Report into Management Theories in Lanka PLC and ODEL

The chief aim of this study is to discourse the nature of administrations in relation to its direction patterns. In order to explicate the theoretical facets of this statement I have used two companies found in today ‘s concern environment. TATA communications Lanka PLC and ODEL were selected by me to explicate the differences between construction and civilization that exists practically. The internal and external web construction and how it works and its importance in both administrations have besides been discussed in this study. The different civilizations that exist have besides been explored in this study. The human resource map in an administration has besides been evaluated on the footings of forces direction policies and schemes adopted by companies. The different types of flexible working plans that directors use to actuate their employees have besides been identified in this study. The importance of a proper human resource map in an administration has been explained by looking at the different behavioral jobs that exist within an administration.

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The 2nd subdivision of this study focuses on the different theories and attacks of direction that are applicable to administrations. The development of direction through the ages from scientific direction to modern organizational theories has been evaluated. The benefits and drawbacks of each have besides been identified. The function of the director in different contexts has besides been provided in this study with an analysis of the difference between managerial functions in TATA and ODEL.

Statement of Originality of Submitted Work


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Nature and Background information of TATA Communications Lanka PLC and ODEL

Tata Communications is a taking planetary supplier of a new universe of communications. With a leading place in emerging markets, Tata Communications leverages its advanced solutions capablenesss and sphere expertness across its planetary and pan-India web to present managed solutions to multi-national endeavors, service suppliers and Indian consumers. The Tata Global Network includes one of the most advanced and largest pigboat overseas telegram webs, a Tier-1 IP web, with connectivity to more than 200 states across 400 PoPs, and about 1 million square pess of informations centre and collocation infinite worldwide.

Tata Communications ‘ deepness and comprehensiveness of range in emerging markets includes leading in Indian endeavor informations services, leading in planetary international voice, and strategic investings in operators in South Africa ( Neotel ), Sri Lanka ( Tata Communications Lanka PLC ), and Nepal ( United Telecom Limited ).

ODEL Limited was established in the twelvemonth 1990 and is one of the most advanced and prima manner retail merchants in Sri Lanka. ODEL Limited is chiefly involved in the sale of readymade Garments, Home-ware and other accoutrements. With 12 mercantile establishments situated in the bosom of Colombo every bit good as other major urban metropoliss such as Ja-Ela, Maharagama and Panadura, ODEL has had a successful 20 twelvemonth journey with a gross net income of Rs. 842.22 million as at the fiscal twelvemonth terminal 31 March 2010. The Company functioned as a Private Company until it was transformed in to a public company on 24th February 2010. As at 31 March 2010 there were seven stockholders who owned the full stated portion capital of the company.

ODEL ‘s board of managers include one Executive Director, Ms. Otara Gunewardene who is besides the Chief executive officer of the company, one non-executive manager, Mr. Ruchi Gunewardene, and three non-executive independent managers, Mr. Paul Topping, Mr. Sanjay Kulatunga and Mr. Eardley Perera.

Task One – Organizational Structure and Culture

1.1 Discussion on the types of administrations and associated constructions

An administration is a combination of individuals who have come together in order to accomplish a common end. Administrations can be public sector administrations, private sector administrations or voluntary sector administrations. In most cases private and public administrations will hold a commercial end of net income maximization by selling a merchandise or supplying a service. An administration will non be able to accomplish a common end if they are non organised decently. Therefore, a proper construction is needed to split the work among the different members of the administration, and organize their activities so that they are directed towards accomplishing the ends and aims of the administration.

An organizational construction will specify the undertakings and duties of all members, their work functions and relationships, and channels of communicating that would ease coverage and controlling of all activities undertaken by the administration. The demand for a formal construction is more of import for a big administration than a little one because of the volume of activities and the figure of resources involved.

There are three chief types of formal administration constructions.

Functional structures – this is where employees and the resources that are engaged in making one type of activity are grouped together. Therefore, there will be different sections in an administration grouped together based on the map they perform. For illustration, a company might hold an history section, a selling section, a fabrication section and a human resources section.

