Perspective

Management

Hello Students,

Slides are just for your reference.Refer books as well.

Best of Luck.

Introduction to Management

Management is the act of getting people together to

accomplish desired goals and objectives using
available resources efficiently and effectively.

Management is an art of knowing what to do, when to

do and see that it is done in the best and cheapest
way.

Functions of a Management
Planning
Organizing
Directing
Coordinating
Controlling

 Features of management
- It is goal oriented
- It is group activity
- It involves utilization of resources.
- It is all pervasive
- It is a system of authority

 Purpose & scope of management

- Efficient use of resources
- Satisfaction of customers
- Satisfying workforce
- Keeping & maintaining good working conditions

WHY Management??
To meet the challenge of change
Effective functioning of business
Sound organization structure
Management directs the organization
Innovation

Level & Skills of Management

Top level-Conceptual skills
- To visualize & understand the future
- To do SWOT analysis
- Lay down the objectives
- Prepare strategic plan & policies
- Co-ordinates the activities of various dept
- Build & maintain relation with outside public

 Middle level-Human skills

- Put plan into practice
- Co-ordinate functioning of various dept
- It gives guidance & direction to low level
- Prepares report about the progress

 Low level- Technical

- Cooperate in smooth functioning of org
- Provide necessary material to workers
- To solve problems of workers
- To supervise workers
- Communicate their problems to the higher authorities.
- To have knowledge of using technology
- To train subordinates
- To supervise work performed by them
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Functions of manager
1. Planning the work
2. Taking decisions
3. Delegating authority
4. Solving the problems
5. Coordination
6. Stimulating workers
7. Control the deviations

Managerial roles.
Interpersonal
- Figurehead role
- Leader role
- Liaison role
Informational
- Monitor role
- Disseminator role
- Spokesperson role
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 Decisional
- Entrepreneur role
- Disturbance handler role
- Resource allocator role
- Negotiator role

ETHICAL & SOCIAL

RESPONSIBILITIES OF
MANAGEMENT

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Standards of right /wrong in terms of rights,

obligations, benefits to society, fairness or
specific virtues.

16

 Business ethics
Purpose is to guide manager & employees
in performing their jobs

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Managing ethics
Top
management

Code of ethics

Ethics
committees

Ethical
behaviors

Ethics audit

Training
programs

Ethics hotline

Social responsibility is defined as the

obligation and commitment of managers to
take steps for protecting and improving
societys welfare along with protecting
their own interest.

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Social Responsibility of Management

- Responsibility towards owners
- Responsibility towards employees
- Responsibility towards consumers
- Responsibility towards the Governments
- Responsibility towards the community and society

 Responsibility towards the Governments:

- As a part of their social responsibility, management
must conduct business affair in lawful manner
- Honestly pay all the taxes and dues
- Should not corrupt public officials for selfish ends.
- Business activities must also confirm to the economic
and social policies of the government.

 Responsibility towards the community and

society:
1. Employment of handicapped persons
2. Weaker sections of the community
3. Environmental protection
4. Pollution control
5. Setting up industries in backward areas
6. Providing relief to the victims of natural calamities etc.

Responsibilities towards consumers

To produce customized products
To establish fair prices of products consistent with
quality, efficiency and reasonable profit to the
firm.
To provide prompt, adequate, courteous, and
friendly service to customers.
To ensure fairly wide distribution of products
among all sections of consumers.
To improve their standard of living in society by
producing goods and services which they need
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Responsibilities towards employees

Fair remuneration
Job security and safety
Proper working conditions and employee
welfare
Trade union rights
Employee promotion and code of conduct
Employee participation in management.

24

CSR
Corporate Social Responsibility is the
continuing commitment by business to
behave
ethically
and
contribute
to
economic development, while improving
the quality of life of the workforce and their
families as well as of the local community
and society at large.

Evolution of
Management thought

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Scientific management
It is application of science to
management.
Art of knowing what exactly you want
from your men to do & then seeing that it
is done in the best possible manner.

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Scientific management
- F.W Taylor
- Henry Gantt
Administrative theory
- Henry Fayol
Behavioural theory
- Max Weber
- Elton Mayo
- Mc Gregor
- Maslows theory
- Likert theory
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F.W.Taylors THEORY
(1856-1915)
Frederick Winslow Taylor is known as Father of Scientific
Management
He enriched management with few principles and scientific
techniques.
His principles were highly influential in progressive era.

