CHAPTER 3

Organizational Leadership

Organizational leadership refers to the overarching field of a person (the leader) strategically guiding and
managing a group of people (the organization) to meet a common goal. It is a management approach in
which leaders help set strategic goals for the organization while motivating individuals within the group
to successfully carry out assignments in service to those goals." It emphasizes on developing leadership
skills and abilities that are relevant across the organizations. It means the potential of the individuals to
face the hard times in the industry and still grow during those times. 7

Four Factors of Leadership

The success of the leader is dependent on how the leader is effectively able to communicate and motivate
followers to perform desired tasks using the appropriate leadership style best suited for the given
situation. There are four major factors in leadership called Leader, Follower, Communication, and
Situation; interdependencies and dynamics of these four factors of leadership must be considered by a
leader to be effective.79

1. The Leader

As discussed in the previous chapter, leadership is a process where an individual influences a group of
individuals to achieve a common goal. It is a transactional event that takes place between leaders and
subordinates. It affects both the leader and the subordinates in the process of interaction. It is not a one-
way event, but it is an interactive event. Leaders are expected to influence people to form a group by
bringing members together, induce a purpose and inspire followers to aspire for it, put life in the purpose;
make it operational by defining the steps on how to achieve the common goal, and provide direction
during the course of achievement.

2. Followers

Different people require different styles of leadership. For example, a new hire requires more supervision
than an experienced employee does. A person who lacks motivation requires a different approach than
one with a high degree of motivation. It is the followers, who determine if the leader is successful by
providing their support and accomplishing the needed tasks. Leadership is not about doing things
themselves but motivating the followers to work towards business objectives (US. Army, 1983).

If followers do not trust or lack confidence in their leader, then they will be uninspired. To be successful
the leader must know his people, must convince his followers that he is worthy of being followed. The
general working conditions which are conducive to effective leadership from the angle of subordinates
are grouped as leadership conditions that (TechnoFunc, 2020):
3. Provide for the Security of Subordinates

Include an atmosphere of approval (the freedom to make a mistake and allowing for an honest mistake),
knowledge of subordinates (that is letting subordinates know in clear terms about procedures, rules,
regulations, duties, responsibilities overall policy of the organization, performance evaluation procedure,
personal peculiarities of his/her superior) and finally the consistency of discipline indicating clearly both
desirable and undesirable behavior.

Provide Independence for Subordinates.

This includes opportunity for participation, responsibility and the right to appeal.

1. Communication

The leader leads through two-way communication, He has to set an example and communicate to them
that he would not ask them to perform anything that he would not be willing to do. Leaders establish
vision and mission and set the direction for the organization, communicate the vision to the people in the
organization and synchronize them with the organizational vision and mission, thereby inspiring the
people to translate the goals, vision, and mission into reality (TechnoFunc, 2020).

Leaders demonstrating communication skills are both good speakers and listeners. The leader listens
closely to people at work and organizes and clearly presents information both orally and in writing.
Through their words, they can help keep the workforce motivated and committed. They also listen to their
followers and ask questions when they want to make sure they have a good understanding of what is
being expressed. Any message leader communicates either positively builds or negatively harms the
relationship between the leader and his employees. Good leaders communicate with all personnel with a
sense of mutual understanding and mutual loyalty to generate enthusiasm for projects and inspire
working towards their completion (US. Army, 1983).

4. Situation

All situations are different. A methodology or approach that is successful in one situation will not always
work in another. The leader must use his judgment to decide the best course of action and the leadership
style needed for each situation. A good leader is sensitive to the influences in various situations and they
are in a position to determine the right style of leadership to be followed in handling various situations.
We all know that each situation elicits a different behavior in people, thus for each opportunity that is
presented the leader must use his/her judgment to decide the best course of action and the leadership
style needed for each situation (TechnoFunc, 2020).

The situational forces which affect the style of leadership include the style of the leader's supervisors,
complexity and demands of the job, and pressure of time, for instance; emergency or crises vs. normal.
Lastly, the forces in the organization system which determine the style and effectiveness of the leadership
include division of work, organization structure, and the production technology being adopted by the
organization. The structure of the organization may determine the kind of leadership to be adopted. For
instance, some organizations may put a heavy emphasis on the leader's abilities to work effectively with
people. At other times, the social, economic, and political pressures that an organization faces prompt
certain styles of leadership to be followed (TechnoFunc, 2020).

The Leader and its Role

Leader is a person who leads or a person who has commanding authority or influence. A leader is someone
who does more than just lead people. They have to be driven by the right motivation and make a positive
impact on the people around them. A leader is someone who can see how things can be improved and
who rallies people to move toward that better vision. Leaders can work toward making their vision a
reality while putting people first. Just being able to motivate people isn't enough, leaders need to be
empathetic and connect with people to be successful. Here are some of the roles of a leader on an
organization:83

1. Leaders Provide Direction

Leaders need to make sure that all followers understand, embrace, and work toward achieving those
objectives. They also provide momentum, sharing and celebrating progress toward achieving company
goals, setting new targets, and providing needed resources. Leaders need to provide followers a well-
defined strategy for the company's future growth, communicating that strategy to all team members, and
helping everyone to fully understand their unique role in helping the company achieve its strategic
objectives. They also need to identify, develop, and nurture future leaders ensure continuity and stability
of leadership. (Hodges, 2018),

2. Leaders Create Structure

Leaders need to create and maintain the organizational structure, job roles, decision-making authority,
and processes that enable team members to do high-quality work. Instead of creating a "command and
control" environment, great leaders learn from followers what's needed to enable those followers to do
superior work, and leaders then focus on supporting the teams that produce the company's products and
do the company's work (Hodges, 2018).

3. Leaders Build Trust

Leaders have an obligation to ensure that everyone in the company has the skills necessary to perform
their work, understands how their work serves the company's objectives, and knows how the outcomes
of their work are measured. Once those things are in place, leaders trust team members to be accountable
for their own performance. Because leaders can't know or observe everything that everyone in the
organization does, trust is essential, and it is liberating for team members who are trusted to do great
work. Building a culture of trust begins with creating a working environment where all members of the
organization treat one another with respect, dignity, and encouragement. The foundation of trust is the
leader's belief that their followers are committed to the same goals, are competent to do their work, and
are committed to doing their very best. The leader's role is to establish the environment in which people
can thrive, be respected, and be trusted to do great work (Hodges, 2018).

