UNIT III

LEADING AND CONTROLLING

LEADERSHIP

 “It’s the process of influencing

the behavior of others towards
the accomplishment of goals in
a given situation. ”
 “It’s the activity of influencing
people to strive willingly for
group objectives.”- acc to
George R. Terry.
NATURE OF LEADERSHIP
 A leader must have followers.
 It’s a working relationship b/w the leader &
his followers.
 It’s purpose is to achieve some common
goal or goals.
 A leader influences his followers willingly
not by force or coercion.
 It is exercised in a given situation. L = (l, f,
s).
 Social interaction-influence process.
 It’s a power relationship.
 Continuous & dynamic process of
influencing behavior.
LEADERSHIP VS MANAGEMENT
“A leader need not be a manager but a manager must
have many of the qualities of a good leader.”

 Relationship.
 Source of influence.
 Sanctions.
 Basis of following.
 Accountability.
 Functions.
 IMPORTANCE OF
LEADERSHIP
 Guiding people.
 Developing teamwork.
 Maintaining discipline.
 Building morale.
 Representing the group.
 LEADERSHIP STYLES

LEADERSHIP
STYLES

AUTOCRATIC/ FREE-REIN/
AUTHORITARIAN LAISSEZ-FAIRE
LEADERSHIP LEADERSHIP

DEMOCRATIC/
PARTICIPATIVE
LEADERSHIP
 AUTOCRATIC / AUTHORITARIAN
“Autocratic leader exercises complete control
over the subordinates.”

ADVANTAGES
 It permits quick decision making.
 It provides strong motivation &
satisfaction to the leader who
dictates terms.
 Less competent subordinates r
needed at lower level.
 This style may yield positive results
when great speed is required.
 DISADVANTAGES OF
AUTOCRATIC STYLE
 It leads to frustration, low morale &
conflict among subordinates.
 Subordinates tend to shrink
responsibility & initiative.
 Full potential of subordinates & their
creative ideas r not utilised.
 Org’nl continuity is threatened in the
absence of the leader b’coz
subordinates get no opportunity for
development.
 DEMOCRATIC STYLE
[participative/consultative]
ADVANTAGES
 Improves job satisfaction & morale of
subordinates.
 It cultivates the decision-making ability of
subordinates.
 The leader multiplies his abilities through
the contribution of his followers.
 Develops positive attitudes & reduces
resistance to change.
 The quality of decision is improved.
 Labor absenteeism & turnover r reduced.
DISADVANTAGES
 Time consuming & may result in
delays in DM.
 Requires considerable
communicating & pervasive skills on
the part of the leader.
 It may be used as a means of
passing the buck to others & of
abdicating responsibility.
 Consultation may be interpreted as a
sign of incompetence on the part of
the leader to deal with problems.
 LAISSEZ-FAIRE STYLE
[Free-rein]
ADVANTAGES
 Positive effect on job
satisfaction & morale of
subordinates.
 Max. possible scope for
development of subordinates.
 Full utilization of the potential of
subordinates.
 DISADVANTAGES
 Subordinates do not get the
guidance & support of the leader.
 It ignores the leader’s contribution.
 Subordinates moves in different
directions & may work at cross
purposes which may degenerate
into chaos.
 LIKERT’S MANAGEMENT
SYSTEMS
 System 1- Exploitative Autocratic.
 System 2- Benevolent Autocratic.
 System 3- Consultative.
 System 4- Democratic.
THEORIES / APPROACHES
OF LEADERSHIP

MAIN
APPROACHES

TRAIT BEHAVIORAL
THEORY THEORY

SITUATIONAL
THEORY
TRAIT THEORY

 Physical qualities.
 Intellectual qualities.
 Moral qualities.
 Social qualities.
 BEHAVIORAL THEORY
(FOLLOWERS’ THEORY)
 THE MICHIGAN STUDIES,

 THE OHIO STATE

UNIVERSITY STUDIES,

 THE MANAGERIAL GRID.

SITUATIONAL THEORY
 FIELDER’S CONTINGENCY
MODEL,
 HOUSE’S PATH-GOAL MODEL,
 LIFE CYCLE MODEL,
 REDDIN’S TRI-DIMENSIONAL
MODEL,
 HERSEY-BLANCHARD MODEL.
CONCEPT OF CONTROL

 “controlling is determining what

is being accomplished –that is
evaluating performance & if
necessary applying correcting
measure so that the
performance take place
according to plans ”- Terry &
Franklin.
CONCEPT

 It may be defined as the

process of ensuring that
activities are producing the
desired results.
 It involves guiding & regulating
operations towards some pre-
determined goal.
MANAGERIAL CONTROL
 “It implies the measurement of
accomplishment against the
standards & the correction of
deviations to assure attainment of
objective acc to plans.” – acc. to
Koontz & O’Donnell,
 “Mgt control is the process by which
managers assure that resources are
obtained & used effectively &
efficiently in the accomplishment of
an org’s objectives”-by Robert N.
Anthony
NATURE OF CONTROL

 Control process is universal.

