Tourism Management PDF

Crimson-Ghost Tourism Management ❖ Introduction and Definitions: Frederick Winslow Taylor-godfather Of Management: Well-known as the founder of scientific management was the first to recognize and emphasis the need for adopting a scientific approach to the task of managing an...

Crimson-Ghost Tourism Management ❖ Introduction and Definitions: Frederick Winslow Taylor-godfather Of Management: Well-known as the founder of scientific management was the first to recognize and emphasis the need for adopting a scientific approach to the task of managing an enterprise. The Frederick Taylor's principles of scientific management consist essentially of: 1) Observation 2) Measurement 3) Experimentation and 4) Inference. Frederick Taylor advocated a thorough planning of the job by the management and emphasized the necessity of perfect understanding and co-operation between the management and the workers both for the enlargement of profits and the use of scientific investigation and knowledge in industrial work. He summed up his approach in these words: 1) Science, not rule of thumb 2) Harmony, not discord 3) Co-operation, not individualism 4) Maximum output, in place of restricted output 5) The development of each man to his greatest efficiency and prosperity. 1|Page  Crimson-Ghost The management: The management sciences and many early systems thinkers have made a substantial contribution to this field in covering a wide range of subjects, including facilities layout, job design, logistics, inventory control, integrated models of production systems, international operations, advance manufacturing systems, production and employment smoothing, project management, and work measurement. Today, business management seems to be only a special case of management as more general human condition. Management is everywhere, ranging from people's self- management to social network management and from household management to planetary management in the context of global warming. This raises the question what is actually meant with the concept of business management. Often, management is self-evidently understood as managerial power and mechanism to control, inspired by the scientific management theory that is still taught in business schools today, In order to develop a better understanding of the contemporary meaning of the concept, one would expect to find deeper insights in the sub-discipline of philosophy of management. Management theory that is still taught in business schools today includes general and five functions of management in particular: 1) Planning 2) Organizing 3) Instruction 4) Coordination 5) Control 2|Page  Crimson-Ghost Definitions according to some researches: 1) Koontz O Donnel: Management is the art of getting things done through and with people in formally organized groups. 2) Harold Koontz & Heinz Weihrich: Management is the process of designing and maintaining an environment in which individuals, working together, in groups, efficiently accomplish selected aims. 3) George R. Terry & Stephen G. Franklin: Management is a distinct process consisting of activities of planning, organizing, actuating and controlling performed to determine and accomplish stated objectives with the use of human beings and other resources. 3|Page  Crimson-Ghost ❖ Management: Three Aspects of Management: Management is a distinct process consisting of planning. organizing, actuating and controlling, performed to determine and accomplish stated objective by the use of human beings and other resources". As a process, management consists of three aspects: 1) Management is a social process: Since human factor is most important among the other factors, therefore management is concerned with developing relationship among people. It is the duty of management to make interaction between people productive and useful for obtaining organizational goals. 2) Management is an integrating process: Management undertakes the job of bringing together human, physical and financial resources so as to achieve organizational purpose. Therefore, is an important function to bring harmony between various factors. 3) Management is a continuous process: It is a never-ending process. It is concerned with constantly identifying the problem and solving them by taking adequate steps. It is an on-going process. 4|Page  Crimson-Ghost Nature of Management: The study and application of management techniques in managing the affairs of the organization have changed its nature over a period of time. The following points will describe the nature of management: 1) Multidisciplinary: Management has been developed as a separate discipline, but it draws knowledge and concepts from various disciplines like psychology, sociology, anthropology, economics, statistics, operations research etc. Management integrates the idea and concepts taken from these disciplines and presents newer concepts which can be put into practice for managing the organizations 2) Dynamic nature of Principles: Principle is a fundamental truth which establishes cause and effect relationships of a function. Based on integration and supported by practical evidences, management has framed certain principles. However, these principles are flexible in nature and change with the changes in the environment in which an organization exists. 5|Page  Crimson-Ghost 3) Relative, not absolute Principles: Management principles are relative, not absolute, and they should be applied according to the need of the organization. Each organization may be different from others. The difference may exist because of time, place, socio- cultural factors, etc. 4) Management Science or Art: There is a controversy whether management is science or art. An art is personal skill of business affairs. Art is characterized by practical knowledge, personal creativity and skill. The more one practices an art, the more professional one becomes. Management can be considered as an art because it satisfies all these criterion of an art. A science is a systematized body of knowledge of facts. 6|Page  Crimson-Ghost Classification of Management Theories: 1) Classical Management Theory Classical management theory consists of a group of similar ideas on the management of organizations that evolved in the late 19th century and early 20th century. The Classical school is sometimes called the traditional school of management among practitioners. This school, evolved as a result of the industrial revolution, in response to the growth of large organizations It contains three branches, namely, scientific management, administrative principles and bureaucratic organization. Bureaucratic organization: specific form of organization defined by complexity, division of labour, permanence, professional management, hierarchical coordination and control, strict chain of command, and legal authority. It is distinguished from informal and collegial organizations. In its ideal form, bureaucracy is impersonal and rational and based on rules rather than ties of kinship, friendship or patrimonial or charismatic authority. Bureaucratic organization can be found in both public and private institutions. The common characteristic to all three branches is the emphasis on the economic rationality of management and organization. 