Course: Management Theory & Practice (9503)

Semester: Spring 2020

ASSIGNMENT No. 1
Q. 1 Discuss evolution of management theories in detail.
The first know management idea were recorded in 500B.C When Sumerian traders develop written records for
government and commercial use. The application of management is also evident in the Egyptian civilization as
early as 4000-3000 B.C. The pyramid of Egypt built with millions of stone blocks by utilising the services of
people are the testimonials of a coordinated effort on an extremely large scale .Creation of such huge structure
would have certainly required extensive planning ,decision-making, organising men and materials and
supervision.
Roman also made significant contribution to management, which is reflected in western military hierarchy and
public administration systems. It would not possible to manage the large roman empire without application of
sound management principle. Techniques were developed by army commander to motivate their army and
slaves to perform the assigned task in accordance with their actual potential.
Management and organization are products of their historical and social times and places. Thus, we can
understand the evolution of Management theory in terms of how people have wrestled with matters of
relationships at particular times in history.
Early management theory consisted of numerous attempts at getting to know these newcomer’s to industrial life
at the end of the nineteenth century and beginning of the twentieth century in Europe and the United States.
Early Writings on Management
People have been change shaping and reshaping organization for many centuries. Works of several writers in
the area of governance of kingdoms and man management created a literature that assisted in the development
of modern management theories. The writers was writing about how to make organisation effective and
efficient. The early leadership and management models were provided by military, political, mythological and
religious organisations. some early writing that subsequently influenced the development of managerial thought
are described below.
Sun Tzu’s The Art of War: This book on military strategy was written by Chinese general Sun Tzu in the 16th
century BC .But, the writings in the book very well been used for managerial purposes. The book recommends
that success can be archived by being aware of utilising the organisation’s strength and utilising them to exploit
the weaknesses of the rival or enemy. It emphasises the importance of discipline in order to get the thing done
through a coordinated group effort.
Chanakya’s Arthashastra : This treatise, developed around third century BC, deal with the governance of
kingdom by a king or a leader while making the policies of governance and people management. It highlights
the importance of creation of department, development of detailed job profiles and qualifications of
administrations who had to manage these departments a director. Arthashastra considerably affected the
administrative philosophy of different ruler of India for centuries.
 Course: Management Theory & Practice (9503)
Semester: Spring 2020

Machiavelli’s The Prince: This book written by Niccilo Machiavelli in 1531 as a counsel for the leadership of
Florence, Italy. Machiavelli recommended in this classic that the end justify the mean and that a leader should
use fear, not hatred, to maintain control.
Although Sun Tzu ,Chanakya and Machiavelli was trying to development a theory of management, insights
teach us an important lesson about Management. And its help to think about management of organization.
Effect of the Industrial Revolution on Management
The industrial Revolution made a significant contribution to the development of management thought before the
20th century. The substitution of human power with machine power made it possible to manufacture goods in
large numbers in factories more economically. Consequently, there emerged large-scale business which
required managerial skills to produce goods in an efficient and profitable manner. The growing size and
complexity of business organisation led to the requirement of managers to various business-related task, like
assessing the demand of goods, ensuring the availability of raw materials, assigning the task to factory workers,
supervising the production and sales of goods, maintaining quality standard etc.
The first textbook of management was written by J. Duncan in 1911 and the early comprehensive theories on
management appeared around 1920.The discipline of management got a strong foundation. When Harvard
University became one of the first American universities to offered graduate degree in business management in
1908.The curriculum for teaching management was based on the analysis of relevant real situations in the
business world.
Different school of management thought
Early Management Theory include Scientific management theory school, classical organisation theory school ,
the behavioural school, and management science school. Keep one important fact in mind: The managers and
Theorists who developed these assumption about human relationship.
The scientific Management school
Scientific Management theory arose in part of from the need to increase productivity. In the united states
especially ,skilled labour was short supply at the beginning of the twentieth century. To increase the
productivity was to increase efficiency of workers. There for ,Frederick W.Tylor, Henry L.Gantt, and Frank and
Lillian Gilbreth devised the body of principle know as scientific management theory .
Frederick w. Tylor (1856-1915)
Taylor’s famous work principle of scientific Management was published in 1911.The fundamental principles
that Taylor saw underlying the scientific approach to management are as follows:
 Replacing rules of thumb with science (organised knowledge)
 Obtaining the harmony, rather than discord, in group action .
 Achieving cooperation of human being, rather than restricted output.
 Working for maximum output, rather than restricted output.

2
 Course: Management Theory & Practice (9503)
Semester: Spring 2020

 Developing all workers to the fullest extent possible for their own and their company’s highest
prosperity.
 His philosophy on four basic principal:
 The development of a true science of management, so that the best method for performing each task
could be determined.
 The scientific selection of workers, so that each workers would be given responsibility for the task for
his or her was best suited.
 The scientific education and development of the worker.
 Intimate, friendly cooperation between management and labour.
Taylor believed that a high division of labour was needed to produce more output, and he was introduced a
differential rate system(this meant that the workers received more an amount of wages per ‘piece’ that
encourage employer to pay more productive workers at the higher rate than others that would profit both
company and workers. This method of management paid close attention to ‘time and motion ‘studies. (e.g. if it
took a worker 2 minutes to perform a task, then this could be done 30 times per hour, and 240 times in an 8
-hour day).
Henry l. Gannt (1816-1919)
Henry L.Gantt worked with Taylor on several project. He believed that every workers who finished a day’s
assigned work load would win a 50-cent bonus .After he added a second motivation. The supervisor would earn
a extra bonus for each worker who reach the daily task, plus an extra bonus if all workers reached it .He was
made individual bar chart which show workers performance that rated and publicly and recorded on chart.
Find out how UKEssays.com can help you!
Our academic experts are ready and waiting to assist with any writing project you may have. From simple essay
plans, through to full dissertations, you can guarantee we have a service perfectly
The Gilbreths
Frank B and Lillian M Gilbreths (1868-1924 and 1878-1972) made their contribution to the scientific
management movement as husband and wife team .Lillian and frank collaborated on fatigue and motion studies
and focused on ways of promoting individual worker’s welfare. After using the camera, they tried to find the
most economical motion of each task in order to upgrade performance and reduce fatigue.
Classical organization theory school
Scientific management was concerned with increasing the productivity of the shop and the individual worker.
Classical organization theory grew out of the need to find guideline’s for managing such complex organisation
as factories.
Henery Fayol (1841-1925)
He is generally hailed as the founder of the classical management school. And he was not the first to investigate
managerial behaviour because he was the first to systematize it. Fayol that sound management practice fallen
3
 Course: Management Theory & Practice (9503)
Semester: Spring 2020

