Advanced Diploma in Business Management 22.2F Principles of Management Group Assignment Report - 01 1. Wellage Shakthi Akesh Shavishan de Silva - GAADBM222F - 005 2. Chamodika Lakshani Manawadu - GAADBM222F - 007 3. Sudusinghe Liyanage Tharushi Niwarthana - GAADBM222F - 009 4. Hiruni Alanka Jayawardhana GAADBM222F - 012 - Date of Submission – 17.10.2022 Content 1. Tasks 1. Describe the four general skills necessary for becoming a successful manager. 2. Importance of managerial roles in small and large businesses 2. Answers 1. Introducing managerial skills 2. Conceptual skills 3. Technical skills 4. Interpersonal skills 5. Diagnostic skills 6. Introducing managerial roles 7. Interpersonal roles a. Figurehead b. Leader c. Liaison 8. Informational roles a. Monitor b. Disseminator c. Spokesperson 9. Decisional roles a. Entrepreneur b. Disturbance handler c. Resource allocator d. Negotiator 10. Conclusion 3. Reference 4. Appendix Task 01 Describe the four general skills necessary for becoming a successful manager. We are briefly call managerial skills as the skills possessed by managers to perform a particular task in an organization. Robert L. Katz has introduced three skills that managers should possess and practice at different management levels in the organizational hierarchy. [1] They are, Conceptual Skills Technical Skills Interpersonal Skills In addition, there are management skills relevant to the twenty – first century. They are, Decision making Skills Time management skills Communication Skills Diagnostic Skills It is important for management to master all these seven skills to do be a successful manager. It is very important to develop these skills separately. For this assignment, we will choose four management skills. They are, 1. Conceptual Skills 2. Technical Skills 3. Interpersonal Skills 4. Diagnostic Skills Conceptual Skills Conceptual skills depend on the manager’s ability to think in the abstract – As managers plan and set organization goals and strategies, they need the mental capacity to understand the overall working of the organization and its environment, to view how organization is structured and organizational system. This allows them to think strategically and make right decisions at right time. “Jobs Steve jobs had this skill as he was a person who was able to perceive visionary and revolutionary ideas about the way we were doing things and how things could be done better. He clearly saw many ideas that we’re oblivious to anyone else. For example, Jobs noticed people burn CDs on their personal computers via online content. He rethought the concept and developed an ecosystem that transformed the entertainment industry with iTunes software and iTunes store. Then people began to buy and manage music from website and then store is on an iPod or computer. After success of iPod, Jobs made breakthroughs in operating systems, processing and memory and then somehow figured out how to add wireless connection to it and at last iPhone was invented, iOS followed. Today we can see iPhone 14 with latest iOS 16 operating system, 6 GB ram, 1 Terabyte storage and cameras that support cinematography and 8K video recording.”[2] Technical Skills Technical skills are necessary to accomplish or understand the specific kind of work being done in an organization. Basically, it is the knowledge in the field. Technical skills are more important for low level managers as these managers work closely with operating employees in an organization. These managers train employees and answer to work related questions as they have technical knowledge and skill for the tasks, they assigned to supervise to manage their subordinate effectively and efficiently. “Brain Dunn, director and CEO of Best Buy, began his career in 1985 as a store associate when Best Buy consisted only twelve stores. Then he continued to work his way up in Best Buy becoming store manager, district manager, regional manager, Regional VP, then senior VP and executive VP, then president of retail (North America). So, he has learned technical aspects of retailing from the ground up. That helped him to manage his organization more precisely.”[3] Interpersonal Skills Interpersonal skills are the ability to communicate with understand and motivate both individuals and groups. Mangers spend considerable time interacting with people from both within and outside the organization. That is why managers need ability to communicate with understand and motivate both individuals and groups. As managers have many roles within the organization to fulfil, they must be able to work with suppliers, investors, customers, government and others outside the organization. Also in the organization they have to work with colleagues, lowerlevel managers, higher level managers and other employees. A manager with good interpersonal skills is more likely to be successful as he can communicate well, understand others and can motivate employees to increase their performance. “Sheryl Sandberg joined Facebook in 2008 as chief operating officer, following careers at World Bank, the treasury department and Google. Sandberg is renowned for her interpersonal skills and sharp intellect, balancing CEO Mark Zuckerburg’s introversion. These skills have helped to cultivate strong relationships with key advertisers and bring continued growth and stability to Facebook.” This one of the best examples to show how interpersonal skills are important as a manager. [4] Diagnostic Skills These skills that enable a manager to visualize the most appropriate response to a situation. Like a mechanic diagnoses a vehicle’s problems by analysing symptoms and signals and determining their probable course. Similarly, a manager can diagnose organization’s problem by studying the symptoms and select the most appropriate solution for the situation. “First owner of Starbucks failed but Howard Schultz took over the company and reoriented the business away from mail order and moved it into retail coffee outlets. His diagnostic skills helped him to understand why current business model was not working and how to make a better business model. [5] Task 02 Importance of Managerial Roles in small and Large Business. In an organization, regardless of their levels or areas managers have some certain roles to play and show some skills as we describe above. A managerial role involves responsibility and supervision. Managers contribute to their companies in many ways that hinge upon their job titles and organizations needs and have certain responsibilities in an organization. Henry Mintzberg offers number of interesting insights into the nature of managerial roles. He observed the day-to-day activities of a group of CEOs by literally following them around and taking notes on what they did. After his research Mintzburg concluded that managers play ten different roles and these roles can be categorized into three basic roles. [6] 1. Interpersonal roles 2. Information roles 3. Decisional roles Interpersonal Roles There are three interpersonal roles. Interpersonal roles are roles where manager interact with other people. 