4. Leaders Inspire Hope

Leaders are optimistic and hopeful. They can visualize the company's future and infuse their followers
with hope by providing encouragement, by sharing successes and progress toward achieving company
goals, and by helping followers create their own future with the company. They provide clear direction
based on a set of values and principles, create and share a comprehensive strategy for the company's
future, and build the organizational structure and processes to ensure successful execution (Hodges,
2018).

Importance of Organizational Leadership

Organizational leadership is the ability to lead groups of individuals toward fulfilling an organization's
mission. It is important because it:

Motivates Followers

Followers tend to be motivated to mirror the growth mindset for their teams and themselves, knowing
that they can personally contribute to the forward momentum of the organization as a whole.

Allows for a Problem-solving and Decision-making Mindset

Exponential growth is possible when a leader entrusts the individuals hired into their roles to develop
solutions and make decisions. Great ideas can emerge in an environment where people are not afraid to
speak up.

Promotes Communication, Ethics, Inclusion, and Respect

The leader shares the organization's values and models the communication, ethics, inclusion, and respect
expected of each individual. Since every role is vital to the organization's forward movement as a whole,
therefore it is imperative for a leader to communicate in all ways, that every employee's contributions are
respected.

Allows Organizational Leaders to Remain Goal-oriented

The leader may focus on the bigger picture since his followers were empowered to fulfill their roles and
develop innovative solutions.

Important Keys to Effective Leadership

Having a successful leader is a crucial aspect of every organization, truly effective leaders are hard to find.
Here are some of the key elements of highly effective leaders:

1. Ability to Delegate Tasks

The key to leadership success is to learn to effectively delegate both the responsibility for completing
assignments and the authority required to get things done. By delegating tasks to others, the workload is
shared and team spirit thrives. It is important to note that the right task must be assigned to the right
person, so that it can be completed correctly, effectively, and in a timely manner (Bell, 2016).

2. Excellent Communication

An effective leadership is one who communicates well across a variety of different media such as email,
telephone, and face-to-face. Staff need to be able to grasp the purpose, the directions, and the end goal
of any project in order for it to be completed successfully. Without excellent communication skills,
managers will have an extremely difficult time establishing and maintaining a productive work
environment (Bell, 2016).

Becoming a good listener is essential to becoming a good communicator. Listening is an active exercise. It
involves using not only your ears, but your eyes and heart as well. Be empathetic and consider the
message from the perspective of the person who is delivering it (MSU, 2020).

3. Confidence

Leaders are expected to be the company's backbone by being strong and confident. Managers are
expected to support and carry an organization through both the good times and the bad, while still
displaying an assertive and positive demeanor (Bell, 2016). No one will follow a leader that isn't self-
assured, and people can see through a facade of confidence. Confident leaders are generally happier,
create better relationships, remain open to risks, accept feedback, think for themselves, recognize
success, and are more motivated (Florida Tech, n.d.).

4. Honesty

When a leader makes a statement or takes a particular decision, all team members must be able to believe
that the leader will follow through and keep his or her word. If the followers feel that their leader is
dishonest without due explanation, an environment of distrust is fostered; this can lead to high employee
attrition, and further problems and expense for the organization (Bell, 2016).

5. Creativity

Unexpected events occur that require adjustments to be made to previous decisions that were made, or
current plans of action. At these times, leaders must be able to step up to the plate quickly, and think
creatively to come up with stable solutions, as staff turn to them for support and guidance (Bell, 2016).

6. Innovation

Innovation typically means always seeking ways to improve the organization. An innovative leader
emphasizes quality over quantity in their own work and takes initiative in looking for ways to improve in
all areas of their organization, from human resource management to supply chain efficiency to customer
service. They proactively create a culture of innovation by being open to others' ideas. They recognize
that an innovative idea can come from anyone within the organization (MSU, 2020).

7. Vision

One of the tasks of organization's leaders is to set and clearly communicate that vision and to invite others
to share and implementi Visionary leaders provide the spark that inspires others to work toward the same
goals. They also provide the tools to help them get there. They paint a picture of how their vision will
affect the organization as a whole, as well as each individual. It is also imperative for effective leaders to
trust their teams with the vision, as trusting can be a sign of strength (MSU, 2020).

8. Inner Values

Top organizational leaders emphasize strong family values. They recognize the values they were given by
their families, and that work-life balance is essential to success. The ability to focus on the organization
when at work, and, in turn, spend quality time with family when at home, is essential to effective
leadership. Knowing your strengths, as well as your weaknesses, is an essential aspect of honoring your
inner values. Once you've identified your strengths, it's possible to nurture and use them to your fullest
potential. This is essential to developing your leadership style and building a strong organization (MSU,
2020).

9. Inspiration

Effective leadership inspires their followers in many ways. They make an effort to know them and ask
them for their input and ideas. Inspiring leaders expound the notion that there are no failures, only
opportunities for learning and growth. When followers are inspired by their leaders, they are more
confident, they know what's expected, and they feel empowered to make decisions and work toward their
goals (MSU, 2020).

10. Transparency

Effective leadership uses transparency to help those around them embrace change, which can be
accomplished with a combination of communication, informed debate, shared decision-making, reaching
a consensus, and using social media. People should know why and how a leader has come to a decision
and in what ways it will affect them (Florida Tech, n.d.).

11. Decisiveness

Effective leadership weighs a decision carefully, but once they make up their mind, they yare not easily
put off course. This shows commitment, which breeds consistency, both leadership (Florida Tech, n.d.).
of which are traits that pay off well in

Leadership Principles

Leadership principles are a framework of actions you can take as a leader to inspire others to work
together toward a common goal; they are the foundation for success. These are set of actions or guiding
beliefs that leaders can implement to move them toward success. The following leadership principles are
commonly seen as vital to success:*

Lead by Example

A good leader models excellent behavior and must be able to motivate and encourage people. The most
successful companies and organizations have leaders who help their staff understand the value in their
vision and show them how everyone can work together to achieve that goal in their role (IET, 2021).

Leadership is About People

Interpersonal and communication skills are essential to any leader. Without being able to communicate
one's vision to others, leadership will be challenging. A leader should have the best possible relationship
with each member of the team. This means not only relating to those people in top-level management
but also the people who work in the lowest-level positions and everyone in between (IET, 2021).

Focus on Change
The foundation of every leadership plan is transformation. Change for the better should be the focus, not
just making changes for financial gain. Focus on the overall vision and have the ambition to bring about
change (IET, 2021).

Be Human and Admit Mistakes

Everyone makes mistakes, but it can be beneficial for other people to see a leader acknowledge their
mistakes as it can help them be more relatable. A wise leader learns from each experience and uses it to
teach their employees and themselves what areas they need to focus on to grow as an organization (IET,
2021).