into certain pattern that can be easily identified and analysed .he was also interested in the total organization and
focused on management ,which he felt had been the most neglected of business operation.Fayol made principles
which “most frequently had to apply “before he believed that managers are born ,not made ” .
It emphasised to following factor as being essential to an effective management process.
 The division of labour.
 A tall organisational structure.
 A wide span of control
 An authoritarian style of management.
Source ;Henri Royal Industries and General Administration,J.A.Caubrough,trans.(Geneva International
Management institute ,1930)
Max weber (1864-1920)
Max weber developed a theory of bureaucratic management that stressed the need for a strictly defined
hierarchy governed by clearly defined regulation and lines of authority. He considered the ideal organization to
be a bureaucracy whose activities and objectives were explicitly spelled out. He was also believed that technical
competence should be emphasized and that performance evaluation should be made entirely on the basis on
merit .
Mary Parker Follett (1868-1933)
Mary parker Follett was among those who built on the basic framework of the classical school .However she
introduced new element, especially in the area of the human relations and organization structure. In this, she
initiated trends that would be future developed by the emerging behavioural and management science schools.
Follett convinced that no one could become a whole person expect as a member of a group, a person grew
through their relationships with other in organisation .She belived that the artificial distinction between
managers (order givers) and subordinates(order takers)obscured this natural patership. she was a great belived
in the power of group ,where individuals could combine their diverse talents into something bigger.
The Behavioral School:
The Behavioral school emerged partly because the classical approach did not achieve sufficient production
efficiency and workplace harmony. To manager’s frustration, people did not always follow predicted or
expected patterns of behaviour. Thus there was increased interest in helping managers deal more effectively
with the “people side” of their organizations. The behavioural school of management thought began late in the
scientific management, but a achieve large scale recognition in 1930’s
The Human Relations Movement
Human relations management emerged in the 1920’s and deal with the human aspects of organization .It is
frequently used as a general term to describe the way in which managers interact with their employees. When
“employee management” stimulates more and better work, organisation has effective human relationship; When
morale and efficiency deteriorate, its human relation are said to be ineffective.
4
 Course: Management Theory & Practice (9503)
Semester: Spring 2020

From Human Relations To The Behavioral Science Approach

Mayo and his colleagues pioneered the use of the scientific method in their studies of people in the work
environment. Later researchers, more rigorously trained in the social science (psychology, sociology and
anthropology) ,used more sophisticated research method and became known as “behavioural scientists” rather
then “human relation theorist’s.”
The behavioural scientists brought two dimensions to the study of management and organizations.
Self -actualizing people, Their work spawned new thinking about how relationships can be beneficial arranged
in organizations. They also determined that people wanted more than “instantaneous” pleasure or rewards.
Behavioural scientists applied the methods of scientific investigation to the study of how people behaved in
organization as whole entities.
The Management science school
At the beginning of world War II ,Great Britain desperately needed to solve number of new ,complex problem
in warfare. With survival at the sake ,the british were able to achieve significant technological and tactical
breakthroughs. When American entered the war ,they formed what they called operational research teams,
based on the successful British model, to solve similar problems.
New Industrial technologies were being put into use and transportation and communication were becoming
more complicated. These development brought with them a host of problem that could not be solved easily by
conventional mean. Over the years, OR procedures were formalized into what is now more generally called The
Management Science School.
The management science school gained popularity through post war phenomena are as follows-
First ,The development of high -speed computers and of communications among computers provided the means
for trackling complex and large -scale organizational problems
Second, Robert M.C. Namara implemented a management science approach at Ford Motor Company in the
1950s and 1960s.
To conclude a detailed report on management evolution and its various functions, how they help an organisation
to progress in their operations. The first part shows the evolution of management, how and when it started. The
second part tells us about the functions of management giving a detailed explanation about how these functions
differ from each other and their importance in an organisation.
The basic objective of management is handling people or a situation for achievement of certain goals. As a
Noun, the word management refer to the person who perform the act (s) of management. But, from a functional
or implementation perspective, management is a process that involves planning organising, resourcing,
directing and controlling different activities for the accomplishment of desired goals. Management is also
approached as a mechanism of creative problem solving. The creative problem solving is accomplished through
four functions of management: planning, organising , leading and controlling (Higgins1,1994).

5
 Course: Management Theory & Practice (9503)
Semester: Spring 2020

In early twentieth century, Mark Parker Follett 2 defined management in simple words as the art of getting thing
done through people. According to Koontz and Weihrich3 (2008),’Management is the process of designing and
maintaining an environment in which individuals, working together in groups, efficiently accomplish selected
aims.”
Theories are perspectives with which people make sense of their world experiences. Formally, a theory is a
coherent group of assumptions put forth to explain the relationship between two or more observable facts. John
Clancy calls such perspectives “invisible powers” to emphasize several crucial uses of theories ,the “unseen”
ways in which we approach our world.
First, theories provide a staple focus for understanding what we experience. A theory provides criteria for
determining what is relevant. To Henry Ford ,a large and compliant work force was one relevant factor as he
theorised about his business. In other words ,his theory of management included, among other thing, this
assumption about the supply of labour.
Second, theories enable us to communicate efficiently and thus move into more and more complex relationships
with other people. Imagine the frustration you would encounter if, in dealing with other people, you always had
to define even the most basic assumptions you make about the world in which you live; Because ford and his
managers fully understood Ford’s theory about manufacturing automobiles, they could interact easily as they
faced day-to-day challenges.
Third, theories make it possible indeed, challenge us to keep learning about our world. By definition, theories
have boundaries; there is only so much that can be covered by any one theory. Once we are aware of this, we
are better able to ask ourselves if there are alternative way of looking at the world(especially when our theories
no longer seem to “fit” our experience) and to consider the consequences of adopting alternative beliefs.
The Evolution of Management Theory
Introduction
The first know management idea were recorded in 500B.C When Sumerian traders develop written records for
government and commercial use. The application of management is also evident in the Egyptian civilization as
early as 4000-3000 B.C. The pyramid of Egypt built with millions of stone blocks by utilising the services of
people are the testimonials of a coordinated effort on an extremely large scale .Creation of such huge structure
would have certainly required extensive planning ,decision-making, organising men and materials and
supervision.
Roman also made significant contribution to management, which is reflected in western military hierarchy and
public administration systems. It would not possible to manage the large roman empire without application of
sound management principle. Techniques were developed by army commander to motivate their army and
slaves to perform the assigned task in accordance with their actual potential.

