PERSPECTIVE MANAGEMENT

Prof. Jairaj Kochavara August 2010

Perspective Management List of books to be read 1. Management- Principles & Guidelines-Duening & Ivancevich 2. Management-A Competency-Based Approach- Hellreigel, Jackson & Slocum 3. Management- A Global Perspective- Weihrich & Koontz 4. The Practice of Management- Peter F. Drucker 5. Organization Theory-Structure, Design and Applications-Stephen P. Robbins 6. Management-A Global & Entrepreneurial PerspectiveWeihrich,Cannice & Koontz 7. Principles of Management- Tripathi & Reddy

Basic Definitions connected with Management Organization: An organization has four essential elements (a) Group of people (b) Interacting with each other (c )In a structured manner (d) Towards a common objective Management: Implies getting things done through and with people Manager: 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 performance Who is a manager? The CEO or the middle manager or the supervisor? A managers 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 Management The Manager has the following responsibilities: 1. Managing Managers 2. Managing Worker and Work 3. Managing a Business 4. Managing Time A 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 or Leading,Planning,Organizing and Controlling Planning determines what results the organization will achieve Organizing- specifies how it will achieve the results Controlling determines whether the results will be achieved Leading- through planning, organizing and controlling managers exercise leadership

Perspective Management An Organization is a coordinated group of people who function to achieve a particular goal A 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 job Management refers to a group of managers They 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 controlling Types of Managers: Functional managers-supervise employees having expertise in one area, such as accounting, human resources,sales, finance, marketing, or production General managers-are responsible for the operations of more complex units- for example a company or a division

Perspective Management Managing a Business The 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 performance But 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 todays 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 Management Managing Managers For 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 Management Managing Worker and Work Work 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 Management Furthermore 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 tomorrows results

PERSPECTIVE MANAGEMENT GOALS:Most sciences share four goals-to describe, understand,predict and control some phenomena. O.B. has the following goals 1.Describe, systematically, how people behave under a variety of circumstances 2.Understand why people behave as they do. 3.Predicting future employee behaviour 4.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 productivity FORCES: There are a wide array of issues and trends that affect the nature of organizations today. They can be classified under four areas PEOPLE, STRUCTURE, TECHNOLOGY and the ENVIRONMENT

ORGANIZATIONAL BEHAVIOUR Key forces affecting Organizational Behavior People Individuals Groups Environment Government Competition Societal pressure Structure Jobs Relationships

Organizational Behavior

Technology Machinery Computer hardware&software

PERSPECTIVE MANAGEMENT Effective 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. Communication 2. Planning and Administration 3. Teamwork 4. Strategic Action 5. Global Awareness 6. Self-Management

Perspective Management A Model of Managerial Effectiveness Communication Planning & Managerial Administration Effectiveness Strategic Action Self-Management

Teamwork

Global Awareness

Perspective Management Managerial 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 External Environment ( PESTLIED ) Internal Environment ( OCTAPACE) Organization

Perspective Management Definition of Management Management 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 controlling 2. Management applies to any kind of organization 3. It applies to managers at all levels 4. The aim of all managers is the same: to create a surplus 5. 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 place Managers should be both Efficient and Effective but effectiveness is the critical issue.

Perspective Management- Planning A managers most essential task is to see that everyone understands the groups purposes and objectives and its methods of attaining them Planning 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 objectives 2. Its primacy among the managers tasks 3. Its pervasiveness 4. The efficiency of resulting plans Planning 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

What kind of O.S.to have

Plans/Objectives & how to achieve them

Which helps us know What kind of S people we need and when Which affects the kind of leadership we have and direction How most L effectively to lead people In order to ensure success of plans By furnishing standards C of control

Perspective Management- Planning Terminology 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- Planning Planning 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 ahead 2. It leads to the development of performance standards that enable more effective management control 3. Having to formulate plans forces management to articulate clear objectives 4. Planning enables an organization to be better prepared for sudden developments

