TABLE OF CONTENTS:

S. NO. PARTICULAR PAGE NO.

1. Contribution Of F.W.Taylor, Henry Fayol 04

2. Concept Of M.B.O 06

3. Different Type Of Plan 08

4. System - Approach 09
5. Deligation Of Authority 11

6. Determinants Of Decentralization 15

7. Staffing, Planning 18

8. Motivation Type Theories 22

9. Leadership Theorem 32

10. Direction Help In Achieving Goal 39

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Q1) Explain and compare the contributions of F.W.Taylor, Henry
Fayol ?
Ans. Henry Fayol is a French Mining Engineer, who developed the concept of general theory of
administration and given 14 principles of management. On the other hand, F.W. Taylor is an
American Mechanical Engineer, who advanced the concept of Scientific Management and given
4 Principles of Management.

Management is viewed as the process in which the responsible members of the organization get
the work done through and with others. Principles of Management are the guidelines that govern
the decision making and behaviour in an organization. There are various theories of management
which are put forth by a number of management thinkers. Two such management thinkers are
Henry Fayol and Fredrick Winslow Taylor (F.W. Taylor).

BASIS FOR
HENRY FAYOL F.W. TAYLOR
COMPARISON
Meaning Henry Fayol, is a father of modern F.W. Taylor, is a father of scientific
management who laid down fourteen management who introduced four
principles of management, for principles of management, for
improving overall administration. increasing overall productivity.
Concept General theory of administration Scientific Management
Emphasis Top level management Low level management
Applicability Universally applicable Applies to specialized organizations
only.
Basis of formation Personal Experience Observation and Experimentation
Orientation Managerial function Production and Engineering
System of Wage Sharing of profit with managers. Differential Payment System
Payment
Approach Manager's approach Engineer's approach

Definition of Henry Fayol’s Theory of Management

Henry Fayol, renowned as ‘father of modern management theory’, as he introduced
comprehensive thinking on management philosophy. He put forward general management theory
that applies to every organization equally and in every field. The principles of management laid
down by Fayol are used by managers to coordinate the internal activities of the company.

Definition of F.W. Taylor’s Theory of Management

Fredrick Winslow Taylor or F.W. Taylor popularly known as ‘father of scientific management’
who with the help of experiments proved that scientific methodology could be applied to
management. A scientific process comprises of observations, experiments, analysis and

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inferences, which Taylor wants to, apply in management to develop a cause and effect
relationship.

 HENRY FAYOL

 Division of Work: Work is divided into small tasks or jobs, which results in
specialization.
 Authority and Responsibility: Authority implies the right to give the command and
obtain obedience and responsibility is the sense of dutifulness that arises out of authority.
 Discipline: Discipline refers to obedience to organizational rules and the terms of
employment. It is to ensure compliance and respect for seniors.
 Unity of Command: An employee will receive orders from one boss only.
 Unity of Direction: All the organizational units should work for the same objectives
through coordinated efforts.
 Subordination: Individual or group interest are sacrificed or surrendered for general
interest.
 Remuneration: Fair and satisfactory payment for both employer and employee.
 Centralization: There must be the optimum utilization of organization’s resources.
 Scalar Chain: Scalar chain implies the superior-subordinate relation, within the
organization.
 Order: In an organization, there must be a proper place for every thing as well as each
thing must be in its appointed place.
 Equity: Sense of equity should exist at all the levels of the organization.
 Stability of tenure of Personnel: Efforts are to be made to reduce employee turnover.
 Initiative: It implies thinking out and implementation of the plan.
 Esprit de Corps: It stresses on the need of team work in the organization.

 FREDRICK WINSLOW TAYLOR

 Science, not the rule of thumb: To improve the performance level, the rule of thumb is
replaced by science.
 Harmony, not discord: There must be a coordination of the activities of the employees
and not discord.
 Cooperation, not individualism: There should be an environment of cooperation in the
organization, of mutual interest.
 Development of every person to his greatest efficiency: Motivation is to be provided to
greatest efficiency to every member of the organization.

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Q2) What is the concept of M.B.O Discuss its process.
Ans.  MBO focuses on effectiveness rather than the efficiency of an organization. In other
words, quality of performance rather than speed. This makes MBO a result-oriented framework.

 Elements of Management by Objectives

Note: These are general elements of MBO, not the steps of MBO. We will cover the steps in the
process of MBO shortly.

1. Goals
Goals are the most important and fundamental elements of the MBO management process. They
are set for all contributors of the organization including managers, employees, CEO, team
leaders, and other contributors.
They make them all responsible for their part of contribution and everybody in the organization
has a sense of what he/she is supposed to do to fit into the big picture. It means that there is no
confusion left and everybody knows their responsibilities.

2. Objectives
Objectives are also the most important elements of the MBO process. They are set for the
organization or we can say for work. Objectives are the target that each contributor has to chase
by using his/her goals.
Objectives also help evaluate the performance of contributors. If contributors have easily
achieved the objectives in a defined period of time, then managers try to make them challenging
yet motivating to further improve their performance.

3. Performance Reviews
Performance reviews help managers to evaluate the weaknesses and strengths of their employees
so they can open a channel of communication to appreciate the performance or fix the errors.
This element also opens up brainstorming sessions for both managers and employees so they can
fix the problems or modify the objectives (if possible).

 Principles of MBO
The following are the most important principles of the MBO process.

1. Focus on growth and development instead of failure and punishment.

2. Open a channel of regular feedback instead of static weekly or monthly reports.
3. Make objectives more challenging but motivating as well for better results.
4. Employees must involve while setting objectives for a particular entity.
5. Make performance-oriented reviews rather than speed-oriented. It means it is the
performance that counts.
6. Focuses on goals rather than methods.

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 Features of MBO
After defining MBO, the principles of MBO, and how it works, we are now able to list
out the main features of the MBO system. Following are the most important features of
the MBO.

1. MBO is a philosophy, not a technique that provides a path to organizational success. It

means MBO is not just limited to a certain area, but it is a philosophy that fits every
aspect of management.
2. Managers and employees define the objectives of the organization or individuals by
working together to set a target that is to be chased later.
3. Later, these defined objectives become the scale of evaluation on which managers
evaluate the performance of their employees.
4. Every contributor has a clear sense of what he/she is supposed to do.
5. MBO defines what is to be achieved instead of how it is to be achieved.
6. It is a result-oriented managerial approach.

 MBO Objectives
Although, we define objectives are the different steps in the process of MBO but
following are the general types of objectives that we must know before involving in the
MBO process. The 3 types of objectives are:

1. Strategic Objectives – Board Related:

These are the top-level objectives defined by superior management of the organization.
They are at the top of the pyramid from where the flow of objectives starts.You can say
strategic objectives define the bigger picture of the company and describe what the
company is going to do to achieve its mission. Some examples of strategic objectives are:
1. Launching new product
2. Increasing sales of existing product
3. Increase profitability
4. Grow market shares

2. Tactical Objectives – Team Related:

These types of objectives work within the organization. These objectives are set by a
group of people or a team that is going to work together to achieve a common goal.

3. Operational Objectives – Individuals Related:

Operational objectives are defined by an individual employee during objectives setting
meetings. The employee sets these objectives according to his/her competencies and the
available resources. As these objectives are set by individuals, therefore, these objectives
vary from person to person. A department can also set operational objectives for its
operational staff.