6
 Course: Management Theory & Practice (9503)
Semester: Spring 2020

Management and organization are products of their historical and social times and places. Thus, we can
understand the evolution of Management theory in terms of how people have wrestled with matters of
relationships at particular times in history.
Early management theory consisted of numerous attempts at getting to know these newcomer’s to industrial life
at the end of the nineteenth century and beginning of the twentieth century in Europe and the United States.
Early Writings on Management
People have been change shaping and reshaping organization for many centuries. Works of several writers in
the area of governance of kingdoms and man management created a literature that assisted in the development
of modern management theories. The writers was writing about how to make organisation effective and
efficient. The early leadership and management models were provided by military, political, mythological and
religious organisations. some early writing that subsequently influenced the development of managerial thought
are described below.
Sun Tzu’s The Art of War: This book on military strategy was written by Chinese general Sun Tzu in the 16th
century BC .But, the writings in the book very well been used for managerial purposes. The book recommends
that success can be archived by being aware of utilising the organisation’s strength and utilising them to exploit
the weaknesses of the rival or enemy. It emphasises the importance of discipline in order to get the thing done
through a coordinated group effort.
Chanakya’s Arthashastra : This treatise, developed around third century BC, deal with the governance of
kingdom by a king or a leader while making the policies of governance and people management. It highlights
the importance of creation of department, development of detailed job profiles and qualifications of
administrations who had to manage these departments a director. Arthashastra considerably affected the
administrative philosophy of different ruler of India for centuries.
Machiavelli’s The Prince: This book written by Niccilo Machiavelli in 1531 as a counsel for the leadership of
Florence, Italy. Machiavelli recommended in this classic that the end justify the mean and that a leader should
use fear, not hatred, to maintain control.
Although Sun Tzu ,Chanakya and Machiavelli was trying to development a theory of management, insights
teach us an important lesson about Management. And its help to think about management of organization.
Effect of the Industrial Revolution on Management
The industrial Revolution made a significant contribution to the development of management thought before the
20th century. The substitution of human power with machine power made it possible to manufacture goods in
large numbers in factories more economically. Consequently, there emerged large-scale business which
required managerial skills to produce goods in an efficient and profitable manner. The growing size and
complexity of business organisation led to the requirement of managers to various business-related task, like
assessing the demand of goods, ensuring the availability of raw materials, assigning the task to factory workers,
supervising the production and sales of goods, maintaining quality standard etc.
7
 Course: Management Theory & Practice (9503)
Semester: Spring 2020

The first textbook of management was written by J. Duncan in 1911 and the early comprehensive theories on
management appeared around 1920.The discipline of management got a strong foundation. When Harvard
University became one of the first American universities to offered graduate degree in business management in
1908.The curriculum for teaching management was based on the analysis of relevant real situations in the
business world.
Different school of management thought
Early Management Theory include Scientific management theory school, classical organisation theory school ,
the behavioural school, and management science school. Keep one important fact in mind: The managers and
Theorists who developed these assumption about human relationship.
The scientific Management school
Scientific Management theory arose in part of from the need to increase productivity. In the united states
especially ,skilled labour was short supply at the beginning of the twentieth century. To increase the
productivity was to increase efficiency of workers. There for ,Frederick W.Tylor, Henry L.Gantt, and Frank and
Lillian Gilbreth devised the body of principle know as scientific management theory .
Frederick w. Tylor (1856-1915)
Taylor’s famous work principle of scientific Management was published in 1911.The fundamental principles
that Taylor saw underlying the scientific approach to management are as follows:
 Replacing rules of thumb with science (organised knowledge)
 Obtaining the harmony, rather than discord, in group action .
 Achieving cooperation of human being, rather than restricted output.
 Working for maximum output, rather than restricted output.
 Developing all workers to the fullest extent possible for their own and their company’s highest
prosperity.
 His philosophy on four basic principal:
 The development of a true science of management, so that the best method for performing each task
could be determined.
 The scientific selection of workers, so that each workers would be given responsibility for the task for
his or her was best suited.
 The scientific education and development of the worker.
 Intimate, friendly cooperation between management and labour.
Taylor believed that a high division of labour was needed to produce more output, and he was introduced a
differential rate system(this meant that the workers received more an amount of wages per ‘piece’ that
encourage employer to pay more productive workers at the higher rate than others that would profit both
company and workers. This method of management paid close attention to ‘time and motion ‘studies. (e.g. if it

8
 Course: Management Theory & Practice (9503)
Semester: Spring 2020

took a worker 2 minutes to perform a task, then this could be done 30 times per hour, and 240 times in an 8
-hour day).
Henry l. Gannt (1816-1919)
Henry L.Gantt worked with Taylor on several project. He believed that every workers who finished a day’s
assigned work load would win a 50-cent bonus .After he added a second motivation. The supervisor would earn
a extra bonus for each worker who reach the daily task, plus an extra bonus if all workers reached it .He was
made individual bar chart which show workers performance that rated and publicly and recorded on chart.
The Gilbreths
Frank B and Lillian M Gilbreths (1868-1924 and 1878-1972) made their contribution to the scientific
management movement as husband and wife team .Lillian and frank collaborated on fatigue and motion studies
and focused on ways of promoting individual worker’s welfare. After using the camera, they tried to find the
most economical motion of each task in order to upgrade performance and reduce fatigue.
Classical organization theory school
Scientific management was concerned with increasing the productivity of the shop and the individual worker.
Classical organization theory grew out of the need to find guideline’s for managing such complex organisation
as factories.
Henery Fayol (1841-1925)
He is generally hailed as the founder of the classical management school. And he was not the first to investigate
managerial behaviour because he was the first to systematize it. Fayol that sound management practice fallen
into certain pattern that can be easily identified and analysed .he was also interested in the total organization and
focused on management ,which he felt had been the most neglected of business operation.Fayol made principles
which “most frequently had to apply “before he believed that managers are born ,not made ” .
It emphasised to following factor as being essential to an effective management process.
 The division of labour.
 A tall organisational structure.
 A wide span of control
 An authoritarian style of management.
Source ;Henri Royal Industries and General Administration,J.A.Caubrough,trans.(Geneva International
Management institute ,1930)
Max weber (1864-1920)
Max weber developed a theory of bureaucratic management that stressed the need for a strictly defined
hierarchy governed by clearly defined regulation and lines of authority. He considered the ideal organization to
be a bureaucracy whose activities and objectives were explicitly spelled out. He was also believed that technical
competence should be emphasized and that performance evaluation should be made entirely on the basis on
merit .
9
 Course: Management Theory & Practice (9503)
Semester: Spring 2020

Mary Parker Follett (1868-1933)

Mary parker Follett was among those who built on the basic framework of the classical school .However she
introduced new element, especially in the area of the human relations and organization structure. In this, she
initiated trends that would be future developed by the emerging behavioural and management science schools.
Follett convinced that no one could become a whole person expect as a member of a group, a person grew
through their relationships with other in organisation .She belived that the artificial distinction between
managers (order givers) and subordinates(order takers)obscured this natural patership. she was a great belived
in the power of group ,where individuals could combine their diverse talents into something bigger.
The Behavioral School:
The Behavioral school emerged partly because the classical approach did not achieve sufficient production
efficiency and workplace harmony. To manager’s frustration, people did not always follow predicted or
expected patterns of behaviour. Thus there was increased interest in helping managers deal more effectively
with the “people side” of their organizations. The behavioural school of management thought began late in the
scientific management, but a achieve large scale recognition in 1930’s
The Human Relations Movement
Human relations management emerged in the 1920’s and deal with the human aspects of organization .It is
frequently used as a general term to describe the way in which managers interact with their employees. When
“employee management” stimulates more and better work, organisation has effective human relationship; When
morale and efficiency deteriorate, its human relation are said to be ineffective.
From Human Relations To The Behavioral Science Approach
Mayo and his colleagues pioneered the use of the scientific method in their studies of people in the work
environment. Later researchers, more rigorously trained in the social science (psychology, sociology and
anthropology) ,used more sophisticated research method and became known as “behavioural scientists” rather
then “human relation theorist’s.”
The behavioural scientists brought two dimensions to the study of management and organizations.
Self -actualizing people, Their work spawned new thinking about how relationships can be beneficial arranged
in organizations. They also determined that people wanted more than “instantaneous” pleasure or rewards.
Behavioural scientists applied the methods of scientific investigation to the study of how people behaved in
organization as whole entities.
Q. 2  Talk over fundamentals of decision making process. Also discuss decision making tools. Illustrate your
answer with examples.
Managers are constantly called upon to make decisions in order to solve problems. Decision making and
problem solving are ongoing processes of evaluating situations or problems, considering alternatives, making
choices, and following them up with the necessary actions. Sometimes the decision‐making process is
extremely short, and mental reflection is essentially instantaneous. In other situations, the process can drag on
10
 Course: Management Theory & Practice (9503)
Semester: Spring 2020

for weeks or even months. The entire decision‐making process is dependent upon the right information being
available to the right people at the right times.
The decision‐making process involves the following steps:
1.Define the problem.

