Principles of Leadership & Management Workbook: Decision Making

This coursework workbook focuses on the principles of leadership and management, designed for a Level 3 Diploma in Business Administration. The workbook covers key learning outcomes including understanding effective decision-making, leadership styles and models, the role and functions...Read More

COURSE WORKBOOK FOR
Principles of Leadership & Management
LEVEL3 DIPLOMA IN BUSINESS ADMINISTRATION
LEARNING OUTCOMES
1. Understand the principles of effective decision-making
2. Understand leadership styles and models
3. Understand the role, functions and processes of management
4. Understand performance measurement

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HOW TO USE THIS WORKBOOK?
 Read each question carefully and highlight key words such as analyse, describe,
discuss, explain, identify, justify, and recommend with reasons and state. Please refer to
the ‘Glossary of Key Words’ below
 There is not always a single correct answer for a question and marks will be awarded
for all valid responses
 Penalties for contravention of the rules relating to plagiarism and collaboration -
Please refer to college’s plagiarism policy provided in the student handbook
CONTENTS
Decision Making
Page 3 - 5
Leadership Styles
Motivation Theories
Roles & Functions of Management
Management & Leadership Theories
Performance Management
Management Information Systems
LEARNER DECLARATION
FULL NAME
STUDENT
ID
BATC
H
I declare that this
project is my own
work and that I have
correctly
acknowledged the
work of others.
SIGNATUR DATE

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E
Meaning Example
Analyse
Separate information into
components and identify their
characteristics.
Discuss the pros and cons
(advantages and disadvantages) of
a topic or argument and make
reasoned comment.
A chair is used for sitting on. It can be used for
standing on to reach something but its most common
purpose is to be sat on. It normally comprises a seat; a
backrest and is supported by legs.
Most chairs have four legs spaced to give stability to
the chair. Chairs can have three legs, again it is the
positioning of the legs under the seat which provides
the stability and makes a chair fit for purpose.
Chairs can be made in many different styles and use a
variety of materials. The design and material choice
are reflected in the cost of the chair. Traditionally
chairs were made of wood however there is now a
vast array of materials used in chair production such
as metal, plastic, rubber and fabric. The material used
will affect the weight of the chair. Chairs are often
used alongside a table, for example whilst eating or
working. They are used to support body weight in a
sitting position. The height of a chair is very
important as if it was too high or too low it would not
function at a table and may be uncomfortable.
Evaluate
Make a qualitative judgement
considering different factors and
using available knowledge /
experience / evidence
The chair I am considering has several strengths. It is
made from a material which is hardwearing and with
maintenance and care this chair could last me a
lifetime. If the chair got marked, chipped or damaged
it could be remedied by me, at home. This would
avoid having to find a specialist and having to travel
to or haul the chair a great distance, at great cost.
Another strength the chair has is its design. Because
the back rest is moulded to an adult spine, it is
possible to remain sitting on it for hours without
feeling any discomfort.
The main weakness of the chair is its colour. It is
made from a light wood and as a long-term
investment this may not compliment the shades and
style of the room, as it develops. Also, there is some
intricate design on the back rest which could make
cleaning difficult. This could result in a build-up of
dust which would look unsightly.
Explain
To give account of the purposes or
A chair is used for sitting on. It normally comprises a
seat; a backrest and is supported by legs. The legs are
positioned in such a way to balance the chair, so that

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reasons when it is sat upon it does not collapse or become
unstable. Chairs can be made in many different styles
and use a variety of materials. The design and
material choice are reflected in the cost of the chair.
Chairs are often used alongside a table, to support
body weight at a convenient height whilst doing
something at the table. Chairs can be produced in
different sizes to make them suitable for individuals
e.g. a child.

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GLOSSARY OF TERMS
Decision making process
We make decisions all and every day. What to wear, what we have to do at work, what do to
with the children when we pick them up from school and so on and so on… let's face it - our
lives are full of decisions. Some we can make on autopilot as they are simply not that
involved, while others take careful planning and thought processes to ensure we make the
best decision possible. Usually this is because the decision that needs to be made is one that
has significant impact if we make the incorrect one.
1. Defining the Problem 3. Develop Potential Alternatives
The first step is to define the problem, or we
could say, 'What are we trying to fix?' For
our purposes, we will use someone who
wants to purchase their first home, a pretty
big step in a person's life and something
that we have to give a lot of thought to in
order to make sure we pick the right house.
Just wanting to purchase your first home is
not really a problem; thus, the problem
needs to be defined more. So, in this case,
the problem is we are tired of renting an
apartment and want a place of our own so
we can get some equity and not just pay
rent each month and get nothing from it.
Here you will be looking at what
alternatives are available to help you get to
your goal. Since we know our limiting
factors, we can now develop alternatives to
help us address those factors and help us
with our problem. For example, we could
review the following potential alternatives:
 Stay where you are and not buy a
home (though that's really not solving
the problem)
 If the house you really like is more
money than you can afford, you can cut
back on other expenses or get a
roommate to help pay the monthly
mortgage.
 You could purchase a bike and ride
to the bus stop if it's not close enough
2. Identifying Limiting Factors 4. Analyze the Alternatives
Next, we have to identify limiting factors.
For this step, we need to review all the
factors that could stop us from actually
solving the problem - basically, things that
would get in our way to stop us from fixing
the issue that we want to fix. For our
purposes, we will assume you have the
money to put down and are ready to become
a homeowner. Now, let's say we have the
following limiting factors:
 You can only afford £600.00 a
month for a mortgage payment
 You do not own a car and have to
take the bus to work, so the house needs
to be near a bus station
You will take each alternative you have and
try to determine, in order, what is the most
feasible to the least feasible.
 You might not be able to find a
roommate you can actually live with
 You might realize that two
bedrooms is simply not going to work
for the space you need
 Cutting back on expenses is
something you could do and work with
while you find ways to solve the other
issues as time goes by

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GLOSSARY OF TERMS
 You need three bedrooms and two
bathrooms
5. Implement the Alternative

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HOW TO USE THIS WORKBOOK?
Thus, if you start looking for homes and realize the one you want that fits all your criteria
except for monthly mortgage is higher than you would like, your best alternative is to cut
back on your expenses to afford the home.

