ORGANIZATIONAL MANAGEMENT

RAK
SBS/ABS – BBA
ASSIGNMENT – 2021

STUDENT ID: 21040154

UNIT TITLE: ORGANIZATIONAL MANAGEMENT

NAME (IN FULL): AUGUSTINE JOHNY

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Table of Contents
Question 1 ........................................................................................................................... 3
Question 2 ........................................................................................................................... 5
Question 3 ........................................................................................................................... 7
Question 4 ......................................................................................................................... 10
Question 5 ......................................................................................................................... 14
Question 6 ......................................................................................................................... 15
Question 7 ......................................................................................................................... 17

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Question 1
1. What are the two main features of organizational management explain with examples?
(10 marks)

Ans.) Organization management is the art of bringing more people together on a single
platform to work toward a common set objective. Organizational management provides
the most efficient use of resources in the workplace via thorough planning and
supervision. Employees are given a feeling of direction by organization management.
Individuals are fully aware of their duties and responsibilities and understand what they
are expected to perform in the business. Profitability is ensured through competent
management. Company management, in layman's terms, refers to the effective
administration of both the organization and its people.

The two main features or characteristics of organizational management are:-

a. Goal Oriented Process:

Every organization is designed with a certain aim in mind, and management assists in
achieving those goals in a timely and efficient manner. Each organization's goals and
objectives are unique. The function of organizing is used to fulfil the organization's
ultimate aims. Employees' individual ambitions are aligned with the firm's general goals
through the organization. It is a critical part of organizational management that combines
individual efforts and directs them toward the achievement of corporate goals. These
objectives change with organizations.

The achievement of predefined goals or objectives is used to measure the success of

every management action. Management is an activity with a specific goal. It is a tool that
aids in the utilization of human and physical resources in order to achieve pre-determined
goals. For example, a company's purpose may be to maximize customer happiness by
creating high-quality items at competitive rates. This may be accomplished by employing
efficient individuals and making greater use of limited resources.

Goal orientation is a form of business strategy that influences how a firm pursues revenue
and plans for future projects. While all organizations are inherently goal-oriented in some
form, goal orientation is critical in determining focus and allocating funds. Managerial
skills and information technology initiatives both benefit from goal orientation.

For example, rather than modifying procedures to make the division run better, the
department makes changes to assist the company to be more successful or meet its
objectives. Alternatively, the division may make changes to fulfil specific performance
goals, such as decreasing delivery times or errors by a certain proportion.

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b. Division of Work and Specialization

The organization management is concerned with the entire business task. The
enterprise's whole work is separated into activities and functions. Various tasks are
delegated to different people in order to be completed efficiently. This introduces the
concept of division of labor. It is not that one individual cannot perform several duties, but
specialization in various activities is required to increase one's efficiency. The
organization aids in the division of labor into related activities that may be assigned to
various personnel.

The whole organizational philosophy is based on the notions of specialization and division
of labor. The division of labor is the process of delegating responsibility for each
organizational component to a single individual or group of individuals. When the
responsibility for a given task is assigned to a designated expert in that subject, it
becomes specialization. The activities of the operators are coordinated in order for the
process to work properly. To maintain synchronization, certain operators take managerial
responsibilities at certain times along the process.

For example, there will be a high level of labor specialization in the automobile
manufacturing process. Some employees will create automobiles, while others will test
them and promote them. Some employees will work on various parts of the assembly
line. Their task may be very particular, such as changing tires, and so on.

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Question 2
2. Give four reasons for the importance of organizational management with examples.
(10 marks)

Ans.) Organization management gives a sense of direction to the employees. The

individuals are well aware of their roles and responsibilities and know what they are
supposed to do in the organization.

Four reasons for the importance of organizational management.

 Planning
 Organizing
 Leading
 Controlling

Planning
Plan is being created by the head of the organization and to be discussed to its member.
This plan serves as organization goals and objectives. Planning role is to continuously
check on team progress in order to make small adjustments when necessary, while still
maintaining a clear picture of a company's larger aims and goals. There will be a
delegation of responsibilities and setting of timelines for completion.

Example: Let's say Anna the marketing manager has a goal of increasing sales during
the month of February. Anna needs to first spend time mapping out the necessary steps
her and her team of sales representatives must take so that they can increase sales
numbers. These steps might include things like increasing advertisements in a particular
region, placing some items on sale, increasing the amount of required customer-to-sales
rep contact, or contacting prior customers to see if they are interested in purchasing
additional products. The steps are then organized into a logical pattern so that Melissa
and her team can follow them.