Understand the Value of Listening

There are two levels of human understanding: intellectual and emotional. When a person understands
what someone is saying, this is the intellectual level. The emotional level of understanding means that a
person knows how they are feeling. A good leader should understand both. People feel valued and
respected when a leader takes the time to listen and process what they are saying (IET, 2021).

Develop Leadership Skills

A leader is defined by their behavior and actions, and a good leader has specific skills and characteristics
that help them lead effectively. It is important to constantly work on leadership skills and always strive to
improve them because they determine how successful one's leadership style will be (IET, 2021).

Promote Diversity

A leader should embrace diversity and harness the strengths that it can confer on a company. A diverse
workforce encourages innovation and new ideas, which in turn increases the likelihood of success (IET,
2021).

Work Together to Achieve More

Cooperation and collaboration can happen between organizations without affecting healthy competition.
A leader should embrace the benefits working collaboratively can bring. Collaboration is the act of working
with others to share information, strategies and successes, and every great leader understands its
importance (IET, 2021).

Have Solid Values

People typically want to work with a leader who understands their values and needs and has authentic
values they follow themselves. An effective leader must have a clear vision and solid values so they can
inspire their followers and motivate them (IET, 2021).

Use Technology and Innovation

A leader should take advantage of the benefits that technology can bring to the organization. Technology
can help in the operation of a business, increase productivity, help movement into new markets and
facilitate in achieving the company vision. Communication across the world is easier using new
technologies, which helps with collaboration. Teams can now work together even if they are based in
different countries (IET, 2021).

Help to Develop Future Leaders

Part of being a great leader is to make sure there is someone else who can take over the leadership role
among the followers when necessary. Thinking about the future in this way is a strong leadership trait.
The organization will benefit from having a plan in place that leaves no time gap when people have no
leader to look to. When employees are educated on how to become leaders, they are motivated to take
ownership of their work (IET, 2021).

The Six Types of Power for Leaders

An effective leader understands how to wield power and what it means when he/she does so. The use of
power is one of many tools at a leader's disposal. Power in itself is neither good nor bad as it is the wielder
that determines if power is used to serve or to undermine a company's goals. It is a necessary tool for
enacting change within your sphere of influence. If used effectively, the use of power will gain respect and
achieve results. If used improperly, the misuse of power can hamstring an organization and lead to
stagnation.

According to John French and Bertram Raven (1959) in their work entitled The Bases of Social Power, they
introduced five distinct types of power. They later added a sixth. All six of these types of power are part
of the fundamental knowledge that all leaders must possess to be effective. These are(Prescott, 2015):

1. Coercive Power

Coercive Power is forcing someone to do something against their will or setting up "consequences" to
employee actions. It relies on threats, bullying, and "or-else" language to "motivate" those that are
beneath them. This type of behavior often leads to fear, dissatisfaction, and resentment (French and
Raven, 1959). Coercive Power is often the least effective but most employed and abused type of power
in the corporate world (Prescott, 2015).
2. Reward Power

Reward Power is the concept of "do this and get that" or "if you do this, you will receive something in
return". Reward Power is useful as long as the reward is perceived as having value. Giving away a gold-
star or a gift card may be nice if it is something that is rare, but if overused the effect may be weakened.
It is another widely used method in business today. Its results are mixed and it is therefore the second
weakest form of power. (Prescott, 2015).

3. Legitimate Power

Legitimate Power is the power of position or role. This is the typical "command and control" structure that
is employed by the Military world. It acts as a formalized way of ensuring that there is someone to make
a decision (good or bad) and that someone is responsible. People are influenced by legitimate power and
they will do what they are told due to the rules of society and the workplace (Prescott, 2015). Legitimate
power is fickle though. If someone loses their position, they often quickly lose their power. "

4. Referent Power

Referent Power is the "cult of personality". This is the power and ability for an individual to attract others
and to build loyalty within them. It is also the power of respect. This can occur through time if a leader is
successful and has a well known track-record of success. It is based on being liked and respected as an
individual. It's derived from an individual's perceived value, worth or attractiveness (Prescott, 2015).

5. Informational Power

Informational Power is the newest addition to the types of power by French and Raven. It is the power of
having information that another does not have, or, the distribution of information as a means of effecting
change. This could be positive or negative propaganda, knowledge of an opponent's strategy, or detailed
information that is used in decision support. It can be used to measure and improve tasks, processes, and
strategies (Prescott, 2015).

6. Expert Power

Expert power derives from an individual's expertise. Their level of skill, competence and experience helps
make them trustworthy and influential to others. It is derived from personal traits and is wholly
independent of a position in an organization. Expert power only lasts as long as an expert keeps getting
good results and is not acting purely for personal gain (Prescott, 2015).
 CHAPTER 4

TYPES OF ORGANIZATIONAL LEADERSHIP

Ethical Leadership

Ethical leadership is the demonstration of normatively appropriate conduct through personal actions and
interpersonal relationships, and the promotion of such conduct to followers through two-way
communication, reinforcement, and decision-making." It is a form of leadership in which individuals
demonstrate conduct for the common good that is acceptable and appropriate in every area of their life.
It means that individuals behave according to a set of principles and values that are recognized by the
majority as a sound basis for the common good such as integrity, respect, trust, fairness, transparency,
and honesty.

Elements of Ethical Leadership

Ethical leadership encompasses six main elements, they are (Villirilli, 2021):

1. Honesty- It involves committing to presenting facts as they are, playing fair with competitors, and
communicating honestly with others.

2. Justice- To be fair means treating everyone equally, offering opportunities with no favoritism, and
condemning improper behaviors and manipulations, as well as any other actions that could harm
someone.

3. Respect- This includes listening to each stakeholder, fostering inclusion, and value diversity. It is
respecting others around them, regardless of their position or identifying characteristics.

4. Integrity- It entails aligning consistently the values, words, and actions of the organization. It is not
enough to talk the talk, one has to walk the walk to demonstrate integrity.

5. Res Responsibility- It means accepting the leadership role, embracing the power and duties that come
with it, and always responding and being present in challenging situations.

6. Transparency It involves keeping an open dialogue, accepting feedback, and disclosing the information
others need to deliver their work.

