I.

The meaning of leadership

The organization is made up of groups of people. An essential part of

management is coordinating the activities of groups and directing the efforts of
their members towards the goals and objectives of the organization. This involves
the process of leadership and the choice of an appropriate form of behavior. The
manager must understand the nature of leadership and factors which determine the
effectiveness of the leadership process.
There are many ways of looking at leadership and many interpretations of its
meaning. Leadership might be interpreted in simple terms, such as ‘getting others
to follow’ or ‘getting people to do things willingly’, or interpreted more
specifically, for example as ‘the use of authority in decision making’. It may be
exercised as an attribute of position, or because of personal knowledge or wisdom.
Leadership might be based on a function of personality, or it can be seen as a
behavioral category. It may also be viewed in terms of the role of the leaders and
their ability to achieve effective performance from others. Leadership is related to
motivation and to the process of communication.
It is difficult, therefore, to generalize about leadership, but essentially it is a
relationship through which one person influences the behavior of other people.
This means that the process of leadership cannot be separated from the activities of
groups. The leadership relationship is not limited to leader behavior resulting in
subordinate behavior. Leadership is a dynamic process. The leader-follower
relationship is reciprocal and effective leadership is a two-way process.
A more specific definition, which draws attention to the relationship
between leadership and communications, sees leadership as interpersonal influence
which is exercised in a situation and directed through the communication process
towards the attainment of a specified goal.

Leadership and management

Sometimes management and leadership are seen as synonymous. There is,
however, a difference between the two and it does not follow that every leader is a
manager.
Management is more usually viewed as getting things done through other
people in order to achieve stated organizational objectives. The manager may react
to specific situations and be more concerned with solving short-term problems.
Management is regarded as relating to people working within a structured
organization and with prescribed roles. To people outside of the organization the
manager might not be seen in a leadership role.
The emphasis of leadership is on interpersonal behavior in a broader context.
It is often associated with the willing and enthusiastic behavior of followers.
Leadership does not necessarily take place within the hierarchical structure of the
organization. Many people operate as leaders without their role ever being clearly
established or defined. A leader often has sufficient influence to bring about
longer-term changes in people’s attitudes and to make change more acceptable.
Leadership can be seen primarily as an inspirational process.
There are other differences between leadership and management in attitudes
towards goals, conceptions of work, relations with others, self-perception and
development:
 managers tend to adopt impersonal or passive attitudes towards goals,
while leaders adopt a more personal and active attitude towards goals;
 in order to get people to accept solutions, the manager needs
continually to co-ordinate and balance in order to compromise
conflicting values, while the leader creates excitement in work and
develops choices that give substance to images that excite people;
 in their relationships with other people, managers maintain a low level
of emotional involvement, while leaders have empathy with other
people and give attention to what events and actions mean;
 managers see themselves more as conservators and regulators of the
existing order of affairs with which they identify and from which they
gain rewards, while leaders work in, but do not belong to, the
organization; their sense of identity does not depend upon
membership or work roles and they search out opportunities for
change;
 whereas managers tend towards reliance on strategy, structure and
systems, leaders tend to rely on style, staff, skills and shared goals.
Despite the differences, there is a close relationship between leadership and
management in work organizations. To be an effective manager it is necessary to
exercise the role of leadership. A common view is that the job of the manager
requires the ability of leadership and that leadership is in effect a sub-set of
management, although leadership is a special attribute which can be distinguished
from other elements of management.

The leadership relationship

A leader may be imposed, formally appointed or elected, chosen informally,
or emerge naturally through the demands of the situation or the wishes of the
group. Leadership may be attempted, successful or effective.
Attempted leadership is when any individual in the group attempts to exert
influence over other members of the group.
Successful leadership is when the influence brings about the behavior and
results that were intended by the leader.
Effective leadership is when successful leadership results in functional
behavior and the achievement of group goals.
The leader may exercise authority as an attribute of position. In this case the
manager is seen as a leader because of a stated position in the hierarchy.
Leadership, however, is more than just adherence to a formal role prescription. It is
more than eliciting mechanical behavior which results from a superior-subordinate
relationship in a hierarchical structure.
Leadership may also be exercised through greater knowledge or expertise, or
by reputation. It may also be based on the personal qualities or charisma of the
leader and the manner in which authority is exercised. This view of leadership
gives rise to the question of ‘born’ or ‘natural’ leaders. Leadership may also focus
on the role of the leader in terms of the relationship with followers and the
adoption of a particular style of leadership.
Within an organization, leadership influence will be dependent upon the type
of power that the leader can exercise over other people. The exercise of power is a
social process which helps to explain how different people can influence the
behavior/actions of others. There have been identified five main sources of power
upon which the influence of the leader is based:
 reward power – based on the subordinate’s perception that the leader has the
ability and resources to obtain rewards for those who comply with
directives, for example pay, promotion, praise, recognition, increased
responsibilities, allocation and arrangement of work, granting of privileges;
 coercive power – based on fear and the subordinate’s perception that the
leader has the ability to punish or to bring about undesirable outcomes for
 those who do not comply with directives, such as withholding pay rises,
promotion of privileges, allocation of undesirable duties or responsibilities,
withdrawal of friendship or support, formal reprimands or even dismissal;
 legitimate power – based upon the subordinate’s perception that the leader
has a right to exercise influence because of the leader’s role or position in
the organization; it is ‘position’ power since it is based on the role of the
leader in the organization , not on the nature of the personal relationships
with others;
 referent power – based on the subordinate’s identification with the leader;
the leader exercises influence because of perceived attractiveness, personal
characteristics, reputation or what is called ‘charisma’. For example, a
particular manager may not be in a position to reward or punish certain
subordinates, but may still exercise power over the subordinates due to the
respect and esteem he commands;
 expert power – based on the subordinate’s perception of the leader as
someone who is competent and who has some special knowledge or
expertise in a given area; it is usually limited to narrow, well-defined areas
or specialisms, for example the expert knowledge of the personnel manager,
the accountant or the systems analyst.
These sources of power are based on the subordinate’s perception of the
influence of the leader, whether it is real or not. For example, if a leader has the
ability to control rewards and punishments but subordinates do not believe this,
then in effect the leader has no reward or coercive power.
It must be pointed out that these sources of power are interrelated and the
use of one type of power may affect the ability to employ another type of power.
Also, the same person may exercise different types of power, in particular
circumstances and at different times.
Leadership is, therefore, a dynamic form of behavior and there are a number
of variables which affect the leadership relationship: the characteristics of the
leader; the attitude, needs and other personal characteristics of the followers; the
nature of the organization, such as its purpose, structure, the tasks to be performed
and the social, economic and political environment. Leadership is not a property of
the individual, but a complex relationship among these variables.