7|Page  Crimson-Ghost The economic rationality of the individual employee at work assumes that people choose the course of action that maximizes their economic reward. In other words, economic rationality assumes that people are motivated by economic incentives and that they make choices that yield the greatest monetary benefit. Thus, to get employees to work hard, managers should appeal to their monetary desires. 2) Neo-Classical Theory (1920s-1950s) This theory believed that organizations always involve interrelationships among members and that it is the manager's role to see that relationships are as conflict free as possible, in order to accomplish the organization's objectives. The researchers believed that the human aspects of business organizations had been largely ignored. And satisfaction of psychological needs should be the primary concern of the management. Thus, the best work environment could be determined (just as the best way to perform the job could be determined by scientific management), then workers would be more efficient and become less tired. There were some factors which responsible for increased productivity. From a follow up interview of employees, the researchers realized that people were not leaving their feelings, attitudes, and emotions at home and employees were not at work simply for economic benefit. 8|Page  Crimson-Ghost But other dimensions also affected their performance. In a final experiment they discovered that the workers had developed their own idea of the level of fair output. 3) Modern Management Theory Modern management theory highlights the complexity of the organization as well as individuals and the diversity of their needs, motives, aspirations and potentials, the complex employee view is the premises of modern management theory. The complex employee view holds that people are both complex and variable. They have many motives, learn new motives through experience and motives vary from organization to organization and department to department. There is no single managerial strategy that works for all people at all times. Managers can employ different strategies at different times and for different persons. Analytical tools may be useful while applying managerial strategies. 9|Page  Crimson-Ghost Principals of Management Theories: 1) Initiative: This refers to the level of freedom employees should have to carry out their responsibilities without being forced or ordered. 2) Equity: This principle implies everyone in the organization should be treated equally and that it should be an environment of kindness. 3) Scalar chain: This principle says there should be a chain of supervisors from the top level of management to the lower level and that communication generally flows from top to bottom. 4) Remuneration of personnel: This principle refers to the assertion that there should be both monetary and non-monetary remuneration based on performance levels to create a bond between the employee and the organization. 5) Unity of direction: This principle asserts that there should be only one manager per department who is in charge of coordinating the group activity to attain a single goal. 6) Discipline: 10 | P a g e  Crimson-Ghost According to this principle, employees should be respectful and obedient, and an organization should outline rules and regulations that clarify rules, good supervision and a reward- punishment system. 7) Division of work: This principle asserts that the overall action of management should be divided and that team members should be given responsibilities based on their skills and interests to make them more effective and efficient. 8) Authority and responsibility: Per this principle, there should be a balance between authority the right to give commands and make decisions and responsibility the obligation of an employee to perform the tasks they're designated. 9) Unity of command: This refers to the assertion that employees must get orders from only one immediate supervisor and be accountable to that person only. 10) Subordination of individual interest to general interests: There must be harmony between the interests of the individual and the organization, although the organizational interest should be given priority since it will bring rewards for the individual 11) Centralization: 11 | P a g e  Crimson-Ghost According to this principle, the topmost level of authority should be centralized to the top level of management, who has the power to make the most important decisions in an organization. 12) Order: This principle asserts that for an organization to run smoothly, the right person must be in the right job and that, therefore, every material and employee should be given a proper place. The main objectives of management are: 1) Getting Maximum Results with Minimum Efforts 2) Increasing the Efficiency of factors of Production 3) Maximum Prosperity for Employer & Employees 4) Human betterment & Social Justice Importance of Management: 1) Effective utilization of Resources 2) Development of Resources 3) It ensures continuity in the organization 4) Integrating various interest groups 5) Stability in the society 12 | P a g e  Crimson-Ghost Processes of management in organization: 1) Planning: Planning is the conscious determination of future course of action. This involves why an action, what action, how to take action, and when to take action. Thus, planning includes determination of specific objectives, determining projects and programs, setting policies and strategies, setting rules and procedures and preparing budgets 2) Organizing: Organizing is the process of dividing work into convenient tasks or duties, grouping of such duties in the form of positions, grouping of various positions into departments and sections, assigning duties to individual positions, and delegating authority to each position so that the work is carried out as planned. It is viewed as a bridge connecting the conceptual idea developed in creating and planning to the specific means for accomplishment these ideas. 