Effectiveness of leadership depends on the situation. The styles a manager chooses may depend on the following situations.
o Forces in the manager i.e. his value system & confidence in subordination
o Forces in subordinate e.g. subordinates expectation
o Forcer in the situation e.g. types of the organization, the nature of the problem, the pressure of time, etc.
Conclusion
Varying Leadership Style
Three factors that influence which leadership style to use.
1. The manager’s personal background: What personality, knowledge, values, ethics, and experiences does the manager have. What does he or she think will work?
2. Staff being supervised: Staff individuals with different personalities and backgrounds; the leadership style used will vary depending upon the individual staff and what he or she will respond best to.
3. The organization: The traditions, values, philosophy, and concerns of the organization influence how a manager acts
Determining the Best Leadership Style
• Leaders tasks should be more relationship (people) oriented
• Leaders have a dominant style, one they use in a wide variety of situations
• No one best style - leaders must adjust their leadership style to the situation as well as to the people being led
• Many different aspects to being a great leader - a role requiring one to play many different leadership styles to be successful.
5.1.1. LEADERSHIP THEORIES
For decades, leadership theories have been the source of numerous studies. In reality as well as in practice, many have tried to define what allows authentic leaders to stand apart from the mass! Hence, there are many theories on leadership as there are philosophers, researchers and professors that have studied and ultimately published their leadership theory. Every leader is different, and no single theory works for all leaders Therefore, theories are commonly categorized by which aspect is believed to define the leader the most. The most widespread one's are:
1. Great Man Theory,
2. Trait Theory,
3. Behavioral Theories.
4. Contingency Theories,
1. GREAT MAN THEORY (Thomas Carlyle, 1847)
This theory is often linked to 19th century philosopher and historian Thomas Carlyle, who commented that "The history of the world is the biography of great men." This theory is usually contrasted with a theory that talks about events occurring in the fullness of time, or when an overwhelming wave of smaller events cause certain developments to occur.
The Great Man theory assumes that the traits of leadership are intrinsic. That simply means that great leaders are born they are not made. This theory is based on the belief that leaders are exceptional people, born with innate qualities, destined to lead.
The idea of the Great Man also strayed into the mythic domain, with notions that in times of need, a Great Man would arise, almost by magic. Gender issues were not on the table when the 'Great Man' theory was proposed.
Cultural consequences of IHRM on company’s values, behavior, institutions, or...Masum Hussain
The objective of the study is to investigate and analyze the influence of culture on human resource management practices. The research is expected to answer the importance question: Are HRM practices influenced by national culture or not? It is generally accepted that the practices of management is considered to be universal until Hofstede (1980:42) published the seminal work: Culture’s Consequences: International Differences in Work Related Value in 1980. Hofstede’s work is the most popular in cross culture management studies so that his framework in national culture will be used in this research. Structural equation model (SEM) with Two Step Model Building Approach is used to test structural theory. It is used to test the hypotheses model statistically to determine the extent to which the proposed model is consistent with the sample data. SEM incorporates both confirmatory factor analysis and multiple regressions to estimate a series of interdependent relationship simultaneously. The results of descriptive analysis indicate that the national culture dimensions tend high for collectivism, power distance, masculinity and uncertainty avoidance, quite different from Hofstede (1980) findings that Indonesia has high collectivism, high power distance, and moderate in masculinity and low in uncertainty avoidance. While in Second Order Confirmatory Factor Analysis, collectivism, power distance and uncertainty avoidance are confirmed as a dimension of national culture but masculinity are not.
In structural testing, it indicates that two hypotheses i.e. the influence of national culture on career development and compensation are supported but the influence of national culture on staffing and participative management are not supported. Organizational culture also shows influence on staffing and participative management. One of human resource management practices i.e. career development influence on organizational performance but others such as staffing, participative management, and compensation does not. This study shows that national culture and organizational culture influence on some of human resource management practices. Therefore, this research supports the divergence theory that human resource management practices are culture-bound.
Culture is the unique dominant pattern of shared beliefs, assumptions, values, and norms that shape the socialization, symbols, language and practices of a group of people.
Organizational Culture
A common perception held by the organization’s members; a system of shared meaning.
Characteristics:
Innovation and risk taking
Attention to detail
Outcome orientation
People orientation
Team orientation
Aggressiveness
Stability
Do Organizations Have Uniform Cultures?
What Is Organizational Culture? (cont’d)
What Do Cultures Do?
How Culture Begins?
Keeping Culture Alive
Stages in the Socialization Process
How Employees Learn Culture
Creating An Ethical Organizational Culture
Creating a Customer-Responsive Culture..
Cultural Intelligence: A Leadership Skill for the FutureCheryl Doig
This presentation is for educators who wish to explore the increasing cultural diversity of staff, students and community and how cultural intelligence can be grown.
Meaning of Organizational Culture; Characteristics of Organization Culture; Types of Organization Culture/ Do Organizations Have Uniform Cultures? Functions of Organization Cultures; How Do Employees learn Culture? Creating an Ethical Organizational Culture
Creating a Customer-Responsive Culture.
In every organization there is a talk about organizational culture, that mysterious word that characterizes the qualities of a work environment. One of the key questions and assessments, when employers interview a prospective employee, explores whether the candidate is a good cultural fit. Culture is difficult to define, but you generally know when you have found an employee who appears to fit your culture. He just feels right.
CHAPTER SIX
LEADING/ DIRECTING FUNCTION
Learning Objectives:
To understand the meaning and nature of direction.
Present leadership theories and styles.
Present motivation theories.
Discuss the meaning and importance of communication.
Understand the types and forms of communication.
