Introduction to Management

UNIT I INTRODUCTION TO MANAGEMENT

INTRODUCTION In the present context, managing has become one of the most important areas of human activity because of increasing role of large and complex organisations in the society. Because of their increasing role, the organisations have attracted the attention of both practitioners and academicians to find out the solutions for business problems. Concept Defining the term management precisely is not so simple because the term management is used in a variety of ways. Being a new discipline, it has drawn concepts and principles from a number of disciplines such as economics, sociology, psychology, anthropology, statistics and so on. Each group of contributors has treated management differently. For example, economists have treated management as a factor of production; sociologists have treated it as a class or group of persons; practitioners have treated it as a process comprising different activities. DEFINITION !anagement is the art of getting things done through and with people in formally organi"ed groups# --- Koontz !anagement is the art of $nowing what you want to do and then seeing that it is done in the best and cheapest way# F.W. Taylor !anagement is the art of securing maximum results with minimum effort so as to secure maximum prosperity and happiness for both employer and employee and give the public the best possible service# --- Jo n Mee. !anagement is the accomplishment of results through the efforts of other people# -- !a"rence !anagement is simply the process of decision ma$ing and control over the action of human beings for the expressed purpose of attaining pre% determined goals# & #tanley $. !anagement is a process involving planning, organi"ing, staffing, directing and controlling human efforts to achieve stated ob'ectives in an organi"ation.# From the above definitions, the following %eat&re' are identified(% )* Or(an)'e* Act)+)t)e'( !anagement is a process of organi"ed activities. +ithout organi"ed activities, two groups of people cannot be involved in the performance of activities. +here a group of people are involved in wor$ing towards a common ob'ective, management comes into existence. ,* E,)'tence o% o-.ect)+e'( -he existence of ob'ectives is a basic criterion of e very human organi"ation because all organi"ations are deliberate and purposive creation and, therefore, they should have

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some ob'ectives. +ithout ob'ectives, it becomes difficult to define the direction where organi"ed group of activities would lead to. .* Relat)on' )p a/on( re'o&rce'( /rganised activities meant to achieve common goals are brought about to establish certain relationships about the available resources. 0esources include money, machine, material, men and methods. 1ll these resources are made available to those who manage the organi"ation. !anagers apply $nowledge, experience, principles for getting the desired results. -hus, the essence of management is integration of various organisational resources. 2* Wor0)n( ")t an* t ro&( people ( !anagement involves wor$ing with people and getting organisational ob'ectives achieved through them. -he idea of wor$ing through people is interpreted in terms of assigning and reassigning of activities to subordinates. 3* Dec)')on Ma0)n(( !anagement process involves decision ma$ing at various levels for getting things done through people. Decision ma$ing basically involves selecting the most appropriate alternative out of the several. If there is only one alternative, there is no 4uestion of decision ma$ing. Nat&re o% Mana(e/ent1 % -he study and application of management techni4ues in managing the affairs of the organi"ation have changed its nature over a period of time. -he following points will describe the nature of management )* M&lt)*)'c)pl)nary( !anagement has been developed as a separate discipline, but it draws $nowledge and concepts from various disciplines li$e psychology, sociology, anthropology, economics, statistics, operations research etc.,. !anagement integrates the idea and concepts ta$en from these disciplines and presents newer concepts which can be put into practice for managing the organisations ,* Dyna/)c nat&re o% 2r)nc)ple'( 5rinciple is a fundamental truth which establishes cause and effect relationships of a function. Based on integration and supported by practical evidences, management has framed certain principles. 6owever, these principles are flexible in nature and change with the changes in the environment in which an organi"ation exists. .* Relat)+e3 Not a-'ol&te 2r)nc)ple'( !anagement principles are relative, not absolute, and they should be applied according to the need of the organi"ation. Each organi"ation may be different from others. -he difference may exist because of time, place, socio%cultural factors, etc.,. 2* Mana(e/ent1 #c)ence or Art( -here is a controversy whether management is science or art. 1n art is personal s$ill of business affairs. 1rt is characteri"ed by practical $nowledge, personal creativity and s$ill. -he more one practices an art, the more professional one becomes. !anagement can be considered as an art because it satisfies all these criterion of an art. 1 'c)ence is a systemati"ed body of $nowledge of facts. It can establish cause%and%effect relationships among various factors. It involves basic principles, which are capable of universal application. !anagement can be considered as science because it satisfies all these criterion of a science.