13 | P a g e  Crimson-Ghost 3) Staffing: Staffing involves manning the various positions created by the organizing process. It includes preparing inventory of personal available and identifying the sources of people, selecting people, training and developing them, fixing financial compensation, appraising them periodically etc. 4) Directing: When people are available in the organization, they must know what they are expected to do in the organization. Superior managers fulfil this requirement by communicating to subordinates about their expected behaviour. Once subordinates are oriented, the superiors have continuous responsibility of guiding and leading them for better work performance and motivating them to work with zeal and enthusiasm. Thus, directing includes communicating, motivating and leading 5) Controlling: Controlling involves identification of actual results, Comparison of actual results with expected results as set by planning process, identification of deviations between the two, if any, and taking of corrective action so that actual results match with expected results. 14 | P a g e  Crimson-Ghost Levels of Management in the organizations: 1) 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: 1. Top management lays down the objectives and broad policies of the enterprise. 2. It issues necessary instructions for preparation of department budgets, procedures, schedules etc. 3. It prepares strategic plans & policies for the enterprise. 4. It appoints the executive for middle level i.e., departmental managers. 5. It controls & coordinates the activities of all the departments. 6. It is also responsible for maintaining a contact with the outside world. 7. It provides guidance and direction. 8. The top management is also responsible towards the shareholders for the performance of the enterprise. 15 | P a g e  Crimson-Ghost 2) 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: 1. They execute the plans of the organization in accordance with the policies and directives of the top management. 2. They make plans for the sub-units of the organization. 3. They participate in employment & training of lower- level management. 4. They interpret and explain policies from top level management to lower level. 5. They are responsible for coordinating the activities within the division or department. 6. It also sends important reports and other important data to top level management. 7. They evaluate performance of junior managers. 8. They are also responsible for inspiring lower-level managers towards better performance. 16 | P a g e  Crimson-Ghost 3) Lower Level of Management Lower level is also known as supervisory operative level of management. It consists of supervisors, foreman, section officers, superintendent etc. 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 1. Assigning of jobs and tasks to various workers. 2. They guide and instruct workers for day-to-day activities. 3. They are responsible for the quality as well as quantity of production. 4. They are also entrusted with the responsibility of maintaining good relation in the organization. 5. They communicate workers problems, suggestions, and recommendatory appeals etc. to the higher level and higher-level goals and objectives to the workers. 6. They help to solve the grievances of the workers. 7. They supervise & guide the sub-ordinates. 8. They are responsible for providing training to the workers. 9. They arrange necessary materials, machines, tools etc. for getting the things done. 10. They prepare periodical reports about the performance of the workers. 17 | P a g e  Crimson-Ghost 11. They ensure discipline in the enterprise. 12. They motivate workers. 13. They are the image builders of the enterprise because they are in direct contact with the workers. Functions of Management in Organization: 1) Production management Production means creation of utilities by converting raw material into final product by various scientific methods and regulations. It is very important field of management. Various sub-areas of the production department are as follows. 1. Production planning: Managers have to plan about various production policies and production methods. 2. Material management: This area deals with purchase, storage, issue and control of the material required for production department. 3. Research and Development: This area deals with research and development activities of manufacturing department. Refinement in existing product line or develop a new product are the major activities. 4. Quality Control: Quality control department works for production of quality product by doing various tests which ensure the customer satisfaction. 18 | P a g e  Crimson-Ghost 2) Marketing management: Marketing management involves distribution of the product to the buyers. It may need number of steps. 3 areas are as follows: 1. Advertising: This area deals with advertising of product, introducing new product in market by various means and encourage the customer to buy these products. 2. Sales management: Sales management deals with fixation of prices, actual transfer of products to the customer after fulfilling certain formalities and after sales services. 3. Market research: It involves in collection of data related to product demand and performance by research and analysis of market. 3) Finance and accounting management Financial and accounting management deals with managerial activities related to procurement and utilization of fund for business purpose. Its sub areas are as follows: 1. Financial accounting: It relates to record keeping of various financial transactions, their classification and preparation of financial statements to show the financial position of the organization. 19 | P a g e  Crimson-Ghost 2. Management accounting: It deals with analysis and interpretation of financial record so that management can take certain decisions on investment plans, return to investors and dividend policy. 3. Taxation: This area deals with various direct and indirect taxes which an organization has to pay. 4. Costing: Costing deals with recording of costs, their classification, and analysis and cost control. 4) Personnel Management Personnel management is the phase of management which deals with effective use and control of manpower. Following are the sub areas of personnel management: 1. Personnel planning: this deals with preparation inventory of available manpower and actual requirement of workers in organization. 2. Recruitment and selection: this deals with hiring and employing human being for various positions as required: 3. Training and development: training and development deals with process of making the employees more efficient and effective by arranging training programs. It helps in making team of competent employees which work for growth of an organization. 