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Q: Management in all business and organizational activities is the act of coordinating

the efforts of people to accomplish desired goals and objectives using available resources
efficiently and effectively. Management comprises planning, organizing, staffing, leading
or directing, and controlling an organization (a group of one or more people or entities) or
effort for the purpose of accomplishing a goal. Resourcing encompasses the deployment
and manipulation of human resources, financial resources, technological resources, and
natural resources.
Every organization, regardless of size, has developed and implemented its own
management concepts in order for it to run smoothly and accomplish the vision, goals
and objectives it has set forth. As such, the basic functions of management, broken down
into four different areas, allow for it to handle the strategic, tactical and operational
decisions for the organization. The four functions of management are: planning,
organizing, directing, and controlling.
Planning is the core area of all the functions of management. It is the foundation upon
which the other three areas should be build. Planning requires management to evaluate
where the company is currently, and where it would like to be in the future. From there an
appropriate course of action to attain the company's goals and objectives is determined
and implemented.
The planning process is ongoing. There are uncontrollable, external factors that
constantly affect a company both positively and negatively. Depending on the
circumstances, these external factors may cause a company to adjust its course of action
in accomplishing certain goals. This is referred to as strategic planning.
During strategic planning, management analyzes internal and external factors that do and
may affect the company, as well as the objectives and goals. From there they determine
the company's strengths, weaknesses, opportunities and threats. In order for management
to do this effectively, it has to be realistic and comprehensive.
getting organized is the second function of management. Management must organize all
its resources in order to implement the course of action it determined in the planning
process. Through the process of getting organized, management will determine the
internal organizational structure; establish and maintain relationships, as well as allocate
necessary resources.
In determining the internal structure, management must look at the different divisions or
departments, the coordination of staff, and what is the best way to handle the necessary
tasks and disbursement of information within the company. Management will then divide
up the work that needs to be done, determine appropriate departments, and delegate
authority and responsibilities.

The third function of management is directing. Through directing, management is able to
influence and oversee the behavior of the staff in achieving the company's goals, as well
as assisting them in accomplishing their own personal or career goals. This influence can
be gained through motivation, communication, department dynamics, and department
Employees that are highly motivated generally go above and beyond in their job
performance, thereby playing a vital role in the company achieving its goals. For this
reason, managers tend to put a lot of focus on motivating their employees. They come up
with reward and incentive programs based on job performance and geared toward the
employees' needs.
Effective communication is vital in maintaining a productive working environment,
building positive interpersonal relationships, and problem solving. Understanding the
communication process and working on areas that need improvement help managers to
become more effective communicators. The best way to find areas that need
improvement is to periodically ask themselves and others how well they are doing.
Controlling is the last of the four functions of management. It involves establishing
performance standards based on the company's objectives, and evaluating and reporting
actual job performance. Once management has done both of these things, it should
compare the two to determine any necessary corrective or preventive action.
Management should not lower standards in an effort to solve performance problems.
Rather they should directly address the employee or department having the problem.
Conversely, if limited resources or other external factors prohibit standards from being
attained, management should lower standards as needed.
The control process, as with the other three, is ongoing. Through controlling,
management is able to identify any potential problems and take the necessary
preventative measures. Management is also able to identify any developing problems that
need to be addressed through corrective action.
n order for management to be considered successful, it must attain the goals and
objectives of the organization. This requires creative problem solving in each of the four
functions of management. Mo
re so, success requires that management be both effective and efficient. Therefore, it
needs to not only accomplish those goals and objectives, but do it in a way that the cost
of accomplishment is viable for the company.


Management is the process of reaching organizational goals by working with and through
people and other organizational resources.
Management has the following 3 characteristics:
1. It is a process or series of continuing and related activities.
2. It involves and concentrates on reaching organizational goals.
3. It reaches these goals by working with and through people and other
organizational resources.

The 4 basic management functions that make up the management process are described
in the following sections:


PLANNING: Planning involves choosing tasks that must be performed to attain

organizational goals, outlining how the tasks must be performed, and indicating when
they should be performed.
Planning activity focuses on attaining goals. Managers outline exactly what organizations
should do to be successful. Planning is concerned with the success of the organization in
the short term as well as in the long term.
Organizing can be thought of as assigning the tasks developed in the planning stages, to
various individuals or groups within the organization. Organizing is to create a
mechanism to put plans into action.
People within the organization are given work assignments that contribute to the
companys goals. Tasks are organized so that the output of each individual contributes to
the success of departments, which, in turn, contributes to the success of divisions, which
ultimately contributes to the success of the organization.

