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Job evaluation

A job evaluation is a systematic way of determining the value/worth of a job in relation to other jobs in an organization. It tries to make a systematic comparison between jobs to assess their relative worth for the purpose of establishing a rational pay structure. Job evaluation needs to be differentiated from job analysis. Job analysis is a systematic way of gathering information about a job. Every job evaluation method requires at least some basic job analysis in order to provide factual information about the jobs concerned. Thus, job evaluation begins with job analysis and ends at that point where the worth of a job is ascertained for achieving pay equity between jobs.

Features [edit]
The purpose of job evaluation is to produce a defensive[clarification needed] ranking of jobs on which a rational and acceptable pay structure can be built. The important features of job evaluation may be summarised thus:
     

It tries to assess jobs, not people. The standards of job evaluation are relative, not absolute. The basic information on which job evaluations are made is obtained from job analysis. Job evaluations are carried out by groups, not by individuals. Some degree of subjectivity is always present in job evaluation. Job evaluation does not fix pay scales, but merely provides a basis for evaluating a rational wage structure.

Process of job evaluation [edit]
The process of job evaluation involves the following steps:

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Gaining acceptance: Before undertaking job evaluation, top management must explain the aims) and uses of the programme to the employees and unions. To elaborate the programme further, oral presentations could be made. Letters, booklets could be used to classify all relevant aspects of the job evaluation programme. Creating job evaluation committee: It is not possible for a single person to evaluate all the key jobs in an organisation. Usually a job evaluation committee consisting of experienced employees, union representatives and HR experts is created to set the ball rolling. Finding the jobs to be evaluated: Every job need not be evaluated. This may be too taxing and costly. Certain key jobs in each department may be identified. While picking up the jobs, care must be taken to ensure that they represent the type of work performed in that department. Analysing and preparing job description: This requires the preparation of a job description and also an analysis of job needs for successful performance . Selecting the method of evaluation: The most important method of evaluating the jobs must be identified now, keeping the job factors as well as organisational demands in mind.

Classifying jobs: The relative worth of various jobs in an organisation may be found out after arranging jobs in order of importance using criteria such as skill requirements, experience needed, under which conditions job is performed, type of responsibilities to be shouldered, degree of supervision needed, the amount of stress caused by the job, etc. Weights can be assigned to each such factor. When we finally add all the weights, the worth of a job is determined. The points may then be converted into monetary values.

Installing the programme [edit]
Once the evaluation process is over and a plan of action is ready, management must explain it to employees and put it into operation.

Reviewing periodically [edit]
In the light of changes in environmental conditions (technology, products, services, etc.) jobs need to be examined closely. For example, the traditional clerical functions have undergone a rapid change in sectors like banking, insurance and railways, after computerisation. New job descriptions need to be written and the skill needs of new jobs need to be duly incorporated in the evaluation process. Otherwise, employees may feel that all the relevant job factors - based on which their pay has been determined - have not been evaluated properly. For job evaluation to be practicable it is necessary:
  

that jobs can be easily identified that there are sufficient differences between different jobs; and that agreements no the relative importance or worth of different jobs can be negotiated between the enterprise and its employees and/or their representatives..

Benefits [edit]
The pay offs from job evaluation may be stated thus:
 

 

It tries to link pay with the requirements of the job. It offers a systematic procedure for determining the relative worth of jobs. Jobs are ranked on the basis of rational criteria such as skill, education, experience, responsibilities, hazards, etc., and are priced accordingly. An equitable wage structure is a natural outcome of job evaluation. An unbiased job evaluation tends to eliminate salary inequities by placing jobs having similar requirements in the same salary range. Employees as well as unions participate as members of job evaluation committee while determining rate grades for different jobs. This helps in solving wage related grievances quickly. Job evaluation, when conducted properly and with care, helps in the evaluation of new jobs. It points out possibilities of more appropriate use of the plant's labour force by indicating jobs that need more or less skilled workers than those who are manning these jobs currently.

Job evaluation methods [edit]
There are three basic methods of job evaluation: (1) ranking, (2) classification, (3) factor comparison. While many variations of these methods exist in practice, the three basic approaches are described here.

Ranking method [edit]
Perhaps the simplest method of job evaluation is the ranking method. According to this method, jobs are arranged from highest to lowest, in order of their value or merit to the organization. Jobs can also be arranged according to the relative difficulty in performing them. The jobs are examined as a whole rather than on the basis of important factors in the job; the job at the top of the list has the highest value and obviously the job at the bottom of the list will have the lowest value. Jobs are usually ranked in each department and then the department rankings are combined to develop an organizational ranking. The variation in payment of salaries depends on the variation of the nature of the job performed by the employees. The ranking method is simple to understand and practice and it is best suited for a small organisation. Its simplicity however works to its disadvantage in big organisations because rankings are difficult to develop in a large, complex organisation. Moreover, this kind of ranking is highly subjective in nature and may offend many employees. Therefore, a more scientific and fruitful way of job evaluation is called for.

Classification method [edit]
According to this method, a predetermined number of job groups or job classes are established and jobs are assigned to these classifications. This method places groups of jobs into job classes or job grades. Separate classes may include office, clerical, managerial, personnel, etc. Following is a brief description of such a classification in an office.

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Class I - Executives: Further classification under this category may be Office Manager, Deputy office manager, Office superintendent, Departmental supervisor, etc. Class II - Skilled workers: Under this category may come the Purchasing assistant, Cashier, Receipts clerk, etc. Class III - Semiskilled workers: Under this category may come Stenotypists, Machine-operators, Switchboard operator etc. Class IV - Unskilled workers: This category comprises Daftaris[clarification needed], File clerks, Office boys, etc.

The job classification method is less subjective when compared to the earlier ranking method. The system is very easy to understand and acceptable to almost all employees without hesitation. One strong point in favour of the method is that it takes into account all the factors that a job comprises. This system can be effectively used for a variety of jobs. The weaknesses of the job classification method are:
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Even when the requirements of different jobs differ, they may be combined into a single category, depending on the status a job carries. It is difficult to write all-inclusive descriptions of a grade.

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The method oversimplifies sharp differences between different jobs and different grades. When individual job descriptions and grade descriptions do not match well, the evaluators have the tendency to classify the job using their subjective judgements.

Factor comparison method [edit]
A more systematic and scientific method of job evaluation is the factor comparison method. Though it is the most complex method of all, it is consistent and appreciable. Under this method, instead of ranking complete jobs, each job is ranked according to a series of factors. These factors include mental effort, physical effort, skill needed, responsibility, supervisory responsibility, working conditions and other such factors (for instance, know-how, problem solving abilities, accountability, etc.). Pay will be assigned in this method by comparing the .weights of the factors required for each job, i.e., the present wages paid for key jobs may be divided among the factors weighted by importance (the most important factor, for instance, mental effort, receives the highest weight). In other words, wages are assigned to the job in comparison to its ranking on each job factor. The steps involved in factor comparison method may be briefly stated thus:
   

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Select key jobs (say 15 to 20), representing wage/salary levels across the organisation. The selected jobs must represent as many departments as possible. Find the factors in terms of which the jobs are evaluated (such as skill, mental effort, responsibility, physical effort, working conditions, etc.). Rank the selected jobs under each factor (by each and every member of the job evaluation committee) independently. Assign money value to each level of each factor (example: consider problem solving is one of the factor, what level of problem solving is required {basic, intermediate or advance}) and determine the wage rates for each key job. The wage rate for a job is apportioned along the identified factors. All other jobs are compared with the list of key jobs and wage rates are determined. An example of how the factor comparison method works is given below:

After the wage rate for a job is distributed along the identified and ranked factors, all other jobs in the department are compared in terms of each factor. Suppose the job of a 'painter' is found to be similar electrician in skill (15), fitter in mental effort (10), welder in physical effort (12) cleaner in responsibility! (6) and labourer in working conditions (4). The wage rate for this job would be (15+10+12+6+4) is47.j

Point method [edit]
This method is widely used currently. Here, jobs are expressed in terms of key factors. Points are assigned to each factor after prioritizing each factor in order of importance. The points are summed up to determine the wage rate for the job. Jobs with similar point totals are placed in similar pay grades. The procedure involved may be explained thus: 1. Select key jobs. Identify the factors common to all the identified jobs such as skill, effort, responsibility, etc.

2. Divide each major factor into a number of sub factors. Each sub factor is defined and expressed clearly in the order of importance, preferably along a scale. The most frequent factors employed in point systems are (i) Skill (key factor); Education and training required, Breadth/depth of experience required, Social skills required, Problemsolving skills, Degree of discretion/use of judgment, Creative thinking (ii) Responsibility/Accountability: Breadth of responsibility, Specialized responsibility, Complexity of the work, Degree of freedom to act, Number and nature of subordinate staff, Extent of accountability for equipment/plant, Extent of accountability for product/materials; (iii) Effort: Mental demands of a job, Physical demands of a job, Degree of potential stress The educational requirements (sub factor) under the skill (key factor) may be expressed thus in the order of importance. 3. Find the maximum number of points assigned to each job (after adding up the point values of all sub-factors of such a job). This would help in finding the relative worth of a job. For instance, the maximum points assigned to an officer's job in a bank come to 540. The manager's job, after adding up key factors + sub factors points, may be getting a point value of say 650 from the job evaluation committee. This job is now priced at a higher level. 4, Once the worth of a job in terms of total points is expressed, the points are converted into money values keeping in view the hourly/daily wage rates. A wage survey is usually undertaken to collect wage rates of certain key jobs in the organization. Let's explain this:

Merits and demerits [edit]
The point method is a superior and widely used method of evaluating jobs. It forces raters to look into all key factors and sub-factors of a job. Point values are assigned to all factors in a systematic way, eliminating bias at every stage. It is reliable because raters using similar criteria would get more or less similar answers. The methodology underlying the approach contributes to a minimum of rating error (Robbins p. 361). It accounts for differences in wage rates for various jobs on the strength of job factors. Jobs may change over time, but the rating scales established under the point method remain unaffected. On the negative side, the point method is complex. Preparing a manual for various jobs, fixing values for key and subfactors, establishing wage rates for different grades, etc., is a time consuming process, According to Decenzo and Robbins, "the key criteria must be carefully and clearly identified, degrees of factors have to be agreed upon in terms that mean the same to all rates, the weight of each criterion has to be established and point values must be assigned to degrees". This may be too taxing, especially while evaluating managerial jobs where the nature of work (varied, complex, novel) is such that it cannot be expressed in quantifiable numbers.

Limitations of job evaluation [edit]
1. Job evaluation is not exactly scientific. 2. The most of the techniques is difficult to understand, even for the supervisors. 3. The factors taken by the programme are not exhaustive.

values and aspirations of employers. There may be wide fluctuations in compensable factors in view of changes in technology. there are four techniques used in the design of jobs. Simplification of work requires that jobs be broken down into their smallest units and then analysed. Michael Armstrong11 has defined job design as "the process of deciding on the contents of a job in terms of its duties and responsibilities. Mathis and Jackson I2 have defined job analysis as "a process that integrates work content (tasks. The very idea is that job should be designed in such a way as to enable employees to control over the aspects of their work. and on the relationships that should exist between the job holder and his superiors. functions.. on the methods to be used in carrying out the job. These include Job simplification. Job simplification [edit] Job simplification is a design method whereby jobs are divided into smaller components and subsequently assigned to workers as whole jobs. job design involves specifying the contents of a job. Job enlargement. job analysis provides job-related data as well as the skills and knowledge required for the incumbent to perform the job. duties. Job enrichment and Job rotation... it can now be described as a deliberate attempt made to structure both technical and social aspects of the job to attain a fit between the individual (job holder) and the job. Each resulting sub-unit typically consists of relatively few operations. Concept of job design [edit] What is job design? As we just explained. A better job performance also requires deciding on sequence of job contents. the work methods used in its performance and how the job relates to other jobs in the organisation. trade union leaders. and the qualifications required (skills. systems and procedures. thus creating grounds for dispute. and responsibilities into a unit of work to achieve certain objectives". These subunits are then assigned to the workers as their . knowledge. A few definitions on job design are produced here with a view to help you understand the meaning of job design in a better manner.4. etc. abilities) for each job in a way that meets the needs of employees and organisations. Job design is a logical sequence to job analysis. The underlying justification being that by doing this. In other words. the rewards(extrinsic and intrinsic)..." Popplewell and Wildsmith13 define job design in these words: ". 5. subordinates and colleagues". harnesses the potential of the workers in a more effective manner and thereby improves employee performance. in terms of techniques. This is called 'job design'. Employees. Techniques for designing jobs [edit] Basically. Having gone through the above definitions of job design. management and the programme operators may assign different weight to different factors. relationships).involves conscious efforts to organise tasks. it enhances the quality of the work life.

responsibility. Job enlargement [edit] Job enlargement expands a job horizontally. is a direct outgrowth of Herzberg's Two Factor Theory of motivation. The basic idea is to restore to jobs the elements of interest that were taken away under intensive specialisation. in turn. By increasing the number of tasks an individual performs. advancement and increased competence. therefore.total job. only the employees are rotated among various jobs. job enlargement increases the job scope. it has done little to provide challenge or meaningfulness to a worker's activities. It is. that is. Job enrichment tries to embellish the job with factors that Herzberg characterised as motivators: achievement. It increases job scope. a mail sorter's job could be enlarged to include physically delivering the mail to the various departments or running outgoing letters through the postage meter. I have three!" So while job enlargement attacks the lack of diversity in overspecialised jobs. Efforts at job enlargement have met with less than enthusiastic results. However. the job itself must provide opportunities for achievement recognition. increased responsibilities. There is an attempt to build into jobs a higher sense of challenge and achievement. recognition. short work cycles allow task performance with little or no mental effort and low-skilled and low-paid employees can be hired and trained easily. as studies have proved. as currently practiced in industry. lack of motivation and low job satisfaction. job simplification results in workers experiencing boredom. On the negative side. can be a source of employee satisfaction. or job diversity. Many fast food restaurants such as McDonald's. Interesting and challenging work. "Before I had one lousy job. through enlargement. improves the employee's skills regarding various jobs and prepares worker's selfimage and provides personal growth. frequent job rotations are not advisable in view of their negative impact on the organisation and the employee. Job rotation [edit] Job rotation refers to the movement of an employee from one job to another. Instead of only sorting the incoming mail by department. based on the assumption that in order to motivate personnel. An employee who works on a routine job moves to work on another job for some hours/days/months and returns back to the first job. Job enrichment [edit] Job enrichment. As one employee who experienced such a redesign on his job remarked. for instance. Jobs themselves are not actually changed. opportunities for growth. advancement and growth. This. This measure relieves the employee from the boredom and monotony. Burger King and Nirula's use simplification because employees can learn tasks rapidly. . leads to lower productivity and increased cost. it increases the number of different operations required in a job and the frequency with which the job cycle is repeated. alienation. through vertical job loading. frustration. 6 Job enrichment has four unique aspects:  It changes the basic relationship between employees and their work. Now.