Moral Components of Ethical LeadershiP

Ethical Leadership is primarily an integration of leadership and moral development theory.9% As James
Rest (1994) asserts that the process of understanding and resolving an ethical dilemma involves four
distinct psychological processes", they are: 98
1. Moral Awareness- Also known as Moral Sensitivity. It refers to the capacity of a leader or an individual
to recognize that one has encountered a moral dilemma. It is possible that a person is already involved in
a moral dilemma and is oblivious of that fact. Therefore, it is the first task of a leader to increase his/her
awareness of the ethical dilemmas in their midst (Grace, 1998, p. 9).

2. Moral Judgment- Also known as Moral Reasoning, it occurs after the leader/ individual becomes aware
of the moral dilemma happening in their group or organization. It is where the leader considers the
choices available while in the midst of a moral dilemma (Grace, 1998, p. 9).

3. Moral Intention- Also known as Moral choosing, it is where the leader or an individual made a choice
after considering the options available to him/her while in the midst of a moral dilemma. It provides the
leader a choice between satisfying one's self, the social order or one's principles (Grace, 1998, p.

Ipinadala mo

4. Moral Action- It is the last step, and it is distinct from the first three. The first 3 components are entirely
on a cognitive level of the leader, while Moral actions call for the leader to act or to do something in
actuality (Grace, 1998, p. 10).

Rest asserts that, when confronted with an ethical dilemma, individuals engage in a decision-making
process that involves working through these four components. Individuals move from moral awareness,
the recognition of a moral situation, to moral judgment, the evaluation of choices and outcomes, to moral
intention, choosing how one intends to act, and lastly to moral action, the actual behavior in the situation.
A failure at any step in the process could result in a failure to make an ethical decision (Rest, 1994).

The 4-V Model of Ethical Leadership

Sometimes knowing what is right is not a guarantee that a person will do what is right. There is a gap
between knowing the right thing and doing the right thing, in order to bridge the gap a leader needs to
have moral courage (Grace, 1998, p. 10). Moral courage involves the willingness to speak out and do what
is right in the face of forces that would lead a person to act in some other way.99 The 4- V Model of Ethical
Leadership helps leaders to cross the bridge of moral courage which leads to moral action (Grace, 1998,
p. 10).
Values

In order to develop good Ethical Leadership, the leader needs to first go in search of his own core values
and develop the discipline to integrate them into his/her daily lives. Service pertains to activities that a
person is doing in relation to other individuals around him/her; specifically those who are in need. It
connects Values to Vision, for it is only through the service of others a leader can yield the latent vision
within his own values.

Vision

It is about the leader's ability to implement his actions in such a way that they lead to a certain goal
(vision). Polis refers to politics. It indicates that an organization deals with the art of politics when the
vision has to be communicated to public groups. Vision leads to Voice as the leader seeks to take public
action related to his/her vision.

Voice

The ethical leader must have a voice, in order to formulate the vision for others and to make it clear in a
way that motivates them to act. Renewal stands for innovation. Although the voice can be expressed in
different ways, the ethical leader will have to regularly consider whether actions are in accordance with
values and vision.

Virtue

It is at the center of the model and it stands for the Common Good. Ethical leaders are role models because
of their virtuous behavior and will strive to do the right things and act appropriately. They need to reflect
further on how his/her values, vision, and voice are in keeping with the Common Good.

Transformational Leadership

James MacGregor Burns (1978) conceptualized leadership as either transactional or transformational. 100
According to Burns, transforming leadership is a process in which "leaders and followers help each other
to advance to a higher level of morale and motivation".

Transformational leadership is defined as a leadership approach that causes change in individuals and
social systems. Transformational leaders are those who stimulate and inspire followers to both achieve
extraordinary outcomes and in the process, develop their own leadership capacity. They help followers
grow and develop as leaders by responding to individual follower's needs by empowering them and by
aligning the objectives and goals of the individual followers, the leader, and the organization. 101
Four I's of Transformational Leadership

Bernard M. Bass (1985) expanded upon Burns's original ideas to develop what is today referred to as
Bass's Transformational Leadership Theory. 103 According to Bass, transformational leadership can be
defined based on the impact that it has on followers. 103 Transformational leaders, Bass suggested,
garner trust, respect, and admiration from their followers. 104 According to Bass there were four different
components of transformational leadership.

1. Individualized Consideration Refers to the degree to which the leader attends to each follower's needs,
acts as a mentor or coach to the follower and listens to the follower's concerns and needs. The leader
gives empathy and support, keeps communication open and places challenges before the followers. This
also encompasses the need for respect and celebrates the individual contribution that each follower can
make to the team. The followers have a will and aspirations for self development and have intrinsic
motivation for their tasks.

2. Intellectual Stimulation Refers to the degree to which the leader challenges assumptions, takes risks
and solicits followers' ideas. Leaders with this style stimulate and encourage creativity in their followers.
They nurture and develop people who think independently. For such a leader, learning is a value and
unexpected situations are seen as opportunities to learn. The followers ask questions, think deeply about
things and figure out better ways to execute their tasks.

3. Inspirational Motivation - Refers to the degree to which the leader articulates a vision that is appealing
and inspiring to followers. Leaders with inspirational motivation challenge followers with high standards,
communicate optimism about future goals, and provide meaning for the task at hand. Followers need to
have a strong sense of purpose if they are to be motivated to act. Purpose and meaning provide the energy
that drives a group forward. The visionary aspects of leadership are supported by communication skills
that make the vision understandable, precise, powerful and engaging. The followers are willing to invest
more effort in their tasks, they are encouraged and optimistic about the future and believe in their
abilities.

4. Idealized Influence - Refers to the degree in which the leader provides a role model for high ethical
behavior, instills pride, gains respect and trust.

Transactional Leadership

James MacGregor Burns (1978) conceptualized leadership as transactional(ortransformational) (Bassand

Riggio, 2006), Transactional leadership refers to the bulk of leadership models, which focuses on the
exchanges that occur between the leader and their followers, According to Burns, transactional leaders
are those who lead through social exchanges. For example; politicians lead by exchanging one thing for
another: jobs for votes, or subsidies for campaign contributions (Burns, 1978).
Transactional leadership, also known as managerial leadership, focuses on the role of supervision,
organization, and group performance. Leaders who implement this style focus on specific tasks and use
rewards and punishments to motivate followers. 106 It follows a managerial philosophy of reinforcement
and exchanges, managing employees by establishing specific goals and then offering a reward for
achieving them. Effective transactional leaders recognize and reward a follower's accomplishments in a
timely way. 107 Basic assumptions of Transactional Leadership are:

People perform their best when the chain of command is definite and clear.

Rewards and punishments motivate workers.