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Q3) What are the different types of plans, briefly Explain each type ?
ANS.) 1. Operational Planning
Answering the question of “How things need to happen? What are the guidelines to accomplish
the set mission?” describes an operational plan. This plan simply means the daily activities
which are focused in achieving the goal. Operational Plans are generally the single used plans or
the ongoing plan.They can also be planned for one-time events or for a specific need. These
plans include specific rules and regulations and procedures to stand by it. They provide an
adequate guideline for the step-to-step processing of the work.
2. Strategic Planning
The reason for planning is chalked out in the strategic plan. Strategic plans are generally long-
term thinking processes executed by the top-level managers. It is a big picture to cast a vision
and requires mission processing.
It requires a high-level analysis of the entire business. Being the foundational basis of the
organization, strategic planning dictates long term goals which normally tenures for two to ten
years span.
3.Tactical Planning
Tactical Plan is the backbone of Strategic Plan. Generally speaking, they are focused, specific
and short-term plans. They are the plans that initiate the actual work. Tactical plans form the
outline of a strategic plan that eventually structures the organizational plan. Often the tenure of
this plan is quite short and mostly lasts to one year. The strategic plans that get chunked into
actionable plans are called Tactical Planning.
4.Contingency Planning
Contingencies might occur in business. To tackle the contingencies, the contingency planning is
drafted. Thyer ae also named as ‘Special Planning’ by the business experts. In a situation of
change, contingency planning proves to be helpful.
Though managers acknowledge the changes before-hand yet contingency plans help to tackle the
unseen changes. With the complicated business world, the contingency plan becomes more of a
use.

 Types of Policies in Management

Different Policies are used in an organization, that is responsible for each
purpose. Following are the types of policies that are being widely used in
the business world. –
1.Organizational Policies – The policies decide the goal of an organization. They are the overall
general policy that is administered in an organization.
2. Functional Policies – The policy is prepared for different functions, like production,
marketing, finance and personnel. The functional policies are decided keeping in view of the
organizational policies already structured.
3.Originated Policies – This is also known as the internal policy that prepares policies for
subordinates. This policy is being drafted by their managers.
4.Specific Policies – These policies are formulated in regard to some specific issues.

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Q4) Define System-approach and explain how does it ensure co-
ordination ?
ANS. Systems approach is a management perspective which advocates that any business
problem should be seen as system as a whole which is made up of an hierarchy of sub-systems.
So rather than seeing the problem in parts it should be seen as whole. Systems approach can be
applied to all the business domains like administration, insurance, banking, hospitality etc.
Though it defines system as a whole but it keeps focus on the subsystems and components as
well on their role in the entire system. It is linked closely to Systems Thinking. A defined system
has a clear boundary and is separate from the environment. This makes it stand apart to look at
the problem and its solution. Each subsystem contributes to making this system as a whole.
Many administrators and designers use the system approach to solve and articulate a complex
problem. It was first initiated by Ludwing Von Berlanti.
Published by MBA Skool Team, Last Updated: January 14, 2022

 Importance of Systems Approach

Systems approach is very important as it provides the bigger picture. It sees all
departments and subsystems as contributing factors for the overall organization. Overall
success of organizations is seen as a whole and not success of one department over the
other.
Let us take a scenario. If we are facing an issue in a company related to sales and we only
see the problem to be solved with the sales department rather than all the departments
together we may not be able to solve the problem effectively.
Only focusing on sales will lead to more pressure on sales team to increases sales
leading to poor customer experience as the sales department will try hard on
upselling or cross selling. But if we use systems approach and see the problem of
sales at whole level then we might see that the product quality can be an issue or
maybe there is not enough marketing done for the product or may be the after sales
service is not provided leading to drop in sales figures.

The company can then focus on overall goals and strategy to make sure that a high-
quality product or service would be produced with great customer experience. That
will help not only help the sales problem but overall uplift the company.

Systems approach gives insights into each components' workings and helps see its
contribution to the overall system
1. Dependency
Each part of the system derives inputs and information from other system to
achieve the business goal. The parts do not exist in silos but are coupled with one
another to work as part of an entire working system.

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2. Responsiveness
The system changes as per the environment and reacts to the changes in the environment. If the
external environment changes then systems responds as well by making changes in its
parameters to stay relevant and work as per expectations.
3. Results
Systems approach is focused on producing right results for the overall system. Each part needs to
work according to the requirement of the overall system and product expected results.All
departments and sub-systems of the overall large system need to product results.Just one or two
parts performing well will not help the system.
4. Focus
The focus of each part of the system should be clearly and well defined. e.g. All the departments
in the organization should have their clear responsibilities to make the system or organization
work. Overlapping responsibilities can reduce the focus and effectiveness of the entire system

 Advantages of Systems approach

The benefits of this approach are:
1. It helps to see the problem at holistic level and resolves the issues
2. Systems approach helps understand the problem in a better way and comes up with more
efficient solution
3. It clearly defines the scope or the boundary for systems and problems where in influence of
internal and external factors can be seen

 Disadvantages of Systems Approach

This approach has its disadvantages:
1. Sometimes problems are too complex and needs focus on the sub-systems rather than keep
seeing system as a whole.
2. While designing from bottom to top, focus on sub-systems is required and important details
can be left in case focus is only kept on overall system
3. Many a times while solving a specific issue leads to focus on a component and not on overall
system.

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Q5) What is delegation of authority?
Ans. Delegation of Authority means division of authority and powers downwards to the
subordinate. Delegation is about entrusting someone else to do parts of your job. Delegation
of authority can be defined as subdivision and sub-allocation of powers to the subordinates
in order to achieve effective results.

 Elements of Delegation
1. Authority - in context of a business organization, authority can be defined as the
power and right of a person to use and allocate the resources efficiently, to take
decisions and to give orders so as to achieve the organizational objectives Authority
must be well-defined. All people who have the authority should know what is the
scope of their authority is and they shouldn’t misutilize it. Authority is the right to
give commands, orders and get the things done. The top level management has
greatest authority.
Authority always flows from top to bottom. It explains how a superior gets work
done from his subordinate by clearly explaining what is expected of him and how he
should go about it. Authority should be accompanied with an equal amount of
responsibility. Delegating the authority to someone else doesn’t imply escaping from
accountability. Accountability still rest with the person having the utmost authority.
2. Responsibility - is the duty of the person to complete the task assigned to him. A
person who is given the responsibility should ensure that he accomplishes the tasks
assigned to him. If the tasks for which he was held responsible are not completed,
then he should not give explanations or excuses. Responsibility without adequate
authority leads to discontent and dissatisfaction among the person.
Responsibility flows from bottom to top. The middle level and lower level
management holds more responsibility. The person held responsible for a job is
answerable for it. If he performs the tasks assigned as expected, he is bound for
praises. While if he doesn’t accomplish tasks assigned as expected, then also he is
answerable for that.
3. Accountability - means giving explanations for any variance in the actual
performance from the expectations set.
Accountability can not be delegated. For example, if ’A’ is given a task with
sufficient authority, and ’A’ delegates this task to B and asks him to ensure that task
is done well, responsibility rest with ’B’, but accountability still rest with ’A’.
The top level management is most accountable. Being accountable means being
innovative as the person will think beyond his scope of job. Accountability, in short,
means being answerable for the end result. Accountability can’t be escaped. It arises
from responsibility.
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

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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 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.
 Differences between Authority and Responsibility

Authority Responsibility

It is the legal right of a person It is the obligation of subordinate to perform the

or a superior to command his work assigned to him.
subordinates.

Authority is attached to the Responsibility arises out of superior-subordinate

position of a superior in relationship in which subordinate agrees to carry
concern. out duty given to him.

Authority can be delegated by a Responsibility cannot be shifted and is absolute

superior to a subordinate

It flows from top to bottom. It flows from bottom to top.