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DECISION MAKING
Read the following case study and answer the questions in the next page
Case Study
Manuel wants to open a restaurant. The first step is to define the goal. He realises that he
needs a physical location for his kitchen and a dining room for his customers. Therefore,
Manuel must decide on a way to acquire a space for his restaurant.
Now that Manuel has defined the goal, he needs to collect the relevant information. This is
to identify his options. He needs to collect information to make an informed decision.
Manuel will turn to research to find the information. It's also important that he knows what
type of information is relevant. He'll need information on restaurant spaces and real estate
options, such as purchasing and leasing. He'll also want information on his target market.
Once Manuel has collected all the relevant information, he can determine his alternatives.
Manuel could rent a building or purchase a building for his restaurant. He also must
consider different locations. After Manuel has identified all his options, he needs to analyse
them. He will do this considering his overall goals, the feasibility of each alternative and
the costs and benefits of each alternative. For example, Manuel may want to open a trendy
fine dining establishment catering to young, urban professionals
He also must consider feasibility. This means he need to weigh positives and negatives of
each options. Manuel may not have the funds available to buy or lease space in the
trendiest part of the city. One of the most important things he will do is weigh the relative
costs and benefits of each alternative. For example, there will be advantages and
disadvantages in owning a building compared to leasing space. The costs involved in
owning may well outweigh the benefits for a new restaurant. He’ll pick the most feasible
alternative that meets his goal and has the most benefits for the least cost. For example, he
may opt to lease a building in an old but trendy area of city that is undergoing an urban
renewal with up-and-coming young professionals as its occupants. This alternative reaches
his target market better than suburban locations and is cheaper than the rent in the city.
The next step for Manuel is simply to implement his decision. He'll find a location in his
target area that's for lease and attempt to negotiate lease terms beneficial for him. After
leasing the property, Manuel can start getting it ready for his new restaurant.
The final step in Manuel's decision-making process is to review and assess his decision.
Manuel will review his decision. He will assess his choice against his goals to figure out
whether the decision was feasible and determine the costs and benefits arising out of the
decision. For example, Manuel will assess whether the revenue generated by his restaurant
can support the rent and whether the location brings in his target market.After his
assessment, Manuel will adjust his decision as needed. For example, if he determines that
his rent is too high given his revenue, he may opt to seek a different location after his
current lease expires or raise his menu prices.

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Explain the importance of Manuel defining the objectives, scope and success
criteria of the decisions to be taken? 1.1
For all the managers such as Manuel it is very important to define the objective, scope and
success criteria of decisions manually as it can help the staff members to understand all their
job responsibilities properly. Apart from this it will be beneficial for motivating the
employees because if this type of important information will be shared with them then it will
help to increase their work quality.
Assess the importance of Manuel analysing the potential impact of decision
making? 1.2
The decisions which are taken by Manuel were highly effective and left positive impact
upon the business idea which is formulated for the attainment of goals. The potential impacts
which will left by the decision making are higher growth of the revenues and increment in
the sales of restaurant.
Explain the importance of Manuel obtaining sufficient valid information to enable
effective decision-making? 1.3
Manuel used effective and sufficient information for the purpose of effective decision
making. It was very important because it has resulted in development of business and
attainment of all the goals which are formed by Manuel for the restaurant.
Explain the importance of Manuel aligning decisions with his restaurant’s
objectives, values and policies? 1.4
In order to reach the long term business goals it is very important for the owner or manager
of an organization to align all the decisions with objectives, values and policies as it will be
beneficial to form strategies for the attainment of long term business goals successfully.
Manuel has also done the same which has resulted in the development of restaurant.
Explain how can Manuel validate information used in the decision-making
process? 1.5
For the purpose of validating the information which is used by Manuel in decision making
he would have conducted appropriate tests and used research to analyze that the information
recorded for business is appropriate or not.
Explain how can Manuel address issues that hamper the achievement of targets and
quality standards? 1.6

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DECISION MAKING
For the purpose of address the issues that hamper the achievement of targets and quality
standards Manuel can find the roots which are causing the problems. Afterwards effective
decisions for the resolution of the challenges could be taken properly.

