s own need for fulfillment as the motivator.
McGregor stressed that Theory Y management does not imply a soft approach.
McGregor recognized that some people may not have reached the level of
maturity assumed by Theory Y and may initially need tighter controls that can be
relaxed as the employee develops.
If Theory Y holds true, an organization can apply the following principles of

scientific management to improve employee motivation:
• Decentralization and delegation: If firms decentralize control and reduce the

number of levels of management, managers will have more subordinates
and consequently need to delegate some responsibility and decision making
to them.
• Job enlargement: Broadening the scope of an employee’s job adds variety and
opportunities to satisfy ego needs.
• Participative management: Consulting employees in the decision-making

process taps their creative capacity and provides them with some control
over their work environment.
• Performance appraisals: Having the employee set objectives and participate in

the process of self-evaluation increases engagement and dedication.
If properly implemented, such an environment can increase and continually
fuel motivation as employees work to satisfy their higher-level personal needs through
their jobs.
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Pygmalion Effect
The Pygmalion effect is a type of self-fulfilling

prophecy (SFP) in which raising manager
expectations regarding subordinate performance
boosts subordinate performance. Managers who are
led to expect more of their subordinates lead them to
greater achievement. Programmatic research
findings from field experiments are reviewed, and our
present knowledge about the Pygmalion effect in the
management of industrial, sales, and military
organizations is summarized. A model is presented in
which leadership is hypothesized to be the key
mediator through which manager expectations
influence subordinate self-efficacy, performance
expectations, motivation, effort, and performance.
ELABORATE
LECTURE ACTIVITY 4.5 Situational Leadership Models
1. Contingency Model
Fred E. Fiedler’s contingency theory of leadership effectiveness was based on
studies of a wide range of group effectiveness, and concentrated on the relationship
between leadership and organizational performance. This is one of the earliest
situation-contingent leadership theories given by Fiedler. According to him, if an
organization attempts to achieve group effectiveness through leadership, then there is
a need to assess the leader according to an underlying trait, assess the situation faced
by the leader, and construct a proper match between the two.
Leader’s trait
In order to assess the attitudes of the leader, Fiedler developed the ‘least
preferred co-worker’ (LPC) scale in which the leaders are asked about the person with
whom they least like to work. The scale is a questionnaire consisting of 16 items used to
reflect a leader’s underlying disposition toward others. The items in the LPC scale are
pleasant / unpleasant, friendly / unfriendly, rejecting / accepting, unenthusiastic /
enthusiastic, tense / relaxed, cold / warm, helpful / frustrating, cooperative /
uncooperative, supportive / hostile, quarrelsome / harmonious, efficient / inefficient,
gloomy / cheerful, distant / close, boring / interesting, self-assured / hesitant, open /
guarded. Each item in the scale is given a single ranking of between one and eight
points, with eight points indicating the most favorable rating.
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Fiedler states that leaders with high LPC scores are relationship-oriented and the
ones with low scores are task-oriented. The high LPC score leaders derived most
satisfaction from interpersonal relationships and therefore evaluate their least preferred
co-workers in fairly favorable terms. These leaders think about the task accomplishment
only after the relationship need is well satisfied. On the other hand, the low LPC score
leaders derived satisfaction from performance of the task and attainment of objectives
and only after tasks have been accomplished, these leaders work on establishing good
social and interpersonal relationships.
Situational factor
According to Fiedler, a leader’s behavior is dependent upon the favorability of
the leadership situation. Three factors work together to determine how favorable a
situation is to a leader. These are:
• Leader-member relations - The degree to which the leaders is trusted and liked
by the group members, and the willingness of the group members to follow
the leader’s guidance.
• Task structure - The degree to which the group’s task has been described as
structured or unstructured, has been clearly defined and the extent to which
it can be carried out by detailed instructions.
• Position power - The power of the leader by virtue of the organizational position
and the degree to which the leader can exercise authority on group
members in order to comply with and accept his direction and leadership.
2. Continuum of Leadership
The leadership continuum was originally written in 1958 by Tannenbaum and
Schmidt and was later updated in the year 1973. Their work suggests a continuum of
possible leadership behavior available to a manager and along which many leadership
styles may be placed. The continuum presents a range of action related to the degree
of authority used by the manager and to the area of freedom available to non-
managers in arriving at decisions. A broad range of leadership styles have been
depicted on the continuum between two extremes of autocratic and free rein (See
figure 6). The left side shows a style where control is maintained by a manager and the
right side shows the release of control. However, neither extreme is absolute and
authority and freedom are never without their limitations.
The Tannenbaum and Schmidt continuum can be related to McGregor’s supposition of
Theory X and Theory Y. Boss-centered leadership is towards theory X and subordinate-
centered leadership is towards theory Y.
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Figure 4.5.1 Continuum Leadership Behavior
A manager is characterized according to degree of control that is maintained