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Importance of Delegation

Delegation of authority is a process in which the authority and powers are divided and shared

amongst the subordinates. When the work of a manager gets beyond his capacity, there should be

some system of sharing the work. This is how delegation of authority

becomes an important tool in organization function. Through delegation, a manager, in fact, is

multiplying himself by dividing/multiplying his work with the subordinates. The importance of

delegation can be justified by -

1. Through delegation, a manager is able to divide the work and allocate it to the
subordinates. This helps in reducing his work load so that he can work on important
areas such as - planning, business analysis etc.
2. With the reduction of load on superior, he can concentrate his energy on important
and critical issues of concern. This way he is able to bring effectiveness in his work
as well in the work unit. This effectivity helps a manager to prove his ability and
skills in the best manner.
3. Delegation of authority is the ground on which the superior-subordinate
relationship stands. An organization functions as the authority flows from top level
to bottom. This in fact shows that through delegation, the superior-subordinate
relationship become meaningful. The flow of authority is from top to bottom which
is a way of achieving results.
4. Delegation of authority in a way gives enough room and space to the subordinates
to flourish their abilities and skill. Through delegating powers, the subordinates
get a feeling of importance. They get motivated to work and this motivation provides
appropriate results to a concern. Job satisfaction is an important criterion to bring
stability and soundness in the relationship between superior and subordinates.
Delegation also helps in breaking the monotony of the subordinates so that they can
be more creative and efficient.
5. Delegation of authority is not only helpful to the subordinates but it also helps the
managers to develop their talents and skills. Since the manager get enough time
through delegation to concentrate on important issues, their decision-making gets
strong and in a way they can flourish the talents which are required in a manager.
Through granting powers and getting the work done, helps the manager to attain
communication skills, supervision and guidance, effective motivation and the
leadership traits are flourished. Therefore it is only through delegation, a manager
can be tested on his traits.
6. Delegation of authority is help to both superior and subordinates. This, in a
way, gives stability to a concern’s working. With effective results, a concern can
think of creating more departments and divisions flow working. This will require
creation of more managers which can be fulfilled by shifting the experienced, skilled
managers to these positions. This helps in both virtual as well as horizontal growth
which is very important for a concern’s stability.

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  Principles of Delegation
There are a few guidelines in form of principles which can be a help to the manager to process of
delegation. The principles of delegation are as follows: -

1. Principle of result excepted

This principle suggests that every manager before delegating the powers to the
subordinate should be able to clearly define the goals as well as results expected
from them. The goals and targets should be completely and clearly defined and the
standards of performance should also be notified clearly.
For example, a marketing manager explains the salesmen regarding the units of sale
to take place in a particular day, say ten units a day have to be the target sales. While
a marketing manger provides these guidelines of sales, mentioning the target sales is
very important so that the salesman can perform his duty efficiently with a clear set
of mind.
2. Principle of Parity of Authority and Responsibility
According to this principle, the manager should keep a balance between authority
and responsibility. Both of them should go hand in hand.
According to this principle, if a subordinate is given a responsibility to perform a
task, then at the same time he should be given enough independence and power to
carry out that task effectively. This principle also does not provide excessive
authority to the subordinate which at times can be misused by him. The authority
should be given in such a way which matches the task given to him. Therefore, there
should be no degree of disparity between the two.
3. Principle of absolute responsibility
This says that the authority can be delegated but responsibility cannot be delegated
by managers to his subordinates which means responsibility is fixed. The manager at
every level, no matter what is his authority, is always responsible to his superior for
carrying out his task by delegating the powers. It does not means that he can escape
from his responsibility. He will always remain responsible till the completion of
task.
Every superior is responsible for the acts of their subordinates and are accountable to
their superior therefore the superiors cannot pass the blame to the subordinates even
if he has delegated certain powers to subordinates example if the production
manager has been given a work and the machine breaks down. If repairmen is not
able to get repair work done, production manager will be responsible to CEO if their
production is not completed.
4. Principle of Authority level
This principle suggests that a manager should exercise his authority within the
jurisdiction/framework given.
The manager should be forced to consult their superiors with those matters of which
the authority is not given that means before a manager takes any important decision,
he should make sure that he has the authority to do that on the other hand,
subordinate.

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Q6) What are the determinants of decentralization?

Ans.  Decentralization is a systematic delegation of authority at all levels of management and

in all of the organization. In a decentralization concern, authority in retained by the top
management for taking major decisions and framing policies concerning the whole concern. Rest
of the authority may be delegated to the middle level and lower level of management.
Centralization is said to be a process where the concentration of decision making is in a few
hands. All the important decision and actions at the lower level, all subjects and actions at the
lower level are subject to the approval of top management. According to Allen, “Centralization”
is the systematic and consistent reservation of authority at central points in the organization. The
implication of centralization can be :-
1. Reservation of decision making power at top level.
2. Reservation of operating authority with the middle level managers.
3. Reservation of operation at lower level at the directions of the top level.
Under centralization, the important and key decisions are taken by the top management and the
other levels are into implementations as per the directions of top level. For example, in a
business concern, the father & son being the owners decide about the important matters and all
the rest of functions like product, finance, marketing, personnel, are carried out by the
department heads and they have to act as per instruction and orders of the two people. Therefore
in this case, decision making power remain in the hands of father & son.
On the other hand, Decentralization is a systematic delegation of authority at all levels of
management and in all of the organization.
In a decentralization concern, authority in retained by the top management for taking major
decisions and framing policies concerning the whole concern. Rest of the authority may be
delegated to the middle level and lower level of management.
The degree of centralization and decentralization will depend upon the amount of authority
delegated to the lowest level. According to Allen, “Decentralization refers to the systematic
effort to delegate to the lowest level of authority except that which can be controlled and
exercised at central points.Decentralization is not the same as delegation. In fact, decentralization
is all extension of delegation. Decentralization pattern is wider is scope and the authorities are
diffused to the lowest most level of management.Delegation of authority is a complete process
and takes place from one person to another. While decentralization is complete only when fullest
possible delegation has taken place. For example, the general manager of a company is
responsible for receiving the leave application for the whole of the concern. The general manager
delegates this work to the personnel manager who is now responsible for receiving the leave
applicants. In this situation delegation of authority has taken place. On the other hand, on the
request of the personnel manager, if the general manager delegates this power to all the
departmental heads at all level, in this situation decentralization has taken place.

There is a saying that “Everything that increasing the role of subordinates is

decentralization and that decreases the role is centralization”. Decentralization is wider in
scope and the subordinate’s responsibility increase in this case. On the other hand, in delegation
the managers remain answerable even for the acts of subordinates to their superiors

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  Implications of Decentralization
1. There is less burden on the Chief Executive as in the case of centralization.
2. In decentralization, the subordinates get a chance to decide and act independently
which develops skills and capabilities. This way the organization is able to process
reserve of talents in it.
3. In decentralization, diversification and horizontal can be easily implanted.
4. In decentralization, concern diversification of activities can place effectively since
there is more scope for creating new departments. Therefore, diversification growth
is of a degree.
5. In decentralization structure, operations can be coordinated at divisional level which
is not possible in the centralization set up.
6. In the case of decentralization structure, there is greater motivation and morale of the
employees since they get more independence to act and decide.
7. In a decentralization structure, co-ordination to some extent is difficult to maintain
as there are lot many department divisions and authority is delegated to maximum
possible extent, i.e., to the bottom most level delegation reaches.
8. Centralization and decentralization are the categories by which the pattern of
authority-relationships becomes clear. The degree of centralization and de-
centralization can be affected by many factors like nature of operation, volume of
profits, number of departments, size of a concern, etc. The larger the size of a
concern, a decentralization set up is suitable in it.

 Delegation and Decentralization

Basis Delegation Decentralization

Managers delegate some of their

Right to take decisions is shared by top
Meaning function and authority to their
management and other level of management.
subordinates.

Scope of delegation is limited as

Scope is wide as the decision making is shared by
Scope superior delegates the powers to the
the subordinates also.
subordinates on individual bases.

Responsibility remains of the managers

Responsibility Responsibility is also delegated to subordinates.
and cannot be delegated

Freedom is not given to the Freedom to work can be maintained by

Freedom of
subordinates as they have to work as subordinates as they are free to take decision and
Work
per the instructions of their superiors. to implement it.