Perspective Management- Planning The 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, timeframe, and level of detail. Scope: refers to the range of activities covered by the plan Time frame: is the period considered by the plan, ranging from short term and long term Level of detail: concerns the specificity of the plan There are 3 types of Plans: 1. Strategic 2. Operational 3. Tactical

Perspective Management-Planning Strategic 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. Objectives 2. Actions 3. Resources 4. 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

Establish objectives Take Specific actions Use Resources efficiently Monitor The implementation

Feedback Conflict among Objectives: 1. Short-term profits vs long-term growth

2. 3. 4. 5. 6. 7. Direct sales effort vs development effort Greater penetration of present markets vs developing new markets Achieving long- term growth through related businesses vs unrelated businesses Profit objectives vs non-profit objectives( i.e. CSR ) Growth vs stability Low-risk environment vs high-risk environment

Perspective Management- Planning Measurement of objectives is an essential part of the planning exercise and consists of 5 important dimensions including: 1. Profitability 2. Competitiveness 3. Efficiency 4. Flexibility 5. 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 management 2. 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- Planning Competitiveness: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/Price 2.Shareholder values- satisfactory return on investment in the short, medium and long term 3.The ability to act and react within a competitive environment Efficiency- 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 nonhuman resources Flexibility-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- Planning Quality: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 customers expectations. Demings 14 points regarding Total Quality Management are as under:
1.Create constancy of purpose for improvement of products and services 2.Adopt the new philosophy 3.Cease dependence on mass inspection 4.End the practice of awarding business on price tag alone 5.Improve constantly the system of production and service 6.Institute training 7.Institute leadership 8.Drive out fear 9.Break down barriers between staff areas 10Eliminate slogans, exhortations and targets for the workforce 11Eliminate numerical quotas 12Remove barriers to pride of work 13Institute a vigorous program of education and retraining 14Take action to accomplish the transformation

Perspective Management- Planning ACTIONS: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 firms 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-Planning One 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 development External 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:

The Budgeting Process Managements Objectives for the Organization

Sales Budget
Forecast of quantities sold Forecast of rupee income

Other Income
Interest Income Miscellaneous Income

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

Results in

Financial Budget
Budgeted balance sheet Supporting budgets

Perspective Management-Evolution of Management Thought Frederick 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. Taylors 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 days work and a fair days wage.Taylors 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 discord 3. Achieving co-operation amongst human beings, rather than chaotic individualism 4. Working for maximum output, rather than restricted output 5. Developing all workers to the maximum extent possible for their own and their companys highest prosperity.

Perspective Management- Evolution of Management Thought Henry l. Gantt & Frank and Gillian Gilbreth- followers of Taylor Gantt 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 Taylors ideas to practical application in the form of Time and Motion study thereby reducing the number of motions of the bricklayers 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 Thought Henri 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 F Commercial i n a n Managers c Activities i a l Security

Technical

Accounting

Planning Organization Command Coordination Control

Managerial

Perspective Management- Evolution of Management Thought Henri Fayols General Principles of Management: 1. Division of Work 2. Authority and Responsibility 3. Discipline 4. Unity of Command 5. Unity of Direction 6. Subordination of Individual to General Interest 7. Remuneration 8. Centralization 9. Scalar chain 10. Order 11. Equity 12. Stability of tenure 13. Initiative 14. Esprit de corps While 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 Thought Emergence of Behaviour Sciences:Psychology and Social Theory Hugo 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 job 2. Under what psychological conditions the greatest and most satisfactory output can be obtained from the work of every person 3. 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 Paper shifting

Other Aspects.