Obeying the instructions and commands of the leader is the primary goal of the followers.

Subordinates need to be carefully monitored to ensure that expectations are met.

Three Components of Transactional Leadership

The three components of Transactional Leadership are (Bass and Riggio, 2006):

1. Contingent Reward (CR)- It involves the leader assigning or obtaining follower's agreement on what
needs to be done with the promise or actual rewards offered in exchange for satisfactorily carrying out
the assignment.

2. Management-by-Exception- Passive (MBE-P)- It implies waiting passively for deviance, mistake, and
errors to occur and then taking a corrective action.

3. Management-by-Exception- Active (MBE-A)- It is where the leader arranges to actively monitor

deviances from standards, mistakes, and errors of the follower's assignments and to take corrective
actions as necessary.

Six Behaviors of a Spiritual Leader

The definition and application of spiritual leadership include six behaviors that promote spiritual practices
in the workplace:

1. Respect for others' values,

2. Fair treatment,
3. Expressing care and concern,

4. Listening actively and responsively,

5. Showing appreciation for others' contributions, and

6. Reflective practices, which include managing emotions.

Charismatic Leadership

Charismatic leadership theory was first mentioned in the book, The Three Types of Legitimate Rule,
published by Max Weber in 1958. Leaders who follow the charismatic leadership theory can inspire their
followers and motivate them. In turn, they win the devotion of their employees. Charismatic leadership
is a type of leadership that combines charm, interpersonal connection, and persuasiveness to motivate
others. It is a form of professional guidance or management built on a foundation of strong
communication skills, persuasiveness, and maybe even a little bit of charm to help them get the most out
of everyone that works for them. 120

Charismatic leaders are seen to have inspiring visions, being able to enthuse their followers and get them
to identify with the vision through their powers of persuasion and ability to influence the emotions of
followers. 121

Characteristics of Charismatic Leadership

Charismatic leaders stand out from the crowd. Their behavior towards others and their thinking help them
grab gr the attention of the people around them. The following are the characteristics of a Charismatic
Leader (Waters, 2021):

1. Excellent Communication Skills- A charismatic leader can clearly communicate duties and goals to their
team. They can speak openly, in a professional way, and convey their exact thoughts without speaking
too little or too much. They also allow open communication between everyone. They encourage their
employees to speak freely without fear of repercussions. They also have good listening skills so that their
employees feel heard (Waters, 2021).

2. Emphatic and Compassionate- Charismatic leaders are open to their followers' concerns and passions,
willing to understand their feelings. They have high emotional intelligence. Because of this skill, they
become well-liked among their employees as great listeners and confidants (Waters, 2021).

3. Confident-Proper posture and the right body language, such as maintaining eye contact, create an
image of confidence. The idea of charisma often brings along the idea of self- confidence. A charismatic
leader can confidently take control when issues arise, or problems are found (Waters, 2021).

4. Humble- A charismatic leader understands that they aren't perfect. They are willing to accept their
mistakes and take on mistakes from their team as their own. They understand they can improve and strive
to do so for the sake of their team (Waters, 2021).
5. Self Aware- A charismatic leader focuses on understanding themselves and their roles within their team
(Waters, 2021).

6. Mature- A charismatic leader can develop and drive a team toward the organizations" goals due to their
expertise and experience. They can accomplish this with a wise mindset when approaching everything
they do. They are the leader who directs and commands (Waters, 2021).

7. Optimist- A charismatic leader can build a positive attitude for everyone around them by always looking
on the brighter side. They don't give up easily. They're committed to facing and finding solutions in the
most difficult of situations. They aren't afraid to take risks even when the stakes are high (Waters, 2021).

8. Passionate-A charismatic leader always shows a great deal of passion in everything they do. They show
great enthusiasm for their work, genuinely. This passion should also bleed into other employees through
clear communication and how they act (Waters, 2021).

Servant Leadership

The Servant Leadership is based on the idea that leaders prioritize serving the greater good. Leaders with
this style serve their team and organization first. They don't prioritize their own objectives. It seeks to
achieve a vision by providing strong support to employees. In turn, this allows employees to learn and
grow while bringing their own expertise and vision to the table. This hinges on building influence and
authority rather than using control and toxic leadership tactics (Gomes, 2021).

The theory of servant leadership is thought to have been coined by Robert Greenleaf (1970), a twentieth-
century researcher. Greenleaf considered that the leader should put the emphasis on their team members
so that they can become autonomous and free-thinking. Servant leadership is a mindset that reflects a
servant-first mentality rather than a leader-first mentality.23

Characteristics of Servant Leadership

Here are the 10 characteristics of a Servant leader (Barling, 2014, p. 15):

1. Listening-Servant leaders don't just speak but listen to what their team has to say. They give ample
opportunity for all members to be heard, and then, listen carefully to what is being said and potentially
what is not being said. They give others their full attention, notice coworkers' body language, avoid
interrupting and give constructive feedback.

2. Empathy- Servant leaders understand that when their team feels happy and fulfilled in their personal
lives, it contributes to success in their professional lives. They value others' perspectives and approach
situations with an open mind (IET, 2022).
3. Healing Effective servant leaders understand the importance of fixing problems before moving on to
new goals and projects. They make sure their team has the knowledge, support and resources to do their
jobs effectively (IET, 2022).

4. Awareness-Effective servant leaders are aware of themselves and their teams. Through self-awareness,
servant leaders accept and grow from their own weaknesses. While being aware of their team's individual
strengths and weaknesses to help them grow and learn (IET, 2022)

5. Persuasion- Effective servant leaders guide and persuade team members. They seek to convince the
team as a whole and build a consensus (IET, 2022).

6. Conceptualization- Effective servant leaders can think beyond small tasks and communicate larger goals
and why they are important to their teams. They help their team understand their roles and stay
motivated while focusing on the company's long-term objectives and goals (IET, 2022).

7. Foresight Effective servant leaders understand the importance of learning from past mistakes and
successes and using lessons learned to productively evaluate present decisions. They identify what's
happening now and understand the consequences of their decisions and then help their team do the
same.

8. Stewardship- Effective servant leaders acknowledge and understand the importance of their
responsibilities. They protect and uphold the trust and confidence given them in their role and
communicate this to their team. They lead by example, demonstrating the values and behaviors that they
want to see in others.

9. Commitment- Effective servant leaders motivate their teams to grow. They are committed to helping
their teams develop professionally. Servant leaders help their team members become leaders themselves
by leading by example and providing their team with opportunities to grow and develop.