Functions and responsibilities of leadership

 To help understand the process of leadership, it is necessary to analyze the
role of the leader and the functions and responsibilities of leadership. These
functions require different emphasis in different situations according to the nature
of the group. The same leadership position may also change over a period of time.
It is possible, however, to list a range of general functions which are served by the
leadership position:
 the leader as executive – top coordinator of the group activities and
overseer of the execution of policies;
 the leader as planner – deciding the ways and means by which the
group achieves its ends(this may involve both short-term and long-
term planning);
 the leader as policy maker – the establishment of group goals and
policies;
 the leader as expert – a source of readily available information and
skills, although there will be some reliance on technical expertise and
advice from other members of the group;
 the leader as external group representative – the official
spokesperson for the group, the representative of the group and the
channel for both outgoing and incoming communications;
 the leader as controller of internal relations – determines specific
aspects of the group structure;
 the leader as purveyor of rewards and punishments – exerts control
over group members by the power to provide rewards and apply
punishments;
 the leader as arbitrator and mediator – controls interpersonal conflict
within the group;
 the leader as exemplar – sets an example of what is expected by being
a model of behavior for members of the group;
 the leader as symbol of the group – enhances group unity by
providing some kind of cognitive focus and establishing the group as
a distinct entity;
 the leader as substitute for individual responsibility – relieves the
individual member of the group from the necessity of, and
responsibility for, personal decision;
  the leader as ideologist – serving as the source of beliefs, values and
standards of behavior for individual members of the group;
 the leader as father figure – serving as focus for the positive
emotional feelings of individual members and the object for
identification and transference;
 the leader as scapegoat – serving as a target for aggression and
hostility of the group, accepting blame in case of failure.
These functions help to illustrate the range of roles and responsibilities that
the leader may be expected to fulfill and the complexity of the nature of leadership.
It is important to note that leadership resides in the functions and not in a
particular person. The various functions of leadership can be shared among
members of the group. If a member provides a particular function which is relevant
to the activities of the group and accepted by group members, then in those
circumstances this could become a leadership function.
(Adapted from Mullins, J. Laurie, Management and Organizational Behaviour)

PRACTICE
2.1. Match the terms below with the correct definition:
a. management
b. objectives
c. goals
d. technical skills
e. supervisory (first line ) management
f. strategic planning
g. middle management
h. top management
i. leadership

1. Broad, long-term accomplishments an organization wishes to attain.

2. Ability to perform tasks of a specific department (such as selling or
bookkeeping).
3. First level of management above employees; includes people directly
responsible for assigning specific jobs to employees and evaluating
their daily performance.
 4. The process of determining the major goals of the organization and
the policies and the strategies for obtaining and using resources to
achieve those goals.
5. The process used to accomplish organizational goals through
planning, organizing, directing, and controlling organizational
resources.
6. Level of management which includes plant managers and department
heads who are responsible for tactical plans.
7. Specific, short-term statements detailing how to achieve the
organizational goals.
8. Highest level of management, consisting of the president and other
key company executives who develop strategic plans.
9. Relationship through which one person influences the behavior of
other people.

2.2. Give synonyms to the following words as they were used in the text:
a. to fulfill
b. outcome
c. purveyor
d. expertise
e. to comply with

3.4. Fill in the blanks using the following verbs:

analyze communicate contribute divide form

improve measure commercialize perform risk
select train understand use work out

You want me to explain what management is? Well, I guess I can manage
that! Actually, management as we (1) ....................it today is a fairly recent idea.
Most economists in the eighteenth and nineteenth centuries, for example, wrote
about factors of production such as land, labor and capital, and about supply and
demand, as if these were impersonal and objective economic forces which left no
room for human action. An exception was Jean-Baptiste Say, who invented the
term ‘entrepreneur’, the person who sees opportunities to (2) .......................
resources in more productive ways.
Entrepreneurs are people who are alert to so-far undiscovered profit
opportunities. They perceive opportunities to (3) ........................ new technologies
and products that will serve the market better than it is currently being served by
their competitors. They are happy to (4) .......................their own or other people’s
capital. They are frequently unconventional, innovative people. But
entrepreneurship isn’t the same as management, and most managers aren’t
entrepreneurs.
So, what’s management? Well, it’s essentially a matter of organizing people.
Managers, especially senior managers, have to set objectives for their organization,
and then (5) ...................... how to achieve them. This is true of the managers of
business enterprises, government departments, educational institutions, and sports
teams, although for government services, universities and so on we usually talk
about administrators and administration rather than managers and management.
Managers (6) ......................the activities of the organization and the relations
among them.They (7) ......................... the work into distinct activities and then into
individual jobs. They (8) ........................ people to manage these activities and
perform the jobs. And they often need to make the people responsible for
performing individual jobs (9) ...................... effective teams.
Managers have to be good at communication and motivation. They need to
(10) ..................... the organization’s objectives to the people responsible for
attaining them. They have to motivate their staff to work well, to be productive,
and to (11) ...................... something to the organization. They make decisions
about pay and promotion.
Managers also have to (12) ...................... the performance of their staff, and
to ensure that the objectives and performance targets set for the whole organization
and for individual employees are reached. Furthermore, they have to
(13) ........................ and develop their staff, so that their performance continues to
(14) ........................ .
Some managers obviously (15) ...................... these tasks better than others.
Most achievements and failures in business are the achievements or failures of
individual managers.