employee-oriented work environment. 'Individuals can experience the psychological that comes from developing new competencies and doing a job well. . It helps the employer to bring about organisational changes easily. open communication. ICICI. not people. Every job evaluation method requires at least some basic job analysis in order to provide factual information about the jobs concerned.' Many companies in India realised the importance of offering jobs having depth. securing employee cooperation and commitment. Feeling of autonomy and personal freedom help employees view their jobs in a favourable way. The important features of job evaluation may be summarised thus:      It tries to assess jobs. Infosys. Job evaluation needs to be differentiated from job analysis. not by individuals. (November 2012) A job evaluation is a systematic way of determining the value/worth of a job in relation to other jobs in an organisation. They also believed in its future prospects. job evaluation begins with job analysis and ends at that point where the worth of a job is ascertained for achieving pay equity between jobs. Job enrichment can humanise an organisation. flexible working hours. Job analysis is a systematic way of gathering information about a job. sharing with and learning from others etc.   It changes employee behaviours in ways that gradually lead to more positive attitudes about the organisation and a better self-image. Please help improve it by rewriting it in an encyclopedic style. Job evaluations are carried out by groups. Asian Paints. Employees in the above companies admired their leadership for making them fell 'safe and well-led'. The BT-Hewlett Associates study has clearly indicated the benefits of having such excellent practices. Features [edit] The purpose of job evaluation is to produce a defensive[clarification needed] ranking of jobs on which a rational and acceptable pay structure can be built.   Employees in the above companies displayed tremendous pride in what their company does and in its products and services. HLL and Hughes Software have certain things in common: greater opportunities to grow vertically. variety and meaningfulnessl to their employees long back. Individuals are encouraged to grow and push themselves. Some degree of subjectivity is always present in job evaluation. not absolute. excellent reward schemes. Thus. This article is written like a personal reflection or opinion essay rather than an encyclopedic description of the subject. The basic information on which job evaluations are made is obtained from job analysis. Procter & Gamble. The standards of job evaluation are relative. It tries to make a systematic comparison between jobs to assess their relative worth for the purpose of establishing a rational pay structure. Bharat Petroleum.

union representatives and HR experts is created to set the ball rolling. management must explain it to employees and put it into operation. When we finally add all the weights. While picking up the jobs. Selecting the method of evaluation: The most important method of evaluating the jobs must be identified now. Analysing and preparing job description: This requires the preparation of a job description and also an analysis of job needs for successful performance . Usually a job evaluation committee consisting of experienced employees. To elaborate the programme further. For example. degree of supervision needed. booklets could be used to classify all relevant aspects of the job evaluation programme. Creating job evaluation committee: It is not possible for a single person to evaluate all the key jobs in an organisation. type of responsibilities to be shouldered.based on which their pay has been determined . after computerisation. keeping the job factors as well as organisational demands in mind. The points may then be converted into monetary values. Process of job evaluation [edit] The process of job evaluation involves the following steps:       Gaining acceptance: Before undertaking job evaluation. etc. New job descriptions need to be written and the skill needs of new jobs need to be duly incorporated in the evaluation process. oral presentations could be made. For job evaluation to be practicable it is necessary:  that jobs can be easily identified . Job evaluation does not fix pay scales.have not been evaluated properly. products. the traditional clerical functions have undergone a rapid change in sectors like banking. This may be too taxing and costly. under which conditions job is performed. employees may feel that all the relevant job factors . Weights can be assigned to each such factor. services. Certain key jobs in each department may be identified. etc. Finding the jobs to be evaluated: Every job need not be evaluated. Reviewing periodically [edit] In the light of changes in environmental conditions (technology. Classifying jobs: The relative worth of various jobs in an organisation may be found out after arranging jobs in order of importance using criteria such as skill requirements. care must be taken to ensure that they represent the type of work performed in that department. Installing the programme [edit] Once the evaluation process is over and a plan of action is ready. Otherwise. the amount of stress caused by the job.) jobs need to be examined closely. but merely provides a basis for evaluating a rational wage structure. insurance and railways. Letters. top management must explain the aims) and uses of the programme to the employees and unions. experience needed. the worth of a job is determined.

the three basic approaches are described here. Ranking method [edit] Perhaps the simplest method of job evaluation is the ranking method. While many variations of these methods exist in practice. education. It points out possibilities of more appropriate use of the plant's labour force by indicating jobs that need more or less skilled workers than those who are manning these jobs currently. (2) classification. Job evaluation methods [edit] There are three basic methods of job evaluation: (1) ranking. Jobs can also be arranged according to the relative difficulty in performing them. Its simplicity however works to its disadvantage in big organisations because rankings are difficult to develop in a large. helps in the evaluation of new jobs. responsibilities. Classification method [edit] . in order of their value or merit to the organization. Benefits [edit] The pay offs from job evaluation may be stated thus:       It tries to link pay with the requirements of the job. jobs are arranged from highest to lowest. According to this method. hazards. This helps in solving wage related grievances quickly.. a more scientific and fruitful way of job evaluation is called for. this kind of ranking is highly subjective in nature and may offend many employees. Moreover. Therefore. (3) factor comparison. The variation in payment of salaries depends on the variation of the nature of the job performed by the employees. The ranking method is simple to understand and practice and it is best suited for a small organisation. and are priced accordingly. complex organisation. Job evaluation. and that agreements no the relative importance or worth of different jobs can be negotiated between the enterprise and its employees and/or their representatives. An equitable wage structure is a natural outcome of job evaluation. The jobs are examined as a whole rather than on the basis of important factors in the job. Jobs are ranked on the basis of rational criteria such as skill.  that there are sufficient differences between different jobs. It offers a systematic procedure for determining the relative worth of jobs.. etc. experience. An unbiased job evaluation tends to eliminate salary inequities by placing jobs having similar requirements in the same salary range. Employees as well as unions participate as members of job evaluation committee while determining rate grades for different jobs. the job at the top of the list has the highest value and obviously the job at the bottom of the list will have the lowest value. when conducted properly and with care. Jobs are usually ranked in each department and then the department rankings are combined to develop an organizational ranking.

Pay will be assigned in this method by comparing the weights of the factors required for each job.Executives: Further classification under this category may be Office Manager. skill needed. Cashier. Office superintendent. etc.). The steps involved in factor comparison method may be briefly stated thus:    Select key jobs (say 15 to 20). managerial. it is consistent and appreciable. etc. This method places groups of jobs into job classes or job grades.Semiskilled workers: Under this category may come Stenotypists. mental effort. Machine-operators. Deputy office manager. working conditions and other such factors (for instance. etc. These factors include mental effort. The job classification method is less subjective when compared to the earlier ranking method. they may be combined into a single category. The weaknesses of the job classification method are:     Even when the requirements of different jobs differ.Unskilled workers: This category comprises File clerks. each job is ranked according to a series of factors. One strong point in favour of the method is that it takes into account all the factors that a job comprises. responsibility. Following is a brief description of such a classification in an office.. a predetermined number of job groups or job classes are established and jobs are assigned to these classifications. etc. Rank the selected jobs under each factor (by each and every member of the job evaluation committee) independently. representing wage/salary levels across the organisation. receives the highest weight). Though it is the most complex method of all.According to this method.     Class I . etc. the evaluators have the tendency to classify the job using their subjective judgements. Office boys. Departmental supervisor. responsibility. In other words. i. Receipts clerk. working conditions. Find the factors in terms of which the jobs are evaluated (such as skill.Skilled workers: Under this category may come the Purchasing assistant.e. depending on the status a job carries. instead of ranking complete jobs. Class III . Factor comparison method [edit] A more systematic and scientific method of job evaluation is the factor comparison method. personnel. When individual job descriptions and grade descriptions do not match well. . Separate classes may include office. mental effort. wages are assigned to the job in comparison to its ranking on each job factor. Class II . The method oversimplifies sharp differences between different jobs and different grades. Class IV . physical effort. This system can be effectively used for a variety of jobs. accountability. The selected jobs must represent as many departments as possible. problem solving abilities. Under this method. The system is very easy to understand and acceptable to almost all employees without hesitation. know-how. clerical. etc. It is difficult to write all-inclusive descriptions of a grade. physical effort. the present wages paid for key jobs may be divided among the factors weighted by importance (the most important factor. supervisory responsibility. for instance. Switchboard operator etc.).

Here. All other jobs are compared with the list of key jobs and wage rates are determined. For instance. Extent of accountability for equipment/plant. The manager's job. what level of problem solving is required {basic. the points are converted into money values keeping in view the hourly/daily wage rates. may be getting a point value of say 650 from the job evaluation committee. This would help in finding the relative worth of a job. Problemsolving skills. after adding up key factors + sub factors points. preferably along a scale. welder in physical effort (12) cleaner in responsibility! (6) and labourer in working conditions (4). Divide each major factor into a number of sub factors. Breadth/depth of experience required. Jobs with similar point totals are placed in similar pay grades. This job is now priced at a higher level. Degree of freedom to act. Suppose the job of a 'painter' is found to be similar electrician in skill (15). Extent of accountability for product/materials. Specialized responsibility. effort. A wage survey is usually undertaken to collect wage rates of certain key jobs in the organization.   Assign money value to each level of each factor (example: consider problem solving is one of the factor. An example of how the factor comparison method works is given below: After the wage rate for a job is distributed along the identified and ranked factors. Complexity of the work. Each sub factor is defined and expressed clearly in the order of importance. jobs are expressed in terms of key factors. 3. Find the maximum number of points assigned to each job (after adding up the point values of all sub-factors of such a job). the maximum points assigned to an officer's job in a bank come to 540. 2. Social skills required. Creative thinking (ii) Responsibility/Accountability: Breadth of responsibility. intermediate or advance}) and determine the wage rates for each key job. Let's explain this: . etc. The points are summed up to determine the wage rate for the job. The most frequent factors employed in point systems are (i) Skill (key factor). 4. The procedure involved may be explained thus: 1. Physical demands of a job. fitter in mental effort (10). Select key jobs. The wage rate for a job is apportioned along the identified factors. Points are assigned to each factor after prioritizing each factor in order of importance. (iii) Effort: Mental demands of a job. Degree of discretion/use of judgment. Number and nature of subordinate staff. Once the worth of a job in terms of total points is expressed. The wage rate for this job would be (15+10+12+6+4) is47.j Point method [edit] This method is widely used currently. responsibility. Degree of potential stress The educational requirements (sub factor) under the skill (key factor) may be expressed thus in the order of importance. Identify the factors common to all the identified jobs such as skill. Education and training required. all other jobs in the department are compared in terms of each factor.

etc. Employees. This is called 'job design'. novel) is such that it cannot be expressed in quantifiable numbers. There may be wide fluctuations in compensable factors in view of changes in technology. 2. Job evaluation is not exactly scientific. Preparing a manual for various jobs. 4. and the qualifications required (skills. even for the supervisors. etc.Merits and demerits [edit] The point method is a superior and widely used method of evaluating jobs. trade union leaders. Point values are assigned to all factors in a systematic way. subordinates and colleagues". functions. Michael Armstrong11 has defined job design as "the process of deciding on the contents of a job in terms of its duties and responsibilities. relationships). The methodology underlying the approach contributes to a minimum of rating error (Robbins p. This may be too taxing. on the methods to be used in carrying out the job. job analysis provides job-related data as well as the skills and knowledge required for the incumbent to perform the job. 5. The modus operandi of most of the techniques is difficult to understand. It is reliable because raters using similar criteria would get more or less similar answers.. Mathis and Jackson I2 have defined job analysis as "a process that integrates work content (tasks. is a time consuming process. It forces raters to look into all key factors and sub-factors of a job. knowledge. It accounts for differences in wage rates for various jobs on the strength of job factors. the weight of each criterion has to be established and point values must be assigned to degrees". the work methods used in its performance and how the job relates to other jobs in the organisation. 361). the rewards(extrinsic and intrinsic). degrees of factors have to be agreed upon in terms that mean the same to all rates. eliminating bias at every stage. "the key criteria must be carefully and clearly identified. Concept of job design [edit] What is job design? As we just explained. the point method is complex. especially while evaluating managerial jobs where the nature of work (varied. values and aspirations of employers. complex." . In other words. in terms of techniques. Limitations of job evaluation [edit] 1. systems and procedures. but the rating scales established under the point method remain unaffected. establishing wage rates for different grades. According to Decenzo and Robbins. thus creating grounds for dispute. and on the relationships that should exist between the job holder and his superiors. 3. The factors taken by the programme are not exhaustive. management and the programme operators may assign different weight to different factors. job design involves specifying the contents of a job. On the negative side. Jobs may change over time. A better job performance also requires deciding on sequence of job contents. abilities) for each job in a way that meets the needs of employees and organisations. Job design is a logical sequence to job analysis. fixing values for key and subfactors. A few definitions on job design are produced here with a view to help you understand the meaning of job design in a better manner.

