Course Content
OVERVIEW OF MANAGEMENT
Definition and importance of management Functions of management Managerial roles Evolution of management thought Types of management environment
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PLANNING FUNCTION
Meaning and importance of planning Principles of planning Purpose of planning Types of plans Planning tools Process of planning Planning challenges Making plans effective Management by objectives
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ORGANIZING FUNCTION
Meaning and Importance of Organizing Structure and Designs of Organizations Principles of Organizing Process of Organizing Delegation Coordination Centralization and Decentralization Informal Organizations
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STAFFING FUNCTION
Meaning and Importance of Staffing Human Resource Planning Recruitment and Selection Training and Development Performance Management Reward Management Separation
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DIRECTING FUNCTION
Meaning and Importance of Directing Leadership Motivation Communication Group Dynamics Conflict Management
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CONTROLLING FUNCTION
Meaning and Importance of Controlling Elements of Control Characteristics of Effective Controls Control Process Role of Control in an Organization Tools of Controlling
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STRATEGIC MANAGEMENT
Overview of Strategic Management SWOT Analysis Strategy Formulation Strategy Implementation Strategy Evaluation
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EMERGING ISSUES AND TRENDS
Organization Culture Ethics and Social Responsibility Managing Innovation and Change Diversity and Inclusion Corporate Governance Globalization
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Principles and Practices of Management
About Lesson

Leadership is the process by which an executive influences the work and behavior of subordinates in choosing and attaining specified objectives. A person is said to influence others when they are willing to carry out his wishes and accept his advice or guidance. 

Nature of leadership
  1. Leadership is a process of influence exercised by the leader on group members. It involves the exercise of inter-personal influence. A successful leader can influence the attitude and behavior of followers.
  2. Leadership is a continuous process by which an executive guide, influences, and directs the behavior of his subordinates.
  3. Leadership is also a quality of behavior, and the people who possess this quality are known as leaders.
  4. Leadership is related to a particular situation at a given point in time and under a specific set of circumstances. This implies that a leader may adopt different styles or behavior to influence the subordinates under other conditions.
  5. Leadership involves the reconciliation of organizational goals with individual goals. A leader is considered successful when he is able to create a goal congruence in such a manner that the group members enthusiastically work for the achievement of common objectives.
  6. Leadership is a function of the interaction between the leader, the followers, and the situation. A person can be a successful leader when he is accepted by his subordinates. 
Differences between management and leadership

Very often, leadership and management are considered synonymous. This is incorrect. 

The three main points of difference between management and leadership are as follows: –

  1.  Leadership can exist in both organized and unorganized groups, but management cannot operate without a formal organizational structure. 
  2.  A manager directs people through the use of formal authority, while a leader directs people through the use of influence
  3.  The scope of management is wider than that of leadership. 

Need and importance of leadership

The significance of leadership is reflected in the following functions:

  1. Motivating employees: A dynamic leader breathes life into the group and makes people eager to work towards the achievement of group goals. He gives character to the group and sets the tone of the organization.
  2.  Morale building: Good leadership is indispensable to high employee morale. The leader lifts a man’s vision to higher sights, raises his performance, and builds up his personality. 
  3.  Creating confidence: An effective leader creates and sustains self-confidence and enthusiasm among his followers. He provides advice and guidance by which subordinates can recognize their qualities and capacity. 
  4.  Coordination: Leadership helps to unify individual efforts. Leadership is the cohesive force that holds the group intact, the force that transforms chaos into order, and the disciplinary power that keeps the group working towards the goal.
  5.  Facilitates change: Leadership is the mechanism to convince people about the need for change. Dynamic leadership is the cornerstone of organizational change and development. ‘In a word of change and uncertainty, the business leader becomes a vital element in the very process of change itself.’
  6.  Goal setting: A leader provides guidance to the group by setting and interpreting the objectives. He outlines the operations of the organization. He molds the internal relationships within the group.
  7.  Representation: A leader is the representative of his followers. He serves as the personal embodiment of the group and as the true guardian of its interests. He defends the integrity of the group.
Leadership styles 
  1. Autocratic or Authoritarian style 
  2. Democratic or Participative style 
  3. Laissez faire or Free reign style
  4. Bureaucratic style
  5. Affiliative style

1. Autocratic or Authoritarian Leadership style: An autocratic leader is one who takes all the decisions himself without consulting his subordinates. He demands complete loyalty and unquestioned obedience from his followers.  