Theory based on
Midvale steel- Labourer & promoted as chief eng.
- 6 years
- Observed that worker working less
- Wage system daily basis- outcome low
- Feared to work fast
- Method used Rule of thumb / hit or trial.

 Simond rolling machine company

- Management consultant
- Finds works involved long hours
- Not innovative
- Efficiency low
- Studied and timed the movement of best worker
- Applied differential rate
- Introduced rest hours
- Workers earnings and mgmt. profit increases

 It makes a distinction between efficient and inefficient workers.

Lazy and inefficient workers are penalised, while efficient workers
are rewarded.
The basis of this system is scientific.
It is based on proper work study.
It helps in spotting and eliminating inefficient workers.

 Bethlehem Steel
- Pig iron handling & shoveling
- Studied time and movement of workers
- Observed that each worker load 12 tons per day
- Introduced rest periods & offers incentives

 Several important contributions which are classified

under Scientific Management
1. Time & motion study
2. Differential payment
3. Recruitment & training
4. His primary contribution remains redefining the role of manager
in management theory.
5. Spirit of cooperation between workers and management
6. Replace rule of thumb with science
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Contribution by Gantt
Henry Laurence Gantt management consultantmechanical engineer.
Developed the Gantt chart in 1990
Applied on projects such as Hoover Dam and inter state
highway projects.

35

Gantt chart
It used for scheduling multiple overlapping tasks over a period of
time.
Focused on motivational schemes
Emphasizing the greater effectiveness of rewards for good work.
Pay incentive system with a guaranteed minimum wage and
bonus systems for people on fixed wages.

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37

Henry Gantts contribution

The Gantt chart.
The task and bonus system
The social responsibility of business
Workers training
Stress on human element in management.

38

Administrative Management
Henry Fayol is known as Father of Administrative
Management(1841)
Contributed 14 principles of management.
Management is a universal activity that applies well to
family as well as corporation.

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Principles of Henry Fayol

Division of work
Authority & Responsibility
Discipline
Unity of command
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Contd..
Unity of Direction
Subordination of individual interests to general interest
Remuneration
Centralization
Scalar chain

Contd
Order
Equity
Stability of Tenure
Initiative
Esprit de corps
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Elton Mayos Contribution

Elton Mayo (180-1949)
Contribution towards management with the famous
Hawthorne Studies.
Wrote a book" The human Problems of an Industrialized
Civilizations
Peoples performance is related to social issues and job content.
Known as Father of Human Resource Approach

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Experiments
Illumination experiment
Relay Assembly test room experiment.
Mass Interviewing programme
Bank Wiring observation room experiment

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 In the 1920s, the Hawthorne Plant of the General

Electric Company, Chicago employed around
30,000 workers and manufactured equipment for
Bell Telephone System.
Although it was a progressive organization, its
managers were disturbed by the large number of
complaints and high level of dissatisfaction
among workers.
In 1924, the company hired efficiency experts to
find out the cause of the problem, but the
investigations failed.
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 Later, the company requested the National

Academy of Sciences to help them find a solution.
In order to find the relationship between worker
efficiency and level of illumination in the
workshop, the Academy conducted various
experiments which came to be known as the
Illumination Experiments.
To understand impact of single variable
workers productivity.

on

The illumination experiments

In these set of experiments, researchers
modified the level of illumination i.e. the
intensity of light, to determine its effect on
productivity.
Two groups of employees, namely, the control
group and the experimental group
These experiments revealed that there is some
other variable beyond wages, hours of work,
working conditions that made a significant
impact on productivity.
Human

factor

was

considered

important

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Relay assembly room experiments

This series of experiments began in 1927.
These experiments were conducted by a team led
by Prof. Elton Mayo of Harvard Business
School,
along
with
his
colleague,
Fritz
Roethlisberger and some company representatives.
Initially, two girls were selected for these
experiments and they were, in turn, asked to choose
four other girls. Thus, a group of six was formed.
A telephone relay is a small but complex device in
which forty separate parts have to be assembled.

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 The girls were seated on a lone bench where they

assembled the parts and the assembled relay was
dropped into a channel.
An active observer
They wanted to find out how productivity could be
improved by introducing certain variables like rest
pauses and modifying other variables like
cutting down on work hours, and decreasing
temperature and humidity, better wages.