By increasing the number of tasks an individual performs. Instead of only sorting the incoming mail by department. it increases the number of different operations required in a job and the frequency with which the job cycle is repeated. harnesses the potential of the workers in a more effective manner and thereby improves employee performance. it has done little to provide challenge or meaningfulness to a worker's activities.. Job enrichment and Job rotation.. The underlying justification being that by doing this. Now.. and responsibilities into a unit of work to achieve certain objectives". "Before I had one lousy job. duties. These subunits are then assigned to the workers as their total job. Burger King and Nirula's use simplification because employees can learn tasks rapidly. alienation. through enlargement. a mail sorter's job could be enlarged to include physically delivering the mail to the various departments or running outgoing letters through the postage meter. there are four techniques used in the design of jobs. Techniques for designing jobs [edit] Basically. These include Job simplification. On the negative side. or job diversity. The very idea is that job should be designed in such a way as to enable employees to control over the aspects of their work. Each resulting sub-unit typically consists of relatively few operations. Many fast food restaurants such as McDonald's. Job enlargement. that is. in turn. leads to lower productivity and increased cost. job enlargement increases the job scope. It increases job scope. Efforts at job enlargement have met with less than enthusiastic results. I have three!" So while job enlargement attacks the lack of diversity in overspecialised jobs. short work cycles allow task performance with little or no mental effort and low-skilled and low-paid employees can be hired and trained easily.. for instance. frustration. it can now be described as a deliberate attempt made to structure both technical and social aspects of the job to attain a fit between the individual (job holder) and the job. Job rotation [edit] .. it enhances the quality of the work life. This. Job simplification [edit] Job simplification is a design method whereby jobs are divided into smaller components and subsequently assigned to workers as whole jobs. Simplification of work requires that jobs be broken down into their smallest units and then analysed. Having gone through the above definitions of job design. Job enlargement [edit] Job enlargement expands a job horizontally. As one employee who experienced such a redesign on his job remarked.involves conscious efforts to organise tasks.Popplewell and Wildsmith13 define job design in these words: ". job simplification results in workers experiencing boredom. lack of motivation and low job satisfaction.

Job enrichment tries to embellish the job with factors that Herzberg characterised as motivators: achievement. An employee who works on a routine job moves to work on another job for some hours/days/months and returns back to the first job. Job enrichment can humanise an organisation. excellent reward schemes.' Many companies in India realised the importance of offering jobs having depth. responsibility. flexible working hours. improves the employee's skills regarding various jobs and prepares worker's selfimage and provides personal growth. . ICICI. They also believed in its future prospects. Bharat Petroleum. It helps the employer to bring about organisational changes easily. based on the assumption that in order to motivate personnel. Feeling of autonomy and personal freedom help employees view their jobs in a favourable way. HLL and Hughes Software have certain things in common: greater opportunities to grow vertically. therefore. The basic idea is to restore to jobs the elements of interest that were taken away under intensive specialisation. as currently practiced in industry. Individuals are encouraged to grow and push themselves. There is an attempt to build into jobs a higher sense of challenge and achievement. open communication. is a direct outgrowth of Herzberg's Two Factor Theory of motivation. securing employee cooperation and commitment. employee-oriented work environment. 6 Job enrichment has four unique aspects:     It changes the basic relationship between employees and their work. sharing with and learning from others etc. Jobs themselves are not actually changed. However. frequent job rotations are not advisable in view of their negative impact on the organisation and the employee. opportunities for growth. Job enrichment [edit] Job enrichment. advancement and growth. It is. This measure relieves the employee from the boredom and monotony. can be a source of employee satisfaction. Asian Paints. Interesting and challenging work. increased responsibilities. recognition. 'Individuals can experience the psychological that comes from developing new competencies and doing a job well. advancement and increased competence. only the employees are rotated among various jobs. Employees in the above companies admired their leadership for making them fell 'safe and well-led'. It changes employee behaviours in ways that gradually lead to more positive attitudes about the organisation and a better self-image. the job itself must provide opportunities for achievement recognition.Job rotation refers to the movement of an employee from one job to another. variety and meaningfulnessl to their employees long back. through vertical job loading. as studies have proved. Infosys.   Employees in the above companies displayed tremendous pride in what their company does and in its products and services. Procter & Gamble. The BT-Hewlett Associates study has clearly indicated the benefits of having such excellent practices.

function.Directing is required at all levels of organization. Continuous Activity . According to Human.Direction is a continuous activity as it continuous throughout the life of organization. and . Human behaviour is unpredictable by nature and conditioning the people’s behaviour towards the goals of the enterprise is what the executive does in this function. Leadership is "organizing a group of people to achieve a common goal". vision and values. direction is said to be all those activities which are designed to encourage the subordinates to work effectively and efficiently. organizing. overseeing and instructing people towards accomplishment of organizational goals.Direction function helps in converting plans into performance. Direction has got following characteristics: 1. ―Directing consists of process or technique by which instruction can be issued and operations can be carried out as originally planned‖ Therefore.[2] situational interaction. Directing initiates action and it is from here actual work starts. Every manager provides guidance and inspiration to his subordinates. Delegate Function . power. direction function becomes important. 2. Therefore. behavior. In simple words. 6. 3.Direction function is carried out by all managers and executives at all levels throughout the working of an enterprise. Please read motivation from pdf Leadership Leadership has been described as ―a process of social influence in which one person can enlist the aid and support of others in the accomplishment of a common task". people become inactive and physical resources are meaningless. Without this function.Direction is supposed to be a function dealing with human beings.[1] Other indepth definitions of leadership have also emerged.Directing function is related to subordinates and therefore it is related to human factor. staffing have got no importance if direction function does not take place. Directing is said to be the heart of management process. 4. Since human factor is complex and behaviour is unpredictable. Creative Activity . Direction is said to be consisting of human factors. a subordinate receives instructions from his superior only. Studies of leadership have produced theories involving traits. inspiring.Directing Function of Management DIRECTING is said to be a process in which the managers instruct. Directing is the function of guiding. Planning. Human Factor . 5. it is termed as having delicacy in it to tackle human behaviour. The leader may or may not have any formal authority. it can be described as providing guidance to workers is doing work.[3] charisma. Executive Function . In field of management. guide and oversee the performance of the workers to achieve predetermined goals. Pervasive Function .

Stogdill and Mann found that while some traits were common across a number of studies. the overall evidence suggested that persons who are leaders in one situation may not necessarily be leaders in other situations.[4] In Heroes and Hero Worship (1841). 1959[7]) prompted researchers to take a drastically different view of the driving forces behind leadership. during the 1980s statistical advances allowed researchers to conduct meta-analyses. For example. Carlyle identified the talents. whose works have prompted decades of research. Galton concluded that leadership was inherited.intelligence. in which they could quantitatively analyze and summarize the findings from a wide array of studies. however. Theories [edit] Early western history [edit] The search for the characteristics or traits of leaders has been ongoing for centuries. Most notable are the writings of Thomas Carlyle and Francis Galton. Both of these notable works lent great initial support for the notion that leadership is rooted in characteristics of the leader. Somebody whom people follow: somebody who guides or directs others.. as situational approaches (see alternative leadership theories below) posited that individuals can be effective in certain situations.g. and physical characteristics of men who rose to power. a series of qualitative reviews of these studies (e. In Galton's Hereditary Genius (1869). improvements in researchers' use of the round robin research design methodology allowed researchers to see that individuals can and do emerge as leaders across a variety of situations and tasks. Rise of alternative theories [edit] In the late 1940s and early 1950s. This idea that leadership is based on individual attributes is known as the "trait theory of leadership". In other words. Subsequently. History's greatest philosophical writings from Plato's Republic to Plutarch's Lives have explored the question "What qualities distinguish an individual as a leader?" Underlying this search was the early recognition of the importance of leadership and the assumption that leadership is rooted in the characteristics that certain individuals possess. In reviewing the extant literature. 1940. among others. leadership was no longer characterized as an enduring individual trait. Equipped with new methods. After showing that the numbers of eminent relatives dropped off when moving from first degree to second degree relatives.[6] Mann. but not others. not developed. he examined leadership qualities in the families of powerful men. 1948. Bird. This advent allowed trait theorists to create a comprehensive picture of previous leadership research rather than rely on the qualitative reviews of the past.[5] Stogdill. Reemergence of trait theory [edit] New methods and measurements were developed after these influential reviews that would ultimately reestablish the trait theory as a viable approach to the study of leadership. This approach dominated much of the leadership theory and research for the next few decades. The trait theory was explored at length in a number of works in the 19th century.[8] Additionally. skills. leaders were born. leadership researchers revealed the following: .

self-confidence and high self-esteem are useful. Zaccaro (2007)[16] noted that trait theories still: 1. its reemergence has not been accompanied by a corresponding increase in sophisticated conceptual frameworks. or by additive combinations of multiple attributes. theorists began to research leadership as a set of behaviors. to the neglect of cognitive abilities. determining a behavior taxonomy. the leader attribute pattern approach is based on theorists' arguments that the influence of individual characteristics on outcomes is best understood by considering the person as an integrated totality rather than a summation of individual variables. evaluating the behavior of successful leaders. posited that leadership takes a strong personality with a well-developed positive ego. for example.[23] .[15][17][18][19][20] In contrast to the traditional approach. and identifying broad leadership styles. do not distinguish between those leader attributes that are generally not malleable over time and those that are shaped by. the leader attribute pattern approach argues that integrated constellations or combinations of individual differences may explain substantial variance in both leader emergence and leader effectiveness beyond that explained by single attributes. 3. expertise. focus on a small set of individual attributes such as Big Five personality traits. values. Attribute pattern approach [edit] Considering the criticisms of the trait theory outlined above. perhaps even essential.[22] David McClelland.[19][21] In other words. social skills. several researchers have begun to adopt a different perspective of leader individual differences—the leader attribute pattern approach. To lead. do not consider how stable leader attributes account for the behavioral diversity necessary for effective leadership. 2. Behavioral and style theories [edit] Main article: Managerial grid model In response to the early criticisms of the trait approach. and problem-solving skills.[8] Significant relationships exist between leadership and such individual traits as:       intelligence[9] adjustment[9] extraversion[9] conscientiousness[10][11][12] openness to experience[11][13] general self-efficacy[14][15] While the trait theory of leadership has certainly regained popularity. motives.  Individuals can and do emerge as leaders across a variety of situations and tasks. 4. and bound to. fail to consider patterns or integrations of multiple attributes.[16] Specifically. situational influences.

Skinner is the father of behavior modification and developed the concept of positive reinforcement. the employee comes to work on time more often because the employee likes to be praised. providing higher performance for lower costs. The researchers evaluated the performance of groups of eleven-year-old boys under different types of work climate. and Emery Air Freight have all used reinforcement to increase productivity. Situational and contingency theories [edit] . The manager of this employee decides to praise the employee for showing up on time every day the employee actually shows up to work on time.[27] Empirical research covering the last 20 years suggests that reinforcement theory has a 17 percent increase in performance. In this example. Ronald Lipitt. This employee does not show up to work on time every day.A graphical representation of the managerial grid model Kurt Lewin. the leader exercised his influence regarding the type of group decision making. Assume praise is a positive reinforcer for a particular employee. Organizations such as Frito-Lay. 3M. As a result. based on the leaders' concern for people and their concern for goal achievement. and the management of the group tasks (project management) according to three styles: authoritarian. Goodrich. Positive reinforcement occurs when a positive stimulus is presented in response to a behavior. democratic. and Ralph White developed in 1939 the seminal work on the influence of leadership styles and performance. increasing the likelihood of that behavior in the future.F. The use of positive reinforcement is a successful and growing technique used by leaders to motivate and attain desired behaviors from subordinates. Michigan Bell. The model was developed by Robert Blake and Jane Mouton in 1964 and suggests five different leadership styles.[25] Positive reinforcement [edit] B. and laissez-faire. many reinforcement techniques such as the use of praise are inexpensive.[26] The following is an example of how positive reinforcement can be used in a business setting. In each. praise (the stimulus) is a positive reinforcer for this employee because the employee arrives at work on time (the behavior) more frequently after being praised for showing up to work on time. praise and criticism (feedback). Additionally.[24] The managerial grid model is also based on a behavioral theory.

[35] The path-goal theory of leadership was developed by Robert House (1971) and was based on the expectancy theory of Victor Vroom. academics began to normalize the descriptive models of leadership climates. Vroom-Yetton decision model. and situational leadership theory Situational theory also appeared as a reaction to the trait theory of leadership. to be effective. Both task-oriented and relationship-oriented leaders can be effective if their leadership orientation fits the situation.[36] According to House. which is sometimes classified as contingency theory. and the Hersey-Blanchard situational theory. The theory defined two types of leader: those who tend to accomplish the task by developing good relationships with the group (relationship-oriented). When there is a good leader-member relation."[29] Some theorists started to synthesize the trait and situational approaches. Herbert Spencer (1884) (and Karl Marx) said that the times produce the person and not the other way around. path–goal theory. Vroom–Yetton decision model. the situation is considered a "favorable situation". a highly structured task. is approved in periods of crisis but fails to win the "hearts and minds" of followers in day-to-day management.[34] This approach was novel because it supported the idea that the same manager could rely on different group decision making approaches depending on the attributes of each situation. theorists defined the style of leadership as contingent to the situation. This model was later referred to as situational contingency theory. finally.[33] developed a taxonomy for describing leadership situations. defining three leadership styles and identifying which situations each style works better in. The authoritarian leadership style..Main articles: Fiedler contingency model. Victor Vroom. which was used in a normative decision model where leadership styles were connected to situational variables. the essence of the theory is "the meta proposition that leaders. the laissez-faire leadership style is appreciated for the degree of freedom it provides. defining which approach was more suitable to which situation. but as the leaders do not "take charge". for example.[30] Thus. Four contingency leadership theories appear more prominently in recent years: Fiedler contingency model. This results from the interaction of leadership style and situational favorability (later called situational control). Building upon the research of Lewin et al. engage in behaviors that complement subordinates' environments and abilities in a manner that compensates for deficiencies and is instrumental to subordinate satisfaction and individual and work unit performance". "what an individual actually does when acting as a leader is in large part dependent upon characteristics of the situation in which he functions. the path-goal theory. whereas relationship-oriented leaders perform best in situations with intermediate favorability. they can be perceived as a failure in protracted or thorny organizational problems. Fiedler found that taskoriented leaders are more effective in extremely favorable or unfavorable situations. the democratic leadership style is more adequate in situations that require consensus building. no single optimal psychographic profile of a leader exists. The Fiedler contingency model bases the leader's effectiveness on what Fred Fiedler called situational contingency.[31] According to Fiedler. and high leader position power. in collaboration with Phillip Yetton (1973)[32] and later with Arthur Jago (1988). and those who have as their prime concern carrying out the task itself (task-oriented). according to this group of theories. According to the theory. Social scientists argued that history was more than the result of intervention of great men as Carlyle suggested.[37] The . there is no ideal leader.[28] This theory assumes that different situations call for different characteristics.

