PERSPECTIVE MANAGEMENT

PROF. Jairaj Kochavara August 2010

Perspective Management

List of books to be read

1. Management- Principles & Guidelines-Duening & Ivancevich2. Management-A Competency-Based Approach- Hellreigel, Jackson & Slocum3. Management- A Global Perspective- Weihrich & Koontz4. The Practice of Management- Peter F. Drucker5. Organization Theory-Structure, Design and Applications-Stephen P. Robbins6. Management-A Global & Entrepreneurial Perspective-

Weihrich,Cannice & Koontz7. Principles of Management- Tripathi & Reddy

Basic Definitions connected with ManagementOrganization: An organization has four essential elements (a) Group of people (b) Interacting with each other (c )In a structured manner (d) Towards a common objectiveManagement: Implies getting things done through and with peopleManager: He is the dynamic, life-giving element in every organization. And it is the quality and performance of its managers which is the only effective advantage an enterprise in a competitive economy can have and particularly in a business enterprise.Three elements stand out in a manager- competence, integrity and performanceWho is a manager? The CEO or the middle manager or the supervisor?A manager’s decision-making,action and behaviour are all geared towards ‘Economic Performance’.The objective of a business enterprise could be Survival, Profit and /or Growth ? Peter Drucker feels otherwise-’creating a customer’.

Basic Definitions connected with ManagementThe Manager has the following responsibilities:1. Managing Managers2. Managing Worker and Work3. Managing a Business4. Managing TimeA Manager has to manage Resources- 5 Ms- Money, Materials,

Machines, Methods and Man. One of these resources is different from the others. Which one and why?

What about Time as a resource?A manager also performs the following functions:Planning, Organizing.Staffing, Directing and Controlling orLeading,Planning,Organizing and ControllingPlanning –determines what results the organization will achieveOrganizing- specifies how it will achieve the resultsControlling –determines whether the results will be achievedLeading- through planning, organizing and controlling managers

exercise leadership

Perspective ManagementAn Organization is a coordinated group of people who function to achieve a particular goalA Manager is a person who plans, organizes,leads, and controls the allocation of human,material, financial, and information resources in pursuit of organizational goals.He hires, trains, and motivates others to manage people who do that jobManagement refers to a group of managersThey perform tasks like planning, organizing, leading, and controlling the work of the organization.Management refers to the tasks and activities involved in directing an organization or one of its units: planning ,organizing, leading and controllingTypes of Managers:Functional managers-supervise employees having expertise in one area, such as accounting, human resources,sales, finance, marketing, or productionGeneral managers-are responsible for the operations of more complex units- for example a company or a division

Perspective ManagementManaging a BusinessThe Manager has the skills, the competence and the experience that are common and therefore transferable in the form of analytical and administrative skills which are extremely important but secondary to the primary objectives of the enterprise.The manager can improve his performance in all areas of management, including managing the business, through the systematic studies of the principles,the acquisition of organized knowledge and the systematic analysis of his own performanceBut the ultimate test of a manager is achievement rather than knowledge. Results,remain,of necessity, both proof and aim.Besides,because of the importance of the business enterprise in today’s world, Management inevitably has become one of the most influential groups.Management is not only a creature of the economy but a creator as well. and to manage a business means managing by objectives

Perspective ManagementManaging ManagersFor achieving Economic Performance , the manager has to make productive use of material and human resources and implies performing the function of managing managers. It is only the human resources who are capable of enlargement. Man alone can grow and develop.Leadership and the ‘spirit of the company’ is provided by management. The goals are for management people and the performance is management performance and if the enterprise fails it is manage,nt who is responsible.Management is also the most costliest resource and therefore has to be properly utilized and is a multifaceted thing and vital to the business

Perspective ManagementManaging Worker and WorkWork has to be performed from unskilled to highly skilled, from worker

to vice president. The human resource requires motivation,leadership, status, participation, satisfactions, incentives and rewards and function and it is only management, and management alone which can provide the same, Management is the activating organ within the organization.