Findings of the relay assembly room experiments

An overall increase in the productivity.
The researchers realized that since the girls were given
a great deal of freedom, they had formed an informal
group which also included the observer.
They had a jovial time at work and also engaged in
social meetings after work.
The researchers thus discovered the concept of informal
organization.
They found that workplaces were social environments
that gave employees scope to interact with each other.
It was also realized that there were factors other than
just economic self-interest.
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 The presence of a friendly observer rather than an authoritarian supervisor at

work added to their happiness.
They felt valued and important when the observer informed them in advance
about the changes in work pattern.

As the supervisor was able to secure their whole-hearted cooperation, the

productivity increased despite the withdrawal of many amenities at a later
stage.

Satisfaction of the social and psychological need such as sense of acceptance,

recognition, freedom to work, participation, interaction, informal relationships
etc.

51

Bank wiring observation room experiments

These
experiments
were
undertaken
by
researchers in the later part of the Hawthorne
Experiments conducted during 1931-1932.
The bank wiring observation room experiments
were aimed to understand the power of an
informal group and peer pressure on worker
productivity.

In this study, a group of fourteen men were

engaged in 'bank-wiring,' i.e. attaching wires to
switches for certain parts of telephone equipment.

 The fourteen participants in the experiment were asked to assemble

telephone wiring to produce terminal banks for 6 months.
This time no changes were made in the physical working conditions.
It was thought that more efficient worker put pressure on less
efficient worker to provide higher out put.
It was concluded that the group has established its own standards of
output & these standards where implemented through social
pressure.
Informal/ social relationship is important

Interview phase, Hawthorne Studies

During the course of the experiments, about
21,000 people were interviewed over a three-year
period - between 1928 and 1930 - to explore the
reasons for human behavior at work.
It was concluded that productivity can be
increased if workers are allowed to talk freely
about matters that are important to them.

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Implications of the experiment

Social / informal group
Social pressure/Group Influence
Leadership
Supervision
Communication
Workers are not a rational man but a
social man
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Contribution by McGregor

56

Theory X certain assumptions

Humans dislike work and try to avoid.
As they dislike work they have to be forced
Average employee would like to be directed.
People dont like responsibility.
Average human wants to feel secure at work

57

Theory Y
People view work as being natural as play and rest.
Motivate people and they woul be self directing.
Average human seek responsibility naturally.
People are imaginative and creative.
Professional services, knowledge workers

58

Max Weber BUREAUCRACY

German sociologist
Division of work
Hierarchy
Formalized rules
Appointment on the basis of merit
performance
Selection and promotion of employees based
on ability.
59

Dr.Likert
Research on human behaviour asserts that to achieve
maximum productivity
He has identified four system
Exploitative authoritative system
Benevolent- Authoritative system
Consultative System
Participative-Group System
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 Exploitativeauthoritative system
- Decisions made by top mgt.
- No confidence on subordinates
- Minimum contribution
- Motivation is by threats
- Little communication
- No teamwork

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 Benevolent- Authoritative system

-

Decision by top mgt. but few are made by lower level

Leader have some confidence
Motivation by rewards
Manager feel responsibility
Little communication & little team work

 Consultative System
-

Leadership is by superior
Substantial confidence on sub.
Trust on subordinates
Operating decision at lower level
Contribution is good

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 Participative-Group System
- Complete confidence on subordinates
- Motivation by economic rewards based on goals
- More communication
- Total team work
- Contribution is excellent

Planning
Past provides guide for making plans in present,
plans are made to achieve goals in future.

Planning ??
Planning is a mental predisposition to do things
in an orderly way, to think before acting & to act
in the light of the fact rather than guesses.
It is a systematic activity which determines when,
how and who is going to perform a specific job.
Manager looks to the future & discovers
alternative course of action open to him
Logical thinking before doing.

Features of Planning
Primary function
Continuous process
Intellectual activity
Efficient
All-pervasive
Required at all level of management
Decision-making
Feedback

Objectives

Advantages
To face competition
For orderly work
Minimize waste & future uncertainties
Constructive use of resources
Ensures coordination
Helps control
Promote growth & improvement
Prevent hasty decision
Encourages innovative thoughts
Anticipation of crisis

Types of plans
Long term & short term plans.
Standing plans:
e.g-policies, objectives, strategies, rules,
procedures, mission.
Single use plans: budgets, targets, quotas.

