1.

2 INTERNATIONAL ACCOUNTING
1. “All of us know that the total of the both sides of the Trail balance and Balance sheet are
must be matched, however in many occasions total of the two sides of the statements may not
be matched because of several reasons.” Discuss.

2. “Cost – Volume Profit (CVP) analysis is well known as well as most useful analytical tool
for assessing and comparing the benefits derived by the user of the product or service against
what they are paying.” Comment.
3. “Preparation of cash budget is helpful to resolve many systematic questions of an
organization, however in very few occasions the cash budget is failed to detect uneven cash
flows.” why and how?– Discuss.
4. “As a financial analyst, how would you address and resolve the various issues involved in
international financial statements analysis?” – Explain.
1.3 INTERNATIONAL ECONOMICS
1. Discuss India’s balance of payment position since 2000 and adjustments mechanism
adopted by India.
2. Explain the theory of customs union on its relevance to developing countries.
3. Critically discuss the monetary approach to the balance of payment problem.
4. Discuss the methods adopted for foreign exchange control.
1.4 INTERNATIONAL BUSINESS ENVIRONMENT
1. Why do Firms go International? Discuss the Problems Faced by MNC’S in introducing
new Product.
2. Do you think that study of international business environment is relevant for the manager?
If yes (or) No, Justify your views and Discuss the economic and financial environment of
international business.
3. Judge how the business and cultural environment shape the behavior of a organization of
your choice.
4. Is your firm home-region oriented, Bi-region oriented or host-region oriented or global,
according to Vugman and Verdeke’s criteria? Show how you reach your conclusion.
1.5 FOREIGN POLICY OF INDIA
1. What are some of the major factors that have influenced the yen/dollar exchange rate in the
past decade? Have different factors become more important at different times? It so, which
ones?
2. “Major global powers influenced the foreign policy of India – New India is gradually
gaining momentum to influence the foreign polices of major powers” Elucidate.
3. India’s role in the development of Bangladesh and Srilanka is noteworthy. But their
attitude towards India is not encouraging. What goes wrong? How such problems can be
solved?
4. Analyze the following issues related to India’s foreign policy.
A. China – India Border Issue.
B. Pakistan – India Border issue.
C. India’s claim for permanent seat in the UN Security Council..
1.6 INFORMATION TECHNOLOGY AND E-COMMERCE
1. Information technology is moving towards maturity? Do you agree or disagree? Justify
your views.
2. Give some examples of IT dependencies that are likely to be found in a strategy but cannot
be resolved through the iterative process. How can the effects of dependencies external to the
firm are mitigated.
3. Assume you are the manager of a department in which each of your employees has a
workstation interconnected to all other in the department through a LAN. The LAN itself is
connected to the firm’s central processing facility. Discuss the important factors that would
be involved in the recovery management process for your department.
4. System control and availability must across the boundary dividing manual and automated
processes. Using the account payable program as an example. Discuss the shift in
responsibility at the interface.
1.7 COMMUNICATION FOR GLOBAL MANAGERS
1. “Ineffective communication is the fault of the sender.” Do you agree or disagree? Discuss.
Explain how ineffective communication disturb doing business globally.
2. Narrate the features of different types of reports. Present the structure of scientific report.
Prepare a report to highlight the ever increasing rate of attrition in the organization.
3. Draft a speech on “Business Ethics” to be delivered in a meeting of Chamber of Commerce
and industry at Chennai.
4. Make out a new report concerning untapped potentials in the handicrafts sector of your
country thought which there will be a scope to mobilize Foreign Currency reserves.
1.8 ORGANISATIONAL BEHAVIOUR
1. Understanding the basic concepts of Organizational Behaviour prepare a
Behavioural frame work for a newly established IT company in Chennai. – Student can
imagine the size and turnover of the industry.
Ans:
Organizational Behavior (OB) can be defined as the understanding, prediction and
management of human behavior both individually or in a group that occur within an
organization.
Internal and external perspectives are the two theories of how organizational behavior can be
viewed from an organization’s point of view. In this tutorial, we will be learning in detail
about both the theories.
While working in an organization, it is very important to understand others behavior as well
as make others understand ours. In order to maintain a healthy working environment, we
need to adapt to the environment and understand the goals we need to achieve. This can be
done easily if we understand the importance of OB.
Following points bring out the importance of OB −
 It helps in explaining the interpersonal relationships employees share with each other as
well as with their higher and lower subordinates.
 The prediction of individual behavior can be explained.
 It balances the cordial relationship in an enterprise by maintaining effective
communication.
 It assists in marketing.
 It helps managers to encourage their sub-ordinates.
 Any change within the organization can be made easier.
 It helps in predicting human behavior & their application to achieve organizational goals.
 It helps in making the organization more effective.
Thus studying organizational behavior helps in recognizing the patterns of human behavior
and in turn throw light on how these patterns profoundly influence the performance of an
organization.
Although organization behaviour is extremely complex and includes many inputs and
dimensions, the cognitive, behaviouristic, and social cognitive theoretical frameworks can be
used to develop an overall model. 
BEHAVIOUR FRAMEWORKS
