Management Roles & Skills: Henri Fayol’s 14 Principles, IT Leadership, Conflict Resolution

TAKEAWAYS:

• Managers fulfill four key roles (Mintzberg’s framework) and must balance technical, human, and conceptual skills—especially IT managers who bridge tech and people.
• Fayol’s 14 principles (e.g., division of work, unity of command) remain foundational for organizing teams, but modern agile teams adapt them flexibly.
• Conflict resolution in IT projects (e.g., eSewa’s payment delays) requires negotiation, compromise, or smoothing—techniques tied to communication styles.
• IT officers in banks (e.g., Nabil Bank) need technical expertise to manage systems but human skills to train staff and conceptual skills to align tech with business goals.
• Omnipotent vs. symbolic management explains why some leaders (e.g., Daraz’s CEO) micromanage while others (e.g., Pathao’s founders) delegate—both have trade-offs.
• Management by Objectives (MBO) is used by NEPSE to track stock performance goals and by NTC to improve network reliability metrics.

1. Definition of Management

Management is the process of achieving organizational goals efficiently through planning, organizing, leading, and controlling human and material resources. It involves coordinating people, processes, and technology to maximize productivity and adapt to change.

Key Idea: Management is not just supervision—it’s about strategy, problem-solving, and enabling teams to perform.

2. Management Roles (Mintzberg’s Framework)

Henri Mintzberg identified three broad categories of managerial roles, each requiring different skills:

mindmap
  root((Management Roles))
    Interpersonal
      Figurehead["Represents the organization (e.g., signing contracts)"]
      Leader["Motivates and guides teams (e.g., Pathao drivers)"]
      Liaison["Networks with stakeholders (e.g., NTC with ISPs)"]
    Informational
      Monitor["Scans environment for trends (e.g., Daraz tracking e-commerce shifts)"]
      Disseminator["Shares info with team (e.g., Nabil Bank’s IT updates)"]
      Spokesperson["Communicates to external audiences (e.g., Khalti’s PR)"]
    Decisional
      Entrepreneur["Innovates (e.g., eSewa’s digital wallet)"]
      Disturbance Handler["Resolves crises (e.g., NTC’s network outages)"]
      Resource Allocator["Assigns budgets/teams (e.g., Himalayan Java’s supply chain)"]
      Negotiator["Bargains with suppliers (e.g., Daraz with logistics)"]

Why It Matters:

• IT managers spend ~70% of time on interpersonal roles (mentoring devs) but must also monitor tech trends (informational) and allocate cloud budgets (decisional).
• Example: A Ncell IT manager must act as a liaison with vendors (Samsung, Huawei) while handling network failures (decisional).

3. Skills of a Successful Manager

Managers need a balanced mix of skills, categorized by Robert L. Katz:

Visual:

Worked Example: Case: Nabil Bank’s IT Manager

• Technical: Ensures core banking software (e.g., FIS) runs smoothly.
• Human: Trains tellers on digital transactions (reducing errors by 20%).
• Conceptual: Decides to migrate to cloud (AWS) to cut costs by 15%.

4. Henri Fayol’s 14 Principles of Management

Fayol’s principles provide a classic framework for organizing work, though modern teams adapt them (e.g., agile sprints replace rigid hierarchies).

Visual:

mindmap
  root((Fayol’s 14 Principles))
    Organizational Structure
      Division of Work["Split tasks (e.g., NTC’s call-center vs. tech teams)"]
      Unity of Command["One boss per employee (e.g., Himalayan Java’s shift managers)"]
      Scalar Chain["Clear hierarchy (e.g., Nabil Bank’s branch-to-HQ reporting)"]
      Order["Logical workspace (e.g., Daraz’s warehouse zones)"]
    Human Factors
      Discipline["Rules enforced (e.g., Pathao’s driver punctuality)"]
      Equity["Fair treatment (e.g., eSewa’s transparent fee structures)"]
      Stability of Tenure["Long-term roles (e.g., experienced traders at NEPSE)"]
      Initiative["Employee-driven ideas (e.g., Google’s 20% time policy)"]
      Esprit de Corps["Team spirit (e.g., NTC’s ‘Team NTC’ slogan)"]
    Leadership & Control
      Authority & Responsibility["Clear roles (e.g., Khalti’s compliance officer)"]
      Centralization["Decision-making levels (e.g., Himalayan Java’s barista autonomy)"]
      Remuneration["Compensation (e.g., NEPSE broker bonuses)"]
      Unity of Direction["Single goal per team (e.g., Daraz’s ‘customer-first’ focus)"]

Exam Tip:

• Compare Fayol’s principles with modern management (e.g., "How does agile contradict ‘division of work’?").
• Link to Nepal: Use NEPSE, NTC, or Daraz as examples for centralization vs. decentralization.