Standing plans and Single use plans

Standing plans
Made to meet
situation recurring
in nature.
It is used again.
Brings unity &
uniformity

Single use plans

Made to meet
specific situation
Used only for fixed
purpose
Ceases to exist
after its purpose.

Strategic planning
They are detailed action steps mapped out to reach
strategic goals.
Strategic planningis an organization's process of
defining itsstrategy or direction, and making decisions
on allocating its resources to pursue this strategy.
Developed by top management.

Tactical Planning
They are means to support the strategic plans.
Tactical Planning is the process of taking the
strategic plan and breaking it down into specific,
short term actions and plans.
They are more specific and concrete.
The time taken is 1-3 years.
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Operational planning
They are means devised to support implementation of
tactical plans.
Operational plans spell out specifically what must be
done to achieve operational goals.
Time horizon is relatively short term less than 1 year.

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Operational planning
Operational plans should contain:
Clear objectives
Activities to be delivered
Quality standards
Desired outcomes
Staffing and resource requirements
Implementation timetables

Steps and process of planning

Need for planning
Setting of objectives/goals
- what we are trying to accomplish

Being aware of environment

Establishing planning premises.

- What kind of market will be there
- Expected volume of sales
- What kind of product to be sold & what price?
- What technical developments?

Contd.
Searching Alternatives
Comparing and selecting the best.
Implementation
Follow up.

MBO-Management by objectives
Peter Ducker was the person who
popularized Management by objectives in
the year-1954.
MBO is concerned with goal setting for
individual and their units.
Essence of it is joint goal setting between
superior and subordinate.
Managers work with their subordinates to
establish the performance.
MBO focuses attention on appropriate goals
and plans.

MBO Cycle

To define the objectives of the organization

To formulate sub-objectives or goals
Determination of individual targets
Periodic review & evaluation
Performance appraisal

Forecasting
It is the technique of estimating the
relevant future events & problems on the
basis of past & present behavior &
happenings.
Planning cannot be done without
forecasting.
Concerned with future events
Conclusions are drawn

Areas of forecasting
Competition
Economic conditions
Growth trend
Social change
Political change
Technology

Methods of Forecasting
Jury of executive option
Survey method
Sales persons opinion
Expectation of consumer

Decision making

Decision making
A decision is a course of action which is consciously
chosen for achieving a desired result.
It is a selection of one behavior alternative from
two/more possible alternatives.
Considers the fact.
It is situational
Decision is taken to achieve objective
Decision could be both negative /positive

Importance of Decision Making

Management and decision making go side
by side.
Structured decision making important.
Future of organization depends on the
decision taken by management.

Nature of Managerial Decision Making

A crisis problem.
A non crisis problem
An opportunity problem.

Steps in Decision Making

Defining the problem.

Analyzing the problem.
Identifying alternate solutions.
Selecting the best one
Implementing the decision.
Evaluating the decision.
Developing Alternatives.

Types of Decision making

Routine Decisions.
Operating decisions.
Organizational
Personal decisions.

Contd
Individual & Group decisions.
Irreversible & Reversible decisions.
Experimental Decisions.

Factors affecting decision making process

Information.
Time factor.
External environment factors.
Internal factors.

Contd.
Personality of the decision maker.

Experience of a decision maker.

Group aided Decisions

When all the members together take a decision it is
called as group decision.

Features
Used when problem is complicated.
Time consuming process.
Leads to higher quality of decisions.
Legal requirements and group behavior.

Advantages
Increased number of alternatives.
Greater understanding and acceptance of the final
decisions.
Members develop knowledge and skills for future.

Better performance
More performance
Less mistakes

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Disadvantages
Group decision making is more time consuming.
Disagreements may delay decisions and cause hard
feelings.
The discussion may be dominated by one or few group
members.
Time consuming
Creates chaos
More competition
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Techniques used group aided decisions.

Brain storming.
Nominal group technique.
Delphi technique.

Organizing

Concept of organization
Determines
relationships
between
functions and positions, and subdivides
and delegates roles, responsibilities, and
authority to carry out defined tasks.
Organizations are open systems in that
they affect and are affected by the
environment beyond their boundaries.

