PRINCIPLES OF MANAGEMENT

ASSIGNMENT
(2022-23)
-Submitted to
Dr. Teena Bharti

-By Chahak Lohia

(IPM/2274/02)
 “Whether
people are in the limelight or not, they nevertheless have an opportunity to
bring a big-picture perspective to every choice and consider the consequences
not just for themselves but for their colleagues, organizations, and,
ultimately, the world.
Once people do that, the ethical implications of their
actions suddenly crystalize, leading them to make even better decisions that
snowball. By creating that context, good leaders can set the stage for others
to more easily make better decisions that benefit everyone”.
“We often think in terms of the leader as guiding a
factory of decisions,” Moore says .
1. Based
upon the above context, how can people become both better decision-
makers and
leaders?

Decisiveness is one quality that springs to mind when we consider what makes a
great leader. Successful leaders don't stand around looking hazy and unsure, in
our opinion. Instead, we see them as decision-makers with the ability to clearly
explain their intentions to others. There is a noticeable distinction between being
a boss and being a leader. A leader inspires where a boss manages; a leader
directs where a boss orders. The difference is in how you treat your staff and
how you see your working relationship with them. A good leader sets an example
and believes it is their duty to encourage, mentor, and nurture their team
members so they can grow. Great leaders are able to make decisions that benefit
themselves, their teams, their stakeholders, and their companies by striking a
balance between emotion and logic. Because these kinds of judgements involve
change, uncertainty, anxiety, tension, and occasionally the unpleasant reactions
of others, making wise choices in challenging circumstances is no easy task. A
person needs to be emotionally intelligent to be a good decision maker and
therefore a good leader. One of the most crucial characteristics a leader must
have is emotional intelligence, or the capacity to comprehend and regulate your
own emotions as well as those of others. Self-awareness, self-management,
social awareness, and relationship management are all parts of emotional
intelligence.
- Self awareness: All facets of emotional intelligence are built on self-
awareness. It requires the capacity to honestly evaluate yourself. You
must be conscious of your ideas, feelings, and behaviours before you can
change.

- Self-management: requires having the capacity to comprehend and

regulate your emotions, accommodate change, and cultivate a positive
viewpoint.
 - Social awareness: Similar to self-awareness, social awareness also
requires understanding the thoughts, feelings, and behaviours of others
and knowing how to interact with them.

- Relationship management: which encompasses skills like being influential,

inspiring, and encouraging others, is essential for successful leadership

Emotions of the leader are contagious. Because a leader's attitude will affect others and set
the tone for the emotional climate in a company, resonant leadership is crucial. Once you
have mastered this skill, you will be able to identify your feelings, allow them to influence
you without letting them cloud your judgement, and calmly and clearly communicate your
decisions to others even when you are dealing with strong feelings from both yourself and
others. Being able to communicate effectively is just as crucial as being able to make wise
decisions. Imagine yourself in a stressful, high-stakes situation where you had to decide
what to do right away and there was a large potential negative. Your emotional response
would probably be strong, and you might experience emotions like dread, rage, or anxiety.
Unfortunately, these kinds of feelings interfere with our capacity to make wise choices. Our
natural instinct is to defend oneself as we enter the emotional section of our brain. We
experience an adrenaline rush or a flight-or-fight response, and our immediate priority is
our short-term survival. As you can expect, being in this state makes it difficult to come to
long-term, strategic decisions. The methods listed below can be used to develop emotional
intelligence:
1. Communicate in an assertive manner.
2. In times of disagreement, respond rather than react.
3. Utilize active listening skills.
4. Be motivated.
5. Work on techniques for keeping a positive outlook.
6. Work on your own awareness.
7. Be open to criticism.
8. Show compassion for others.
9. Use your leadership abilities.
10. Be sociable and approachable.
11. Practice gratitude
12. meditate regularly and be mindful, etc.
These simple 5 actions can help someone make better decisions:

1. Recognize important variables that will influence a decision's outcome: Strong decision-
making demands outstanding analytical and interpretive abilities. These help identify the
concerns that must be taken into consideration and solved during the deliberation and
implementation phases.
2. Accurately analyse options and set priorities: Effective leaders are able to gauge the
worth of options and articulate the rationale for their assessment.
3. See logical conclusions and anticipate outcomes: In environments that are clearly defined
and rigidly structured, skilled strategists make logical deductions. They can then examine
how each component influences and limits decision-making, as well as its applications and
ramifications. It is important to take into account laws, rules, fundamental presumptions,
fundamental principles, and protocols.
4. Navigate risk and uncertainty: The most skilled managers determine which inferences to
draw in uncertain settings are the most likely and best supported. The information provided
may be vague or imprecise, and the appropriate inference is not always a given. Future
events are never known.
5. Leaders must be able to assess, interpret, and evaluate crucial information that is
provided in charts, graphs, text, or tables. Reason clearly in situations demanding
quantitative analysis. They need to be aware of the implications of the figures and how this
affects their choices.
To sum up, in order to make wise decisions, a person must be emotionally intelligent,
mindful, and able to appropriately evaluate and analyse. When it comes to leadership, one
should be aware of the best style to use. A good leader is someone who knows which style
is best for which situation, who will be able to assess what to do and how to do when things
come his way. There are many different types of leadership styles, and each style is
distinctive in its own manner.