There is an increasing trend towards organisations to develop and use behaviour
frameworks as part of their performance management/appraisal system either
complementing their skills and competency models or replacing them altogether. So, if you
are not yet one of the organisations to follow the trend what are behaviour frameworks and
what might be the benefits.
What are Behaviour Frameworks?
Behaviour frameworks differ from skills and competency models in a number of ways.
Typically, competency models describe the skills and competencies required for a
particular role at a number of levels usually directly related to the grading system. Often
managers will rate their staff against the competencies and use this rating to identify
development needs. They may also be used to justify why someone is at the grade they are
or to support a promotion.
Unlike Competency Models, behaviour frameworks are not related to a role but are directly
related to the Values of the organisation. They usually consist of a number of behaviour
statements or descriptions that provide generic examples of how the organisation expects it
s employees to behave in respect of each of the organisations values. Often these
behaviours are described at three or more levels but are not directly related to the grading
system as it is recognised that there can be significant difference in the behaviours required
for different roles. For example a Call Centre operative might require a higher level of
customer facing behaviours than a back office finance clerk with no customer contact.
How are Behaviour Frameworks used?
The main purpose of behaviour frameworks is to help staff in organisations to live the
values in their day to day work. They are primarily used: for use in agreeing and evaluating
how staff are behaving as part of performance management/appraisal; as a guide for
individual learning and development; to support recruitment and selection. The main
benefit of behaviour frameworks is that they give managers the opportunity to have
discussions about peoples behaviour in ways that it is difficult to do with skill and
competency models. By using examples of behaviour which relate to an individuals actual
role the manager is able to have a discussion which enable them to:
• praise good behaviours and use them as an exemplar to others
• identify and discuss unacceptable behaviours and offer alternative behaviours
• point out higher level behaviours that would useful to acquire for future development
Some of the feedback from managers who have used behaviour frameworks in appraisal for
the first time is often quite dramatic as they discover the ability to tackle behaviours that
have been ignored for years.
The most emerging model of the today’s corporate era is the system model. This
model emerged from the rigorous research to attain the higher level of meaning at
work. Today’s employees need more than salary and security from their job, they need
the hours they are putting towards the organization is giving them some value and
meaning.   To add to it, they need the work that is ethical, respectful, integrated with
trust and integrity and gives a space to develop a community feeling among the co-
workers.
In the system model, the expectations of the managers are much more than getting the
work done by the employees. The managers have to show their emotional side, be
more compassionate and caring towards their team and they must be sensitive towards
the needs of the diverse workforce. They have to devote their attention to creating the
feeling of optimism, hope, trustworthiness, courage, self-determination, and through
this, they try to develop the positive work culture  where the employees feel more at
ease and work as if they are working for their family.   This ultimately results in the
long time commitment and loyalty of the employees and the success of the company.
Managers also try to foster two main concepts; authenticity and transparency and
social intelligence.   Managers always try to make the employees feel the part of the
project and the organization and give them all the support so that they can increase
their efficiency and output.   In turn, the employees feel more emotionally and
psychologically part of the organization and become more responsible for their
actions. Employees feel more inspired, motivated, important and feel that what they
are doing and what they think would be good for the organization which goes beyond
their personal achievements.
The models have been originated perceiving the changing employee needs with each
model have been the stepping stone for the more productive and useful model. To
assume that any one of the models has been the best model is wrong as no model is
hundred percent perfect but have been evolving all through the years with the changes
in our perception, study and social conditions that have been affecting the human
behavior.  Any of the above models can be modified, applied and extended in many
different ways.  As there has been advancement in the collective understanding of the
human behavior, the new social condition emerged and with it there has been an
evolution of the new model.
It sector:
The global sourcing market in India continues to grow at a higher pace compared to
the IT-BPM industry. India is the leading sourcing destination across the world,
accounting for approximately 55 per cent market share of the US$ 185-190 billion
global services sourcing business in 2017-18. Indian IT & ITeS companies have set
up over 1,000 global delivery centres in about 80 countries across the world.
India has become the digital capabilities hub of the world with around 75 per cent of
global digital talent present in the country.
India’s IT & ITeS industry grew to US$ 167 billion in 2017-18. Exports from the
industry increased to US$ 126 billion in FY18 while domestic revenues (including
hardware) advanced to US$ 41 billion.
Spending on Information Technology in India is expected to grow over 9 per cent to
reach US$ 87.1 billion in 2018.*
Revenue from digital segment is expected to comprise 38 per cent of the forecasted
US$ 350 billion industry revenue by 2025.