Divisional structures – Divisional constructions can be based upon the different products/ services offered by an administration, or on the different market types it sells to, or the different geographic locations of its subdivisions.

Matrix structures – this is where the organizational construction will be a combination of both functional and divisional constructions. The matrix construction is most suited for company ‘s that are involved in undertakings where employees from different maps or sections will be involved in one individual undertaking. They will be describing to their departmental caputs every bit good as to the undertaking director.

Apart from the above classification, the construction of administrations can besides be divided as Centralized Structure and Decentralized Structure. In a centralized organizational construction, all major duties will be handled by a few cardinal persons at caput office while in a decentralized organizational construction the assorted duties and decision-making powers will be spread across assorted degrees, divisions or subdivisions of the company.

1.1.1 ODEL ‘s Structure

The organizational construction of ODEL can be identified as a functional organizational construction. The chief maps of ODEL have been identified and divided in to divide sections which specialise in one peculiar map of the administration. This is one of the cardinal features of a functional administration. The major maps of ODEL can be categorised as Gross saless and Marketing, Procurement, Manufacture and Design, Research and Development, Accounting, IT and Human Resources direction. Each section has been given separate aims which are in line with the overall aim of the company. For illustration, the procurance section has to buy the natural stuff every bit good as finished goods at the most competitory monetary value without compromising the quality. This will in bend aid accomplish the overall aim of the administration of net income maximization while guaranting the highest quality of merchandises offered to clients. Budgets are besides set for each section and publicities will be tied to the accomplishment of these budgets. The overall duty of the section will be with the departmental caput that will in bend coverage to the CEO of the company.

The undermentioned benefits can be associated with ODEL holding a functional organizational construction.

Economies of graduated table with efficient usage of resources

Training would be made easier and more job-related

Can delegate the right expertness for the occupation

High degree of motive because of intense occupation satisfaction of employees making what they want to make and unclutter calling waies within the sections

Some of the disadvantages of a functional organizational construction are:

Poor communicating and coordination between maps

The CEO has to acquire involved in all determinations and therefore the decision-making procedure will be slow.

A loss of clear duty for merchandise bringing

Loss of overall administration position by overspecialised people who may besides demand higher wages

This type of organizational construction is a centralized construction where the duty of the bulk of determinations will be with the section caputs and the CEO of the company.

1.1.2 TATA ‘s Structure

The construction of TATA Communications can be identified as a divisional construction that is geographically based. The chief parent company, TATA Global Network is based in India and is a transnational company. The subordinate, TATA communicating is a separate division which has its ain CEO, Board of Management and different sections. The subordinate in Sri Lanka, TATA Communications has its ain set of ends and aims to accomplish. The parent company will retain overall control of the company although all other major determinations will be taken by the CEO of the company. TATA communications Lanka is a little company with less than 10 people employed in it. This is chiefly due to the nature of the service it provides which is telecommunication.

One of the chief factors that distinguish TATA Communications as a divisional, geographic-based construction is that it is being run as a separate net income Centre. TATA Communications can be said to hold a decentralized system where certain of import determinations will be made by the local CEO.

The divisional type organizational construction will convey about the undermentioned benefits to TATA Communication Lanka Limited.

TATA has a greater flexibleness of confronting alterations in the local environment and can accommodate consequently

Unlike ODEL it will hold improved coordination among its different maps

Since it is net income oriented, there will be end congruity in accomplishing an overall aim

Costss can be controlled better

Some of the drawbacks of a divisional construction are:

Will cut down economic systems of graduated table, disperse proficient competency and expertness

Create unhealthy competition among different subordinates within the TATA group

Addition costs due to duplicate of resources

As stated under the above treatment, ODEL is a centralized system whereas TATA is a decentralized system. The benefits obtained by ODEL by runing a centralized construction are being evaluated against the benefits obtained by TATA via a decentralized systems construction. The analysis identifies the undermentioned points.

Control – Senior directors in ODEL enjoy greater control over the administration while the senior directors in TATA have clip to concentrate on the most of import determinations as minor determinations will be taken by regional directors.