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3* Mana(e/ent a' pro%e'')on( !anagement has been regarded as a profession by many while many have suggested that it has not achieved the status of a profession. 5rofession refers to a vocation or a branch of advanced learning such as engineering or medicine. 7* Un)+er'al)ty o% /ana(e/ent( !anagement is a universal phenomenon. 6owever, management principles are not universally applicable but are to be modified according to the needs of the situation. I/portance o% Mana(e/ent !anagement has been important to the daily lives of people and to the organisations. -he importance of management may be traces with the following. )* E%%ect)+e &t)l)'at)on o% Re'o&rce'( !anagement tries to ma$e effective utilisation of various resources. -he resources are scarce in nature and to meet the demand of the society, their contribution should be more for the general interests of the society. !anagement not only decides in which particular alternative a particular resource should be used, but also ta$es actions to utili"e it in that particular alternative in the best way. ,* De+elop/ent o% Re'o&rce'( !anagement develops various resources. -his is true with human as well as non%human factors. !ost of the researchers for resource development are carried on in an organi"ed way and management is involved in these organi"ed activities. .* It en'&re' cont)n&)ty )n t e or(an)zat)on ( 8ontinuity is very important in the organisations. +here there are no proper guidelines for decision ma$ing continuity can not be guaranteed. It is 4uite natural that new people 'oin while some others retire or leave the organi"ation. It is only management that $eeps the organi"ation continuing. 2* Inte(rat)n( +ar)o&' )ntere't (ro&p'( In the organi"ed efforts, there are various interest groups and they put pressure over other groups for maximum share in the combined output. For example, in case of a business organi"ation, there are various pressure groups such as shareholders, employees, govt. etc. these interest groups have pressure on an organi"ation. !anagement has to balance these pressures from various interest groups. 3* #ta-)l)ty )n t e 'oc)ety( !anagement provides stability in the society by changing and modifying the resources in accordance with the changing environment of the society. In the modern age, more emphasis is on new inventions for the betterment of human beings. -hese inventions ma$e old systems and factors mostly obsolete and inefficient. !anagement provides integration between traditions and new inventions, and safeguards society from the unfavorable impact of these inventions so that continuity in social process is maintained. F&nct)on' of !anagement(% -o achieve the organisational ob'ectives managers at all levels of organi"ation should perform different functions. 1 function is a group of similar activities.

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-he list of management functions varies from author to author with the number of functions varying from three to eight. Wr)ter' 6enry Fayol 9uther :ullic$ 0. Davis E.F.9. Breech ;oont" Different authors presented different variations. By combining some of functions, these are broadly grouped into 5lanning, /rganising, <taffing, Directing, and 8ontrolling. )* 2lann)n(( 5lanning is the conscious determination of future course of action. -his involves why an action, what action, how to ta$e action, and when to ta$e action. -hus, planning includes determination of specific ob'ectives, determining pro'ects and programs, setting policies and strategies, setting rules and procedures and preparing budgets. ,* Or(an)')n(( /rganising is the process of dividing wor$ into convenient tas$s or duties, grouping of such duties in the form of positions, grouping of various positions into departments and sections, assigning duties to individual positions, and delegating authority to each positions so that the wor$ 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. .* #ta%%)n(( <taffing involves manning the various positions created by the organi"ing 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. 2* D)rect)n(( when people are available in the organi"ation, they must $now what they are expected to do in the organi"ation. <uperior managers fulfill this re4uirement by communicating to subordinates about their expected behavior. /nce subordinates are oriented, the superiors have continuous responsibility of guiding and leading them for better wor$ performance and motivating them to wor$ with "eal and enthusiasm. -hus, directing includes communicating, motivating and leading. 3* Controll)n(( 8ontrolling 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 ta$ing of corrective action so that actual results match with expected results. Mana(e/ent F&nct)on' 5lanning, /rgani"ing, 8ommanding, 8oordinating, 8ontrolling 5/<D8/0D% 5lanning, /rganising, <taffing, Directing, 8oordinating, 0eporting, Directing 5lanning , /rganising, 8ontrolling 5lanning, /rganising, !otivating, 8oordinating, 8ontrolling 5lanning, /rganising, <taffing, 9eading, 8ontrolling