by him. According to this approach, four main styles of leadership have been identified:
• Tells: The manager identifies a problem, chooses a decision, and announces this
to subordinates. The subordinates are not a party to the decision-making
process and the manager expects them to implement his decisions as soon
as possible.
• Sells: The decision is chosen by the manager only but he understands that there
will be some amount of resistance from those faced with the decision and
therefore makes efforts to persuade them to accept it.
• Consults: Though the problem is identified by the manager, he does not take a
final decision. The problem is presented to the subordinates and the solutions
are suggested by the subordinates.
• Joins: The manager defines the limits within which the decision can be taken by
the subordinates and then makes the final decision along with the
subordinates.
According to Tannenbaum and Schmidt, if one has to make a choice of the

leadership style which is practicable and desirable, then his answer will depend upon
the following three factors:
• Forces in the Manager: The behavior of the leader is influenced by his

personality, background, knowledge, and experience. These forces include:
ii. Value systems
iii. Confidence in subordinates
iv. Leadership inclinations
v. Feelings of security in an uncertain situation
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i. Forces in the subordinate: The personality of the subordinates and their
expectations from the leader influences their behavior. The factors include:
ii. Readiness to assume responsibility in decision-making
iii. Degree of tolerance for ambiguity
iv. Interest in the problem and feelings as to its importance
v. Strength of the needs for independence
vi. Knowledge and experience to deal with the problem
vii. Understanding and identification with the goals of the organization
If these factors are on a positive side, then more freedom can be allowed to the
subordinate by the leader.
i. Forces in the situation: The environmental and general situations also affect the
leader’s behavior. These include factors like:
ii. Type of organization
iii. Group effectiveness
iv. Nature of the problem
v. Time pressure
When the authors updated their work in1973, they suggested a new continuum
of patterns of leadership behavior. In this, the total area of freedom shared between
managers and non-managers is redefined constantly by interactions between them
and the environmental forces. This pattern was, however, more complex in comparison
to the previous one.
3. The Vroom-Yetton Decision Model

The Vroom-Yetton model is designed to help you to identify the best decision-
making approach and leadership style to take, based on your current situation. It was
originally developed by Victor Vroom and Philip Yetton in their 1973 book, "Leadership
and Decision Making."
No single decision-making process fits every scenario. Instead, Vroom-Yetton

offers a number of different processes and directs you toward the best one for your
situation. For example, if speed and decisiveness are required then it will likely point you
toward an autocratic process. If collaboration is what's needed, then it will nudge you
toward a more democratic process.
Researchers have found that managers are more effective, and their teams
more productive and satisfied, when they follow the model. The simplicity of Vroom-
Yetton also means that anyone – from the boardroom to the factory floor – can use it.
Although a little long-winded at times, it can be particularly helpful in new or