3.5. Complete the text using the correct form of these verbs:
 achieve allocate balance deal with develop
employ establish follow require set

The top managers of a company have to (1) ............. objectives and then
develop particular strategies that will enable the company to (2) ............ them. This
will involve (3) ............. the company’s human, capital and physical resources.
Strategies can often be sub-divided into tactics – the precise methods in which the
resources attached to a strategy are (4) ................... .
The founders of a business usually establish a ‘mission statement’ – a
declaration about what the business is and what it will be in the future. The
business’s central values and objectives will (5) ...............from this. But because
the business environment is always changing, companies will occasionally have to
modify or change their objectives. It is part of top management’s role to
(6) .................. today’s objectives and needs against those of the future, and to take
responsibility for innovation, without which any organization can only expect a
limited life. Top managers are also expected to set standards, and to (7) ..................
human resources, especially future top managers.
They also have to manage a business’s social responsibilities and its impact
on the environment. They have to (8) .................. and maintain good relations with
customers, major suppliers, bankers, government agencies, and so on. The top
management, of course, is also on permanent stand-by to (9) .................. major
crises.
Between them, these tasks (10) .................many different skills which are
almost never found in one person, so top management is work for a team. A team,
of course, is not the same as a committee: it needs a clear leader, in this case the
chairman or managing director.

3.6. Complete the following collocations:

to set...........
to allocate............
to ...............responsibility
to ...............standards
to............and............good relations
 to ................a crisis

II. Task 5 Give the opposites of the following adjectives.

1. reliable … 3. decisive … 5. enthusiastic … 7. honorable …

2. selfless … 4. tidy … 6. honest … 8. loyal …

Task 6 Read the following paragraphs and identify the leadership style from
the five military leadership styles presented in the box.

Directing leadership Delegating leadership Participating leadership

Transactional leadership Transformational leadership

1. This leadership style centers on you, the leader. You control and direct your
subordinates’ every action. You do not solicit input from subordinates, but rather
give detailed instructions on how, when and where you want something performed.
Then you supervise very closely. This style is particularly appropriate when you
don’t have the chance to explain things (i.e. combat situations, or with
inexperienced subordinates).
2. This democratic technique centers on both the leader and the subordinates. You
actively ask them for input, information and recommendations. However, you still
make the final decision on what to do and assume responsibility for decisions and
plans. The biggest benefit of this approach is that when subordinates help develop
the plan, it becomes their plan which creates a huge incentive to complete the
mission.
3. This is the free-rein style that gives your subordinates the ability to solve issues
and make decisions on their own. This typically is the case when you have highly-
qualified, experienced subordinates. While this style may seem to be best when
dealing with senior NCOs, you still must provide the necessary resources and a
clear understanding of your intent and the mission. Although subordinates are held
accountable for their actions, again ultimate responsibility for what happens lies
with you.
4. This leadership style focuses on inspiration and change. It emphasizes individual
growth and organizational enhancement. You must empower and motivate your
soldiers, first as soldiers and then as a group. Additionally, an important aspect of
this style requires you as a leader to communicate reasons behind your decisions
and actions. This allows soldiers to have a broad understanding and exercise their
own initiative when opportunity arises. This leadership style works well when you
have soldiers with great skills, knowledge and who may have better ideas on how
to accomplish the mission.
5. This leadership style is like a ‘parent-child’ relationship. With this approach,
you motivate your soldiers to work by offering rewards or threatening
punishments. This style is still directing in nature, with emphasis on how to do a
job. If you only utilize this approach, you will never see any commitment outside
of the short-term or specific area of intent.

Task 7 Read and identify the qualities necessary for a military commander.
The first letter of the missing word is given.

A military leader must have military Appearance and image

bearing. The basics are good
grooming, clean attire and excellent
condition of equipment, generally
looking neat and tidy. Impeccable
conduct is elementary, too.
A soldier must be in good shape. He A………………………
must be able to climb, jump, balance,
etc.
It is the energy of leadership. Nothing C……………………….
is more important than the ability to
speak with clarity since you cannot
expect people to read your mind.
It is a quality of character which R……………………….
assures those above and below him
that he can be depended on to do his
best.
It is a quality close to dependability. A T………………………..
combat leader must deserve the trust of
his soldiers, whose very lives depend
on his decisions.
A soldier must be fit in order to be able E………………………..
to withstand fatigue, lack of sleep and
the hardships of combat conditions.
It is the ability one has to overcome a C………………………...
difficult task or situation with
steadfastness.
In order to get this, a leader must be K………………………...
trained in the use of weapons and
equipment. On the basis of this, he will
know to guide his troops into favorable
tactical positions and conduct the
firepower available to him.
It is the character trait which enables P…………………………
men to endure the dangers and
hardships of combat with the
reassuring knowledge that to die for
one’s country is the noblest death of
all.
It is devotion to one’s country, the L…………………………
military service, reflected in every
action up and down the chain of
command.
It is the quality of placing moral H…………………………
principles above all else, of being
completely open and truthful.