Characteristics of an autocratic leader:

  1. Does not consult followers. “
  2. It Does not help followers.
  3. Does not socialize with followers.
  4. Does not solve problems of followers.
  5. Does not counsel the followers.

Reactions of followers to autocratic style:

  1. Followers have poor work output.
  2. Followers perform their work poorly.
  3. Followers’ health deteriorates because of poor relations ‘between the leader and followers.
  4. The rate of the followers’ tardiness increases.
  5. The rate of followers’ absenteeism increases.

Advantages of autocratic leadership style

  1. It allows faster decision making
  2. No wastage of resources
  3. Suitable for complex duties
  4. Involvement of managers in decision making

Disadvantages of autocratic leadership style

  1. Strict supervision
  2. Discourage creativity and innovation
  3. Dissatisfaction may cause conflict
  4. Poor communication between managers and employees.

2. Democratic or Participative Leadership style: A democratic leader permits his subordinates to participate in the process of decision-making. He leads by the consent of the group rather than by the use of authority.  

Characteristics of a democratic leader 

  1. Consults followers. 
  2. Helps followers.
  3. Socializes with followers. 
  4. Counsels followers. 
  5. Punishes after investigation. 
  6. Readily solves problems of the followers 

Reactions of the followers to democratic styles

  1. Maximize production. 
  2. Improve the quality of work. 
  3. Health of the followers improves. 
  4. The rate of tardiness decreases. 
  5. The percentage of absenteeism decreases. 
  6. The rate of labor turnover decreases. _ 
  7. The relationship between the leader and followers improves. 
  8. The relationship among followers improves. 

Advantages of democratic leadership style

  1. Motivates employees
  2. Harmonious existence
  3. Encourages creativity in the organization
  4. Increased productivity
  5. Employee satisfaction
  6. Facilitates communication in the organization

Disadvantages of democratic leadership style

  1. Decision making is slow
  2. Expensive
  3. It is employee-oriented
  4. It may not fulfill organizational objectives
  5. It is not suitable for complex duties.

3. Laissez-faire or Free-rein Leadership style: Under this type of leadership, the leader leaves it to the subordinates to decide and control them, believing that they are competent and motivated. He does not lead and avoids using his power. He leaves the group entirely to itself

Characteristics of a Laissez-faire style leader:

  1. Does not give work to followers
  2. Does not consult the follower
  3. The leader does not help the followers
  4. The leader leaves the followers by themselves.
  5. The leader does not advise the followers.

Reactions of the followers to Laissez-faire style

  1. Followers get stressed
  2. The health of followers deteriorates.
  3. The rate of absenteeism of the followers’ increases.
  4. The relationship between followers and the leader worsens due to the leader’s failure to give work to followers.
  5. The rate of the labor turnover of the followers’ increases.

Advantages of laissez faire style

  1. Freedom to work
  2. Goals are achieved
  3. Managers can focus on important issues
  4. Creativity advancement
  5. Employee satisfaction
  6. Harmonious existence

Disadvantages of Laissez faire style

  1. Not suitable for complex duties
  2. Misuse of organizational resources
  3. Non-commitment by some employees due to freedom of work
  4. Wrong decisions making by workers
  5. Managers can become lazy.

5. Bureaucratic leadership style: Bureaucratic leadership refers to leadership through highly formalized processes, procedures, and structures. It’s a clear set of expectations and a command chain. Administrative employees are accountable to both their immediate superiors and a larger set of rules and procedures. Bureaucratic leaders lead by enforcing existing structures and overseeing specific hierarchy segments.