Influencing is also referred to as motivating, leading or directing. Influencing can be
defined as guiding the activities of organization members in he direction that helps the
organization move towards the fulfillment of the goals.
The purpose of influencing is to increase productivity. Human-oriented work situations
usually generate higher levels of production over the long term than do task oriented
work situations because people find the latter type distasteful.
Controlling is the following roles played by the manager:
1. Gather information that measures performance
2. Compare present performance to pre established performance norms.
3. Determine the next action plan and modifications for meeting the desired
performance parameters.
Controlling is an ongoing process.
Q: Planning?
Selection of short- and long-term objectives and the drawing up of tactical and strategic
plans to achieve those objectives. In planning, managers outline the steps to be taken in
moving the organization toward its objectives. After deciding on a set of strategies to be
followed, the organization needs more specific plans, such as locations, methods of
financing, hours of operations, and so on. As these plans are made, they will he
communicated throughout the organization. When implemented, the plans will serve to
coordinate, or meld together, the efforts of all parts of the organization toward the
company's objectives.
Step 1: How to prepare to plan - analyses stakeholder involvement
Step 2: How to analyses situations and needs
Step 3: How to priorities and select a goal and purpose
Step 4: How to develop clear objectives
Step 5: How to identify alternative strategies and select the most effective strategy
Step 6: How to plan implementation
Step 7: How to plan for evaluation
Step 8: How to summarize your plan
The various stages in the process of planning are as follows:

1. Goal setting:
Plans are the means to achieve certain ends or objectives. Therefore, establishment of
organizational or overall objectives is the first step in planning. Setting objectives is the
most crucial part of planning. The organizational objectives should be set in key areas of
They should be verifiable i.e., they should as far as possible be specified in clear and
measurable terms. The objectives are set in the light of the opportunities perceived by
managers. Establishment of goals is influenced by the values and beliefs of executives,
mission of the organization, organizational resources, etc.
Objectives provide the guidelines (what to do) for the preparation of strategic and
procedural plans. One cannot make plans unless one knows what is to be accomplished.
Objectives constitute the mission of an organization. They set the pattern of future course
of action.
The objectives must be clear, specific and informative. Major objectives should be
broken into departmental, sectional and individual objectives. In order to set realistic
objectives, planners must be fully aware of the opportunities and problems that the
enterprise is likely to face.
2. Developing the planning premises:
Before plans are prepared, the assumptions and conditions underlying them must be
clearly defined these assumptions are called planning premises and they can be identified
through accurate forecasting of likely future events.
They are forecast data of a factual nature. Assessment of environment helps to reveal
opportunities and constraints. Analysis of internal (controllable and external
(uncontrollable) forces is essential for sound planning premises are the critical factors
which lay down the bounder for planning.
They are vital to the success of planning as they supply per tenant facts about future.
They need revision with changes in the situation. Contingent plans may be prepared for
alternate situations.
3. Reviewing Limitations:
In practice, several constraints or limitations affect the ability of an organization to
achieve its objectives. These limitations restrict the smooth operation of plans and they
must be anticipated and provided for.
The key areas of Imitations are finance," human resources, materials, power and
machinery. The strong and weak points of the enterprise should be correctly assessed.

4. Deciding the planning period:

Once the broad goals, planning premises and limitations are laid down, the next step is to
decide the period of planning. The planning period should be long enough to permit the
fulfillment of the commitments involved in a decision.
This is known as the principle of commitment. The planning period depends on several
factors e.g., future that can be reasonably anticipated, time required to receive capital
investments, expected future availability of raw materials, lead time in development and
commercialization of a new product, etc.
5. Formulation of policies and strategies:
After the goals are defined and planning premises are identified, management can
formulate policies and strategies for the accomplishment of desired results. The responsibility for laying down policies and strategies lies usually with management. But, the
subordinates should be consulted as they are to implement the policies and strategies.
Alternative plans of action should be developed and evaluated carefully so as to select the
most appropriate policy for the organization. Imagination, foresight, experience and
quantitative techniques are very useful in the development and evaluation of alternatives.
Available alternatives should be evaluated in the light of objectives and planning
premises. If the evaluation shows that more than one alternative is equally good, the
various alternatives may be combined in action.
6. Preparing operating plans:
After the formulation of overall operating plans, the derivative or supporting plans are
prepared. Several medium range and short-range plans are required to implement policies
and strategies.
These plans consist of procedures, programmers, schedules, budgets and rules. Such
plans are required for the implementation of basic plans.
Operational plans reflect commitments as to methods, time, money, etc. These plans are
helpful in the implementation of long range plans. Along with the supporting, plans, the
timing and sequence of activities is determined to ensure continuity in operations.
7. Integration of plans:
Different plans must be properly balanced so that they support one another. Review and
revision may be necessary before the plan is put into operation. Moreover, the various
plans must be communicated and explained to those responsible for putting them into

