Business leading


Published on

Published in: Business, Education
  • Be the first to comment

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide
  • PCM
  • ESOP, profit,balancedscore area.
  • Business leading

    2. 2. SYLLABUS Leading as a function of management, leading concept: meaning & definition Leadership and vision, leadership traits, classic vikas vadakara leadership styles Leaders behaviour- Likert’s four systems, Managerial Grid Overlapping role of leader and managers Organization context of communication, Directions of communication, channels of communication, barriers of communication Motivation and rewards, Rewards and performance Hierarchy of need theory and two factory theory. Integrated model of motivation
    3. 3. LEADERSHIP MEANING : One of the managerial functions. Leadership is both process and property vikas vadakara As a process: it focuses on what leaders actually do? It is use of influencing power to shape group or organizational goals Motivating others behaviour toward the achievement of those goals Helping in defining group or organizational culture
    4. 4.  As a property: it is the set of characteristics attributed to individuals who are perceived to be leaders So, leader is someone who can influence others and who has managerial authority. vikas vadakara Leadership is what leaders do, the process of influencing group to achieve goals
    5. 5. DEFINITION George Terry, “ leadership is the activity of influencing people to strive willingly for mutual objectives” vikas vadakara Peter Drucker, “leadership is the lifting of man’s vision to higher sights, the raising of man’s performance to higher standards, the building of man’s personality beyond its normal limitations”
    6. 6. LEADERSHIP AND VISION Leaders must have vision. They share a dream and direction that other people want to share and follow. Leadership vision goes beyond your written vikas vadakara organizational mission statement and your vision statement For leaders vision is not just a dream, it is a reality that has yet to come into existence. It gives a leader purpose, his devotion to inspire others.
    7. 7. LEADERS VS MANAGERS Are all managers are leaders? Yes, as leading is one of the 4 managerial functions manager should be leader. vikas vadakara Leaders Managers Innovate Administer Develop Maintain Inspire Control Long term view Short term view Ask what and why Ask how and when Originate Initiate Do the right things Do the things right Have followers Have subordinates
    8. 8. vikas vadakara
    9. 9. LEADERSHIP TRAIT Trait – personal qualities and characteristics There are certain personal qualities and vikas vadakara characteristics which are essential to be a successful leader Based on these traits or qualities, some philosophers say, leaders are born and not made This approach regarded as one of the earliest approaches to leadership and termed as Trait Approach or Trait Theory Trait approach involves analyzing personal, physiological and physical traits of strong leaders
    10. 10.  Traits might include: Intelligence Assertiveness Above average height vikas vadakara Good vocabulary Attractiveness Self confidence Integrity- do what you say, don’t compromise for temptations like money, greediness etc Creativity to solve problems Initiative
    11. 11. CRITICISM FOR TRAIT APPROACH Leaders are both born and made vikas vadakara Leadership qualities can be developed Can’t recognize that one successful leader has got these many traits Based on the situation or conditions traits may vary, or leaders may tend to show varied traits
    12. 12. CLASSIC LEADERSHIP STYLES Behavioural pattern which a leader shows while influencing followers is termed as leadership style vikas vadakara Based on the degree of use of power, 3 styles can be identified; Autocratic/ Authoritarian/ Directive Style Participative/Democratic/Consultative Style Laissez Faire/Free Rein Style
    13. 13. AUTOCRATIC/ AUTHORITARIAN/ DIRECTIVESTYLE Decision making power is centralized and rests with leader Leader exercises close supervision over followers vikas vadakara and uses rewards and punishment to influence followers behaviour Merits DemeritsEnables quick decision No participation frommaking followersStrict discipline Creates conflicts, stressMotivation through among followersrewards and punishment Low morale Less satisfaction from followers side
    14. 14. PARTICIPATIVE/DEMOCRATIC/CONSULTATIVESTYLE Leader allows followers participation while taking decision vikas vadakara This style considers common interest of both leader and followers Increases followers morale
    15. 15. LAISSEZ FAIRE/FREE REIN STYLE Leader does not lead and avoids power Complete freedom is given to followers vikas vadakara Decision making power rests with followers Leaders may give advice if followers need any help No control over followersDemerits: Lack of control and discipline Fails if followers are not matured May lead to confusion, chaos
    16. 16. LEADERS BEHAVIOUR After the trait approach, thinkers to overcome limitations of the trait approach, started focusing on vikas vadakara understanding leaders behaviour. Instead of studying what leaders have, what are their qualities. Thinkers focused on how they behave and behaviour patterns in situations.Under this approach we have to study: Likert’s Four Systems and Managerial Grid