2.Identify limiting factors.

3.Develop potential alternatives.

4.Analyze the alternatives.

5.Select the best alternative.

6.Implement the decision.

7.Establish a control and evaluation system.

Define the problem
The decision‐making process begins when a manager identifies the real problem. The accurate definition of the
problem affects all the steps that follow; if the problem is inaccurately defined, every step in the decision‐
making process will be based on an incorrect starting point. One way that a manager can help determine the true
problem in a situation is by identifying the problem separately from its symptoms.
The most obviously troubling situations found in an organization can usually be identified as symptoms of
underlying problems. (See Table for some examples of symptoms.) These symptoms all indicate that something
is wrong with an organization, but they don't identify root causes. A successful manager doesn't just attack
symptoms; he works to uncover the factors that cause these symptoms.

11
 Course: Management Theory & Practice (9503)
Semester: Spring 2020

All managers want to make the best decisions. To do so, managers need to have the ideal resources —
information, time, personnel, equipment, and supplies — and identify any limiting factors. Realistically,
managers operate in an environment that normally doesn't provide ideal resources. For example, they may lack
the proper budget or may not have the most accurate information or any extra time. So, they must choose
to satisfice — to make the best decision possible with the information, resources, and time available.
Time pressures frequently cause a manager to move forward after considering only the first or most obvious
answers. However, successful problem solving requires thorough examination of the challenge, and a quick
answer may not result in a permanent solution. Thus, a manager should think through and investigate several
alternative solutions to a single problem before making a quick decision.
One of the best known methods for developing alternatives is through brainstorming, where a group works
together to generate ideas and alternative solutions. The assumption behind brainstorming is that the group
dynamic stimulates thinking — one person's ideas, no matter how outrageous, can generate ideas from the
others in the group. Ideally, this spawning of ideas is contagious, and before long, lots of suggestions and ideas
flow. Brainstorming usually requires 30 minutes to an hour. The following specific rules should be followed
during brainstorming sessions:
Concentrate on the problem at hand. This rule keeps the discussion very specific and avoids the group's
tendency to address the events leading up to the current problem.
Entertain all ideas. In fact, the more ideas that come up, the better. In other words, there are no bad ideas.
Encouragement of the group to freely offer all thoughts on the subject is important. Participants should be

12
 Course: Management Theory & Practice (9503)
Semester: Spring 2020

encouraged to present ideas no matter how ridiculous they seem, because such ideas may spark a creative
thought on the part of someone else.
Refrain from allowing members to evaluate others' ideas on the spot. All judgments should be deferred
until all thoughts are presented, and the group concurs on the best ideas.
Although brainstorming is the most common technique to develop alternative solutions, managers can use
several other ways to help develop solutions. Here are some examples:
Nominal group technique. This method involves the use of a highly structured meeting, complete with an
agenda, and restricts discussion or interpersonal communication during the decision‐making process. This
technique is useful because it ensures that every group member has equal input in the decision‐making process.
It also avoids some of the pitfalls, such as pressure to conform, group dominance, hostility, and conflict, that
can plague a more interactive, spontaneous, unstructured forum such as brainstorming.
Delphi technique. With this technique, participants never meet, but a group leader uses written questionnaires
to conduct the decision making.
No matter what technique is used, group decision making has clear advantages and disadvantages when
compared with individual decision making. The following are among the advantages:
Groups provide a broader perspective.
Employees are more likely to be satisfied and to support the final decision.
Opportunities for discussion help to answer questions and reduce uncertainties for the decision makers.
These points are among the disadvantages:
This method can be more time‐consuming than one individual making the decision on his own.
The decision reached could be a compromise rather than the optimal solution.
Individuals become guilty of groupthink — the tendency of members of a group to conform to the prevailing
opinions of the group.
Groups may have difficulty performing tasks because the group, rather than a single individual, makes the
decision, resulting in confusion when it comes time to implement and evaluate the decision.
The results of dozens of individual‐versus‐group performance studies indicate that groups not only tend to make
better decisions than a person acting alone, but also that groups tend to inspire star performers to even higher
levels of productivity.
So, are two (or more) heads better than one? The answer depends on several factors, such as the nature of the
task, the abilities of the group members, and the form of interaction. Because a manager often has a choice
between making a decision independently or including others in the decision making, she needs to understand
the advantages and disadvantages of group decision making.
The purpose of this step is to decide the relative merits of each idea. Managers must identify the advantages and
disadvantages of each alternative solution before making a final decision.
Evaluating the alternatives can be done in numerous ways. Here are a few possibilities:
13
 Course: Management Theory & Practice (9503)
Semester: Spring 2020

Determine the pros and cons of each alternative.

Perform a cost‐benefit analysis for each alternative.
Weight each factor important in the decision, ranking each alternative relative to its ability to meet each factor,
and then multiply by a probability factor to provide a final value for each alternative.
Regardless of the method used, a manager needs to evaluate each alternative in terms of its
Feasibility — Can it be done?
Effectiveness — How well does it resolve the problem situation?
Consequences — What will be its costs (financial and nonfinancial) to the organization?
After a manager has analyzed all the alternatives, she must decide on the best one. The best alternative is the
one that produces the most advantages and the fewest serious disadvantages. Sometimes, the selection process
can be fairly straightforward, such as the alternative with the most pros and fewest cons. Other times, the
optimal solution is a combination of several alternatives.
Sometimes, though, the best alternative may not be obvious. That's when a manager must decide which
alternative is the most feasible and effective, coupled with which carries the lowest costs to the organization.
(See the preceding section.) Probability estimates, where analysis of each alternative's chances of success takes
place, often come into play at this point in the decision‐making process. In those cases, a manager simply
selects the alternative with the highest probability of success.
Managers are paid to make decisions, but they are also paid to get results from these decisions. Positive results
must follow decisions. Everyone involved with the decision must know his or her role in ensuring a successful
outcome. To make certain that employees understand their roles, managers must thoughtfully devise programs,
procedures, rules, or policies to help aid them in the problem‐solving process.
Ongoing actions need to be monitored. An evaluation system should provide feedback on how well the decision
is being implemented, what the results are, and what adjustments are necessary to get the results that were
intended when the solution was chosen.
Q. 3  What are the characteristics and purposes of planning? Also discuss advantages and limitations of
Planning.
Advantages of Planning:
Planning is one of the crucial functions of management. It is basic to all other functions of management. There
will not be proper organization and direction without proper planning. It states the goals and means of achieving
them.
Above all other things, planning is important for the following reasons:
1. Attention on Objectives:
Planning helps in clearly laying down objectives of the organization. The whole attention of management is
given towards the achievement of those objectives. There can be priorities in objectives, important objectives to
be taken up first and others to be followed after them.
14
 Course: Management Theory & Practice (9503)
Semester: Spring 2020