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Nature It is a routine function It is an important decision of an enterprise.

Delegation is important in all concerns Decentralization becomes more important in large

Need on purpose whether big or small. No enterprises concerns and it depends upon the decision made
can work without delegation. by the enterprise, it is not compulsory.

Grant of The authority is granted by one It is a systematic act which takes place at all level
Authority individual to another. and at all functions in a concern.

Grant of Authority with responsibility is delegated to

Responsibility cannot be delegated
Responsibility subordinates.

Degree of delegation varies from Decentralization is total by nature. It spreads

Degree concern to concern and department to throughout the organization i.e. at all levels and a
department. functions

It is an outcome which explains relationship

Delegation is a process which explains
Process between top management and all other
superior subordinates relationship
departments.

Delegation is essential of all kinds of

Essentiality Decentralization is a decisions function by nature
concerns

Delegation is essential for creating the Decentralization is an optional policy at the

Significance
organization discretion of top management.

It is considered as a general policy of top

Withdrawal Delegated authority can be taken back.
management and is applicable to all departments.

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Q7) Explain Staffing planning ?

Ans.The staffing process helps to select the right person with appropriate skills, qualifications
and experience to recruit them to different positions and jobs in an organisation. Staffing means
the process of filling and keeping various roles in an organisation filled. In management, it
means the process of recruiting the right person at the right place to increase the efficiency of the
organisation. An enterprise with an efficient workforce cannot function properly, so staffing
helps an enterprise to acquire a workforce. It includes taking up different people to perform
various functions in different departments. It is an important process to run an organization or a
business. This is the first and major step in human resource management.

 Steps in Staffing Process

Staffing is a complicated process, and it involves various steps, It starts with workforce planning,
and ends with the proper recruitment of the employees. It also checks the performance of the
employees effectively. For successful staffing in an organisation, a manager has to perform
various steps of staffing that are as follows:
1. Planning the Manpower Requirements: The very first steps of staffing are to evaluate
the manpower requirement of an organisation to match the job and positions available in
the organisation. It also helps in determining the skills and qualifications required for a
specific job in the organisation.
2. Recruitment of Employees: Once the requirement is evaluated, the next step involves
the searching of prospective persons that are eligible for the job and inviting applicants to
apply for the positions. In this process, the employer advertises about the openings in the
organisation through various media, which makes it easy for the applicants to get to know
about the job vacancy and the required skills.
3. Selection of Employees: The selection process helps in screening the employees and
identifying the deserving candidate who will be suitable for a specified job. Therefore, it
can be said that the main objective of selection is to identify the right employee for the
right job.
4. Orientation and Placement: Once the right candidates are selected, the organization
makes the employees familiar with the working units and working environments through
various orientation programs. Then, the placement is done by putting the right candidate
at the right place which helps in the proper functioning of the organisation.
5. Training and Development: Once the placement is done, the next step involves the
training and development of employees. Training is an integral part of the staffing
process, and it helps the employees to develop their skills and knowledge.
6. Remuneration to Employees: It is the compensation given to the employees in
monetary terms in exchange for the work they do for the organization. It is given
according to work done by the employees.
7. Performance Evaluation: It is an assessment done to evaluate the attitude, behavior, and
performance of an employee. These steps of staffing also help in determining the success
of the whole recruitment process. It gives the management a clear picture of the success
rate of the entire recruitment procedure. This step includes elements like appraisal,

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 promotion, and transfer. The performance of the employee is assessed comparatively to
the other employees and also to his own previous performance. Based on these criteria,
the employee gets a hike on his pay or a promotion. Sometimes, employees are
transferred to another location of the same company and are generally attached with a
level up in his position or given certain benefits.
8. Promotion of Employees: Promotion in simple words means the shifting of an employee
to a higher post demanding a more significant responsibility. It not only makes the
employee responsible but also keeps him motivated to do his work efficiently. With the
promotion, the monetary benefits that the employee receives are also increased, which
makes him more efficient to complete the work on time.
9. Transfer of Employees: As promotion is shifting of the employee to a higher post,
transfer refers to the shifting of employees to a different unit or department being in the
same position, This is done to develop new skills and knowledge of the employee.

Staffing Process Flow Chart

Staffing is a complicated process, so before starting with the staffing process, the manager has to
prepare a flowchart to make the whole process easier and effective. He/She should plan and act
according to the staffing process flowchart to make the process a success. The flowchart saves a
lot of time and makes it easy to complete the selection and recruitment process.

Benefits of Staffing Process

Every organization needs to have efficient and competent employees to achieve its goals and
objectives. The staffing function helps in acquiring such employees for an organization. It not
only acquires the employees but also helps in their training and development. The most
important feature of methods of staffing in management is that it allows the timely recruitment of
the right person in the right place for the efficient working of the organization.

 It helps in knowing the organizational requirements and achieving them by recruiting the
exact person to do the job.
 It helps in recruiting the correct ones, so it helps in improving the quality of human
resources, when these people are trained properly, they can function more efficiently. On
a whole, it improves the productivity of the organization.
 When the employees are trained according to the job requirement, they can work
efficiently, this will improve their morale and give them job satisfaction
 Training the staff about how to behave with superiors, subordinates, and colleagues helps
in building a harmonious working environment at the workplace

 Staffing process consists of the following steps:

1. Manpower Planning
2. Recruitment
3. Selection
4. Placement

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5. Training
6. Development
7. Promotion
8. Transfer
9. Appraisal
10. Determination of Remuneration

We will be discussing all these steps in detail in the following lines.

 Manpower Planning: Manpower planning is the quantitative and qualitative
measurement of the manpower that is required in an organisation. It involves evaluation
and creation of the manpower inventory and also to develop the necessary talents among
the employees that are selected for obtaining promotion.
 Recruitment: Recruitment is the process of finding the potential employees of an
organisation and persuading them to apply for the available positions in the organisation.
If the recruitment process is followed scientifically, then it will result in better wages,
high morale and higher productivity among the employees.
 Selection: Selection is the process of shortlisting of potential candidates and eliminating
the candidates that are not suitable for the positions available in the organisation. The
purpose of selection is to hire the right candidate for the right position, which will lead to
efficient running of operations for the organisation.
 Placement: Placement refers to the process of introducing an employee to the job for
which he was hired in the organisation. The employee will be provided with a basic
orientation about the company and its work areas.
 Training: Training is the process of providing the newly recruited employees an idea
about the type of work that they are going to do and how to do that. This falls under the
training department.
Training is an essential part of hiring as it helps keep the employees updated on the way of work
in an organisation. Also due to advances in technology, newer technologies will evolve, that
makes it necessary for employees to be updated with the latest development.
 Development: Development refers to the opportunity of growth of the employees in the
organisation. The organisation must provide ample opportunities for the development of
the employees, without which the employees may become frustrated.
 Promotion: Promotion is referred to as the process of giving the employees a raise in
salary, designation or both. The raise in designation is associated with a raise in wages or
bonus or incentives. There can be some instances where the change in designation does
not result in increase in pay.
 Transfer: Transfer is the process of shifting of an employee from one position to another
in the organisation without any monetary benefit, or any increase in the responsibilities.
This function needs to be evaluated from time to time.

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  Appraisal: Appraisal is the process of checking the progress of the work done by the
subordinates. It also studies human behavior and also the attitude and aptitude of the
employee towards performing the job.
 Determination of Remuneration : The remuneration of an employee is very important
for sustenance. It is regarded as one of the difficult functions to perform as there exists no
tools which can accurately determine wages.

Q8) Explain types of Motivation theories ?