20 | P a g e  Crimson-Ghost 4. wage administration: It deals in Job evaluation, and making wage and incentive policy for employees. 5) Functions of Management: To achieve the organizational objectives managers at all levels of organization should perform different functions. A function is a group of similar activities. General Principles of management: 1) Division of work: It is helpful to take advantage of specialization. Here, the work is divided among the members of the group based on the employee's skills and talents. It can be applied at all levels of the organization 2) Authority and Responsibility: Taylor finds authority as a continuation of official and personal factors. Official authority is derived from the manager's position and personal authority is derived from personal qualities such as intelligence, experience, moral worth. past services, etc., Responsibility arises out of assignment of activity. In order to discharge the responsibility properly, there should be parity between authority and responsibility. 21 | P a g e  Crimson-Ghost 3) Discipline: All the personal serving in an organization should be disciplined. Discipline is obedience, application, behaviour and outward mark of respect shown by employees. 4) Unity of Command: Unity of command means that a person should get orders from only one superior, unity of command as an important aspect in managing an organization. And if it be violated authority will be undermined, discipline will be in jeopardy, order will be disturbed, and stability will be threatened. 5) Unity of Direction: According to this principle, each group of activities with the same objective must have one head and one plan It is concerned with functioning of the organization. Unity of direction provides better coordination among various activities to be undertaken by an organization. 6) Subordination of individual interest to general interest: Individual interest must be subordinate to general interest. However, factors like ambition, laziness, weakness, etc., tend to reduce the importance of general interest. Therefore, superiors should set an example in fairness and goodness. 22 | P a g e  Crimson-Ghost 7) Remuneration to Personnel: Remuneration to employees should be fair and provide maximum possible satisfaction to employees and employers Problem Solving and Decision Making as a part of management Problem solving can be defined as the process of identifying a difference between the actual and the desired state of affairs and then taking action to resolve the difference. For problems important enough to justify the time and effort of careful analysis, the problem-solving process involves the following 7 steps: 1) Identify and define the problem. 2) Determine the set of alternative solutions. 3) Determine the criterion or criteria that will be used to evaluate the alternatives. 4) Evaluate the alternatives 5) Choose an alternative. 6) Implement the selected alternative. 7) Evaluate the results to determine whether a satisfactory solution has been obtained. Decision making is the term generally associated with the first five steps of the problem-solving process. Thus, the first step of decision making is to identify and define the problem. 23 | P a g e  Crimson-Ghost Decision making ends with the choosing of an alternative, which is the act of making the decision. Definition of Organization and organizing Organization may be defined as the place where includes: 1) Identifying and grouping the work to be performed. 2) Defining and delegating responsibility and authority. 3) Establishing relationships for the purpose of enabling people to work together effectively. Organizing: Organizing is the process of arranging collective effort so that it achieves an outcome potentially superior to that of individuals acting or working alone. It almost always involves some division of labour, with different people or groups concentrating on different activities that then have to be integrated (coordinated) to achieve a successful result. Organizing also requires a degree of control, so as to monitor progress against original intentions and to make appropriate adjustments along the way. 24 | P a g e  Crimson-Ghost The specializations of Manpower Planning in organization as a part of management: 1) Manpower planning process: Manpower Planning: o It is the scientific process of evolving the right quantity of right men to be required in future at right time on the right job. Definition: o Manpower planning may be defined as a rational method of assessing the requirements of human resources at different levels in the organization. o It ends with proposals for recruitment, retention, or even dismissal, where necessary. 2) Operative Functions: It deals with determination of man power requirement, their recruitment, selection, placement and orientation. Development of personnel: o After personnel have been obtained, they must to some degree be developed before going to work. o Development has to do with the increase of skill, through training that is necessary for proper job performance. 3) Compensation of personnel: Compensation means, determination of adequate and equitable remuneration of personnel for their contribution to organization objectives. Record keeping: o In this system personnel manager collects and maintain information which is concerned with the staff of the organization. 25 | P a g e  Crimson-Ghost 4) Personnel planning and evaluation: Under this system different types of activities are evaluated such as evaluation of performances personnel policy of an organization and its practices, personnel audit, moral survey and performance appraisal etc. 5) Job Analysis: Job analysis can be defined as the process of identifying the tasks comprising a particular job to assess whether they could be organized in a productive manner. This will identify the main features of the job, the major tasks undertaken, the results to be achieved, and how one job is related to the other jobs in the organizational hierarchy. The product of job analysis is job description. 6) Job Description: Job description is an accurate and concise description of a. The overall purposes of the job b. The principal duties of the person doing this job. The job description emphasizes the job requirements. Clear job description constitutes the basis for advertising the vacancy positions and for drawing up job specifications. Once individuals are selected to the posts, job description allows them to know exactly what their roles are and what is expected of them. 7) Job Specification: 26 | P a g e  Crimson-Ghost Job specification identifies the requirements on the part of the person to perform the given job. It provides the interviewer an understanding of the job and helps him to assess the qualities necessary for its performance to an acceptable standard, at the time of interview. This helps him to compare the performance of candidates objectively and to eliminate unsuitable candidates. 