unusual situations. Practice using it, and you'll quickly get a feel for the right approach
to take, whether you're making a decision about a day-to-day issue or dealing with a
more complex problem.
Before you start using the model, you'll need to consider these three factors:
• Decision quality – Sometimes, making the "right" decision is critical, and you'll
need to use a large number of resources (people, time, information, and so
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on) to ensure that the action you take has been well thought through and is
of high quality.
• Team commitment – Some of your decisions will have a major impact on your
team, while others will go unnoticed. When a decision will likely impact your
team, it's best to use a collaborative process. This will improve the quality of
the decision, and you'll likely deliver a successful result faster.
• Time constraints – When the issue at hand isn't time sensitive, you have more
"space" to research your options and to include others, which will help to
boost the quality of your decision. If your time is limited, however, it may not
be feasible to include others or to undertake thorough research.
Figure 4.5.2, below, shows the Vroom-Yetton model. The framework poses seven
"yes/no" questions, which you need to answer to find the best decision-making process
for your situation.
As you answer each of the questions, you work your way through a decision tree
until you arrive at a code (A1, A2, C1, C2, or G2). This code identifies the best decision-
making process for you and your team. (Note that, in some scenarios, you won't need
to answer all of the questions.)
Figure 4.5.2 Vroom-Yetton Decision Model
The following codes represent the five decision-making processes that are
described by the model:
Autocratic (A1): You use the information that you already have to make the decision,
without requiring any further input from your team.
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Autocratic (A2): You consult your team to obtain specific information that you need,
and then you make the final decision.
Consultative (C1): You inform your team of the situation and ask for members' opinions
individually, but you don't bring the group together for a discussion. You make the final
decision.
Consultative (C2): You get your team together for a group discussion about the issue
and to seek their suggestions, but you still make the final decision by yourself.
Collaborative (G2): You work with your team to reach a group consensus. Your role is
mostly facilitative, and you help team members to reach a decision that they all agree
on.
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EVALUATE
MODULE 1 UNIT 4 — QUIZ
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UNIT 5: CONTROLLING
ENGAGE
LECTURE ACTIVITY 5.1 Overview of Controlling Process
Controlling is the process of determining that everything is going according to

plan. There is no substitute for engaged leadership. A manager simply cannot afford to
be distracted or disengaged. Small, isolated problems, when left unattended, often
grow in size and complexity, stealing more and more resources as they compound and
create other problems, until they become the sole focus of a manager’s time and
attention. A manager must constantly and consistently review the current situation in
the laboratory to ensure that there are no unattended details. The best way to avoid
big problems is to address and solve small problems before they have a chance to
become resource hogs that drain productivity and threaten accuracy. Being mindful of
the daily activities of the laboratory is one of a manager’s most important
responsibilities. By controlling the details, a manager ensures that the laboratory
functions at the highest possible level of efficiency.
EXPLORE
LECTURE ACTIVITY 5.2 Types and Steps of Controlling
In management, controlling is one of the most important functions in an

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

performance does not deviate from standards.
Controlling consists of five steps: (1) set standards,
(2) measure performance, (3) compare
performance to standards, (4) determine the
reasons for deviations and then (5) take
corrective action as needed (see Figure 8).
Corrective action can include changes made to
the performance standards—setting them higher
or lower or identifying new or additional
standards. Performance standards are often
stated in monetary terms such as revenue, costs,
or profits but may also be stated in other terms,
such as units produced, number of defective
products, or levels of quality or customer service. Figure 5.2.1 Five-Step Control Process
The measurement of performance can be done in several ways, depending on