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TA4!OR 5 #CIENTIFIC MANAGEMENT -he concept of scientific management was introduced by Fre*er)c0 W)n'lo" Taylor in =<1 in the beginning of ,>th century. <cientific management is concerned with $nowing exactly what you want to do and then see in that they do it in the best and cheapest way# <ince -aylor has put the emphasis on solving managerial problems in a scientific way, often, he is called as father of scientific management and his contributions as the principles of scientific management. -aylor carried experiments about how to increase the efficiency of people. /n the basis of experiments, he published many papers and boo$s and all his contributions were compiled in his boo$ scientific management#. 6is contributions are divided into two parts. Elements and tools of scientific management 5rinciples of scientific management FEATURE# 6 E!EMENT# AND TOO!# OF #CIENTIFIC MANAGEMENT )* #eparat)on o% plann)n( 5 *o)n(( -aylor emphasi"ed the separation of planning aspect from actual doing of the wor$. In other words planning should be left to the supervisor and the wor$er should concentrate only operational wor$. ,* F&nct)onal %ore/an' )p( -aylor introduced the concept of functional foremanship based on speciali"ation of functions. In this system, eight persons are involved to direct the activities of wor$ers. /ut of these four persons are concerned with planning vi"., route cler$, instruction card cler$, time and cost cler$ and disciplinarian. -he remaining four persons are concerned with doing aspect of the 'ob, vi"., speed boss, inspector, gang boss and maintenance foreman. It is against to the principle of unity of command.

Work Shop Manager

Planning In charge
Time and cost cl cost clerk Cost Clerk

Production In charge
Mainten ance Forema n

Route Clerk

Instructi on Card clerk

disciplin arian

Gang Boss

Route Boss

inspect or

worker
.* Jo- Analy')'1 It is useful to find out the one best way of doing the things. -he best way of doing a 'ob is one which re4uires the least movements, conse4uently less time and cost. -he best way of doing the thing can be determined by ta$ing up time & motion % fatigue studies. -ime study involves the determination of time a movement ta$es to complete.

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!otion study involves the study of movements in parts which are involved in doing a 'ob and thereby eliminating the wasteful movements. Fatigue study shows the amount and fre4uency of rest re4uired in completing the wor$. -hus, 'ob analysis identifies the fair amount of a day?s wor$ re4uiring certain movements and rest periods to complete it. #tan*ar*)zat)on1 1s far as possible, standardi"ation should be maintained in respect of instruments and tools, period of wor$, amount of wor$, wor$ing conditions, cost of production etc.,. -hese things should be fixed in advance on the basis of 'ob analysis and various elements of costs that in performing a wor$. #c)ent)%)c 'elect)on an* tra)n)n( o% "or0er'1 -aylor has suggested that wor$ers should be selected on scientific basis ta$ing into account their education, wor$ experience, aptitude, physical strength, etc., 1 wor$er should be given wor$ for which he is physically and technically most suitable. 1part from selection, proper training should be provided to wor$ers to ma$e them more effective and efficient. F)nanc)al Incent)+e'1 Financial incentives can motivate wor$ers to put in their maximum efforts. If provisions exist to earn higher wages by putting in extra effort, wor$ers will be motivated to earn more. -aylor himself applied the concept of differential piece rate system which was highly motivating. 1ccording to this scheme, a wor$er who completes the normal wor$ gets wages at higher rate per piece and one who does not complete gets at lower rate. Econo/y1 while applying scientific management, not only scientific and technical aspects should be considered but ade4uate consideration should be given to economy and profit. -he economy and profit can be achieved by ma$ing the resources more productive as well as by eliminating the wastages. Mental Re+ol&t)on( scientific management depends on the mutual co%operation between management and wor$ers. For this co%operation, there should be mental change in both parties from conflict to co% operation.

2*

3*

7*

@*

A*

2RINCI2!E# OF #CIENTIFIC MANAGEMENT1-aylor has given certain basic principles of scientific management. )* Replac)n( r&le o% t &/- ")t 'c)ence ( 1ccording to -aylor, exactness of various aspects of wor$ li$e day?s fair wor$, standardi"ation in wor$, differential piece rate for payment, etc.., is the basic core of scientific management, it is essential that all these are measured precisely and should not be based on mere estimates. ,* 7ar/ony )n (ro&p act)on( -aylor has pointed out that attempts should be made to obtain harmony in group action rather than discord. :roup harmony suggests that there should be mutual give and ta$e situation and proper understanding so that group as a whole contributes to the maximum. .* Co-operat)on( <cientific management involves achieving cooperation rather than chaotic individualism. It is based on mutual confidence, co% operation and goodwill. 8o%operation between management and wor$ers can be developed through mutual understanding and a change in thin$ing.