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Functions of organization
Determination of objectives
Grouping of activities
Allotment of duties to specified persons
Delegation of authority
Defining relationship
Co-ordination of various activities

Importance of organizing
Discipline
Division of work
Better coordination.
Increase in efficiency.
Avoid duplication of work
Adaptability
Better human relation.
Achievement of goal
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Process of organization
Determination of objective
Division of activities
Greater output
Increase in efficiency

Grouping of activities
Defining authority and responsibility
Co ordination of activities
Reviewing and reorganizing
100

Classification of organization
Formal organization:
- Represents classification of activities
- Indicates who reports to whom
- Clearly defines the duties, responsibilities, authority &
relationship as defined by top management.
- It is properly planned
- Organizational charts are usually drawn
- Creates co-ordination

 Informal organization
- It is out of personal need or group need
- It is a social structure forms to meet personal needs
- Considers likes & dislike of person without considering
rules & regulations.
- Doesnt exists in organization chart
- Can found in all level of management
- No rules & regulations

Organization structure
Formal
pattern
of
interactions
and
coordination designed by management to link
the tasks of individuals and groups in
achieving organizational goals.

103

Organizational structure
It consists primarily of four elements.
Job design.
Departmentalization
Vertical coordination
Horizontal coordination.

104

Types
Line organization
Line & staff
Matrix
Project structure

Line organization
No individual acts without authority
Order, instruction, schedules etc. flows from the
top to bottom. Reports go from bottom to top
Communication is on proper line
Direct vertical relationship
Departmental heads have full freedom to control
his departments
Speedy action
Simplicity

Line & staff

Combination of two line organization + support staff
Staff to help them to take decisions & assistance
Relief to line executives
Line managers can take sound decisions
Improvement in efficiency

Matrix Organisation
Matrix Organisation is a combination of two
or more organisation structures. For
example, Functional Organisation and
Project Organisation.
Problem of Unity of Command
Matrix organisation is suitable for multiproject organisations.

Departmentation
It is a group combined together for performing certain
functions of similar nature.
Departmentalization is the process of combining related
jobs into larger group.

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Bases for Departmentation

Bases:
- Functions
- Process
- Product
- Location
- Customers
- Time

Delegation
Delegation consists of granting authority
or the right to decision making in certain
defined areas & charging the subordinate
with responsibility for carrying through
the assigned task.
To give offer and allot a part of authority
to subordinate.
114

Delegated task measured.

SMARTER
Specific
Measurable
Agreed
Realistic
Time bound
Ethical & Recorded.
115

Elements of delegation.
Authority
Responsibility
Accountability.

116

Degrees of delegation
Low degree of delegation.
Moderate degree of delegation.
High degree of delegation.

117

Steps for effective delegation.

Clarifying the assignment.
Specify the subordinates range of discretion.
Allow the subordinate to participate.

118

Contd.
Inform others that a delegation has occurred.
Establish feedback control.

119

Problems in delegation
Lacking confidence
Lacking trust
May create bottleneck in process
Fear of losing status and position
No delegation may discourage person

120

Reasons for failure of delegation

Superiors love for authority.
Maintenance of tight control.
Fear of subordinates.
Negative attitude towards subordinates
etc
121

Delegation effective
Making the potential delegator feel secure.
Creating awareness for the need of delegation.
Determining decision & tasks to be deligated.

122

Contd
Delegating wisely.
Tying delegation with planning.
Delegating authority for whole job.

123

Decentralization
Decentralization refers to the systematic
effort to delegate to the lowest levels all
authority except that which can be
exercised at central points.

Centralization.
Centralized organization systematically works to
concentrate authority at the upper levels.
Decentralized organization.
Management consciously attempts to spread authority
to the lower organization levels.

125

Reasons for decentralizations.

Reduction burden.
Facilitates growth and diversification.
Considers good philosophy to motivate managers.
Encourages development.

126

Adopt decentralization when?

Organization is large.
Operation are geographically dispersed.
Top managers can not keep up with complex technology.

127

Decentralization offers advantages.

Top managers can concentrate on major issues.
The jobs of lower level employees are enriched by the
challenge of making decisions.
Decisions can be made faster.

128

Contd.
Individuals at lower levels may be closer to the problem
and be in a better position to make decisions.

Span of management
A term which originated during the military
organization.
Span of management also called span of control, span
of supervision.
Should have neither too many nor few subordinates.

130

Factors affecting span of control

Capability of workers: if workers are highly capable,
need little supervision, and can be left on their own,
they need not be supervised much as they are
motivated and take initiative to work; as such the span
of control will be wider.
Similarity of task.