(c)

(a) Equity-just treatment for everyone

(b) Goal-directed rational behaviour (c )Emphasize technical expertise (d) Discount tradition or charisma (e) Rules and regulations apply to all-

(d) Rigid application of rules (e) Redundancy of efforts

Features of a

Bureaucracy

no special favors (f) Competence basis for entry and progress in system

Hierarchy Record keeping

Regulation Impersonality
Administrative staff

Formal selection

Perspective Management-Evolution of Management Thought Behavioural 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 Thought Managerial Roles Approach Henry 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-ordinating And controlling but engage in a variety of other activities Interpersonal Roles Figurehead Leader Liaison Informational Roles Monitor Disseminator Spokesperson Decisional Roles Entrepreneur Disturbance handler Resource allocator Negotiator

Perspective Management-Evolution of Management Thought McKinsey 7-S Approach Strategy Structure Systems

Shared Values

Skills

Style

Staff

Perspective Management-ORGANIZING Good 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 activities 2) The grouping of activities necessary to attain objectives 3) The assignment of each grouping to a manager(delegation) necessary to supervise it 4) 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- Organizing Aspects 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 control The 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 ) (e) Richmans case

c= number of relationships n= number of subordinates

Perspective Management- Organizing Factors which affect the span of control: 1. Amount of training 2. Clarity and delegation of authority 3. Clarity of plans and repetitiveness of operations 4. Verifiability of objectives 5. Changes in external and internal environments 6. Communications techniques 7. Interaction between superior and subordinates 8. Meetings effectiveness 9. Number of specialities at lower and middle levels 10. Competence and training of the manager 11. Complexity of the task 12. Subordinates willingness to assume responsibility 13. Maturity of subordinates

Perspective Management- Organizing Job 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 workers personal needs. Job design and redesign techniques attempt 1. To identify the most important needs of employees and the organization and 2. To remove obstacles in the workplace that frustrate those needs

Perspective Management- Organizing JOB ANALYSIS Procedure for obtaining facts about a job JOB DESCRIPTION Job title Duties Machines used Materials used Supervision Working conditions Hazards JOB SPECIFICATION Education Work experience Judgment Vision Physical skills Communication skills Ability to work with others

Perspective Management- Organizing Steps in a typical Job Analysis: 1.Examine the overall organization 2.Select the jobs to be analysed 3.Collect data on jobs 4.Prepare job description 5.Prepare job specification Job Design: Job range: The number of tasks assigned to a particular job Job depth: The relative freedom that the job holder has in the performance of assigned duties Job relationships:Consists of departmentalization and spans of control N. 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 work Task identity: The degree to which the job requires completion of an identifiable task or output Task significance:The degree to which the job has an impact on the other jobs within the organization or related organizations Autonomy: 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 job Feedback: The degree to which individuals are able to obtain data concerning the fulfillment of the job requirements

Perspective Management-Organizing-The Job Characteristics Approach

Core Job Dimensions Skill variety Task identity Task significance Critical Psychological States Personal and Work Outcomes

Experienced meaningfulness of work Experienced responsibility for outcomes of work Knowledge of actual results of work activities Strength of employees need for growth

High internal Work motivation High-quality Work performance High satisfaction With work Low absenteeism And turnover

Autonomy

Feedback

Perspective Management- Staffing The 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 and 1.Recruiting 2.Selecting 3.Placing 4.Promoting 5.Appraising 6.Planning the careers of 7.Compensating 8.Training & Developing n.b. The above tasks are to be accomplished Efficiently and Effectively Staffing 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 aspects LEADERSHIP-The idea or concept of leadership LEADERS-the desired characteristics of effective leaders LEADING-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 that they will strive willingly and enthusiastically towards achievement of group goals.

QUALITIES OF A LEADER 1. Personal Integrity 2. Willingness to accept responsibility 3. Understanding People 4. Communication 5. Selflessness 6. Confidence 7. Intuition 8. Vision 9. Ability to make decisions 10. Ability to simplify situations Personality Physical Mental energy intelligence adaptability aggressiveness appearance ability enthusiasm height Social self-confidence Cooperativeness Interpersonal skills & administrative ability