8) Objectives of Manpower Planning: 1) Making correct estimate of manpower requirement. 2) Managing the manpower according to the need of enterprises. 3) Helps in recruitment and selection. 4) Maintaining production level. 5) Making employees development programme effecting. 6) Reduction in labour costs. 9) Selection: The process of identifying the most suitable persons for the organization is called selection. The main purpose of selection is to choose the right person for the right job. The job analysis, job description, and job specifications are carried out before the position is advertised. These provide adequate insight about nature of the job, its description, and its specifications and further focus on what type of person is to be selected for a given position. These simplify the process of selection. 27 | P a g e  Crimson-Ghost Principle of scalar chain A scalar chain is a certain number of managerial personnel of a system's hierarchal management starting from the top- rank executive to a manager on the shop-floor. Psychological laws of leader's management: Psychology of management as a branch of practical psychology also studies the laws of managerial activity. The laws of psychology of management are manifested in the interaction in interpersonal relations and in group communication and like any other laws they act regardless of our awareness of their existence. The main laws of psychology of management and of managerial activity as a whole are the following: 1) The law of response uncertainty. 2) The law of inadequacy of mutual perception. 3) The law of self-estimation inadequacy. 4) The law of information distortion. 5) The law of self-preservation. 6) The law of compensation. 1) The law of response uncertainty: The law of response uncertainty is called the law of dependency of internal influences on earlier psychological conditions. It is based on two psychological phenomena - the apparent and on the presence of mind stereotypes. 28 | P a g e  Crimson-Ghost The apparent is the dependence of perception on previous experience. Mind stereotypes are stable opinions Estimations, judgements which incorrectly and incompletely reflect the reality and influence behaviour, creating obvious or hidden communication barriers. 2) The law of inadequacy: The law of inadequacy of mutual perception is that a person can never cognize another person wit completeness that would be satisfactory for taking serious decisions about that person. Our perception is "made up" in such a way that it is practically never quite adequate, correct, or complete. Even the commonest object in front of our eyes is never perceived by us in full and completely, but we always see it from some viewpoint, that is only that part of it which gets into our field of vision and directly influences our receptors. Such distortion is caused by many reasons, the main of which being the following: 1. A person is constantly in a state of changing. It is known that at any moment every person can be at different levels of physical, physiological, intellectual, social, ethical, emotional, and sexual development. 2. A human always tries consciously or unconsciously to protect oneself from attempts to disclose his/her "weak spots" in order not to become a victim of somebody's manipulations. 29 | P a g e  Crimson-Ghost 3. Often a person cannot provide exhaustive information about oneself because (s)he doesn't know oneself completely. The following principles in developing their approach to people: 1. the principle of the universal giftedness: Which from the manager's point of view takes the form of the motto: "There are no untalented, incapable people. There are people who are doing work. they are not cut for". 2. The principle of development: lies in the fact that capabilities (both general and specific) can be developed. 3. The principle of inexhaustibility: Indicates that not a single assessment of a person can be considered as final. 3) The law of self-evaluation's inadequacy: The essence lies in the fact that while trying to evaluate oneself a person faces the same inner barriers and limitations as when evaluating other people. 4) The law of information distortion: It is sometimes called the law of the loss of sense of managerial information or the law of managerial information splitting. The essence of this law is that managerial information (directives, orders, instructions, etc.) has a tendency of changing its meaning in the process of its movement "downwards" In the basis of the loss of information's 30 | P a g e  Crimson-Ghost meaning lies the language in which the information is rendered. 5) The law of self-preservation: The law of self-preservation consists in that one of the leading motives defining humans' behaviour is the desire to preserve their personal status, competency, dignity. Direct or indirect hurting dignity causes negative reaction. 6) The law of compensation: The law of compensation generally means that a person having some shortcomings, complications, or problems in one sphere of life tries consciously or unconsciously to compensate them by intensified work in another sphere. Social-and-psychological phenomena of a personality's behaviour in a group The (pressure) considerably influences group-members' behaviour. Nevertheless, this impact turns out to be different for various people in connection with the peculiarities of their personalities. In conditions of group communication and interaction people show specific traits which are called social-and- psychological phenomena of group behaviour. To such phenomena are related various manifestations of a personality's activity in a group. As a result of recurrent "attitudinal situations" in a subject there is gradually formed a "fixed attitudes set" which 31 | P a g e  Crimson-Ghost imperceptibly for the person themselves determine his/her position in life in perceiving of surrounding reality. In social practice psychologists distinguish the forms of behaviour in which the fixed attitudes of a personality at perceiving people and events are manifested. An attitude is a psychological mechanism of those communication stereotypes. For instance, the attitude to the necessity of obeying the executive's orders causes preparedness to carry out any orders without critical evaluating him/her as a personality. Looking closely at people's personality traits we are trying to understand what they are like, whether we can trust them. etc. And here often are applied set attitudes, social stereotypes, worldly ideas that have been formed by every person, as well as the level of psychological culture in the ability of perceiving and critical estimating other people. The following example can serve to demonstrate a social attitudinal stereotype: many people believe that a professor is always myopic and misfit for everyday life; a student is always cheerful, witty, mobile, and is never prepared for an exam; all Englishmen are skinny, arrogant and composed, and the only thing the French ever think of is love. The attitude to sportsmen is expressed in the saying "He who has strength needs no wits." Meeting a new person, we immediately relate him/her to a certain category and build up our behaviour in accordance with a set stereotype. 