Organizing
It helps to ensure a company or departmental unit runs smoothly. This is to establish
internal processes and structures to knowing which employees or teams are best suited
for specific tasks, keeping everyone and everything organized throughout daily operations
are important functions of management.

Example: This step requires Annato determine how she will distribute resources and
organize her employees according to the plan. She will need to identify different roles and
ensure that she assigns the right amount of employees to carry out her plan. She will also
need to delegate authority, assign work, and provide direction so that her team of sales

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representatives can work towards higher sales numbers without having barriers in their
way.

Leading
Leadership is very important in organization. Someone who lead the team confidently
especially during the time of challenges. Leader must provide reinforcement and boost
each team handling significant conflicts or struggles. Every team should be given
important role in the planning. Leaders should be supportive, encouraging, and has
motivational qualities.

Example: Anna spends time connecting with her employees on an interpersonal level.
This goes beyond simply managing tasks; rather, it involves communicating, motivating,
inspiring, and encouraging employees towards a higher level of productivity. Not all
managers are leaders. An employee will follow the directions of a manager because they
have to, but an employee will voluntarily follow the directions of a leader because they
believe in who he or she is as a person, what he or she stands for, and for the manner in
which they are inspired by the leader.

Controlling
To ensure all of the above functions are working toward the success of a company,
managers should consistently monitor employee performance, quality of work, and the
efficiency and reliability of completed projects.

Example: Anna must know how to control the situation. In case there's a misleading
performance, she needs to impose correction in order to make sure that enterprise
objectives and the plans devised to attain them are accomplished. This requires on a daily
report for progress.

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Question 3
3. What is the first objectives of organizational management and how does it achieve
this? (12 marks)

Ans.)
Management Objectives:
It refers to the organization's overall objectives. When determining these goals,
management takes into account the interests of all parties involved (like owner, employee,
customer, government, etc.). This also satisfies the economic objectives of the
organization, which are survival, profit, and growth.

Organizational Objectives:
Management is in charge of setting and achieving the organization's goals. The primary
goal of any company should be to maximize the use of human and material resources in
order to achieve the business's economic objectives.
Any business's primary goal is to stay in business. To stay afloat, a company must
generate enough revenue to cover its expenses.
Profit: Management is responsible for ensuring that the company is profitable. Profit is a
critical motivator for the business to continue to operate successfully.

Growth: In order to stay in the industry, management must fully utilize the organization's
growth potential. There are numerous markers of expansion, such as increased sales
volume, increased personnel count, increased product number, or increased capital
investment.

Social Purposes
During management actions, it refers to the consideration of the society's interests. In a
society, an organization is formed. It is fueled by the resources made available by society.

As a result, it becomes everyone's job to account for social benefits.

As a result, social aims are defined as an organization's fulfillment of its social obligation.
The manager promises to provide health, safety, and price control under this goal.

Every organization, whether for profit or not, has a social commitment to fulfill as a
member of society, which is to constantly provide economic value for society's many
components. This includes the following:

Production methods that are beneficial to the environment

Providing job chances to those who are disadvantaged in society
Employees are provided with essential services such as schools and crèches.

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Business is a vital component of society. Investors, stockholders, workers, workmen
suppliers, consumers, and the government are all involved in some way. A company must
fulfill its responsibilities to diverse members of society.

"The first goal of business should be service, and the secondary goal should be profit,"
Henry Ford said. The goal of business is to not only make a profit, but also to fulfill societal
obligations."

As a result, a company must examine not just its economic goals, but also its social
responsibilities in light of varied societal expectations. While business motives cannot be
compromised, the interests and wellbeing of various groups in society cannot be
overlooked. Only through maximizing the welfare of many associate groups, such as
consumers, suppliers, employees, shareholders, and so on, can a firm make money. As
a result, in order to maximize profits, social objectives must be pursued

Profit:
Profit plays a critical role in overcoming company risks and ensuring the smooth operation
of corporate operations. As a result, management must ensure that the company earns
a sufficient profit.

Most significantly, both for-profit and non-profit organizations must have defined goals
and objectives. The organization will not be on the correct track to success if different
members and employees are not working toward the same goal. A for-profit corporation's
ultimate purpose is usually to maximize earnings and financial benefits for its owners
and/or shareholders. A non-ultimate profit's purpose should be to ensure that there are
sufficient earnings to continue making a difference. They must also consider the "better
good" of the neighborhood, country, or planet.