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Leadership styles & its fit in the workplace 2.2
As a leader, it's important that you find and develop a leadership style that works best for the
type of business environment that you are in. Let's take an in-depth look at several styles of
leadership including authoritative, participative, laissez-faire, situational, and bureaucratic;
and what type of workplace environment is the best fit for each. Can you recall a time that
you may have witnessed a drill sergeant barking orders to members of the military? It was
clearly evident that the drill sergeant was in complete control and in a position of authority.
This is an example of the authoritative leadership style, which can be defined as a style
where a leader has total control over subordinates (those who report to the leader) and is the
sole authority figure that makes decisions with minimal or no input from others. When
people participate in something, it means that they are involved with others or with a specific
thing. The participative leadership style is when a leader involves subordinates and others
when making important decisions for a business, but the leader has the final say in the
decision. This style of leadership centers around the fact that although others may participate
and give their opinions, the final decision still lies with the leader. The leader acts as a
facilitator and supplies any materials or resources the subordinates may need to complete the
task. The characteristics of the laissez-faire leadership style include having the ability to trust
those around you, believing in a hands-off approach, and having little to no anxiety issues.
Below are three scenarios which demonstrates various leadership styles. You must identify
the leadership style used in each situation and evaluate the suitability and impact of different
leadership styles in different contexts
Scenarios Leadership style, its suitability & impact
Imagine that you are employed as the
manager of a software company. You and
your team have been tasked with designing
a program to help children learn to read and
write. You have decided that each employee
has the right to create their own programs,
as long as they meet the requirements of
educating children. You have provided no
other rules or regulations, and the team does
not have to consult you at all unless they
have questions
The leadership style in this scenario is
Lassie Faire and it is suitable for it because
with the help of it all the employees will
work productively and try to accomplish the
goals which are related to their jobs. It will
leave impact upon their work as they will
not have any superior to guide so possibility
of errors is also high.
A forklift has its forks raised in the air to
put some material in the racks. An
employee darts under the forks (safety
violation) so he can get back to his
workstation in time. As the supervisor you
tell him very sternly not to ever do that
again and notes it in his log.
The leadership in this case is autocratic
which is suitable to it because it will reduce
the possibility of negative events in future
as the employees are not allowed to work
according to them. It may leave impact
upon motivational level of employees as
they have to follow the command of
leaders.
You lead a team of research scientist
working on new ways to use plastic.
The leadership style in this scenario is
democratic because the team members are

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Although the team discusses the merits of
each ideal and project, you retains the final
decision making authority.
allowed to share their ideas and opinion
with the leaders. It is highly suitable
because it helps to keep the employees
motivated and inspired to work
productively. It may leave impact upon
decision making because it will take time to
listen views of all the team mates and then
formulate the decision.

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DECISION MAKING
Maslow’s Hierarchy of Needs
Needs theories attempt to identify internal factors that motivate an individual's behavior
and are based on the premise that people are motivated by unfulfilled needs. One of the
most popular needs theories is Abraham Maslow's hierarchy of needs theory. Maslow
proposed that motivation is the result of a person's attempt at fulfilling five basic needs:
physiological, safety, social, esteem and self-actualization.
 Physiological needs are those needs required for human survival such as air, food,
water, shelter, clothing and sleep.
 Safety needs include those needs that provide a person with a sense of security and
well-being. Personal security, financial security, good health and protection from
accidents, harm and their adverse effects are all included in safety needs.
 Social needs, also called love and belonging, refer to the need to feel a sense of
belonging and acceptance. Social needs are important to humans so that they do not
feel alone, isolated and depressed. Friendships, family and intimacy all work to fulfill
social needs.
 Esteem needs refer to the need for self-esteem and respect, with self-respect being
slightly more important than gaining respect and admiration from others.
 Self-actualization needs describe a person's need to reach his or her full potential.
The following story of John will help you understand Maslow’s Hierarchy of Needs in a
simpler context.
John is a young boy who just started his summer vacation and cannot wait to go outside
and play with his friends. As he walks towards the door, he hears his stomach growl and
realizes that in his excitement he forgot to eat. John knows that he won't be able to have fun
playing outside if he is hungry, so he stops off at the fridge and grabs a bite to eat, as well
as a bottle of water to take with him outside in case he gets thirty.
John has now satisfied his basic physiological needs.
Once outside John notices a creepy individual in a van sitting down the street who is
offering his friends some bottled water to drink. Just then, John realizes he left his bottle of
water sitting on the kitchen counter. John sure is thirsty, but this man makes him feel
unsafe. Unfortunately, the need to satisfy his thirst is stronger than his need for safety, so
John approaches the van and asks the man for some water to drink. When the man turns
around, John sees that the man is none other than his teacher Mr. Jenkins. John's need for
safety was fulfilled once he recognized that he was no longer in danger, but even if this
need was not met, John still would have been able to fulfill the lower-level physiological
need by getting water (even if the guy did not turn out to be someone John knew)

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After playing outside for a few more hours with his friends, which satisfies John's social
needs, a new kid on the block joins them. John's friend Mark introduces the new kid as
Bruno. Bruno starts to bully John, which makes John feel unsafe. Even though John wants
to continue to fulfill his social need by hanging out with his friends, he chooses to go back
inside because his need for safety overrules his social needs. When John gets back inside,
he reflects on how much self-respect he has and knows that he did not deserve to be treated
like that by Bruno. He gets bored quickly and feels left out, so he heads back outside.
John's social needs become more important than his esteem needs; while John knows
Bruno will continue to insult him, he cares more about fulfilling his social needs by
hanging out with the larger group.