Task-related achievement drive Persistence initiative

LEADERSHIP Leadership 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 Leadership is an art of influencing others It requires a Knowledge-base and Expertise which few have but which can be developed with effort and dedication. Leadership involves taking those you are in charge of, from where Leadership Roles: they are now to where they will be. 1. Educates 2. Motivates Leadership is a result of: 3. Communicates (a) Strong Will-Power 4. Supports (b) Hardwork. 5. Leads Change (c) Vision 6. Turns every situation (d) Choosing the right priorities a learning experience

LEADERSHIP 1. 2. 3. 4. Leadership by DIRECTION Leadership by ATTRACTION Leadership by ASSOCIATION 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 leadership 2.Leadership BEHAVIOUR theories (a) The Michigan Studies (b) The Ohio State Leadership Studies 3. CONTIGENCY Theories of Leadership (a)Tannenhaun & Schmidts Leadership Pattern (b)Fiedlers Contingency Theory Fiedler.s Cognitive Resource Theory (d)Path-Goal Theory of Leadership (e)Hershey & Blanchards Situational Leadership (f)Leader-Member Exchange Theory 4.Other APPROACHES TO Leadership (a) Likerts System Four (b) The Managerial Grid 5. Recent Approaches to Leadership ( contd.) ( a

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

TRAITS THEORY OF LEADERSHIP There 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, knowledge 4. 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 .

DIFFERENTIATION BETWEEN MANAGER AND TRANSFORMATIONAL LEADER

D Manager I Goals
Administers Rules Maintains

Transformational Leader Vision Innovates Intuition/ Creativity Develops Focuses on people Inspires trust Progress Long-range view Asks What and Why

Focuses on systems Relies on control Stability Short-range view Asks How and When

(Tannenbaum &Schmidt) 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. 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 & Schmidts)

This approach suggests the use of the authority of the manager(boss centered leadership or the area of freedom given to the subordinates(subordinatecentered 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-Centered Leadership Use of authority by Manager

SubordinateCentered Leadership

Area of Freedom For Subordinates Manager Sells Decision Manager Presents Problem and Gets Suggestions M Manager Lets a Groupn Make a The g e Decision r

Manager makes Decision and Announces

The Tannenbaum and Schmidts Contingency Model

C O N C E R N F O R P E O P L E

MANAGERIAL GRID 1.9 Management( Country Club) 9.9 Management( Team)

Thoughtful attention to needs of people leads to a friendly and comfortable organization atmosphere and work tempo. 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 requirements And maintaining satisfactory Morale.

1.1 Management(Impoverished)

Efficiency results from Exertion of minimum effort arranging work in such a is required to get work done way that human elements and sustain organizational have little effect. morale) CONCERN FOR PRODUCTION

1.9) Management ( Autocratic)

FIEDLERS CONTINGENCY THEORY This theory develops a model to predict group effectiveness And is based on a consideration of Best Fit or Match among 1. The leaders style 2. Leader-member relations( L-M-R) 3. Task structure 4. The power of the leaders position Situational Characteristics L-M-R good good good good poor poor poor poor Task-S high high low low high high low low Posn.-P strog weak stng weak weak strng strng weak Situational Control of L Effective L Style high moderate low

TaskOriented

Relationship Oriented

TaskOriented

FIEDLERS COGNITIVE RESOURCE THEORY Leader should exercise a directive or non-directive style depending upon: 1. The leaders and group member abilities 2. Group support for the leader. 3. The experience of both the leader and the subordinates 4. The types of stress experienced When 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 play a more significant part. (d) If member support is low and the leader has no impact, task difficulty and other factors in the situation would have more influence than the leaders behaviour.

PATH-GOAL THEORY OF LEADERSHIP Outcomes Leadership Style Directive Supportive Achievement Oriented Participative Situational Factors Subordinates Attributes -Abilities -Internal or External Locus of control Work Setting Attributes -Task -Formal Authority System -Primary Work Group Job Satisfaction Acceptance of Leader Motivated Behaviour Expectancy that (1) Effort will lead to performance (2) Performance will lead to valued rewards

LIKERTS SYSTEM FOUR

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