Time ManagementFurthermore there is one more important factor in every management

problem, every decision, every action- not properly speaking a fourth function of management but a fourth dimension-time management.

a) It is the essence of economic and technological progress that the time-span for the fruition and proving out of a decision is steadily lengthening

b) Management ,almost alone has to live always in the both the present and the future. Research expenditures incurred today affect tomorrow’s results

PERSPECTIVE MANAGEMENTGOALS:Most sciences share four goals-to describe, understand,predict and control some phenomena. O.B. has the following goals1.Describe, systematically, how people behave under a variety of circumstances2.Understand why people behave as they do.3.Predicting future employee behaviour4.Control at least partially, and develop some human activity at work Managers can utilize the tool of O.B.to influence human behaviour.skill development, team effort and productivityFORCES: There are a wide array of issues and trends that affect the nature of organizations today. They can be classified under four areasPEOPLE, STRUCTURE, TECHNOLOGY and the ENVIRONMENT

ORGANIZATIONAL BEHAVIOUR Key forces affecting Organizational Behavior

People•Individuals

•Groups

Environment•Government•Competition

•Societal pressure

Organizational Behavior

Technology•Machinery

•Computer hardware&software

Structure•Jobs

•Relationships

PERSPECTIVE MANAGEMENTEffective Managers are required in all types of organizations-big or

small,manufacturing or service,profit-making or philantrophic. In fact, having talented people is so essential or the success of the organization expressed as “the ability to attract, develop and keep talented people.”

Managers have to have certain competencies for being effective.“Competencies are a combination of knowledge, skills, behaviours, and

attitudes that contribute to personal effectiveness.”Managerial Competencies are sets of knowledge, skills, behaviours, and

attitudes that a person needs to be effective in a wide range of positions and various types of organizations.

There are six key managerial competencies:1. Communication2. Planning and Administration3. Teamwork4. Strategic Action5. Global Awareness6. Self-Management

Perspective Management A Model of Managerial Effectiveness

ManagerialEffectiveness

Teamwork

GlobalAwareness

StrategicAction

Planning &Administration

Communication

Self-Management

Perspective ManagementManagerial functions are generally the same for first-line superiors, middle managers and top executives. Besides managers obtain the results by establishing an environment for effective and efficient performance of individuals working together in groups.Managerial knowledge is classified according to functions of Planning, Organizing, Staffing, Leading and Controlling .The Manager has to deal with the Internal and External Environment

Organization

InternalEnvironment

ExternalEnvironment

( PESTLIED )

( OCTAPACE)

Perspective ManagementDefinition of ManagementManagement is the process of designing and maintaining an environment in which individuals, working together in groups, efficiently accomplish selected aims.This definition when expanded means the following:1.As managers, people carry out the managerial functions of planning, organizing, staffing, leading and controlling2. Management applies to any kind of organization3. It applies to managers at all levels4. The aim of all managers is the same: to create a surplus5. Managing is concerned with productivity; this implies efficiency and effectiveness Efficiency is ‘doing things right’;that is ,it is a measure of how well resources are used to achieve results Effectiveness is ‘doing the right things’;this is about selecting the right objectives to pursue in the first placeManagers should be both Efficient and Effective but effectiveness is the critical issue.

Perspective Management- PlanningA manager’s most essential task is to see that everyone understands the

group’s purposes and objectives and its methods of attaining themPlanning involves selecting missions and objectives and the actions to

achieve them; that is choosing from among alternatives future courses of action.

Planning bridges the gap from where we are to where we want to be.Planning by its very nature consists of 4 major aspects:1. Its contribution to purpose and objectives2. Its primacy among the manager’s tasks3. Its pervasiveness4. The efficiency of resulting plansPlanning and controlling are very closely connected and are inseparable.

A plan without controlling aspects included or controls without planning both are useless for the manager and serve no purpose

Perspective Management- Planning

Plans/Objectives & how to

achieve them

What kind ofO.S.to have

What kind of people we need

and when

How mosteffectively

to lead people

By furnishingstandardsof control

Which helpsus know

Which affects the kindof leadership we have and direction

In order to ensuresuccess of plans

O

S

L

C

Perspective Management- PlanningTerminology used in planning:1. Objectives and Goals:They represent not only the end point in

planning but also the end point for organizing,staffing, leading and controlling

2. Strategies: is defined as the determination of the basic long-term objectives of an enterprise and the adoption of courses of action and allocation of resources necessary to achieve these goals.

3. Policies:are also plans and define an area within which a decision is to be made and ensure that the decision will be consistent with, and contribute to, an objective.