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LEADERSHIP STYLESPAGE
John’s story - Continued ...
John really wants to be the most popular kid in his group; this is John's self-actualization
need. He sees that goal getting closer when Bruno starts to pick on Mark, who currently
holds the title of 'most popular'. John knows he could join Bruno and show that he is cooler
than Mark and thus, more popular. However, John fears this may cause Mark to dislike
him, and John's need for esteem and respect are more important to him than his need for
self-actualization. So, he asks Bruno to stop teasing Mark. John knows there will be other
chances to steal the title of 'most popular,' which won't tarnish his reputation as a nice guy.
Maslow’s Hierarchy of Needs
Frederick Herzberg studied the connection between workplace motivation and employee
attitude. His research led him to develop the two-factor theory, which is based on the
assumption that there are two sets of factors that influence motivation in the workplace by
either enhancing employee satisfaction or hindering it. The first of the two is called
hygiene factors, which cause dissatisfaction in the workplace, are extrinsic to the work
itself, and are linked to things such as compensation, job security, organizational politics,
working conditions, quality of leadership, and relationships between supervisors,
subordinates, and peers. The second factor is motivators or satisfiers. These are linked to
employee motivation and arise from intrinsic conditions of the job itself. Factors for
satisfaction include responsibility, job satisfaction, recognition, achievement, opportunities
for growth, and advancement.
Applying Herzberg's Two-Factor Theory
One would think that an easy way to improve employee motivation would be to decrease
things that cause dissatisfaction and increase those things that cause satisfaction. However,
it is not that simple. Herzberg argued that remedying the causes of dissatisfaction does not
lead to satisfaction. Nor will adding satisfiers eliminate dissatisfaction. That is because the
opposite of satisfaction is no satisfaction, and the opposite of dissatisfaction is no
dissatisfaction.
Frederick Herzberg developed the two-factor theory. Frederick Herzberg While I
understand Herzberg did not put this into the simplest of terms, a clearer explanation of this
idea can be seen in this scenario: You work in an office where the roof is constantly
leaking, the computers are always shorting out, and you never seem to be able to catch up
on your work because of it. Suddenly, you are informed that you will be receiving an
award for meeting last month's sales quota. The award, which is a satisfier, would not
eliminate your dissatisfaction with the inadequate working conditions. While you might be
happy for a short moment when you receive your award, once you return to your office and
realize that the roof is still leaking, your computer doesn't work properly, and you're still
behind, you will quickly remember how unhappy you are a manager must be sure to
provide sufficient hygiene factors while at the same time building satisfiers or motivators
into employee jobs. In essence, hygiene factors are necessary to be sure a subordinate is not
dissatisfied, and satisfiers are needed to motivate an employee to work towards a higher
level of performance. Much like making your peanut butter and jelly sandwich, it's all
about finding the right balance.

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To begin eliminating things that are causing employee dissatisfaction, the manager needs to
fix problems related to things such as ineffective policies, noncompetitive wages, and job
insecurity. Then, a manager should begin to foster a supportive culture, provide meaningful
and challenging work, and offer effective leadership, showing respect and dignity for
subordinates. Each of these activities helps a manager to reduce job dissatisfaction and make
the first step towards motivation.
To create satisfaction, a manager needs to provide job enrichment by addressing what
motivates employees to do their job, then finding out how to make it better and more
satisfying for the employee. This is accomplished by designing jobs to be challenging and
rewarding. Employees should be given opportunities for growth, provided professional
development activities to ensure achievement, be given more responsibility, and
acknowledged for their contribution to the organization and team. Essentially, employees
should be given the opportunity to excel at what they do best.
As a manager, you should be sure to take the time to get to know your employees. Find out
why they are happy and why they are dissatisfied. Offer your employees the opportunity to
take on additional challenges and reward them accordingly. In essence, make sure you give
your employees their wings.
Comparison of Herzberg and Maslow Models
Both the models are dealing with the same problem. Maslow talks
in term of human needs whereas Herzberg talks of goals which
satisfy those needs. Maslow describes various factors which impel
a person to behave as he does whereas Herzberg tells us what
makes a man satisfied or dissatisfied with his job, which depends
very much on factors available on or off the job. Both models
represent the two sides of the same coin.
Maslow is helpful in identifying needs or motives and Herzberg
provides us with insights into goals and incentives that tend to
satisfy these needs. If we know the high strength needs (Maslow
Theory) of individual which we want to influence, then we should
be able to determine what goals (Herzberg) we could provide in the
situation to motivate those individuals. On the other hand, if we
know the goals of the people, the want to satisfy, we can very well
predict their high priority needs. Hersey and Blanchard have
combined these two things (needs and goals).
Physiological, safety, social and part of the esteem and status needs
under Maslow Model are all hygiene factors under Herzberg
model. The esteem needs are divided because there is a different
between status and recognition. Status may be classified with
physiological, safety and social needs as a hygiene factor while
recognition is classified with esteem as a motivational factors.
Abraham Maslow
Frederick Herzberg

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MOTIVATION THEORIES
Keith Davis (1964) has shown
integrated relationship between
Maslow's theory and
Herzberg's theory as shown
below:
Maslow’s Hierarchy of Needs Herzberg’s Two Factor Theory
Self-Actualisation
Mot
ivat
ors
Work itself
Achievement
Possibility of growth
Responsibility
Advancement
Recognition
Status
Esteem Needs
Social Needs
Safety Needs
Hyg
iene
fact
ors
Interpersonal relationship with
supervisors and subordinates
Technical Supervision
Company policy
Job Security
Working Conditions
Salary
Physiological Needs
Analyse theories and models of motivation and their application in the workplace
2
.
3