Consideration includes behavior involved in fostering effective relationships. This theory argues that the leader's main job is to see that whatever is necessary to group needs is taken care of.e. Morgeson (2005)). Rittman. 1962. organizing subordinate activities. traits. the path-goal model states that the four leadership behaviors are fluid. and holding subordinates accountable to those standards. that are contingent to the environment factors and follower characteristics. Kouzes & Posner. For effectiveness. 1991. setting performance standards. leadership behavior becomes a function not only of the characteristics of the leader. 2001). situational and functional) while addressing . teaching and coaching subordinates. Examples of such behavior would include showing concern for a subordinate or acting in a supportive manner towards others.theory identifies four leader behaviors. Zaccaro et al. a leader can be said to have done their job well when they have contributed to group effectiveness and cohesion (Fleishman et al. In contrast to the Fiedler contingency model. Hackman & Wageman (2005). as the theory emphasizes the reciprocity behavior between the leader and the followers. 2001). achievement-oriented. and Xiao (2006) observed five broad functions a leader performs when promoting organization's effectiveness. as it depends on the circumstances. and supportive. motivating others. Klein. 1995) is a particularly useful theory for addressing specific leader behaviors expected to contribute to organizational or unit effectiveness. Zeigert. In summarizing literature on functional leadership (see Kozlowski et al. 1986. While functional leadership theory has most often been applied to team leadership (Zaccaro. 2005. Knight. it has also been effectively applied to broader organizational leadership as well (Zaccaro. The path-goal model can be classified both as a contingency theory. This could include role clarification. In initial work identifying leader behavior. & Marks. McGrath. Hackman & Walton.. Hackman and Walton (1986). 1986). and intervening actively in the group's work. Initiating structure involves the actions of the leader focused specifically on task accomplishment. Integrated psychological theory [edit] Main article: Three Levels of Leadership model The Integrated Psychological theory of leadership is an attempt to integrate the strengths of the older theories (i. The situational leadership model proposed by Hersey and Blanchard suggests four leadership-styles and four levels of follower-development. behavioral/styles. (1996). thus. and that leaders can adopt any of the four depending on what the situation demands.[38] Functional theory [edit] Main article: Functional leadership model Functional leadership theory (Hackman & Walton. (2001). A variety of leadership behaviors are expected to facilitate these functions. participative. 1988. In this model. Fleishman (1953) observed that subordinates perceived their supervisors' behavior in terms of two broad categories referred to as consideration and initiating structure. Hackman & Wageman. directive. and as a transactional leadership theory. Adair. but of the characteristics of followers as well. the model posits that the leadership-style must match the appropriate level of follower-development. These functions include environmental monitoring.

Private and Personal leadership:   The first two – public and private leadership – are “outer” or behavioral levels. Public leadership focuses on the 34 behaviors involved in influencing two or more people simultaneously. progress and results. largely by introducing a new element – the need for leaders to develop their leadership presence. wins their trust and makes followers want to work with them.g. None of the old theories successfully address the challenge of developing “leadership presence”. motivating group purpose. leaders need to work on their inner psychology. but also to develop themselves technically and psychologically as leaders. but they are less useful for developing leaders. It also offers a foundation for leaders wanting to apply the philosophies of servant leadership and ―authentic leadership‖. inspires people. Blake & Mouton’s team style) would not suit all circumstances. (2) action. which was later categorized as an ―Integrated Psychological‖ theory on the Businessballs education website.[41] He pointed out. The third – personal leadership – is an “inner” level and concerns a person’s growth toward greater leadership presence. when in practice many find it hard to do so because of unconscious beliefs. attitude toward others and behavioral flexibility by practicing psychological mastery.[40] Scouller argued that the older theories offer only limited assistance in developing a person’s ability to lead effectively. Working on one’s personal leadership has three aspects: (1) Technical knowhow and skill (2) Developing the right attitude toward other people – which is the basis of servant leadership (3) Psychological self-mastery – the foundation for authentic leadership. An ideal style (e. building trusting relationships with followers and dissolving one’s limiting beliefs and habits. which tend to reinforce the idea that leaders are born not made. his model summarizes what leaders have to do. while remaining authentic). he argued. These dimensions are: (1) a shared. Private leadership covers the 14 behaviors needed to influence individuals one to one. The three levels in his model are Public. while staying connected to one’s core values (that is. Thus. Most of the situational/contingency and functional theories assume that leaders can change their behavior to meet differing circumstances or widen their behavioral range at will. thereby enabling behavioral flexibility as circumstances change. To support leaders’ development. that certain “something” in leaders that commands attention. he introduced a new model of the human psyche and outlined the principles and techniques of self-mastery. (3) collective unity or team spirit.[39] Integrated Psychological theory began to attract attention after the publication of James Scouller’s Three Levels of Leadership model (2011).their limitations. (4) individual selection and motivation. fears or ingrained habits. These are the behaviors that address what Scouller called “the four dimensions of leadership”. might help us select leaders. for example.[43] Transactional and transformational theories [edit] . Scouller argued that self-mastery is the key to growing one’s leadership presence. Scouller therefore proposed the Three Levels of Leadership model. not only to bring leadership to their group or organization.[42] In essence. that:     Traits theories. knowhow and skill.

competent. However. If the follower responds well. With out-group members. and adherence to the job description in exchange for a fair wage and standard benefits. good attendance. Leader–member exchange theory [edit] Main article: Leader–member exchange theory Another theory that addresses a specific aspect of the leadership process is the leader– member exchange (LMX) theory. cooperation. Similar to the transactional approach. leaders expect no more than adequate job performance. correct. and willing to assume responsibility than other followers. Idiosyncrasy Credits. and developmental experiences. commitment to the task and good performance. and faster promotions than out-group members. Out-group members [edit] Out-group members often receive less time and more distant exchanges then their in-group counterparts.[48] In-group members are also likely to build stronger bonds with their leaders by sharing the same social backgrounds and interests. advice. and train subordinates when productivity is not up to the desired level. Research shows the in-group members usually receive higher performance evaluations from the leader. and/or significant rewards and the followers reciprocate by giving the leader respect. The leader spends less time with out-group . favorable job assignments. and reward effectiveness when expected outcome is reached. LMX recognizes that leaders and individual followers will vary in the type of exchange that develops between them.Main articles: Transactional leadership and Transformational leadership Eric Berne[44] first analyzed the relations between a group and its leadership in terms of transactional analysis. reasonable respect. first posited by Edward Hollander (1971) is one example of a concept closely related to transactional leadership. It gives the opportunity to the manager to lead the group and the group agrees to follow his lead to accomplish a predetermined goal in exchange for something else. while out-group members have low-quality exchanges with the leader. In-group members are said to have highquality exchanges with the leader. which evolved from an earlier theory called the vertical dyad linkage (VDL) model.[47] In-group members [edit] In-group members are perceived by the leader as being more experienced. influence. both parties develop mutual trust. support. The transactional leader (Burns. The leader begins to rely on these individuals to help with especially challenging tasks. Both of these models focus on the interaction between leaders and individual followers. 1978)[45] is given power to perform certain tasks and reward or punish for the team's performance. Power is given to the leader to evaluate. this interaction is viewed as a fair exchange whereby the leader provides certain benefits such as task guidance. If the follower shows high commitment and effort followed by additional rewards.[46] LMX theorizes that the type of exchanges between the leader and specific followers can lead to the creation of in-groups and out-groups. higher satisfaction. the leader rewards him/her with extra coaching. and support of one another.

The leaders transmit their moods to other group members through the mechanism of emotional contagion. the ability to understand and manage moods and emotions in the self and others. The group members respond to those signals cognitively and behaviorally in ways that are reflected in the group processes. intentions. Research shows that outgroup members are less satisfied with their job and organization. they send signals to others. For example. Examples – feedback giving. the . and are more likely to file grievances or leave the organization. allocating tasks. The mood of individual group members. The affective tone of the group.[52] 2. resource distribution. with emotions entwined with the social influence process. not through the true actions of the leader himself. Group members with leaders in a positive mood experience more positive mood than do group members with leaders in a negative mood. and attitudes through their expressions of moods.members.[51] Mood contagion may be one of the psychological mechanisms by which charismatic leaders influence followers. Since employee behavior and productivity are directly affected by their emotional states. contributes to effective leadership within organizations. it is imperative to consider employee emotional responses to organizational leaders. When people experience and express mood.[51] In research about client service. Leaders shape workplace affective events. the leader's mood has some effects on his/her group. effort expenditure.[49] Emotions [edit] Leadership can be perceived as a particularly emotion-laden process. and task strategy. Groups with leaders in a positive mood have a more positive affective tone than do groups with leaders in a negative mood. her/his behavior is a source for employee positive and negative emotions at work. receive lower performance evaluations from the leader. Leaders signal their goals. see their leader as less fair.[50] In an organization. Group processes like coordination. and the leader tends to emphasize his/her formal authority to obtain compliance to leader requests. The leader creates situations and events that lead to emotional response.[53] Neo-emergent theory [edit] Main article: Functional leadership model The neo-emergent leadership theory (from the Oxford school of leadership) espouses that leadership is created through the emergence of information by the leader or other stakeholders. although in other sectors there were other findings. expressions of positive moods by leaders signal that leaders deem progress toward goals to be good. These effects can be described in three levels:[51] 1. Certain leader behaviors displayed during interactions with their employees are the sources of these affective events. Group affective tone represents the consistent or homogeneous affective reactions within a group.[54] Emotional intelligence.[51] 3. Group affective tone is an aggregate of the moods of the individual members of the group and refers to mood at the group level of analysis. In other words. they have fewer developmental experiences. Public expressions of mood impact how group members think and act. it was found that expressions of positive mood by the leader improve the performance of the group.[53] Beyond the leader's mood.

Cohen. a payment. it can be contended that the perception of all leaders is created and in fact does not reflect their true leadership qualities at all. It is the result of the philosophy. and motivating people. the Senior Vice President for Right Management’s Leadership Development Center of Excellence.[57] Engaging style [edit] Engaging as part of leadership style has been mentioned in various literature earlier. Political Style. He writes. the press. in a highly motivated and aligned team with a homogeneous level of expertise. an autocratic leadership style may be most effective. Styles [edit] Main article: Leadership styles A leadership style is a leader's style of providing direction. It is well known that the great naval hero Lord Nelson often wrote his own versions of battles he was involved in.[55] Philippe-Joseph Salazar. or leader.[59] Becoming an agile has long been associated with Engaging leaders . and experience of the leader.[60] Autocratic or authoritarian style [edit] Under the autocratic leadership style. Therefore. "these initiatives do for the organization is engage both leaders and employees in understanding the existing conditions and how they can collectively assist in addressing them. The style adopted should be the one that most effectively achieves the objectives of the group while balancing the interests of its individual members. which may be based on reality. but may also be based on a political command. blogs and other sources report their own views of a leader. L'Hyperpolitique. implementing plans. all decision-making powers are centralized in the leader.rather than leadership with a hands-off approach. Technologies politiques De La Domination[56]). In an emergency when there is little time to converge on an agreement and where a designated authority has significantly more experience or expertise than the rest of the team.[citation needed] In modern society. Stephen L. however. media. personality.[58] Engagement as the key to Collaborative Leadership is also emphasized in several original research papers and programs. has in his article Four Key Leadership Practices for Leading in Tough Times has mentioned Engagement as the fourth Key practice. Dr. Reaching out to employees during difficult times to better understand their concerns and interests by openly and honestly conveying the impact of the downturn on them and their organizations can provide a solid foundation for not only engaging them but retaining them when things do turn around. . Rhetoric specialists have also developed models for understanding leadership (Robert Hariman. a more democratic or laissez-faire style may be more effective.reproduction of information or stories form the basis of the perception of leadership by the majority. Different situations call for different leadership styles. as with dictators. or an inherent interest of the author. so that when he arrived home in England he would receive a true hero's welcome.

leaving the group to fend for itself. Narcissistic leadership [edit] Main article: Narcissistic leadership Narcissistic leadership is a leadership style in which the leader is only interested in him/herself. It is a common leadership style.[63] Relationship-oriented leaders emphasize . The subordinates are motivated to be creative and innovative. This has also been called shared leadership. and who abuses the leader–follower relationship by leaving the group or organization in a worse-off condition than when he/she joined it. dominance and hostility. Task-oriented and relationship-oriented leadership [edit] Main article: Task-oriented and relationship-oriented leadership Task-oriented leadership is a style in which the leader is focused on the tasks that need to be performed in order to meet a certain production goal. It permits quick decision-making. and a personal egotistic need for power and admiration. The autocratic management has been successful as it provides strong motivation to the manager.[57] Participative or democratic style [edit] The democratic leadership style consists of the leader sharing the decision-making abilities with group members by promoting the interests of the group members and by practicing social equality. Their priority is themselves . "narcissistic leadership (preferably destructive) is driven by unyielding arrogance. results and reaching target outcomes. Laissez-faire or free-rein style [edit] A person may be in a leadership position without providing leadership. strictly making sure these deadlines are met.at the expense of their people/group members."[61] Toxic leadership [edit] Main article: Toxic leader A toxic leader is someone who has responsibility over a group of people or an organization. This leader exhibits the characteristics of a narcissist: arrogance. Subordinates are given a free hand in deciding their own policies and methods. as only one person decides for the whole group and keeps each decision to him/herself until he/she feels it needs to be shared with the rest of the group. self-absorption.Leaders do not entertain any suggestions or initiatives from subordinates. Task-oriented leaders are generally more concerned with producing a step-by-step solution for given problem or goal. The narcissism may range from anywhere between healthy and destructive. To critics.[62] Relationship-oriented leadership is a contrasting style in which the leader is more focused on the relationships amongst the group and is generally more concerned with the overall wellbeing and satisfaction of group members.

