1. BUSINESS MANAGEMENT CHAPTER 2 LEADERSHIP:STYLES AND THEORIES
Acc. To Franklin G.Moore,”Leadership is the ability to make men act the way the leader wants.”

2. Characteristics or Nature of Leadership
Followers
Personal Ability
Influencing process
No need of coercion
Full capability utilisation
Ideal conduct
Leadership is a continuing process
Leadership is a part of management but not all of it
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3. 9.Leadership is ever a new process
10.Leadership is something a person does, not something he has
11.Leadership transforms potential into reality
12.Leaders exist because of the need of the people to follow someone
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4. Importance of leadership
Peter F.Drucker. ”A business leader is the basic and not easily available source of a business enterprise. The chief factor in the failure of many business enterprises has been inefficient leadership.”
Acc. to Koontz and O’Donnell :
Impact of leadership on employees’ utilization of capability:
1. Social Pressure
2. Need for a job
3.Authority of Superior
A) Normal Expectancy:
1.Social Pressure
2.Need for a job
3.Authority of superior
B) Expectancy Through Leaderhship:
1.Induced by Leadership.
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5. 3.Directing Group Activities 4.Promoting the Spirit of Coordination
1. Source of Motivation
2.Basis for Cooperation
3.Directing Group Activities
4.Promoting the Spirit of Coordination
5.Facility to the Executives
6.Fulfilling Social Responsibility
7.Basis for Success of Business
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6. Functions of a Leader 1. To define Organisational Goals
2. To divide the Work as per Capability
3. To Guide the Activities
4. To Maintain Discipline
5. To Create Effective Communication
6. To Understand the Feelings if his Subordinates
7. To Secure Cooperation
8. To Represent the Organisation
9. To Make Decisions
10. To Design Environment as per Result Expectations
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7. Qualities of a Leader 1. Ability to Motivate 2. Ability to Communicate
3. Quick Decision-making Power
4. Integrity
5. Full of Courage
6. Self-confidence
7. Flexibility of Mind
8. Ability to Understand the Feelings of Others
9. Sense of Responsibility
10. Tolerance
11. Alertness
12. Technical Ability
13. Psychological Expert
14. Human Ability
15.Physical and Mental Fitness
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8. THEORIES OF LEADERSHIP
THE TRAIT THEORY- Bernard and Ordway Teed
Leadership ability is inborn and it cannot be achieved by making any effort
Acc. To Stogdill- 40 qualities divided into 5 parts
Physical traits
Intelligence and ability traits
Personality traits
Task related traits
Social traits
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9. Ignorance about situations Unclarity about the degree
CRITICISM-
Lack of uniformity
Ignorance about situations
Unclarity about the degree
Problem of measuring the traits
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10. Whether a leader will be successful in all situations.
2. THE SITUATION THEORY-
CRITICISM-
Whether a leader will be successful in all situations.
What qualities required in different situations
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11. Followers alone does not determine the leadership ability
3.THE FOLLOWERS THEORY-
CRITICISM-
Followers alone does not determine the leadership ability
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12. Factors creating behaviour- Level of qualities of a leader
4.BEHAVIOURAL THEORY-
Acc to Ray A Killian- a leader should present an ideal behaviour before his followers.
Factors creating behaviour-
Level of qualities of a leader
Followers’ faith
Nature of goals
Available environment
CRITICISM-
time an important factor was ignored
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13. 5.GROUP APPROACH THEORY- BY Kurt Lewin
leader should adopt the norms of the group
6.X AND Y THEORY- By Mc Gregor
7.PATH GOAL THEORY- based on expectancy model of motivation.
Motivation=valence x expectancy
valence= all round development of employees
Expectancy=preparing the way for the attainment of the goals
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14. LEADERSHIP STYLES MOTIVATIONAL STYLE-
POSITIVE STYLE- by economic and non economic incentives.
NEGATIVE STYLE-by coercion and fear.
2.POWER BASED STYLE-
AUTOCRATIC STYLE-
CHARACTERISTICS:
a)Formal relations, b)centralised authority, c)single man decisions, d)negative motivation, e)wrong belief regarding employees, f)employees’ behaviour, g)only downward communication, h)tight and close supervision and control.