32 | P a g e  Crimson-Ghost Psychologists distinguish three types of attitudes at perceiving another person: 1. Positive attitude: Causes us to overestimate the positive qualities and ignore the weak traits of a person, i.e., we give the person a big advance which is manifested in unconscious trustfulness. 2. Negative attitude: Makes us perceive only negative qualities of another person, expressing mistrust and suspicion. 3. Adequate attitude: Is connected with understanding of the fact that every person has both advantages and disadvantages, the main thing being their balance and evaluation by another person. 1) Nimbus effect: Is the impact of general impression of a person on perception and evaluation of particular traits of his/her personality. If employees or executive have formed a positive opinion of a person his/her bad act is perceived as an incident. 2) Sequence effect: The judgement of a person is influenced most of all by the information presented in the very beginning. Usually, an ill- wisher who wants to spoil a person's reputation hurries to tell a new boss something that discredits the person. 3) Advancing effect: Is ascribing to a person non-existing merits and then facing disappointment after coming across his/her behaviour 33 | P a g e  Crimson-Ghost which is inadequate to the formed positive opinion of the person. Psychological compatibility in management structures: It the process of solving common professional tasks employees have to contact each other in order to coordinate their actions. On the level of such coordination their work efficiency depends. This coordination level, in its turn, is a derivative from the employees' compatibility degree. So, what is the essence of the notion of "psychological compatibility?". Psychological compatibility is the group-members ability to common activity based on their optimal matching. When forming any production group, it is necessary to take into account not only each person's individual-and- psychological qualities, but also possible results of common activity which are determined by the process of their placing together. 34 | P a g e  Crimson-Ghost The following evaluation criteria of harmony achievement: 1. the results of mutual activity. 2. emotional-and-energy consumption by activity participants. 3. satisfaction of activity participants. There are several levels of psychological compatibility determined by both employees' personality qualities and the content and difficulty level of the professional tasks being solved. Let's consider such three levels: 1) 1st level: is the psychophysiological compatibility which is manifested in the similarity of people's natural qualities: type of nerve system (temperament), physical endurance, capacity for work, emotional endurance, etc. In a number of professional activities these very qualities are needed. 2) 2nd level: Is psychological level which is manifested in the coincidence of qualities which are result of training and education. To this level belongs the coincidence of character traits, people’s professional interests, intellectual development level, moral qualities. 3) 3rd level: Is socially-psychological level which is manifested in the coincidence of personality traits necessary for social interaction on the basis of common world-view: communicativeness, adherence to principles, social attitudes, political views, value orientations. 35 | P a g e  Crimson-Ghost The Management Style: A management style is: o A way in which a manager works to fulfil their goals. o Management style includes the way that a manager plans, organizes, makes decisions, delegates, and manages their staff. An effective manager is: o Someone who can adjust his management style in response to different factors while keeping their focus on successfully achieving targets. Management styles are affected by both internal and external factors. Internal factors include: 1) The overall organizational and corporate culture of the company. 2) Policies 3) priorities 4) employee engagement 5) Staff skill levels. In general, the higher-skilled staff does not need as much supervision, while less skilled staff will require more monitoring to consistently achieve their objectives. External factors include: 1) employment laws 2) the economy 3) competitors 4) suppliers 5) Consumers 36 | P a g e  Crimson-Ghost These are factors that are outside of the control of the organization, but will have an effect on both managers and employees. 8 Types of Management Styles: There are eight types of management styles to consider: 1) Democratic management style: The democratic management style is rooted in collaboration. These types of leaders seek input from their employees before making business decisions or delivering solutions. They engage employees by remaining open to new ideas and experimentation, and granting employees the freedom to use their voices to share their opinions. This style of management can create strong bonds between employees and leaders. Characteristics of Democratic management include: 1) Collaboration 2) Engagement 3) Creativity 2) Laissez-faire management style: Laissez-faire leaders are hands-off and maintain a high level of confidence in their employees. Production Skill who adopts this Management style don't micromanage their employees and grant them freedom to work on their delegated tasks independently. The laissez-faire leadership style works best when managing highly experienced professionals. 37 | P a g e  Crimson-Ghost When these self-disciplined employees are given more autonomy, they often demonstrate greater initiative. This approach to leadership requires a great deal of trust. Leaders need to feel confident that the members of their group possess the skills, knowledge, and follow-through to complete a project without being micromanaged. The laissez-faire style has its advantages: 1) It encourages personal growth. 2) It encourages innovation. 3) It allows for faster decision-making. 