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Maslow Hierarchical needs represent the pyramid of needs where satisfaction of each
lower need motivated the individual to satisfy higher needs. In practical life if the
physiological which are basic needs that include food, shelter and clothes is not satisfied
then it can not motivate an individual to think for other needs. Similarly, an organization
can carry out effective processing if it focuses on each and every need. Physiological
need: Here the manger need to offer desirable remuneration by abide by the laws like
minimum wage rate. Thus, the fair wages needs to given as per the roles and responsibility.
Safety needs: Security must be provide in terms of the work because an individual prefer
working in an organization if they get benefits like pension plan, medical facility and
insurance.
Social need: The employer need to maintain affirmative relationship with employee ion
terms to provide them constructive feedback and give monetary as well as non monetary
benefits like rewards, incentive, promotion and appraisal on the basis of their effort.
Esteem needs: Employee at this stage seek for the respect so on the basis of efforts and
experience the should be offered the viable position in order to represent other members.
Self actualization: This is the ultimate goal that the person need to acquire so organization
need to have growth and development opportunity in order to make the person satisfies by
gaining high position.
Herzberg’s Two Factor Theory involve the role of motivation and hygiene factor in order
to motivate and satisfy the people. It explains that the opposite of job dissatisfaction is not
job satisfaction so the manager of company need to control the hygiene factors. This is
caused due to the issue related to working relation and inefficient relation with coworker.
Although these factors can leads to dissatisfaction but still less likely affect the turnover
tare. On other side absence of motivation factor that include growth, advancement and
development can instigate the individual to switch the organization. So the manger need to
offer suitable growth opportunity.
Functions of Management
Management involves far more than just telling others what to do. Before any of you decide
that you think you can do your boss's job, let's take a look into more of what a manager does.
The major functions that a manager completes can be categorized into four different
functions known as planning, organizing, leading, and controlling. For some of us, we only
see the final two - leading and controlling - but you should know that for every managerial
behavior you do see, there is an equal amount that you do not. Behind the manager's closed
door, he or she spends a good deal of his or her time planning and organizing, so that he or
she can effectively carry out the functions of leading and controlling.
Given below is the example of Melissa, a Marketing Manager, exercising various functions
of management in order to increase the sales.
Planning Organising
Melissa needs to first spend time mapping
out the necessary steps she and her team of
sales representatives must take so that they
This step requires Melissa to determine how
she will distribute resources and organize
her employees according to the plan.

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can increase sales numbers. These steps
might include things like increasing
advertisements in a particular region,
placing some items on sale, increasing the
amount of required customer-to-sales rep
contact, or contacting prior customers to see
if they are interested in purchasing
additional products. The steps are then
organized into a logical pattern so that
Melissa and her team can follow them.
Melissa will need to identify different roles
and ensure that she assigns the right amount
of employees to carry out her plan. She will
also need to delegate authority, assign work,
and provide direction so that her team of
sales representatives can work towards
higher sales numbers without having
barriers in their way.
Leading Controlling
In this step, Melissa spends time connecting
with her employees on an interpersonal
level. This goes beyond simply managing
tasks; rather, it involves communicating,
motivating, inspiring, and encouraging
employees towards a higher level of
productivity. Not all managers are leaders.
An employee will follow the directions of a
manager because they have to, but an
employee will voluntarily follow the
directions of a leader because they believe
in who he or she is as a person, what he or
she stands for, and for the manner in which
they are inspired by the leader.
In this step the manager evaluates the
results against the goals. If a goal is not
being met, the manager must also take any
necessary corrective actions to continue to
work towards that goal. For example, if
Melissa noticed that her team was behind in
their sales half way through February, she
will need to put in place necessary
provisions to ensure the second half of
February is twice as productive as the first
half so that by the end the month, the
original sales goal will be met or exceeded.

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MOTIVATION THEORIES
Below are questions to test your understanding of manager’s responsibilities for
planning, coordinating and controlling work
3
.
1
Scenarios Please choose the right
answer
Pick the answer choice that
represents an example of
organizing:
✔ Tom is a project manager at an IT company
and is determining how he should distribute
resources and allocate roles.
☐ Tom is a manager at a large PR company and
he is trying to determine which people he
should hire to work on his company's new
promotional line.
☐ Tom is a director at a large IT company and he
is trying to determine how his employees have
performed in the past quarter.
☐ Tom is a lawyer at a large PR company and is
preparing all of his co-workers for depositions
that they will have to face.
How is Tom’s role helping organisation to achieve its goal?
Tom determine the allocation of resources properly which facilitate the organization to
achieve its goals.
Daniel manages a team that has
missed their production goals for
the past three months. After
reviewing each employee's
performance record, Daniel
adjusted the sales goal to take
additional quality control
measures into consideration. Why
is this an example of controlling?
☐ Because Daniel is micromanaging his
employees.
☐ Because somebody will likely get fired as a
result of this analysis.
☐ Because Daniel acted as a leader and took
responsibility for the project.
✔ Because Daniel looked at team results and
took appropriate corrective action.
How did Daniel’s action contributed to the team and organisational objective?
Danial looked at the results of team and took effective actions which has contributed in
organizational objective's attainment.

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MOTIVATION THEORIES
Matthew manages a mobile phone retail store. He has set a specific
sales goal for his team to achieve by the end of the month.
Matthew created a detailed action plan to help reach the sales goal.
Which managerial function has Matthew performed?
☐ Organizing
☐ Distributing
✔ Planning
☐ Creating
How did Mathew’s action contributed to the store’s objective?
Mathew's manages the mobile store whose functioning is based on strong and
predetermined plan that includes the imposition of target for the staff which they need to
attain within specific duration. This contribution in the success accomplishment of
objective by enhancing the footfall and carry out the process successfully.

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MOTIVATION THEORIES
Role of Leaders & Managers in organisational success 3.2
Successful organizations need both inspirational leaders and sound managers. In order to
achieve increased and sustainable results, organizations need to execute strategies and
engage employees. Success is measured by analyzing where the organization is in regards to
its goals and its mission. Organizations need to think about the future of their business and
think of better ways to be successful. Organizations can either view their challenges as
competition with others or as opportunities to push them closer to reaching their full
potential. What route they choose to take determines if they are successful or not.
With this in mind, here are four steps leaders can use to ensure that their organizations are
not simply reacting to what challenges come their way but that they have a clear
understanding of what their organization needs to do to succeed:
Set clear goals Define plans that fit the organization
An organization's goals should be clear
and in line with the mission. The goals are
used to measure at certain intervals
whether the organization is moving in the
right direction.
An organization needs to develop a unique
plan and to remain in line with its own
mission and goals. Many organizations have
failed, not because of poor leaders or
managers, but because their plan did not
align with the mission or goals that they set.
Don't let external factors shift focus Communicate and review work progress
often to keep everyone on track
External factors can, certainly, effect or
even justify changes to the goals from time
to time. However, external factors should
have little or no effect on the organization's
objectives towards achieving its core
mission.
While this should be a given, the reality is
departmental and team silos are still the
norm in many organizations today. For an
organization to succeed, it's critical that
mangers break down these silos and make it
easier for employees to point out potential
problems or issues as well as encourage
those in senior level positions to be more
forthcoming about possible changes being
discussed and to address new realities and
conditions in the market.
Explain how managers ensure that team objectives are met?
The managers are responsible to mange the data of the team members which involve the
evaluation process based on which employee come to know about their individual and work
to overcome the chances of weakness. Along with that coordination, adequate
communication and cooperation among team member help to generate transition where
everyone make effort to attain overall objective.