Understand the meaning, importance and techniques of coordination
5.1. INTRODUCTION
People are the most important resource in an organization. To achieve organizational objectives HR should be directed towards the accomplishment of goals. Hence, the successful achievement of organizational objectives is greatly the manifestation of the managers’ ability to lead employees.
5.2. MEANING AND NATURE OF DIRECTION
Direction is a vital managerial function, performed by every manager. Whenever decision is taken, it must be converted into action by proper implementation. Otherwise, it is of no use. Effective implementation of a decision is made possible by directions. Planning, organizing and staffing are concerned only with the preparation for work performance and it is the direction which stimulates the organization and its staff to execute the plans. Hence, it is also called ‘management-in-action’. Every manager gives direction to his subordinates as superior and receives directions as subordinate from his superior.
Different authors define leading in different ways, but the general ideas of each definition give the same messages. Therefore, directing is simply defined as;
The process of influencing people so that they will contribute to the organization & group goals or actuating organizational members to work efficiently & effectively for the attainment of organizational goals /objectives. Influencing means motivating people to contribute their maximum efforts for the achievement of organizational goals; but it does not to mean coercing/ forcing, imposing sanctions or pushing people at the behind.
A function of management which is related with instructing, guiding and inspiring human factor in the organization to achieve organizational mission and objectives.
According to Koontz and O’Donnel, “Direction is a complex function that includes all those activities which are designed to encourage subordinates to work effectively and efficiently in both the short and long term”.
Directing is the process of integrating the people with the organization, so as to obtain their willingness and enthusiastic co-operation for the achievement of its goals. It requires the integration of organizational & individual goals. It is the heart of managerial functions because it involves initiating actions.
5.3. ELEMENTS OF DIRECTING
Employees as individual or group members, contribute their efforts & abilities to achieve organizational goals which can result in advancement towards their own individual or group goals. Managers to direct individuals require three basic elements. They are
1. Leadership
2. Motivation &
3. Communication
Cultural consequences of IHRM on company’s values, behavior, institutions, or...Masum Hussain
The objective of the study is to investigate and analyze the influence of culture on human resource management practices. The research is expected to answer the importance question: Are HRM practices influenced by national culture or not? It is generally accepted that the practices of management is considered to be universal until Hofstede (1980:42) published the seminal work: Culture’s Consequences: International Differences in Work Related Value in 1980. Hofstede’s work is the most popular in cross culture management studies so that his framework in national culture will be used in this research. Structural equation model (SEM) with Two Step Model Building Approach is used to test structural theory. It is used to test the hypotheses model statistically to determine the extent to which the proposed model is consistent with the sample data. SEM incorporates both confirmatory factor analysis and multiple regressions to estimate a series of interdependent relationship simultaneously. The results of descriptive analysis indicate that the national culture dimensions tend high for collectivism, power distance, masculinity and uncertainty avoidance, quite different from Hofstede (1980) findings that Indonesia has high collectivism, high power distance, and moderate in masculinity and low in uncertainty avoidance. While in Second Order Confirmatory Factor Analysis, collectivism, power distance and uncertainty avoidance are confirmed as a dimension of national culture but masculinity are not.
In structural testing, it indicates that two hypotheses i.e. the influence of national culture on career development and compensation are supported but the influence of national culture on staffing and participative management are not supported. Organizational culture also shows influence on staffing and participative management. One of human resource management practices i.e. career development influence on organizational performance but others such as staffing, participative management, and compensation does not. This study shows that national culture and organizational culture influence on some of human resource management practices. Therefore, this research supports the divergence theory that human resource management practices are culture-bound.
Culture is the unique dominant pattern of shared beliefs, assumptions, values, and norms that shape the socialization, symbols, language and practices of a group of people.
Organizational Culture
A common perception held by the organization’s members; a system of shared meaning.
Characteristics:
Innovation and risk taking
Attention to detail
Outcome orientation
People orientation
Team orientation
Aggressiveness
Stability
Do Organizations Have Uniform Cultures?
What Is Organizational Culture? (cont’d)
What Do Cultures Do?
How Culture Begins?
Keeping Culture Alive
Stages in the Socialization Process
How Employees Learn Culture
Creating An Ethical Organizational Culture
Creating a Customer-Responsive Culture..
Cultural Intelligence: A Leadership Skill for the FutureCheryl Doig
This presentation is for educators who wish to explore the increasing cultural diversity of staff, students and community and how cultural intelligence can be grown.
Meaning of Organizational Culture; Characteristics of Organization Culture; Types of Organization Culture/ Do Organizations Have Uniform Cultures? Functions of Organization Cultures; How Do Employees learn Culture? Creating an Ethical Organizational Culture
Creating a Customer-Responsive Culture.
In every organization there is a talk about organizational culture, that mysterious word that characterizes the qualities of a work environment. One of the key questions and assessments, when employers interview a prospective employee, explores whether the candidate is a good cultural fit. Culture is difficult to define, but you generally know when you have found an employee who appears to fit your culture. He just feels right.
CHAPTER SIX
LEADING/ DIRECTING FUNCTION
Learning Objectives:
To understand the meaning and nature of direction.
Present leadership theories and styles.
Present motivation theories.
Discuss the meaning and importance of communication.
Understand the types and forms of communication.
Understand the meaning, importance and techniques of coordination
5.1. INTRODUCTION
People are the most important resource in an organization. To achieve organizational objectives HR should be directed towards the accomplishment of goals. Hence, the successful achievement of organizational objectives is greatly the manifestation of the managers’ ability to lead employees.
5.2. MEANING AND NATURE OF DIRECTION
Direction is a vital managerial function, performed by every manager. Whenever decision is taken, it must be converted into action by proper implementation. Otherwise, it is of no use. Effective implementation of a decision is made possible by directions. Planning, organizing and staffing are concerned only with the preparation for work performance and it is the direction which stimulates the organization and its staff to execute the plans. Hence, it is also called ‘management-in-action’. Every manager gives direction to his subordinates as superior and receives directions as subordinate from his superior.