Procedures – The usage of standardized processs in ODEL will consequences in cost nest eggs. In TATA, Decision devising is a signifier of authorization. Authorization can increase motive and hence intend that staff end product additions.

Decision-making – At ODEL, determination profit the full administration instead than a separate section. The directors in TATA Lanka will hold a greater apprehension of the environment they work in and the people ( clients and co-workers ) that they interact with. This cognition accomplishments and experience will enable them to do more effectual determinations than senior directors in India.

In decision, it can be stated that every bit many bookmans believe there is no 1 appropriate organizational construction. Each administration has its ain distinguishable strengths, restrictions and applications. A peculiar organisational construction may be appropriate for certain undertakings in certain conditions at certain times, therefore the challenge for the direction is to prove and develop the construction that best suits their undertakings, context and environment.

1.1.3 Internal and External Network Structures

Internal webs exist within an administration between directors and subsidiaries. Internal webs are largely formal but there can be informal webs that connect the workers socially. Communication within these internal webs will be through lotus notes, intranet, telephone, memos, notice board and meetings.

An administration will besides hold several external webs linking the company with clients, providers, other administrations, industry regulators, rivals and bankers. Communication in external webs will take topographic point through electronic mail, telephone, fiscal statements and one-year general meetings with stakeholders.

The internal web construction in ODEL is more developed than in TATA because of the construction of the administration. TATA has merely one office with less than 20 employees while ODEL has a wider construction with over 12 mercantile establishments. The external web construction of both companies will be every bit strong because interaction with the industry and environment is critical to both companies.

1.2 Discussion on the functions and categorization of organizational civilization

Simply put, organizational civilization is the personality of the administration. It comprises of the psychological science, attitudes, experiences, beliefs and values ( personal and cultural values ) of an administration. Corporate civilization is the entire amount of the values, imposts, traditions, and significances that make a company unique. Corporate civilization is frequently called “ the character of an organisation ”, since it embodies the vision of the company ‘s laminitiss. The values of a corporate civilization influence the ethical criterions within a corporation, every bit good as managerial behaviour.

The relationship between organizational civilization and organizational construction is intertwined. The type of administration construction will depend to a great extent on the civilization that exists within an administration. By associating administration construction to organizational civilization the undermentioned types of organizational civilizations can be identified.

Power Culture – This is where power is concentrated within a little group of persons in an administration. Power and influence spread out from a cardinal figure or a group. Power Cultures have few regulations and small bureaucratism ; fleet determinations can result. ODEL ‘s civilization can be identified as a power civilization where the activities of the administration are controlled by a group of five managers.

Role Culture – This is where people have clearly delegated governments within a extremely defined construction. Typically, these administrations form hierarchal bureaucratisms. In this kind of a civilization there is small room for one individual to exercise full power over the full administration. A function civilization in an administration will affect processs, function descriptions and authorization definitions. TATA ‘s civilization can be said to be a function civilization where all places and duties are defined by the caput office in India. The policies and the processs of the company are decided by the top direction.

Undertaking Culture – This is where squads are formed to work out peculiar jobs. Power derives from expertness every bit long as a squad requires expertise. These civilizations frequently feature the multiple coverage lines of a matrix construction. It is all a little squad attack, who are extremely skilled and specialist in their ain markets of experience.

Person Culture – This exists where all persons believe themselves superior to the administration. Survival can go hard for such organisations, since the construct of an organisation suggests that a group of like-minded persons prosecute the organisational ends. Some professional partnerships can run as individual civilizations, because each spouse brings a peculiar expertness and patronage to the house.


Norms can be defined as attitudes and behaviors common to members of a peculiar group or society. About everything in human society is governed by norms of some sort. The manner we speak, the manner we behave and the manner we do things in general are all decided by the norms of our civilization. This is besides applicable non merely to society but besides in administrations. Part of the acquisition procedure is non merely to larn how to make the occupation but besides to understand the unwritten regulations, i.e. the norms of the administration.