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ROLE & FUNCTIONS OF MANAGEMENT
Below questions test your understanding on how leaders and managers role in meeting
objectives of the team and goal of the organisation.
Questions Pick the most suitable
answer
A capable leader provides which
of the following to his employees?
☐ Insight
✔ Direction
☐ Resources
☐ All of these answers are correct
Why do organizations set goals? ☐ To comply with state goal-setting regulations
✔ They are used to measure, at certain intervals,
whether the organization is moving in the right
direction
☐ To give the employees something to do
☐ They can be used by the managers instead of a
mission statement
Which of the following are the
steps leaders can use to ensure
their organization's success?
☐ Do not let external factors shift the focus
☐ Define plans that fit the organization
☐ Set clear goals
✔ All of these answers are correct

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Successful organizations need both
________ leaders and _______
managers.
✔ Inspirational, Sound
☐ Inspirational, Tough
☐ Tough, Sound
☐ Capable, Capable

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ROLE & FUNCTIONS OF MANAGEMENT
Functions of Management
Age-old debates surrounding leadership posits questions like, 'What characteristics make
someone a leader?' and 'Are leaders born or made?' There have been many theories
concerning what makes a leader a leader - the most widely known leadership theories are
trait theory, behavior theory, contingency theory, and transformational theory.
Given below is the example of Melissa, a Marketing Manager, exercising various functions
of management in order to increase the sales.
Trait Theories Behavior Theories
Some theorists believe that there are certain
traits, or personal characteristics, that
leaders have and that others do not. These
traits include:
 Charisma
 Intelligence
 Self-confidence
 Determination
 Integrity
 Energy
 Sociability
Trait theory is useful in identifying
leadership potential in people. Many
organizations also use this principle to help
make hiring decisions; however, this theory
has been highly criticized for its simplicity
and exclusion of many other factors.
Behavior theories focus on what leaders do,
as opposed to who they are. Leadership
behaviors can be divided into two
dimensions: task-oriented behaviors and
people-oriented behaviors. Some leaders are
more concerned with getting the tasks at
hand completed successfully. Other leaders
favor creating solid interpersonal
relationships with their employees. For
example, if you have a high concern for the
task and achieving results coupled with
little concern for maintaining relationships
with people, you would be an authority-
obedience manager. Consider a time when
you were in a leadership position - what
was your leadership style?
In my leadership position I have given more
preference to the relationship or people
oriented leadership style where I was able
to maintain affirmatively relationship with
employees. This lead to the increase
participation of employee by giving
significant opinion which led to divergent
thinking.
Contingency Theories Transformational Theories
Contingency theories suggest that leaders
behave differently depending on the
situation.
For example, a leader may use a team
approach on a day-to-day basis; however,
during periods of crisis, he or she may
choose to become more authoritative. The
most effective leaders are those who can be
Transformational theories are concerned
with how leaders motivate, stimulate, and
inspire others. Nearly synonymous with
transformational leadership is the
personality trait charisma. They use this
trait to inspire others, and they set high
moral standards and high expectations for
their followers. These leaders have a clear
vision, and they empower others to reach

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ROLE & FUNCTIONS OF MANAGEMENT
flexible and adapt to a wide variety of
situations.
Can you think of a time when you had to
change your leadership style to fit the
situation?
As an organization operation in dynamic
environment so in order to maintain the
balance I was flexible in terms of adopting
different leadership style. Like, due to the
presence of intensive competitive and to
cope up with that I was more inclined
towards Autocratic leadership style which
leads to centralized decision making and
team members were forced to adopt new
working patter or regime by using advance
technology.
their full potential. In essence,
transformational leaders are able to
transform followers into better people.
Some well-known transformational leaders
are Gandhi and Oprah Winfrey.

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Below questions test your understanding on how leaders and managers role
in meeting objectives of the team and goal of the organisation. 3.4 3.5
Questions Pick the most suitable
answer
Adam is a CEO of a major
healthcare organization. He is
typically calm, cool, and collected
and likes to take the time to
evaluate all of his options before
making a decision. When Adam
went to work on Monday, he was
faced with survivors being
brought in from three different
traumas (a plane crash, a high-rise
fire, and a multi-vehicle accident).
He was forced to become more
authoritative and to quickly
delegate tasks to some of his more
senior staff, such as setting up a
mobile trauma unit in one of the
parking lots. This is an example of
what leadership theory?
✔ Contingency
☐ Trait
☐ Behavior
☐ Transformational
Richard Branson, the founder of
the Virgin Group, is known for
having the ability to help his
followers to be able to look at old
problems in new ways. He also
pays attention to his followers'
needs while inspiring them to put
forth additional effort in order to
achieve the goals of the group.
Richard Branson is an example of
a _____ leader.
☐ Consistent
✔ Transactional
☐ Situational
☐
Transformational
Analyse the strengths and weaknesses of each theories identified above.
Contingency
Strength: Being flexible theory it can easily cope up with the changes and manages the
internal smooth functioning. It simply enhances decision making skill.
Weakness: This is considered as complex approach because there is no guarantee to sustain
in the dynamic environment.
Trait
Strength: Within this theory all the necessary skill to be an effective leaders are inculcated
within an individual by birth.
Weakness: There is no guarantee to predict the future behavior in order to overcome the