Styles of leadership

In the work situation it has become increasingly clear that managers can no
longer rely solely on the use of their position in the hierarchical structure as a
means of exercising the functions of leadership. In order to get the best results
from subordinates the manager must also have regard for the need to encourage
high morale, a spirit of involvement and co-operation and a willingness to work.
This gives rise to consideration of the style of leadership.
Leadership style is the way in which the functions of leadership are carried
out, the way in which the manager typically behaves towards members of the
group.
The development of behavioral science has drawn attention to the processes
of interpersonal behavior in the work situation and to the effects of leadership on
those being led. The attention given to leadership style is based on the assumption
that subordinates are more likely to work effectively for managers who adopt a
certain style of leadership than they will for managers who adopt alternative styles.
There are six leadership styles: authoritative leadership, coaching style,
democratic leadership, affiliative leadership, pace-setting style and coercive style.
Authoritative leadership means giving a real sense of direction that is
ambitious, but realistic. It means having a vision, without lapsing into fantasy. An
authoritative leader never loses sight of the core purpose of the business and
understands that this overriding sense of purpose is also the matter that most
motivates employees. He/she can easily rise above internal politics, bureaucracy to
see things from a customer’s perspective and remind people within the
organization what they are there for.
A leader sets the vision, defines the culture and sets norms and values for the
organization. He/she encourages and coaches people, but will discipline them if
they have broken the agreed norms and rules. Even when working with bright,
successful individuals, it is imperative to establish clear norms. The authoritative
leader makes decisions, determines policy and procedures for achieving goals and
exerts total control in providing rewards and applying punishments.
The next most effective leadership style in the long term is the coaching
style. Coaching is the ability to bring out the best in others. If an analogy with a
team game is taken, the basketball player who is brilliant but never passes to a
team mate is going to be much less successful than one who brings others into
play. Mature leaders who are comfortable with the coaching role will take as much
pleasure from a subordinate completing a project or clinching a deal as they would
if they had carried out the task themselves. The key to unlocking the coach and
mentor in a manager is abandoning fear and insecurity, suppressing the irrational
instinct that is holding back a subordinate’s development and even the
development of the organization and of the manager (because he could learn from
the subordinate and gain the credit for bringing out the best of him).
Chances to win orders are being squandered and the probability of losing
skills to a competitor is increased if the subordinate is thwarted in his ambition to
develop. He will not be motivated to make his contribution to achieving the agreed
strategic goals.
The democratic style is where the focus is more with the organization as a
whole and there is greater interaction within the organization. The leadership
functions are shared with members of the group. The group members have a
greater say in decision making, determination of policy and implementation of
procedures. This style works well when employees are highly motivated, the goals
are clear, but there is a need to elicit ideas from the team as to how to achieve the
objectives.
The most effective part of the democratic style is the empowerment and
motivation people gain from having information shared. They can understand
better the need for following difficult decisions. The pitfalls are that decisions are
made too slowly due to the time wasted in meetings searching for an elusive
consensus. The democratic style does not have a positive effect on organizational
climate as compared to the authoritative style or the coaching style of leadership.
The pure democratic style is only useful every now and then, but a dose of it
incorporated with other styles can be tremendously effective.
Affiliative leadership means maintaining harmonious relationships above all
else. An affiliative leader goes to great lengths to ensure that people relate well
together and that strong bonds between leader and team members are established.
He will frequently treat the team to a meal out, celebrating openly and making sure
no one is left out and any resentment or injustice is allowed to fester.
Communication and trust are high priorities and formidable bonds of loyalty and
commitment can be engendered, with positive effect on teamwork. People give of
themselves above and beyond the call of duty because they feel a strong emotional
attachment to those they are working for.
This style is particularly effective in restoring teamwork where it has been
badly damaged by excessive coercion in the recent past. Problems with the
affiliative style are fairly obvious. As with the democratic style, important
decisions can be left unmade while participation is prioritized. The emphasis on
praise and harmony can lead to poor or lazy performance left unchallenged, which
actually poisons working relationships. If , for example, an individual often feigns
illness or leaves early, with the result that the rest of the team stay late to cover for
him, the manager damages workplace relationships, as well as performance, by
neglecting to discipline the errant individual.
The affiliative style can be used effectively in combination with the
authoritative style. This may sound like a marriage of opposites, but setting goals
and a vision for an organization and leaving individuals and teams considerable
autonomy in determining the means to achieve those goals can be extremely
fruitful.
The pace-setting style is to be found in introverted individuals who are
technical experts and have been promoted to leadership positions without having
the necessary leadership skills developed. They tend to carry out too many tasks
themselves, either because that is the role that suits them best or because they do
not trust others to get it right. Their reluctance to delegate, however, can be
demotivating for their subordinates as they have insufficient autonomy and
diminished opportunity to hone their skills.
Pace-setting is valuable in organizations where highly talented but lazy
individuals need a strong role model and high standards to be imposed. The degree
of interpersonal rivalry that the pace- setter unintentionally introduces can lead to
high performance, provided the team has the requisite skills and a clear goal,
meaning that the authoritative and coaching needs are in fact catered for.
The drawback of this style of leadership is communication. The pace-setter
expects the team to guess what the goals, the tasks and the individual learning
needs are. This means that in most teams and in most situations the pace- setting
style is unhelpful.
Coercive leadership can be highly effective, in short bouts, to meet certain
needs. It must be used sparingly and with great care because it produces a toxic,
low-performing environment if employed on a permanent basis. It is useful where
people know their tasks, have failed to fulfill them and have no good reason for not
having met them. For this, clarity of role and purpose are essential. It is also
important that the staff respect the leader making use of the coercive mode.
The coercive style can also be of use during a crisis. Generally, fear is
corrosive to workplaces if engendered on an ongoing basis, but it can be healthily
introduced on occasion to remind members of an organization that the organization
has to perform well in order to survive.