4. Procedures: are plans that establish a required method of handling future activities

5. Rules: spell out specific required actions or non-actions, allowing no discretion

6. Programs: are a complex of goals, policies, procedures, rules, task assignments, steps taken, resources to be employed, and other elements necessary

Perspective Planning- PlanningPlanning is a vital and necessary management function. The functions of

organizing, leading, and controlling all carry out the objectives and goals determined by planning. All organizations operate in uncertain environments and Planning helps it to adapt to change and uncertainty.Formal Planning is an activity that distinguishes managers from non-managers. Formal Planning distinguishes effective managers from ineffective ones.

Planning includes all the activities that lead to the definition of objectives and to the determination of appropriate courses of action to achieve those objectives.

There are the following 4 benefits to planning:1. Planning forces managers to think ahead2. It leads to the development of performance standards that enable

more effective management control3. Having to formulate plans forces management to articulate clear

objectives4. Planning enables an organization to be better prepared for sudden

developments

Perspective Management- PlanningThe 4 aspects can be explained in terms of:(a) Increasing time spans between present decisions and future results(b) Increasing organizational complexity(c) Increased external change(d) Planning and other management functions Types of Planning:Although effective planning focuses on the custome and on issues of

quality and competitiveness, planning activity differs in scope, time-frame, and level of detail.

Scope: refers to the range of activities covered by the planTime frame: is the period considered by the plan, ranging from short

term and long termLevel of detail: concerns the specificity of the planThere are 3 types of Plans:1. Strategic2. Operational3. Tactical

Perspective Management-PlanningStrategic Planning:The activities that lead to the definition of objectives

for the entire organization and to the determination of appropriate strategies for achieving those objectives

Operational Planning:Translates the broad concepts of the strategic plan into clear numbers, specific steps, and measurable objectives in the short term

Tactical Planning: planning that deals more with issues of efficiency than with long term effectiveness

There are the following elements in Planning:1. Objectives2. Actions3. Resources4. Implementation e.g. achieve a 12% ROI by end of 2009 introducing 5 new products in 2009 resources of Rs. 10 m. assignment and direction of personnel

Perspective Management- Planning The Planning Process

Establishobjectives

TakeSpecificactions

Use Resourcesefficiently

MonitorThe

implementation

Feedback

Conflict among Objectives:1. Short-term profits vs long-term growth2. Direct sales effort vs development effort3. Greater penetration of present markets vs developing new markets4. Achieving long- term growth through related businesses vs unrelated businesses5. Profit objectives vs non-profit objectives( i.e. CSR )6. Growth vs stability7. Low-risk environment vs high-risk environment

Perspective Management- PlanningMeasurement of objectives is an essential part of the planning exercise

and consists of 5 important dimensions including:1. Profitability2. Competitiveness3. Efficiency4. Flexibility5. Quality

Profitability: There are various ratios like ROI,etc.“ stated mission of the company is to create value over time for the

owners of the business.” This is for three reasons:1. Increasing shareowner value over time is the job the economic

system demands of management2. Increased shareowner value contribution to society in very

meaningful ways;3. Focusing on creating value over the long term keeps executives from

acting shortsighted

Perspective Management- PlanningCompetitiveness:Well-managed organizations establish objectives that concentrate on specific rates of increase in sales and market share.I f the economy is growing at a particular rate then the company should grow at a much higher rate. The main factors include the following:1.Customer values- Customer Value= Benefit/Price2.Shareholder values- satisfactory return on investment in the short, medium and long term3.The ability to act and react within a competitive environmentEfficiency- short-run efficiencies to bring about the prospect of long-run profitability. Ratios include return on assets( net profit divided by total assets) when compared with similar organizations,.Efficiency directly influences performance of both human and non-human resourcesFlexibility-quality of organizations to continually develop new strategies and adapt to market realities, and then to shift all aspects so that they are congruent with the new strategies. Flexible organizations use their structure as a source of competitive advantage.