Valuess of an administration define what is of import to the company. The company ‘s values will be communicated to all employees in order to unify the full administration in to a common manner of thought. These are termed espoused values of the company. Values-in-action are the values that the company patterns on a day-to-day footing. The direction has to be careful to do certain that its espoused values match the values-in-action in order to avoid being termed as a ‘hypocrite ‘.

1.2.1 Human Resource Function in an Administration

The human resources map is comprises of hiring and developing employees so that they become more valuable to the administration. It includes ( 1 ) carry oning occupation analyses, ( 2 ) planning forces needs, and enlisting, ( 3 ) choosing the right people for the occupation, ( 4 ) orienting and preparation, ( 5 ) determining and managing rewards and wages, ( 6 ) supplying benefits and inducements, ( 7 ) measuring public presentation, ( 8 ) resolution differences, ( 9 ) pass oning with all employees at all degrees. The human resource map can be viewed otherwise from the position of each different stakeholder group.

Stockholders – stockholders of the company see employees as assets of the company and will anticipate the direction to use this resource in accomplishing their marks of maximized net incomes.

Employees – Employees of the company will anticipate the human resource section to assist accomplish their personal ends.

Customers – clients will merely care about the services and merchandises they receive and will anticipate the employees to be decently trained in functioning them.

Personal policies are the guidelines laid down by the direction to cover with the human resources of the company. Policies of companies will change from company to company because the policies developed by one administration will depend on the nature and demands of that administration. Personnel policies can be listed harmonizing to the maps performed by the human resource section.

Work Schedule – Work twenty-four hours hours, Lunch periods, Holidays, Vacation, Sick Time, Personal Leave and Leave of Absence.

Hiring Procedures – Interviewing occupation campaigners, look intoing mentions and offering employment.

Compensation – Paydaies, Overtime and compensation clip, Classifying employees as exempt or non-exempt, Salary ranges, Positioning wage within a salary scope, Keeping competitory salary information, Reclassifying places, Salary reappraisal policy, Promotional increases, Withholding salary addition due to public presentation, Withholding salary addition due to go forth of absence.

Payroll Information & A ; Timekeeping Procedures – Payroll information/ General, Payroll information/ direct sedimentation processs, Payroll information/required and voluntary paysheet tax write-offs, Timekeeping/ general treatment of non-exempt and exempt employee categorizations and Supervisor ‘s signature.

Benefits – Eligibility and general information, Types of available benefits, Medical insurance, Dental insurance, Disability insurance, Supervisory communicating, Life insurance, Confidentiality note, Retirement program, Social security and Employee consultative resource.

Workers ‘ Compensation Information and Procedures – When there is an hurt or accident on the occupation, What is covered under Workers ‘ Compensation, Type of hurt covered by Worker ‘s Compensation Insurance, Medical disbursals ensuing from a work-related hurt and resources available.

Performance Assessment Procedures – Performance assessment rhythm, Performance appraisal procedure, covering with public presentation issues, Discipline: when the positive attack does non work, Separation from employment checklist, Communications by the supervisor sing forces issues, COBRA ( Consolidated Budget Reconciliation Act ) and Leave-taking processs.

1.2.2 Flexible working plans

Flexible working plans are used by the human resources section as a enlisting maneuver. Some of the most popular flexible work agreements are ;

Flex Time: Employees are offered a scope of get downing and stoping times for the working day ; most displacements with a compulsory “ nucleus ” clip in the center of the twenty-four hours.

Compressed work hebdomads: Employees work 40 hours in fewer than five yearss. A 10-hour, four-day hebdomad is normally used, or another alternate such as working nine yearss out of 10 in a two-week agenda.

Telecommuting: Employees work from place or another distant location on an sanctioned agenda.

Part-time Work or Job Sharing: Employees work fewer hours, or two employees portion the same place, dividing the duty for the work between them.

Advantages of flexible working plans for both employer and employee

Improved occupation satisfaction, morale, and productiveness.

Enhanced employee enlisting and keeping.

Increased energy and creativeness.

Reduced absenteeism.

Reduced emphasis and burn out.

Improved balance of work and household life.