10. Building Community- Effective servant leaders encourage collaboration and engagement within their
organizations. They value the opinions of everyone on their team and encourage them to share those
opinions and to actively contribute to the team regularly.
 CHAPTER 5

What is Management?

Management is a set of principles relating to the functions of planning, organizing, directing, and
controlling, and the applications of these principles in harnessing physical, financial, human, and
informational resources efficiently and effectively to achieve organizational goals. It is a problem-solving
process of effectively achieving organizational objectives through the efficient use of scarce resources in
a changing environment.

All organizations such as business, political, cultural or social are involved in management because it is the
management which helps and directs the various efforts towards a definite purpose. 127 It is an art of
getting things done through and with the people in formally organized groups. It is an art of creating an
environment in which people can perform and individuals and can cooperate towards attainment of group
goals.

There are many definitions of management, however it can be observed that the definitions of
management converge on the concept of accomplishing goals and objectives through the efforts of
people.

Leadership and Management

Leadership as discussed from the previous chapter, is the ability to influence or guide people within an
organization or business, while management is the ability to control day-to-day processes and keep
employees on track to achieve company goals. 190 Management consists of controlling a group or a set
of entities to accomplish a goal. Leadership refers to an individual's ability to influence, motivate, and
enable others to contribute toward organizational success.

Leadership and management are terms that are often considered synonymous. It is important to
understand that leadership is an essential part of effective management. As a crucial component of
management, remarkable leadership behavior stresses upon building an environment in which each and
every employee develops and excels. This influence may originate from formal sources, such as that
provided by acquisition of managerial positions in an organization. A manager must have traits of a leader,
and develop that build and sustain competitive advantage. Organizations require robust leadership and
robust management for optimal organizational efficiency.
 Figure 10

Difference between Leadership and Management

Leadership Management

Focuses on things Focuses on people

Articulates a vision Executes plans

Trusts & develops Directs & coordinates

Creates change Manages change

Uses influence Uses authority

Authority comes from personal relationships Authority stems from position in the
organization

Thinks strategically Determines long-term objectives and

strategies

Delegates responsibility Acts decisively

Appropriate risk taking and innovation Decides how to use personnel and other
resources

Difference Between Leadership and Management

Some leadership and management skills overlap, it's important to know the distinctions between these
two roles. Effective leaders are invested in motivating and inspiring their teams, often by setting a good
example for employees to follow and defining the expectations of the company for its employees.
Managers are more occupied with the daily tasks that meet leadership goals and are responsible for
effectively delegating work and ensuring their employees are meeting company deadlines and
expectations. (IET, 2022).

Here are some of the key differences between Leadership and Management:

Differences in Vision

Managers set out to achieve organizational goals by implementing processes, such as budgeting,
organizational structuring, and staffing. Managers' vision is bound to the implementation strategies,
planning, and organizing tasks to reach the objectives set out by leaders. Leaders on the other hand, are
considered as visionaries. They set the pathways to excel in organizational growth. They always examine
where their organization stands, where they want to go, and how they can reach there by involving the
team. Both of these roles are equally important in the context of business environments and necessitate
associative efforts (Duggal, 2022).

Organizing vs Aligning

Leaders are more focused on how to align and influence people rather than how to assign work to them.
They achieve this by assisting individuals in envisioning their function in a wider context and the possibility
for future growth that their efforts may give. While, managers achieve their goals hy using coordinated
activities and tactical processes. They break down long-time goals into tiny segments and organize
available resources to reach the desired outcome (Duggal, 2022).

Differences in Queries

A leader asks what and why, whereas a manager focuses on the questions of how and when. To do justice
to their duties as a leader, one might question and challenge the authority to reverse decisions that may
not be in the better interests of the team. If a firm has a stumbling block, a leader will be the one to step
up and ask, 'What did we learn from this?' and 'Why has this happened?' While, managers are not required
to assess and analyze failures. Their job description emphasizes asking How and When, which assists them
in ensuring that plans are carried out correctly. They prefer to accept the status quo and make no attempt
to change it (Duggal, 2022).

Position vs Quality

A manager is a role that frequently refers to a specific job within an organization's structure, whereas the
term leader has a more ambiguous definition. Leadership emerges as a result of your actions. An individual
is a leader if he/she acts in a way that inspires others to do their best. It makes no difference what his/her
title or position is. On the other hand, a manager is a job title that comes with a fixed set of responsibilities.

Principles of Management

Henry Fayol (1841-1925) was a French coal-mine engineer, also known as the father of modern
management theory. His scientific management theory forms the base for business administration and
business management. He introduced a general theory that can be applied to all levels of management
and every department. 134
The fourteen principles of management created by Henri Fayol are:

1. Division of Work

The objective of division of work is to produce more and better work with the same effort. It leads to
specialization, and specialization helps to increase efficiency and efficiency which results in improvements
in the productivity and profitability of the organization (Fayol, 2016).

2. Balancing Authority and Responsibility

Authority is the right to give orders and power to exact obedience. While responsibility is a corollary of
authority, it is its natural consequence and essential counterpart, and wherever authority is exercised
responsibility arises. There should be a balance between Authority (Power) and Responsibility (Duties). If
the authority is more than responsibility then chances are that a manager may misuse it. If responsibility
is more than authority then he may feel frustrated (Fayol, 2016).

3. Discipline

Discipline means respect for the rules and regulations of the organization. Discipline may be Self-
discipline, or it may be Enforced discipline. line. It is an outward mark of respect in accordance with formal
or informal agreements between a firm and its employees. The workers must respect the rules that run
the organization. To establish discipline, good supervision and impartial judgment are needed (Fayol,
2016).

4. Unity of Command

A subordinate (employee) must have and receive orders from only one superior (boss or manager). A
subordinate must report to only one superior. It helps in preventing dual subordination. Dual
subordination can cause havoc in the organization, since authority is undermined, discipline is
jeopardized, order is disturbed and stability threatened (Fayol, 2016).

5. Unity of Direction

It is expressed as "one head and one plan for a group of activities having the same objective. It is essential
for unity of actions, coordination of strengths and focusing of effort (Fayol, 2016).

6. Subordination of Individual Interests to the General Interest

The interest of one individual or one group should not prevail over the general good. The general interest
should be given the most importance. If not, the organization will collapse. The interest of the
organizational goal should not be sabotaged by the interest of an individual or of the group (Fayol, 2016).