3) Autocratic management style: An autocratic management style is centered on results and efficiency, and usually devoid of employee collaboration and autonomy. An autocratic style leader believes in micromanaging employees to ensure they follow company policies and rely on authority to provide instruction. Some aspects of this management style may be useful in an emergency when unexperienced employees need clear, strict expectations to solve a particular problem. 4) Charismatic management style Leaders who follow a charismatic management style are charming. Highly persuasive and deeply committed to their cause. Charismatic leaders are also interested in building personal relationships and rallying their team around a common goal. 38 | P a g e  Crimson-Ghost This style of management is useful for helping employees feel supported, highly engaged and motivated toward achieving business objectives. 5) Bureaucratic management style Leaders who adhere to the bureaucratic style of management focus on assigning specific duties to employees within a well-defines hierarchy. They're less concerned with collaboration and more interested in following rules and procedures. Bureaucratic leaders assign each employee a set of responsibilities and independent tasks, and all work is streamlined from top to bottom. This style of leadership is useful in heavily regulated industries, but less effective creative environments. Types of Management Skills: the three basic types of management skills include: 1) Technical Skills: Technical skills involve skills that give the managers the ability and the knowledge to use a variety of techniques to achieve their objectives. These skills not only involve operating machines and software, production tools, and pieces of equipment but also the skills needed to boost sales, design different types of products and services, and market the services and the products. 39 | P a g e  Crimson-Ghost 2) Conceptual Skills: These involve the skills managers present in terms of the knowledge and ability for abstract thinking and formulating ideas. The manager is able to see an entire concept, analyse and diagnose a problem, and find creative solutions. This helps the manager to effectively predict hurdles their department or the business as a whole may face. 3) Human or Interpersonal Skills: The human or the interpersonal skills are the skills that present the managers ability to interact, work or relate effectively with people. These skills enable the managers to make use of human potential in the company and motivate the employees for better results. 40 | P a g e  Crimson-Ghost The major activities that modern managers typically perform are of three basic types: 1) Activities-related with Task: Activities-related with Task are management efforts aimed to carry out critical management related duties in organizations. Such activities include short-term planning, clarifying objectives of jobs in the organization, and monitoring operations and performance. 2) Activities related with People: Activities related with People are management efforts aimed at managing people in organizations. Such activities include providing support and encouragement to others, providing recognition for achievements and contributions, developing the skills and confidence of organization members, consulting when making decisions, and empowering others to solve problems. 3) Activities related with changes: Activities related with changes are management efforts aimed at modifying organizational Components. Such activities include monitoring the organization's external environment, proposing new strategies and visions, encouraging innovative thinking, and taking risks to promote needed change. 41 | P a g e  Crimson-Ghost Important definitions about all of the above: 1) Planning Skill: The ability to take action to determine the objectives of the organization as well as what is necessary to accomplish these objectives. 2) Decision-Making Skill: The ability to choose alternatives that increase the likelihood of accomplishing objectives. 3) Strategic Planning Skill: The ability to engage in long-range planning that focuses on the organization as a whole. 4) Organizing Skill: The ability to establish orderly uses for resources within the management system. 5) Responsibility and Delegation Skill: The ability to understand one's obligation to perform assigned activities and to enlist the help of others to complete those activities. 6) Human Resource Management Skill: The ability to take actions that increase the contributions of individuals within the organization. 7) Organizational Change Skill: The ability to modify an organization in order to enhance its contribution to reaching company goals. 42 | P a g e  Crimson-Ghost 8) Communication Skill: The ability to share information with other individuals. 9) Leadership Skill: The ability to direct the behaviour of others toward the accomplishment of objectives. 10) Motivation Skill: The ability to create organizational situations in which individuals performing organizational activities are simultaneously satisfying personal needs and helping the organization attain its goals. 11) Team Skill: The ability to manage a collection of people so that they influence one another toward the accomplishment of an organizational 12) Organization Culture Skill: The ability to establish a set of shared values among organization members regarding the functioning and existence of their organization to enhance the probability of organizational success. 13) Creativity and Innovation Skill: The ability to generate original ideas or new perspectives on existing ideas and to take steps to implement these new ideas. 14) Controlling Skill: The ability to use information and technology to ensure that an event occurs as it was planned to occur. 43 | P a g e  Crimson-Ghost 15) Production Skill: The ability to transform organizational resources into products. ❖ Leadership A leader (from English leader the one who guides, who goes forward) is a person in any group who enjoys a great recognized prestige and influence which manifests as managerial actions. The qualities of a leader: 1) Enthusiasm 2) Courage and bravery 3) Belief 4) Integrity 5) Loyalty 6) Interests 7) Friendliness 8) Humour inherent to a leader Functions of leader: They arise from the two contradictory sides of group's life. In relation to the outer aim, to the business sphere of group's life, one can distinguish such leader's functions as: 1) Realizing the group's aim. 2) Analysis and control of the environment. 3) Development of a plan to achieve the aim. 4) Control of the approaching the aim and correction of group's activity. 