Ans. 1. Maslow’s Need Hierarchy Theory:

It is probably safe to say that the most well-known theory of motivation is Maslow’s need
hierarchy theory Maslow’s theory is based on the human needs. Drawing chiefly on his clinical
experience, he classified all human needs into a hierarchical manner from the lower to the higher
order.
In essence, he believed that once a given level of need is satisfied, it no longer serves to motivate

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man. Then, the next higher level of need has to be activated in order to motivate the man.
Maslow identified five levels in his need hierarchy.

These are now discussed one by one:

1. Physiological Needs:
These needs are basic to human life and, hence, include food, clothing, shelter, air, water and
necessities of life. These needs relate to the survival and maintenance of human life. They exert
tremendous influence on human behaviour. These needs are to be met first at least partly before
higher level needs emerge. Once physiological needs are satisfied, they no longer motivate the
man.
2. Safety Needs:
After satisfying the physiological needs, the next needs felt are called safety and security needs.
These needs find expression in such desires as economic security and protection from physical
dangers. Meeting these needs requires more money and, hence, the individual is prompted to
work more. Like physiological needs, these become inactive once they are satisfied.
3. Social Needs:
Man is a social being. He is, therefore, interested in social interaction, companionship,
belongingness, etc. It is this socialising and belongingness why individuals prefer to work in
groups and especially older people go to work.
4. Esteem Needs:
These needs refer to self-esteem and self-respect. They include such needs which indicate self-
confidence, achievement, competence, knowledge and independence. The fulfillment of esteem
needs leads to self-confidence, strength and capability of being useful in the organisation.
However, inability to fulfill these needs results in feeling like inferiority, weakness and
helplessness.
5. Self-Actualisation Needs:
This level represents the culmination of all the lower, intermediate, and higher needs of human
beings. In other words, the final step under the need hierarchy model is the need for self-
actualization. This refers to fulfillment.
The term self-actualization was coined by Kurt Goldstein and means to become actualized in
what one is potentially good at. In effect, self- actualization is the person’s motivation to
transform perception of self into reality.
According to Maslow, the human needs follow a definite sequence of domination. The second
need does not arise until the first is reasonably satisfied, and the third need does not emerge until
the first two needs have been reasonably satisfied and it goes on. The other side of the need
hierarchy is that human needs are unlimited. However, Maslow’s need hierarchy-theory is not
without its detractors.

 The main criticisms of the theory include the following:

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1. The needs may or may not follow a definite hierarchical order. So to say, there may be

overlapping in need hierarchy. For example, even if safety need is not satisfied, the social need

may emerge.

2. The need priority model may not apply at all times in all places.

3. Researches show that man’s behaviour at any time is mostly guided by multiplicity of

behaviour. Hence, Maslow’s preposition that one need is satisfied at one time is also of doubtful

validity.

4. In case of some people, the level of motivation may be permanently lower. For example, a

person suffering from chronic unemployment may remain satisfied for the rest of his life if only

he/she can get enough food.

Notwithstanding, Maslow’s need hierarchy theory has received wide recognition, particularly

among practicing managers. This can be attributed to the theory’s intuitive logic and easy to

understand. One researcher came to the conclusion that theories that are intuitively strong die

hard’.

2. Herzberg’s Motivation Hygiene Theory:

The psychologist Frederick Herzberg extended the work of Maslow and propsed a new

motivation theory popularly known as Herzberg’s Motivation Hygiene (Two-Factor) Theory.

Herzberg conducted a widely reported motivational study on 200 accountants and engineers
employed by firms in and around Western Pennsylvania.

He asked these people to describe two important incidents at their jobs:

(1) When did you feel particularly good about your job, and

(2) When did you feel exceptionally bad about your job? He used the critical incident method of

obtaining data.

The responses when analysed were found quite interesting and fairly consistent. The replies

respondents gave when they felt good about their jobs were significantly different from the

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replies given when they felt bad. Reported good feelings were generally associated with job

satisfaction, whereas bad feeling with job dissatisfaction. Herzberg labelled the job satisfiers

motivators, and he called job dissatisfies hygiene or maintenance factors. Taken together, the

motivators and hygiene factors have become known as Herzberg’s two-factor theory of

motivation

Herzberg’s motivational and hygiene factors.According to Herzberg, the opposite of satisfaction

is not dissatisfaction. The underlying reason, he says, is that removal of dissatisfying

characteristics from a job does not necessarily make the job satisfying. He believes in the

existence of a dual continuum. The opposite of ‘satisfaction’ is ‘no satisfaction’ and the opposite

of ‘dissatisfaction’ is ‘no dissatisatisfaction’.

According to Herzberg, today’s motivators are tomorrow’s hygiene because the latter stop

influencing the behaviour of persons when they get them. Accordingly, one’s hygiene may be the

motivator of another.

However, Herzberg’s model is labeled with the following criticism also:

2. People generally tend to take credit themselves when things go well. They blame

failure on the external environment.

2. The theory basically explains job satisfaction, not motivation.

3. Even job satisfaction is not measured on an overall basis. It is not unlikely that

a person may dislike part of his/ her job, still thinks the job acceptable.

4. This theory neglects situational variable to motivate an individual.

3. Because of its ubiquitous nature, salary commonly shows up as a motivator as

well as hygine.

Regardless of criticism, Herzberg’s ‘two-factor motivation theory’ has been

widely read and a few managers seem untaminar with his recommendations. The

main use of his recommendations lies in planning and controlling of employees

work.

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3. McClelland’s Need Theory:

Another well-known need-based theory of motivation, as opposed to hierarchy of needs of

satisfaction-dissatisfaction, is the theory developed by McClelland and his associates’.

McClelland developed his theory based on Henry Murray’s developed long list of motives and

manifest needs used in his early studies of personality. McClelland’s need-theory is closely

associated with learning theory, because he believed that needs are learned or acquired by the

kinds of events people experienced in their environment and culture.

He found that people who acquire a particular need behave differently from those who do not

have. His theory focuses on Murray’s three needs; achievement, power and affiliation. In the

literature, these three needs are abbreviated “n Ach”, “n Pow”, and “n Aff” respectively’.

 They are defined as follows:

Need for Achievement:

This is the drive to excel, to achieve in relation to a set of standard, and to strive to succeed. In
other words, need for achievement is a behaviour directed toward competition with a standard of
excellence. McClelland found that people with a high need for achievement perform better than
those with a moderate or low need for achievement, and noted regional / national differences in
achievement motivation.

Through his research, McClelland identified the following three characteristics of high-

need achievers:

1. High-need achievers have a strong desire to assume personal responsibility for performing a

task for finding a solution to a problem.

2. High-need achievers tend to set moderately difficult goals and take calculated risks.

3. High-need achievers have a strong desire for performance feedback.

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Need for Power:
The need for power is concerned with making an impact on others, the desire to influence others,
the urge to change people, and the desire to make a difference in life. People with a high need for
power are people who like to be in control of people and events. This results in ultimate
satisfaction to man.

People who have a high need for power are characterized by:

1. A desire to influence and direct somebody else.

2. A desire to exercise control over others.

3. A concern for maintaining leader-follower relations.

Need for Affiliation:

The need for affiliation is defined as a desire to establish and maintain friendly and warm
relations with other people’. The need for affiliation, in many ways, is similar to Maslow’s social
needs.

The people with high need for affiliation have these characteristics:

1. They have a strong desire for acceptance and approval from others.

2. They tend to conform to the wishes of those people whose friendship and companionship they

value.

3. They value the feelings of others.

The three need theories of motivation just discussed. The chart shows the parallel relationship

between the needs in each of the theories. Maslow refers to higher- lower order needs, whereas

Herzberg refers to motivation and hygiene factors.

4. McGregor’s Participation Theory:

Douglas McGregor formulated two distinct views of human being based on participation of

workers. The first basically negative, labeled Theory X, and the other basically positive, labled

Theory Y.