2. Minimizing Uncertainties:
Planning is always done for the future. Nobody can predict accurately what is going to happen. Business
environments are always changing. Planning is an effort to foresee the future and plan the things in a best
possible way. Planning certainly minimizes future uncertainties by basing its decisions on past experiences and
present situations.
3. Better Utilization of Resources:
Another advantage of planning is the better utilization of resources of the business. All the resources are first
identified and then operations are planned. All resources are put to best possible uses.
4. Economy in Operations:
The objectives are determined first and then best possible course of action is selected for achieving these
objectives. The operations selected being better among possible alternatives, there is an economy in operations.
The method of trial and error is avoided and resources are not wasted in making choices. The economy is
possible in all departments whether production, sales, purchases, finances, etc.
5. Better Co-ordination:
The objectives of the organization being common, all efforts are made to achieve these objectives by a
concerted effort of all. The duplication in efforts is avoided. Planning will lead to better co-ordination in the
organization which will ultimately lead to better results.
6. Encourages Innovations and Creativity:
A better planning system should encourage managers to devise new ways of doing the things. It helps
innovative and creative thinking among managers because they will think of many new things while planning. It
is a process which will provide awareness for individual participation and will encourage an atmosphere of
frankness which will help in achieving better results.
7. Management by Exception Possible:
Management by exception means that management should not be involved in each and every activity. If the
things are going well then there should be nothing to worry and management should intervene only when things
are not going as per planning. Planning fixes objectives of the organization and all efforts should be made to
achieve these objectives. Management should interfere only when things are not going well. By the introduction
of management by exception, managers are given more time for planning the activities rather than wasting their
time in directing day-to-day work.
8. Facilitates Control:
Planning and control are inseparable. Planning helps in setting objectives and laying down performance
standards. This will enable the management to cheek performance of subordinates. The deviations in
performance can be rectified at the earliest by taking remedial measures.

15
 Course: Management Theory & Practice (9503)
Semester: Spring 2020

9. Facilitates Delegation:
Under planning process, delegation of powers is facilitated. The goals of different persons are fixed. They will
be requiring requisite authority for getting the things clone. Delegation of authority is facilitated through
planning process.
Limitations of Planning:
Despite of many advantages of planning, there may be some obstacles and limitations in this process. Planning
is not a panacea for all the ills of the business. Planning will only help in minimizing uncertainties to a certain
extent.
The following are some of the limitations of planning:
1. Lack of Reliable Data:
Planning is based on various facts and figures supplied to the planners. If the data on which decisions are based
are not reliable then decisions based on such information will also be unreliable. Planning will lose its value if
reliable facts and figures are not supplied.
2. Time Consuming Process:
Practical utility of planning is sometimes reduced by the time factor. Planning is a time- consuming process and
actions on various operations may be delayed because proper planning has not yet been done. The delay may
result in loss of opportunities. When time is of essence then advance planning loses its utility. Under certain
circumstances an urgent action is needed then one cannot wait for the planning process to complete.
3. Expensive:
The planning process is very expensive. The gathering of information and testing of various courses of action
involve greater amounts of money. Sometimes, expenses are so prohibitive that small concerns cannot afford to
use planning. The long-term planning is a luxury for most of the concerns because of heavy expenses. The
utility derived from planning in no case should be less than expenditure incurred on it.
According to Hainman, “The cost of planning should not be in excess of its contribution, and wise managerial
judgment is necessary to balance the expense of preparing the plans against the benefits derived from them.”
4. External Factors may Reduce Utility:
Besides internal factors there are external factors too which adversely affect planning. These factors may be
economic, social, political, technological or legal. The general national and international climate also acts as
limitation on the planning process.
5. Sudden Emergencies:
In case certain emergencies arise then the need of the hour is quick action and not advance planning. These
situations may not be anticipated. In case emergencies are anticipated or they have regularity in occurrence then
advance planning should be undertaken for emergencies too.

16
 Course: Management Theory & Practice (9503)
Semester: Spring 2020

6. Resistance to Change:
Most of the persons, generally, do not like any change. Their passive outlook to new ideas becomes a limitation
to planning. McFarland writes. “The principal psychological barrier is that executives, like most people have
more regard for the present than for the future. The present is not only more certain than the future, it is also
more desirable. Resistance to change is commonly experienced phenomenon in the business world. Planning
often implies changes which the executive would like to ignore, hoping they would not materialize.” The notion
that things planned for future are unlikely to happen is not based on logical thinking. It is the planning which
helps in minimizing future uncertainties.
An analysis of the above definition of planning brings to focus the following major component parts of
planning:
(a) Initial (or basic) planning; which is concerned with the determination of the objectives.
(b) Subsequent (or route) planning; which is concerned with the selection of best alternative course of action;
travelling through which the attainment of objectives is desired.
(c) Final (or operational) planning; wherein, the planner would analyses the technical, financial, personnel and
other aspects involved in implementing the pre-selected course of action.
Nature of Planning:
Nature of planning could be understood with reference to the features of planning which, for purposes of
clarity and quick comprehension have been classified into the following categories:
(a) Constitutional Features:
(i) Planning is goal oriented
(ii) Planning has a reference to future.
(iii) Planning is the primary function of management.
(iv) Planning involves choice.
(v) Planning is an intellectual (or mental) exercise.
(b) Operational Features:
(vi) Planning is all-pervasive.
(vii) Planning is both-long range and short range.
(viii) Planning is continuous
(c) Desirable Features:
(ix)Planning is actionable
(x) Planning is flexible
(xi) Planning is an integrated system
(xii) Planning is efficient
Let us examine briefly the above-stated features of planning:
(i) Planning is goal-oriented:
17
 Course: Management Theory & Practice (9503)
Semester: Spring 2020