44 | P a g e  Crimson-Ghost In relation to the inner life of a group the leader has the following functions: 1) Providing outer security of the group, maintaining contacts and interaction with other groups. 2) Providing involvement of group-members in group activity. 3) Maintaining independence of group members for them not to lose their individuality, because the threat of such a loss causes them to act destructively. 4) Providing workability of group structure, control and influence of one group members on others needed for achieving the aim of the group, for fulfilling the developed plan. 5) Control limiting, optimal distribution of responsibility and power in the group. 6) Ensuring sufficient psychological proximity and compatibility of group members, preventing squabbles. 7) Prevention of redundant personal sympathies because this threatens prevailing of personal relationships over the movement to the goal, that is, the same squabbles. 8) Coordination of individual approaches to problem- solving so that they did not contradict, but supplemented one another. 9) Maximizing the involvement of abilities and aptitudes of group members for achieving the aim. 45 | P a g e  Crimson-Ghost A leader is characterized by mainly 5 qualities: 1) Mind or intellectual abilities 2) Dominance or prevailing over others 3) Self-confidence 4) Activeness or vitality 5) Competence The skills of effective leadership. 1) Leader’s convictions and values. 2) Skills in communication and relationships with people. 3) Co-operation between leader and personnel. 4) Development and rational use of goals achievement methods. 5) Readiness for risks when taking non-traditional decisions. 6) Preparedness to accept failure and considering adverse factors. 7) Transformation of plenaries power into authority power. 8) Mastering knowledge. 9) Self-education and education of managerial personnel. 46 | P a g e  Crimson-Ghost The difference between managers and leaders: A manager will direct employees with their work and tasks, whereas a leader will motivate them to do their best in their work and tasks. Managers are responsible for delivering orders, organising workload and flow, assigning tasks to their team members, tracking and managing results, and ensuring the job is done. With employees increasingly wanting more growth, flexibility, and trust in their work. A leader will focus on bringing out the best in people and getting them to use their skills and talent to inspire results. Staff will follow managers by nature of their job description and title, however they will follow a leader and their vision and encouragement voluntarily. A manager will ensure systems and structures are being followed, and a leader will look to the people to get things done through trust and empowerment. Due to a manager's key responsibility being on delivering organisational goals, they are likely going to follow organisational protocol and channels to achieve success. Leaders will focus on an employee's satisfaction and may look to new ways of achieving within the organisational and team framework. A manager tends to focus on process and status quo, a leader will constantly try to innovate and develop new and more efficient ways of doing things. Similar to the above, a leader will look at new and different ways of getting a job done. 47 | P a g e  Crimson-Ghost They will encourage forward-thinking individuals and teams, challenge the current process in order to seek greater success and efficiencies, and place focus on continual improvement. Managers are focused on short-term goals, whereas leaders are constantly looking forward and working through change. Since managers are tasked with ensuring set tasks are performed and goals are met, they are very focused on those tasks, goals, and the bottom line. It is about meeting expectations and accomplishing the objectives and mission set out by the organisation. A leader will assist in achieving this through empowering employees, but will also look at laying groundwork for the future, charting new growth, working in employee feedback and ideas into future plans, and considering investment for future profitability. Managers will share a vision or goal; leaders will sell it to people to get them on board and take them on a journey. Whilst managers communicate goals, plan details, and assign tasks, leaders will build excitement, gain stakeholder buy-in, and have a general direction which allows the team to move forward together. Managers focus on managing work and output, leaders focus on the people and leading them to achieve overall objectives. A manager's role and approach can be thought of as more transactional; they tell employees what they need to achieve and expect them to do their assigned duties. A leader is more strategic and tries to have employees use their own initiative and expertise to achieve and drive themselves forward, and trust them to be the best they can be. Managers have formal team members and subordinates; by following a leader, you do not necessarily have to report to them. 48 | P a g e  Crimson-Ghost A manager will ensure work gets done and has authority by nature of his role and title. They need to be more direct and focus on tactical activities to accomplish tasks. A leader doesn't necessarily have formal authority and based on their communication and behaviour, people will follow them and work towards what they want to get done. Managers have a transactional style and way of approaching their role, whereas leaders are more transformational. By a leader focusing on transformation, they shape culture rather than enforcing it and they drive passion and energy. It means transforming a staff member’s role, output, and overall team success. It is about appealing to the people around you and unlocking the potential of a team. Managers minimise risk, whereas leaders can be seen as risk- takers. This isn't to say a leader will break the rules; it is more about stretching themselves and their team for a potential greater pay-off and result, and doing what is right for the overall goal. It is more about harnessing opportunities and overcoming hurdles to make it into their competitive advantage. Social-and-emotional climate: Is defined as the prevailing in the collective considerably stable psychological mood of its employees which is manifested in multi-faceted forms of their activity. 49 | P a g e  Crimson-Ghost the inner climate-forming factors in organization: 1) Managerial style 2) Work process efficiency. 3) Employees' personal qualities. 4) Corporative (group) culture. 5) Psychological compatibility and harmony of people in work groups. 6) The ratio of men and women in a collective 7) The sizes of basic collective. 8) Collective's age structure. 9) Employees’ physical distance of collective members. 50 | P a g e