men are primarily task-oriented.communication within the group. shows trust and confidence in group members. decision focused. maintaining eye contact and respond tactfully to others’ comments. identifying roles.[62] Relationship-oriented leaders are focused on developing the team and the relationships in it. They give advice. They tend to place more focus on initiating structure within the group. To facilitate successful performance it is important to understand and accurately measure leadership performance.[64] Performance [edit] In the past. They are task-oriented. the emphasis on relations as opposed to getting a job done might make productivity suffer. offer assurances. The positives to having this kind of environment are that team members are more motivated and have support. however. understanding. Hogan. yet their group members' well-being may suffer. and mindful of others' feelings. warm in relation to others. and manage conflicts in an attempt to maintain positive relationships among group members.[62] Sex differences in leadership behavior [edit] This section relies largely or entirely upon a single source. Women. however. As leaders. defining responsibilities and standard operating procedures. monitoring compliance with procedures. & Craig. they emphasize their open. fair. proposing solutions to problems. responsible. and shows appreciation for work done. and pleasant communal qualities. setting standards and objectives. Kaiser. they typically are able to make sure that deadlines are met. In general. it is largely recognized and accepted by practitioners and researchers that leadership is important. When men and women come together in groups. and research supports the notion that leaders do contribute to key organizational outcomes (Day & Lord. it is important to note that these sex differences are only tendencies. 1987). conversely. Men generally assume an agentic leadership style. but women tend to be both task. powerful and proficient at the task that needs to be done. Task-oriented leaders are typically less concerned with the idea of catering to group members. Despite these assertions. and finally.and relationship-oriented. (February 2013) Another factor that covaries with leadership style is whether the person is male or female. 1988. . independent and goal oriented. For this reason. are generally more communal when they assume a leadership position. and do not manifest themselves within men and women across all groups and situations. some researchers have argued that the actual influence of leaders on organizational outcomes is overrated and romanticized as a result of biased attributions about leaders (Meindl & Ehrlich. Men. describe themselves as influential. they strive to be helpful towards others. emphasizing the need for productivity and efficiency in the work that needs to be done. they tend to adopt different leadership styles. Women connect more positively to group members by smiling. on the other hand. Please help improve this article by introducing citations to additional sources. active. 2008). when women are asked to describe themselves to others in newly formed groups. Relevant discussion may be found on the talk page. and more concerned with acquiring a certain solution to meet a production goal. However.

energy. Howell. Many distinct conceptualizations are often lumped together under the umbrella of leadership performance. Individuals with these traits are able to formulate solutions to difficult problems. and sometimes dominance. consistent. such traits include intelligence. Sociability describes individuals who are friendly. masculinity. Each of these measures can be considered conceptually distinct. and not deceptive. There is no consistent. work well under stress or deadlines. and often are very competitive with others. and interpersonally competent. What scholars have been able to arrive at is that leadership traits of an individual do not change from situation to situation. emotional stability. tactful. business professor at New Mexico State University and author of the book Snapshots of Great Leadership. Years of observation and study have indicated that one such trait or a set of traits does not make an extraordinary leader. For instance. each key trait may be applied to situations differently. they also have the ability to project this self-confidence onto others. analytical and verbal ability. 2008). or physical attractiveness. behavioral flexibility. demonstrated by their ability to adapt to their continuously changing environments. Integrity is demonstrated in individuals who are truthful. they are different outcomes and their inclusion should depend on the applied or research focus. Current studies have indicated that leadership is much more complex and cannot be boiled down to a few key traits of an individual. leadership was one of the dimensions that he identified. extroverted. It is often said that these leaders keep their word and are honest and open with their cohorts. 1990). 2006). trustworthy. leadership performance may be used to refer to the career success of the individual leader. principled.[65] However. not made. use diplomatic measures to solve issues. and leader emergence (Kaiser et al. Such a trait enables leaders to be accepted well by the public. flexible. assertiveness. assertiveness.. building their trust and commitment. People with these traits often tend to wholeheartedly pursue their goals. According to Howell. While these aspects may be related. and create well-thought-out plans for the future. Howell provides examples of Steve Jobs and Abraham Lincoln as encompassing the traits of determination and drive as well as possessing cognitive capacity. are ambitious. as well as hold the ability to adapt their social persona to the situation at hand. Determination and drive include traits such as initiative. performance of the group or organization. Mother Teresa is an exceptional example that embodies integrity. Cognitive capacity includes intelligence. loyal. Individuals that are self-confident do not doubt themselves or their abilities and decisions. depending on the circumstances.[65] .Job performance generally refers to behavior that is expected to contribute to organizational success (Campbell.[65] Self-confidence encompasses the traits of high self-esteem. and social abilities in her diplomatic dealings with the leaders of the world. Leadership traits [edit] Most theories in the 20th century argued that great leaders were born. assertiveness. assertiveness. leader advancement. perseverance. and good judgment. overall definition of leadership performance (Yukl. dependent. work long hours. adapt to changing situations. and self-assurance. or even leader emergence. Leaders with integrity often share these values with their followers. The following summarizes the main leadership traits found in research by Jon P. including outcomes such as leader effectiveness. as this trait is mainly an ethics issue. Campbell identified a number of specific types of performance dimensions.

Divisions. Their objectives and goals may or may not coincide with those of the formal organization. humanity was preoccupied with personal security. maintenance. The informal organization represents an extension of the social structures that generally characterize human life — the spontaneous emergence of groups and organizations as ends in themselves.[66] Contexts [edit] Organizations [edit] An organization that is established as an instrument or means for achieving defined objectives has been referred to as a formal organization. and Kari Granger who describe leadership as ―an exercise in language that results in the realization of a future that wasn’t going to happen anyway. which future fulfills (or contributes to fulfilling) the concerns of the relevant parties…‖. leaders. According to Weber's definition. entry and subsequent advancement is by merit or seniority. or unofficial. Its design specifies how goals are subdivided and reflected in subdivisions of the organization. Jensen. The higher one's position in the hierarchy. departments. This definition ensures that leadership is talking about the future and includes the fundamental concerns of the relevant parties. The ontological–phenomenological model for leadership [edit] One of the more recent definitions of leadership comes from Werner Erhard. Thus. protection. a leader emerges within the context of the informal organization that underlies the formal structure. The need to identify with a community that provides security. Michael C. and survival. jobs.[68][69] . Employees receive a salary and enjoy a degree of tenure that safeguards them from the arbitrary influence of superiors or of powerful clients. Now humanity spends a major portion of waking hours working for organizations. the greater one's presumed expertise in adjudicating problems that may arise in the course of the work carried out at lower levels of the organization. This need is met by the informal organization and its emergent. maintenance. positions. Steve Zaffron. Rather. protection. It is this bureaucratic structure that forms the basis for the appointment of heads or chiefs of administrative subdivisions in the organization and endows them with the authority attached to their position.Few great leaders encompass all of the traits listed above. This differs from relating to the relevant parties as ―followers‖ and calling up an image of a single leader with others following. a future that fulfills on the fundamental concerns of the relevant parties indicates the future that wasn’t going to happen is not the ―idea of the leader‖. and a feeling of belonging has continued unchanged from prehistoric times. but rather is what emerges from digging deep to find the underlying concerns of those who are impacted by the leadership. In prehistoric times. sections. the formal organization is expected to behave impersonally in regard to relationships with clients or with its members. The informal organization expresses the personal objectives and goals of the individual membership. and tasks make up this work structure. but many have the ability to apply a number of them to succeed as front-runners of their organization or situation.[67] In contrast to the appointed head or chief of an administrative unit.

Debate is fairly common about whether the use of these terms should be restricted. a manager may be confronted by an emergent leader who can challenge her/his role in the organization and reduce it to that of a figurehead. or downsizing. tenacity. she or he must possess adequate personal attributes to match this authority. in the organizational context. It is not dependent on title or formal authority. Power is a stronger form of influence because it reflects a person's ability to enforce action through the control of a means of punishment. In some situations. Additionally.[71] Management [edit] Over the years the philosophical terminology of "management" and "leadership" have.g. contingent reward. because authority is only potentially available to him/her. Instead of the authority of position held by an appointed head or chief. management by exception) and "transformational" leadership (characterized by e. Bennis. some organizations have adopted group leadership. (Elevos. clear communication. Good leaders use their own inner mentors to energize their team and organizations and lead a team to achieve success. it energizes staff and feeds the cycle of success. However. and a commitment to persist.[70] An individual who is appointed to a managerial position has the right to command and enforce obedience by virtue of the authority of their position.[73] . creativity). emphasis on procedures. and Leadership Presence. Some organizations have taken this approach in hopes of increasing creativity. and synergistic communication skills will bring out the same qualities in their groups. reducing costs." Leaders are recognized by their capacity for caring for others. Their personal qualities.Leaders emerge from within the structure of the informal organization. Influence is the ability of a person to gain co-operation from others by means of persuasion or control over rewards. In this situation. with commensurate authority. determination. the emergent leader wields influence or power.g. It follows that whoever wields personal influence and power can legitimize this only by gaining a formal position in the hierarchy. Others may see the traditional leadership of a boss as costing too much in team performance.[68] Leadership can be defined as one's ability to get others to willingly follow. been used both as synonyms and with clearly differentiated meanings. In the absence of sufficient personal competence. only authority of position has the backing of formal sanctions. as each team member has the opportunity to experience the elevated level of empowerment.) Ogbonnia (2007) defines an effective leader "as an individual with the capacity to consistently succeed in a given condition and be viewed as meeting the expectations of an organization or society. paraphrased from Leaders. personal relationships. Every organization needs leaders at every level. or a combination of these and other factors attract followers who accept their leadership within one or several overlay structures. charisma. more than one person provides direction to the group as a whole. Halpern & Lubar. the demands of the situation.[68] A leader is a person who influences a group of people towards a specific result. and generally reflects an awareness of the distinction made by Burns (1978) between "transactional" leadership (characterized by e.[72] Leaders who demonstrate persistence.[45] Group leadership [edit] In contrast to individual leadership. However. the team members best able to handle any given phase of the project become the temporary leaders.

in Demonic Males: Apes and the Origins of Human Violence. Ten characteristics of well-functioning teams:           Purpose: Members proudly share a sense of why the team exists and are invested in accomplishing its mission and goals. etc. present evidence that only humans and chimpanzees. Success: Members know clearly when the team has met with success and share in this equally and proudly. territoriality. Many animals beyond apes are territorial. Personal traits: members feel their unique personalities are appreciated and well utilized.[77] This position is contentious. wolves. compete. Members must have a chance to contribute. suggesting Wrangham and Peterson's evidence is not empirical. There must be interpersonal relationship. and learn from and work with others. The members must have the ability to act together toward a common goal. Roles: Members know their roles in getting tasks done and when to allow a more skillful member to do a certain task. and have a social structure controlled by a dominant male (lions. among all the animals living on Earth. by whom. Decisions: Authority and decision-making lines are clearly understood. Priorities: Members know what needs to be done next. Effectiveness: Members find team meetings efficient and productive and look forward to this time together.). Conflict: Conflict is dealt with openly and is considered important to decision-making and personal growth. exhibit violence. They suggest that leadership has a long evolutionary history and that the same mechanisms underpinning leadership in humans can be found in other social species. too. share a similar tendency for a cluster of behaviors: violence.[75] Primates [edit] Mark van Vugt and Anjana Ahuja in Naturally Selected: The Evolutionary Science of Leadership present evidence of leadership in nonhuman animals. rather than an external act. and by when to achieve team goals. from ants and bees to baboons and chimpanzees. Self-leadership [edit] Self-leadership is a process that occurs within an individual. and competition for uniting behind the one chief male of the land. However. It is an expression of who we are as people.[76] Richard Wrangham and Dale Peterson.According to the National School Boards Association (USA):[74] These Group Leaderships or Leadership Teams have specific characteristics: Characteristics of a Team    There must be an awareness of unity on the part of all its members. we must examine other . Norms: Group norms for working together are set and seen as standards for every one in the groups. Training: Opportunities for feedback and updating skills are provided and taken advantage of by team members.

with the support of her coalition of other females. When one has all five virtues together. Dependence on the strength of courage results in violence. In the autocratic/paternalistic strain of thought. then one can be a leader. bonobos. Please help improve this article by adding citations to reliable sources. which is sometimes associated with matriarchies. then among the bonobos. a female almost always exerts the strongest and most effective leadership. not all scientists agree on the allegedly peaceful nature of the bonobo or its reputation as a "hippie chimp". buttressed by a tradition of filial piety. Feminist thinking. The bonobos show deference to an alpha or top-ranking female that.[2] Historical views [edit] This section needs additional citations for verification. Contrariwise. meerkats (who are likewise matriarchal). Defining characteristics of the ten types of leaders are explained with examples from history and mythology. on the other hand. Leadership is a matter of intelligence.) One response to this denial of élitism came with Leninism. Excessive discipline and sternness in command result in cruelty. Fixation on trust results in folly. Thus. (September 2009) Sanskrit literature identifies ten types of leaders. the views of Confucianism on "right living" relate very much to the ideal of the (male) scholar-leader and his benevolent rule. responsive. and consensual empathetic guidance. However. may object to such models as patriarchal and posit against them emotionally-attuned. (Note that the Oxford English Dictionary traces the word "leadership" in English only as far back as the 19th century. Monarchy takes an extreme view of the same idea. . including elephants (which are matriarchal and follow an alpha female). traditionalists recall the role of leadership of the Roman pater familias. which demanded an élite group of disciplined cadres to act as the vanguard of a socialist revolution. if leadership amounts to getting the greatest number of followers.species as well. Comparable to the Roman tradition. more democratically-inclined theorists have pointed to examples of meritocratic leaders. Reliance on intelligence alone results in rebelliousness. Unsourced material may be challenged and removed. bringing into existence the dictatorship of the proletariat. and many others.[78] Aristocratic thinkers have postulated that leadership depends on one's "blue blood" or genes. can prove as strong as the strongest male. trustworthiness. Exercise of humaneness alone results in weakness. and may prop up its assertions against the claims of mere aristocrats by invoking divine sanction (see the divine right of kings). By comparison. — Sun Tzu[79] In the 19th century. . each appropriate to its function. such as the Napoleonic marshals profiting from careers open to talent. . and discipline . the elaboration of anarchist thought called the whole concept of leadership into question. courage. the second-closest species-relatives of humans. humaneness. do not unite behind the chief male of the land.