Perspective Management- PlanningQuality:The main proponents of Quality have been W. Edwards Deming, Phil Crosby and Joseph Juran. All of them laid down various principles of Quality which derive from meeting or exceeding the customer’s expectations.Deming’s 14 points regarding Total Quality Management are as under:1.Create constancy of purpose for improvement of products and services2.Adopt the new philosophy3.Cease dependence on mass inspection4.End the practice of awarding business on price tag alone5.Improve constantly the system of production and service6.Institute training7.Institute leadership8.Drive out fear9.Break down barriers between staff areas10Eliminate slogans, exhortations and targets for the workforce11Eliminate numerical quotas12Remove barriers to pride of work13Institute a vigorous program of education and retraining14Take action to accomplish the transformation

Perspective Management- PlanningACTIONS:Whatever the name, a planned action is directed towards

changing a future condition-that is, achieving an objective.e.g. productivity increases can be achieved through a variety of means ,

including improved technology, employee training, management training, reward systems and improved working conditions.

Planning is a management process, deductive in nature and designed to produce orderly results.

1) Forecasting:is an important element of the planning function that must make two basic determinations

(a)W hat level of activity can be expected during the planning period (b)What level of resources will be available to support the projected

business activity In a business organization, the critical forecast is the sales

forecast.The sales forecast includes past and current information about the firm’s product, price, advertising and cost of goods sold.External conditions to be measured include the price of competing products, the levels of consumer income, consumer credit interest rates, and other measures of local economic activity.

Perspective Management-PlanningOne important aspect which is connected with forecasting is Scenario Construction. This is a technique for combining possible environmental developments in a systematic way to help managers assess possible consequences of alternative courses of action.There are some factors within the control of managers while there are others beyond their control.e.g.actions affecting sales include price changes, marketing and sales activities, and product developmentExternal factors include price of competing activities, substitute products, competitors’ sales and marketing activities and general economic conditions( expansion, recession, inflation)Resources:Resources are defined as financial, physical, human, time or other assets of the organization. These resources are controlled by Budget which is a predetermined amount of resources linked to an activity.A close relationship exists between budgeting as a planning activity and budgeting as a control technique. Further elaboration is given below:

Management’s Objectives for the Organization

Sales BudgetForecast of quantities soldForecast of rupee income

Other IncomeInterest IncomeMiscellaneous Income

Production B Mktg B Admn.B Misc. BUnits to be prod. Promotion C For each Interest on Cost of materials Selling expenses dept. LoansDirect labor costs by territories Other

Financial BudgetBudgeted balance sheetSupporting budgets

Less

Results in

The Budgeting Process

Perspective Management-Evolution of Management ThoughtFrederick Winslow Taylor: He is known as the ‘Father of Scientific

Management’.He had studied firsthand the problems and attitudes of the shop-floor workers and was able to see the possibilities of improvement in the quality of management.

Taylor’s major concern throughout most of his life was to increase the efficiency in production, not only to reduce the costs and raise profits but also to make possible increased pay for workers through their higher productivity.Taylor saw productivity as the answer to higher profits an higher wages,emphasizing what constitutes a “a fair day’s work” and “a fair day’s wage”.Taylor’s precepts which are the fundamental belies of the modern manager are as follows:

1. Replacing rules of the thumb with science( organized knowledge)2. Obtaining harmony in group action, rather than discord3. Achieving co-operation amongst human beings, rather than chaotic

individualism4. Working for maximum output, rather than restricted output5. Developing all workers to the maximum extent possible for their

own and their company’s highest prosperity.

Perspective Management- Evolution of Management ThoughtHenry l. Gantt & Frank and Gillian Gilbreth- followers of TaylorGantt emphasized the need for ‘ harmonious cooperation’ between management and labor and the importance of systems and that amongst all problems of management the human element is the most important one.He is well-known for his graphic methods of describing plans and methods of management control as also emphasizing time, cost etc.He is the author of the Gantt Chart which became the forerunner of modern techniques of PERT/CPM.Frank and Lillian Gilbreth-both of them put Taylor’s ideas to practical application in the form of Time and Motion study thereby reducing the number of motions of the bricklayer’s job from 18 to 5 and doubling his productivity without incurring any greater additional expenditure.While Frank emphasized efficiency, Lillian took interest in the human aspects of management

Perspective Management-Evolution of Management ThoughtHenri Fayol: He is perhaps the real father of modern management theory. He had described the activities of an industrial undertaking in terms of 6 activities as under:

Financial

Commercial

Technical

Financial

Security

Accounting

ManagerialPlanningOrganizationCommandCoordinationControl

Manager’sActivities

Perspective Management- Evolution of Management ThoughtHenri Fayol’s General Principles of Management:1. Division of Work2. Authority and Responsibility3. Discipline4. Unity of Command5. Unity of Direction6. Subordination of Individual to General Interest7. Remuneration8. Centralization9. Scalar chain10. Order11. Equity12. Stability of tenure13. Initiative14. Esprit de corpsWhile emphasizing planning, organizing,commanding,coordinating and

controlling, Fayol maintained that these principles apply not only to business but to political, religious,philanthropic, military and others.