Growth:
Every company wishes to expand. The company's growth must be ensured by
management. Sales, the number of employees, goods, capital expenditure, and other
factors can all be used to gauge growth. If all of these indicate an upward tendency, it can
be assumed that business is on the rise.

Some businesses may seek to expand in order to respond to changes in the competitive
landscape. Growth can be a strategic goal that helps a business position and promote
itself more effectively against its competitors. The following are some of the competitive
factors for growth:

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  Increasing your market share (except in a declining industry).
 Providing a superior product or service to a competition.
 Maintaining and/or expanding a strong market position for a specific product or in
a highly competitive market.
 Increasing product volume in order to become more price competitive.

Internal players and the state of the company have a significant impact on the CEO's
goals. The CEO may concentrate on expansion in order to:

 Satisfy important stakeholders' growth expectations, including as stockholders,

directors, executives, and employees.
 In a volatile economic market, keep earnings stable.
 Increase capacity in areas like management, sales, distribution, and/or
manufacturing.
 Supplements that aren't growing or are in the midst of a profit cycle downturn.
 By widening the target market, you can have more flexibility.
 Attract better staff and gain the ability to pay for them.

Personalized Goals
An organization is made up of several categories of people who come together to meet
their various requirements. Individuals may try to meet requirements such as:

Salary and benefits that are competitive

Personal growth and progress are recognized by peers.
For organizational harmony, management must harmonize personal desires with
organizational objectives.

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Question 4
4. Choose any two of these five organizational models Line, Functional, Line and Staff,
Project Based, Matrix. and compare and contrast them outlining their strengths and
weaknesses. (20 marks)

Ans.)

Organizational models:
 Line
 Functional
 Line and Staff
 Project Based
 Matrix

From the five organizational models, I choose: Line and Functional

An organization can be structured in a variety of ways that facilitate its operation and
performance. The critical distinction between line and functional organizations is that line
organizations operate under a structure in which direct authority flows from top
management and responsibility flows in the opposite direction, whereas functional
organizations operate under a structure in which the company is divided into smaller
groups based on specialized functional areas such as finance, production, and marketing.

Line
Line organization is a popular organizational form where top management has direct
power and responsibility lines flow in the opposite manner. This is a top-down
management style where high management makes choices and communicates them to
lower level workers. Line managers lead teams that work towards a common goal.
System of administrative organization using lines.

Because of the scalar chain of command, this organizational structure is easy to

understand and maintain (formal line of authority which moves from highest to lowest rank
in a straight line). In this sort of organization, everyone knows their role and has clear
authority and duty.

Strengths
1. Simple to operate
2. Cost-effective and efficient. Additionally, it enables rapid decision-making and
efficient cooperation.
3. Conforms to the scalar organization principle. Additionally, it improves command
unity.

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 4. In a line organization, accountability for task completion is delegated to specific
personnel. As a result, delegated responsibilities are accountable.
5. A line organization maintains good discipline as a result of centralized control and
undivided allegiance.
6. The organization's overall operating costs are cheap due to the absence of staff
personnel.
7. It is a stable organizational structure.

Weaknesses
1. A line organization may lack specialty. Because each department boss is
exclusively concerned with his own department's activity. Employees are thus
skilled in duties specific to their departments.
2. These organizations can break a key man or a few key men. Also, without a staff,
a powerful individual can take over and operate it anyway he wants. Such arbitrary
power can cause serious harm to an organization.
3. Expertise is generally lacking in such groups. There is no specialist staff available
to help the line manager make decisions.
4. Inflexible line organizations are common. In fact, such organizations are so
disciplined that change is rare.
5. These organizations are run by autocrats.
6. The manager's whims dictate the work division.
7. It may halt progress and hinder the unit's performance.
8. These groups may also promote friendship-based nepotism.

Project Based
A functional organizational structure is the most prevalent of the three organizational
structures used by most businesses, and it is the one that most people are familiar with.
Companies are organized into function groups based on the actions of the employees in
the function groups inside the organization. Employees in human resources, for example,
have their own human resources department, as do employees in sales, marketing,
finance, and technical help, among other fields. Organization of a corporation in this
manner has both advantages and disadvantages in and of itself.

Every business requires an organizational structure; it essentially determines the

company's hierarchy. To put it simply, it establishes who works for whom and who reports
to whom.