Each and every plan-major or minor of an enterprise must make, at least, some contribution towards the
attainment of the common objectives of the enterprise. Accordingly, a plan which makes no contribution to the
common objectives is a useless plan-implying only a sheer wastage of the precious resource of the enterprise;
involved in the making and the implementation of the plan.
In fact, objectives are the beginning and end-points of planning. The planning process starts with the
determination of objectives; and the attainment of objectives marks the end-point of planning- making some
contribution towards the attainment of the common objectives of the enterprise.
(ii) Planning has a reference to future:
In fact, it is matter of common sense to understand that all planning is done for future; and in the context of
future conditions.
The past, as such has no relevance for planning. The only role of the past in planning is that while making a
plan for future for a second-time; the planner can recount on his experience of the past planning and could well
think, in terms of improving upon subsequent planning in the light of the experience of the past planning.
Point of comment:
A corollary of the above stated feature of planning is that forecasting is an essential aspect of planning. While
planning, the planner has to do a forecasting of the relevant economic, social, political and technological
conditions; within the framework of which the plan will have to operate.
The ultimate success or failure of planning would, among other things, very much depend on the accuracy of
forecasting done by the planner. Hence, it could be stated that forecasting is the heart of planning.
(iii) Planning is the primary function of management:
Though no sequence (or order) could be assigned to the performance of various managerial functions; yet, with
regard to planning, it could be stated that it is the primary (or first) function of management. In fact, the
performance of all other managerial functions viz. organizing, staffing, directing and controlling, would depend
on the nature and type of planning done earlier.
(iv) Planning involves choice:
Planning is fundamentally choosing. It is really, a problem of selecting from out of several alternatives. While
deciding about objectives, the planner has to select the best objective from among several objectives conceived
of by him. In fact, if there is only ‘one objective’ given to the planner; then, to that extent, there is no planning
problem.
Again, while deciding about a course of action to attain the pre-selected objective; the planner has to select the
best alternative course of action from among several alternatives available in the managerial situation.
Here, also, if the course of action to attain the objective is given; there is no planning problem. If, therefore,
both the objective and the course of action to attain the objective are given to a manager; the manager, as such,
is merely an operator having, nothing to do with anything of the ‘planning type’.
(v) Planning is an intellectual (or mental) exercise:
18
 Course: Management Theory & Practice (9503)
Semester: Spring 2020

Planning requires imagination, foresight and intelligence, on the part of the planner; by virtue of which qualities
the best objectives and the best courses of action, are selected by him. In fact, the quality of planning done by a
manager primarily depends on his thinking faculties possessed by him Needless to say that, the more intelligent
and experienced a manager is; the better would be the plans drafted by him.
(vi) Planning is all-pervasive:
As a function of management, planning is done by all managers from the highest to the lowest in the
management hierarchy. It is not the exclusive function, only of the managers at the top; as a layman might think
about it.
It is, however, true that managers at the top do more significant planning and the problems faced by them are
rather complex; while managers at middle and lower levels of management do their planning within the
framework of plans laid down by top management and subject to the policies specified in this regard. It must be
appreciated that for the success of the enterprise, planning at lower levels of management is not, at all, less
significant than planning done at the upper levels of management.
(vii) Planning is both – long range and short range:
Long-range planning usually covers a period from 3 to 5 or 7 years; while plans made for a period up to 1 year
(or even two years) are regarded as short-range plans. In fact, short range plans are a part of long-range plans;
and the two sets of plans must be integrated (or coordinated) perfectly to help realize the objectives of the over-
all planning of the enterprise.
(viii) Planning is continuous:
Planning is a continuous activity. Throughout the organisational life, when some existing plans are realized;
certain new plans are made to further the objectives of the enterprise, in the light of changing internal and
external environmental factors. As a matter of fact, the planning process continues so long as an enterprise is in
existence.
(ix) Planning is actionable:
An ideal requirement of planning is that it must be actionable. A plan is not just a ‘paper-plan’; which either is
not capable of implementation (being over-ambitious or impractical) or is never put into practice, for any
reasons whatsoever.
(x) Planning is flexible:
By ‘flexibility’ of planning, we mean that a plan is capable of modification, revision or readjustment, in future;
when some of those future environmental factors change on which the plan is based. If a plan is not capable of
revision etc. it might be rendered obsolete in the wake of changed future conditions causing all the investment
that has gone into the making of the plan, a complete waste.
(xi) Planning is an integrated system:

19
 Course: Management Theory & Practice (9503)
Semester: Spring 2020

Total planning of the enterprise must look like an integrated system i.e. various departmental plans, the plans of
superiors and subordinates and the long-range and short-range plans – all must be harmonized and fitted into an
integrated structure of planning.
(xii) Planning is efficient:
The usual commercial ‘cost-benefit formula’ is employed in the context of planning also – for judging how far
and to what extent, is a plan efficient or otherwise. A plan is efficient if the benefits (monetary and non-
monetary) obtained from the implementation of the plan exceed the costs (monetary and non-monetary)
associated with the making and the implementation of the plan
Q. 4  Describe the concept of authority and delegation of authority in detail. In practice, what are the
obstacles faced by the top management in delegation of authority?
Delegation of Authority: Importance and Difficulties Faced!
Difficulties Faced by Delegation of Authority:
There may arise certain difficulties in the process of delegation. The difficulties may be due to the attitude of
either superiors or subordinates or both. There may be certain defects in organizational structure which hamper
proper delegation of authority.
Some of the difficulties involved in delegation are as such:
1. Over Confidence of Superior:
The feeling in a superior that only he can do certain work effectively than others is the main difficulty in
delegation. When a manager is of the opinion that his subordinates will not be able to make proper decisions
then he will concentrate all powers with him and will not like to delegate his authority. This may not be due to
the incompetence of subordinates but due to the over- confidence of a superior.
2. Lack of Confidence in Subordinate:
The superior may be of the view that subordinates are not competent to carry out certain things of their own. He
may lack confidence in his subordinates. Under these (Circumstances superior will hesitate to delegate
authority.
3. Lack of Ability in Superior:
A superior may lack the ability to delegate authority to subordinates. The manager may not be able to identify
the areas where delegation is required. He may not even be able to chalk out the proper process of delegation.
The lack of competence on the part of superior restricts the delegation of authority.
4. Lack of Proper Controls:
There may not be proper controls in the organization which help the manager to keep in touch with performance
of subordinates. When certain controls like budgets, standard costs etc., are there then manager can exercise
adequate control over the performance of his subordinates. In the absence of such techniques he will not be able
to judge the performance of his subordinates. Since he will not be able to exercise control he will not like to
delegate authority.
20
 Course: Management Theory & Practice (9503)
Semester: Spring 2020

5. Lack of Proper Temperament of Superior:

The chief executive may be over-cautious or conservative by nature. He will not like to take the risk of
delegating authority. His fear will always be that something may not go wrong. The executives with this type of
temperament will hesitate to delegate authority. An element of risk cannot altogether be ruled out but certain
risk will have to be taken. The subordinates will learn only when given a chance to take independent decisions.
A lack of proper temperament of superior may also act as a barrier in delegation.
6. Inability of Subordinates:
There may also be shyness on the part of subordinates in assuming additional responsibility. They may avoid
botheration accruing from delegation of authority. The fear of committing mistakes or lack of confidence on the
part of subordinates may also act as a barrier in delegation of authority.
Importance of Delegation:
Delegation is a universally accepted principle. It has been practiced since time immemorial and in every field.
Delegation is necessary not only for a business undertaking but also for running a government. In government,
legislative bodies delegate their powers to Council of Ministers who in turn delegate to officers and so on.
Delegation is essential even for running a family because head of the family will have to get the help of various
members for performing various tasks.
An industrial undertaking benefits by delegation in the following ways:
1. Relieving Top Executives:
Top executives cannot perform and supervise each and every work. Moreover they are required to undertake
important tasks of planning and controlling. Delegation helps executives in delegating their work to subordinate
officers.
2. Improved Functioning:
In the absence of delegation some persons may be burdened with more tasks while others may not have
sufficient work to do. Delegation helps in rationalizing the functioning of an organization. Work is divided
among various persons in such a way that it is done in an efficient way. Nobody is unduly burdened and no
work is left unattended.
3. Use of Specialists:
Delegation enables the use of specialists for taking up different functions. A production manager will be
assigned the task of production, a sales manager will look after sales department, a lawyer will look after legal
matters and so on. The use of specialists for different functions will improve the quality of work.
4. Helps in Employee Development:
When subordinates are given independent assignments then they will be able to use their initiative and
experience. This will also give them confidence in taking up further responsibilities. Without delegation,
subordinates will not get a chance to try their knowledge. Delegation of power is the best way of developing
subordinates and preparing them for taking up more responsibilities in future.
21
 Course: Management Theory & Practice (9503)
Semester: Spring 2020