The participation and cooperation of subordinates is necessary for successful

implementation of plans. Established plans should be reviewed periodically so as to
modify and change them whenever necessary.
A system of continuous evaluation and appraisal of plans should be devised to identify
any shortcomings or pitfalls of the plans under changing situations.

Motivation is a psychological feature that arouses an organism to act towards a desired

goal and elicits, controls, and sustains certain goal-directed behaviors. It can be
considered a driving force; a psychological one that compels or reinforces an action
toward a desired goal. For example, hunger is a motivation that elicits a desire to eat.
Motivation is the purpose or psychological cause of an action.[1]
Motivation has been shown to have roots in physiological, behavioral, cognitive, and
social areas. Motivation may be rooted in a basic impulse to optimize well-being,
minimize physical pain and maximize pleasure. It can also originate from specific
physical needs such as eating, sleeping or resting, and sex.
Motivation is an inner drive to behave or act in a certain manner. "It's the difference
between waking up before dawn to pound the pavement and lazing around the house all
day."[2] These inner conditions such as wishes, desires, goals, activate to move in a
particular direction in behavior.
Q: Theory X and Theory Y are theories of human motivation created and developed by
Douglas McGregor at the MIT Sloan School of Management in the 1960s that have been
used in human resource management, organizational behavior, organizational
communication and organizational development. They describe two contrasting models
of workforce motivation.
Theory X and Theory Y have to do with the perceptions managers hold on their
employees, not the way they generally behave. It is attitude not attributes.

Theory X
In this theory, management assumes employees are inherently lazy and will avoid work if
they can and that they inherently dislike work. As a result of this, management believes
that workers need to be closely supervised and comprehensive systems of controls
developed. A hierarchical structure is needed with narrow span of control at each and
every level. According to this theory, employees will show little ambition without an
enticing incentive program and will avoid responsibility whenever they can. According to
Michael J. Papa, if the organizational goals are to be met, theory X managers rely heavily
on threat and coercion to gain their employees' compliance. Beliefs of this theory lead to
mistrust, highly restrictive supervision, and a punitive atmosphere. The Theory X
manager tends to believe that everything must end in blaming someone. He or she thinks

all prospective employees are only out for themselves. Usually these managers feel the
sole purpose of the employee's interest in the job is money. They will blame the person
first in most situations, without questioning whether it may be the system, policy, or lack
of training that deserves the blame. A Theory X manager believes that his or her
employees do not really want to work, that they would rather avoid responsibility and
that it is the manager's job to structure the work and energize the employee. One major
flaw of this management style is it is much more likely to cause diseconomies of scale in
large business.

Theory Y
In this theory, management assumes employees may be ambitious and self-motivated and
exercise self-control. It is believed that employees enjoy their mental and physical work
duties. According to them work is as natural as play. They possess the ability for creative
problem solving, but their talents are underused in most organizations. Given the proper
conditions, theory Y managers believe that employees will learn to seek out and accept
responsibility and to exercise self-control and self-direction in accomplishing objectives
to which they are committed. A Theory Y manager believes that, given the right
conditions, most people will want to do well at work. They believe that the satisfaction of
doing a good job is a strong motivation. Many people interpret Theory Y as a positive set
of beliefs about workers. A close reading of The Human Side of Enterprise reveals that
McGregor simply argues for managers to be open to a more positive view of workers and
the possibilities that this creates. He thinks that Theory Y managers are more likely than
Theory X managers to develop the climate of trust with employees that is required for
human resource development. It's human resource development that is a crucial aspect of
any organization. This would include managers communicating openly with subordinates,
minimizing the difference between superior-subordinate relationships, creating a
comfortable environment in which subordinates can develop and use their abilities. This
climate would be sharing of decision making so that subordinates have say in decisions
that influence them.