No one best style of leadership

Research studies tend to indicate that a democratic style of leadership is
more likely to produce effective performance from an organization. A human
relation, people-oriented approach is more likely to lead to job satisfaction and to
group cohesiveness. However, an authoritative, task-centered system of
management can result in high productivity in the short term because of
compliance based on fear. But long-term improvements in high productivity and in
labor turnover are more likely to result from a participative, group-oriented
approach.
Different types of leadership may also be most appropriate at different stages
in the development of a business organization. There have been identified four
different styles of managerial leadership required at different stages of business:
champion, tank commander, housekeeper and lemon-squeezer.
Champion – as a new corporate venture develops into a business, it needs a
champion to fight for and defend the seedling business. The champion must be
able to drive a small team to win orders, provide a wide range of management
skills and have the dash and energy to deal with a range of different matters.
Tank commander – as the business enters its growth stage, the manager must
develop a strong, supportive team and have leadership qualities to be able to drive
into readily exploitable parts of the market.
Housekeeper – as the business runs up against boundaries erected by other
growing businesses, it enters the mature stage. The housekeeper has to ensure the
efficient and economic management of the business. This involves skills in
planning, cost control and the development of soundly based personnel policies.
Lemon-squeezer – although the mature stage might last for many years,
sometimes a business goes into premature decline. At this stage the need is for the
kind of leader who can extract the maximum benefit from the situation. The
lemon-squeezer needs to be both tough and innovative in order to cut costs and
improve productivity and staffing levels.
Finding and fitting the manager best suited to each stage of a business is a
delicate task. Researchers suggest that most managers are one type of leader or
another. Although there are exceptions, few managers are flexible enough to
switch between such different leadership roles.
Clearly, there is no one ‘best’ style of leadership which will result in the
maintenance of morale among group members and high work performance.
The three main aspects to be considered in determining the most appropriate
style of leadership are: the manager, the organization and the work environment.
However, there are many variables which underlie the effectiveness of leadership
in work organizations. More specifically, these include:
 the characteristics of the manager, personality, attitudes, abilities,
value system and the personal credibility of the manager;
 the type of power of the manager and the basis of the leadership
relation;
 the characteristics of the subordinates, their needs and expectations,
attitudes, knowledge and expertise, and their motivation and
commitment;
 the relationship between the manager and the group and among
members of the group;
 the nature of the tasks to be achieved, technology and methods of
work organization;
 organization structure and systems of management;
  the type of problem and the nature of the manager’s decisions;
 the nature and influence of the external environment.
Within an organization different individuals may fulfill the functions of
leadership. Different types of leadership may also be needed at different stages of a
business. There are many variables which underlie the effectiveness of leadership
in work organizations. The most effective form of leadership behavior is a product
of the total leadership situation.
(Adapted from Bloch, Susan & Whiteley, Philip, Complete Leadership)

VOCABULARY

assumption, n. = ipoteză; presupunere, delegate, v. = a delega

supoziţie clinch a deal, v. = a încheia o afacere
elusive, adj. = evaziv, pe care nu tepoţibaza; reluctance, n. = împotrivire, rezistenţă, opoziţie
overriding, adj. = mai important decâtorice core, n. = miez; fig. esenţă
fester, v. = a supura; fig. a chinui, a măcina thwart, v. = a contracara; azădărnici; a se
squander, v. = a risipi; a toca, a face praf împotrivi
underlie,underlay, underlain, v. = a fi la baza; bond, n. = legătură, relaţie
fig. a întemeia, a susține empowerment, n. = împuternicire, autorizare
diminish, v. = a diminua, a micşora pitfall, n.= fig. capcană, cursă, obstacol
turnover, n. = cifră de afaceri, randament; sparingly, adv. = cumpătat, cu economie
producţie drawback, n. = neajuns, lipsă
requisite, adj.=necesar, indispensabil
2.2. Review all the words related to ‘leadership’ and do the following
matching exercise:

_________ 1. casualty a. judge

_________ 2. trait b. fearless
_________ 3. peer c. to include; to be made up of
_________ 4.assess d. skilled
_________ 5. comprise e. characteristic
_________ 6. hardship f. difficulty
_________ 7. proficient g. person of similar rank/position
_________ 8. bold h. avoid
_________ 9. example i. death, injury
_________ 10. evade j. advice
_________ 11. counsel k. role model
 You can obtain adjectives with opposite meanings by adding the prefixes
un-, in-, il-, im-, ir-, or dis-. Here are some helpful hints:
un- is the most common negative prefix;
im- usually precedes a word beginning with a “p”
ir- usually precedes a word beginning with an “r”
il- usually precedes a word beginning with an “l”

Have a look at the examples:

Going public is a most ineffective course of action for the moment.
She made an implausible excuse for not meeting the deadline.
Being impolite is a sign of disrespect.
The inability to establish priorities is a major drawback for a manager.
He proved to be uncommitted to the goals of the company.

3.8. Complete the text using the correct form of these verbs:

appointed attacked combined defined

constituted reviewed supervised supported

Large British companies generally have a chairman of the board of directors

who oversees operations, and a managing director (MD) who is responsible for the
day-to-day running of the company. In smaller companies, the roles of chairman
and managing director are usually (1) ................... Americans tend to use the term
president rather than chairman, and chief executive officer (CEO) instead of
managing director. The CEO or MD is (2) ....................by various executive
officers or vice-presidents, each with clearly (3) ................... authority and
responsibility (production, marketing, finance, personnel, and so on).
Top managers are (4) ….............. (and sometimes dismissed) by a company’s
board of directors. They are (5) .................. and advised and have their decisions
and performance (6) ..................... by the board. The directors of private companies
were traditionally major shareholders, but this does not apply to large public
companies with wide share ownership. Such companies should have boards
(7) ................... of experienced people of integrity and with a record of
performance in a related business and a willingness to work to make the company
successful. In reality, however, companies often appoint people with connections
that will impress the financial and political milieu. Yet, a board that does not
demand high performance and remove inadequate executives will probably
eventually find itself (8) .................. and displaced by raiders.
2.1. Study the following examples:

Managers plan to achieve their objectives and vision by using the best
information available.
Helen boasted about being appointed on top position in the company.
Keith is responsible for supervising the whole production process.
An ambitious leader tends to pursue long term goals.
The leaders of work organizations must avoid making hasty decisions.
They undertake changing any pieces that might get damaged during
transportation.