the performance standards, including financial statements, sales reports, production
results, customer satisfaction, and formal performance appraisals. Managers at all levels
engage in the managerial function of controlling to some degree.
The managerial function of controlling should not be confused with control in the
behavioral or manipulative sense. This function does not imply that managers should
attempt to control or to manipulate the personalities, values, attitudes, or emotions of
their subordinates. Instead, this function of management concerns the manager’s role
in taking necessary actions to ensure that the work-related activities of subordinates are
consistent with and contributing toward the accomplishment of organizational and
departmental objectives.
Effective controlling requires the existence of plans, since planning provides the
necessary performance standards or objectives. Controlling also requires a clear
understanding of where responsibility for deviations from standards lies. Two traditional
control techniques are budget and performance audits. An audit involves an
examination and verification of records and supporting documents.
A budget audit provides information about where the organization is with
respect to what was planned or budgeted for, whereas a performance audit might try
to determine whether the figures reported are a reflection of actual performance.
Although controlling is often thought of in terms of financial criteria, managers must also
control production and operations processes, procedures for delivery of services,
compliance with company policies, and many other activities within the organization.
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EXPLAIN
LECTURE ACTIVITY 5.3 Requirements of Adequate Controls
1. Controls must reflect the nature and needs of the activity
All control systems should reflect the job they are to perform. Controls of the sales
department will differ from those of the finance department and these from the
controls of the purchasing department. And a small business will need different controls
from a large business.
The manager must be aware of the strategic factors in his plans and operations calling
for control and use techniques suited to them.
2. Controls should report deviations promptly

The ideal control system detects deviations before they actually occur. In any
case, the information must reach the manager as soon as possible.
3. Controls should be forward looking

Although ideal control is instantaneous, as in certain electronic controls, the facts
of managerial life include a time lag between the deviation and corrective action.
Therefore, the manager should strive for a control technique which will forecast
deviations in time for him to make corrections before the problem occurs.
That this is possible is illustrated by such forward-looking devices as cash control.

A company manager cannot very well find in April that he ran out of cash in March.
Properly, he forecasts his cash requirements to handle his payroll and other cash needs
as they arise. This approach to control can surely be applied on a much broader front
than is now the case.
4. Controls should point up exceptions as strategic points

The time-honored exception principle, that the manager should only watch for
and deal with exceptions, is not enough for effective control. Some deviations from
standards have little meaning and others have a great deal. Small exceptions in certain
areas have greater significance than larger deviations in other areas. A manager, for
example, might be concerned if the cost of office labor deviated from standard by 5
per cent, but unworried if the cost of postage stamps deviated from budget by 20 per
cent.
Therefore, controls should not only point up deviations but should pinpoint them
where they are important or strategic to his operations.
5. Controls should be objective

Management necessarily has many subjective elements in it, but whether a
subordinate is doing a good job should not be the matter for subjective determination.
Where controls are subjective, a manager’s or subordinate’s personality may influence
judgments of performance inaccurately; but people have difficulty in explaining away
objective control of their performance, particularly if the standards and measurements
are kept up to date through periodic review.
Objective control should be definite and determinable in a clear and positive

way. Objective standards can be quantitative, such as costs or man-hours per unit, or
date of job completion; they can also be qualitative, such as a better budget program
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or accomplishing an upgrading of the quality of personnel. The point is that, in either
case, the standard is determinable and verifiable.
6. Controls should be flexible

Controls must remain workable in the face of changed plans, unforeseen
circumstances, or outright failures. A complex program of managerial plans may fail in
some particulars. The control system should report such failures, and should contain
sufficient elements of flexibility to maintain managerial control of operations despite
such failures.
7. Controls should reflect the organization pattern

Organization, being the principle vehicle for coordinating the work of people
with assigned duties and delegated authority, is also the means of maintaining control;
and the manager is the focal point of control, just as he is the focal point for assignment
of tasks and the delegation of authority.
8. Controls should be economical

Control must be worth its cost. Although this requirement is simple, its practice is
often complex, for a manager may find it difficult to know what a particular control
system is worth, nor may he know what it costs. Economy is relative, since the benefits
vary with the importance of the activity, the size of the business, the expense that might
be incurred in the absence of control, and the contribution the system can make.
Since a limiting factor of control systems is relative economy, this, in turn, will
depend a great deal on the manager’s selecting for control only strategic factors in
areas important to him. If tailored to the job and the size of the enterprise, control will
probably be economical. On the other hand, one of the economies of large-scale
enterprise results from being able to afford expensive and elaborate control systems.
9. Controls should be understandable