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15. ADVANTAGES- a)quick and clear decisions,
b)satisfactory work, c)necessary for less educated employees, d)source of motivation for employees.
DISADVANTAGES-a)lack of motivation, b)less productivity, c)agitation by employees, d)possibility of partiality.
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16. ii.DEMOCRATIC STYLE-
CHARACTERISTICS: a)cooperative relations, b)positive motivation,c)belief in employees, d)open communication, e)group decision making, f)cooperative behaviour among employees, g)no need of tight control.
ADVANTAGES: a)high morale, b)creation of more efficiency and productivity, c)peaceful industrial relations, d)quick acceptance of changes, e)availability of sufficient time for constructive work.
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17. DISADVANTAGES- a)requirement of educated subordinates, b)delay in decisions, c)lack of responsibility in managers, d)many types of employees.
iii.FREE-REIN STYLE-
CHARACTERISTICS: a)full faith in subordinates, b)independent decision making system, c)decentralisation of authority, d)cooperative relations, e)motivation through authority, f)two way communication, g)self directed, supervisory and controlled, h)sense of responsibility in employees
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18. ADVANTAGES-1)Devlpt of self confidence in subordinates, 2)high level motivation, 3)helpful in devplt and extension of the enterprise.
DISADVANTAGES-1)difficulty in cooperation, 2)lack of importance of managerial post, 3)suitable only for highly educated employees.
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19. I.EMPLOYEE ORIENTED STYLE: human behaviour is required.
3. RESULT BASED STYLE-
I.EMPLOYEE ORIENTED STYLE: human behaviour is required.
*not suitable where employees are careless. The manager should have be a psychologist.
ii.PRODUCTION ORIENTED STYLE: production more stressed.
*not suitable in the long run.
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20. Determinants of leadership style
Nature of leader
Nature of followers
Size of the organisation
Situations of work
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21. Leadership as a continuum
A blend of different leadership styles is called continuum of leadership behaviour given by Robert Tannenbaum and Warren H.Schmidt.
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22. A leader take decision and announce it A leader tells his decision
A leader presents ideas and invites questions
A leader presents a tentative decision subject to change
A leader invites ideas before taking a final decision
A leader defines the limits within which the subordinates take decisions
A leader permits the group to take decision acc. To the situation.
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23. Management system of likert
Rensis Likert- worked at the Michigan University,
U.S.A.
Included 7 variables in his research-
Leadership
Motivation
Communication
Interactive influence
Decision making process
Goal setting
Control process
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24. Exploitative authoritative: system 1 Benevolent authoritative:system 2
Four models-
Exploitative authoritative: system 1
Benevolent authoritative:system 2
Consultative: system 3
Participative: system 4
Test of management systems-
Productivity
Employees’ turnover rate
Employees’absenteeism rate
Quality control
Wastage of resources
Wastage of scrap
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25. CHAPTER 3 MOTIVATION: nature and theories
Allen- poorly motivated people can nullify the soundest organisation.
Motive means the hidden will power in an individual which impels or encourages him to work.
Acc. To Koontz and O’Donnell- To motivate is to induce people people to act in a desired manner.
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26. Characteristics or nature of motivation-
Motivation is an internal feeling
Motivation is a continuous process
Each person has different motivational factors
Motivation may be given in many ways
It’s an important function of management
It stimulates people to do work
It help in securing industrial peace
It creates morale
It is the only solution to the problem
It relates with all levels of organisation
It relates with human factor of production
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27. Advantages or importance of motivation
Renis Likert- The core of management.
High level of performance
Low employees turnover & absenteeism
Easy acceptance of organisational changes
Sweet relations between owner & employees
Good image of organisation
Increase in morale
Proper use of human resources possible
Helpful in achieving goals
Builds good relations among employees
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28. Motivation process Robbins & Coulter- need- satisfying process
Unsatisfied need
Tension
Drives
Search behaviour
Need satisfied
Reduction of tension
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30. Maslow’s need hierarchy theory
Physiological needs
Safety needs
Social needs
Esteem & status needs
Self actualisation needs
Assumptions- a)people’s behaviour is affected by their needs, b)there are many needs of people and they can be arranged in an order, c)motivation ends with the satisfaction of needs,d)people move to next need only when the lower need is satisfied.