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HOW TO USE THIS WORKBOOK?
external pressure.
Transaction
Strength: It create the feasible target that motivate the employee to attain and gain success.
This favorable lower down the unnecessary cost of company.
Weakness: This is the rigid approach which mitigate the chances of internal creativity.
Transformation
Strength: Here the vision of leader is to constantly improve the practices of employee and
functioning of an organization.
Weakness: At times adopting changes can be disruptive if leads to immense risk due to
which in involve more, time, effort as well as value.
Assess how Adam’s skills is helping to make improvements to his organization.
Adam is the flexible and determinant CEO Of healthcare organization who adopts the
Contingency laureateship style which leads to the flexibility in terms to overcome the
dynamic situation. This suitable makes improvement in an organization because it involve
the challenging team that remain competitive to overcome the hurdle and maintain
systematic pace.

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What are Key Performance Indicators (KPIs) 4.1 4.3 3.3
Key Performance Indicators, or KPIs, are measurable values that a business track in order to
determine how successful it is at reaching its goals and objectives. These will vary based on
a business' goals, industry, or departments. KPIs should be SMART. That is they should be
specific, measurable, achievable, realistic, and timely.
Some common KPIs used by different departments include new revenue (sales), cost per
acquisition (marketing), average resolution time (customer service), and employee turnover
(human resources). Key Performance Indicators are important in a business environment for
several reasons. First, they help manage employee and business performance by identifying
what's working and what's not. Second, they help the focus stay on business objectives,
either by fulfilling them or modifying them. KPIs are also useful for improving the morale of
employees, who can see the measurable results of their work and take pride in it.
Read the scenario and write the mission, goal and objective of the business. Also, set a
departmental objective and KPI for the sales department (Please refer to the example)
Scenario Mission Statement
Greg runs a restaurant in
Croydon, South London. It
has become one of the
popular restaurant in town
and is well known for its
special soup.
Greg’s plan is to improve the
customer focus and increase
the sales by 20% this year.
His long term aim is to
achieve 15% of the market
share in the next 10 years.
His ultimate aim is to
become one of the leading
restaurant group in the UK.
The mission of restaurant that is run by Greg is to maintain the
customer experience so that they can reach out potential
consumer and enhance the footfall of company
Goal
The long term goal of Greg is to make the leading restaurant of
London which aim to enhance the market share by 15% within
10 years.
Objective
The objective of company to to improve the sales by 20%
within current year. For this they need to constantly analyze
the taste of consumer and can use digital media like website to
encourage the response.
Customer Service Department Sales Department
Departmental Objective
Provide excellent customer
service and achieve 100%
customer satisfaction
Enhance the footfall of
restaurant by understanding
preferences and taste habits
of consumer.
KPIs
1. All customer complaints
to be resolved within 24 Hrs.
2. All customers to be
served within 5 minutes of
arrival
Maintain interpersonal skill
and ask for the constructive
feedback Reduce the waiting
time of customer

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Difference between outcome and output 4.2 4.6 3.6
Outputs: An output is the physical result of your work. If you consider the KPI’s set in the
Greg’s scenario, if the customer waiting time do not exceed 5 min, more customers can be
served. The total number of customer served is an output.
Outcomes: Outcomes record the changes that occur as a result of your function. If you
consider the previous example, the changes to the department that may happen due to the
reduced waiting time may be “improved customer satisfaction”.
Explain the distinction between output and outcome?
(E.g. Staffing levels, Allocation and procurement of resources and materials, Inability to
gain loans or financial backing from investors, banks, etc.)
Output refers to the end result that determine the processes of firm like optimum allocation
of resources and managing the budget is the output. Where outcome represent the changes
like allocation of high incentive motivate the staff to attain target.
Explain the features of performance measurement system?
(E.g. information needs to be quantitative, measurable, easily understood by everyone using
the system, visible and appropriately used, measures outputs as well as inputs, encourages
trust between parties using the system, measures only key indicators, is easy for the
collection and utilisation of information and data)
Performance measurement system is the measure that help the manager to indicate whether
all the activities are carried out effectively by reducing the chances of deviation. It involve
the collection and effective implementation of information to reach out to better output.
Explain the possible operational constraints imposed by budgets in Greg’s aim?
(E.g. Staffing levels, Allocation and procurement of resources and materials, Inability to
gain loans or financial backing from investors, banks, etc.)
There are various sources of funds so selecting the best possible ones can be the constraint
because each source has certain advantage and disadvantage. Additionally, the aim of Grey
is to capitalist the market share of company. Along with that the other constraint is to
manage the staff by motivating them to adopt the changes in order to enhance organization
size.