2. Do
your think a leader needs a moral compass rooted in the notion that a good
decision works toward the collective good. If yes or no, substantiate
with the help of examples.

‘’An ethical leader is someone who lives and dies for integrity. Doing the right thing, even
when it hurts, is the guiding principle of an ethical leader.’’

An individual's capacity to distinguish right from wrong and behave accordingly is referred
to as having a moral compass. This tool supports ethical decision-making by helping to
assess whether a course of action will be advantageous or detrimental to other people,
society, or the environment. Additionally, it helps people realise how their behaviour may
affect other people and cultures. Beyond ethical leadership, moral leadership focuses on
personal values (such as honesty, decency, selflessness, and responsibility) and role
modelling. Therefore, moral leadership affects how much people identify with and trust
their leader, which in turn may have an impact on how people behave. An important focus
of moral leadership is on the part of ethics in making important decisions.
The Ratan Tata. Tata firm is renowned for its moral and welcoming workplace culture, as
was covered in class. When his business was facing a crisis, he would have compelled his
employees to work. Like a moral leader, he communicated his worry about the situation,
and the employees agreed to donate one month's pay to the organisation. All of these
leaders were effective only because they were motivated by deeply ingrained moral
principles. Leading groups of individuals and organisations toward a higher moral goal is
known as moral leadership. Global moral leaders are those who affect and transcend their
communities but ultimately have an impact on people and organisations around the world
over the course of their careers. Example: Mahatma Gandhi and Martin Luther King.
For instance, under Mycoskie's direction, Toms Shoes continues to use ecologically friendly
production methods to guarantee that its materials are reusable and have a low carbon
footprint. According to the organization's "TOMS 2019 Global Impact Report," over the last
13 years, they have had a positive impact on over 96,500,000 lives and given out over $6.5
million in awards. Business leaders who encourage moral behaviour not only within their
company but also in the industry at large have the chance to advance global change.
A just and ethical leader is one who has high standards for both morals (morals refers to
something that a person identifies with in relation to people and situations that they deal
with on a daily basis or simply of or relating to principles of right and wrong in behaviour)
and managerial ethics (Managerial ethics is a set of principles and rules dictated by upper
management that define what is right and what is wrong in an organization).
It might be simpler to make decisions in a just world. But because the world is not just, we
frequently find ourselves in morally difficult situations. When faced with two options, none
of which are entirely ethically acceptable, a person faces an ethical dilemma, also known as
a moral conundrum or an ethical paradox. When an organisational decision-maker must
choose between two or more options that have an influence on I the profitability and
competitiveness of the organisation; and (ii) stakeholders, a business dilemma occurs. Right
decisions can now be made for the greater welfare of society with the aid of a moral
compass.
Example: The FBI was able to obtain the iPhone used by one of the shooters in the San
Bernardino, California, terrorist incident that left 14 people dead and was motivated by ISIS
in December 2015. The FBI sought to access the data on the phone as part of the inquiry but
was unable to get beyond its encryption software. After that, the Justice Department
managed to secure a court order obliging Apple to assist the FBI in unlocking the phone. The
court's public challenge by Apple CEO Timothy Cook in an open letter sparked a heated
discussion about how to strike the right balance between preserving national security and
preserving user privacy. First, Apple claims that by effectively requiring the firm to write
code, the injunction violated its First Amendment right to free speech by compelling the
corporation to "say" something that it did not want to. Second, if developed, a backdoor like
this may end up in the wrong hands and endanger the privacy of all iPhone users. However,
this case in itself is very debatable whether apple did right or wrong. Whether what Tim
cook did what morally right or wrong is on you to decide, it varies from one person to
another according to varing perspective. Situations like these are something in which moral
compass is required to be able to decide.
Taking an example from ancient scripture- Mahabharata , Bhishma was highly driven by his
set of values and morals( serving his father and later on grandsons Kauravas because of his
vachana) at the stake of managerial ethics( left the throne for his father’s wish) which could
have led to greater good of the society. This is also a situation where moral compass or
Bhishma’s morals didn’t allow him to go against his father. Many says that it would have
been better had Bhishma kept his morals aside for greater good of the society ( the empire
could have got a strong king and maybe things would not have turned the way they did).
Another example is that suppose a person is dieing in front of you. To save that person you
can break the medical store behind you (steal) which may be morally correct or you may
wait fir ambulance to come which may be ethically correct but you know that it may take
time and the person may die. To follow your moral compass , the medical store needs to be
broken leading to owner’s loss but saving someone’s life.
Conclusion: From what all I have interpreted till yet while doing research on this, though in
most of the cases leader needs a moral compass rooted in the notion that a good decision
works towards the collective good. However, that may not always be the case. A just leader
is the one who knows how to balance between morals and managerial ethics and take
decisions accordingly by weighing all the pros and cons of the situation to promote
collective good. Afterall, what is a good decision in itself is very subjective in itself. I believe
that it’s not always possible to promote absolute collective good. However, a good leader is
one who is able to maximize this collective good by looking at all sides of the situation.