Perspective Management-Evolution of Management ThoughtEmergence of Behaviour Sciences:Psychology and Social TheoryHugo Munsterberg- the father of Industrial Psychology made it clear that his objectives were as follows:1.How to find people whose mental qualities best fit them for their job2. Under what psychological conditions the greatest and most satisfactory output can be obtained from the work of every person3. How a business can influence workers in such a way as to obtain the best possible results from them. Like Taylor he also wanted a mutuality of interests between Management and labor and hoped to reduce their working hours, increase their wages, and raise their “level of life”.Max Weber: On the sociological side, it was Max Weber who wrote with empirical analysis about the church, government, military and business.He wrote extensively on hierarchy,authority and bureaucracy stating that clear rules,definition of tasks and discipline are the foundation of all social organizations.

BUREAUCRACY

‘Bureau’ means desk; ‘Cracy’ means rule ; Bureaucracy means ’rule of the desk’

Common qualities attributed to a bureaucracy;

(a) Inefficiency

(b) Red Tapeism Other Aspects….

(c) Paper shifting (a) Equity-just treatment for everyone

(d) Rigid application of rules (b) Goal-directed rational behaviour

(e) Redundancy of efforts (c )Emphasize technical expertise

(d) Discount tradition or charisma

(e) Rules and regulations apply to all-

Features of a Bureaucracy no special favors

• Hierarchy (f) Competence basis for entry and progress

Record keeping in system

• Regulation

• Impersonality

• Administrative staff

• Formal selection

Perspective Management-Evolution of Management ThoughtBehavioural Sciences contd.Hawthorne Studies-Elton Mayo:The studies which were conducted to see the impact of illumination and other conditions on workers and their productivity. These experiments were conducted in Western Electric Company first between 1924 and 1927 and then from 1927 and 1932.It was found that productivity improved when illumination was either increased or decreased. This was further investigated and social factors like morale, interrelationships, ‘sense of belonging’ and effective management. Group behaviour through interpersonal skills as motivating,counseling,leading and communicating. This phenomenon is called the Hawthorne Effect.These experiments led to increased emphasis on the behavioural sciences as applied to management and to the recognition that managers operate in a social system. In other words, business operations do not only consist of machinery and methods but a social system- there is therefore a sociotechnical system in operation. It is extremely important to have a deeper and greater understanding of the same.

Perspective Management-Evolution of Management ThoughtManagerial Roles ApproachHenry Mintzberg: Describes what roles managers play from CEOS to first-line supervisors.His view was that managers do not perform the classical management functions like planning, organizing,co-ordinatingAnd controlling but engage in a variety of other activities

Interpersonal RolesFigureheadLeaderLiaison

Decisional RolesEntrepreneurDisturbance handlerResource allocatorNegotiator

Informational RolesMonitorDisseminatorSpokesperson

Perspective Management-Evolution of Management ThoughtMcKinsey’ 7-S Approach

Strategy

Structure Systems

Skills Style

Shared Values

Staff

Perspective Management-ORGANIZINGGood people can make any organization work but vagueness in

organization is a good thing in that it forces teamwork. However, there can be no doubt that good people and those who want to cooperate will work together most effectively if they know the parts they are to play in any team operation and the way their roles relate to one another.Designing and maintaining these systems of roles is basically the managerial function of organizing.