CASE OF XYZ:
Established in 2018, the company designs and delivers technology enabled business solutions. Their
offerings span business and technology consulting, application services, system integration, product
engineering, custom software development, BPO etc. The company has 500 employees and a large
global presence in India, China, UK, Canada and Japan.

It defines effectiveness in the broader context of the internal and external environment. It
emphasizes that managers must deal with the internal and external aspects of organizational
behavior and views the organization as one of many interdependent elements. The organization
depends on the external environment for two kinds of inputs, which it transforms into outputs, and
then releases in the hope that the external environment will accept them.

These two inputs are:

a. Human Inputs—employees and natural resources

b. Non-human inputs (e.g., equipment, information, raw materials).

An important aspect of the systems theory is the feedback. Feedback, or information that reflects
the outcomes of an act or series of acts, enables the organization to adjust to environmental
demands. (Feedback would include market research, financial reports, customer complaints, etc.)
Systems theory emphasizes two important considerations:

a. An organization's ability to adapt to environmental demands;

b. Management’s ability to focus on the input-process-output cycle and maintain this three-part
flows of activity. The idea of the "learning organization," which evolves from the systems theory,
suggests that organizations learn, adapt, and change by acquiring knowledge, distributing
information, and interpreting information.

Two types of learning are:

a. Generative learning— learning how to learn.