    17. 17. LIKERT’S FOUR SYSTEMS Likert and his associates of the University of Michigan, USA, have conducted studies on vikas vadakara Leadership styles and patterns in number of organizations Likert developed 4 systems/models known as Systems of Management These systems have been developed based on the 6 elements which are related to management process;
    18. 18. Characteristics System 1 System 2 System 3 System 4 Exploitative Benevolent Consultative Democratic Authoritative Style Authoritative Style Authoritative Style Participative styleTrust in Substantial, Complete trust onsubordinates None To some extent justifiable subordinates Rewards, Group vikas vadakara Rewards and punishment and participation andMotivation Fear and threat punishment involvement involvement Fairly widespread Widespread and Very limited and ans sometimes both downwardCommunication downward Limited upward and upwardPersonalInteraction/knowing people Very limited Limited Moderate IntensiveDecision Some participation Fully participativemaking Centralized Mostly centralized is allowed method Moderate ExtensiveType of control Centralized Mostly centralized delegation delegation
    19. 19. EXPLOITATIVE AUTHORITATIVE STYLE Management uses fear and threats; communication is top down with most decisions taken at the top; vikas vadakara superiors and subordinates are distant.BENEVOLENT AUTHORITATIVE STYLE Management uses rewards; information flowing upward is restricted to what management wants to hear and whilst policy decisions come from the top some prescribed decisions may be delegated to lower levels, superiors expect subservience lower down.
    20. 20. CONSULTATIVE AUTHORITATIVE STYLE Management offers rewards, occasional punishments; big decisions come from the top whilst there is some wider decision making involvement in details and communication is downward whilst critical upward vikas vadakara communication is cautious.DEMOCRATIC PARTICIPATIVE STYLE Management encourage group participation and involvement in setting high performance goals with some economic rewards; communication flows in all directions and is open and frank with decision making through group processes with each group linked to others by persons who are members of more than one group called linking pins; and subordinates and superiors are close. The result is high productivity and better industrial relations
    21. 21. CONCLUSION System 1 is very poor System 4 is the ideal style, and an vikas vadakara organization can adopt it.
    22. 22. MANAGERIAL GRID Developed by Robert Blake and Jane Mouton, psychologists at the University of Texas Used a chart called Managerial Grid to describe leaders style. vikas vadakara They identified 5 styles and used the terms concern for people and concern for production These 2 dimensions are plotted on a 9 point scale on 2 separate axis. Concern for people is shown on vertical axis, concern for production is shown on horizontal axis. Managerial Grid: A grid of two leadership behaviours – concern for people and concern for production – which resulted in 5 different leadership styles.
    23. 23. vikas vadakara
    24. 24. LEADERSHIP STYLES IN MANAGERIAL GRID1. Task Management or Authority Compliance [9,1]: Management shows maximum concern for production vikas vadakara and least concern for people2. Country Club Management [1,9] Reverse of task management, where management shows more concern for people and least concern for production3. Impoverished Management [1,1] Management shows least concern for both production and people. Leader thinks that minimum effort is sufficient to get the work done and won’t focuses on followers and results.
    25. 25. CONTD…4. Team Management [9,9] Shows concern for both people and production. Focuses on synergy concept 1+1 = 3. Through vikas vadakara committed people work accomplishment. Focus on people task related morale.5. Middle of the Road Style [5,5] Management shows a balanced concern for people and production. Neither too much production is expected, nor too much concern for people is expressed.
    26. 26. CONCLUSION According to Blake and Mouton, Team Management [9,9] is the ideal one. Because here vikas vadakara results are achieved through focusing on people. High concern for both will be seen. This can be achieved based on active participation But there is no one best leadership style under all conditions. So leaders have to select the style based on the situations and followers.
    27. 27. OVERLAPPING ROLES OF LEADERSHIP& MANAGEMENT Leadership is an important element in an organization as it plays a role of creating and shaping organizational culture and setting a vikas vadakara direction for the progress of the organization. Without this management has no role or cause for existence Management on the other hand, through systematic arrangements and processes, gives way for effective leadership development at every level in the organization When an executive is doing planning, organizing, controlling he is managing, when he is guiding, motivating and influencing others behaviour, he is leading
    28. 28. CONTD.. Leadership is a function of looking, thinking and bringing change in the organization. vikas vadakara Management is a function of ensuring order and consistency in the organization Leadership and management are inseparable aspects of an organization. The effectiveness of one is dependent on the effective performance of the other.