1.3 Diagnosing behavioral jobs in administrations

An administration will hold different people working in it. Every human being is non the same and hence every employee will besides differ from one another. Theses difference are due to their household background, educational makings, work experiences, income degrees, accomplishments they have, their personality, ability and attitudes towards different state of affairss. Therefore, with such a diverse work force any administration is bound to confront several behavioral jobs. The company has to cognize how to manage these different individuals because each one is of import and has an assigned and specific function to play in the company. Therefore, the administration will hold to cognize the best manner to cover with the employees. Each employee will necessitate a different method and the company has to come up with a good scheme to cover with the assorted individuals the company employee.

In order to cover with a diverse human resource base, particularly found in big administrations, the company needs to follow certain constructs, rules, methodological analysis, and work-related processs to steer the employees in making what the direction wants them to make. Concepts define the principle for making something. If the employees are made to understand the logic behind making a certain activity there will be less room for struggles and misconstruing. Principles are the ways a thing should be dome and will assist to steer employees in accomplishing the aim of transporting out that undertaking. Methodology and work – related processs is the criterions, regulations and processs set by the company. These will normally be communicated to the employees at initiation and besides at assorted developing programmes.

Each employee ‘s positions, i.e., the manner they look at something will besides be different. Directors will hold a different position on how to work out a job while subsidiaries will besides hold their ain single manner of looking at things and making the activities assigned to them. Employee ‘s position will differ harmonizing to their single beliefs, attitudes and what ‘s truly of import to them. Some employees may desire a higher wage while some others would value acknowledgment and self-image more. These diverse sentiments and methods will do several jobs in the administration. It is besides of import to observe here that struggles are non limited to subordinates entirely but at that place can besides be board-room struggles between top degree directors every bit good. The most of import manner to decide a struggle is through communicating and apprehension. Communication will assist unclutter away misinterpretations, steer the employees in the right way and assist accomplish harmoniousness in the administration. A company that works together will be in a better place to accomplish it marks and ends successfully.

Undertaking Two – Examination of different attacks to direction and theories of administrations

2.1 The Development of Management through Organisational Theories

Organizational theories can be classified under the two wide headers of Classical organizational theories and non-classical ( modern ) organizational theories.

2.1.1 Classical Organisational Theories

Classical administration theories deal with the formal administration and constructs to increase direction efficiency. Fredrick Taylor presented scientific direction constructs, Weber gave the bureaucratic attack, and Fayol developed the administrative theory of the administration. They all contributed significantly to the development of classical administration theory.

Scientific Management Approach ( by Fredrick Winslow Taylor ) – This is based on the construct of planning of work to accomplish efficiency, standardisation, specialisation and simplification. The attack to increased productiveness is through common trust between direction and the employees of the company. The four rules of scientific direction are:

i‚· Science, non rule-of-thumb – Work is carried out harmonizing to planned processs and non indiscriminately based on tradition or the best manner known to the employee.

i‚· Scientific choice of the worker – Employees are selected based on some analysis, and so trained, taught and developed.

i‚· Management and labour cooperation instead than conflict – Management will work together with the employees harmonizing to the planned processs that are in topographic point.

i‚· Scientific preparation of the worker – Workers are trained by experts, utilizing scientific methods.


The work tends to be tiring since it is everyday and flows harmonizing to a pre-planned construction.

Gives the direction a really high control of power over the employees. This can take to development of labor.

This theory does non place the societal facets of working and ignores the higher demands of the employees.

The discrepancy between each worker and his/her demands are ignored.

Ideas and suggestions of workers are non considered in decision-making.

2. Bureaucratic Approach ( by Max Weber ) – This considers the administration as a portion of broader society. The administration is based on the rules of:

Structure in the administration – places should be arranged in a hierarchy, each with a peculiar, established sum of duty and authorization.

Specialization – Undertakings should be distinguished on a functional footing, and so separated harmonizing to specialization, each holding a separate concatenation of bid.

Predictability and stableness – The administration should run harmonizing to a system of processs dwelling of formal regulations and ordinances.