b. Facilitative learning—learning to learn through teaching

Systems theory is used to integrate organizational effectiveness and time. In Systems theory
the organization is considered as one element of a larger system of number of elements, the
environment, that act interdependently. The organization takes resources (inputs) from the
external environment, processes these resources and returns them in changed form
(output).According to Systems theory, effectiveness criteria must reflect the entire input-
process-output cycle, not simply output and must also reflect the interrelationships between
the organization and its outside environment. In relation to environmental circumstances
organization passes through different phases of lifecycle like forming, developing, maturing
and declining and the appropriate criteria of effectiveness must reflect the stage of the
organization’s life cycle. The criteria of effectiveness are also time based like Short run
( results of actions concluded in a year or less), Intermediate run ( when effectives of
individual, group or organization is considered for a longer period, perhaps five years) and
Long run ( for this the time frame is indefinite future).Four Short run effectiveness criteria are
quality, productivity, efficiency and satisfaction. Three intermediate criteria are quality,
adaptiveness, efficiency and satisfaction. The two long run criteria are quality and survival
Effectiveness criteria must reflect the stage of the organization's life-cycle (which includes
stages of growth, maturation and decline) and short, intermediate, and long-term
perspectives.
1. Quality—overarching criteria of effectiveness that involves meeting customers' needs and
expectations. Statistical Quality Control (SQC) and Total Quality Control (TQC) rank among
the most used programs for building quality throughout organizations, as well as in their
products and services.
2. Productivity—reflects the relationship between inputs and outputs. It excludes
consideration of efficiency. Measures of productivity include profit, sales, market share,
patients released, clients served.
3. Efficiency— it is the ratio of outputs to inputs. Efficiency focuses on the entire input-
process-output cycle, emphasizing input and process. Measures of efficiency include rate of
return on capital or assets, unit cost, scrappage and waste, downtime, occupancy rates and
cost per patient/student/client etc.
4. Satisfaction—the extent to which the organization meets employee needs. It recognizes the
organization as a social system that must benefit its participants. Measures of satisfaction
include turnover, absenteeism, and employee attitudes.
5. Adaptiveness—degree to which the organization can and does respond to internal and
external changes. It relates to management's ability to sense environmental changes and
changes within the organization. There are no specific, concrete measures of adaptiveness,
but certain programs (e.g., employee training and career counseling) increase its capacity to
deal with it.
6. Development—ability of the organization to increase its capacity to deal with
environmental demands. It means that an organization must invest in itself to increase its
chances of survival in the long run. Training programs and organizational development
programs represent the organization's investment in survival. An organization can be
effective in the short run but the organization’s adaptation with the external environment and
its efforts for development at each of the lifecycle stages will ensure the survival of the
organization in the environment-the ultimate criterion of organizational effectiveness in the
long run.
The behaviours framework is a set of core behaviours which define ‘how’ we are expected to
approach our work and sits alongside ‘what’ we do, as outlined in each of our job descriptions. The
framework details the behaviours and attitudes required by all employees and it supports the
delivery of our business plan, values and culture.

In this organization:

There are six sets of behaviours for every member of staff, regardless of their role and grade in the
organisation. All six behaviours are divided into three categories with individual descriptions which
clarify how they relate to the way we work. The three categories are:

Expected – Our required behaviours for all members of staff

Desirable – Staff should seek to demonstrate these behaviours

Aspirational – These behaviours are required by employees looking to develop and those in senior or
managerial positions.

Every member of staff will be provided with clarity on their behavioural expectations in a discussion
with their line manager. These behavioural requirements are taken seriously; compliance with these
guidelines will form part of regular discussions with your line manager and continued disregard of
behavioural requirements will be resolved quickly and efficiently.

The behaviours are supported by the following processes and initiatives:

Recruitment - Applicants are interviewed and selected following behavioural based interviewing for
cultural-fit as well as job-fit.

Corporate awards - Staff demonstrating outstanding behaviour and being an advocate for the values
and culture of the council are recognised and awarded through our monthly and annual corporate
awards scheme.

Performance management - Staff are managed, supervised and appraised for their work
performance (in terms of task delivery) and behaviours (for reviewing the approach taken to work).

Learning and development - Personal development planning takes place as part of the performance
management processes and corporate learning materials and training is available to support staff to
deliver the required behaviours.

Partnership working and transformation - The way in which we work with our partners is key to
delivering the business plan and our transformation programme; the behaviours framework is
central to the success of this and to the development of relationships and information sharing with
our partners.

Policy - The behaviours are fully supported by the policies, processes and guidance designed to
support the workforce and our managers.