Theory X is based on the following assumptions:

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1. People are by nature indolent. That is, they like to work as little as possible.

2. People lack ambition, dislike responsibility, and prefer to be directed by others.

3. People are inherently self-centered and indifferent to organisational needs and goals.

4. People are generally gullible and not very sharp and bright.

On the contrary, Theory Y assumes that:

1. People are not by nature passive or resistant to organisational goals.

2. They want to assume responsibility.

3. They want their organisation to succeed.

4. People are capable of directing their own behaviour.

5. They have need for achievement.

What McGregor tried to dramatise through his theory X and Y is to outline the extremes to draw

the fencing within which the organisational man is usually seen to behave. The fact remains that

no organisational man would actually belong either to theory X or theory Y. In reality, he/she

shares the traits of both. What actually happens is that man swings from one set or properties to

the other with changes in his mood and motives in changing .environment.

5. Urwick’s Theory Z:

Much after the propositions of theories X and Y by McGregor, the three theorists Urwick,
Rangnekar, and Ouchi-propounded the third theory lebeled as Z theory.

The two propositions in Urwicks’s theory are that:

(i) Each individual should know the organisational goals precisely and the amount of

contribution through his efforts towards these goals.

(ii) Each individual should also know that the relation of organisational goals is going to satisfy

his/her needs positively.

In Urwick’s view, the above two make people ready to behave positively to accomplish both

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organisational and individual goals.

However, Ouchi’s Theory Z has attracted the lot of attention of management practitioners as well

as researchers. It must be noted that Z does not stand for anything, is merely the last alphabet in

the English Language.

Theory Z is based on the following four postulates:

1. Strong Bond between Organisation and Employees

2. Employee Participation and Involvement

3. No Formal Organisation Structure

4. Human Resource Development

Ouchi’s Theory Z represents the adoption of Japanese management practices (group decision

making, social cohesion, job security, holistic concern for employees, etc.)by the American

companies. In India, Maruti-Suzuki, Hero-Honda, etc., apply the postulates of theory Z.

6. Argyris’s Theory:

Argyris has developed his motivation theory based on proposition how management practices

affect the individual behaviour and growth In his view, the seven changes taking place in an

individual personality make him/her a mature one. In other words, personality of individual

develops

Argyris views that immaturity exists in individuals mainly because of organisational setting and

management practices such as task specialisation, chain of command, unity of direction, and

span of management. In order to make individuals grow mature, he proposes gradual shift from

the existing pyramidal organisation structure to humanistic system; from existing management

system to the more flexible and participative management.

He states that such situation will satisfy not only their physiological and safety needs, but also

will motivate them to make ready to make more use of their physiological and safety needs. But

26
also will motivate them to make ready to make more use of their potential in accomplishing

organisational goals.

7. Vroom’s Expectancy Theory:

One of the most widely accepted explanations of motivation is offered by Victor Vroom in his
Expectancy Theory” It is a cognitive process theory of motivation. The theory is founded on the
basic notions that people will be motivated to exert a high level of effort when they believe there
are relationships between the effort they put forth, the performance they achieve, and the
outcomes/ rewards they receive.
The relationships between notions of effort, performance, and reward

Thus, the key constructs in the expectancy theory of motivation are:

1. Valence: Valence, according to Vroom, means the value or strength one places on a particular
outcome or reward.

2. Expectancy: It relates efforts to performance.

3. Instrumentality: By instrumentality, Vroom means, the belief that performance is related to

rewards. Thus, Vroom’s motivation can also be expressed in the form of an equation as follows:
Motivation = Valence x Expectancy x Instrumentality
Being the model multiplicative in nature, all the three variables must have high positive values to
imply motivated performance choice. If any one of the variables approaches to zero level, the
possibility of the so motivated performance also touches zero level.

However, Vroom’s expectancy theory has its critics. The important ones are:Critics like

Porter and Lawler lebeled it as a theory of cognitive hedonism which proposes that individual

cognitively chooses the course of action that leads to the greatest degree of pleasure or the

smallest degree of pain.

2. The assumption that people are rational and calculating makes the theory idealistic.

3. The expectancy theory does not describe individual and situational differences.

But the valence or value people place on various rewards varies. For example, one employee

prefers salary to benefits, whereas another person prefers to just the reverse. The valence for the

same reward varies from situation to situation.

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In spite of all these critics, the greatest point in me expectancy theory is that it explains why

significant segment of workforce exerts low levels of efforts in carrying out job responsibilities.

8. Porter and Lawler’s Expectancy Theory:

In fact, Porter and Lawler’s theory is an improvement over Vroom’s expectancy theory. They

posit that motivation does not equal satisfaction or performance. The model suggested by them

encounters some of the simplistic traditional assumptions made about the positive relationship

between satisfaction and performance. They proposed a multi-variate model to explain the

complex relationship that exists between satisfaction and performance.

What is the main point in Porter and Lawler’s model is that effort or motivation does not lead

directly to performance. It is intact, mediated by abilities and traits and by role perceptions.

Ultimately, performance leads to satisfaction,

There are three main elements in this model. Let us briefly discuss these one by one.

Effort:

Effort refers to the amount of energy an employee exerts on a given task. How much effort an

employee will put in a task is determined by two factors-

(i) Value of reward and

(ii) Perception of effort-reward probability.

Performance:

One’s effort leads to his/her performance. Both may be equal or may not be. However the

amount of performance is determined by the amount of labour and the ability and role perception

of the employee. Thus, if an employee possesses less ability and/or makes wrong role perception,

his/her performance may be low in spite of his putting in great efforts.

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Satisfaction:

Performance leads to satisfaction. The level of satisfaction depends upon the amount of rewards

one achieves. If the amount of actual rewards meet or exceed perceived equitable rewards, the

employee will feel satisfied. On the country, if actual rewards fall short of perceived ones, he/she

will be dissatisfied.

Rewards may be of two kinds—intrinsic and extrinsic rewards. Examples of intrinsic rewards are

such as sense of accomplishment and self-actualisation. As regards extrinsic rewards, these may

include working conditions and status. A fair degree of research support that, the intrinsic

rewards are much more likely to produce attitudes about satisfaction that are related to

performance.

There is no denying of the fact that the motivation model proposed by Porter and Lawler is quite

complex than other models of motivation. In fact motivation itself is not a simple cause-effect

relationship rather it is a complex phenomenon Porter and Lawler have attempted to measure

variables such as the values of possible rewards, the perception of effort-rewards probabilities

and role perceptions in deriving satisfaction.

They recommended that the managers should carefully reassess their reward system and

structure. The effort-performance-reward-satisfaction should be made integral to the entire

system of managing men in organisation.

Q9) Explain the leadership theories ?

Ans. A successful leader possesses personality, bravery,  a transparent vision, and ambition. A
strong leader creates organizational success by encouraging the team to perform at their
highest level.
Essential Leadership Skills  of Excellent  Leaders

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 Understand the way to offer support. Supportive leaders are accessible to their staff,
transparent about their choices, team players, and adept communicators of plans and
tactics.

 Have empathy and demonstrate it

 Keep the lines of communication open

 Being capable of taking decisions

 Effective planning

 Collaborate.