Without this structure, anarchy and inefficiency would reign. The functional organizational
structure is now one of the most prevalent kinds of formal organization. The entire
organization is divided into smaller groups or departments based on specialized functions
in a functional organizational structure. Thus, in such an arrangement, there will be a

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finance department, an information technology department, and a marketing department,
among others. This enables people to work more cohesively and efficiently.

Because the job is segmented into smaller sections, the management is as well.
Additionally, management is segmented by the sort of work performed. As a result, each
department has its own leader or executive. Additionally, the reporting structure varies by
department.

Strengths
1. The executive or team leader has expertise in that field. For example, the head of
the IT department will have the education and skills to lead his staff successfully.
2. Work is more efficient and precise when done by a specialist. Less mistakes This
also helps with employee motivation.
3. The team's shared background allows them to share ideas and find solutions. The
knowledge is shared, which is always beneficial.
4. Employees understand the firm's hierarchy. They need not report to many
managers.
5. Employees also feel safe in their jobs. They understand that their efforts are not in
vain. Security boosts their performance.

Weaknesses
1. Oftentimes, the work is fairly one-dimensional. After a while, employees may
experience boredom or monotony. They may become unenthusiastic about the job
at hand due to a lack of new challenges.
2. The manager is responsible for the appraisal system in this structure. If the
appropriate strategy is not used, disagreements amongst employees regarding
promotions or appraisals may emerge.
3. Additionally, this organizational structure necessitates a high degree of
specialization, which is difficult to build.
4. If a necessary personnel change occurs, it has the potential to destabilize the
entire system and its balance. Moreover, it has a somewhat stiff framework, with
little room for adaptability.
5. Employees in a Functional Organizational Structure never acquire information or
skills outside of their own department. This can exacerbate inter-departmental
communication challenges.

Line organization is a frequently used organizational structure in which direct lines of

authority originate with top management and responsibility flows in the opposite direction.
This is a top-down management style in which senior management makes choices and
communicates them to lower level workers in the hierarchy. Line managers are appointed

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to oversee teams that work toward a common goal. The oldest and simplest kind of
administrative organization is line organization.

Due to the application of the scalar chain of command, this organizational structure is
extremely simple to comprehend and maintain (formal line of authority which moves from
highest to lowest rank in a straight line). Each person in this sort of organization is fully
aware of his or her job, and clear lines of authority and accountability are established for
each employee.

One of the primary disadvantages of a line organization is that it frequently leads in one-
way communication. Top management makes decisions, and lower level personnel may
not voice their grievances or suggestions to the top authority. Because lower-level staff
is more in touch with customers, their experience and opinions should be considered
during decision-making.

A functional organization is a common organizational structure in which the organization

is divided into smaller functional sections such as finance, marketing, and production.
Additionally, these functional areas are referred to as 'silos.' Each function is overseen by
a department head who has the dual role of reporting to senior management and directing
the appropriate department toward success.

In a functioning organization, all departments should work in unison and toward a shared
objective.

In practice, this does not occur to the extent planned, and disputes within departments
may arise as each department strives to outperform the others in terms of outcomes.
The distinction between line and functional organizations is mostly determined by their
organizational structure.

Line organizations are those that operate with distinct lines of authority emanating from
top management and lines of accountability flowing in the opposite direction.

If responsibilities are delegated to specific functions, such organizations are functional.

The organizational structure should be carefully established, taking into account the
nature of the business and the preferences of senior management. Properly managed
organizational structures can result in increased employee motivation and cost savings.

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Difference between Line Organization and Functional Organization
Line Organization Functional Organization
Line organizations are structured in such a
The functional organization of a business
way that direct authority flows from top is when it is divided into smaller units
management and responsibility flows in based on functional fields such as finance,
the other direction. production, and marketing.
Line organizations have a modest level of Functional organizations have a high
specialization. degree of expertise.
It makes no reference to a particular In functional organizations, decision-
evolutionary relationship. making authority is assigned to a larger
extent to departmental managers.
The line organizational structure is best For large firms, a functional organizational
suited to small and medium-sized structure might provide additional benefits.
businesses.

Question 5
5. What are Porters Three Generic Strategies and elaborate with examples. (8 Marks)

Ans.) Porter's Generic Strategies is used to visualize the approach of a company or

organization towards their competitors.