Organizing is :1) The identification and classification of required activities2) The grouping of activities necessary to attain objectives3) The assignment of each grouping to a manager(delegation) necessary

to supervise it4) The provision for coordination horizontally( on the same or a similar

organizational level)and vertically( for example corporate headquarters,division, and department) in the organizational structure

Organization implies a formalized intentional structure of roles and positions

Perspective Management- OrganizingAspects of Organizing:(a)Formal and Informal(b)Span of Control(c )Problems with levels in organization (1) Levels are expensive (2) Levels complicate communication (3) Levels complicate planning and controlThe principle of the span management states that there is a limit to the number of subordinates a manager can effectively supervise, but the exact number will depend on the impact of underlying factors(d) Gracuinas’ formula: n-1 C= n ( 2 + n-1 ) c= number of relationships n= number of subordinates(e) Richman’s case

Perspective Management- OrganizingFactors which affect the span of control:1. Amount of training2. Clarity and delegation of authority3. Clarity of plans and repetitiveness of operations4. Verifiability of objectives5. Changes in external and internal environments6. Communications techniques7. Interaction between superior and subordinates8. Meetings effectiveness9. Number of specialities at lower and middle levels10. Competence and training of the manager11. Complexity of the task12. Subordinates’ willingness to assume responsibility13. Maturity of subordinates

Perspective Management- OrganizingJob Design:Jobs are the building blocks of Organizational Structure. Job

Design refers to the process by which managers determine individual job tasks and authority. Apart from issues of effectiveness in economic, political and monetary terms, job designs have social and psychological implications. Job can provide income,meaningful life experiences,self-esteem,esteem from others, regulation and patterns of work flow, and association with others.

Besides seeking the most efficient way to do a series of tasks there is the issue of Quality of Work Life which refers to a satisfaction of worker’s personal needs.

Job design and redesign techniques attempt1. To identify the most important needs of employees and the

organization and2. To remove obstacles in the workplace that frustrate those needs

Perspective Management- Organizing

Procedure for obtainingfacts about a job

Job titleDuties

Machines usedMaterials used

SupervisionWorking conditions

Hazards

EducationWork experience

JudgmentVision

Physical skillsCommunication skillsAbility to work with

others

JOB ANALYSIS

JOB DESCRIPTION JOB SPECIFICATION

Perspective Management- Organizing Steps in a typical Job Analysis:1.Examine the overall organization2.Select the jobs to be analysed3.Collect data on jobs4.Prepare job description5.Prepare job specification

Job Design:Job range: The number of tasks assigned to a particular jobJob depth: The relative freedom that the job holder has in the performance of assigned dutiesJob relationships:Consists of departmentalization and spans of controlN. B. The above aspects are termed job characteristics. However the job characteristics model (JCM) an consist of 5 important core dimensions.This is called the Perceived Job Content

Perspective Management- Organizing

Perceived Job Content consists of:Skill variety: The degree to which the job requires a variety of different activities in carrying out the workTask identity: The degree to which the job requires completion of an identifiable task or outputTask significance:The degree to which the job has an impact on the other jobs within the organization or related organizationsAutonomy: The degree to which the job provides the worker with the freedom and discretion insetting work schedules, and in determining the appropriate means of doing the jobFeedback: The degree to which individuals are able to obtain data concerning the fulfillment of the job requirements

Perspective Management-Organizing-The Job Characteristics Approach

High internalWork motivation

High-qualityWork performance

High satisfactionWith work

Low absenteeismAnd turnover

Skill varietyTask identity

Task significance

Autonomy

Feedback

Experiencedmeaningfulness

of work

Experienced responsibilityfor outcomes

of work

Knowledge of actual results

of work activities

Strength ofemployees’ need

for growth

Core JobDimensions

Critical Psychological States Personal and Work Outcomes

Perspective Management- StaffingThe managerial function of staffing is defined as filling and keeping filled,positions in the organizational structure.This is done by identifying workforce requirements, inventorying the people and1.Recruiting2.Selecting3.Placing4.Promoting5.Appraising6.Planning the careers of7.Compensating8.Training & Developingn.b. The above tasks are to be accomplished Efficiently and EffectivelyStaffing is separated from Organizing because of:(a)Staffing organizational roles not recognized by practicing managers(b)Staffing places greater emphasis on the human element(c )Important body of knowledge and experience has been developed(d)Managers often overlook the fact that staffing is their responsibility and not that of the Personnel department

LEADERSHIP

Three aspectsLEADERSHIP-The idea or concept of leadershipLEADERS-the desired characteristics of effective leadersLEADING-the successful practice of Leadership

Leadership begins and ends with Human Beings- their Aspirations, Emotions and Motivation

Definitions of Leadership:Dean Acheson “The successful resolution of problems”Harry Truman “ Persuading people to do what they should have done in the first place”Tacitus “ Reason and calm judgment “Napoleon “ Dealing in hope”John Harvey Jones “Getting extraordinary performance out of ordinary people”

Leadership is the art or process of influencing people so thatthey will strive willingly and enthusiastically towardsachievement of group goals.