Fill in the following sentences using the appropriate form of the verb in
brackets:
Have you considered ................ (move ) to another town?
I strongly recommend .................. (concentrate) on human resource
management.
Sales figures tend .............. (drop) due to the economic recession.
I decided ............... (embark) on an interesting project soon.
The proposed plan would mean ............... (change) the whole logistics.
The company risks ................ (lose) an important market.
The HR manager promised ............... (hire ) me as soon as he could.
We undertake ................ (replace) any damaged articles immediately.
The advertising agency denies ................... (represent) any of our
competitors.
The press cannot delay ................. (break) the bad news any longer.

Types of decisions
The whole task of management is focused on taking decisions about the
running of the business and its future goals and about the company’s employees –
how to organize them, how to lead and motivate them, how to train and develop
their full abilities, etc. Most decisions, especially those taken by lower levels of
management, are fairly routine ones and are encountered many times.
The decisions taken my senior managers are of a different nature and call for
choosing between different, often risky strategies, in order to solve ill-defined,
unclear problems.
There are a variety of decision analysis techniques and tools that help
managers to make this second type of decision, or at least to reduce the risk of
making costly mistakes. Good decisions are based on good information.
Decision- making in organizations is becoming increasingly more complex.
The key factors in this complexity are represented by the level of uncertainty in the
organization’s environment and the degrees of risk involved.
The principal categories of decisions can be summarized as follows:
o strategic – major, long-term, non-routine and non-repetitive;
o operating – short- term, routine, repetitive and frequent;
o administrative – coordination of activities arising from
implementation of strategies and operating decisions.
Strategic Decisions. These are the basic, long-term decisions which settle
the organization’s relationship with its environment, notably in terms of its product
or service and its markets. These are the decisions which set the principal goals and
objectives of the organization. Also included here would be the major policy
statements of the organizations. Such decisions tend to be non-routine and non-
repetitive. They are usually complex, especially in terms of the number of
variables which have to be considered before final choices are made.
Operating Decisions. These are the short-term decisions which settle issues
such as output levels, pricing and inventory levels. Fewer variables are involved in
this type of decisions, which are routine and repetitive by nature. Operating
decisions tend to receive priority over others because of the sheer weight of their
volume plus their ability to show results in the short-term.
Administrative Decisions. These decisions arise from and are subject to the
conflicting demands of strategic and operational problems. They are essentially
concerned with settling the organization’s structure e.g. by establishing lines of
authority and communication.

Techniques used for decision analysis

 The techniques used to evaluate possible solutions to find the most suitable
include the following methods:

Marginal or incremental costing

This technique compares the additional revenues generated by each possible
scheme with how much each will cost. It is useful because variables are
emphasized rather than constants and averages. However, it is sometimes very
difficult to quantify adequately the benefits which may result (especially if the
project under consideration is a long-term, radical one), and all the costs which
could be incurred.

Discounted cash flow appraisal

DCF methods are probably the most widely used appraisal techniques. They
are based on the premise that money received now is worth more than money
received at some point in the future, because such factors as inflation and because
cash received now can earn interest in the intervening period.

Cost-benefit analysis
This evaluation technique is used when data cannot be quantified, but when
such things as the social benefits and costs of a possible project (such as pollution
or unemployment) are important in making the decision. The method weighs the
effectiveness of each alternative in meeting the scheme’s objectives against its
potential costs.

Sensitivity analysis
The assumptions behind each plan are questioned to see how valid they are;
the dependence of the plan on each assumption is also assessed to find out what
degree of risk is being taken an on how sound a basis.
Risk analysis
It gauges what the range of each variable is and the probability of it
occurring, e. g. the chances of the cost price exceeding or falling below the best
estimate and by how much; with the probability of each outcome occurring added
too, the riskiness of each course of action and the possible pay-offs from each can
be assessed.
 Senior managers examine alternatives, select the best course of action and
then put it into effect. The appropriateness of their decisions depends on the quality
of the information received, whether it is relevant, timely and accurate, not lost
among superfluous facts and figures. Management information systems do not
have to be IT-based, but computers do allow managers to access into all the data
that they need instantly, avoiding costly and irreversible errors of judgment.
(Adapted from Dixon, Rob, Management Theory and Practice)

VOCABULARY

revenue(s), n.= venit (anual); câştig(uri), venituri, beneficii

to incur, v. = a-şi face, a-şi crea; a-şi atrage asupra sa
interest, n.= dobândă
to gauge, v.= a măsura
on the spur of the moment = pe moment, spontan, fără pregătire
timely, adj. = oportun, potrivit, la vreme
cash flow, n. = circuit financiar, flux de numerar
pay-off, n.= beneficiu, avantaj, câştig

2.1. Give synonyms for:

revenues, outcome, pay-off, to gauge, to assess, superfluous, timely,

irreversible, premise, appraisal, discounted, to emphasize.

Business Objectives and Values

One definition of a company is that it is nothing more than a sum of other
people’s money invested in productive capacity or services which produce a profit
greater than the opportunity cost of the capital involved. From this definition
follows the belief that the role of a company is to maximize its value for the
shareholders. The managers must be permanently concerned with maximizing
value, not only if there is the threat of a raid. They have to concentrate exclusively
on activities that create value, so that the company will regularly divest less
profitable operations, acquire other profitable business and restructure itself.
 According to the logic of value-based management, it is not enough to
launch a successful new product occasionally and to revamp existing mature
products by effective marketing programs. The company has to develop structures
that allow it consistently to create added value. These structures will include the
way in which it allocates financial and human resources, measures performance
and pays its top managers.
One problem with this approach is that it is unlikely to motivate employees
who know that they could at any time be dismissed to reduce costs or that their
section could be sold if it is considered to be producing insufficient value.
Financial objectives will probably only motivate a few people in the head office
and only if they are paid in proportion to the company’s value.
Other management theorists argue that profit is not an objective in itself, but
a natural consequence of doing something well. Profit is like health: you need it,
and the more the better, but it is not why you exist. You exist to provide a product
or service. Employees are more likely to be motivated by qualitative corporate
purposes than quantified ones. A company which declares that its central values
include a commitment to produce high quality goods or reliable services, while
respecting each individual employee, is more likely to inspire everybody, from
middle managers down to shop-floor production workers. These are values that
everybody in the organization can share.
An alternative to value-base management is the stakeholder model, which
suggests that a business organization has responsibilities to everyone with a stake
in or an interest in or a claim on the firm, including employees, suppliers,
customers and the local community. According to this view, a company has to
balance the interests of its owners with those of the other groups of people
concerned with its existence.