Theory X and Theory Y combined

For McGregor, Theory X and Y are not different ends of the same continuum. Rather they
are two different continua in themselves.
McGregor had identified theory X and theory Y differently for the basic characteristics
stated previously in the above sections of what these theories represent. Theory X
assumptions are that individuals dislike their careers. Theory X people have to be
supervised. As for Theory Y assumptions are that individuals like their careers and are
willing to take part in responsibility. Theory Y people don't need supervision and can be
expected to turn good productive value in their jobs.'
Based on employees we take a closer look at the relationship between supervisors and
"subordinates as some may call them or worker (Sahin, 2012, p159). The quality of the

relationship between the two can be described by Sahin as a term called leader-member
exchange (LMX) theory. What LMX theory basically points out against McGregor theory
is that "leaders develop unique relationships with different subordinates and that the
quality of these relationships is a determinant of how each subordinate will be treated"
(Sahin, 2012, p159).
With these two theories combined Sahin studies have shown that affective commitment
can help the individual and the organization at the same time. In addition, workers
(subordinates) develop feelings of affective commitment if they receive the importance
from supervisors not just by overlooking them all the time but by also giving them
importance (Sahin, 2012, pp162-163). In addition look at external link for image, that
explains the function of the theory. McGregor identified individuals based on two
theories they can possibly have, theory X, or theory Y. But Sahin shows a different
approach through his study of the LMX theory. He shows how different styles used upon
by management can vary from both theories.

When managers apply Theory Y principles, workers receive independence and

responsibility for work; they receive opportunities to recognize problems and their
job will be to find solutions to them. This results in high-quality relationships
(Sahin, 2012, p163)

In contrast, theory X managers highlight the close supervision of workers and the
chain of command and motivate subordinates using extrinsic rewards. Therefore,
workers that are overseen by theory X managers tend not to have the most
beneficial relationship with their supervisor. They maintain a distance and
impersonal and low-quality exchange relationships (Sahin, 2012, p163).

See external links for image

Sahin, F. (2012). The mediating effect of leader-member exchange on the relationship
between theory X and Y management styles and affective commitment: A multilevel
analysis. Journal of Management and Organization, 18(2), 159-174. Retrieved from

McGregor and Maslow's hierarchy

Theory X and Theory Y relate to Maslow's hierarchy of needs in how human behavior
and motivation are main priorities in the workplace in order to maximize output. In
relation to Theory Y, the organization is trying to create the most symbiotic relationship
between the managers and workers, which relates to Maslow's needs for self-actualization
and Esteem. For self-actualization, the manager promotes the optimum workplace
through morality, creativity, spontaneity, problem solving, lack (or minimization) of the

effects of prejudice, and acceptance of facts. We must accept that prejudice exists in
others, even as we try to minimize it in ourselves. These issues relate to Esteem when the
manager is trying to promote each team member's self-esteem, confidence, achievement,
happiness, respect of others, and respect by others.

Maslow's hierarchy of needs

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An interpretation of Maslow's hierarchy of needs, represented as a pyramid with the more

basic needs at the bottom[1]
Maslow's hierarchy of needs is a theory in psychology proposed by Abraham Maslow
in his 1943 paper "A Theory of Human Motivation" in Psychological Review.[2] Maslow
subsequently extended the idea to include his observations of humans' innate curiosity.
His theories parallel many other theories of human developmental psychology, some of
which focus on describing the stages of growth in humans. Maslow used the terms
Physiological, Safety, Belongingness and Love, Esteem, Self-Actualization and SelfTranscendence needs to describe the pattern that human motivations generally move
Maslow studied what he called exemplary people such as Albert Einstein, Jane Addams,
Eleanor Roosevelt, and Frederick Douglass rather than mentally ill or neurotic people,
writing that "the study of crippled, stunted, immature, and unhealthy specimens can yield

only a cripple psychology and a cripple philosophy."[3] Maslow studied the healthiest 1%
of the college student population.[4]
Maslow's theory was fully expressed in his 1954 book Motivation and Personality.[5]
While the hierarchy remains a very popular framework in sociology research,
management training[6] and secondary and higher psychology instruction, it has largely
been supplanted by attachment theory in graduate and clinical psychology and