5. Conflict Management Techniques

Conflicts arise in IT projects (e.g., eSewa’s payment delays), teams (e.g., Ncell’s 5G rollout), and organizations (e.g., Nabil Bank’s branch vs. HQ disputes). Kenneth Thomas and Ralph Kilmann’s five styles help resolve them:

Visual:

Worked Example: Case: eSewa vs. Khalti Payment Delay

• Conflict: Both platforms refused to integrate with NMB Bank’s UPI system.
• Resolution:
  1. Avoiding: Initially, both delayed discussions.
  2. Collaborating: Held a joint meeting with NMB to design a shared API.
  3. Compromising: Agreed to split development costs 50/50.
• Outcome: Reduced transaction friction by 30%.

6. Omnipotent vs. Symbolic Management Thought

This debate explains how much control managers truly have:

Visual:

7. Management by Objectives (MBO)

MBO is a goal-setting framework where managers and employees collaborate to define SMART objectives (Specific, Measurable, Achievable, Relevant, Time-bound).

Process:

flowchart TD
  A["1. Define Objectives"] -->|"e.g., 'Increase NEPSE trading volume by 15%'"| B["2. Set SMART Goals"]
  B -->|"e.g., 'Add 5 new brokers/month'"| C["3. Develop Action Plans"]
  C -->|"e.g., 'Hire 2 analysts, train 3 brokers'"| D["4. Monitor Progress"]
  D -->|"Weekly reports"| E["5. Evaluate & Reward"]
  E -->|"Bonus for hitting targets"| F["6. Feedback Loop"]

Real-World Example: NEPSE’s MBO for 2023

• Objective: Increase daily trading volume by 20%.
• Goal: Add 10,000 new investors.
• Action: Partnered with eSewa/Khalti for UPI trading.
• Result: Volume grew by 22% (exceeding target).

Advantages:

• Aligns individual goals with company vision.
• Motivates employees through clear metrics.
• Works for NTC (e.g., "Reduce outages to <1%") or Nabil Bank (e.g., "Process 50K transactions/day").

Disadvantages:

• Overemphasis on metrics can ignore employee well-being.
• Rigid goals may stifle innovation (e.g., Daraz’s "must deliver in 24h").

8. Men vs. Women Communication Styles

Gender differences in communication affect team dynamics, especially in IT environments (e.g., Ncell’s male-dominated tech teams vs. Nabil Bank’s female finance managers).

Visual:

Exam Tip:

• Compare how men vs. women handle conflict in IT projects (e.g., eSewa’s API failure).
• Link to Nepal: Discuss gender gaps in NTC, Ncell, or Nabil Bank’s tech teams.

In the Real World

1. eSewa’s Conflict Resolution (Collaborating Style)

   • Issue: Payment delays between eSewa and NMB Bank.
   • Solution: Held joint workshops with Nepal Rastra Bank to redesign UPI protocols.
   • Outcome: Reduced delays by 40%—using collaborative conflict management.

2. NTC’s Omnipotent → Symbolic Shift

   • 2010s: Managers micromanaged fiber projects, leading to cost overruns.
   • 2020s: Adopted KPIs (e.g., "99.9% uptime") and automated monitoring, reducing manual oversight.

3. Nabil Bank’s MBO for Digital Banking

   • Objective: Increase mobile banking transactions by 30%.
   • Goal: Train 500 tellers in eSewa integration.
   • Result: Transactions grew by 35%—exceeding targets.

Exam Tips

1. For Definitions/Short Notes:

   • Mintzberg’s roles: Use NTC, Daraz, or Nabil Bank as examples.
   • Fayol’s principles: Compare NEPSE’s rigid hierarchy vs. Daraz’s flat teams.
   • Conflict styles: Relate to real Nepal cases (e.g., Ncell’s 5G delays).

2. For Long Questions (e.g., "Discuss skills of an IT manager"):

   • Structure:
     1. Define technical, human, conceptual skills.
     2. Give Nabil Bank/NTC examples.
     3. Discuss how skills change from junior to senior IT roles.
     4. Critique: "Why do many IT managers fail in leadership?"

3. For Case-Based Questions:

   • Example: "How would you apply Fayol’s principles to Pathao’s driver management?"
     • Answer:
       • Division of work: Assign routes per driver.
       • Unity of command: Each driver reports to one supervisor.
       • Initiative: Let drivers suggest efficiency tips.
       • Conflict: Use collaborating style for fare disputes.

4. For Conflict Management:

   • Always link to Nepal:
     • "How would you resolve a conflict between Ncell’s IT team and sales team over 5G rollout?"
     • Answer:
       1. Diagnose: Is it resource-based (IT says "not ready") or ego-based (sales wants "fast launch")?
       2. Choose style: Collaborate to find a phased rollout.
       3. MBO: Set clear KPIs (e.g., "Launch in 3 regions by Q3").

5. For MBO Questions:

   • Use SMART framework:
     • Bad: "Increase sales."
     • Good: "Increase Daraz’s monthly active users by 10% via referral discounts by June 2024."

Final Note:

• Memorize Mintzberg’s 10 roles and Fayol’s 14 principles—they’re highly examinable.
• Always tie theory to Nepal (e.g., NEPSE, NTC, Daraz, Nabil Bank).
• For conflict questions, pick the best style based on urgency vs. relationship.