Rationality – Recruitment and choice of forces should be impartial.

Democracy – Duty and authorization should be recognised by appellations and non by individuals.


Overspecialisation will contract the direction position point and they will non look at the larger image when doing determinations.

Rigid processs will decelerate down decision-making and hold administration ‘s response to alter.

Lack of critical thought will non assist the administration to rectify errors and travel frontward.

Does non heighten the accomplishments of the employees.

3. Administrative Theory ( by Henry Fayol ) – In this theory, all activities that occur in an administration is divided in to six chief groups which are, proficient, commercial, fiscal, security, accounting and managerial. These are interdependent and it is the function of the direction to guarantee that they work swimmingly together. The 14 rules of direction identified by Fayol are: Division of labor, Authority and duty, Unity of Command, Line of Authority, Centralization, Unity of Direction, Equity, Order, Initiative, Discipline, Remuneration of Personnel, Stability of Tenure of Personnel, Subordination of Individual Interests to the Common Interest, Esprit de Corps.

2.1.2 Non-classical/ Modern Organisational Theories

Modern organizational theories recognize the importance of group behavior and human dealingss in finding productiveness instead than mere alterations in working conditions as suggested by the classical organizational theories described above. It is believed that productiveness additions were achieved as a consequence of high morale which was influenced by the sum of single, personal and intimate attending workers received.

The classical organizational theories stresses on a formal organisational which is mechanistic and ignores major facets of human nature. In contrast, the modern organizational theories negotiations about informal administrations and emphasizes on the:


Work group, and

Participative direction

The three chief modern organizational theories are:

The System Approach,

Socio-technical theory, and

The eventuality or situational Approach

The System Approach is where administrations are viewed as a system made up of connected sub-systems. These sub-systems can hold their ain sub-sub systems. A system can be constituents, maps or procedures of an administration.

A system attack focuses specialization by spliting constituents of an administration in to stand in and sub-sub systems. By grouping similar activities harmonizing to map will cut down complexnesss. Under this attack administrations are categorised in to three basic elements, constituents, associating procedures, ends of the administration.

Under the Socio-technical Approach an administration is identified as consisting of people, proficient systems and the environment. Peoples ( the societal system ) usage tools, techniques and cognition ( the proficient system ) to bring forth goods or services valued by consumers or users ( who are portion of the organisation ‘s external environment ). Therefore, balance among the societal system, the proficient system and the environment is necessary to do the administration more effectual.

The Situational/ Contingency Approach is based on the belief that there can non be cosmopolitan guidelines which are suited for all state of affairss. Organizational systems are inter-related with the environment. The eventuality attack suggests that different environments require different organizational relationships for optimal effectivity, taking into consideration assorted societal, legal, political, proficient and economic factors.

Taking in to consideration the development of direction theories through clip, it can be concluded that there is no 1 right theory that would use to all administrations. While the classical organizational theories focused on work, the non-classical/ modern organizational theories focus on the workers. This is more apparent in the bureaucratic direction attack where employees are non counted as individuals or persons but as appellations that have been classified in to clear cut functions in the construction of a company.

The scientific theory is more suited for fabricating mills with mass production while the bureaucratic attack is more appropriate for authorities administrations, armed forces, infirmaries, athleticss nines and NGOs.

Scientific direction theory revolves around be aftering the work of employees in a logical mode to accomplish efficiency and productiveness. Planing to a certain grade will surely assist an administration but will non guarantee efficiency and productiveness in the current concern universe which is altering all the clip. A situational attack might be best suited but modified to include an component of planning.

Furthermore, it is besides of import that there are clear cut functions and duties in an administration as suggested by the bureaucratic attack. This will assist in deputing work, particularly if the construction of an administration is broad and geographically dispersed. While it is of import to apportion duty and authorization based on deputations, a worker ‘s committedness towards accomplishing the ends of the company should non be ignored. Therefore, an administration must strike the right balance between workers and the work to be done in order to better productiveness and jointly achieve organizational ends.

2.1.3 Functions of Management

There are five basic maps of direction that focuses on the relationships between forces and the direction of a company.