    29. 29. COMMUNICATION The word communication has been derived from the Latin word “communist” means COMMON. vikas vadakara Communication means exchange of ideas, facts, opinion, information and understanding between two or more persons Communication need not be in written or spoken words It may happen through symbols, actions, gestures etc So it is the process of transmitting information from one person to another
    30. 30. DEFINITIONAllen, “ Communication is sum of all the things one person does when he wants to vikas vadakara create understanding in the mind of another. It is a bridge of minds. It involves a systematic and continuous process of telling, listening and understanding”George Terry, “ Communication is an exchange of facts, ideas, opinions or emotions, by two or more persons”.
    31. 31. COMMUNICATION PROCESS vikas vadakaraSender Encode Medium Decode Feedback Receiver
    32. 32. DIRECTIONS OF COMMUNICATION INORGANIZATION Upward communication Vertical communication Downward communication vikas vadakara Lateral or horizontal communication Diagonal or crosswise communication Inward communication Outward communication
    33. 33. VERTICAL COMMUNICATION Marketing vikas vadakara ManagerDownward UpwardCommunication Communication Marketing Supervisor
    34. 34. LATERAL OR HORIZONTAL COMMUNICATION vikas vadakara Marketing Production Manager Manager
    35. 35. CROSSWISE OR DIAGONAL COMMUNICATION Marketing Manager Training Manager vikas vadakara Marketing Training Supervisor SupervisorCommunication between persons at different levelswho have no direct reporting relationshipsCommunication between marketing manager andtraining supervisor regarding training few employees ofmarketing department
    36. 36. INWARD AND OUTWARD COMMUNICATION All information received by the organization from external agencies – Inward Communication All information send by organization to external vikas vadakara organizations- Outward Communication External Agencies are; Other organizations Government Suppliers Customers Competitors Shareholders Media
    37. 37. Contd.. Communication Communication vikas vadakaraExternal External OrganizationAgencies Agencies
    38. 38. INWARD OUTWARDCOMMUNICATION MAY BE COMMUNICATION MAY BEIN THE FORM OF IN THE FORM OF Letters  Letters to other Emails companies vikas vadakara Offers  Emails Orders  Offers to customers Requests  Ads Suggestions  Media interaction Complaints  Negotiations Notices  Tenders Feedbacks etc  Telephones etc
    39. 39. CHANNELS OF COMMUNICATION Channel or medium is the point through which the communication passes Channels can be Formal or informal. vikas vadakaraInformal Channel Communication flows informally. This type of channel exists in informal organization structure Example: communication flows between marketing supervisor, accountant and training manager.
    40. 40. FORMAL CHANNEL Communication flows orderly, in a timely and accurate manner. Communication passes through officially recognized positions vikas vadakara MD Top Mgt Middle level Mgt Front line Mgt Employees
    41. 41. BARRIERS TO COMMUNICATION Individual barriers Conflicting signals: difference in what one vikas vadakara says and what he does Lack of reliable information sources Lack of interest to communicate Poor listening skillsOvercoming Individual Barriers Develop good listening skill Encourage two way communication
    42. 42.  Organizational Barriers Semantics : Misinterpretation of words, same word having different meaning Noise vikas vadakara Language differencesOvercoming Organizational Barriers Have proper follow up Reduce factors which causes noise Regulate information flow Be aware of language and meaning
    43. 43. MOTIVATION, REWARDS, PERFORMANCEMOTIVATION: Every organization must Attract competent people and retain them with it vikas vadakara Allow people to perform task for which they are hired Stimulate people to go beyond themselves in their workThus if an organization wants to be effective, it has to address the challenges involved in influencing people behaviour or their desires.
    44. 44.  Basic principle is that: performance of an individual depends on his or her ability backed by motivation So Performance = f [ ability x motivation] Ability : refers to skill and competence of the person vikas vadakara to complete the task Motivation : is the persons desire to complete the task Organization becomes successful when a person has both ability or skill and desire to complete the task
    45. 45. DEFINITION vikas vadakaraGriffin, “motivation in simple terms refers to the set of forces that causes people to behave in certain ways”
    46. 46. IMPORTANCE OF EMPLOYEE MOTIVATION A challenging element in an organization: Individual performance is generally determined by 3 vikas vadakara things; Work environment [resources needed to do the job], Ability [capability/ skills to do the job] and motivation [desire to do the job]. If an employee faces resources problem, manager can provide it, if he lacks ability, manager can train him, but if motivation is the problem, manager’s task will become more challenging. That’s what we say, motivation is a challenging task in an organization.