1. Cost Leadership Strategy - The first of Porter's Generic strategies focus on the pricing
side of the business. The targets of the strategy are price-conscious customers. It's an
approach where the company provides a quality product that is on par with the
competition for a lower price.

Example: Superstore XYZ is able to provide customers with lower prices because they
have efficient methods of distribution, large volume discounts from suppliers and they are
in control of portions of their manufacturing and inventory.

2. Differentiation Strategy - Aims to show the difference between your products and its
competitors. While there are price-conscious customers, there are also those who don't
care about the price as long as they get high-quality products. This generic strategy is
much more effective if you have something that the other products don't have.

Example: ABC Beauty Company has differentiated themselves from their competitors by
offering handmade, no animal testing, bath, and beauty products that are pure and benefit
the core values of their customers.

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3. Focus Strategies - The scope of this strategy includes specific consumers. This means
that it is not highly recommended for huge companies, but they can employ it on top of
either differentiation or low-cost strategies. Using the Focus strategy, companies can
focus more on providing specific products that cater to the specific needs of a consumer
group. That is why it is highly applicable for smaller businesses with less competition
since it aims to provide unique and exclusive products and services.

Example: Summer Jewelry Company offers inexpensive, nickel-free jewelry, gifts, and
other accessories to young women ages 18-34.

Porter's Generic Strategy was introduced by Michael Porter in 1980. It's comprised of
three basic strategies, namely the "Cost Leadership Strategy," "Differentiation Strategy"
and "Focus Strategy." Porter indicated that every company or organization should only
pursue one of these strategies or risk wasting company resources in a futile attempt to
grow the business fast.

Porter's Generic Strategies is one of the most frequently used among these techniques.
For example, if the competitor provides lower costs for their products/services, then you
can use the "Lower Cost" strategy to counter them.

Question 6
6. What are the 7 Organizational Leadership Styles and explain in detail in relation with
your organization. (10 marks)

Ans.)
- Assigned leader are individuals who are given a formal leadership role in their
organization and thus become leaders.

- Emergent leader is someone who becomes a leader as a result of how other members
of their group react to them. Emergent leadership occurs when a group member steps up
as the leader over time within group interactions rather than being appointed or elected
as the leader.

- Democratic leadership, also known as participative leadership, entails allowing multiple

people to participate in decision-making. This type of leadership can be found in a variety
of settings, including businesses, schools, and governments.

- A laissez faire leader trusts their employees to use their skills and experience to
determine their own structures and processes. As a result, listening to and learning from
them is an important aspect of being a great laissez faire leader.

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- Leaders who use a democratic approach to team engagement are referred to as
practicing participatory leadership. Participative leaders allow employees to express their
creativity by coming up with solutions to problems. This is in stark contrast to authoritative
leadership, in which the leader makes all decisions.

- Social leaders contribute to the success of an organization by connecting the power of

the community to the day-to-day challenges of work. Social leadership is based on
humility, fairness, and kindness, but it is not a soft form of power: it is earned power, and
as such, it carries significant weight. It is based on trust.

- A task leader is in charge of seeing that a specific project is completed. The project
leader will be in charge of supervising a group of people working on the project, checking
in with them to see how things are going, and reporting the project status to higher-level
managers.

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Question 7
7. Choose any five of seven Organizational Leadership Styles and compare and contrast
them outlining their strengths and weaknesses. (20 marks)

Ans.)

Autocratic Leadership
Whenever it comes to all decision-making, processes, and policies inside an organization,
autocratic leadership is defined by a top-down approach. An autocratic leader tends to
make executive choices that others are expected to follow rather than soliciting opinion
from team members.

Strength
 Can be effective, especially when it comes to making decisions.
 Because one person is in control, the team remains cohesive and consistent.
 Because they'll be assigned particular responsibilities and won't be encouraged to
stray outside of those responsibilities, everyone's individual tasks will become
obvious.

Weaknesses
 It has the potential to inhibit creativity, cooperation, and innovation.
 Doesn't result in a wide range of viewpoints.
 Individuals and teams that feel like they don't have a voice may become
disengaged.
 There is no room for mentorship or professional development.

Laissez-Faire Leadership
Laissez-faire leadership is characterized by a hands-off attitude to leadership that allows
people to make their judgments. While leaders continue to give their employees the
resources and tools they need to thrive, they are generally absent from day-to-day
operations. Because it encourages autonomous thinking, this is a leadership style you'll
often encounter in creative environments like advertising firms or startups.