7. Remuneration of Personnel

Remuneration of personnel is the price of the services rendered. It should be fair and affords satisfaction
to both the personnel and the firm. If an organization wants efficient employees and best performance,
then it should have a good remuneration policy. This policy should give maximum satisfaction to both
employers and employees. It should include both financial and non-financial incentives. Compensation
should be based on a systematic attempt to reward good performance (Fayol, 2016).
8. Centralization

In centralization, the authority is concentrated only in a few hands. While decentralization has the
authority distributed to all the levels of management. There should be a balance between centralization
and decentralization. The degree to which centralization or decentralization should be adopted depends
on the specific organization, but managers should retain final responsibility but should give subordinates
enough authority to do the tasks successfully (Fayol, 2016).

9. Scalar Chain

The chain of command, also known as the scalar chain, is the formal line of authority, communication,
and responsibility within an organization. The chain of command is usually depicted on an organizational
chart, which identifies the superior and subordinate relationships in the organizational structure. It is the
line of authority from top to bottom of the organization. This chain implements the unity-of-command
principle and allows the orderly flow of information. Under the unity of command principle, the
instructions flow downward along the chain of and accountability flows upward (Fayol, 2016). command

10. Order

There must be an orderly placement of the resources such as Men and Women, Money, Materials, etc in
the organization. Human and material resources must be in the right place at the right time. Misplacement
will lead to misuse and disorder. Order for things is called Material Order, it's a place for everything and
everything in its place. While, order for people is called Social Order, which refers to the selection of the
"right man in the right place" (Fayol, 2016).

11. Equity

Equity is a combination of kindness and justice. It creates loyalty and devotion in the employees toward
the organization. The equity principle suggests that the managers must be kind as well as equally fair to
the subordinates (Fayol, 2016).

12. Stability of Tenure of Personnel

The employees should have job security because instability leads to inefficiency. Successful firms usually
had a stable group of employees. Employees need to be given sufficient time to settle into their jobs. They
need time to learn their job and to become efficient (Fayol, 2016).

13. Initiative

Initiative gives satisfaction to the employees and brings success to the organization. Management should
encourage initiative. They should encourage the employees to make their own plans and to execute these
plans. It allows the subordinates to think out a plan and do what it takes to make it happen (Fayol, 2016).

14. Esprit De Corps

Esprit de Corps means Team Spirit, the management should create unity, co-operation, and team-spirit
among the employees. They should avoid dividing and rule policy. Harmony, cohesion among personnel.
It's a great source of strength in the organization. It is a quality in every successful business (Fayol, 2016).
 Figure 11

Five Functions of Management

Planning

Management
control Functions Organizing

directing staffing

Functions of Management

In general, there are five basic functions of Management they are:

1. Planning

Planning is the first task of a manager, and forms the basis of which all other tasks are derived.
Management decides the future of the organization, by planning, strategizing and implementing plans.
196 Planning is the continuous process of making present entrepreneurial decisions systematically and
with best possible knowledge of their future, organizing systematically the efforts needed to carry out
these decisions and measuring the results of these decisions against the through organized and systematic
feedback.

An effective planning program incorporates the effect of both;

A. External Factors

This includes shortages of resources; both capital and material, general economic trend as far as interest
rates and inflation are concerned, dynamic technological advancements, increased governmental
regulation regarding community interests, unstable international political environments, etc.
B. Internal Factors

This includes limited growth opportunities due to saturation requiring diversification, changing patterns
of the workforce, more complex organizational structures, decentralization, etc

Characteristics of Planning

The following are the characteristics of Effective Planning (Shinde 2018, p. 46-50):

 Planning is goal oriented- it is made to achieve the desired objectives of an organization. The goals
established should be accepted by the majority otherwise individual efforts and energies will go
misguided and misdirected. Planning identifies the action that would lead to desired goals quickly
and economically (Shinde, 2018, p. 46).

 Planning is looking ahead- It is done for the future. It is based on forecasting. It is a mental
predisposition for things to happen in the future (Shinde, 2018, p. 46).

 Planning is an intellectual process- It is a mental exercise which involves creative thinking, sound
judgment, and imagination. It is always based on goals, facts, and considered estimates (Shinde,
2018, p. 46).

 Planning involves choice and decision making- It essentially involves choice among various
alternatives. A manager is surrounded by a number of alternatives. He/she has to pick the best
depending upon the requirements and resources of the organization (Shinde, 2018, p. 47).

 Primacy of planning- It lays a foundation for other functions of management. All functions of
management are performed within the framework of plans laid out (Shinde, 2018, p. 47).

 Planning is a continuous process- It is a never ending function due to the dynamic business
environment. Plans are prepared for a specific time and at the end of that period, plans are
subjected to re-evaluation and review in the light of new requirements and changing conditions
(Shinde, 2018, p. 47).

 Planning is all pervasive- It is required at all levels of the organization and in all of its departments.
The scope of planning may differ from one level to another. Top level may be concerned about
planning the organization as a whole whereas the middle level may be more specificin
departmental plans, and the lower level plans implementation of the same (Shinde, 2018, p. 48).

 Planning facilitates coordination- it revolves around the organizational goals, and all activities are
directed towards common goals. There is an integral effort throughout the organization within its
various departments and groups. I(t avoids duplication of efforts (Shinde, 2018, p. 49).

 Planning encourages innovation- In the process of planning, managers have the opportunities of
suggesting ways and means of improving performance. It is basically a decision making function
which involves creative thinking and imagination that ultimately leads to innovation of methods
and operations for growth and prosperity of the enterprise (Shinde, 2018, p. 50).
2. Organizing

Organizing is the process of creating structure for the organization that will enable the various players to
work together effectively towards its objectives (Shinde, 2018, p. 61). It requires a formal structure of
authority and the direction and flow of such authority through which work subdivisions are defined,
arranged and coordinated so that each part relates to the other part in a united and coherent manner so
as to attain the prescribed objectives (Kerekja, n.d.).

Organizational Structure is the basic framework of formal relationship among responsibilities, tasks, and
people in the organization. It can be seen as the division of activities into manageable units where
everyone knows their roles and parts, which in turn removes confusion and conflict (Shinde, 2018, p. 61).

Basic Principles of Organizing

Effective organizations are guided by the following principles (Shinde, 2018, p. 63):

Division of work and specialization- It involves dividing the total workload into tasks that can be logically
and effectively performed by individuals with specialized knowledge.

Departmentation It refers to the logical groupings into manageable sizes of organizational activities that
belong together. The departments created constitute the organization's structure and appear on
organizational charts138.

Coordination- It refers to the process of integrating departments both horizontally and vertically. It is
achieved through authority relationships, which involve allocation of responsibility and authority to each
position in the organizational structure.