4.2. Match up the underlined words in the text with the following
words:

bring out distribute fired firm revitalize

rewarded remunerates result sell off
hostile takeover other possible investments the share holders
 The meaning and nature of organization structure

In order to achieve its goals and objectives the work of an organization has
to be divided among its members. Some structure is necessary to make possible the
effective performance of key activities and to support the efforts of staff. Structure
provides the framework of an organization and for its pattern of management. It is
by means of structure that the purpose and work of the organization is carried out.
The manager needs to understand the importance and effects of organization
structure and systems. Structure is the pattern of relationships among positions
in the organization and among members of the organization. The purpose of
structure is the division of work among members of the organization and the co-
ordination of their activities so they are directed towards achieving the goals and
objectives of the organization.
The structure defines tasks and responsibilities, work roles and relationships,
as well as channels of communication. Structure makes possible the application of
the process of management and creates a framework of order and command
through which the activities of the organization can be planned, organized, directed
and controlled. The greater the size of an organization is, the greater the need for a
carefully designed and purposeful form of organization.

Levels of organization
Organizations are layered. The determination of policy and decision making,
the execution of work, as well as the exertion of authority and responsibility are
carried out by different people at varying levels of seniority throughout the
organization structure. There are three systems in the hierarchical structure of
organizations: the technical level, the managerial level and the community level.
The technical level is concerned with specific operations and discrete tasks,
with the actual jobs or tasks to be done and with the performance of the technical
function. Some examples can be given to illustrate this: the physical production of
goods in a manufacturing firm, the administrative processes giving direct service to
the public in government departments, the actual process of teaching in an
educational establishment.
The technical level relates with the managerial level or organizational level,
which is concerned with the co-ordination and integration of work at the technical
level. Decisions at the managerial level relate to the resources necessary for
performance of the technical function and to the beneficiaries of the products or
services provided. Decisions will be concerned with mediating between the
organization and its external environment, such as the users of the organization’s
products or services and the procurement of resources, as well as with the
administration of the internal affairs of the organization including the control of the
operations of the technical function.
In turn, the managerial level interrelates with the community level or
institutional level, concerned with broad objectives and the work of the
organization as a whole. Decisions at the community level will be concerned with
the selection of operations and the development of the organization in relation to
external agencies and the wider social environment.
Examples of the community level within organizations are: the board of
directors of joint stock companies, governing bodies of educational establishments
which include external representatives, trustees of non-profit organizations. Such
bodies provide a mediating link between the managerial level and the technical
level or between the management of an organization and the wider community
interests. Control at the institutional level of the organization may be exerted
through legislation, codes of standards or good practice, trade or professional
associations, political or governmental action, public interest.
If the organization as a whole is to perform effectively, there must be clear
objectives, a soundly designed structure and good communications, both upwards
and downwards, among the different levels of the organization. The managerial
level, for instance, would be unable to plan and supervise the execution of work of
the technical function without the knowledge, expertise, practical know-how and
enthusiasm of people who are closest to the actual tasks to be undertaken. People
operating at the technical level should, therefore, make known to higher levels the
practical difficulties and operational problems related to their work. It is the duty
of the managerial level to take appropriate action on this information and to consult
with people at the community or institutional level.

Dimensions of structure
The variables which determine the dimensions of organization structure can
be identified in a number of ways but are usually taken to include the grouping of
activities, the responsibilities of individuals, levels of hierarchical authority, span
of control and formal organizational relationships.
 An additional important dimension of structure is the impact of information
technology. The introduction of information technology will undoubtedly change
the nature of individual jobs and the formation and structure of work groups. There
will be a movement away from large-scale, centralized organization to smaller
working units. There will be changes in the nature of supervision and in the
traditional hierarchical structure of jobs and responsibilities. New technology will
result in a ‘flatter’ organizational pyramid with fewer management positions
required. The role of the supervisor is likely to change and there are likely to be
fewer supervisors as the staff at operator level can carry out a wider range of
functions and can check their own work.