Different authors define leading in different ways, but the general ideas of each definition give the same messages. Therefore, directing is simply defined as;
The process of influencing people so that they will contribute to the organization & group goals or actuating organizational members to work efficiently & effectively for the attainment of organizational goals /objectives. Influencing means motivating people to contribute their maximum efforts for the achievement of organizational goals; but it does not to mean coercing/ forcing, imposing sanctions or pushing people at the behind.
A function of management which is related with instructing, guiding and inspiring human factor in the organization to achieve organizational mission and objectives.
According to Koontz and O’Donnel, “Direction is a complex function that includes all those activities which are designed to encourage subordinates to work effectively and efficiently in both the short and long term”.
Directing is the process of integrating the people with the organization, so as to obtain their willingness and enthusiastic co-operation for the achievement of its goals. It requires the integration of organizational & individual goals. It is the heart of managerial functions because it involves initiating actions.
5.3. ELEMENTS OF DIRECTING
Employees as individual or group members, contribute their efforts & abilities to achieve organizational goals which can result in advancement towards their own individual or group goals. Managers to direct individuals require three basic elements. They are
1. Leadership
2. Motivation &
3. Communication
What is Leadership?
Leadership is the way to motivate people towards achieving definite goals of an organization.
Theories Of Leadership
Leadership theories can be defined in many ways but we will be discussing about the following leadership theories.
1. Trait Theory of Leadership
2. Situational/Contingency Theory of Leadership
3. Behavioral Thoery of Leadership
4. Path Goal Theory
5. Charismatic Leadership Theory
6. Transformational Theory
Leadership theories are the explanations of how and why certain people become leaders. They focus on the traits and behaviors that people can adopt to increase their leadership capabilities. Some of the top traits that leaders say are vital to good leadership include: Strong ethics and high moral standards.
This presentation is on leadership.
{Leadership is the art of influencing and inspiring subordinates to perform their duties willingly, competently and enthusiastically for achievement of group’s objectives.}
it covers following points :-
Meaning of Leadership
Features of Leadership
Importance of Leadership
Leader v/s Manager
Qualities/Traits of a Good Leader
Leadership Styles
Theories of Leadership
CHAPTER FIVE
STAFFING FUNCTION
After jobs are identified, grouped & organizational structure is created, then comes the other managerial task- staffing. Organizations possess & utilize different kinds of resources. Among these resources, human resources is the most important one. Without human resource other resources remain futile. Due to this fact organizations are said to be life less without human resource. "Human resource is the most important resource of an organization which deserves special treatment, respect & dignity" (Robert Own). Accordingly, staffing serves to obtain essential resources to an organization. It is the process of identifying human resource needs, procuring the necessary employee, training, utilizing and separation of these employees. The major objective of staffing function is enabling an organization to attract, to maintain, and to utilize efficient and effective workforce.
4.1. An overview of staffing
Staffing is the process of obtaining & maintaining capable & competent people to fill positions in organizational structure.
Earlier staffing was considered to be a part of organization function of management. It is now recognized as a separate management function. The reason for separating the staffing from organizing is to give proper emphasis to the actual meaning of managerial roles. The enterprise has to give due importance to human resource planning. It is the tendency in modern enterprises to create a separate department. It is for this purpose medium and large organizations have separate department known as personnel department or human resource department to perform staffing function.
The organization structure spells out various positions of the organization. Filling and keeping these positions with right people is the staffing phase of the management function. Staffing involves the determination of manpower requirements of the enterprise and providing it with adequate competent people at all levels.
Organizations require people who have different knowledge, skills & experiences to fill various positions to attain organizational objectives. Hence selection of the right person & placement in the right position are the main aspects of staffing.
4.2. The Staffing Process/Under taken by Human Resource Department
Staffing involves a series of steps. They are
1. HR planning (manpower planning)
2. Recruitment/pooling or attracting a potential candidates and selection
3. placement & Employment decision
4. Induction & orientation (socialization)
5. Training and development
6. Compensation & performance appraisal (PA)
7. Separation, Promotion, Transfer & Layoffs
1. Human Resource (HR) Planning/Man power planning
HR planning is the starting point in the process of staff procurement; and refers to the determination in advance the number & quality of people to be employed.
It the process of translating the overall organizational objectives, plans & programs to achieve specific performance into workforce
CHAPTER SEVEN
CONTROLLING
7.1. Introduction
Organizational resources are limited. Their acquisition & use are critical to the survival of the organization. Controlling is the last management function and it affects or is affected by the other four functions. Planning, organizing, staffing & directing must be monitored to maintain their effectiveness & efficiency. Efficiency and effectiveness are the measures of performance. Mangers review performances of employees daily, weekly, and monthly to determine actual performances.
7.2. Definition of Controlling
‘Controlling’ is an important concept and process in management. In the past managers believed that the necessity of control arose only when something went wrong. Then, the object of control was to find out the person responsible for these events and take actions against him. This is only negative view of control. In modern management, the primary object of control is to bring to light the mistakes or variations as soon as they appear between performance and standard laid down and then to take steps to prevent such variations in future. The control is aimed at results and not people as such. Its purpose is to assure that intended results occur and not that particular workers are reprimanded. Only a continuous control (and not occasional and emergency control) can achieve the objective.
According to Brech, “Controlling is checking current performance against predetermined standards contained in the plans, with the view to ensuring adequate progress and satisfactory performance”. In the words of George R. Terry,
“Controlling is determining what is being accomplished, that is, evaluating the performance and if necessary applying corrective measures so that the performance takes place according to plans”. To draw an analogy, it is like a thermostat in an air conditioning system which ensures that predetermined temperature is maintained.