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2* Ma,)/&/ o&tp&t( scientific management involves continuous increase in production and productivity instead of restricted production either by management or by wor$er. -aylor heated inefficiency and deliberate curtailment of production. In his opinion, there is no worse crime to my mind than that of deliberately restricting output# 3* De+elop/ent o% "or0er'( all wor$ers should be developed to the fullest extent possible for their own and for the company?s highest prosperity. -raining should be provided to the wor$ers to $eep them fully fit according to the re4uirement of new methods of wor$ing which may be different from non%scientific methods. FA4O!8# ADMNI#TRATI$E MANAGEMENT 6enry Fayol is a French Industrialist and the father of modern operational management theory. Fayol recogni"ed the following organi"ational activities. Or(an)zat)onal Act)+)t)e'( Fayol divided the activities of organi"ation into six groups%%% -echnical Brelated to production* 8ommercial B buying, selling and exchange* Financial B search for capital and its optimum use* <ecurity B protection of property and person * 1ccounting !anagerial B planning, organi"ing, commanding, coordinating and controlling* 1mong the above activities Fayol considered managerial activities are the most important for the success of business and he concentrated more on that. 6is contributions are divided the following categories. Cualities of a manager :eneral principles of management Elements of management Mana(er)al 9&al)t)e' an* Tra)n)n(( 1ccording to Fayol the following are the list of 4ualities re4uired in a manager. 5hysical B 6ealth, Digor and 6ealth * !ental B 1bility to understand and learn, 'udgment , mental vigor and capability* !oral B energy, firmness, initiative, loyalty, tact etc.,* Educational -echnical B peculiar to the function being performed * Experience GENERA! 2RINCI2!E# OF MANAGEMENT1 Fayol has given )2 principles of management. 6e has made distinction between management principles and management elements. +hile management principles is a fundamental truth and establishes cause effect relationship, elements of management denotes the function performed by a manager. +hile giving the management principles, Fayol has emphasi"ed two things.

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). -he list of management principles is not exhaustive but suggestive and has discussed only those principles which he followed on most occasions. ,. principles of management are not rigid but flexible 2r)nc)ple'1). D)+)')on o% "or0( It is helpful to ta$e the advantage of speciali"ation. 6ere, the wor$ is divided among the members of the group based on the employees s$ills and talents. It can be applied at all levels of the organi"ation. ,. A&t or)ty an* Re'pon')-)l)ty( Fayol finds authority as a continuation of official and personal factors. /fficial authority is derived from the manager?s position and personal authority is derived from personal 4ualities such as intelligence, experience, moral worth, past services, etc., 0esponsibility arises out of assignment of activity. In order to discharge the responsibility properly, there should be parity between authority and responsibility. .. D)'c)pl)ne( 1ll the personal serving in an organi"ation should be disciplined. Discipline is obedience, application, behavior and outward mar$ of respect shown by employees. 2. Un)ty o% Co//an*( =nity of command means that a person should get orders from only one superior. Fayol has considered unity of command as an important aspect in managing an organi"ation. 6e says that should it be violated, authority is undermined, discipline is in 'eopardy, order disturbed, and stability threatened.# 3. Un)ty o% D)rect)on1 1ccording to this principle, each group of activities with the same ob'ective must have one head and one plan. It is concerned with functioning of the organi"ation I respect of grouping of activities or planning. =nity of direction provides better coordination among various activities to be underta$en by an organi"ation. 7. #&-or*)nat)on o% )n*)+)*&al )ntere't to (eneral )ntere't ( Individual interest must be subordinate to general interest when there is conflict between the two. 6owever factors li$e ambition, la"iness, wea$ness, etc., tend to reduce the importance of general interest. -herefore, superiors should set an example in fairness and goodness. @. Re/&nerat)on to 2er'onnel( 0emuneration to employees should be fair and provide maximum possible satisfaction to employees and employers. Fayol did not favor profit sharing plan for wor$ers but advocated it for managers. 6e was also in favor of non%financial benefits. A. Central)zat)on( Everything which goes to increase the importance of subordinate?s role is decentrali"ation; every thing which goes to reduce it is centrali"ation. -he degree of centrali"ation or decentrali"ation is determined by the needs of the company. E. #calar C a)n( -here should be a scalar chain of authority and of communication ranging from the highest to the lowest. It suggests that each communication going up or coming down must flow through each position in the line of authority. It can be short%circuited only in special circumstances. For this purpose, Fayol has suggested Fgang plan$? <calar chain and gang plan$ can be presented as follows