Chain of Command- it defines the reporting lines of individuals and groups in the organizations.

Unity of Command- It implies that each subordinate must have only one manager to report to.

Span of Control- It refers to the number of subordinates working under one manager.

3. Staffin

Staffing, also known as Human resource, is the function of hiring and retaining a suitable work-force for
the enterprise both at manageria as well as non-managerial It involves the process of recruiting, training,
developing, compensating and evaluating employees and maintaining this workforce with proper
incentives and motivations. Since the human element is the most vital factor in the process of
management, it is important to recruit the right personnel.

Components of Staffing

Managerial function of staffing involves manning the organization structure through proper and effective
selection, appraisal & development of personnel to fill the roles assigned in the structure. Staffing
involves¹39:

Manpower Planning

it involves the estimation of manpower in terms of searching, choosing the person and giving the right
place.

Recruitment, Selection & Placement

Recruitment is the process of identifying the sources for prospective candidates to stimulate them to
apply for jobs in the organization.

Selection is the process of choosing from among the candidates the most suitable person for the current
position or for the future position.

Placement may be defined as the determination of the job to which a selected candidate is to be assigned,
and his assignment to the job.

Training & Development

These are educational activities within organization that are designed to improve the job performance of
an individual or group. These programs typically involve advancing a worker's knowledge and skill sets
and instilling greater motivation to enhance job performance. 140 an

Remuneration

Remuneration is any type of compensation or payment that an individual or employee receives as

payment for their services or the work that they do for an organization or company. It includes whatever
base salary an employee receives, along with other forms of payment that accrue during the course of
their work, which includes expense account funds, bonuses, and stock options. 141
Performance Appraisal

A performance appraisal is a regular review of an employee's job performance and contribution to a

company. Organizations use performance appraisals to determine which employees have contributed the
most to the company's growth, review progress, and reward high-achieving workers. 142

Promotions & Transfer

Promotion is defined as the movement of an employee from one position to another position of a higher
pay grade or salary.

Transfer is defined as the movement of an employee from one position to another position at the same
pay grade level or similar salary.

4. Directing

Directingisa managerial function which actuates the organizational method to work efficiently to achieve
organizational goals. It's the life- spark of any enterprise which sets in motion the action of people because
planning, organizing and human resources are the mere preparations for doing work. Direction is the
inert-personnel aspect of management which deals directly with influencing, guiding, supervising,
motivating to achieve the organization's goals (Lavinas, 2019).

Elements of Directing

Direction is that inert-personnel aspect of management which deals directly with influencing, guiding,
supervising, motivating sub- ordinate for the achievement of organizational goals (Juneja, n.d.). The
following are the elements of directing as management function:

Supervision- It implies overseeing the work of subordinates by their superiors. It is the act of watching &
directing work & workers.

Motivation- It involves inspiring, stimulating or encouraging the subordinates with zeal to work. Positive,
negative, monetary, non-monetary incentives may be used for this purpose.

Leadership- It is a process by which a manager guides and influences the work of subordinates in desired
direction.

Communications- It is the process of passing information, experience, opinion etc from one person to
another. It is a bridge of understanding.
5. Controlling

Controlling is the measurement & correction of performance activities of subordinates in order to make
sure that the enterprise objectives and plans desired to obtain them as being accomplished The task of
control is to assure accomplishment of objectives by detecting potential or actual deviation from plans
early enough to permit effective corrective action. The more control approaches and techniques detect
and illuminate the causes of potential or actual deviations from plans with the minimuin of costs or other
unsought consequences, the more efficient these controls will be (Koontz and O'Donnell, 1968).

Components of Controlling

The controlling as managerial function involves:

Establishment of Standard Performance

Performance standards are the expression of management-approved performance thresholds,

expectations, and requirements that are to be met so that the employees are eligible for appraisal. 144

It consists of a proper plan or pointers so that employees will have guidance about the organization's
journey. The performance standards vary by rules of the employee, organization, industry, etc. An
essential element is established at the beginning of the year or quarter so that the employee can plan
accordingly to achieve the goals.

Performance standards are objective, realistic, measurable, and transparent. Ambiguous performance
standards are not at all good for the employee and the organization.

Measurement of Actual Performance

Performance should be measured based on an employee's overall impact, cost efficiency, effectiveness,
and ability to implement best practices.

Once performance standards are set, the next step is the measurement of actual performance.
Performance should be measured in an objective and reliable manner. There are several techniques for
the measurement of performance. These include personal observation, sample checking, performance
reports, etc. 145
Comparison of Actual Performance with the Standards and Finding out Deviation

Comparing actual performance with standards or goals involves accepting or rejecting the product or
outcome.

This comparison of the actual performances with the standards will make known the differences and
deviations. This compares the degree of difference between the actual performance and the standard. In
real case scenarios, these numbers almost never match up completely. It is completely necessary to
evaluate deviations to determine why the standard is not being met when performance falls short of the
standard (QS Study, 2022).

Analyzing deviations involves determining whether more control is necessary or if the standard should be
changed.

Taking Corrective Action

The final step of the control process. If the deviations in the third step are in an unacceptable range, then
the firm needs to improve their performances.

The management must take action to get better the actual performance of the firm in those problem
areas. After the reasons for deviations have been indomitable, managers can then build up solutions for
issues with meeting the standards and make changes to processes or behaviors (QS Study, 2022).

Timing of Controls

Controls can be categorized according to the time in which a process or activity occurs. The three
categories are:

1. Feedback Controls

It occurs after an activity or process is completed. It is reactive.

For example, feedback control would involve evaluating a team's progress by comparing the production
standard to the actual production output.

If the standard or goal is met, production continues. If not, adjustments can be made to the process or to
the standard.
Feedback control is more suited for processes, behaviors, or events that are repeated over time.

2. Proactive Controls

Also known as preliminary, preventive, or feed-forward control, involves anticipating trouble, rather than
waiting for a poor outcome and reacting afterward. It is about prevention or intervention.

An example of proactive control is when an engineer performs tests on the braking system of a prototype
vehicle before the vehicle design is moved on to be mass produced.

Proactive control looks forward to problems that could reasonably occur and devises methods to prevent
the problems.

3. Concurrent Controls

Monitoring takes place during the process or activity. Concurrent control may be based on standards,
rules, codes, and policies.

An example of concurrent control is fleet tracking. Fleet tracking by GPS allows managers to monitor
company vehicles. Managers can determine when vehicles reach their destinations and the speed in which
they move between destinations.