Maslow's hierarchy of needs is often portrayed in the shape of a pyramid with the largest,
most fundamental levels of needs at the bottom and the need for self-actualization at the
top.[1][9] While the pyramid has become the de facto way to represent the hierarchy,
Maslow himself never used a pyramid to describe these levels in any of his writings on
the subject.
The most fundamental and basic four layers of the pyramid contain what Maslow called
"deficiency needs" or "d-needs": esteem, friendship and love, security, and physical
needs. If these "deficiency needs" are not met with the exception of the most
fundamental (physiological) need there may not be a physical indication, but the
individual will feel anxious and tense. Maslow's theory suggests that the most basic level
of needs must be met before the individual will strongly desire (or focus motivation
upon) the secondary or higher level needs. Maslow also coined the term Met motivation
to describe the motivation of people who go beyond the scope of the basic needs and
strive for constant betterment.[10]
The human mind and brain are complex and have parallel processes running at the same
time, thus many different motivations from various levels of Maslow's hierarchy can
occur at the same time. Maslow spoke clearly about these levels and their satisfaction in
terms such as "relative," "general," and "primarily." Instead of stating that the individual
focuses on a certain need at any given time, Maslow stated that a certain need
"dominates" the human organism.[11] Thus Maslow acknowledged the likelihood that the
different levels of motivation could occur at any time in the human mind, but he focused
on identifying the basic types of motivation and the order in which they should be met.

Physiological needs
Physiological needs are the physical requirements for human survival. If these
requirements are not met, the human body cannot function properly, and will ultimately
fail. Physiological needs are thought to be the most important; they should be met first.
Air, water, and food are metabolic requirements for survival in all animals, including
humans. Clothing and shelter provide necessary protection from the elements. While
maintaining an adequate birth rate shapes the intensity of the human sexual instinct,
sexual competition may also shape said instinct.[2

Changes to the hierarchy by circumstance

The higher-order (self-esteem and self-actualization) and lower-order (physiological,
safety, and love) needs classification of Maslow's hierarchy of needs is not universal and
may vary across cultures due to individual differences and availability of resources in the
region or geopolitical entity/country.
In one study, exploratory factor analysis (EFA) of a thirteen item scale showed there were
two particularly important levels of needs in the US during the peacetime of 1993 to
1994: survival (physiological and safety) and psychological (love, self-esteem, and selfactualization). In 1991, a retrospective peacetime measure was established and collected
during the Persian Gulf War and US citizens were asked to recall the importance of needs
from the previous year. Once again, only two levels of needs were identified; therefore,
people have the ability and competence to recall and estimate the importance of needs.
For citizens in the Middle East (Egypt and Saudi Arabia), three levels of needs regarding
importance and satisfaction surfaced during the 1990 retrospective peacetime. These
three levels were completely different from those of the US citizens.
Changes regarding the importance and satisfaction of needs from the retrospective
peacetime to the wartime due to stress varied significantly across cultures (the US vs. the
Middle East). For the US citizens, there was only one level of needs since all needs were
considered equally important. With regards to satisfaction of needs during the war, in the
US there were three levels: physiological needs, safety needs, and psychological needs
(social, self-esteem, and self-actualization). During the war, the satisfaction of
physiological needs and safety needs were separated into two independent needs while
during peacetime, they were combined as one. For the people of the Middle East, the
satisfaction of needs changed from three levels to two during wartime.[24][25][26]
A 1981 study looked at how Maslow's hierarchy might vary across age groups.[27] A
survey asked participants of varying ages to rate a set number of statements from most
important to least important. The researchers found that children had higher physical need
scores than the other groups, the love need emerged from childhood to young adulthood,
the esteem need was highest among the adolescent group, young adults had the highest
self-actualization level, and while old age had the highest level of security, it was needed
across all levels comparably. The authors argued that this suggested Maslow's hierarchy
may be limited as a theory for developmental sequence since the sequence of the love
need and the self-esteem need should be reversed according to age.
Maslow's hierarchy of needs
Maslow's Hierarchy of Needs is a "content theory" of motivation" (the other main one is
Herzberg's Two Factor Theory).
Maslow's theory consisted of two parts:
(1) The classification of human needs, and

(2) Consideration of how the classes are related to each other

The classes of needs were summarized by Maslow as follows:

How does the Hierarchy Work?