Planing – this is make up one’s minding in progress what to make, how to make it, when to make it, and who should make it. Planing helps to place where the company is now and where it wants to be in the hereafter. The planning map involves set uping ends and set uping them in a logical order. Planning can be both short-run and long-run.

Organizing – this involves placing activities that need to be performed, categorising them in to sections or divisions, and stipulating the relationships between each section or division.

Commanding – is prima people towards accomplishing the ends of the company. Lack of clear way will take to inefficiencies and waste of valuable resources. One of the chief accomplishments that a director should hold is to keep a balance between employee demands and accomplishing organizational ends.

Organizing – involves the efficient allotment of resources and supplying effectual support systems towards accomplishing organizational ends. The direction has to guarantee that all resources work together and there are no struggles and duplicate of work that would blow scarce resources of the company.

Controling – is look intoing whether all activities are carried out harmonizing to program. Discrepancies between the existent and planned are analysed and grounds for such identified. This ensures high-quality public presentation and satisfactory consequences while keeping a problem-free environment.

For illustration, one of the ends of a retail vesture shop such as ODEL might be to open three mercantile establishments within the following fiscal twelvemonth. The direction will be after on how to finance this thought, where to turn up the mercantile establishments, and the clip frame of when the mercantile establishments will be operational. Once this is planned, the direction will organize the activities that need to be performed. The support would be given in charge of the finance section while the gross revenues and selling section will be given the duty of happening suited locations. The HR section will look for the right people to staff these mercantile establishments. Once all activities are organised the direction will hold to direct all these activities towards accomplishing the set mark. During the executing of the undertaking, the direction will command the activities by changing out discrepancy analysis and audit to digest that everything is done harmonizing to program.

2.2 Managerial Roles in an Administration

As explained under subdivision 2.1.3 above, directors have a assortment of maps to execute and hence will necessitate to take on multiple functions ( organized sets of bahaviour ) in the administration. Harmonizing to Henry Mintzberg there are 10 common functions which any director assumes in an administration. These 10 functions are divided under three classs viz., Interpersonal, Informational and Decisional.

Interpersonal – the interpersonal functions of a director is chiefly concerned with interpersonal relationship. Under this class, a director will execute the undermentioned three functions.

Figurehead – the director represents the administration in all formal state of affairss, lawfully and socially.

Leader – the trough will make a good working environment to actuate and develop subsidiaries.

Liason – the director will develop and keep good relationships with external parties such as clients, providers and Bankss.

Informational – by furthering direct relationships the director will be able to garner relevant information. There are three functions that deal with the informational facet of managerial work.

Monitor – the director will garner internal and external information relevant to the administration.

Disseminator – the trough will go through on information to subsidiaries and higher-ups.

Spokesperson – the director will pass on the public presentation and policies of the company to the outside universe.

Decisional – entree to information will put the director in a decision-making function in the administration. There are four decisional functions.

Entrepreneur – the director will plan and originate alteration in the administration.

Disturbance Handler – the trough will cover with the menaces to the administration.

Resources Allocator – the director will command and empower the usage of organizational resources.

Negotiator – the director will take part in dialogue activities with other administrations and persons.

Managerial Roles in TATA

The directors in TATA Communications Lanka PLC will presume interpersonal functions when meeting with the telecommunications regulators, by making a good work environment to all employees and keep good relationships with other telecommunication companies such as Dialog and Mobitel and besides fiscal establishments such as Bankss. The director will besides presume informational functions by garnering industry related information by go toing forums and other industrial meetings. This information will so be passed on to the employees ( e.g. alterations in rates ) every bit good as higher-ups ( e.g. alterations in policies ). The directors will besides move as the interpreters of the company by pass oning the public presentation of the company to the caput office in India every bit good as to the other stakeholders of the company. The directors will so presume decisional functions in planing new or revising the old rate constructions and policies harmonizing to the information received. The directors will besides necessitate to make up one’s mind on the best methods to remain competitory in the industry by apportioning the company resources to cut down costs and increase net incomes. The directors will besides hold to negociate better rates with other telecommunication providers such as Dialog and Mobitel.