The concept of controlling is often confused with lack of freedom. The opposite of control is not freedom but chaos or anarchy. Control is fully consistent with freedom. In fact they are interdependent. Without control freedom cannot be sustained for long. Without freedom control becomes ineffective. Both autonomy (freedom) and accountability are embedded in the concept of control.
7.3. The purpose of controlling
The purpose of controlling is to determine whether people & the various parts of an organization are on target, achieving the progress towards their objectives that they planned to achieve.
Management control is a systematic effort
o to design information feedback systems,
o to set performance standards with planning objectives
o to compare actual performances with those predetermined standards,
o to determine whether there are any deviations & to measure their significance, &
o to take any action required to assure that all organizational resources are being used in the most effective & efficient way in achieving organizational objectives.
Chapter Four
Organizing
1.1 Meaning and Definitions of Organizing
The word ‘organization’ has come from the word ‘organism’ which means a structure of interrelated and interdependent parts. The parts or components of organization consist of men, machines, materials, methods, money, functions, authority and responsibility. The task of organization is to unite or integrate these components effectively for the purpose of attaining the common goal. Organization is the foundation upon which the whole organization is built. Without efficient organization, no management can perform its function smoothly. Sound organization contributes greatly to the continuity and the success of organization. A poor organization structure makes good performance impossible, no matter how good the individuals are.
The term organization connotes different things to different people. For example, to the sociologists, organization means a study of interactions of people, classes or hierarchy of an enterprise. To the psychologists organization means an attempt to explain, predict and influence the behavior of individuals in an enterprise. The word ‘organization’ is also used widely to connote a group of people and the structure of relationships. In order to understand the meaning and characteristics of organization, we shall study it under the following heads:
(1) Organization as a group of persons.
(2) Organization as a structure of relationship.
(3) Organization as a function of management.
(4) Organization as a process.
(1) Organization as a group of persons: Organization is viewed as a group of people contributing their efforts towards certain goal. The concept of organizing began at the early stages of human civilization when two or more persons began to cooperate and combine together for fulfilling their basic needs of food, clothing, shelter and protection of life. Organization begins when people combine efforts for some common purpose. Chester I Barnard defined organization “as an identifiable group of people contributing their efforts. An organization comes into existence when there are a number of persons in communication and relationship to each other and are willing to contribute towards a common Endeavour. The group of people lay down rules and regulations and the formal structure or relationship among themselves”.
(2) Organization as a structure of relationships: Some people view organization as a structure of relationship. Organization sets up the scope of activities of the enterprise by laying down the structure of relationships. If organization is merely recognized as ‘structure’, it will be viewed as a static thing used to explain formal relationships But an organization is a ‘dynamic’ entity consisting of individuals,. Means, objectives and relationships among the individuals. However, the use of the term structure to denote organization is not used independently, but is combined with the term organization either in the form of organization structure
CHAPTER THREE
PLANNING
Learning Objectives:
To introduce the meaning and definitions of Planning
Analyze the nature and importance of planning.
Discuss various types of planning.
Understand types of plan.
Present steps in planning
2.1. DEFINING PLANNING
The management functions are planning, organizing, staffing, direction and controlling. These functions are essential to achieve organizational objectives. If objectives are not set then there is nothing to organize, direct and control. An organization has to specify what it has to achieve. Planning is related with this aspect.
Every person whether in business or not has framed a number of plans during his life. The plan period may be short or long. One of the characteristic of human being is that he plans. Planning is the first and foremost function of management. According to Koontz and O’Donnel “Planning is deciding in advance what to do, how to do it, when to do it and who is to do it. It bridges the gap from where we are and to where we want to go. It is in essence the exercise of foresight”. According to M.S. Hardly “Planning is deciding in advance what is to be done. It involves the selection of objectives, policies, procedures and programmes from among alternatives.
Planning- is the process of determining how the organization can get where it wants to go, and what it will do to accomplish its objectives. In more formal terms, planning is “the systematic development of action programs aimed at reaching agreed-upon business objectives by the process of analyzing, evaluating, and selecting among the opportunities which are foreseen.”
Planning- is a critical management activity regardless of the type of organization being managed. Modern managers face the challenge of sound planning in small and relatively simple organizations as well as in large, more complex ones, and in nonprofit organizations
Heying and Massie define “Planning is that function of the manager in which he decides in advance what he will do. It is a decision making process of a special kind. It is an intellectual process in which creative mind and imagination are essential”. Planning is an attempt to anticipate the future in order to achieve better performance.
In the business world, organizations should achieve their objectives. In order to achieve objectives, the organizations should plan. Planning process produces the plan.
Plan is a blueprint for action & prescribes activities necessary for an organization to realize its goals. Understanding of planning process requires knowing the relationship between goals, plans & controls as shown below.
Goals represent the designed position of an organization that is sought to be achieved; Plans establish the means for achieving the organization goals; and through planning managers outline the activities necessary to insure that the goals of the organization are achieved; and Controls monitor the extent to which goals have been achieved
CHAPTER ONE
Fundamentals of Management
1.1. Definitions of Management
There is no single, comprehensive and universally accepted definition of management. This holds true due to the following major reasons among others:
Different scholars view management from different perspectives
It has many areas of applications. It is applied in profit, not for profit, private, government, social and business organizations.
Management as a discipline is recent in origin and hence there are a number of theories being added to the field.
It is so broad that it is difficult to encompass all its aspects in a single definition.
It has undergone changes because of the developments in behavioral science and quantitative techniques.