 10 Major Leadership Theories You Need to Know About

1. The Transactional Theory or Management Theory

Well during Industrial Revolution, this transactional theory was developed to boost
company productivity. It is a leadership approach that emphasizes the value of
hierarchy for enhancing organizational effectiveness. These managers place high
importance on structure and utilize their authority to enforce rules to inspire staff to
perform at their best. In accordance with this philosophy, workers are rewarded for
achieving their given objectives. The concept also presupposes that workers must
comply with managerial directives.
Managers whopractice transactional leadership keep an eye on their staff, making sure
they are rewarded for reaching milestones and
disciplined when they fall short. These executives, however, do not serve as a trigger
for a company's expansion. Instead, they concentrate on upholding the organization's
policies and standards to ensure that everything goes as planned.
Leaders Who Practice Transactional Leadership:
1. Target immediate objectives.
2. Favor standardized processes and regulations
3. Recent changes

4.Discourage original thought

5.Emphasis on one's own interests
6.Encourage performance
When there are challenges that are clearly stated and the main goal is to finish a work,

30
 transactional leadership works well.
2. Theory of Transformation
The relationship between leaders and staff can help the organization, according to
the transformational theory of management. This leadership theory contends that
effective leaders inspire workers to go above and beyond what they are capable of.
Leaders develop a vision for their team members and motivate them to realize it.
Employee morale is raised and inspired by transformational leaders, which helps them
perform better at work. These managers encourage staff members by their deeds rather
than their words because they specialize in setting an example.

Leaders Who Practice Transformational Leadership:

a. Self-manage

b. Set an example

c. Give interaction a high priority

d. Be proactive in your work

e. Promote the development of employees

f. Receptive to fresh concepts

g. Take chances and make difficult choices

Transformational leaders, as opposed to transactional leaders, prioritize failed processes
and gather personnel who get along well to accomplish shared corporate objectives.
Additionally, effective executives prioritize the requirements of the organization and its
employees over their own.

The Theory of Contingencies

According to the contingency hypothesis, there is no one right way to run an
organization. Determining the optimal strategy for leading an organization to achieve
depends on both internal and external considerations. The right candidate should fit the
correct scenario, according to the contingency theory.

The following elements influence the leadership style, based on contingency theory:

 Management approach

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 Work speed

 Organizational policies and culture

 Employee spirit

 Employees' level of maturity

 Relationship between coworkers or members of a team

 Organizational objectives

 Environment and routine at work

The management strategy that will help the organization achieve its objectives in a
particular situation is decided by the leader.
According to this view, situations determine whether or not leaders are effective. No
matter how successful a leader is, the idea explains, difficult situations will always
arise. It emphasizes that the leaders are aware that the conditions in combination with
their abilities have a role in their achievement.
4. The Theory of Situations
Similar to the contingency theory, this idea emphasizes the significance of context and
holds that a leader should adjust to the shifting context to achieve objectives and make
judgments. The level of competence and dedication of the team members can
influence how these leaders choose to lead. Situational leadership, as per situational
theory:
1. Develop a connection with the workforce
2. Encourage employees
3. Recognize when alternative leadership philosophies are required
in a given situation
4. Develop teams and organizational units

1. The idea also distinguishes four main leadership styles:

i.) Telling: Managers instruct staff members on what needs to be done and how to go
about it.
2. Selling: Team members are persuaded to adopt a leader's concepts or ideas.
3. Participating: Effective leaders encourage their team members to take an active part
in problem-solving and decision-making processes.

32
 4. Delegating: Limiting their involvement, leaders hand off the majority of the work to
the team. Such leaders defer to the group for decision-making but they are always
ready for advice.
The theory lists a few essential traits of a situational leader, such as problem-solving
abilities, trust, adaptability, insight, and coaching.
5. The Great Man Theory
One of the first theories on leadership makes the assumption that these qualities are
inherent, which indicates that leaders are born, not created, and cannot be learned.
This hypothesis asserts that a leader has certain innate human characteristics, such as:

 Glamour

 Decisive

 Wisdom

 Daring

 Assertiveness

 Appeal

This viewpoint emphasizes the fact that individuals cannot be taught to be effective leaders. It's a
quality that either you have or you don't. These abilities come naturally, thus you cannot learn
them or receive training in them. In addition, the idea holds that these leadership qualities are
constant over time and apply to all organizations, regardless of the setting in which these leaders
are employed. The idea that exceptional leaders emerge when they are required is another tenet
of this leadership ideology.
6. The Trait Theory
The great man theory is expanded upon by the trait theory of leadership, which is predicated on
the idea that effective leaders have particular personality qualities and features of behavior. They
can become effective leaders in a number of circumstances thanks to these qualities. It also
promotes the idea that certain people are more naturally gifted as leaders than others. Effective
people have hobbies and personality traits that are very different from those of non-leaders.
The main characteristics of a successful leader are:

 Emotional equilibrium

 Acknowledging one's duty

33
  Competence

 Recognising obstacles

 Thinking with action

 Motivational abilities

 Talents in communication

 Tenacity and flexibility

 Making decisions with assurance

You can learn more about your limitations and strengths with the help of this leadership idea.
Then, you can try to strengthen your areas of weakness.The ideal person for a leadership position
is chosen by many organizations using the trait approach.
7. Behaviorist Theory: According to this view, a person's leadership abilities are a product of
their environment. Different learning talents contribute to effective management. The behavioral
idea holds that leaders are formed and trained, not born, in contrast to the model of leadership. In
other words, a leader's performance is not influenced by their inherent traits because leadership
qualities are driven by behavior. Anyone is capable of becoming a leader with the right training
and instruction.
According to the theory, in order to boost the output and morale of their team, managers should
be mindful of their own behavior. This theory classifies managers into the following categories
depending on the leadership styles it acknowledges:

 Task-focused managers

 Leaders who put people first

 Apathetic leaders

 Effective leaders

 Dictatorial authorities

 Current authorities

 Reliable leaders

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 Shrewd businesspeople

 Daddy-like bosses

 Heads of Country Clubs

It is simple to assess the style of leadership of construction professionals, team
leaders, or indeed any skilled leader using the behavioral theory.
9. Behavioral Theory
Behavioral leadership theory focuses on the actions of leaders and holds that other
leaders are able to imitate similar actions. Because it is sometimes known, the design
theory contends that successful leaders could also be developed through teachable
conduct rather than being born with it. The behaviors of a pacesetter are extensively
emphasized in behavioral theories of leadership; this theory contends that observing a
leader's behavior is the best indicator of how successful their leadership will be. The
behavioral learning hypothesis emphasizes behavior instead of traits. Consistent with
this idea, observable patterns of conduct are classified as "styles of leadership." Task-
oriented leaders, club leaders, people-oriented leaders, dictatorial leaders, status-quo
leaders, and more are some samples of leadership styles.
10. Functional Theory
The functional theory of leadership emphasizes how employment or organization is
being led rather than who has been formally designated as the leader. Within the
functional leadership approach,  the power to get things done is supported by a
collection of people's behaviors rather than one individual.
11. Integrated Psychological Theory
Integrative leadership may be a  new style of leadership that encourages cooperation
across a variety of barriers in order to advance the common good. It combines
leadership theories and techniques that have their roots in five important societal
spheres: industry, government, nonprofits, the media, and the community.
Why Are Leadership Theories Important?
Theories of leadership describe how and why particular people develop to be leaders.
They lay emphasis on the actions and character characteristics that folks might adopt
for improving their leadership skills. Top qualities that leaders cite as essential to
effective leadership include: Strong moral principles and ethics
It is not necessary to overemphasize the importance of leadership. Any organization's
success may be a result of its leadership. Due to its leadership, even the state has
achieved independence, expansion, prosperity, and power. Effective leadership is

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 another thing about the success and expansion of a business or industrial organization.
What Are Leadership Styles?
Following are the five sorts of leadership according to the Personnel Research Board
at Ohio University.

1. The bureaucrat

2. The autocrat

3. The diplomat

4. The expert

5. The quarterback

 Applying Leadership Theories at Workplace

10 methods  to point out  leadership at the office

 Become a thought leader

 Join a corporation for professionals

 Consider the large picture

 Think proactively and with positivity

 Listen to others and pick up tips from them

 Connect with a goal in mind

 Look for a mentor and Accept diversity.

Q10) How does direction helps in achieving the goal ?