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)>. Or*er1 -his is a principle relating to the arrangement of things and people. In material order, there should be a place for every thing and every thing should be in its place. <imilarly, in social order, there should be the right man in the right place. )). E:&)ty1 E4uity is the combination of 'ustice and $indness. E4uity in treatment and behavior is li$ed by everyone and it brings loyalty in the organi"ation. -he application of e4uity re4uires good sense, experience and good nature. ),. #ta-)l)ty o% ten&re1 Go employee should be removed within short time. -here should be reasonable security of 'obs. <tability of tenure is essential to get an employee accustomed to new wor$ and succeeding in doing it well ).. In)t)at)+e1 +ithin the limits of authority and discipline, managers should encourage their employees for ta$ing initiative. Initiative is concerned with thin$ing out and execution of a plan. Initiative increases "eal and energy on the part of human beings. )2. E'pr)t *e corp'1 It is the principle of Funion is strength? and extension of unity of command for establishing team wor$. -he manager should encourage esprit de corps among his employees. 7a"t orne e,per)/ent' an* &/an relat)on'1

-he human relations approach was born out of a reaction to classical approach. 1 lot of literature on human relations has been developed. For the first time, an intensive and systematic analysis of human factor in organisations was made in the form of 6awthorne experiments. -o investigate the relationship between productivity and physical wor$ing conditions, a team of four members Elton mayo, +hite head, 0oethlisberger and +illiam Dic$son was introduced by the company in 6awthorne plant. -hey conducted various researches in four phases with each phase attempting to answer the 4uestion raised at the previous phase. -he phases are %%% ). Experiments to determine the effects of changes in illuminations on productivity. Illumination experiments B)E,2%,@* ,. Experiments to determine the effects of changes in hours and other wor$ing conditions on productivity. B0elay assembly test room experiments )E,@%,A* .. mass interviewing programme B)E,A%)E.>* 2. determination and analysis of social organi"ation at wor$ BBan$ wiring observation room experiments )E.)%.,* Concl&')on'1

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Individual wor$ers must be seen as members of a group -he sense of belongingness and effective management were the two secrets unfolded by the 6awthorne experiments. Informal or personal groups influenced the behaviour of wor$ers on the 'ob. Geed for status and belongingness to a group were viewed as more important than monetary incentives or good physical wor$ing conditions -o see$ wor$ers cooperation, the management should be aware of their social needs and cater to them. /therwise, there is every danger that the wor$ers ignore and turn against the interests of the organisation.

MA#!OW8# NEED 7IERARC741 -he behaviour of an individual at a particular movement is usually determined by his strongest need. 5sychologist?s claims that needs have a certain priority, as the more basic needs are satisfied, an individual see$s to satisfy the higher needs. If his basic needs are not met, efforts to satisfy the higher needs should be postponed. 1.6.!aslow, a famous social scientist, has given a framewor$ that helps to explain the strength of certain needs. 1ccording to him, there is hierarchy for need, which is presented in the following way. <elf actuali"ation needs

Esteem needsH <ocial needsH <ecurity needsH 5hysiological needs H

!allow?s need hierarchy

2 y')olo()cal nee*'( -he 5hysiological needs are at the top of hierarchy because they tend to have the highest strength until they are reasonably satisfied. =ntil these needs are satisfied to the degree needed for the efficient operation of the body, the ma'ority of a person?s activities will probably at this level, and the other level will provide him with little motivation. 1 famous saying Fman can live on bread alone if there is no bread? suggests that man first try to ac4uire necessities for their survival. #a%ety Nee*'1 /nce physiological needs are satisfied to a reasonable level, the next level in the hierarchy is safety. <afety means being free of physical danger or self%preservation. In the industrial society, employee can be motivated through either positive action li$e pension plan, insurance plan etc... /r negative actions li$e laid off or demotions. #oc)al nee*'1 1fter the first two needs are satisfied, social needs become important in the need hierarchy. <ince man is a social being, he has a need to belong and to be accepted by various groups. In the organisation, wor$ers form informal group environment to support unfulfilled social needs such as affiliation.