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You've probably received a work evaluation at your job. Often, performance is evaluated by
measuring an employee's specific traits or general behaviors. Do you come to work on time?
Do you make errors? Do you complete your work efficiently? Do you satisfy your clients?
You might even work on a team and receive a group evaluation. Does the team handle work-
related stress well? Corporations utilize performance appraisals to evaluate how a person or
team acts, and what skills and knowledge they have, in order to give a broader view of the
performance and productivity of individual employees, teams, business units, or entire
corporations. There are many performance appraisal methods. The balanced scorecard
method provides a big picture of the organization and how each part fits into and influences
the whole organization.
Balance Scorecard (BSC) Explain tools and processes for
monitoring and reporting
business performance?
The balanced scorecard (BSC) provides a clear
description of the goals and objectives for each segment
of an organization, but takes it one step further by tying
in individual goals with organizational goals. The BSC
demonstrates how the objectives of an individual
employee have an influence on his role as a member of a
team and how that team then contributes to the success of
a business unit and how that business unit's productivity
affects the overall goals of the organization.
Focus Areas
The BSC is often divided into four process areas:
 Financial goals: What are the financial
responsibilities and goals of each individual,
department, and/or organizational group?
 Customer satisfaction: What can each segment of
the organization do to increase customer satisfaction?
 Departmental and organizational processes: How
do we save time, money, or effort, or increase
satisfaction or revenue, by changing our processes?
 Training and Learning Goals: What do we need to
train on or learn as an individual, department, or
The financial responsibility for
each individual and group member
is to cut down the unnecessary
expenditure and reduce chances of
deviation by going over budget.
The organization constantly
understand and address the
changing requirement of customer
either while launching new
product or bring modification in
existing ones to accommodate
changing preferences.
The company can take the
feedback from existing customers
and use the centralized database
based on which they constantly
remain updated. This possibly save
time, money and efforts by
maintaining interest of audience.

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HOW TO USE THIS WORKBOOK?
organization in order to improve in the other areas?
You can imagine how much easier it is to work toward
your goals when you know how your actions affect the
overall goals of the organization for which you work.
Conversely, it is also much easier for management to
determine the success of different units when they, too,
can see how all the pieces fit into place and what must be
done in order to be more successful and productive as an
organization.
As with any performance appraisals, the results are only
effective if they're used to improve. If an appraisal
determines that improvement is needed, it should always
be followed by a re-evaluation. When used correctly, the
balanced scorecard method of results-focused
performance appraisals can have a great impact on the
productivity of an individual, a team, and an
organization.
Individual should learn new
technique by focusing to
enhancing the existing skill or
knowledge. Moreover, department
with the heal of training focuses
top manage the internal operations
by maintaining effective
communication and coordination.
Applications of Management Information Systems
Many organizations are structured based on functional areas. This is often reflected in an
organizational chart. Typically, functional areas include finances, human resources,
marketing, etc. Many of these functional areas have their own Management Information
System, or MIS.
Financial MIS Marketing MIS
A financial MIS provides financial
information for managers to make daily
decisions on operations within the
organization. Most systems provide these
functions:
 Integrate financial information from
multiple sources
 Provide easy access to financial
information in summarized form
 Enable financial analysis using easy-
to-use tools
 Compare historic and current
financial activity
A financial MIS often has a number of
subsystems, depending on the type of
organization. These include systems to
A marketing MIS supports activities
throughout the many activities of marketing
departments. Some of the typical
subsystems of a marketing MIS are
marketing research, product development
and delivery, promotion and advertising,
product pricing and sales analysis.
One of the most common uses of a
marketing MIS is to produce sales reports.
These are typically produced on a regular
schedule, such as by week, month and
quarter. Reports can be organized by sales
representative, product, customer or
geographic area. Such reports allow
managers to see which aspects of sales are
doing well and which ones need attention.

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analyze revenues, costs and profits, auditing
systems for both internal and external
purposes and systems to manage funds. A
financial MIS can also be used to prepare
reports for third parties, such as external
auditors or shareholders.
Manufacturing MIS Human Resources MIS
Manufacturing is one of the areas where
information systems have made a major
impact. A typical manufacturing MIS is
used to monitor the flow of materials and
products throughout the organization. In a
manufacturing process, raw materials or
parts are transformed to finished products,
and a manufacturing MIS is used at every
stage. Consider the example of building an
airplane. How many different parts do you
think there are in an airplane? Many of
those parts come from suppliers and have to
be ordered. Others are made at the
manufacturing plant itself. Now think of the
process that is needed to get all those parts
at the right place at the right time. And, all
those parts have to be carefully inspected
before they can be used in building the
plane.
A human resources MIS is concerned with
managing all the information related to
employees of the organization, including
previous, current and potential employees.
It is also called a personnel MIS. This
information system supports the many
activities of a human resources department,
such as workforce planning, selection and
recruiting, training, task projects and
administration of salaries and benefits.
Consider the example again of building an
airplane. How many different specialists are
involved in the design phase, the actual
assembly and the testing of the plane?
Making sure the right people are available
at the right times requires careful workforce
planning.

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ROLE & FUNCTIONS OF MANAGEMENT
Management Accounting 4.5
Management accounting is the use of accounting data to assist the management team with
information useful in the decision-making process. This makes decision making more of a
scientific process and less of a guess. Management accounting provides the executive team
with the information necessary to make rational financial and managerial decisions.
Explain the use of management accounts and management information systems in
performance management?
Management accounting offer the informative details to the comp[any based on which
innovative decisions are made that leads to systematic functioning. Whereas, management
information system helps to store and retrieve all the essential data of an organization.
Application of both management accounting and management information system assist the
organization to enhance the performance by meeting out the targets effectively.

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ROLE & FUNCTIONS OF MANAGEMENT
STUDENT NAME
ASSESSOR NAME
STUDENT
SIGNATURE DATE
ASSESSOR
SIGNATURE DATE

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STUDENT NAME
ASSESSOR NAME
FEEDBACK &
JUDGEMENT
STUDENT
SIGNATURE DATE

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ASSESSOR
SIGNATURE DATE

Page 18
MANAGEMENT & LEADERSHIP THEORIES

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