Managerial Roles in ODEL

The directors on ODEL will further interpersonal relationships by go toing all formal meetings such as manner shows, run intoing with clients as representatives of the company. They will besides hold to keep proper relationships with all the workers in the mercantile establishments by making a good working environment. Relationships with external parties will besides be maintained by holding regular meetings with providers and happening out client penchants. Using these relationships the directors in ODEL will be able to garner valuable information such as tendencies and pass it on to the interior decorators of apparels. The public presentation of each mercantile establishment will be communicated to the caput office the consolidated informations will be made available to external parties through fiscal statements. The information gathered will besides assist the directors to apportion staff to the busiest mercantile establishments and besides negotiate better monetary values with providers harmonizing to the prevailing rates in the market.

Nature of Managerial Authority


This refers to the director ‘s ability to acquire the subsidiaries to make what he or she wants them to make. Directors can act upon employees straight or indirectly. Employees are lawfully bound by their service contracts to make what the director wants within the range of their work contract. Directors can get power by deriving control over resources, roll uping information and besides commanding the information channels, and set uping favorable relationships both within and outside the administration.


In the context of a director, this is the formal or legitimate authorization specified in the Articles of Association of a company that gives a director to move on behalf of the company. There are different types of authorization. Position authorization is the director ‘s authorization that is enforced by his/her appellation. Coercive authorization is where the director ‘s can actuate employees by penalty. Expert authorization is earned by the director ‘s accomplishment and expertness. Referent authorization is the ability of the director to act upon through personal appeal, personality and appeal. Reward authorization refers to the ability of a trough to present something of value.


Directors are allocated assorted duties and these can change from place to place. Departmental caputs will be responsible for oversing and pull offing the overall public presentation of staff in his section while the quality director will be responsible in developing schemes to better the quality of goods produced. Higher degree directors will be responsible in accomplishing organizational ends, vision and aims while the finance and accounting director will be responsible in maintaining costs under control and supplying accurate fiscal information. The human resource director will be responsible for choosing, preparation, calling development, publicities and retaining the employees of the administration.


Deputation is the passing of duty of one degree of direction to a lower degree. it takes more clip to explicate what to make, subordinates lack the cognition, accomplishments and experience necessary, deficiency of trust in subsidiaries and the possible effect of errors being made, subsidiaries do non desire extra duty, and sometimes directors are scared to depute because they are afraid to lose their occupation of their subsidiaries performs better than them. When a director delegates duty to another, he still is accountable to another senior director sing the delegated affair.

Deciding Conflicts

Conflicts can originate due to differences in sentiment, civilization, tradition, household and societal background, instruction degree, etc. directors should step in instantly to work out struggle in the company because even a little struggle between two employees can hold detrimental effects on a company. Therefore, directors should use all possible methods to decide a struggle. This can be by speaking to the parties concerned, pass oning the right information to employees and obtaining feedback from them. Communication both strains and resolutenesss communicating and therefore should be closely monitored by the directors.


The organizational construction or the internal working frame of any administration will be different and be made suited for the intent of that administration. Administrations can follow a functional construction, a divisional construction or a matrix construction depending on what its ends and aims are and how they wish to accomplish them. Likewise the organizational civilization which explains the alone manner in which things are done is determined chiefly by the construction of the administration. Culture is made up of norms and values. Most of the companies have publicized their values in their fiscal statements to demo the stakeholders what ‘s of import to them.

Depending on the different civilizations that exist in an administration, the method of work outing jobs will besides differ. Human capital is the most of import resource available to any company and hence every possible method is taken to guarantee that the human resource map is swimmingly operated in the administration. This is done by set uping a Human resources section, explicating and implementing forces schemes which should be in line with the personal ends of the employee every bit good as the company.

Management theories have evolved during clip employees who were one time looked at mere assets that could be controlled to acquire maximal use for the company to human existences who have their ain set of ends that they wish to accomplish during their life-time. The function of the trough has besides evolved with the direction theories.


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