 It is a continuous process.
 It is forward looking.
 It involves measurement.
 It is an influence process.
 Management control is a
system.
NEED FOR CONTROL

 To measure progress.
 To uncover deviation.
(a) change,
(b) delegation,
(c) mistakes,
(d) complexity.
 To indicate corrective action.
IMPORTANCE
A good control system offers the following
benefits.
 Guide to operations.
 Policy verification.
 Managerial accountability.
 Employee morale.
 Psychological pressure.
 Coordination in action.
LIMITATIONS

 Cannot control the external

factors.
 Employees resistance.
 Expensive process.
 When performance standards
can’t defined in quantitative
terms.
 TYPES OF CONTROL

control

Historical/ Feed
feedback forward

Concurrent
HISTORICAL / FEEDBACK
CONTROL
 Traditionally control was viewed as
historical or post-action control.
 Under it result are measured after
the performance.
 Such measurement provides
information about how goals have
been achieved.
 This information is known as
feedback & on this basis corrective
action is taken.
CONCURRENT CONTROL

 It is known as real time or

steering control.
 It involves the adjustment of
performance before any serious
damage is done.
 It occurs while an activity is still
taking place.
FEEDFORWARD CONTROL
 This control system anticipates the
problems that the mgt is likely to
encounter in future & identifies the
steps to be taken to overcome them.
 It is also known as predictive control.
 It is more aggressive approach to
control b’coz correction can be made
before the system output is affected.
 COMPARISION B/W FEEDBACK
& FEEDFORWARD

INPUTS PROCESS OUTPUTS

FUTURE ORIENTED PAST ORIENTED

CONTROL CONTROL
AREAS OF CONTROL

 Control over personnel.

 Control over performance.
(a) control of production,
(b) control over finance,
(c) control over morale.
ESSENTIALS OF AN EFFECTIVE
CONTROL SYSTEM
 Focus on objectives & needs.
 Forward looking.
 Prompt.
 Strategic point control.
 Flexibility.
 Objectivity.
 Economical.
 Motivating.
 Suggestive.
 Simple.
 CONTROL PROCESS

STANDARDS PERFORMANCE
(Planning) OPERATIONS
ORGANIZING
STAFFING &
DIRECTING
MEETS
STANDARDS

DOES NOT
CORRECTIVE
MEET
ACTION
STANDARDS
CAUSES OF HUMAN
RESISTANCE TO CONTROL
 Curb on freedom.
 Curb on creativity & innovation.
 Rigid control standards.
 Faulty evaluation system.
 Fear of discrimination.
 Against self-control.
REMEDIES TO OVERCOME
RESISTANCE
 Standards/ goals must be
established in consultation with the
employees.
 Standards should be flexible &
realistic.
 Control measures should focus on
improvement of behavior &
performance rather than on
deviations & faults.
 Control should be administered
objectively & fairly.
REMEDIES
 Management should have faith in the
capacity & character of subordinates.
 The reward structure in the org should
be integrated with the control system.
 A two-way communication should be
established in the org.
 Develop positive attitude among
employees to overcome the ego
problem.
CONTROL TECHNIQUES
-AN OVERVIEW
 TRADITIONAL AIDS
(a) Personal observation,
(b) Good org. structure,
(c) Unity of objectives, polices,
(d) procedures & methods,
(e) Statistical reports analysis,
(f) Break-even analysis,
(g) Budgetary control.
 CONTROL TECHNIQUES
-AN OVERVIEW
 MODERN AIDS
(a) Mgt audit,
(b) Return on investment,
(c) Responsibility accounting,
(d) PERT & CPM,
CRISIS MANAGEMENT

“There is no longer any such thing as

strategy, only crisis management”.
By Robert Macnamara
CONCEPT OF CRISIS
MANAGEMENT
 A crisis is a turning point & a time of
danger. In this turbulent era, turning
points & dangerous moments arise
quite frequently.
 This is the process of tackling a
dangerous situation & the acute
problem faced by the org.
 This process involves planning,
organizing, directing & controlling
several interrelated operations.
 It guides the decision making process
of the mgt which is under pressure of
time.
 It is good mgt under pressure.
CAUSES OF CRISES

 NATURAL DESASTER.

 ACTIF HUMAN BEINGS.

CRISIS MANAGEMENT
BEHAVIOR
 Be cool,

 Win confidence of your people,

 Act fast.
CRISIS MANAGEMENT
TECHNIQUES
 Sit back with a cool mind & assess
the situation.
 Prepare a stepwise plan of action
together with contingency plans to
deal wit the eventualities.
 Constitute a crisis management
team.
 Set up a crisis mgt center.
 Modify the plan & take swift
premptive or corrective action.
TECHNIQUES
 Develop a sound communication
system.
 Delegate peripheral problems to
others.
 Relegate routine problems to be
dealt in future.
 Monitor continuously & take quick
action.
 Evaluate actions & reactions
continuously.