- A person starts at the bottom of the hierarchy (pyramid) and will initially seek to satisfy
basic needs (e.g. food, shelter)
- Once these physiological needs have been satisfied, they are no longer a motivator. the
individual moves up to the next level
- Safety needs at work could include physical safety (e.g. protective clothing) as well as
protection against unemployment, loss of income through sickness etc)
- Social needs recognize that most people want to belong to a group. These would include
the need for love and belonging (e.g. working with colleague who support you at work,
teamwork, communication)
- Esteem needs are about being given recognition for a job well done. They reflect the
fact that many people seek the esteem and respect of others. A promotion at work might
achieve this
- Self-actualization is about how people think about themselves - this is often measured
by the extent of success and/or challenge at work

Maslow's model has great potential appeal in the business world. The message is clear - if
management can find out which level each employee has reached, then they can decide
on suitable rewards.
Problems with the Maslow Model
There are several problems with the Maslow model when real-life working practice is
- Individual behavior seems to respond to several needs - not just one
- The same need (e.g. the need to interact socially at work) may cause quite different
behavior in different individuals
- There is a problem in deciding when a level has actually been "satisfied"
- The model ignores the often-observed behavior of individuals who tolerate low-pay for
the promise of future benefits
- There is little empirical evidence to support the model. Some critics suggest that
Maslow's model is only really relevant to understanding the behavior of middle-class
workers in the UK and the USA (where Maslow undertook his research).

Q: Decision-Making
Decision-making is a central responsibility of good governance at both national and local
levels. Democracy in principle requires that decision-making involve participation by all
members of society. Even in a majoritarian representative system, a spirit of inclusiveness
is preferable. Decentralizing responsibilities to local levels so that they are more
accessible to people outside of the political system is one important way to increase
inclusiveness. Avoiding corruption in order to limit the influence of insiders and the way
decision is a choice made between 2 or more available alternatives.
Decision Making is the process of choosing the best alternative for reaching
Managers make decisions affecting the organization daily and communicate those
decisions to other organizational members.
Some decisions affect a large number of organization members, cost a great deal of
money to Carry out, or have a long term effect on the organization. Such significant
decisions can have a major impact, not only on the management systems itself, but on the
career of the manager who makes them.

Other decisions are fairly insignificant, affecting only a small member of organization
members, costing little to carry out, and producing only a short term effect on the
Programmed decisions are routine and repetitive, and the organization typically develops
specific ways to handle them. A programmed decision might involve determining how
products will be arranged on the shelves of a supermarket. For this kind of routine,
repetitive problem, standard arrangement decisions are typically made according to
established management guidelines.
Non programmed decisions are typically one shot decisions that are usually less
structured than programmed decision.

The Decision Makers

Goals to be served
Relevant Alternatives
Ordering of Alternatives
Choice of Alternatives


Decision making steps this model depicts are as follows:

Identify an existing problem

List possible alternatives for solving the problem
Select the most beneficial of these alternatives.
Implement the selected alternative.
Gather feedback to find out if the implemented alternative is solving the
identified problem.

Q: 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",[1]
although there are alternative definitions of leadership. For example, some understand a
leader simply as somebody whom people follow, or as somebody who guides or directs
others[citation needed], while others define leadership as "organizing a group of people to
achieve a common goal"

1. "Great Man" Theories:

Have you ever heard someone described as "born to lead?" According to this point of
view, great leaders are simply born with the necessary internal characteristics such as
charisma, confidence, intelligence, and social skills that make them natural-born leaders.
Great man theories assume that the capacity for leadership is inherent that great leaders
are born, not made. These theories often portray great leaders as heroic, mythic and
destined to rise to leadership when needed. The term "Great Man" was used because, at
the time, leadership was thought of primarily as a male quality, especially in terms of
military leadership.

2. Trait Theories:
Similar in some ways to Great Man theories, trait theories assume that people inherit
certain qualities and traits that make them better suited to leadership. Trait theories often
identify particular personality or behavioral characteristics shared by leaders. For
example, traits like extraversion, self-confidence, and courage are all traits that could
potentially be linked to great leaders.
If particular traits are key features of leadership, then how do we explain people who
possess those qualities but are not leaders? This question is one of the difficulties in using
trait theories to explain leadership. There are plenty of people who possess the
personality traits associated with leadership, yet many of these people never seek out
positions of leadership.