QUALITIES OF A LEADER

1. Personal Integrity 2. Willingness to accept responsibility3. Understanding People4. Communication5. Selflessness6. Confidence7. Intuition8. Vision9. Ability to make decisions10. Ability to simplify situations

Physicalenergyappearanceheight

Mentalintelligenceability

Personalityadaptabilityaggressivenessenthusiasmself-confidence

Task-relatedachievement drivePersistenceinitiative

SocialCooperativenessInterpersonal skills & administrative ability

LEADERSHIPLeadership Perceptions

1.YOU MUST BE PERCEIVED AS ONE OF THEM

2.YOU MUST BE PERCEIVED AS MOST OF THEM

3.YOU MUST BE PERCEIVED AS BEST OF THEM

LEADERSHIP STYLES

1. AUTHORATIVE 2. DEMOCRATIC 3. LAISSEZ FAIRE 4. BUREAUCRATIC 5. MANIPULATIVE 6. EXPERT 7. SITUATIONAL

Leadership is an art of influencing others

It requires a Knowledge-base and Expertise which few have butwhich can be developed with effort and dedication.

Leadership involves taking those you are in charge of, from where they are now to where they will be. Leadership is a result of:(a) Strong Will-Power(b) Hardwork. (c) Vision(d) Choosing the right priorities

Leadership Roles:1. Educates2. Motivates3. Communicates4. Supports5. Leads Change6. Turns every situation

into a learning experience

LEADERSHIP

LEADERSHIP

1. Leadership by DIRECTION2. Leadership by ATTRACTION3. Leadership by ASSOCIATION4. Leadership by DELEGATION

FOLLOWERS

1. People who make impossible things possible.(ASSETS)2. People who make possible things possible( NEUTRAL)/Avg.3. People who make possible things impossible (LIABILITIES)

LEADERSHIP THEORIES

1.TRAITS theory of leadership2.Leadership BEHAVIOUR theories

(a) The Michigan Studies(b) The Ohio State Leadership Studies

3. CONTIGENCY Theories of Leadership

(a)Tannenhaun & Schmidt’s Leadership Pattern(b)Fiedler’s Contingency Theory© Fiedler.s Cognitive Resource Theory(d)Path-Goal Theory of Leadership(e)Hershey & Blanchard’s Situational Leadership(f)Leader-Member Exchange Theory

4.Other APPROACHES TO Leadership(a) Likert’s System Four(b) The Managerial Grid

5. Recent Approaches to Leadership

a(A

( contd.)

LEADERSHIP THEORIES (contd)

(a) CHARISMATIC and SYMBOLIC Leadership(b) TRANSACTIONAL & TRANSFORMATIONAL Leadership(c) Leadership SUBSTITUTES(d) Leadership EFFECTIVENESS Model- is it there?

TRAITS THEORY OF LEADERSHIPThere are 6 categories of traits as under:

1. Physical traits- age,height and weight.2. Background characteristics-education,social class or status,

Mobility, experience

3. Intelligence-ability, judgement, knowledge4. Personality- aggressiveness,alertness,dominance,

Decisiveness,enthusiasm,extroversion,independence,Self confidence, authoritarianism

5 Task-related Characteristics- achievement need, responsibility,

Initiative,persistence.

6. Social characteristics-supervisory ability,cooperativeness, .

popularity, prestige, tact, diplomacy

Popularity,prestige, tact, diplomacy

DIFFERENTIATION BETWEEN MANAGER AND TRANSFORMATIONAL LEADER

1. Forces in the Manager( value system, confidence in subordinates,predispositions and feeling of security and insecurity

2. Forces in the subordinate (their needs for dependence or independence, readiness to assume responsibility,tolerance

for ambiguity, abilities, knowledge, experience and disposition

to participate in decision -making

3. Forces in the situation ( type of organization, group

effectiveness, time pressures and the nature of the problem

itself.

(Tannenbaum &Schmidt)

n. b. A successful leader is one who accurately determines what behaviour would be most appropriate in any given situation and is flexible enough to adopt the most functional leadership style.