Sometimes the manager could understand controls if he would take the time to
learn the techniques, but whether his lack of understanding results from complex
techniques or impatience in learning them, the effect is the same: The control system
will not function well.
Many so-called experts in graphs, charts, advanced statistical methods, or exhaustive
analyses fail to communicate the meaning of their control data to the manager who
should use it. “Control” staffs and departments in business often develop needed
information that cannot or will not be used by managers, because it is not simple
enough or adopted to the manager’s understanding. What may be valuable and
comprehensible to one manager may not be to another, and it is up to the manager
(or his staff assistant) to make sure that he has an adequate control system that he
understands.
10. Controls should indicate corrective action

A control system that detects deviations from plans will be little more than an
interesting exercise if it does not show the way to corrective action. An adequate
system should disclose where failures are occurring, who is responsible for them, and
what should be done about them.
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LECTURE ACTIVITY 5.3 Barriers to Successful Controlling
• Control activities may unnecessarily create an overemphasis on short term goals
neglecting long term goals.
• Control activities may frustrate employees by putting a check on their freedom.

This type of reaction tends to occur primarily where management exerts too
much control.
• Control activities may result in manipulations and tempering with the facts. It
may encourage falsification of reports.
• Control activities may hamper the creativity of the individuals which ultimately
lead to narrowing the perspectives of organizational members.
• Control activities may not show their effectiveness where proper standards have
not been set and faulty evaluation systems are there.
• Control activities may show their ineffectiveness in an environment where there

is fear of discrimination and favourism.
• Control activities go against the basic fundamental belief system or ideology of

human being then also, they won't be effective.
ELABORATE
LECTURE ACTIVITY 5.4 Methods of Controlling and Measurement of
Performance
Control techniques provide managers with the type and amount of information
they need to measure and monitor performance. The information from various controls
must be tailored to a specific management level, department, unit, or operation.
To ensure complete and consistent information, organizations often use

standardized documents such as financial, status, and project reports. Each area within
an organization, however, uses its own specific control techniques.
Management is an art as well as a science. So, management and its functions keep
evolving to stay up with the times. Controlling function of management also advances
with passing time. From the table below, describe each method of controlling (9
points). Consequently provide at least five (5) examples of each technique (6 points).
Page 70 of 72
Methods of Controlling (15 points)
Methods of Controlling Description Examples
a.
b.
Budgetary Control c.
d.
e.
a.
b.
Traditional Method c.
d.
e.
a.
b.
Modern Techniques c.
d.
e.
Performance Measurement can be best understood through considering the

definitions of the words 'performance' and 'measurement' according to the Baldrige
Criteria:
• Performance refers to output results and their outcomes obtained from
processes, products, and services that permit evaluation and comparison
relative to goals, standards, past results, and other organizations.
Performance can be expressed in non-financial and financial terms.
• Measurement refers to numerical information that quantifies input, output, and
performance dimensions of processes, products, services, and the overall
organization (outcomes). Performance measures might be simple (derived
from one measurement) or composite.
The challenge for organizations today is how to match and align performance
measures with business strategy, structures and corporate culture, the type and number
of measures to use, the balance between the merits and costs of introducing these
measures, and how to deploy the measures so that the results are used and acted
upon.
All organizations measure performance to some extent. However, there is a large
disparity among organizations in terms of which performance measures are used with
many primarily focusing on financial measures. There has however, been a general
move away from financial measurement since the early 1980's. This was accelerated in
the 1990's and 2000’s by the worldwide acceptance of business excellence models and
performance measurement frameworks that address all stakeholders' needs.
Performance measurement is one of the cornerstones of business excellence. Business
excellence models encourage the use of performance measures, but in addition and
more importantly, they consider the design of performance measurement systems to
ensure that measures are aligned to strategy, and that the system is working effectively
in monitoring, communicating, and driving performance.
Page 71 of 72
REFERENCES:
1. McPherson, R.A. & Pincus, M. R. (2011). Henry’s Clinical Diagnosis and Management
by laboratory methods, 22nd edition. P.A. United States: Saunders Elsevier
2. Garcia, L.S. (2014). Clinical Laboratory Management, second edition. Washington