3. Contingency Theories:
Contingency theories of leadership focus on particular variables related to the
environment that might determine which particular style of leadership is best suited for
the situation. According to this theory, no leadership style is best in all situations. Success
depends upon a number of variables, including the leadership style, qualities of the
followers and aspects of the situation.

4. Situational Theories:
Situational theories propose that leaders choose the best course of action based upon
situational variables. Different styles of leadership may be more appropriate for certain
types of decision-making. For example, in a situation where the leader is the most
knowledgeable and experienced member of a group, an authoritarian style might be most

appropriate. In other instances where group members are skilled experts, a democratic
style would be more effective.

5. Behavioral Theories:
Behavioral theories of leadership are based upon the belief that great leaders are made,
not born. Consider it the flip-side of the Great Man theories. Rooted in behaviorism, this
leadership theory focuses on the actions of leaders not on mental qualities or internal
states. According to this theory, people can learn to become leaders through teaching and

6. Participative Theories:
Participative leadership theories suggest that the ideal leadership style is one that takes
the input of others into account. These leaders encourage participation and contributions
from group members and help group members feel more relevant and committed to the
decision-making process. In participative theories, however, the leader retains the right to
allow the input of others.

7. Management Theories:
Management theories, also known as transactional theories, focus on the role of
supervision, organization and group performance. These theories base leadership on a
system of rewards and punishments. Managerial theories are often used in business; when
employees are successful, they are rewarded; when they fail, they are reprimanded or
punished. Learn more about theories of transactional leadership.

8. Relationship Theories:
Relationship theories, also known as transformational theories, focus upon the
connections formed between leaders and followers. Transformational leaders motivate
and inspire people by helping group members see the importance and higher good of the
task. These leaders are focused on the performance of group members, but also want each
person to fulfill his or her potential. Leaders with this style often have high ethical and
moral standards.
What do managers do? One good answer to this question comes from the late Peter
Drucker, whose name that stands out above all others in the century-long history of
management studies.
A native of Vienna, Austria, Mr. Drucker was an intellectual who worked as a journalist
and studied economics. At some point in his studies he had an epiphany: economists, he
realized, were interested in the behavior of commodities, while I was interested in the
behavior of people. That led him to, in effect, create the modern study of management.
Mr. Drucker divided the job of the manager into five basic tasks. The manager, he wrote:
1) Sets objectives. The manager sets goals for the group, and decides what work needs to
be done to meet those goals.

2) Organizes. The manager divides the work into manageable activities, and selects
people to accomplish the tasks that need to be done.
3) Motivates and communicates. The manager creates a team out of his people, through
decisions on pay, placement, promotion, and through his communications with the team.
Drucker also referred to this as the integrating function of the manager.
4) Measures. The manager establishes appropriate targets and yardsticks, and analyzes,
appraises and interprets performance.
5) Develops people. With the rise of the knowledge worker, this task has taken on added
importance. In a knowledge economy, people are the companys most important asset,
and it is up to the manager to develop that asset.
While other management experts may use different words and focus on different aspects
of these responsibilities, Mr. Druckers basic description of the managers job still holds.
A short summary of the role of managers under authoritarian and participative styles of
management. Also covers decision taking and the basic characteristics of each style.


Managers do as they are told, Work (responsibility) is delegated.
transmit orders.
Manager co-ordinates own group's work with that of the group in
which he is a subordinate.
Manager clears difficulties out of path of subordinate.


Work can be a source of satisfaction (voluntarily performed) or

punishment (avoided) dependent on controllable conditions
(manager and management).
Decisions are made at the top. Participation in decision making at all levels.
Military type of organisation.
'Line and staff'.
'Chain of command'.

View of peopleAssumes that people hate

People learn not only to accept, but to seek greater responsibility
work, have to be forced to do (work at a higher level).
it, have to be forced to achieve
company's objectives.
In modern industrial life, most people's intellectual potential is
only partially utilised.
Fear motivation.
Reward motivatio
We need 'a certain level' or
'more' unemployment.

Relevant Current and Associated Works

Style of Management and Major review and analysis of the style of management and its effect on management effectiveness,
decision taking and standard of living. Measures of style of management and government. Overcoming
problems of size. Management effectiveness can be increased by 20-30 percent.

Directing and Managing How to plan ahead, find best strategies, decide and implement, agree targets and objectives, monitor
and control progress, evaluate performance, carry out appraisal and target-setting interviews. Describes
Motivation Summary

proved, practical and effective techniques.