5. Helps in Expansion and Diversification:

The expansion and diversification of an enterprise needs the services of more and more persons. The
assignment of various tasks to subordinates will prepare them for undertaking new assignments. If subordinates
are not assigned important works earlier then it will be dangerous to give them independent tasks straight way.
Delegation is very useful for undertaking expansion and diversification plans.
3. Use of Specialists:
Delegation enables the use of specialists for taking up different functions. A production manager will be
assigned the task of production, a sales manager will look after sales department, a lawyer will look after legal
matters and so on. The use of specialists for different functions will improve the quality of work.
4. Helps in Employee Development:
When subordinates are given independent assignments then they will be able to use their initiative and
experience. This will also give them confidence in taking up further responsibilities. Without delegation,
subordinates will not get a chance to try their knowledge. Delegation of power is the best way of developing
subordinates and preparing them for taking up more responsibilities in future.
5. Helps in Expansion and Diversification:
The expansion and diversification of an enterprise needs the services of more and more persons. The
assignment of various tasks to subordinates will prepare them for undertaking new assignments. If subordinates
are not assigned important works earlier then it will be dangerous to give them independent tasks straight way.
Delegation is very useful for undertaking expansion and diversification plans.
For achieving delegation, a manager has to work in a system and has to perform following steps : -
1. Assignment of tasks and duties
2. Granting of authority
3. Creating responsibility and accountability
Delegation of authority is the base of superior-subordinate relationship, it involves following steps:-
1. Assignment of Duties - The delegator first tries to define the task and duties to the subordinate. He also
has to define the result expected from the subordinates. Clarity of duty as well as result expected has to
be the first step in delegation.
2. Granting of authority - Subdivision of authority takes place when a superior divides and shares his
authority with the subordinate. It is for this reason, every subordinate should be given enough
independence to carry the task given to him by his superiors. The managers at all levels delegate
authority and power which is attached to their job positions. The subdivision of powers is very important
to get effective results.
3. Creating Responsibility and Accountability - The delegation process does not end once powers are
granted to the subordinates. They at the same time have to be obligatory towards the duties assigned to
them. Responsibility is said to be the factor or obligation of an individual to carry out his duties in best
22
 Course: Management Theory & Practice (9503)
Semester: Spring 2020

of his ability as per the directions of superior. Responsibility is very important. Therefore, it is that
which gives effectiveness to authority. At the same time, responsibility is absolute and cannot be shifted.
Accountability, on the others hand, is the obligation of the individual to carry out his duties as per the
standards of performance. Therefore, it is said that authority is delegated, responsibility is created and
accountability is imposed. Accountability arises out of responsibility and responsibility arises out of
authority. Therefore, it becomes important that with every authority position an equal and opposite
responsibility should be attached.
Therefore every manager,i.e.,the delegator has to follow a system to finish up the delegation process. Equally
important is the delegatee’s role which means his responsibility and accountability is attached with the authority
over to here.
Relationship between Authority and Responsibility
Authority is the legal right of person or superior to command his subordinates while accountability is the
obligation of individual to carry out his duties as per standards of performance Authority flows from the
superiors to subordinates,in which orders and instructions are given to subordinates to complete the task. It is
only through authority, a manager exercises control. In a way through exercising the control the superior is
demanding accountability from subordinates. If the marketing manager directs the sales supervisor for 50 units
of sale to be undertaken in a month. If the above standards are not accomplished, it is the marketing manager
who will be accountable to the chief executive officer. Therefore, we can say that authority flows from top to
bottom and responsibility flows from bottom to top. Accountability is a result of responsibility and
responsibility is result of authority. Therefore, for every authority an equal accountability is attached.
Q. 5  Define leadership. Discuss various approaches to leadership in detail.
Most common modern approaches to leadership
1. Innovative leadership. Leaders gasp the entire situation and go beyond the usual course of action. They
are good at visualizing the future and know exactly what is working and what not as well as bring new
ideas and vision into reality.
2. Authoritative leadership. Leaders dictate procedures and policies, decide the goals that need to be
achieved, and control and direct activities without meaningful participation by other employees.
3. Pace setters. Considering that communication plays an important role in an effective leadership, pace
setter leaders use proper communication in setting high standards of performance for both the group and
themselves. They optimize behaviors that are sought from others in the group.
4. Servant. This is one of the most common approaches to leadership and the one most widely used in
practice. Leaders put their service to other people in the group before their own interest and include the
team in decision making.
5. Transformational. In today's modern world, the society is in need of transformational leaders who
would bring positive and meaningful changes. Transformational leadership is where the leaders expect
23
 Course: Management Theory & Practice (9503)
Semester: Spring 2020

transformation on their teams even if it is uncomfortable and believe that everyone will do their best.
They also serve as inspiration and role model to their people.  
6. Charismatic or inspiring leadership. This type is primarily based on the leader's charisma or his/her
personal qualities and is one of the most common approaches to leadership. Leaders are seen to possess
strong sense of vision and mission and arouse a very strong emotion in each of their followers. Leading
others is determined by the type and source of power that is held by the leaders.
It is not easy to become an effective leader but being aware of different approaches to leadership allows aspiring
leaders to get to know the necessary skills, abilities and personal characteristics essential to achieve their main
mission - to serve and not be served. This is what makes a good leader who knows how to handle his/her people
and appreciate their worth.
Leadership culture is defined by the collective action of formal and informal leaders acting together in the help
of organizational goals that ultimately marks the difference. When we speak about the leadership it is the both
leaders themselves and the relationship among them, the skills and behavior of the leaders are required to
execute the organization strategy and make the most wanted culture. The collective leadership capabilities of
the leaders acting together in the groups and across the boundaries to implement strategies. (William and
Michael, 2011.)
Generating the effort and commitment to work towards objectives is central to managing any human activity.
People use the term ‘effective leader’ to denote someone who brings innovation, moves an activity out of
trouble into success, makes a worthwhile difference. They see opportunities to do new things, take initiatives,
and inspire people.
“The most effective leaders will be people who use their energies to accomplish desired results. Leadership will
focus on action and implementation”. Katz and Kahn (1948).
In the process of leadership three main skills such as technical, human and conceptual are necessary.
Technical skill: – perform the specific tasks capability to use information, methods, technique and tools are
essential and get from experience, education and training.
Human skills: – human skills are the capability and results in working with and through individuals. Human
skills include accepting of motivation and purpose of effective leadership.
Conceptual skills: – conceptual skills provide skills to understand the complexities on the whole organization.
Through Conceptual knowledge leaders act to according to the objectives of the total business rather than only
on the basis of the goals and needs have direct team.
There are three major approaches of leadership theory. They are:-
Historical approach
Classical approach
Contemporary approach