There are different approaches to management, definitions change as the environment changes. The environment of an organization changes due to changes in the political, social, economic, ethical and other factors.
The following are among the most widely accepted definitions of management:
Management is … the organ of society specifically charged with making resources productive - Peter Drucker
Management is the process of designing and maintaining an environment in which individuals, working together in groups, efficiently accomplish selected aims - Koontz and Weihrich.
Management is a distinct process consisting of activities of planning, organizing, actuating and controlling, performed to determine and accomplish stated objectives with the use of human beings and other resources - Terry and Franklin.
The work involved in combining and directing the use of resources to achieve particular purposes is called management - David R. Hampton.
Management is the process of planning, organizing, leading and controlling the work of the organization members and of using all available organizational resources to reach stated organizational goals - Stoner, Freeman and Gilbert.
Management is the art of getting things done through people effectively and efficiently - Mary Parker Follett.
Effectiveness/Quality: is a way that produces a desired result.
Efficiency/Related to minimum Cost: is being capable of achieving the desired result with the minimum use of resources, time and effort.
1.2. Significance of Management
1) Encourages Initiative: Management encourages initiative. Initiative means to do the right thing at the right time without being told or influenced by the superior. The employees should be encouraged to make their own plans and also to implement these plans. Initiative gives satisfaction to employees and success to organization.
2) Encourages Innovation: Management also encourages innovation in the organization. Innovation brings new ideas, new technology, new methods, new products, new services, etc. This makes the organization more competitive and efficient.
3) Facilitates Growth and Expansion: Management makes optimum utilization of available resources. It reduces wastage and increase efficiency.
Chapter Two
Decision Making
Decision Making: is defined as the process of selecting or choosing the best course of action from numbers of alternatives based on the criteria. Because managers are continually confronted with opportunities and problems, they must constantly analyze the effect of different decisions on their organizations and select the alternative that will move the firm toward its stated objectives.
Types of Decisions: Several authors believe that there are two types of decisions: programmed & non-programmed decisions.
A. Programmed decisions: These decisions are "programmable" because of a specific procedure can be worked out to resolve them based on experience in similar situations.
• Once a standard procedure has been established, it can be used to treat all like situations.
• They usually involve an organization's every day operational and administrative activities
• They are primarily found at the middle and lower levels of management.
• Data used in making a programmed decision usually are complete and well defined.
• Participants know the details and agree on how to resolve the problem.
B. Non-programmed Decisions: are used to solve nonrecurring problems/Non-Repetitive problems.
• No well-established procedure exists for handling them, primarily because managers do not have experience to draw upon.
• In contrast to programmed decisions, available data are usually incomplete.
• Non programmable decisions are commonly found at the middle and top levels of management and often is related to an organization's policy-making activities such as whether to add a product to the existing product line, to reorganize the company, or to acquire another firm, are examples
The steps in decision making process include the following:
1. Ascertain the need for a decision/Identify the problem:
The decision making process begins by determining a problem exists; that is, there is an unsatisfactory condition.
2. Establish decision criteria:
Once the need for a decision has been determined, there comes a need to establish decision criteria which requires identifying those characteristics that are important in making the decision.
3. Allocate weights to criteria
The identified criteria should be weighted based on their importance and arranged in priority. This is because some are obviously more important than others and we need to weight each criterion to reflect its importance in the decision.
4. Develop Alternatives
This involves developing a list of the alternative that may be viable in dealing with the stated problem.
5. Evaluate Alternatives
Once the alternatives are enumerated. The decision maker must critically evaluate each one and identify the strong and weak points when compared against the criteria and the weights established. In evaluating each alternative, we not only consider things that can be measured in numerical terms such as time and various types of fixed & operating costs,
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2. Meaning and nature of direction
• Planning, organizing and staffing are concerned only
with the preparation for work performance.
• Different authors define leading in different ways, but
the general ideas of each definition give the same
messages. Therefore, directing is simply defined as:
• The process of influencing people so that they will
contribute to the organization & group goals; but it
does not to mean coercing/ forcing, imposing
sanctions or pushing people at the behind.
2
3. • Leading is instructing, guiding and inspiring human
factor in the organization to achieve objectives.
• Directing is the process of integrating the people with
the organization, to obtain their willingness and
enthusiastic co-operation for the achievement of its
goals.
• It is the heart of managerial functions because it is
involves with initiating actions.
3
4. Elements of directing
• Managers to direct individuals require three basic
elements. They are:
1. Leadership
2. Motivation
3. Communication
4
5. Leadership
• Some define leadership as an integral part of the
group process.
• Others define it primarily as an influence
process.
• Still others see leadership as the initiation of
structure and the instrument of goal
achievement.
• Several even consider leaders to be servants of
their followers.
• Despite the differences, the various definitions
of leadership share three common elements:
5
6. 1. First, leadership is a group phenomenon; there no
leaders without followers.
2. Second, leadership is goal directed.
3. Third, the presence of leaders assumes some form
of hierarchy within a group –formal and informal
• Leadership is a process whereby an individual
influences a group of individuals to achieve a
common goal.
6
7. Leadership at-Individual level involves mentoring,
coaching, inspiring and motivating.
At group level, leaders build team, create
cohesion/unity and resolve conflict.
At organizational level, leaders build culture, and
create change.
• According to Hersey and Blanchard, leadership is a
function of the leader, followers and situation which
can be depicted as:
L= f (L, F, S)
• Where L denotes leadership f- the function of, L-
leader, F-followers and S -the situation
7
8. Leadership Styles
• is the typical pattern of behavior a leader uses to
influence employees to achieve organizational goals.
• implies the ways in which the leaders exercise
leadership and the functions of leadership are carried
out.
Basic leadership styles
• Leadership styles are also broadly classified based on
three points of view: Motivation, Authority and
supervision.