Reviews and summarizes past work in Motivation. Provides a clear definition of 'motivation', of the
factors which motivate and of what people are striving to achieve.

The Will to Work: What

People Struggle to

Major review, analysis and report about motivation and motivating. Covers remuneration and job
satisfaction as well as the factors which motivate. Develops a clear definition of 'motivation'. Lists
what people are striving and struggling to achieve, and progress made, in corporations, communities,


Comprehensive review. Outstanding is the section on functional relationships. Shows how to improve
co-ordination, teamwork and co-operation. Discusses the role and responsibilities of managers in
different circumstances.

Work and Pay

Major review and analysis of work and pay in relation to employer, employee and community.
Provides the underlying knowledge and understanding for scientific determination and prediction of
rates of pay, remuneration and differentials, of National Remuneration Scales and of the National
Remuneration Pattern of pay and differentials.

Work and Pay: Summary Concise summary review of whole subject of work and pay, in clear language. Covers pay, incomes

and differentials and the interests and requirements of owners and employers, of the individual and his
family, and of the community.

Exporting and Importing Discusses exporting and importing of employment and unemployment, underlying principles, effect of
trade, how to reduce unemployment, social costs of unemployment, community objectives, support for
of Employment and
enterprises, socially irresponsible enterprise behavior.
Transfer Pricing and

One of the most controversial operations of multinationals, transfer pricing, is clearly described and
defined. An easily-followed illustration shows how transfer pricing can be used by multinationals to
maximize their profits by tax avoidance and by obtaining tax rebates. Also discussed is the effect of
transfer pricing on the tax burden carried by other tax payers.

Inflation, Balance of
Payments and Currency
Exchange Rates

Reviews the relationships, how inflation affects currency exchange rates and trade, the effect of
changing interest rates on share prices and pensions. Discusses multinational operations such as
transfer pricing, inflation's burdens and worldwide inequality.

Social Responsibility,
Profits and Social

Incidents, disasters and catastrophes are here put together as individual case studies and reviewed as a
whole. We are facing a sequence of events which are increasing in frequency, severity and extent.
There are sections about what can be done about this, on community aims and community leadership,
on the world-wide struggle for social accountability.

Social Responsibility and Outlines basic causes of socially irresponsible behaviour and ways of solving the problem. Statement
Accountability: Summary of aims. Public demonstrations and protests as essential survival mechanisms. Whistle-blowing.
Worldwide struggle to achieve social accountability.

Co-operatives and Cooperation: Causes of

Failure, Guidelines for

Based on eight studies of co-operatives and mutual societies, the report's conclusions and
recommendations cover fundamental and practical problems of co-ops and mutual societies, of
members, of direction, of management and control. There are extensive sections on Style of
Management, decision-taking, management motivation and performance, on General Management
principles and their application in practice.

Shows how to communicate more effectively, covering aspects of thinking, writing, speaking and
Using Words to
Communicate Effectively listening as well as formal and informal communications. Consists of guidelines found useful by
university students and practicing middle and senior managers.

Community and Public


This report objectively evaluates community ownership and reviews the reasons both for nationalizing
and for privatizing. Performance, control and accountability of community-owned enterprises and
industries are discussed. Points made are illustrated by a number of striking case-studies.

Ownership and Limited


Discusses different types of enterprises and the extent to which owners are responsible for repaying the
debts of their enterprise. Also discussed are disadvantages, difficulties and abuses associated with the
system of Limited Liability, and their implications for customers, suppliers and employees.

Ownership and Deciding A short statement which describes the system by which a company's majority shareholders decide
policy and control the company.
Policy: Companies,
Shareholders, Directors
and Community
Creating, Patenting and Evaluates problems in genetic manipulation, and consequences of private ownership of new life-forms
Marketing of New Forms by multinationals. Lists conclusions and recommendations about man-made forms of life, their
ownership and patenting, about improving the trend of events.
of Life
The Right to Strike

Discusses and defines the right to strike, the extent to which people can strike and what this implies.
Also discussed are aspects of current problems such as part-time work and home working, Works
Councils, uses and misuses of linking pay to a cost-of-living index, participation in decision-taking,
upward redistribution of income and wealth.

Reorganising the National 1984 report which has become a classic study of the application and effect of General Management
principles and of ignoring them.
Health Service:
An Evaluation of the
Griffiths Report