Well-being initiatives – They recognise that an individual’s well-being can be affected by negative
behaviour and we will ensure support is available and easy to access.
2. To understand the importance of the concepts personality, perception, and attitude of
employees in an organization, prepare an interview schedule, conduct an interview with 2-3
executives of any one organization and present the results.
3. After listing out the qualities and theories of leadership have a discussion with one or
two world leaders of your choice and present the outcome.
Ans:
In current business marketplace, leadership style has great role in organization's economic
wealth and progress. Leadership is indispensable in an organization because leader' trait may
affect the success of organization. The major intent of every organization is to cultivate. The
relationship between the management and employees has a great impact to that effect.
Concept of leadership is defined as a process in which a leader tries to influence his or her
followers to establish and achieve a goal or goals. Leadership is the capacity to lead others
and command. It is a process of an act or instance of guiding; direction, guidance, lead,
management. Leadership is appreciated in business culture, especially when it helps to attain
goals that are helpful to the organization. It is elaborated in managerial studies that leadership
is a social influence process. Leadership cannot exist without a leader and one or more
followers. Leadership prompts controlled action on the part of followers. The voluntary
nature of compliance separates leadership from other types of influence based on formal
authority. Ultimately, leadership results in followers' behaviour that is determined and goal-
directed in some sort of organized setting.

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Huge theoretical literature is available to explain the style of leadership and its impact on
organization. According to Kouzes (2002), "Leadership is not a place, it's not a position, and
it's not a secret code that can't be deciphered by ordinary people. Leadership is an observable
set of skills and abilities. Of course some people are better at it than others". In the academic
literature, leadership has been recognized as significant topic in the field of organizational
behaviour. Leadership is one with the most dynamic effects during individual and
organizational interaction. It is said that ability of management to perform "collaborated
effort" depends on leadership capability. According to Lee and Chuang (2009), the brilliant
leader not only inspires subordinate?s potential to enhance efficiency but also meets their
requirements in the process of achieving organizational goals. Stogdill (1957), described
leadership as the individual behaviour to guide a group to achieve the common target.
Another theorist, Fry (2003), explicates leadership as use of leading strategy to offer inspiring
motive and to enhance the staff?s potential for growth and development.
Leadership includes the ultimate source of power but has that positive ability in persuading
other individuals and to be innovative in decision making. Bennis and Nanus stated that,
many organizations are over managed and under led. The difference is crucial, managed are
people who do things right, but leaders are people who do the right things always. Leadership
mainly deals with influence. A manager may or may not be an effectual leader. A leader's
ability to influence others may be based on a variety of factors other than his or her formal
authority or position. Historically, there are three major leadership theories which included
the trait approach (1930s and 1940s), the behaviour al approach (1940s and 1950s), and the
contingency or situational approach (1960s and 1970s).
Historical Leadership Theories

Trait Approach
The scientific study of leadership initiated with the traits of effective leaders. The basic
principle behind trait theory was that effective leaders are born, not made, thus the name
sometimes applied to early versions of this idea, the "great man" theory. Many leadership
studies based on this theoretical framework were conducted in the 1930s, 1940s, and 1950s.
Leader trait research scrutinized the physical, mental, and social characteristics of
individuals. In general, these studies simply looked for significant associations between
individual traits and measures of leadership effectiveness. Physical traits such as height,
mental traits such as intelligence, and social traits such as personality attributes were all
subjects of empirical research.
Trait theory was condemned on various grounds and experts emphasized the behaviour
aspects for developing good leadership quality in an individual. In his famous study, Stogdill
concluded that 'A person does not become a leader by virtue of the possession of some
combination of traits (1948). Trait theory was contradicted by behaviourist theorist who
asserted that the behaviours displayed by leaders are more important than their physical,
mental, or emotional traits.

Leader Behaviour Approach

Behavioural theory was developed in response to the need to account for employee behaviour
and motivation. The shift moved management from a production-orientation to a leadership
style focused on the workers' human need for work-related satisfaction and good working
conditions. Likert stated that organizational effectiveness depends considerably on successful
leadership provided by managers. By involving the process of employee participation in
structuring the work and the work environment, a manager can successfully lead people
towards achieving organizational goals. Likert identified four main styles of leadership-
Exploitative, Benevolent authoritative, Consultative and Participative or Democratic.
Explorative leadership style is highly production oriented. Such leader does not involve the
subordinates in any decision making. He uses fear, threat, rewards or punishments to coerce
the subordinates into compliance. Benevolent Authoritative Leadership Style has a very
superior attitude. The leader-employee relationship for him is like a master- servant
relationship. This type of a leader trusts his employees have enough confidence in them to
seek and use their ideas. Consultative Leadership Style is displayed by those managers who
show so much confidence in their subordinates that they consult them before taking any
decision related to organization function. In participative or Democratic leadership style,
leaders functioning in democratic style believe in open communication within the group and
facilitate involvement of the workers in the decision making process. They highlight on group
goals and perform to achieve the common organizational goals.
Behavioural theories of leadership do not look for inborn traits or capabilities. Rather, they
observe what leaders actually do. Behavioural theory encourages the value of leadership
styles with an emphasis on concern for people and collaboration. It promotes participative
decision making and team development by supporting individual needs and aligning
individual and group objectives.