• On the basis of motivation leadership style can be
positive or negative style.
• In positive style a leader motivates his followers to
work hard by offering them rewards.
8
9. • In negative styles, a leader forces his followers to work hard
and punishes them for lower productivity.
On the basis of Authority, leadership styles are:
1. Autocratic leadership style
2. Democratic leadership style
3. Laissez-faire leadership style
4. Bureaucratic leadership style
5. Situational leadership style
(The above listed 1, 2, 3, 4, 5 leadership styles are your individual assignment )
9
10. Leadership Theories
There are many theories on leadership as
philosophers, researchers and professors that have
studied and ultimately published their leadership
theory.
Every leader is different, and no single theory works
for all leaders.
The most widespread theories are:
1. Great man theory
2. Trait theory
3. Behavioral theories
4. Contingency theories
10
11. 1. Great man theory (Thomas Carlyle, 1847)
The Great Man theory assumes that the traits of
leadership are intrinsic, great leaders are born with
innate qualities –not made, leaders are exceptional
people lead.
Gender issues were not on the table when the 'Great
Man' theory was proposed.
Most leaders were male and the thought of a Great
Woman was generally in areas other than leadership.
Most researchers were also male, and this led to the
next school of Trait Theory.
11
12. 2. Trait theory :Late 1800s to mid-1940s
• This theory is similar to the Great Man theory. In
the 1920's and 1930's, leadership research focused
on trying to identify the traits that
differentiated leaders from non-leaders.
• The trait approach to understanding leadership
assumes that certain physical, social, personal and
task –oriented characteristics are inherent in
leaders.
• Physical traits include being young to middle-aged,
energetic, tall, and handsome.
• Social background traits include being educated at
the "right" schools and being socially prominent or
upwardly mobile.
12
13. • Social characteristics include being charismatic,
charming/polite, tactful, popular, cooperative, and
diplomatic.
• Personality traits include being self-confident,
adaptable, assertive, and emotionally stable.
• Task-related characteristics include being driven to
excel, accepting of responsibility, having initiative,
and being results-oriented.
• Stogdill (1974) identified the following traits and
skills as critical to leaders.
13
14. Trait skill
Adaptable to situations
Alert to social environment
Achievement orientated
Assertive
Cooperative
Decisive
Dependable /loyal/responsive
Dominant (desire to influence
others)
Energetic (high activity level)
Persistent
Self-confident
Clever (intelligent)
Conceptually skilled
Creative
Diplomatic and tactful
Fluent in speaking
Knowledgeable about
group task
Organized (administrative
ability)
Persuasive
Socially skilled
14
15. • McCall and Lombardo (1983) researched both
success and failure identified four primary traits:
Emotional stability and composure: Calm,
confident and predictable, particularly when under
stress.
Admitting error: Owning up to mistakes, rather than
putting energy into covering up.
Good interpersonal skills: Able to communicate
and persuade others without resort to negative or
coercive tactics.
Intellectual breadth: Able to understand a wide
range of areas, rather than having a narrow (and
narrow-minded) area of expertise.
15
16. Limitations / Short coming of Trait theory
• All the leaders may not possess all the traits & many
of non-leaders may possess most or all of them.
• The trait approach gives no guidance as to how much
of trait a person should have.
• It ignores situational factors.
3. Behavioral leadership theory: Mid 1940s to 1970s
• McGregor was a teacher, researcher, & consultant
and he influenced all the behavioral theories, which
emphasize focusing on human relationships, along
with output and performance.
16
17. • Behavioral leadership theory is a big leap/jump from
trait theory.
• It assumes that leadership capability can be learned,
rather than being inherent.
• Training people to perform effective leadership
behaviors, not focus on personality traits.
4. Contingency (situational) theory: 1960s to present
• They also propose that leaders choose the best course
of action based upon situational variable.
• Leaders are products of a given situation; what is
effective in one situation may not be effective in
other situation.
17
18. • Effective leadership is really a function of the
interaction of several variables, including:
Superior - subordinate relationships
The power distribution between superior and
subordinate
The degree to which the job is structured
Subordinates and superiors characteristics
Organizational culture and policies
Situational theory attempts to discover that no
one unique set of leadership traits were largely
successful
18
19. A. Fiedler's Contingency Model
Theory postulates that there is no single best way
for managers to lead.
Situations will create different leadership style.
For example, in a highly routine (mechanistic)
environment relatively directive leadership style
may result best performance, however, in a
dynamic environment a more flexible, participative
style may be required.
• He identified 3 situational that influence the leader’s
effectiveness.
1. Leader - member relations: refers to the degree of
confidence, trust & respect the followers have in
their leader.
19
20. 2. Task structure: If tasks are clear/ structure the quality
of performance easily controllable & employees are
responsible for their performance.
3. Position power: the degree of leaders power to living,
promoting, sacking, salary increase etc.
It refers to the power inherent in the leadership position
to reward or punish.
• These 3 factors together determine how favorable the
situation is for the leader.
• Good member - leader relations, high task structure &
strong position power indicates the most favorable
situation.
20
21. B. Path-goal theory
Effective leaders increase motivation and satisfaction
and help subordinates to see the goal.
Role of the leader is:
To clarify the path to help followers get to their goals
To make the journey easily by reducing roadblocks
and pitfalls.
Leader’s behavior is acceptable to subordinates, they
view the leader as an immediate source for future
satisfaction.
21
22. Leader’s behavior is motivational if it:
Makes the subordinate’s satisfaction contingent on
performance.
Provides the coaching guidance, support, and rewards
necessary for effective performance.
• In contrast to Fielder’s contingency model, path-goal theory
assumes that managers can alter their leadership style as needed.