Characteristics of a bureaucratic leader

  1. Detail-oriented
  2. Hardworking
  3. Strong-minded
  4. Task-oriented
  5. Passionate

Advantages of Bureaucratic Style

  1.  It eliminates favoritism.
  2.  It creates a stronger level of job security.
  3. Clear definition of roles
  4.  It is a leadership style that fosters familiarity.
  5. Equal Chances to Succeed

Disadvantages

  1.  Rigidity due to set rules and formalities
  2.  Increasing productivity can be difficult.
  3.  Creativity is limited
  4. Decreased Employee Morale

6. Affiliative leadership style: People come first in this style of leadership. In Affiliative leadership, the leader gets close to the people. This leader pays attention to and supports team members’ emotional needs. The leader aims to create a pipeline for the team.This style promotes teamwork and harmony. It’s great for resolving team conflicts or calming people down in stressful situations.

Characteristics of an Affiliative leader

  1.  Togetherness and equality
  2.  Innovation and creativity
  3.  Ability to build trust and give much-needed positive feedback
  4.  The ability to promote open, honest dialogue
  5.  A natural sense of peace

Advantages

  1.  Workplace feedback is vital.
  2.  These leaders resolve conflicts quickly.
  3.  The employee’s well-being becomes a priority
  4.  Affiliative leadership reduces stress levels.
  5.  This leadership style can help people recover from difficult incidents.

Disadvantages

  1. Affiliative leaders tend to avoid conflict
  2. The organization’s overall goal may be lost
  3. Absence of real leadership
Factors that influence the choice of leadership style
  1. Followers need independence.
  2. Organizational loyalty of followers
  3. Technology’s impact
  4. Leader-follower relations
  5. Time pressure or situational stress.
  6. Organizational culture
Qualities of Leadership

To be able to provide effective leadership to his subordinates, a leader needs to have certain qualities. The more important qualities of a leader may be summarized as follows:

  1. Emotional stability: The leader should not be unduly moved by emotion or sentiment. He should be able rationally and logically to analyze the various problems before him and reach a decision without any fear or favor.  
  2. Sense of judgment: The leader should be a master of human psychology. He should possess a deep understanding of human behavior, emotions, sentiments, needs, motives, etc. This would enable him to anticipate the response to his decisions and actions.
  3. Balance: The leader should be rational and objective in his approach. He should be free from bias, prejudice, and preconceived notions. Only then would he be able to decide issues on their merits.
  4. Understanding or empathy: The leader should show understanding of others’ viewpoints. If he tends to have his own way in all matters, he might lose their goodwill.
  5. Motivation: Only a person who is himself well motivated can motivate others. The desire to lead people should come from within. If a person is forced to do his job under fear of punishment, he will behave more like a follower than a leader.
  6.  Communicating skill: The leader should be good at communicating ideas, feelings, decisions, orders, etc. He should be a good and effective speaker and writer. Then alone, he would be able to persuade, inform, stimulate and direct his subordinates.
  7.  Ability to guide: The leader should help his subordinates to learn. Both by word and deed, he should demonstrate to them the best ways of accomplishing the jobs.
  8.  Sociability: The leader should show a keen interest in his subordinates. He should try to meet them often and encourage them to discuss their problems and difficulties with him. He should be friendly, helpful, and easily accessible to all his subordinates.
  9. Technical competence: The leader should possess a thorough knowledge of the theory and practice of his job. Besides, he should be quite familiar with the jobs done at different work points in his department.
Factors Influencing Leadership effectiveness

Identification of situational factors within the work environs and the choice of appropriate leadership style is the essence of effective leadership. The following factors influence leader effectiveness in different work situations:

  1. Leader personality and past experiences: Manager’s value background and experiences will affect his or her choice of leadership styles. A manager who has had success in exercising little supervision or values the self-fulfillment needs of subordinates may adopt an employee-oriented style of leadership.
  2. Expectation of superiors: A boss who favors task-oriented leadership may influence a manager to follow suit. However, a superior who favors employee-oriented leadership may encourage the manager to adopt it.
  3. Subordinate’s characteristics and expectations: Subordinates’ responses to managers will be influenced by their skills and training. Professionals normally require less direct approach
  4. Task requirements: Jobs that precise instructions are to be followed demand a more task-oriented style than jobs whose operating procedures can be left largely to the individual employees, e.g., University teaching.
  5. Organizational climate and policy: ‘Personality” or climate of an organization influences the expectations and behaviors of organization members. In organizations where climate and policies encourage strict accountability for expenses and results, managers usually supervise and control subordinates tightly.
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