Contingency (situational) Approach

Contingency or situational theories of leadership recommend that the organizational or work
group context affects the extent to which given leader traits and behaviours will be
successful. Contingency theories gained importance in the late 1960s and 1970s. Four of the
more recognized contingency theories are Fiedler's contingency theory, path-goal theory, the
Vroom-Yetton-Jago decision-making model of leadership, and the situational leadership
theory. Fiedler's contingency theory was the first to identify how situational factors interact
with leader traits and behaviour to influence leadership effectiveness. The theory proposes
that the "favourability" of the situation decides the effectiveness of task- and person-oriented
leader behaviour. Fiedler's contingency theory has been criticized on both conceptual and
methodological grounds. However, empirical research has supported many of the specific
propositions of the theory, and it remains an important contribution to the understanding of
leadership effectiveness.
Another approach of leadership is Path-goal theory which proposes that subordinates'
characteristics and characteristics of the work surroundings decide which leader behaviours
will be more successful. Main characteristics of subordinates identified by the theory are
locus of control, work experience, ability, and the need for affiliation. Important
environmental characteristics named by the theory are the nature of the task, the formal
authority system, and the nature of the work group. The theory includes four different leader
behaviours, which include directive leadership, supportive leadership, participative
leadership, and achievement-oriented leadership. The path-goal theory is a process in which
leaders select specific behaviours that are best suited to the employees' needs and the working
environment so that they may best guide the employees through their path in the obtainment
of their daily work activities (goals) (Northouse, 2013). Theorists disapproved this theory on
the basis of fact that it does not consider interactions among the contingency factors and also
because of the complexity of its underlying theoretical model, expectancy theory. Empirical
research has provided some support for the theory's propositions, mainly as they relate to
directive and supportive leader behaviours. Basic steps in path goal theories are as follows:

1. Determine the employee and environmental characteristics

2. Select a leadership style
3. Focus on motivational factors that will help the employee succeed

The Vroom-Yetton-Jago decision-making model was initiated by Victor Vroom and Phillip
Yetton in 1973 and modifies by Vroom and Jago in 1988. The theory focuses principally on
the degree of subordinate involvement that is suitable in different situations. It emphasizes
the decision-making style of the leader. Many challengers criticized the Vroom-Yetton-Jago
model for its complexity, for its assumption that the decision makers' goals are consistent
with organizational goals, and for ignoring the skills needed to arrive at group decisions to
difficult problems.
Currently, theoretical frameworks for the study of leadership have been advanced and new
theories are proposed that include leader-member exchange theory, transformational
leadership theory, the substitutes for leadership approach, and the philosophy of servant
leadership.
Leader-member exchange theory was introduced by George Graen and various social groups
in the 1970s and has been modified. This theory highlights the dyadic relationships between
leaders and individual subordinates, instead of the traits or behaviours of leaders or
situational characteristics. Theory indicates that leaders do not treat all subordinates in the
same manner, but establish intimate relationships with some (the in-group) while remaining
stay aloof from others (the out-group). Those in the in-group enjoy relationships with the
leader that is marked by trust and mutual respect. They tend to be involved in important
activities and decisions. Equally, those in the out-group are excluded from important
activities and decisions.