1. Figurehead Figurehead means symbolic head and as a manager, person required to perform a number of duties of legal or social nature. These activities are typically more ceremonial. In Sri Lanka small business is less worth than 4 million rupees. In small businesses, most of the time owners take responsibility as managers. They’ll open new shops, introduce new innovations to market, represent business when needed, the companies which have more assets than 4 million is considered as large business and these larger corporations have different levels of management and different areas of management. Mainly CEOs, CFOs, managing directors play figurehead role in company ceremonies such as attending ribbon- cutting ceremony for new plant or new factory. Real life example for figurehead role in small business is the opening of “RTS hypermarket by the owner of the business. He acted figurehead role there. Managing director of Bata Shoe Company of Ceylon limited went to Sri Lanka Standards Institute representing company in 98 to get “Sri Lanka National Quality Award” 2. Leader Managers are responsible for motivating and directing subordinates. So, they play leader role. In small scale business and in large business, no matter the size manager essentially play leadership role as they direct their operating employees and lower managers to achieve organization’s goals in efficient and effective manner. As the managers direct them there’ll be less problems, mistakes and conflicts. Manager also motivate their subordinates to improve their productivity in many ways. For example, “Steve Jobs has showed leadership in management style he motivates Steve Wozniak to be the technical brain behind the sales and marketing vision of jobs. Jobs has the idea and new where to sell, but under his motivation Wozniak created Apple 1 and Apple 2.” [7] 3. Liaison Liaison role is to maintain network of outside contacts and serving as a coordinator or link among people, groups and organizations. In small business managers liaison role is more important than in larger business according to our point of view. Small businesses are start-up businesses, and their goal is to become large corporations and make higher profits. So, to survive in this dynamic market, managers need to maintain relationships with competitors, suppliers, owners etc. They also build contacts with large corporations to calibrate their products with large corporations to make more profits and establish their brand name and reputation. In large business, manager also maintain a link with stakeholders, competitors, suppliers, etc. they also build contact with other large and good reputed companies and merge with them to increase their reputation and famous their brand names. For example, companies in the computer industry use liaison to keep other companies informed about their plans. This enables Microsoft, for example, to create software for interfacing with new HP printers at same time those printers are developed and at the same time, managers at HP can incorporate new Microsoft features in to the printers they introduce. [8] Informational Roles There are three informational roles and these three flows naturally from the interpersonal roles. The process of carrying out interpersonal roles place manager at a strategic point to gather and disseminate information. 4. Monitor Monitor is one who collect relevant information that may be of value. Both in large and small businesses, managers collect information that may be of value to the business. With the help of these information, manager can evaluate threats and opportunities for the company and take necessary decisions to survive and capitalize opportunities. For example, managers scan industry reports to stay abreast of development. In large companies, managers scan financial assets of company do relevant actions to attract investors. In small scale businesses, managers study competitors’ performance, customer feedback etc. to increase quality of products. 5. Disseminator Disseminator is one who distribute relevant information. Monitor and disseminator roles are view together as one collect information and other one distributes information. Manger is a person who take decisions and supervise other to make sure employees do it in best and cheap way possible. So manager must share his knowledge and information with others. For example, sending memos outlining new organization initiatives is an act of disseminator role. 6. Spokesperson Managers make speeches at relevant occasions. According to Griffin spokesperson formally relays information to people outside the unit or outside the organization. In small business role of spokesperson in important to transmit information to higher level managers or owners. For example, manager at RTS hypermarket of Galle may transmit information to owner so that owner will be better informed about supermarket’s activities. This can be also seen large corporations. CEO of Alphabet Sunder Pichai represented Google before a chamber of consumers when he introduced “Google Assistant” as he both speak to his audience and represented the organization. [9] Decisional Roles There are 4 decisional roles and informational roles typically lead to decisional roles. Information acquired by playing informational roles is used when taking decisions. 