    47. 47. IMPORTANCE OF EMPLOYEE MOTIVATIONCONTD…. Effective use of resources: effective and efficient use of resources depends upon ability and desire of vikas vadakara employees. Highly motivated people make optimum utilization of resources Achievement of organizational goals Reduction in employee turnover and absenteeism Healthy relationship among managers and subordinates
    48. 48. REWARD Expectation for the work People join organization expecting better rewards vikas vadakara Providing rewards is considered as one of the motivational strategies Rewards can be in monitory or non monitory terms Monitory rewards: salary, incentives, commission, bonus given in cash Non monitory rewards : gifts, facilities, coupons etc
    49. 49. REWARD SYSTEMS TO MOTIVATE PERFORMANCEOR PERFORMANCE BASED REWARD SYSTEM Rewards are determined on the basis of performance. Performance can be vikas vadakara Individual performance Group performance Organizational performance
    50. 50. INDIVIDUAL REWARDS Individual performance is considered while providing rewards. vikas vadakaraRewards can be Piece rate: pay to units produced Commission : sales people for actual sales done Merit pay: individual performance or skills are considered
    51. 51. GROUP REWARDS Rewards based on group or team performance vikas vadakara Gain sharing: gain achieved by reducing the cost or producing more will be shared among group members Bonus: profit will be given as bonus
    52. 52. ORGANIZATIONAL REWARDS Whole organization’s performance will be considered vikas vadakara Employee Stock Ownership Plans: ESOP – employees will get company shares & dividends Profit sharing: profit earned will be distributed to all employees Balanced Score Card: employees are given bonus for improved performance in four key areas: Financial performance, customer satisfaction, internal process improvement, learning and innovation.
    53. 53. MOTIVATIONAL THEORIESMASLOWS NEED HIERARCHY THEORY Abraham Maslow, a human relationist developed this theory vikas vadakara Maslow argued that people are motivated to satisfy 5 need levels These 5 need levels constitute a hierarchy An individual is motivated first to satisfy his/ her basic needs Once he is satisfied with basic needs, he will move to next need level This process continues till he reaches the self actualization level
    54. 54. MASLOW’S NEED HIERARCHY vikas vadakara
    55. 55. MERITS DEMERITS  People from different countries or background Theory presents have different hierarchy of motivation as a needs vikas vadakara constantly changing  Hierarchy of needs does force not exist in the same order. Example: person satisfying Simple to understand his esteem needs can not forget to satisfy his basic need i.e., food  This is not a theory of work motivation. Maslow himself is not intended to relate these needs to work place
    56. 56. HERZBERG’S TWO FACTOR THEORY / TWOFACTORY THEORY OF MOTIVATION Herzberg developed the two factor theory by interviewing 200 accountants and engineers He asked them about two occasions: vikas vadakara When they felt extremely good or when they had been satisfied or motivated about their job When they felt extremely bad or when they had been dissatisfied or demotivated about their job Surprisingly he found that, the absence of certain job factors tend to make workers dissatisfaction. But the presence of these factors does not produce high level of motivation. They merely help to avoid dissatisfaction
    57. 57. CONTD… Example: a person might identify “ low pay” as a dissatisfaction factor. But he would not necessarily mention “high pay” as a cause of satisfaction. vikas vadakara Instead factors like recognition, rewards etc were cited as motivational or satisfaction factors Herzberg called the factors influencing the satisfaction level of employees as Motivation factors Factors which cause dissatisfaction as Hygiene or Maintenance Factors.
    58. 58. CONTD… The two factor theory suggests that peoples’ satisfaction and dissatisfaction are influenced by two independent sets of factors – motivation factors and hygiene/ maintenance factors vikas vadakara
    59. 59. INTEGRATED MODEL OF MOTIVATION This theory integrates various motivational theories to have a better model of motivation vikas vadakara In this theory inputs are taken from Maslow’s need hierarchy theory Reinforcement theory Equity theory Expectancy theory
    60. 60. INTEGRATED MODEL Individual Ability Perceived equity & value of rewards vikas vadakaraMotivation Goal Satisfaction Oriented Work Rewards with RewardsWork Effort PerformancePersistence DominantOrganization Reinforcement needs Support
    61. 61. vikas vadakara