DC, United States: American Society for Microbiology
3. World Health Organization (2011). Laboratory Quality Management System. France.

(WHO)
4. CLSI. Quality Management System: A model for Laboratory Services; Approved

Guideline— Fourth Edition. CLSI document QMS01-A4. Wayne, PA: Clinical
Laboratory Standards Institute; 2011
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MLS 324

COURSE LEARNING OUTCOMES

1. Integrate knowledge of physical, social, natural, chemical, humanities, and health

Dear future Medical Technologists,

Laboratory Management plays an important role in healthcare system. Achieving,

This module shall focus on the concepts of leadership, management, and

Furthermore, it shall also emphasize on the overview of basic management principles

MODULE SELF MONITORING FORM

Unit 2 : Management Planning

Unit 3 : Organizing and Staffing the Laboratory

Unit 4 : Directing and Supervising the Laboratory

UNIT 2 : Management Planning

UNIT 3 : Organizing and Staffing the Laboratory

UNIT 4 : Directing and Supervising the Laboratory

This module is divided into five (5) lecture units including:

Lecture Unit 2 — Management Planning

Lecture Unit 3 — Organizing and Staffing the Laboratory

Lecture Unit 4 — Directing and Supervising the Laboratory

Lecture Unit 5 — Controlling

LECTURE ACTIVITY 1.1 Principles of Management

When it comes to the management of an organization, there is no right or wrong

EXPLORE CONCEPTS OF MANAGEMENT

Management is required in all kinds of organizations whether they are

• According to Kreitner, “Management is the process of working with and through

• According to George R Terry, Management consists of planning, organizing,

1. A mission, or goal, that the organization or subunit expects to accomplish

Management has been described as a social process involving responsibility for

LECTURE ACTIVITY 1.3 Major Theories

Scientific management represents the first orderly efforts to examine the

Frederick Taylor (1856-1915), often called the father of scientific management,

Frank Gilbreth (1868-1924) and Lilian Gilbreth (1878-1972) perfected Taylor’s

Other important scientific management innovators include Mary Parker Follett

Many students of management have used the hierarchical chain of command

Table 1.3.1 Six rules of a bureaucracy

Looking at people and how they function in groups is another approach to

Systems Analysis Management

“Systems” is a term that permeates our language. We speak about school

EXPLAIN LABORATORY MANAGER

In addition to these very important technical responsibilities, managers must also

A manager’s primary responsibility is directing the immediate operations of the

Table 1.4.1 High-performance manager

The Manager as a Person

The Manager as a Servant

Managers must become supporters of theirs staffs if the organization is to

The Manager as a Representative

The manager is a paid representative of the owners or board of directors in both

Mintzberg’s Management Roles

Henry Mintzberg (1991), a well-known management thinker, recorded what

Table 1.5.1 Mintzberg’s managerial roles

LECTURE ACTIVITY 1.6 Management Skills and Management Levels

The term “Levels of Management’ refers to a line of demarcation between

Top Level of Management

It consists of board of directors, chief executive or managing director. The top

Middle Level of Management

Lower Level of Management

Lower level is also known as supervisory / operative level of management. It

i. Assigning of jobs and tasks to various workers.

EXPLORE CONCEPT OF PLANNING

Planning is the first and foremost function of management which involves

Planning focuses on the future of action. It specifies the objectives to be