[83] Moreover. However. The doctrines of Caesaro-papism have recurred and had their detractors over several centuries. coercion. it is a power with people that exists as a reciprocal relationship between a leader and his/her followers (Forsyth. court judge). (1988). extraversion.g. and domination to influence others is not a requirement for leadership. concerning leadership often interferes with individuals’ conception of what leadership is all about (Gardner. Pol Pot.[80][81] Leadership is innate [edit] According to some.[84] creativity.. 2009). Over the years. leadership is determined by distinctive dispositional characteristics present at birth (e.[87] Leaders entirely control group outcomes [edit] .[82] Thus. Leaders sometimes focus on fulfilling their own agendas at the expense of others. but usually do so through negative means. including his/her own followers (e. Leaders are positively influential [edit] The validity of the assertion that groups flourish when guided by effective leaders can be illustrated using several examples. Leadership myths [edit] Leadership. the difference leaders make is not always positive in nature. Josef Stalin). innate talents) as well as nurture (i. acquired skills). it has been documented that group performance. or myths. individuals who seek group consent and strive to act in the best interests of others can also become effective leaders (e. the use of manipulation. compare the concept of the statesperson. However. In actuality. 1975).[82] Despite popular belief. effective leadership can result from nature (i. many researchers have stressed the prevalence of this misunderstanding. it is not demarcated by power over people – rather. For instance. although largely talked about.[85] and efficiency[86] all tend to climb in businesses with designated managers or CEOs. the bystander effect (failure to respond or offer assistance) that tends to develop within groups faced with an emergency is significantly reduced in groups guided by a leader.g. stating that the existence of several flawed assumptions. Leaders who focus on personal gain by employing stringent and manipulative leadership styles often make a difference. ingenuity).. For a more general take on leadership in politics.e. intelligence.. 1965. according to Forsyth (2009) there is evidence to show that leadership also develops through hard work and careful observation.. Compare servant leadership.Other historical views of leadership have addressed the seeming contrasts between secular and religious leadership. according to Baumeister et al.e.g. Leadership is possessing power over others [edit] Although leadership is certainly a form of power. Bennis.. Christian thinking on leadership has often emphasized stewardship of divinely-provided resources—human and material—and their deployment in accordance with a Divine plan. class president. has been described as one of the least understood concepts across all cultures and civilizations.

most people appreciate the contributions that leaders make to their groups and consequently welcome the guidance of a leader (Stewart & Manz. Although common. communication patterns among members. Leadership of people in these environments requires a different set of skills to that of front line management.[88] For example.[92] This "need for a leader" becomes especially strong in troubled groups that are experiencing some sort of conflict. Groups that are primarily composed of women. Although individuals filling leadership roles can be a direct source of resentment for followers. 1995). or rescuing a person from a potentially hazardous environment. pub quiz/trivia teams) often undergo a diffusion of responsibility. where leadership tasks and roles are shared amongst members (Schmid Mast. Group members tend to be more contented and productive when they have a leader to guide them. the nature or orientation of the work. These leaders must effectively operate remotely and negotiate the needs of the individual. leading a team on an outdoor expedition.g.. Unsourced material may be challenged and removed. Group members resist leaders [edit] Although research has indicated that group members’ dependence on group leaders can lead to reduced self-reliance and overall group strength. (September 2009) One approach to team leadership examines action-oriented environments. team. Berdahl & Anderson. Guastello. 1953). For this reason.[89][90] are limited in size.[91] or only exist for a short period of time (e. Please help improve this section by adding citations to reliable sources.In Western cultures it is generally assumed that group leaders make all the difference when it comes to group influence and overall goal-attainment. the tendency to overestimate the degree of control leaders have over their groups and their groups’ outcomes) ignores the existence of many other factors that influence group dynamics. group cohesion. In other words. are free from stressful decisionmaking. locating a missing person.e. there is leadership of small groups often created to respond to a situation or critical incident. 2007.. as well as behavioral norms and established standards influence group functionality in varying capacities.[93] Action-oriented environments [edit] This section does not cite any references or sources. This has been termed action oriented leadership. individual personality traits. In most cases these teams are tasked to operate in remote and changeable environments with limited support or backup (action environments).[82] most people actually prefer to be led than to be without a leader (Berkowitz. where effective functional leadership is required to achieve critical or reactive tasks by small teams deployed into the field. . it is unwarranted to assume that all leaders are in complete control of their groups' achievements. group context. this romanticized view of leadership (i. Some examples of demonstrations of action oriented leadership include extinguishing a rural fire. All groups have a designated leader [edit] Despite preconceived notions. student work groups. 2002. 2007). not all groups need have a designated leader. and task within a changeable environment.

but existing titles and labels ("King". While the conventional view of leadership is rather satisfying to people who "want to be told what to do". No cleanup reason has been specified. or downright inaccurate in some circumstances.Titles emphasizing authority [edit] This section does not cite any references or sources. "President". Please help improve this section if you can. Similarly.. (September 2009) This section may require cleanup to meet Wikipedia's quality standards. various historical calamities are attributed to a misplaced reliance on the principle of leadership. etc. "Emperor". which stress individual responsibility and/or group authority in the work place and elsewhere by focusing on the skills and attitudes that a person needs in general rather than separating out leadership as the basis of a special class of individuals. Critical thought [edit] Noam Chomsky[94] and others[95] have brought critical thinking to the very concept of leadership and have provided an analysis that asserts that people abrogate their responsibility to think and will actions for themselves. Please help improve this section by adding citations to reliable sources. and so on) often seemed inappropriate. common civic virtue. In the course of the 18th to 20th centuries. They or their systems often expressed a belief in strong individual leadership. The definite article when used as part of the title (in languages that use definite articles) emphasizes the existence of a sole "true" leader. and order of precedence for links to various systems. Thus a knight led fewer men in general than did a duke. See peerage for a systematization of this hierarchy. a baronet might in theory control less land than an earl. insufficient. (February 2010) At certain stages in their development. employeeship. several political operators took non-traditional paths to become dominant in their societies. these critics say that one should question why they are being subjected to a will or intellect other than their own if the leader is not a Subject Matter Expert (SME). The formal or informal titles or descriptions they or their subordinates employ express and foster a general veneration for leadership of the inspired and autocratic variety. the hierarchies of social ranks implied different degrees or ranks of leadership in society. Unsourced material may be challenged and removed. The fundamentally anti-democratic nature of the leadership principle is challenged by the introduction of concepts such as autogestion. Varieties of individual power [edit] Main article: Power (social and political) .

Coercive Power is the manager's ability to punish an employee. abilities. Punishment can be mild. A manager who has this power within the organization may be a very valuable and important manager in the company. The successful leader effectively uses these powers to influence employees. Control in management means setting standards.g. Reward Power is the power given to managers that attain administrative power over a range of rewards (such as raises and promotions). such as president of the company. Manager. such as termination. Information Power is gained by a person who has possession of important information at an important time when such information is needed to organizational functioning. have higher power than the rest of the professional positions in the hierarchical executive levels. A person who has power by association is often referred to as an assistant or deputy. Vice President. Montana and Bruce H. and it is important for leaders to understand the uses of power to strengthen their leadership. Expert Power is attained by the manager due to his or her own talents such as skills. It is an important function because it helps to check the errors and to take the corrective action so that deviation from standards are minimized and stated goals of the organization are achieved in a desired manner. These levels of power correspond to the hierarchical executive levels within the organization itself. Supervisor. Employees who work for managers desire the reward from the manager and will be influenced by receiving it as a result of work performance. . the ability to attain these unique powers is what enables leadership to influence subordinates and peers by controlling organizational resources. control is a foreseeing action whereas earlier concept of control was used only when errors were detected. Charnov. The authors distinguish the following types of organizational power:  Legitimate Power refers to the different types of professional positions within an organization structure that inherit such power (e. and create the opportunity for interpersonal influence. According to modern concepts. The higher positions. organizing. measuring actual performance and taking corrective action. etc. such as a suspension. Charisma Power: a manager who has charisma will have a positive influence on workers. Director. or previous experience. knowledge. Referent Power is a power that is gained by association. staffing and directing.).[96]       Controlling Controlling is one of the managerial functions like planning. or serious.According to Patrick J.

Each party organizes a campaign to get its candidate selected and outlines a plan to inform the public about both the candidate's credentials and the party's platform. certain adjustments in strategy and/or tactics can be made in an attempt to achieve the desired result. The degree to which they interact depends on the nature of the operating system and its objectives. As the election nears. According to Stafford Beer: Management is the profession of control. or objectives in order to determine whether performance is in line with these standards and presumably in order to take any remedial action required to see that human and other corporate resources are being used in the most effective and efficient way possible in achieving corporate objectives. or to maintain variations from system objectives within allowable limits".[2] Also control can be defined as "that function of the system that adjusts operations as needed to achieve the plan. Rapidity of response pertains to the speed with which a system can correct variations and return to expected output. the orders which have been given. opinion polls furnish feedback about the effectiveness of the campaign and about each candidate's chances to win. Stability concerns a system's ability to maintain a pattern of output without wide fluctuations.[3] A political election can illustrate the concept of control and the importance of feedback. with a view to ensure adequate progress and satisfactory performance. From these definitions it can be stated that there is close link between planning and controlling. Its object is to point out mistakes in order that they may be rectified and prevented from recurring. Planning is a process by which an organisation's objectives and the methods to . plans.Definitions [edit] In 1916. Robert J. and the principles which have been laid down. Depending on the nature of this feedback. The control subsystem functions in close harmony with the operating system. Henri Fayol formulated one of the first definitions of control as it pertains to management: Control of an undertaking consists of seeing that everything is being carried out in accordance with the plan which has been adopted.[1] According to EFL Breach: Control is checking current performance against per-determined standards contained in the plans. Mockler presented a more comprehensive definition of managerial control: Management control can be defined as a systematic effort by business management to compare performance to predetermined standards. According to Harold Koontz: Controlling is the measurement and correction of performance in order to make sure that enterprise objectives and the plans devised to attain them are accomplished.

Some deviation from plan is usual and expected. and controlling is a process which measures and directs the actual performance against the planned goals of the organisation. For example. In an elementary school system. the sensor. is a means for measuring the characteristic or condition. corrective action is required. 3. or control. 2. We select a specific characteristic because a correlation exists between it and how the system is performing. . 4. the hours a teacher works or the gain in knowledge demonstrated by the students on a national examination are examples of characteristics that may be selected for measurement. the managerial function of management and correction of performance in order to make sure that enterprise objectives and the goals devised to attain them being accomplished. It involves a sort of preventative action which indicates that good control is being achieved. and in a quality-control system this measurement might be performed by a visual inspection of the product. goals and objectives are often referred to as siamese twins of management. The third element of control. The characteristic can be the output of the system during any stage of processing or it may be a condition that is the result of the system.[3] The first element is the characteristic or condition of the operating system which is to be measured.achieve the objectives are established. the comparator. The second element of control. For example. but when variations are beyond those considered acceptable. determines the need for correction by comparing what is occurring with what has been planned. it may be the heat energy produced by the furnace or the temperature in the room which has changed because of the heat generated by the furnace. Thus. in a home heating system this device would be the thermostat. Characteristics [edit]         Control is a continuous process Control is a management process Control is embedded in each level of organizational hierarchy Control is forward looking Control is closely linked with planning Control is a tool for achieving organizational activities Control is an end process Control compares actual performance with planned performance Elements [edit] The four basic elements in a control system: 1. the characteristic or condition to be controlled the sensor the comparator the activator occur in the same sequence and maintain a consistent relationship to each other in every system.

however. the choice of the controlled item (and appropriate information about it) is extremely important. the relative ease of translation may be a significant factor in selecting the units of measurement or the language unit in the sensing element. the norms of acceptable behavior become the standard against which socalled deviant behavior may be judged. The actual person. Using machine methods (computers) may require extensive translation of the information. but very slowly. should be expressed in the same terms or language as in the original plan to facilitate decision making. the measurement may be sampled rather than providing a complete and continuous feedback of information about the operation. the standards outlined by a formal law can be changed from one day to the next through revision.[4] Relationship between the elements of control and information [edit] Controlled characteristic or condition [edit] The primary requirement of a control system is that it maintain the level and kind of output necessary to achieve the system's objectives. an employee directed to rework the parts that failed to pass quality inspection. or plan. Regulations and laws provide a more formal collection of information for society. Information that is to be compared with the standard. or method used to direct corrective inputs into the operating system may take a variety of forms. There should be a direct correlation between the controlled item and the system's operation. let us review the elements of control in the context of information. because the flow of sensory data and later the flow of corrective information allow a characteristic or condition of the system to be controlled. information pertinent to control is fed back. To illustrate how information flow facilitates control. is the corrective action taken to return the system to expected output. It may be a hydraulic controller positioned by a solenoid or electric motor in response to an electronic error signal.[2] Comparison with standard [edit] In a social system. or measured. Output information is compared with the standard or . Sensor [edit] After the characteristic is sensed. Since optimal languages for computation and for human review are not always the same. As long as a plan is performed within allowable limits. corrective action is not necessary. device. the activator. In contrast. this seldom occurs in practice. or a school principal who decides to buy additional books to provide for an increased number of students. Information about deviant behavior becomes the basis for controlling social activity. or replacement by another. control of the selected characteristic should have a direct relationship to the goal or objective of the system. In many instances. discontinuation.The fourth element of control. In other words. Information is the medium of control. Therefore. Exactly what information needs to be transmitted and also the language that will best facilitate the communication process and reduce the possibility of distortion in transmission must be carefully considered.[5] It is usually impractical to control every feature and condition associated with the system's output. A sampling procedure suggests measuring some segment or portion of the operation that will represent the total. Social norms change.

