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The managerial function of leading is defined as the process of influencing people so that they will contribute to organizational and group goals. Motivation is a general term applying to the entire class of drives, desires, needs, wishes, and similar forces.


The carrot is money in the form of pay of bonuses. Even though money is not the only motivating force, it has been and will continue to be an important one. The trouble with the money carrot approach is that too often everyone gets carrot, regardless of performance, through such practices as salary increases and promotion by seniority, automatic merit increases, and executive bonuses not based on individual manager performance. The stick, in the form of feat-fear of loss of job, loss of income, reduction of bonus, demotion, or some other penalty has been and continues to be a strong motivator. It often gives rise to defensive or retaliatory behavior, such an union organization, poor-quality work, executive in difference, failure of a manager to take any risks in decision making, or even dishonesty.


Assumptions of Theory X:

Average human beings have an inherent dislike of work and will avoid it if they can. Because of this human characteristic of disliking work, most people must be coerced, controlled, directed, and threatened with punishment to get them to put forth adequate effort toward the achievement of organizational objectives. Average human beings prefer to be directed, with to avoid responsibility, have relatively little ambition, and want security above all.

Theory Y
Assumptions under Theory Y: The expenditure of physical effort and mental effort in work is as natural as play or rest. External control and the threat of punishment are not the only mans for producing effort toward organizational objectives. The degree of commitment to objectives is in proportion to the size of the rewards associated with their achievement. Average human beings learn, under proper conditions, not only to accept responsibility but also to seek it. The capacity to exercise a relatively high degree of imagination, ingenuity, and creativity in the solution of organizational problems is widely, not narrowly, distributed in the population. Under the conditions of modern industrial life, the intellectual potentialities of the average human being are only partially utilized.


Definition: A leader is one who guides and directs other people. A leader gives the efforts of his followers a direction and purpose by influencing their behavior . -Louis A. Allen Ingredients of Leadership : 1) The ability to use power effectively and in a responsible manner. 2) The ability to comprehend that human beings have different motivating forces at different times and in different situations. 3) The ability to inspire followers to apply their full capabilities to the work. 4) The ability to act in a manner that will develop a climate conducive to responding to and arousing motivations.

The trait theory is very simple. It does not consider the whole environment of the leadership, of which trait may be only one factor. In brief this approach presents the following problems: There cannot be generalization of traits for a successful leader. No evidence has been given about the degree of the various traits because people have various traits with difference degrees. There is a problem of measuring the traits. There have been many people with the traits specified for leader, but they were not good leaders. This approach, however, gives indication that leader should have certain personal characteristics.

Leadership based on the use of Authority

1) Autocratic or authoritarian style leader a) strict autocratic 2) Benevolent autocratic 3) Incompetent autocratic a) democratic leader b) free-rein leader c) paternalistic style leaders

Likerts Four system management

System 1 : Management is described as exploitive-authoritative, its managers are highly autocratic, have little trust in subordinates, motivate people through fear and punishment and only occasional rewards, engage in downward communication. System 2 : Management is called as benevolent-authoritative, its managers have a patronizing confidence and trust in subordinates, motivate with rewards and some fear and punishment, permit some upward communication. System 3 : Management is called as Consultative, managers in this system have substantial but not complete and trust in subordinates, usually try to make use of subordinates ideas and opinions use rewards for motivation. System 4 : Management is the most participative of all and referred to it as Participative-group, system 4 managers have complete trust and confidence in subordinates in all matters.


A well known approach to defining leadership styles is the managerial grid, developed some years ago by Robert Blake and John Mouton. Building on previous research that showed the importance of a managers having concern both for production and for people, Blake and Mouton devised a clever device to dramatize this concern. This grid, has been used throughout the world as a means of training managers and of identifying various combinations of leadership styles. The grid dimensions. The grid has two dimensions: concern for people and concern for production, As Blake and Mouton have emphasized, their use of the phrase concern for is meant to convey how managers are concerned about production or how they are concerned about people, and not such things as how much production they are concerned about getting out of group.

Committee a group of persons to whom, as a group, some matter is committed. A committee is a formal group of individuals who meet regularly to solve strategic problems. Executive committees entrusted with decision making powers. However some committees are constituted to offer advices for decision making by chief executive. NATURE OF COMMITTEE: The natures of committees are: It provides well balanced and competent advice for the executives. It integrates the concepts and knowledge of cross functional areas. It provides the integrations of ideas of various executives. It provides voluntary acceptance and interested execution of plans, policies through participation.

Reasons for using Committee

Committees are constitutional and used for the following reasons: Multimanagement issues : Certain issues need multimanagement approach in solving them. Committees are used to deal with such issues. Expertise : Committees are used to have the expertise of various managers in making decisions. Team approach : Committees are used when the execution is to be done through by team. Innovativeness / Creativity : Committees are used when the business or managerial activity needs innovation in problem solving. No body to bell the cat : Committees are used when no on in the company wants to take the risk or responsibility of dealing with a particular issue. Delay the Decision : Management entrust the decisions to the committee when it would like to delay the decision-making. Strategic / Critical Issues : Management constitute committees to deal with the strategic and critical issues.

Types of Committees
Committees are of four types. They are:

Strategic Committees : these committees are formed to formulate strategic and make strategic decisions. Executive Committees : these committees are empowered with the decision-making of operational issues or implementing strategic issues. Advisory Committees : these committees are constituted with the senior and experienced executives in order to offer advices to the chief executive and in crisis situations these committees have authority to offer advices but not to take decision pf implementing decisions. Joint Action Committees : these committees are constituted when decisions are to be implemented by a group of employees drawn from various departments.

Merits of committees
The following are the merits of committees: Sound decisions Rational decisions Availability of exercise Co-ordination A holistic approach Participative management Employee empowerment Management training

Demerits of committee
The following are the demerits of committee: Time consumption Cost of decisions Impracticability of decisions Indecisions Absence of seriousness Domination Fail to see the total