Strengths
 Individuals are allowed the opportunity to put their leadership qualities to the test.
 Enhanced creativity and innovation are possible outcomes.
 Less fear of failure
 Encourages team members and the leader to have faith in each other.
 Instill a spirit of self-sufficiency.

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Weaknesses
 This can lead to a loss of productivity.
 It's not uncommon for team members to have disagreements.
 It's possible that duties and responsibilities may be misunderstood as a result of
this.
 With a team that isn't skilled or motivated, it won't be effective.

Transactional Leadership
Control, organization and relatively brief planning are characteristics of transactional
leadership. This type of leadership uses a system of incentives and punishments to
inspire its followers. As you can see, transactional leadership and authoritarian leadership
have a lot in common. The primary distinction is that transactional leadership entails a
clear interchange between the leader and the team members, as the name indicates. A
promotion, for example, might be given to an employee in exchange for their compliance
and great performance.

Strength
 Because of a reward and punishment structure, team members' anticipated
conduct is well defined.
 Offers stability and rigidity.

Weaknesses
 Creativity, growth, and initiative are all hampered.
 It might not have an effect on persons who aren't motivated by external factors.
 For individuals searching for career and personal growth chances, this might be
disappointing.

Transformational leaders
Transformational leaders build a vision based on recognized needs and inspire and
motivate their employees to achieve that united objective. The primary distinction
between transformational leadership and the other types we've discussed so far is that it
focuses on altering ineffective systems and processes, as opposed to transactional or
bureaucratic leadership, which do not seek to alter the status quo.

Strengths
 Encouraging the team
 Suitable for forming strong bonds and fostering teamwork.
 Allows team members to conduct their responsibilities independently.
 Can lead to increased innovation, development, and empathy on teams

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Weaknesses
 For certain organizations, it may not be the greatest fit (i.e. bureaucratic)
 Can create feelings of insecurity by upsetting the status quo.
 There is a lot of pressure on the leader, who has to succeed.

Democratic Governing
Democratic leadership, also known as participatory leadership, entails including a large
number of individuals in the decision-making process. Compared and contracted from
these other leadership form of leadership may be seen in a variety of settings, including
corporations, schools, and governments.

Strengths
 Collaboration is encouraged.
 Tolerant to a wide range of viewpoints and methods of thinking
 As a result, there is a better level of group participation and productivity.
 This may lead to more innovative solutions.
 The majority of people agree with the outcome.

Weaknesses
 The majority opinion is suppressed.
 Multiple persons involved might lead to additional communication breakdowns and
misunderstanding.
 Making a choice can take a long time.
 A group of people who are unskilled or untrained can lead to more decisions being
made.

Contrast and comparison of the leadership styles

Leaders who are democratic or participative are intimately invested with their employees.
They meet to understand the needs of the project, assignment, or task, then delegate
decision-making to the employees. These CEOs think that including staff in almost all
decisions would improve productivity and teamwork. Let's say a major conglomerate buys
a tiny business, and the acquisition manager wants her employees to brainstorm and
discuss the most efficient way to merge the two businesses while Leaders that are
authoritarian or autocratic have attributes that are comparable to transactional leaders.
They demand excellent performance and impose unpleasant repercussions if it isn't
delivered. Authoritarian leaders are the polar opposite of democratic leaders in that they
make all of the choices. They feel they are subject matter experts; they wield influence
over personnel; and they believe people are loyal to them. Furthermore Transactional
leaders are concerned with promoting an organization's goals and identifying whether or

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not those goals are being realized through careful monitoring and analysis of team
members' or workers' performance. Those who fail to fulfill performance requirements
often face unfavorable consequences from these leaders. Assume Alan, a supervisor,
examined his team's performance and discovered that one member fell short of the
standard. He informs the employee of the problem and places her on a growth path. while
Charismatic leaders have a favorable influence on staff performance by encouraging and
motivating them. They demand great performance and model the habits that will help
them accomplish and optimize their goals. Juan, a division manager, for example, sets
an aggressive sales goal for his staff and motivates them by promising a free cruise to
the best salesman. Laissez-faire Leaders don't get in the way of their employees' job.
They give direction and feedback in order to improve or refocus performance. These
leaders must manage self-sufficient, highly experienced personnel in order to be
successful. Authoritarian leaders are the polar opposite of laissez-faire leaders. A
manager of a technology company, for example, visits her staff once a week to give
guidance and direction.

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