Criticism-a)the hierarchy of needs is not permanent, b)not necessary that only one need is strong at a time.
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31. Herzberg,s motivation-hygiene theory
A)Maintenance or Hygiene or Dissatisfiers-
1.company’s policy & administration 2.technical
Inspection 3.mutual personal relation with inspector 4.mutual relation with other team members 5.salary 6.working conditions 7.personal life 8.security of employment 9.status 10.environment.
B)Motivators or satisfiers- 1.achievement 2.recognition 3.advancement 4.job itself 5.opportunities for growth 6.resposibility
Criticism- the classification is not practical.
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32. McGregor’s X & Y theory Theory X Man by nature is sluggish and shirker
Mostly people are not ambitious and don’t want to take resposibility
People want to be directed
Only physical and security needs motivate
Strict control,threat and punishment are used to get the work done.
Theory Y
Man wants to work in favourable conditions
People are enthusiastic, responsible & full of effort
People are self directed
Physical & security needs motivate for short run only
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33. Ouchi’s Z Theory Features of Japanese Management System-
Planning- a)more attention to long term objectives b)subordinates are given importance in decision making c)no hasty decisions are taken d)quick decision implementation.
Organizing- a)collective responsibility b)informal organizing c)changes with collective consultation d) internal change agents are used to implement change.
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34. 3) Staffing- a) recruitment through technical institutions b)employment for the whole life c)change of company by the employees is almost non existent d)slow promotion e)long term performance appraisal f)training is considered as long term investment g)arising spirit of dedication amongst employees.
4) Directing- a)a leader is like a helper b) effort to reduce quarrels & creating friendly relations e) face to face communication.
5) Controlling – a) importance to quality b)close control c) collective control
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35. Involvement of employees
Features of Z theory-
Involvement of employees
Establishment of informal organisational structures
Establishment of trust
Establishment of strong relation between organisation & employees
Establishment of coordination among people
Criticism-
Lack of reqd efficiency for participation
Lack of reciprocal loyalty
Lack of group feeling
Lack of tolerance in investors
Informal organisation cannot work independently
Horizontal movement reduces specialisation
Z Theory: A practical experience in india- MARUTI UDYOG LIMITED
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36. Techniques of motivation
Positive motivators- acc to Flippo- positive motivation is a process of attempting to influence others to do their work through the possibility of gain or reward.
Negative motivators- acc to Likert- in the long run negative motivation reduces the productivity.
Financial/monetary incentives- i.pay & allowances, ii.productivity linked wage incentive, iii.bonus, iv.profit sharing, v.co- partnership, vi.retirement benefits, vii.perquisites.
Non-financial/non-monetary incentives- i.status, ii.organisational climate, iii.career advancement opportunity, iv.job enrichment, v.employee recognition programmes, vi.job security, vii.employee participation, viii.employee empowerment, ix.praise, x.guarantee of justice, xi.knowledge of secret information, xii.fearless environment, xiii.job rotation.
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37. 5)Individual motivators-
Advantages: i. attraction for other employees, ii.increases efficiency, iii.gives the employee a sense of prestige, iv.job evaluation is simple, v.attraction for new entrants.
6)Group motivators-
Advantages: i.checks the feeling of mutual conflict, ii.establish industrial peace, iii.all employees work with a team spirit, iv.more work at less time & less cost, v.raises the reputation of the enterprise.
7)Extrinsic motivators- get the benefit afterwards.
8)Intrinsic motivators- get the benefit at the same time.
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38. Problems or hurdles in motivation
A costly effort
Trouble making employees
It is an internal feeling
Opposition to changes
Essentials/principles of motivation-
Productive
Competitive
Comprehensive
Flexible
Easily understandable
Easy implementation
Increase in reputation
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39. 9. Based on organizational goals 10. Based on standards
8. Regular motivation
9. Based on organizational goals
10. Based on standards
11. Related to efforts
12. Justifiable
13. Less expensive
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