7. Entrepreneur Entrepreneur take decisions as the owner of the company or behalf of the owner and voluntary initiator of change. They develop new ideas for innovation. For small scale businesses, this is very important because innovating new product or service can be the turning point of their business. Even for large corporations, they also innovate to survive. The best example for small business that got their grace by innovation is Microsoft. Microsoft in early 70s, Microsoft worth nothing , and most of the Americans used type writers and 70s was the time of early personal computer Altair 8800 and Microsoft with only two people, Bill Gates and Paul Allen worked on a simulator to Altair 8800 and developed interpreter. This changed the history of the company and worth of the transactions exceeded 1 million. Then for large scale business after MITS company sold their PC Altair 8800 with Microsoft software and Microsoft earned 1 million profits. Then in 80s Bill Gates and Allen Paul innovates MS- DOS and it changed the future of all computers and made billions of dollars from it. That is why innovation is important for both small- and large-scale businesses. [10] 8. Disturbance Handler Manager resolves conflicts in workplace and outer workplace. For example manager resolves conflicts between two subordinates and handle problems such as strikes, copyright infringement or problems in public relations. For small companies they must softly handle public relation problems to secure their customer base and increase it, because company can gain good reputation by it. Also the large companies must do this to secure their customer base and market share. Strikes and problems with employees also should be handled very carefully I both small and large businesses as it can affect performance, human resources and image of the company. 9. Resource Allocator Manager decides who gets the resources, and manager’s main goal is to achieve organizational goals in effective and efficient manner. So he has to allocate organization’s resources to right place to do this. In both small and large businesses this is important because incorrect allocation of resources may result the decline of the company. So managers are very careful when allocating resources. For example, review budget request for a project and change it as company can handle it because company can’t invest all money for one project. This is very true for both small and large businesses even though the large businesses have more assets. 10. Negotiator Manager reaches agreements with key parties, for example managers negotiate with unions and striking employees. Also managers negotiate long-term agreements with suppliers. No matter the size of business, negotiation skills are essential for mangers in our point of view. Negotiations with unions is important for small and large businesses because unless the performance and profits may drop because union members will abandon their work. Also negotiations with suppliers is also important because they supply us with raw materials and products for our businesses, mangers can negotiate with them to price reduction, so the company can earn more profits. Finally our point of view, for the importance of managerial roles, size of business doesn’t matter, all that matter is survival and expand of business whether it is large or small. Every and each managerial role is important to business as each role play main act in business and mostly decide the future path of the company Reference [1] Advanced Level teacher’s guide – business studies [2] https://eduzaurus.com/free-essay-samples/steve-jobs-skills-to-becomesuccessful/ [3] [4] [5] [6] [8] Management – R.W. Griffin – 11th Edition [7] https://taurusmarketing.com.au/steve-wozniak-story-a-story-of-innovation-andinspiration/ [9] https://www.youtube.com/watch?v=3uihkLjlEp4 [10] https://www.britannica.com/topic/Microsoft-Corporation Appendix CD - a small optical disk usually containing recorded music or computer data iTunes - a computer application enabling users to download music from the internet, create and order playlists, etc. iPod - small portable digital audio player capable of storing thousands of tracks downloaded from the internet or transferred from a CD iPhone - a smartphone made by Apple that combines a computer, iPod, digital camera and cellular phone into one device with a touchscreen interface Apple - a prominent hardware and software company best known for its series of personal computers, the iPod and its innovative marketing strategies for its products iOS - a mobile operating system created and developed by Apple Inc. exclusively for its hardware. RAM - a computer's short-term memory, where the data that the processor is currently using is stored. (Random Access Memory) BestBuy - a consumer electronics retailer with operations in the U.S., Mexico, and Canada Bata - a multinational footwear, apparel and fashion accessories manufacturer and retailer of Moravian (Czech) origin Facebook - a social networking website Starbuck - an American multinational chain of coffeehouses and roastery reserves headquartered in Seattle, Washington. It is the world's largest coffeehouse chain. Business model - a company's plan for making a profit. RTS hypermarket - Supermarket based in Dadalla, Galle. National Quality Awards - an annual Award to recognize Sri Lankan Organizations that excel in quality management and quality achievement Apple 1 - Apple's first computer Apple 2 - an 8-bit home computer produced by Apple Computers, and which was the successor to the Apple I. Google - a global technology company specializes in internet related services and products HP - a multinational information technology (IT) company that sells hardware, software and related business services. Microsoft - Microsoft is a US-based technology company. It was founded by Bill Gates and Paul Allen and the largest vendor of computer software in the world. Alphabet - a conglomerate founded by Google to serve as its holding company Google Assistant - a virtual assistant software application developed by Google that is primarily available on mobile and home automation devices. MS-DOS – Microsoft Disk Operation System is an operating system for x86based personal computers Altair 8800 – a microcomputer designed in 1974 by MITS and based on the Intel 8080 CPU MITS - Micro Instrumentation and Telemetry Systems (MITS) was an American electronics company