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E'tee/ nee*'1 -hese needs are concerned with self respect, self confidence, a feeling of personal worth, feeling of being uni4ue and recognition. <atisfaction of these needs produces feelings of self confidence, prestige, power and control. -hese needs are satisfied through adaptive behaviour, matured behaviour or with irresponsible actions. #el% act&al)zat)on nee*'( It is the need to maximi"e ones potential, whatever it may be. It is related with the development of intrinsic capabilities which lead people to see$ situations that can utili"e their potential. -his includes competence which implies control over environmental factors both physical and social and achievement. Concl&')on1 !aslow suggest that the various levels are interdependent and overlapping, each higher level need emerging before the lower level need has been completely satisfied. <ince one need does not disappear when another emerges, all needs tend to be partially satisfied in each area. 7ER;<ERG8# MOTI$ATION 74GIENE T7EOR41 Frederic$ 6ert"berg conducted a structured interview programme to analyse the experience and feelings of ,>> engineers and accountants in nine different companies in 5ittsburg area, =.<.1 during the structured interview, they were as$ed to describe a few previous 'ob experiences in which they felt Fexceptionally good? or exceptionally bad about 'obs. In his analysis, he found that there are some 'ob conditions which operate primarily to dissatisfy employees when the conditions are absent, however their presence does not motivate them in a strong way. 1nother set of 'ob conditions operates primarily to build strong motivation and high 'ob satisfaction, but their absence rarely proves strongly dissatisfying. -he first set of 'ob conditions has been referred to as maintenance or hygiene factors and second set of 'ob conditions as motivational factors. 7y()ene Factor'1 1ccording to 6ert"berg, there are )> maintenance factors. -hese are company policy and administration, technical supervision, salary, 'ob security, personal life, status, wor$ing conditions, interpersonal relationship with superiors, interpersonal relationship with peers and interpersonal relationship with subordinates. -hese maintenance factors are necessary to maintain at a reasonable level of satisfaction in employees. 1ny increase beyond this level will not produce any satisfaction to the employees( however, any cut below this level will dissatisfy them. Mot)+at)onal Factor'1 -hese factors are capable of having a positive effect on 'ob satisfaction often resulting in an increase in ones total output. 6ert"berg includes six factors that motivate employees. -hese are achievement, recognition, advancement; wor$ itself, possibility of growth and responsibility. !ost of the above factors are related with 'ob contents. 1n increase in these factors will satisfy the employees( however, any decrease in these factors will not affect their level of satisfaction. <ince, these increased level of satisfaction in the employees, can be used in motivating them for higher output.

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!EADER#7I2
CONCE2T1 9eadership is the process of influencing the behaviour of other to wor$ willingly an enthusiastically for achieving predetermined goals. DEFINITION1 9eadership is interpersonal influence exercised in a situation and directed through communication process, towards the attainment of a specified goal or goals#. & Tennen-a&/. 9eadership is the process of influencing and supporting others to wor$ enthusiastically toward achieving ob'ectives#. & <arnar* Key. !EADER#7I2 #T4!E#1 9eadership styles are the patterns of behaviour which a leader adopts in influencing the behaviour of his subordinates. Based on the degree of authority used by the supervisors, there are three leadership styles. =. A&tocrat)c !ea*er' )p1 It is also $nown as authoritarian, directive or monothetic style. In autocratic leadership style, a manager centrali"es decision%ma$ing power in him. 6e structures the complete situation for his employees and they do what they are told. 6ere the leadership may be negative because followers are uninformed, insecure, and afraid if the leader?s authority. A*+anta(e'1). It provides strong motivation and reward to a manager exercising this style. ,. It permits very 4uic$ decisions as most of the decisions are ta$en by a single person. .. <trict discipline will be maintained. 2. 9ess competent subordinates also have scope to wor$ in the organisation under his leadership style. D)'a*+anta(e'1). Employees lac$ motivation; Frustration, low morale and conflict develop in the organisation. ,. -here is more dependence and less individuality in the /rganisation. 1s such future leaders in the organisation do not develop. .. 5eople in the organisation disli$e it specially when it is strict and the motivational style is negative. =. 2art)c)pat)+e !ea*er' )p1-his style is also called democratic, consultative or ideographic. 1 participative is defined as mental and emotional involvement of a person in a group situation which encourages him to contribute to group goals and share responsibility in them. 1 participative manager decentrali"es his decision% ma$ing process, instead of ta$ing unilateral decisions, he emphasis on consultation and participation of his subordinates. >. Free Re)n !ea*er' )p1Free 0ein or lassie & faire techni4ue means giving complete freedom to subordinates. In this style, manager once determines policies, programmes and limitations for action and the entire process is left to subordinates. :roup