Qualities of leadership
The important qualities of leadership are:
Physical appearance and strength: A leader has to put hard
work physically. He should have a capacity to work for long
hours than others.
Mental vigor: a leader has to be strong mentally.
Emotional stability: a leader should not be moved by emotion
or sentiment.
22
23. Sense of judgment: a leader should know human psychology.
Goodwill: she/he must win the goodwill of his followers.
Motivation: a leader should know the motivation techniques and
how to use them.
Communication skill: a leader should communicate information
to the workers, and also be effective speaker & writer.
Guiding ability: a leader should act as a teacher
Sociability: The leader should meet workers frequently.
Technical knowledge: a leader should posses a thorough
knowledge of theory and practice of his job.
Be honest, sincere and fair: a leader should also be honest,
sincere and fair to be accepted by all.
23
24. The difference between leaders and managers
• Leaders essence is change
• Leaders are lead people
• leaders have followers
• Leader seeks vision
• Leader facilitate for decisions
• Leader is reactive
• Leader take risk
• Leader uses conflict
• Leader shows new road
• Leader gives credit
• Leader doing right thing
Managers essence is stability
Managers are managing work
Managers have subordinate
Manager seeks objectives
Manager make decisions
Managers are proactive
Manager minimize risk
Manager avoids conflict
Manager shows existing road
Manager takes credit
Manager doing things right
Managers strive to copy/imitate
24
25. Motivation
• The term motivation is derived from the Latin word
“Mover”, meaning “to move.”
Definitions of Motivation
The following are some of the important definitions
of motivation given by Eminent/well-known
management thinkers:
• Motivation is defined as “inner burning passion
caused by need, wants and desire.
• Performance can be expressed as under;
Performance= Ability × Motivation
• Scot defined motivation as “a process of stimulating
people to action or accomplish desired goals”.
25
26. • Something that moves the person to action and continues
him in the course of action already initiated– Robert
Dubin.
• Motivation is the process of attempting to influence
others to do your will through the possibility of gain or
reward. – Edwin B. Flippo.
• The Encyclopedia of Management: Motivation refers to
degree of readiness.
• Memoria: “A willingness to expand energy to achieve a
goal or reward.
26
27. Characteristics of motivation
Motivation is a psychological phenomenon. It is the
internal desire of an individual to accomplish something
more.
Motivation is a continuous process. Since need is a
continuous phenomenon if one need is satisfied the other
need emerges.
There are unsatisfied needs. A person remains
disturbed till they are satisfied. This disturbance or
tension causes disequilibria in human behavior. The
more the motivation level, the higher effort will give
27
28. Importance of motivation
1. High level of performance
2. Low employee turnover and absenteeism
3. Acceptance of organization change
4. Organizational image
Types of motivation
On the basis of approach motivation can
Positive Motivation
• Positive motivation is creation of an environment &
necessary facilities for workers to satisfy their needs and
aspirations.
• rewards and incentives are offered to inspire employees.
• Positive motivation removes the psychological barrier
and develops a sense of affiliation.
28
29. Negative Motivation
• Negative motivation involves creating a sense of fear
or unhelpful environment.
• Workers who do not perform well are penalized like
Demotion, layoffs etc.
• Negative motivation creates detachment between
the individuals and the organization
• Negative motivation is based on pessimistic view
which holds that only fear of punishment will force
employees to improve their performance.
On the basis of the type of incentives
Financial Motivation
• Financial motivation implies use of monetary
benefits to inspire employees. wages and salaries,
bonus, fringe benefits, retirement benefits, etc.,
29
30. Non-financial Motivation
• Non-financial motivators are not associated with monetary rewards. These
include recognition of work done, greater involvement in decision-making,
responsibility, challenging job, Praise etc.
On the basis of the nature of reward
Extrinsic Motivation
• Extrinsic motivators do not occur on the job but around the job.
• Extrinsic reward may be direct which are linked with performance and
indirect compensation like free housing, conveyance /transport, medical
facilities, etc. generally direct compensation is more effective motivator.
Intrinsic Motivation
• Intrinsic motivation occurs on the job and provides satisfaction while the job
is being performed.
• Intrinsic or internal motivators include status, authority, participation,
challenging task etc.
30
31. Theories of motivation
Many experts have developed different theories on the concept
of motivation. Popular ones are given below:
1. Maslow’s theory of need hierarchy
2. ERG theory
3. Two factor theory
4. Theory ''X'' and theory ''Y''
Maslow’s theory of need hierarchy
Maslow suggested that every individual has complex set of
needs at any particular moment and his behavior is
determined by the existence of strongest need.
Needs are hierarchical in nature and only one need
dominates at any one point of time.
Once the strongest need is satisfied then the second need
emerges.
31
32. • Maslow further started that there is only one need satisfying
process is underway at any one time.
• They do not disappear once they are satisfied but their
intensity is reduced (relegated) below the subsequent need.
• He stated that human beings have five types of needs. Such as:
Self-actualization
Self-esteem
Social need
Security need
Physiological need
32
33. 1. Physiological Needs
It is strongest need as compared to the other needs; like hunger;
thirst, shelter, clothing and sex.
These needs keep dominating unless they are reasonably
satisfied. Human being is therefore motivated to work in that
direction.
2. Safety Needs or Security Needs - Once the physiological need
of an individual is satisfied, the safety need /security need arises
and is dominant at that point of time. This need is related to:
Workers want to be free from physical danger and job must
secured.
There should be certainty in the job and non existence of arbitrary
action.
Administration policy must cover various safeties like pay,
pension, insurance, and gratuity/extra pay.
Given adequate security against being fired, laid off or demotion.
33
34. 3. Social Needs
Once the safety need is satisfied, third need i.e. social
need arises.