131

Authority & power

132

Line Authority
Authority flow from Top to bottom.
Creates superior subordinate relationship
Unity of command
Mgr directs subordinates
Span of control.
133

Staff Authority
More limited to advice.
Authority that is based on expertise.
Staff members are advisors and counselors.
They are advisors such as accounting
,human resource, information technology.
134

Team Authority
Committees or work team involved.
They work with minimum supervision.
They are empowered to plan and organize their own
work.
Empowered to create their own schedules.
Facilitates to detect and react to changes in the
environment.

135

Power
Authorities have power to get things
done.
Involving employees to set their
objectives empowers them.

136

Six powers
Legitimate power
Coercive power
Reward power.
Expert power.
Referent power.
137

Co-ordination & control

138

Co-ordination & control

Co-ordination is orderly arrangement of
group efforts to provide unity of action in
the pursuit of a common purpose.

 Group effort
Unity of action
Common goal
Continuous process
Managerial responsibility

Importance of coordination
Coordination pulls all function.
It brings satisfaction to all people in the
organization.
Smooth flow of information and resources.

Factors that weaken coordination

Constant change
Passive leadership
Large personnel
Functional differentiation.
Specialization.
142

Methods to ensure effective coordination.

Clearly defined goals.
Clear lines of authority &responsibility.
Comprehensive programmes and policies.
Staff meetings.

Contd.
Cooperation.
Effective communication.

144

Types of coordination
Internal
External
Vertical
Horizontal

Control
Control is a management function which
implies measurement and correction of
performance of subordinates to ensure
that the predetermined objectives are
accomplished.
Taking actual steps to bring results.

146

Purpose of control
Makes plan effective.
Make sure activities are accurate.
Makes organization effective and efficient.
Feed back on project status & decision making.
147

 Cope with uncertainty.

Alert to possible opportunities.
Enables to handle complex situation.
Helps in detecting mistakes
148

Nature of control
Control is forward looking & backward looking system.
An essential function of management.
Controls continuous activity.
It is dynamic process.
149

Contd
It is based on planning
It aims to achieve results.
Manage both human and physical factors.

150

Process of controlling
Establish performance standards.
Measure actual performance
Compare measured performance against established
standards.
Take corrective action.
151

Type of controls.
Feed forward control/ preliminary/
preventive/steering
Concurrent control/screening/yes-no
Feed back controls/post action /output.

152

Techniques of control
Traditional technique
Modern technique.

153

Techniques of control
Traditional technique
- Personal observation
- Budgeting
- Break-even analysis
- Financial statements
- Statistical data & reports
- Quality control
Modern technique.
- MIS
- Management Audit
- Net work techniques
154

Traditional technique
Budgetary control
Top down budgeting
Bottom-up budgeting
Zero based budgeting
Flexible budgeting.

155

Leadership

156

Leadership
It is the ability of a manager to induce subordinates to
work with confidence & zeal.
Powers :
- Legitimate power
- Reward power
- Coercive power
- Expert power
- Information power

Importance
Leaders provide task support
Psychological support
Development of individual
Building the team spirit
Motivation
Provides feedback
Facilitates change

Qualities of a leader
Intelligence
Personality
Maturity
Vision & foresight
Motivation
Acceptance of responsibility
Self confident
Trustworthy & honest
Risk-taker
Knowledge of human skill

Styles . . .
Autocratic leadership
Positive & negative style of leadership
Democratic
Bureaucratic
Situational
Laissez-faire/free-rein

Leadership skills
Human skill
- Empathy
- Objectivity
- Communication skills
- Teaching skill
- Social skill

Conceptual skills
- Understand the organizational behavior
- Understand the competitors of the firm
- Knowing the financial status of the firm

 Technical skills
Personal skill
- Intelligence
- Emotional maturity
- Personal motivation
- Flexibility of mind

Theories of leadership
Trait theory of leadership
Behavioral theory of leadership
Management grid/leadership grid
Situational theory of leadership

Trait theory of leadership

Seeks to determine personal characteristics of effective leaders.
Achievement drive: High level of effort, high levels of ambition, energy and initiative
Leadership motivation: an intense desire to lead others to reach shared goals
Honesty and integrity: trustworthy, reliable, and open
Self-confidence: Belief in ones self, ideas, and ability
Cognitive ability: Capable of exercising good judgment, strong analytical abilities,
and conceptually skilled
Knowledge of business: Knowledge of industry and other technical matters
Emotional Maturity: well adjusted
Others: creativity and flexibility

- Good personality
- Intellectual ability
- Initiative
- Imagination
- Maturity
- Desire to respect responsibility
- Self confidence
- Flexibility
- Fairness

Limitations of The Trait Theory

There is bound to be some judgment in determining who is regarded as
a good or successful leader
There is also a disagreement over which traits are the most important
for an effective leader
Assumes that leadership is an inborn quality which is not true.
Leaders may prove successful in one situation due to some traits but
unsuccessful in another situation.