24
 Course: Management Theory & Practice (9503)
Semester: Spring 2020

Trait theory: – Trait theory of leadership provides the skills to identify qualities which helpful when leading
with others and jointly, these appear as a universal leadership style. Example includes understanding, fierceness,
good decision making. Trait theories assume that leaders contribute to number of ordinary individually traits
and features and that leadership emerges from this traits.a trait is relatively stable aspect of an individual’s
personality that influences behavior in a particular direction. Many people have tried to identify the personal
characteristics associated with effective leaders. According to trait theory every person will be born with some
traits. Trait theory says that every leader will have certain traits that make them more suited to leadership than
others. A person would have these traits from birth which will be his characteristics which makes him more
suitable to be leaders than others. Traits are the distinguishing personal characteristics of a leader, such as
intelligence, values, self confidence and appearance
Behavior theory:-according to behavior theory leaders are made not born. This theory is completely against the
traits theory. Traits theory says that leadership qualities come from birth where as the classical leadership style
like the behavioral theory says that they come from practice and not from birth. It says that leadership is
defined, hence any person can learn those qualities required to be leader and can successfully lead when there is
need for it. Leadership qualities can be adopted by looking at others. Perhaps any leader can adopt the correct
behavior with appropriate training.
Contingency theory:-contingency approach a model of leadership that describes the relational ship between
leadership styles and specific organizational situations. An early, extensive effort to combine leadership style
and organizational situation into a comprehensive theory of leadership was made by Fiedler and his associates.
Contingency theory is a refinement of the situational viewpoint and focuses on identifying the situational
variables which best predict the most appropriate or effective leadership style to fit the particular circumstances.
Transactional approach: – James Burnes (1978) distinguish between transactional and transformational leaders.
A transactional leader is one who treats leadership as an exchange, giving followers what they want if they do
what the leader desires. And a transformational leader is a leader who treats leadership as a matter of motivation
and commitment, inspiring flowerers by appealing to higher ideals and moral values. The leader, who holds
power and control over his or her employees or followers, provides incentives for follower to do what the leader
wants. Hence, transactional leadership simply involves an exchange that leads to desired outcomes and
transformational leadership motivates us to do more than we originally expected to do.
Participative theory:-participative theory says that whatever the decision or whenever the decision is need to be
made, involve everyone who is attached to that. Don’t take decision solely. Reason is when everyone come
together to take the decision they feel involved in it. In participative type of leadership people are more
committed because they are involved in decision making. The drawback of this style would be it can confuse a
leader as which course of action to be taken as there are more ideas. This can be time consuming because more
people are involved decisions cannot be made quickly.

25
 Course: Management Theory & Practice (9503)
Semester: Spring 2020

Impact of managerial styles on organizational effectiveness

Performance of an organization is depending upon the leadership styles which are used in that organization.
Leadership style has a significant relation with organizational performance. Leadership styles put a positive and
negative effect on the performance of organization depends upon the style of leadership. Leadership style of
administrative supervisors put a positive effect on the performance of organization. Performance of workers
will be influenced by the leadership style of a leader. It also indicates that performance of organization is also
influenced by the style of leadership. Organizational performance decided by leadership style that subordinates
need to know, and give feedbacks and suggestions to execution. In this course a leader can know the
requirements of the subordinates and subordinate can know the demands and requirements of their role at the
same time. Subordinates get their rewards when they make organizational requested performance under the
leadership style of executives. This is shown by research that leadership style put positive effect on the
performance of the organization. Therefore leadership style should be correctly and carefully used to motivate
and guide the subordinates. There are basically three types of leaders
1: Autocratic leaders. These are the leaders who do not consult their team when they make any decision.
2: Democratic leaders. These types of leaders make decisions with the input of other group members. This style
of leadership is important when team agreement matters.
3: Laissez-fair leaders. These types of leaders allow the group members to make most of the decisions. They
mostly do not interfere in most of the decisions. This type of leadership works when team is highly motivated
and capable.
Kotter (1990) distinguishes between the terms leadership and management – while stressing that organizations
need both, and that one person will often provide both. Good management as brining order and consistency to
an activity- through task of planning, organizing and controlling. Individuals whom people recognize as leaders
have created change. Good leadership is that which moves people to a place in which they and those who
depend on them are genuinely better off ,and when it does so without trampling on the rights of others.leadrs
succeed by establishing direction and strategy, communicating it to those whose corporation is needed and
motivating and inspiring people. Managing and leading are closely related, but differ in their primary functions-
the one of create order, the other to create change. Organization needs both if they are to prosper. A manager
may or may not be an effective leader. A leader ability to influence others may be based on a verity of factors
others than his or her formal authority or position.
Warren Bennis, a highly regarded leadership scholar, differentiated the extremes of Management and leadership
in number of provocative ways:-
The managers administrates, the leader innovates.
The manager in a copy, the leaders an original.
The manager maintains, the leader develop.
The manager focuses on systems and structure. The focuses on the people.
26
 Course: Management Theory & Practice (9503)
Semester: Spring 2020

The managers relies on control, the leader inspires trust.

The manager has a short range view, leader has a long perspective.
The manager asks how and when, leader asks what and why.
The manager has an eye on the bottom line; the leader has his eye on the horizon.
The manager imitates, the leader originates.
The manager accepts the status quo, the leader challenges it.
Manager do things right, leaders do the right things.
For the success leader also needs to good leadership skills .strategic leader provide a positive and professional
atmosphere because they are efficiently planning and controlling the individuals and processes. Leader can
produce equal attitudes in their team worker. Strategic long term decisions involve the direction of the business.
If the plan and decisions are right, the business will grow and succeed. But if a business makes pure decisions, it
may fail. Effective management requires an understanding of how the processes are applied and how they can
be used. Management is more art than science in that managers constantly have to use their judgment and
expertise. Management is the process of achieving pre-set aims and objectives through the work of others; a
manager role is to:-
Devise strategies and policies which will server future growth and development.
Control and co-ordinate a mix of available resources-people, money, materials,-so as to earn a profit or to run
the organization cost effectively.
Interpret and respond to changes in economic, social and technological trends, so as to keep the organization
sharp and competitive.
Develop new entrants into the organization, so as to ensure its long term survival and success.
Promote interpersonal communication and telephone communication systems to that the organization benefits
from an open exchange of information and ideas.
Effective management depends entirely on mix of:
The manager personality and what style fits it best.
The kind of people and tasks to be managed.
The culture and benefits of the organization and the social, economic backdrop at the time.
Management has to stay on their toes and use all their skills and competencies to benefits the organization and
its stakeholder-employers, customers, investors, the community and so forth. According to Edward Elgar
“There is music in the air, music all around us, said composer.”The tune heard most often by today’s managers
may be the constant ring of a cell phone tying them to the organization .managers can become a leader who set
the pace for an organization and lead people in a different kind of performance.

27