Ans. Setting goals are important because it helps you define how to advance in your personal
career and in your company. Setting and achieving workplace goals can also show management
that you're committed to the success of the organization. Some benefits of setting workplace
goals include:

Sense of direction
A well-planned goal helps you move forward in the direction you need or want to go. For
example, imagine that you want to be promoted to a sales manager position this year. Writing

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down that goal with specific details on what steps you plan to take to achieve it can help you to
begin working on your goal right away.

Increased motivation
A specific goal gives you a solid plan for accomplishing a task or project. You can look at your
goal to help you stay motivated. For example, if you need to write a training guide for new
employees, you can look at the timeline needed to reach that goal on a daily or weekly basis.
This reminder can help you meet your deadline, and the sense of accomplishment can lead to
increased motivation with future goals.

 Importance of Directing
1. Initiates Action:
Direction initiates action by top managers that motivates people to convert the resources into
productive outputs. It gives substance to managerial functions of planning, organising, staffing
and controlling. People learn to manage the resources in the most effective way that results in
their optimum utilisation.

2. Creates a Sound Work Environment:

If directions are issued in consultation with employees (participative), it creates an environment
of understanding where people work to their maximum potential, willingly and enthusiastically
to contribute towards organisational goals.

3. Develops Managers:
Managers who are personally motivated to work can also direct others to work. Managers
develop their skills and competence to direct others to follow. If managers and employees work
with each other in harmony, it promotes skills of the employees and develops managers to
assume responsibilities of higher levels in the organisation. Motivation, leadership and
communication help in bringing people together.
They exploit employees’ talent to the fullest and also provide scope for their skill enhancement.
This is beneficial for both the employees and organisation. Direction, thus, prepares future
managers.

4. Behavioural Satisfaction:
Since direction involves human behaviour and psychology, employees feel behaviourally
satisfied and personally inspired to achieve organisational goals.

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5. Increase in Productivity:
Personally satisfied employees contribute towards output and efficiency of the organisation.
Direction gets maximum out of subordinates by exploiting their potential and increasing their
capabilities to work.

6. Achieves Coordination:
Directing aims at continuous supervision of employees’ activities. It achieves coordination by
ensuring that people work towards planned activities in a coordinated manner. It integrates the
actions of employees that increases their understanding of mutual interdependence and their
collective effort to achieve the organisational goals.
It also helps to harmonise individual goals with organisational goals.

7. Facilitates Control:
Coordination brings actual performance in conformity with planned performance. The
controlling function is, thus, facilitated through effective direction.

8. Facilitates Change:
Direction helps in introducing change in the organisation structure and adapting the organisation
structure to external environment. Organisation operates in the society as an open system and has
to accept social changes for its survival and growth. People are not easily receptive to changes.
Direction helps in changing attitude of people towards change and accept it as a way of life.

9. Facilitates Growth:
An organisation that is open to change is responsive to growth. Direction harmonises physical,
financial and human resources, balances various parts of the organisation and creates
commitment amongst people to raise their standards of performance.
 Importance of Directing
In a globalised context, organisations are called upon to deliver stretch goals such as very high
quality products at lower cost, economies of scale concurrent with high degree of customisation,
or more output with greater outcomes using lesser and lesser resources. In this context, leading
has special importance.

 Let us look at some of them:

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a. Enhances Effectiveness- Leading ensures that the organisation does the right thing the right
way and thus increases the value for all stakeholders. In other words, leadership is important
because it creates efficiency and effectiveness, concurrently.
b. Creates Synergy- Leadership energises the system and enables coordinated direction of
multiple forces and resources including tacit resources such as organisational culture, trust, and
knowledge sharing protocol in the organisation. Thus, it creates synergy of the organisational
forces. An excellent example is how difficult competitors find it, to measure up to Virgin
Atlantic airways, Google, or Toyota.
c. Drives Change- Leading is important because it can identify the emerging situation, create
urgency and a coalition of people to address the need for change, and implement the change.
Thus, leading is the driver for change.
d. Draws out Entrepreneurship- In organisations, managers have an entrepreneurial role. This
implies proactive decision-making, taking the initiatives, accepting risks, and creating change.
These are important in the fast changing global scenario. Leading facilitates managers to take up
this role. This rule is often referred to as ‘intrapreneurship’ (the letter ‘i’ indicating that the
manager acts like an entrepreneur but internally/within the organisation).
e. Enables Co-creation- Today, products and services rely more on co-creation between the
customer and the organisation. While co-creating, the manager has to take several independent
and proactive decisions. If managers are bent on directing rather than leading, co-creation would
be quite impossible as the subordinate would have to look over his/her shoulders every time
he/she has to co-create with the customer.
f. Initiates and Sustains Action- While directing can initiate action, it cannot sustain the tempo,
and even if it can, it cannot achieve the momentum that leading can. This is because in the
leading context, as against directing context, goal setting is ‘participatory’ and accountability is
‘joint’.
g. Sustains Motivation- Leading can generate and sustain intrinsic motivation because the
follower is drawn to the leader not because of an extrinsic force such as rewards and
compensation, but by the force created by the ‘joint fate’ inherent in the leading process. Hence,
it creates self-motivation, and we know that self-motivation is more sustainable than other types
of motivation.
h. Creates High-performance Work Systems- High-performance work systems (HPWS) are
the emerging work systems in organisations. Leading creates the synergy, enables in setting and
executing stretch goals and provides support and inspiration to create and sustain HPWS.

 Importance of Directing – (With the Features of Directing)

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Directing is the process of instructing, guiding, motivating, and leading the people in an
organization to achieve its objectives. Directing is also called as activating by some authors,
though infrequently. However, the term directing (or direction) is more common.

 Directing has the following features:

1. Directing is an executing function of management. While other management functions
discussed so for — planning, organizing, and staffing — set the platform for actions, directing
executes the actions, that is, puts the actions into practice.

2. Directing function is performed at every level of management. It is performed in the

context of superior-subordinate relationship and every manager in the organization performs his
duties both as a superior and a subordinate, except at the top.

3. Directing is a continuous process and it continues throughout the life of the organization. A
manager needs to give orders to his subordinates and motivate, lead, and guide them on
continuous basis.

4. Directing initiates at the top level in the organization and follows to bottom through the
hierarchy. It emphasizes that a subordinate is to be directed by his own superior only.
Importance of directing can be gauged by the statement “directing is the heart of management.”
Just as heart supplies blood to every organ of the living body, directing puts all other
management functions in action.

In the context of an organization, importance of directing is as follows:

1. Initiation of Actions:
Organization is the sum-total of human and non-human resources. These resources should be
handled in a certain way to get the desired results. Through directing, a superior conveys and
motivates his subordinates in the organization to work in the desired way to achieve
organizational objectives. Without direction, other managerial functions like planning,
organizing, and staffing become ineffective.

2. Integration of Employees’ Efforts:

For achieving organizational objectives, individuals need not only be efficient, but effective also.
Their actions are interrelated in such a way that each individual’s performance affects the
performance of others in the organization. Thus, individuals’ efforts need to be integrated so that
organization achieves its objectives in the most efficient manner and this is possible through

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directing only.

3. Getting Maximum out of Individuals:

Every individual in the organization has some capabilities which may not be utilized fully in the
absence of proper motivation, leadership, communication — elements of directing. Directing
provides the way to utilize these capabilities properly.

4. Facilitating Change in the Organization:

An organization works according to requirements of its environment. Any change in the
environment requires change in organizational functioning so that it matches environmental
requirements. Since this is a continuous process, the organization makes changes from time to
time. To incorporate and implement these changes, management should motivate individuals
affected by these changes. Motivation is an essential element of directing.

5. Providing Stability and Balance in the Organization: Effective directing provides stability
in the organization and maintains balance in its different parts. Thus, the organization exists for a
long period and its parts work in a harmonious way.

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