Transformational Leadership Theories

Transformational leadership theory distinguishes between the transactional and the
transformational leader. Transactional leadership concentrates on role and task requirements
and utilizes rewards contingent on performance. Whereas, transformational leadership deals
with developing mutual trust, fostering the leadership abilities of others, and setting goals that
go beyond the short-term needs of the work group. Bass's transformational leadership theory
recognized four aspects of effective leadership, which include charisma, inspiration,
intellectual stimulation, and consideration. A leader who shows these qualities will motivate
subordinates to be high achievers and put the long-term interest of the organization ahead of
their own short-term interest, according to the theory.

Substitutes for Leadership Theory

Substitutes for leadership are actually important in many different organizational settings, but
their existence is not explicated in any of the dominant leadership theories. Kerr and Jermier
initiated the substitutes for leadership theory in 1978. The theory is related with providing a
description for the lack of stronger empirical support for a relationship between leader traits
or leader behaviours and subordinates' satisfaction and performance. The substitutes for
leadership theory propose that characteristics of the organization, the task, and subordinates
may substitute for or negate the effects of leadership, thus weakening observed relationships
between leader behaviours and important organizational outcomes. This theory states that
there are aspects of the situation that can reduce the importance of leadership. It sorts these
aspects into two categories: substitutes (an aspect of the situation that leads employees to
behave in the same way that a leader would get them to behave) and neutralizers (a
neutralizer is something that lessens the effect of something else). If substitutes for leadership
work, then leaders would not be required. The main contribution of leadership Substitutes
theory is that it has offered insights into how employees might be encouraged to work hard
by means other than through the formal leader. Influence leaders provide could also come in
part from work design, reward systems, peer leadership, and self-management. The leader is
only one source of influence on employee efforts and behaviour.

Servant Leadership
This theoretical approach of leadership reflects that leaders should be servants first. Servant-
leadership, first proposed by Robert K. Greenleaf in 1970, is a theoretical structure that
promotes a leader's primary motivation and role as service to others. It advocates that leaders
must place the needs of subordinates, customers, and the community ahead of their own
interests in order to be effective. Features of servant leaders include empathy, stewardship,
and commitment to the personal, professional, and spiritual growth of their subordinates.
Servant leadership has not been subjected to wide empirical testing but has created
substantial attention among both leadership scholars and practitioners. Servant-leadership,
therefore, emphasizes core personal characteristics and beliefs over any specific leadership
techniques. Servant-leadership is admired for its importance on a "holistic" approach to the
individual worker, one that addresses his or her spiritual as well as economic needs. Lee and
Zemke (1993), for example, point to the instabilities of today's work environment. Servant-
leadership has been broadly applied in the workplace, demonstrating its potential as a
practical as well as theoretical approach to organizational management.
Leadership style is the manner and approach of providing direction, implementing plans, and
motivating people. As seen by the employees, it includes the total pattern of explicit and
implicit actions performed by their leader (Newstrom, Davis, 1993). It is found in numerous
studies that three types of leadership are common in business which include authoritarian,
democratic and laissez-faire. Each type of leadership impacts organizational performance in a
different way. Authoritarian leadership is commanding and sets clear expectations for
employees in the organizational. Democratic leadership promotes feedback and input from
managers or employees regarding organizational performance. Laissez-faire is a hands-off
approach, where managers and employees work according to their own preference and
schedule. This leadership style can lead to poor motivation and work practices. Organizations
are successful when managers and employees have healthy relationships. Leadership can be
an evolutionary process in firms. Business holders who provide leadership can change an
employee from a worker completing projects to a valuable team member. Leadership skills
can assist in changing an employee's mentality by instilling an ownership mind-set. Many
studies have demonstrated that role of leadership is critically important to accomplish the
performance of organizations (Boal and Hooijberg, 2000; Peterson). A good leader uses all
three styles, depending on what forces are involved between the followers, the leader, and the
situation.
To summarize, leadership is about coping with change. Leaders establish direction by
developing a vision of the future; then they support people by communicating this vision and
inspiring them to beat hurdles. Organizations need strong leadership for good performance.
While a good leader may give direction to organization.

4. Identify a suitable case to understand Organizational Culture, analyze the case and present
it with issues and strategies.