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member?s person everything and the manager usually maintains contacts with outside persons to bring the information and materials which the group needs. !EADER#7I2 #T4!E#1 - 9eadership styles refer to a leader?s behaviour. Behavioral pattern which the leader reflects in his role as a leader is often described as the style of leadership. It is the result of the philosophy, personality and experience of the leader. -he important leadership styles are as follows(% ). 1utocratic Bor* 1uthoritarian leaders ,. 5articipative Bor* Democratic leaders .. Free rein Bor* 9aiser faire leaders A&tocrat)c !ea*er' )p #tyle1 - -his is also $nown as authoritarian, directive style. In this style manager centrali"es decision%ma$ing power in him. 6e structures the complete wor$ situation for his employees. 6e does not entertain and suggestions or initiative from subordinates. 6e gives orders and assigns tas$s without ta$ing subordinates opinion. -here are three categories of autocratic leaders. #tr)ct A&tocrat1 - 6e follows autocratic styles in a very strict sense. 6is method of influencing subordinates behaviour is through negative motivation that is by critici"ing subordinates, imposing penalty etcI <ene+olent A&tocrat1 - 6e also centrali"es decision ma$ing power in him, but his motivation style is positive. 6e can be effective in getting efficiency in man situations. <ome li$e to wor$ under strong authority structure and they drive satisfaction by this leadership. Inco/petent a&tocrat1 - <ometimes, superiors adopt autocratic leadership style 'ust to hide their in competency, because in other styles they may exposed before their subordinates. 6owever, this cannot be used for a long time. A*+anta(e'1=. It provides strong motivation and reward to manager. ,. It permits very 4uic$ decisions. .. 9ess competent subordinates also have scope to wor$ in the organisation. D)'a*+anta(e'1=. 5eople in the organisation disli$e it specially when it is strict and the motivational style is negative. ,.Employees lac$ motivation frustration, low morale and conflict develops in the organisation. .. -here is more dependence and less individuality in the organisation.

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2art)c)pat)+e !ea*er' )p #tyle1- It is also called as democratic, consultative or idiographic leadership style. In this style the manager decentrali"es his decision%ma$ing process. Instead of ta$ing unilateral decision he emphasi"es consultation and participation of his subordinates. 6e can win the cooperation of his group and can motivate them effectively and positively. A*+anta(e'1). Employees are highly motivated. ,. -he productivity of employees is very high. .. <ubordinates share the responsibility with the superior and try to safeguard them also. D)'a*+anta(e'1). 8omplex nature of organisation re4uires as through understanding of its 5roblems which lower%level employees may not be able to do. ,. <ome people in the organisation want minimum interaction with their superior. .. <ome leaders may use this style as a way of avoiding responsibility.

"

C
Free-re)n !ea*er' )p1- 1 free%rein leader does not lead, but leaves the group entirely to itself as shown in the following figure.

M A "

C A

D A

In this style, manager once determines policy, programmes, and limitations for action and the entire process is left to subordinates group members perform everything and the manager usually maintains contacts with outside persons to bring the information and materials which the group needs.

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-he following figure shows the spectrum of a wide variety of leadership styles moving from a very authoritarian style at one end to a very democratic style at the other end, as suggested by -annenbaum and warren 6.schmidt.

1utocratic

Democratic

Free 0ein

$%e o& Aut'orit(

Area o& &reedom )ermitted to %u*ordinate%

<ocial 0esponsibility(% Fro most of the business organisation, social responsibility is a way of life. <ocial responsibility refers to the process which includes several activities ranging from providing safe products and services to giving a portion of the company?s profits to welfare organisations with a philanthropic perspective. <ocial responsibility of a business is also viewed as conducting its operations in a free and fair manner by dischargting its consumer towards different segments of its operational environment such as creditors, share holders consumebrs, employees,:overnment, and other general public asexplained below

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