For example. frequency distribution (a tabulation of the number of times a given characteristic occurs within the sample of products being checked) may be used to show the average quality. although at least some of the elements must be in close proximity to operations. Comparing actual performance with standards. the system is "out of control. When the control relates to a man-to-machine or man-to-man system. and the landing gear of the airplane goes up or down. For example.norm and significant deviations are noted. However. It takes but a small amount of control energy to release or stop large quantities of input. Measurement of actual performance. Either the objectives must be reevaluated or the system redesigned to add new capacity or capability. the measurement (the sensory element) is usually at the point of operations. and a ribbon of white-hot steel races through the plant. the traffic in drugs has been increasing in some cities at an alarming rate. The pilot presses a button. Taking correcting deviations. Once the decision has been made to direct new inputs into the system. A small amount of energy can change the operation of jet airplanes. Process [edit]      Setting performance standards. the actual process may be relatively easy. and (3) what corrective inputs will restore the system to a reasonable degree of stability.[4] The comparator may be located far from the operating system. If there is a significant and uncorrectable difference between output and plan. the correcting input can be released from the distant point. Implimentor [edit] The activator unit responds to the information received from the comparator and initiates corrective action. Kinds [edit] . If the system is a machine-to-machine system. a worker at a control board directs the flow of electrical energy throughout a regional network of stations and substations. the individual(s) in charge must evaluate (1) the accuracy of the feedback information. and hydroelectric power plants." This means that the objectives of the system are not feasible in relation to the capabilities of the present design. automatic steel mills. The measurement information can be transmitted to a distant point for comparison with the standard (comparator). (2) the significance of the variation. Analysing deviations. This ability to control from afar means that aircraft can be flown by remote control. or whether to modify the law to reflect a different norm of acceptable behavior. dangerous manufacturing processes can be operated from a safe distance. the operator of a steel mill pushes a lever. The citizens must decide whether to revise the police system so as to regain control. however. In an industrial example. the corrective inputs (decision rules) are designed into the network. and national organizations can be directed from centralized headquarters. the spread. and the comparison of output with a standard. and when deviations occur. the input (activator) will be located at the operating system.

that the timing mechanism is an independent unit and is not measuring the objective function of the lighting system. An essential part of a closed-loop system is feedback. the relationship of control to the decision process (organizational or operational control). Note. If the lights should be needed on a dark. Open. In general. that is.or closed-loop control) 2.Control may be grouped according to three general classifications:[3] 1. The automatic system is highly structured. Corrective properties may sometimes be built into the controller (for example. the sensing. or adjustment may be made through action taken by an individual who is not part of the system. if it is to achieve a predetermined goal. the kind of components included in the design (man or machine control systems) 3. When even a small variation from the standard occurs. When the room temperature drops below the desired point. the lights may be turned on by someone who happens to pass by and recognizes the need for additional light. designed to accept certain kinds of input and produce specific output. to modify the time the lights are turned on as the days grow shorter or longer). the characteristic to be controlled might be some variable like speed or temperature. which use feedback. If control is exercised as a result of the operation rather than because of outside or predetermined arrangements. comparison. At a certain time each evening. the correction process begins. An expectation of precision exists because the characteristic is quantifiable and the standard and the normal variation to be expected can be described in exact terms. The significant difference between this type of system and an open-loop system is that the control device is an element of the system it serves and measures the performance of the system. it is a closed-loop system. inputs of information are used in a process of continual adjustment to achieve output specifications. and the input is modified to reduce any difference or error toward zero. however. stormy day the timing device would not recognize this need and therefore would not activate energy inputs. The furnace-activating circuit is turned off as the temperature reaches the preselected level. the nature of the information flow designed into the system (open. In another instance. must have available to it at all times an indication of its degree of attainment. In automatic machine systems. and programmed to regulate the transformation of inputs within a narrow range of variation. Many of the patterns of information flow in organizations are found to have the nature of closed loops. The home thermostat is the classic example of a control device in a closed-loop system. all four control elements are integral to the specific system. the control mechanism closes the circuit to start the furnace and the temperature rises. In other words. a mechanical device closes the circuit and energy flows through the electric lines to light the lamps. For example.[6] . For example. the output of the system is measured continually through the item controlled.[3] Man and machine control [edit] The elements of control are easy to identify in machine systems. but this would not close the loop. and the sensing device could be a speedometer or a thermometer.and closed-loop control [edit] A street-lighting system controlled by a timing device is an example of an open-loop system. The reason for such a condition is apparent when one recognizes that any system. every goal-seeking system employs feedback.

For an illustration of mechanical control: as the load on a steam engine increases and the engine starts to slow down. Machine systems can be complex because of the sophisticated technology. writers have tended to differentiate the control process between that which emphasizes the nature of the organizational or systems design and that which deals with daily operations. A citizen may not know or understand the law and consequently would not know whether or not he was guilty of a violation. and energy. This type of mechanical control is crude in comparison to the more sophisticated electronic control systems in everyday use. we "evaluate" the performance of a system to see how effective and efficient the design proved to be or to discover why it failed. he must intercede and assume direct control. the elements of feedback are present.[6] The speed limit established for freeway driving is one standard of performance that is quantifiable. the measurement of the characteristic may be extremely subjective. In human control systems. Machines such as computers are incapable of making exceptions from the specified control criteria regardless of how much a particular case might warrant special consideration. This new input returns the engine to the desired number of revolutions per minute. the relationship between objectives and associated characteristics is often vague. which establish the general standards for economic. and "hierarchical authority". In both instances. court hearings and trials (comparison with standard). let us refer once more to a formalized social system in which deviant behavior is controlled through a process of observed violation of the existing law (sensing). whereas control of people is complex because the elements of control are difficult to determine. Consider the complex missileguidance systems that measure the actual course according to predetermined mathematical calculations and make almost instantaneous corrections to direct the missile to its target. To illustrate the difference. but organizational control tends to review and evaluate the . or possible collision with another plane. Most organized systems are some combination of man and machine. "closeness of supervision". we operate and "control" the system with respect to the daily inputs of material. some standards may be precisely structured whereas others may be little more than general guidelines with wide variations expected in output. but even in this instance. the degree of permissible variation and the amount of the actual variation are often a subject of disagreement between the patrolman and the suspected violator. Associated with this theory are such concepts as "span of control". In contrast. incarceration when the accused is found guilty (correction). and the amount of new inputs required is impossible to quantify. The complexity of our society is reflected in many of our laws and regulations. information. In addition. some elements of control may be performed by machine whereas others are accomplished by man. More recently. and social operations. and release from custody after rehabilitation of the individual has occurred. A pilot acts in conjunction with computers and automatic pilots to fly large jets. Man must act as the controller when measurement is subjective and judgment is required. In the event of unexpected weather changes. To illustrate. the expected standard is difficult to define. political.[4] Organizational and operational control [edit] The concept of organizational control is implicit in the bureaucratic theory of Max Weber. Weber's view tends to include all levels or types of organizational control as being the same. the regulator reacts by opening a valve that releases additional inputs of steam energy.

special diagnostic techniques may be required to isolate the trouble areas and to identify the causes of the difficulty. It also follows that if it is difficult or impossible to identify the actual output of individuals. the approach used in the program of review and evaluation depends on the reason for the evaluation — that is. The direction for organizational control comes from the goals and strategic plans of the organization. a manager might not be concerned with the behavior of a salesman as long as sales were as high as expected. When a more detailed analysis is necessary.[7] In organizational control. Sometimes this control over people relates entirely to their output. goods-inprocess. In other instances. and costs. For example.[7] Problems [edit] . a systematic procedure should be followed. General plans are translated into specific performance measures such as share of the market. This means that individuals' levels of motivation and the measurement of their performance become subjective judgments made by the supervisor. comparing performance to some standard. and providing rewards or punishment as indicated. and finished products being purchased and produced in the desired quantities? Are the costs associated with the transformation process in line with cost estimates? Is the information needed in the transformation process available in the right form and at the right time? Is the energy resource being utilized efficiently? The most difficult task of management concerns monitoring the behavior of individuals. For example. it is logical to check first to see if the problem is due to such readily obtainable measures as increased demand or to a drop in available man hours. operational control serves to regulate the day-to-day output relative to schedules. The process of organizational control is to review and evaluate the performance of the system against these established norms. Is the output of product or service the proper quality and is it available as scheduled? Are inventories of raw materials. the more likely that the control characteristic will be related to some output goal. it is better to measure the performance of the entire group. a failure to meet expectations may signal the need to reorganize or redesign.nature and arrangement of components in the system. Controlling output also suggests the difficulty of controlling individuals' performance and relating this to the total system's objectives. and budgets. is it because the system is not effective (accomplishing its objectives)? Is the system failing to achieve an expected standard of efficiency? Is the evaluation being conducted because of a breakdown or failure in operations? Is it merely a periodic audit-and-review process? When a system has failed or is in great difficulty. if an organization's output backlog builds rapidly. whereas operational control tends to adjust the daily inputs. return on investment.[7] In contrast to organizational control. earnings. close supervision of the salesman might be appropriate if achieving customer satisfaction were one of the sales organization's main objectives. The larger the unit. It is appropriate to investigate areas that have been troublesome before or areas where some measure of performance can be quickly identified. Rewards for meeting or exceeding standards may range from special recognition to salary increases or promotions. On the other hand. specifications.

10 being the perfect decision.75 might be considered more effective than another who had a ranking of 6. when output is not in specific units. and the setting of proper standards.25. Many of the characteristics pertaining to output do not lend themselves to quantitative measurement. nor feasible for most business systems. This is true particularly when inputs of human energy cannot be related directly to output. judgments — which could be quite erroneous — might be made about his decision-making effectiveness. but there is always the danger of an incorrect appraisal and transfer. psychological and sociological factors obviously do not easily translate into quantifiable terms. the problem of timing information flow. we design control into systems. The objective of the system is to perform some specified function. Therefore. energy. how does mental fatigue affect the quality or quantity of output? And. One executive with a ranking of 6. and yet the two managers may have made decisions under different circumstances and conditions. In evaluating man-machine or human-oriented systems. and imprecision in relation to measuring physical characteristics is the most prevalent and important measurement made in large systems. and quite another to make it operate true to the best objectives of design. If it were feasible. subjectivity. The same situation applies to machines and other equipment associated with human involvement. that the decisions made by an executive are rated from 1 to 10. It is one thing to design a system that contains all of the elements of control. for example. This kind of planning is neither realistic.[7] Quantifying human behavior. On the basis of this score. This requires more thought in the systems design but allows more flexibility of operations and makes it possible to operate a system using unpredictable components and undetermined input. For example. and dividing by the total number of decisions made. After determining the ranking for each decision. if it does. despite its extreme difficulty. economical. the system may not be designed to operate efficiently. Let us suppose. The objective of organizational control is to see that the specified function is achieved. The behavior of individuals ultimately dictates the success or failure of every man-made system.The perfect plan could be outlined if every possible variation of input could be anticipated and if the system would operate as predicted.[7] When objectives are not limited to quantitative output. is mental fatigue a function of the lack of a challenging assignment or the fear of a potential injury? Subjective inputs may be transferred into numerical data. External factors over which neither executive had any control may have influenced the difference in "effectiveness". the average ranking would indicate a particular executive's score in his decisionmaking role. the design and effective operation of control are not without problems. Still. and the danger that the analyst may assume undue confidence in such data after they have been quantified. or information — in other words. Some of the more typical problems relating to control include the difficulty of measurement. For example. . Operating "in control" or "with plan" does not guarantee optimum performance. The objective of operational control is to ensure that variations in daily output are maintained within prescribed limits. planning requirements would be so complex that the system would be out of date before it could be operated. adding these. the plan may not make the best use of the inputs of materials. the measurement of system effectiveness is difficult to make and subsequently perplexing to evaluate.

at that moment.[3] . the system will overreact and go beyond the allowable limits. the trend below standard is recognized and new inputs are added. The most serious problem in information flow arises when the delay in feedback is exactly one-half cycle. either by mistakes in measurement or in judgment. the more likely it is that the system could overadjust. it will cause the system to drop below the lower limit of allowable variation. and so on until the system fluctuates ("oscillates") out of control. The more rapid the system's response to an error signal. ―Oscillation and Feedback‖. and then if the reverse adjustment is made out of cycle. This phenomenon is illustrated in Figure 1. if this is recognized at Point C. If. to correct too much in the other direction. Again.Information flow [edit] Oscillation and Feedback Another problem of control relates to the improper timing of information introduced into the feedback channel. A system generating feedback inconsistent with current need will tend to fluctuate and will not adjust in the desired manner. is in the same direction as that of the correction. Improper timing can occur in both computerized and human control systems. yet the need for prompt action is important because any delay in providing corrective input could also be crucial. at Point A. for then the corrective action is superimposed on a variation from norm which. This causes the system to overcorrect. but inputs are not withdrawn until Point D. but not until Point B.

provided that human intervention is possible to handle exceptions. Standards should be as precise as possible and communicated to all persons concerned. which involves measuring not only the change but also the rate of change. In human systems. offer the greatest promise. what kind of behavior should be expected by students in the classroom? Discretion and personal judgment play a large part in such systems. It is usually more effective for an organization to maintain continuous measurement of its performance and to make small adjustments in operations constantly (this assumes a highly sensitive control system). Perhaps the most difficult problem in human systems is the unresponsiveness of individuals to indicated correction. Moreover. The correction is outlined as a factor of the type and rate of the error. to determine whether corrective action should be taken. communication alone is not sufficient. synchronization of the efforts of group members so as to provide unity of action in the pursuit of common goals.[3] Setting standards [edit] Setting the proper standards or control limits is a problem in many systems. or that improper information may be communicated. how many hours each day should a professor be expected to be available for student consultation? Or. bringing about consistency between the need for correction and the type and magnitude of the indicated action. thus the solution to these problems must start at that point.One solution to this problem rests in anticipation. According to Charles Worth. should be timely and correct to be effective. understanding is necessary. integration. however. the information should provide an accurate indication of the status of the system. or it may be related to the lack of defined responsibility or authority to take action. standards tend to be poorly defined and the allowable range of deviation from standard also indefinite. There is a danger. The difficulty also might be overcome by reducing the time lag between the measurement of the output and the adjustment to input. that we may measure characteristics that do not represent effective performance (as in the case of the speaker who requested that all of the people who could not hear what he was saying should raise their hands). If a trend can be indicated. ―Coordination is orderly arrangement of group efforts to provide unity of action in the pursuit of common goals‖. Information feedback. According to Mooney and Reelay. It is a hidden force which binds all the other functions of management. a time lead can be introduced to compensate for the time lag. on the assumption that when people establish their own goals. and business managers face the same issue in establishing standards that will be acceptable to employees. they are more apt to accept and achieve them. consequently. Most control problems relate to design. This may take the form of opposition and subversion to control. Leadership and positive motivation then become vital ingredients in achieving the proper response to input requirements. ―Co-ordination is the integration of several . Some theorists have proposed that workers be allowed to set their own standards. For example. Parents are confronted with this dilemma in expressing what they expect of their children.[3] Definition of Coordination Co-ordination is the unification. That is. Automatic control systems.

and when he creates department’s co-ordination uppermost in his mind. It is required in each & every function and at each & every stage & therefore it cannot be separated. Co-ordination through Planning . Management seeks to achieve co-ordination through its basic functions of planning. Co-ordination through Organizing . Coordination is a creative force which makes possible a total result which is greater than the sum of individual achievements. . 2.co-ordination between finance budget and purchases budget.parts into an orderly hole to achieve the purpose of understanding‖. Good Human Relations: . co-ordination is not a separate function of management because achieving of harmony between individuals efforts towards achievement of group goals is a key to success of management. The quality of coordination is the crucial factor in the survival of an organisation. of personnel in various positions with right type of education and skills are taken which will ensure right men on the right job. exchange of ideas.Planning facilitates co-ordination by integrating the various plans through mutual discussion. c. From above discussion.The purpose of giving orders. d. 5 most importance advantages of coordination in management Coordination provides the following benefits: 1. Co-ordination is the essence of management and is implicit and inherent in all functions of management. Co-ordination through Controlling . Co-ordination through Directing . In fact. That is why. Co-ordination is an integral element or ingredient of all the managerial functions as discussed below: a. Higher Efficiency and Economy: Coordination helps to improve the efficiency of operations by avoiding overlapping efforts and duplication of work. coordination is the first principle of organisation as it expresses the principle of organisation in to. e. In fact when a manager groups and assigns various activities to subordinates. organizing. directing and controlling.Mooney considers co-ordination as the very essence of organizing. The success of organized Endeavour depends upon the quality of coordination. staffing.g.A manager should bear in mind that the right no. Co-ordination through Staffing . A manager can be compared to an orchestra conductor since both of them have to create rhythm and unity in the activities of group members. Coordination enables an organisation to rake optimum use of its resources. b. we can very much affirm that co-ordination is the very much essence of management. instructions & guidance to the subordinates is served only when there is a harmony between superiors & subordinates. Integration and balancing of individual efforts provide a smooth and harmonious team work. e. This is the synergetic effect coordination.Manager ensures that there should be coordination between actual performance & standard performance to achieve organizational goals.