People want to belong to some social group where their
emotional need of love, affection, warmth and friendship
are satisfied.
Being member of sports club, social organizations or
being the company of friends and relatives, needs can
satisfy social.
4. Esteem Need or Ego Need
Individual wants self-recognition, appreciation for the
work done.
It is related to self-respect, self-confidence, praise, power
and control. These needs are satisfied it gives an
individual a sense self-worth and ego satisfaction.
34
35. 5. Self-actualization Need
• People set high goals, achieve them and set a higher
goals again and to achieve the same by utilizing
fullest potential.
• An individual seeking to satisfy self-actualization
need is challenging in nature.
• Mahatma Gandhi wanted to achieve freedom for
India by unique weapons of peace and non-violence.
• He strived hard, faced various challenges but
ultimately achieved his goal with his innovative
freedom.
35
36. • In essence Maslow’s Motivational Theory covers:
There are five levels of human needs.
These needs are hierarchical in nature.
A satisfied need is no longer a need. Once that need is
satisfied, the next level need becomes stronger.
Needs do not diminish. It is the gravity that changes.
Critics of Maslow’s Hierarchy of Needs Theory
• Maslow has laid down that individual has a particular pattern
and hierarchy of needs which may not be true.
• There are craftsmen, poets, sculptures, painters who have
devoted their entire life towards fulfillment of self-
actualization need without having satisfied other needs.
• To some people esteem need may be more important than
social need.
36
37. • A person feeling thirsty may not always drink water but he
may switch over to cold drinks soda or even a glass of beer to
squint thirst.
• worker who is a sole income earner for the whole family may
feel job security as his most dominant need.
• For instance, social needs tend to dominate in more collectivist
societies, such as Mexico and Pakistan.
• Level of need satisfaction generally differs from person to
person hence the theory cannot be universally applied.
Herzberg’s two factor theory
• Herzberg study conclude that there are two types of needs,
independent of each other. These are:
1. Motivational factor
2. Hygiene/maintenance factor
37
38. 1. Motivational factor
• Primarily it builds strong motivation and job satisfaction.
• They are intrinsic in nature and help increase one’s output.
• These factors have positive effect on morale, productivity, and
job satisfaction and overall efficiency of the organization.
• It links with the content of the job
• Example - achievement, advancement, possibility of growth,
recognition, and work itself
2. Hygiene factor
• These operate primarily to dissatisfy employees when these
conditions are absent.
• But the present of factors not strongly motivate
• These factors are called dissatisfiers/dismotivator
• It links with the context of the job
38
39. These factors are:
• Company Policy and administration.
• Technical supervision.
• Interpersonal relationship with superiors, subordinate and peers
• Salary, job security, working condition and status.
3. McGregor’s theory X and theory Y
Theory X Theory Y
Work is inherently
unpleasant to most people
Work is as natural as play.
Most people are not
ambitious, have little
desire for responsibility
and prefer to be directed
People display extreme
degree of self control
which is necessary for
achieving goals.
39
40. Most people have little capacity
for creativity in solving
organizational problems
The capacity of creativity in
solving organizational problems
high
Motivation occurs only at the
physiological and security need
levels
Motivation occurs at social,
esteem and Self-actualization
need levels.
Most people must be closely
controlled and often force to
achieve organizational
objectives.
People can be self-directed and
creative at work.
Because most people dislike
work, they have to be closely
supervised and punish
People do not need to be
threatened with punishment, they
will work voluntarily
40
41. ERG theory of motivation
• Clayton Alderfer carried out further studies on Maslow’s theory
of need hierarchy.
• He identified three basic needs of human being against five
needs of Maslow.
• These are as under:
1. E-Existence need - There are related to basic material
requirement of human being and are related to Maslow’s
Physiological and safety needs.
2. R-Relatedness - This need is related to desire of an individual
to maintain sound interpersonal relationship. It is related to
Maslow’s, Social needs and external component of esteem
needs i.e., status, recognition and attention.
3. G-Growth - Growth is an intrinsic desire for personal
development. It is related to intrinsic component of esteem
need like advancement, self respect, autonomy, achievement
and self-actualization need.
41
42. • ERG Theory contains a frustration — regression
dimensions (when there is a frustration in higher level
need, lower level needs may get more activated).
• Alderfer recommends satisfaction - progression
pattern of need i.e. when one level need is satisfied
then higher level need arises (satisfaction-
progression).
Expectancy theory-Vroom
• Vroom has propagated Expectancy Theory based on
employee expectancy.
• He believes that employee is motivated to exert high
level of efforts that efforts will lead to good
performance and therefore organizational rewards
that will satisfy achievement of personal goals.
42
43. • The focus of the theory has three elements.
▫ Efforts - Performance relationship. It is related to
the probability perceived by individual that
exerting a given amount of efforts will lead to
performance (Expectancy).
▫ Performance - Reward Relationship. The degree
to which the individual believes that performing a
particular level will lead to attainment of desired
outcome (Instrumentality).
▫ Reward-personal goal relationship. The degree to
which an organizational reward will satisfy
individual needs and its attractiveness for the
individual (Valence).
43
44. Principles of directing
▫ Harmony of objectives: The management should coordinate
the individual objectives with the organizational objectives.
▫ Unity of direction or command: An employee should receive
orders and instructions only from one superior.
▫ Direct supervision: Managers should have direct relationship
with their subordinates. Face to face communication and
personal touch with the subordinates will ensure successful
direction.
▫ Effective communication: The superior must ensure that
plans, policies, responsibilities and orders are fully understood
by the subordinates in the right direction.
▫ Follow through: Direction is a continuous process. Mere
issuing orders or instructions are not an end itself.
44