The importance of good organization structure

The structure of an organization affects not only productivity and economic
efficiency, but also the morale and job satisfaction of its members. The overall
effectiveness of the organization will be influenced both by sound structural design
and by the behavior of people who work within the structure.
Attention must be given to maintaining the socio-technical system and to
integrating the structural and technological requirements of the organization and
the needs and demands of the human part of the organization. A badly designed
structure is likely to give rise to inefficiency, low motivation and morale, late and
inappropriate decisions, conflict, rising costs and lack of development.
There is an underlying need to establish a framework of order and system of
command through which the activities of the organization can be planned,
organized, directed and controlled. This demands attention to certain basic
considerations in the design of organizational structure, such as: clarification of
objectives; centralization; dimensions of structure; division of work and co-
ordination of activities; task and element functions; principles of organization;
span of control and formal organizational relationships.
The essence of structure is the division of work among members of the
organization and the co-ordination of their activities. Most organizations will
contain examples of alternative combinations for grouping activities and relating
different jobs to each other. A particular form of structure which can cause
difficulty is the line and staff organization. Neither side may fully understand nor
appreciate the purpose and role of the other. Staff managers are often criticized for
unnecessary interference in the work of line managers and for being out of touch
with practical realities. Line managers may feel that the staff managers have an
easier and less demanding job because they have no direct responsibility for
producing products or providing services for the customers and are free from day-
to-day operational problems.
Staff managers may feel that their own difficulties and work problems are
not fully appreciated by the line manager. They often complain about resistance to
their attempts to provide assistance and co-ordination. A major source of difficulty
is to persuade line managers to accept and act upon the advice and
recommendations they offer.
With the growth in newer, complex and technologically advanced systems it
has become necessary for organizations to adapt traditional structures in order to
provide greater integration of a wide range of functional activities. In recent years
greater attention has been given, therefore, to more flexible forms of structure and
the creation of groupings based on project teams and matrix organization.
Members of staff from different departments or sections are assigned to the team
for the duration of a particular project.
Project teams may be used for people working together on a common task or
to co-ordinate work on a specific project such as the design, development,
production and testing of a new product, or the design and implementation of a
new system or procedure. A project team is more likely to be effective when it has
a clear objective, a well-defined task, a definite end-result to be achieved and the
composition of the team is chosen with great care. Project teams have been
successfully used in many military systems, aeronautics and space programs.
The matrix organization is a combination of functional departments which
provide a stable base for specialized activities and a permanent location for
members of staff and units that integrate various activities of different functional
departments on a project team, product, program, geographical basis. The matrix
organization establishes a grid, or matrix, with a two-way flow of authority and
responsibility. This can result in problems of co-ordination. Developing an
effective matrix organization takes time and a willingness to learn new roles and
behavior which means that matrix structures are often difficult for management to
implement effectively.
The structure of an organization is depicted usually in the form of an
organization chart which provides, at a given moment in time, a pictorial
representation of the structural framework of an organization. Charts may be used
 as a basis for the analysis and review of structure and may indicate apparent
weaknesses.
(Adapted from Mullins, J. Laurie, Management and Organizational Behaviour)

VOCABULARY

pattern, n. = model, tipar, şablon trustee, n. = membru în consiliul de administratie

lack, n. = lipsă, absenţă, nevoie
exertion, n. = exercitare
flow, n. = flux, curgere, curent
actually, adv. = înrealitate, de fapt
layered, adj. = aşezat în straturi,
stratificat
grid, n. = grilă, reţea
undertake, undertook, undertaken, v.= a întreprinde, a
iniţia, a face
throughout, prep. = peste tot cuprinsul; în tot cursul, de-a
lungul
discrete, n. = individual, distinctiv; separat
establishment, n. = organizare; instituţie, intreprindere
span, n. = interval de timp, durată; perioadă

4.3. Complete the text using the words in the box:

absenteeism colleagues contracts duties flexi time

holiday leave manual maternity morale
satisfaction security sick pay workforce vacation

My working conditions? I’d say they’re really good. The working hours are
reasonable – 38 hours a week, Mondays to Fridays only, and I would get four
weeks paid (1) ................ I always go on a two-week (2) ............... in the summer
and I like to take another week to go skiing in the winter. That still leaves a few
days if I want to take time off for something else. I think we’re even allowed to
take unpaid (3) .................if it’s really necessary. They introduced a
(4) .................system last year, so I can start any time between 7.30 and 9.30 in the
morning, so I sometimes leave at 4 in the afternoon. Of course this means we now
have to clock in and clock out, so we have to do the right number of hours.
 Women get generous (5) ...............leave, although that doesn’t concern me
yet, and there are a lot of women employed half-time or part-time here, so they
have time for their children.
Of course I’m a full-time white-collar worker, hoping to make a career here.
My (6) ................ and I have permanent (7) ................ At least we think so, it’s
hard to be sure about job (8) .................these days. We are consulted if they want
to change our (9) .................or anything.
The entire (10) ................... is well-treated, not just us. The company’s blue-
collar workers, doing (11) ..................jobs, also have good conditions of
employment.
It all makes a change from when I was a student, when I did casual,
unskilled, seasonal work for a fruit company, paid by the hour, with no
(12) ....................or holiday pay or anything. They treated workers really badly, so
(13) ................... was low, nobody was motivated, productivity was minimal, and
there was a lot of (14) ................... and high turnover - I used to see new people
almost every day. There was no job (15) .................., and nothing changed of our
performance was good or bad, so we all did the minimum.

4.4. Match up the following words with the underlined words in the
text:

complaints dismissed enemy

group negotiations ignored trade
pay role staff
stop working unfairly treated unprofitable

Workers in many industries are organized into unions which attempt to

protect their members’ interests. These are known as labor unions in the US, and as
trade unions in Great Britain, because they are largely organized according to (1)
area of work or skill: there are unions for railway workers, electricians, bank (2)
employees, teachers, and so on. In other countries, such as France, unions are
largely political: workers in different industries join a union with a particular
political position.
The primary (3) function of unions is to attempt to ensure fair (4) wages,
reasonable working hours and safe working conditions for their members. Unions
take part in (5) collective bargaining with employers. They can also pursue with
management the (6) grievances of individual employees, and defend workers who
consider that they have been (7) victimized. For example, they might insist on the
reinstatement of a worker who was unfairly (8) sacked.
When unions are dissatisfied with the results of collective bargaining, their
most powerful weapon is to (9) go on strike. Workers on strike sometimes picket
their place of work i. e. they stand outside the entrance, trying to persuade other
workers and delivery drivers not to enter. Of course striking workers do not get
paid, so unions sometimes take other forms of industrial action such as a go-slow
(GB) or slowdown (US), or a work-to-rule, when they begin to obey every rule and
regulation, including those which are generally (10) disregarded, which severely
reduces the amount of work done.
Labor relations are usually better in companies, or industries, or whole
countries, where employers consider unions as necessary partners, to be regularly
consulted on matters which concern them. Where both sides treat the other as an
(11) adversary, there are likely to be a lot of strikes and disputes. But there will
always be problems when employers want to abolish (12) uneconomic jobs and
working practices, and workers want to preserve them.