Behavioral theory
Behavioral theories of leadership are based upon the belief that
great leaders are made, not born.
This leadership theory focuses on the actions of leaders not on
mental qualities or internal states.(i.e. what the leader do rather than
who the leader is)
According to this theory, people can learn to become leaders
through teaching and observation.
Behavior of good leader motivates people.

Theories
- IOWA studies
- Ohio state university studies
- University of Michigan studies
- Managerial Grid
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 IOWA Studies
- Kurt Lenin, Ronald Lippitt & Ralph White conducted research
on impact of 3 leadership styles.
- Autocratic, democratic & laissez- faire
- Studied on the behavior of 20 boys.

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Ohio state university studies

In 1945 the Bureau of Business Research at Ohio State University
conducted research.
- Goal of research was
1. Determine what affect these behavior had on employee
satisfaction & performance.
2. Identify the best leadership style
-. 2 set of Questionnaire was developed LBDQ & SBDQ to assess
leadership styles
-. After analysis 2 important leadership behaviors were drawn:
. Initiating -structure behavior: clearly define role of leader &
follower, deciding how task to be performed
. Consideration -behavior: concern for follower & trying to
establish a friendly & supportive work climate based on mutual
trust.
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 Leaders High score IS- high producing group & rated highly by superiors
- Subordinate of those leader have low morale & higher grievances
Leaders high on C
- Led group with high morale low productivity
- Further concluded that high on both IS & C highly satisfy their
superior(by achieving high performance) & subordinates by
improving their morale

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University of Michigan studies

- Under Rensis likert, researcher conducted interview with
managers & employees who reported them.
- Researcher concluded that 2 leadership styles influence
employee performance & satisfaction.
1. Task centered: Pays close attention on work, deeply
interested in performance
2. Employee centered: Emphasizes on employee well-being
rather than task.
Conclusion:
EC leaders supervised groups with higher morale & productivity
TC leaders supervised groups with low morale & productivity
EC style is the superior style.
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Management grid/leadership grid

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Country Club Leadership High People/Low Production (1,9)

- Concern about the needs and feelings of members of his/her team.
- Much attention to the security and comfort of the employees.
- The resulting atmosphere is usually friendly, but not necessarily very productive.
Impoverished Leadership Low Production/Low People(1,1)
- evade and elude.
- To preserve job and job seniority,
- protecting themselves by avoiding getting into trouble.
- Not to be held responsible for any mistakes, which results in
lessinnovativedecisions.

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Produce or Perish Leadership High Production/Low People (9,1):

- control and dominate.
- employee needs unimportant;
- they provide their employees with money and expect performance in return.
- pressurize their employees through rules and punishments to achieve the company goals.
- This style is often used in cases of crisis management.

Team Leadership High Production/High People (9,9):

- contribute and commit.
- encourage teamwork and commitment among employees.
- This method relies heavily on making employees feel themselves to be constructive parts
of the company.
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Middle-of-the-Road Leadership Medium

Production/Medium People (5,5):
- balance and compromise.
- Try to balance between company goals and workers' needs.
- Hope to achieve suitable performance but doing so gives away a bit of each
concern so that neither production nor people needs are met.

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Contingency & Situational theories

Situational theories propose that leaders choose the best
course of action based upon situational variables.
Different styles of leadership may be more appropriate
for certain types of decision-making.
There is no best style of leadership, leader has to change
his style from situation to situation
Recent research suggests that managers should diagnose
the situation, select a leadership & implement it.
1. Path goal theory
2. Fiedlers contingency theories
3. The Hersey-Blanchard Situational Leadership Theory

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Path goal theory

Pathgoal model, is a leadership theory in the field of
organizational studies developed by Robert House, an
Ohio State University graduate, in 1971 and revised in
1996
The managers job is viewed as guiding workers to
choose the best paths to reach their goals, as well as the
organizational goals.
Provides coaching, guidance , support & rewards.