Situational Approach: (Tannenbaum & Schmidt’s)

• This approach suggests the use of the authority of the manager(boss –centered leadership or the area of freedom given to the subordinates(subordinate- centered leadership)

There are three Forces involved viz.

Forces in the MANAGER-value system,confidence

in subordinates,predisposition and feelings of security and insecurity.

Forces in the SUBORDINATES- their needs for dependence and independence,readiness to assume responsibility, tolerance of ambiguity, abilities, knowledge, experience and disposition to

participate in decision –making.

Forces of the SITUATION- Type of organization,,group effectiveness,

time pressures and the nature of the problem itself.

n. b. A successful leader is one who can accurately assess the forces that determine

what behaviour is most appropriate in any given situation and is flexible enough to adopt the most functional leadership style

Boss-CenteredLeadership

Subordinate- Centered Leadership

Use of authority by Manager

Area of Freedom For Subordinates

Manager makesDecision andAnnounces

Manager

“Sells”

Decision

ManagerPresentsProblem andGetsSuggestions

Manager

ManagerLets Group Make The Decision

The Tannenbaum and Schmidt’s Contingency Model

1.9 Management( Country Club)Thoughtful attention toneeds of people leadsto a friendly and comfortable organization atmosphere andwork tempo.

9.9 Management( Team)Work accomplished is from committed people with interdependence through a common stake in organization purpose and with trust and respect

5.5 Management( Middle of the Road )Adequate performance through balance of work requirementsAnd maintaining satisfactory Morale.

1.1 Management(Impoverished) Exertion of minimum effortis required to get work doneand sustain organizational

morale)

Efficiency results fromarranging work in such away that human elementshave little effect.

CONCERN FOR PRODUCTION

1.9) Management ( Autocratic)

CONCERN

FOR

PEOPLE

MANAGERIAL GRID

FIEDLER’S CONTINGENCY THEORY

This theory develops a model to predict group effectivenessAnd is based on a consideration of ‘Best Fit’ or Match among1. The leader’s style2. Leader-member relations( L-M-R)3. Task –structure4. The power of the leader’s positionSituational CharacteristicsL-M-R good good good good poor poor poor poorTask-S high high low low high high low lowPosn.-P strog weak stng weak weak strng strng weak

Situational high moderate lowControl of L

Effective L Task- Relationship Task-Style Oriented Oriented Oriented

FIEDLER’S COGNITIVE RESOURCE THEORY

Leader should exercise a directive or non-directive style depending upon:1. The leader’s and group member’ abilities2. Group support for the leader.3. The experience of both the leader and the subordinates4. The types of stress experiencedWhen the leader is able( competent), not stressed(relaxed )(a)And supported by the followers, directive behaviour works well(b)A non-directive style is appropriate when group members’abilities are high and the leader receives strong support from them©When the leader is stressed,experience rather than ability would playa more significant part.(d) If member support is low and the leader has no impact, taskdifficulty and other factors in the situation would have more influence than the leader’s behaviour.

PATH-GOAL THEORY OF LEADERSHIP

Leadership StyleDirectiveSupportiveAchievement OrientedParticipative

Situational FactorsSubordinates’ Attributes-Abilities-Internal or External Locus of control

Work Setting Attributes-Task-Formal Authority System-Primary Work Group

Outcomes

Job SatisfactionAcceptance of LeaderMotivated BehaviourExpectancy that(1) Effort will lead to performance(2) Performance will lead to valued rewards

LIKERT’S SYSTEM FOUR Characteristic Exploitative Benevolent Consultative Participative Authoritative Authoritative Group Trust in subs. None Condescend Substantial Complete Motivation Fear & Rewards & Rewards, Group accomplished threats punishment punishment, participation by involvement involvement Communicatn. v.limited Limited Fairly wide. WidespreadInterpersonal v.limited Limited Moderate ExtensiveInteractionDecision makg. centralized Mostly Broadly part. Dispersed centralized cipation allow.Goal setting centralized Mostly Some part. Participation centralized allowed allowedControl centralized Mostly Moderate Extensive centralized delegation delegationInformal Always dev. Mostly dev. Maybe dev. Informal Orgn.Orgn. & in oppn. Partially in & may support is the same as to the orgn. Oppn. To O. or opp the O the formal O.