5. so moving together in their closely knit and adjusting activities. Coordination improves human relations by reconciling individual and organizational objectives. coordination ensures the stability and growth of an organisation. executives will tend to remain longer with the company. It enables the executives to see the enterprise as a whole instead of narrow sectional goals. especially with regard to the strategic objectives and policies of the business. but a functional whole or integrated unit". By welding together different departments and sections into one entity. This is the main difference between internal and external audit where external auditors and independent of management and hence external auditors give an opinion on the financial statements as presented by the management of the organisation. inter-locking. This enhances the effectiveness and stability of the organisation. that they make a working unit that is not a congenis of separate pieces. Management is nothing more than coordination of all activities. According to McFarland. . Coordination serves as a key to all managerial functions. According to Mary Parker Follett. and hires and trains the appropriate audit personnel. A well-coordinated organisation can attract. inter-relating. Unity of direction: Coordination helps to ensure unity of action in the face of disruptive forces. "if job satisfactions are present. They will feel that they have earned that place. Audit management is responsible for ensuring that board-approved audit directives are implemented. Organizational Effectiveness: Coordination fosters loyalty and commitment among employees. The presence of coordination becomes part of their job experience and hence can form a very useful part of their training. They will feel that they have a place in the organisation. Individual interests are subordinated to the common interest more easily and effectively.Besides promoting the efficiency of operations. establishes audit programs. coordination improves the morale and job satisfaction of employees. coordination is the sine qua non of effective management. Internal audit is a function setup the organisation to reduce the risk of fraud in the organisation and runs according to the management commands. but to evaluate the management team in relation to their competition. Composite and orderly effort established through team spirit and executive leadership enables employees to derive a sense of security and personal contentment from their job. 4. so linking. "the first test of a business administration should be whether you have a business with all its parts so coordinated." Thus. Management Audit Definition of 'Management Audit' Analysis and assessment of competencies and capabilities of a company's management in order to evaluate their effectiveness. Audit management oversees the internal/external audit staff. Quintessence of management: Coordination is an all inclusive concepts or the end result of the management process. The objective of a management audit is not to appraise individual executive performance. 3. The staff should have the necessary skills and expertise to identify inherent risks of the business and assess the overall effectiveness of controls in place relating to the company's internal controls. efforts and forces that affect the organisation from within and without. retain and utilize better personnel.

4. this task. PROCESS OF MANAGEMENT AUDIT 1. and succession planning. efficiency audit or ‘operationsaudit’. Report – On the basis of the above steps. ‘management audit’. by professionally qualified and competentpeople. any organisation of a reasonable size may be able to derive benefit from this form of audit which is distinctly different from annual statutory financial auditing and deeper and broader than the conventional internal auditing.Auditor should review the actual performance of the various work centers. Proposals for such audits have been made under varioustitles like. verification and evaluation. 3.Management audits are often necessitated by major changes in a business. As directors’ comments on the company efficiency are not likely to be entirelyobjective. Some of the events that call for a management audit are top management changes. Management audit focuses . however the only practical distinction is whether the audit should beconfined to the efficiency of the management team in pushing through the companyobjectives. Evaluation of the organization structure. Any scope of improvement in it should be reported. mergers and acquisitions. or on additional auditorsappointed specially for this purpose. 5. auditor should prepare a report and submit to the appointing authority. ‘management efficiency audit’. and hence theeffectiveness of directors. Evaluating the policies of the organization. The performance should be carefully and critically evaluated. To find out that whether the structure enough to achieve the goals of the organizations. Naturally.Evaluating the policies of the organization is very important is very important. The report should point out all the weak and inefficient points present in the organization. 2. Meaning of Management Auditing. The authors of these proposals often try to draw subtle distinction between these terms. There have been many calls in recent years for a more pluralistic approach to financialreporting to incorporate comments on the efficiency with which the company has conducted itsaffairs. Any scope of the improvement or inefficient working should be reported. But a review of the efficiency of the management team would have to be both ongoing and inconsiderable detail to be meaningful. Reviewing the actual performance. or whether it should intend to include the objectives themselves.This is largely semantic. it is proposed will fall on the company auditors. and it is therefore much more suited to a internal audit Why Management Auditing ? Management Audit is a tool to improve management performance by recognising facts and information about management presented afterappropriate examination. Not surprisingly most directors concur with the former view.The first job in the management audit is to identify the objectives of the business organization.Next step in the management audit is to evaluate the organization structure. Establishing the objects of organization.

As a result. procedures and methods. Compliance audits are still used in highrisk activities.Management Auditing A result-oriented audit can provide the impetus for positive change. fit and function. . audits must measure performance against agreed criteria. are specified. The application of a compliance audit results in stability and assurance that rules are being followed. where there is a desire to verify that the activities are being performed in strict compliance to approved requirements. regulatory inspections and most supplier audits measure compliance. auditors must obey four basic rules. The first method. Three basic evaluation methods exist for any work activity: inspection. In contrast. compliance audits check on the implementation of written manuals. which are generally performed internally. the customer's need. measures a process's output against certain characteristics. Third-party registration audits. are compliance audits plus causeand-effect analysis. audit conclusions must be based on fact. they are potentially the most useful of the evaluation methods. audits must provide information for a defined need. Second. It focuses on results. because they result in change. These characteristics. Fourth. compliance auditing and management auditing. because tax collectors and bank examiners needed assurance that the financial data were correct. The compliance audit evolved in the 20th century as business practices became more complex. generally identified as form. Third. procedures and work instructions. Compliance Audits vs. auditors must be capable of performing their duties. Management audits. The first use of compliance auditing appeared in financial transactions. The management audit is a more recent concept. Management Audits Whether performing a compliance or a management audit. an inspection's outcome is always binary: pass or fail. When performed correctly. and the process output either possesses those characteristics or it doesn't. inspection. evaluating the effectiveness and suitability of controls by challenging underlying rules. First. This concept of verifying compliance was picked up by the quality profession in the 1960s and applied to the military and the nuclear power industry. that is.

then resources can be applied to fix the problems. but auditees trying to derive the most benefit from the audit will also want to know whether the organization is functioning effectively. but you can't audit your own job. This means that they cannot have a vested interest in the activity being audited. Rule 2: Use qualified people Auditors must be able to carry out their assignments in an impartial and objective fashion. Auditees' primary goal may be to simply pass the audit. If controls are present and working. National and international standards. some separation must be maintained. these requirements establish the goals and objectives to be achieved. such as QS-9000 and ISO 9001. both orally and in writing. In addition to knowing how to conduct an audit. process and system controls are present and being applied. A good way to demonstrate this familiarity is to flowchart the activity to be audited--if a person can't flowchart it. All affected parties need to know if product. an audit boss should schedule the audits and make assignments. Auditors must also be capable of doing their jobs. Next . In this case. Usually originating from outside the auditee's organization. Business values are important and the auditors can assist by determining whether the enterprise is actually achieving its goals. he or she can't audit it. Auditors serve three customers: the auditee. Rule 3: Measure against agreed criteria Auditors are not allowed to make up the rules--they must audit against performance standards that are already in place and accepted by the auditee. An auditor evaluates the controls against requirements and produces a report. The client (the person who commissions the audit). they cannot impartially evaluate the effectiveness and application of those rules. all parties' confidence in the process is increased. If controls are missing or not working. auditors must serve the organization's needs. This is the planning part of the plan-docheck-act loop. It's fine to audit within your group.Rule 1: Serve your customers Audits provide information. Often. Finally. and obviously it doesn't hurt to know whether these controls actually work. auditors must be familiar with the technical processes being examined. the client and the organization. management system standards and regulatory requirements. reading a book or observing others. an auditor's outside perspective can be quite valuable. Committees cannot generally perform this function. in contrast to the auditee. auditors need to be able to communicate well. fall into this highest category. If they developed the rules. is accountable for the auditors' actions and reports. They need certain emotional. The highest level of requirements includes corporate policies. all three methods are used. which they can obtain by attending a course. Although an auditor can never be totally independent of the auditee. intellectual and mechanical skills. Finally.

often called a quality manual or quality plan. the auditor must analyze the data. hearing. Facts can be good (a requirement was met) or bad (a requirement wasn't met). To prepare a report. It applies to all aspects of business conduct and is relevant to the conduct of individuals and entire [1] organizations. but no judgment or opinion should taint them. smelling or tasting. One of an auditor's challenges is to obtain and become familiar with the many levels of requirements forming the basis for the audit. documents or records. information drawn from interviews with auditee staff members. "People of the same trade seldom meet together. This natural chunking of the data allows the auditor to see the patterns. even for merriment and diversion. As a corporate practice and a career specialization. They can be physical properties. Further detail can be provided in work instructions. or in some contrivance to raise prices. and then they perform the fieldwork to gather these facts. sensory-derived input from seeing. This document is then followed by a number of process-specific procedures. Rule 4: Use facts to form conclusions Auditing is fact-based. then sort those data into controls or problem areas. These facts. such as flow rates and dimensions. Generally. be it a management or compliance audit. The first step is to list all of the positive and negative observations (data). today most major corporations promote their commitment to non-economic values under headings such as ethics codes and social responsibility charters.comes the local approach. Business ethics Business ethics (also corporate ethics) is a form of applied ethics or professional ethics that examines ethical principles and moral or ethical problems that arise in a business environment. conclusions are drawn from the data. In other words. but the conversation ends in a [2] conspiracy against the public. Academics attempting to understand business behavior employ descriptive methods. for implementing these high-level requirements. The range and quantity of business ethical issues reflects the interaction of profit-maximizing behavior with non-economic concerns. rather than the individual events. traveler sheets and sampling plans. both within major corporations and within academia. also known as objective evidence. there will be a large number of negative observations associated with just a few control items. is a report. these patterns are then reported as either conformities or nonconformities. the field is primarily normative. such as drawings. It gives the framework for achieving the concepts and should be fairly compact. Adam Smith said. The client (audit boss) receives the report from the auditor and delivers it to the auditee." Governments use laws and . Interest in business ethics accelerated dramatically during the 1980s and 1990s. For example. Auditors use checklists and other tools to determine the facts to be gathered. can come from five sources. The output of the audit process. the auditor must take all of the positive and negative facts and make some sense of the data. For a compliance audit. Business ethics has both normative and descriptive dimensions. or patterns such as percentages or ratios.

one of whose aims is to determine the fundamental purposes of a company. 2012 What are business ethics? Ethics are moral guidelines which govern good behaviour So behaving ethically is doing what is morally right Behaving ethically in business is widely regarded as good business practice. Ethics [3] implicitly regulates areas and details of behavior that lie beyond governmental control. Introduction to Business Ethics Author: Jim Riley Last updated: Sunday 23 September.regulations to point business behavior in what they perceive to be beneficial directions. Overview Business ethics reflects the philosophy of business. Corporate entities are legally considered as persons in USA and in most nations. The emergence of large corporations with limited relationships and sensitivity to the communities in which [4] they operate accelerated the development of formal ethics regimes. To provide you with a couple of quotes: Ethical principles and standards in business:   Define acceptable conduct in business Should underpin how management make decisions An important distinction to remember is that behaving ethically is not quite the same thing as behaving lawfully: . The 'corporate persons' are legally entitled to the rights and liabilities due to citizens as persons. then sacrificing profits to other concerns is a violation of its fiduciary responsibility. If a company's purpose is to maximize shareholder returns.

managers and employees act ethically? A common approach is to implement a code of practice. For example: Should businesses profit from problem gambling? Should supermarkets sell lager cheaper than bottled water? Is ethical shopping a luxury we can’t afford? You will probably note the link between business ethics and corporate social responsibility (CSR).  Ethics are about what is right and what is wrong Law is about what is lawful and what is unlawful An ethical decision is one that is both legal and meets the shared ethical standards of the community Businesses face ethical issues and decisions almost every day – in some industries the issues are very significant. The two concepts are closely linked:   A socially responsible firm should be an ethical firm An ethical firm should be socially responsible However there is also a distinction between the two:   CSR is about responsibility to all stakeholders and not just shareholders Ethics is about morally correct behaviour How do businesses ensure that its directors. Ethical codes are increasingly popular – particularly with larger businesses and cover areas such as:     Corporate social responsibility Dealings with customers and supply chain Environmental policy & actions Rules for personal and corporate integrity .