In particular, leaders:
Clarify the path so subordinates know which way to go.
Remove roadblocks that are stopping them going there.
Increasing the rewards along the route.
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Supportive leadership
Considers the needs of the follower,
Show concern for their welfare and
Create a friendly working environment.
Increase the follower's self-esteem and
Make the job more interesting.

Directive leadership
Tells followers what needs to be done and
Gives appropriate guidance along the way.
Gives them schedules of specific work to be done at specific times.
Rewards may also be increased as needed

Participative leadership
Consulting with followers
Taking their ideas into account when making decisions and
taking particular actions.
This approach is best when the followers are expert and
their advice is both needed and they expect to be able to
give it.

Achievement-oriented leadership
Setting challenging goals, both in work and in selfimprovement (and often together).
High standards are demonstrated and expected.
The leader shows faith in the capabilities of the follower to
succeed.
This approach is best when the task is complex.
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Fiedlers contingency theories

- Oldest & most controversial theory & also known as
contingency /situational leadership
- Propounded by Fred E Fiedler asserts that ldsp style depends on 3
elements
1. Leader-member relation
2. Task structure
3. Position power
-. In order to classify leadership styles he has developed a index
called as least preferred coworker scale.
-. Relationship motivated & task motivated.
-. A high LPC score suggests that the leader has a Employee
orientation, while a low LPC score indicates a task orientation.

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The Hersey-Blanchard Situational Leadership Theory

The Hersey-Blanchard Situational Leadership Theory was
created by Dr Paul Hersey, a professor and author of "The
Situational Leader," and Ken Blanchard, author of the best
selling "The One-Minute Manager,
The theory states that instead of using just one style,
successful leaders should change their leadership styles
based on the maturity of the people they're leading and the
details of the task.
Using this theory, leaders should be able to place more or
less emphasis on the task, and more or less emphasis on the
relationships with the people they're leading, depending on
what's needed to get the job done successfully

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182

According to Hersey and Blanchard, there are four main leadership styles:
Telling (S1) Leaders tell their people exactly what to do, and how to do it.
Selling (S2) Leaders still provide information and direction, but there's more
communication with followers. Leaders "sell" their message to get the team on board.
Participating (S3) Leaders focus more on the relationship and less on direction. The
leader works with the team, and shares decision-making responsibilities.
Delegating (S4) Leaders pass most of the responsibility onto the follower or group.
The leaders still monitor progress, but they're less involved in decisions.

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Maturity Level

Most Appropriate
Leadership Style

M1: Low maturity

S1: Telling/directing

M2: Medium maturity,

limited skills

S2: Selling/coaching

M3: Medium maturity,

higher skills but
lacking confidence

S3:Participating/supporting

M4: High maturity

S4: Delegating

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Maturity Levels
According to Hersey and Blanchard, knowing when to use each style
is largely dependent on the maturity of the person or group you're
leading. They break maturity down into four different levels:
M1 People at this level of maturity are at the bottom level of the
scale. They lack the knowledge, skills, or confidence to work on
their own, and they often need to be pushed to take the task on.
M2 At this level, followers might be willing to work on the task,
but they still don't have the skills to do it successfully.
M3 Here, followers are ready and willing to help with the task.
They have more skills than the M2 group, but they're still not
confident in their abilities.
M4 These followers are able to work on their own. They have high
confidence and strong skills, and they're committed to the task

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Management of Change

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Need of change
Why change???
- Increase efficiency
- Control
- Internal pressures
- Changes in workforce
- Market factors
- Economic factors
- Technological factors etc.

Management of change
Forces
- Driving forces
- Restraining forces

Change process
- Unfreezing
- Moving
- Refreezing

Resistance to change
Individual
- Insecurity
- Social factors
- Lack of knowledge about the change
- Lack of faith in managers
- Different perception
- Not aware of benefits of change
- Peer pressure
Organizational
- Cost
- Organizational structure
- Organizational commitment

 Overcoming resistance to change

- Education & communication
- Participation & involvement
- Facilitation & Support
- Negotiation & agreement
- Guarantee job security
- Manipulation & Co-optation

Steps in mgmt of change

Perceive a situation for change
Analyze the existing situation
Prepare a plan for change
- Change implemented in systematic manner
- People participate
- Communication
- All dept coordination

Try the plan

Overcome resistance to change
Implement the change
Review the change