Unit-4

Leadership
Motivation
controlling
MOTIVATION
 The term motivation has been derived form the word
motive. motive is anything that initiates or sustains
activity.
 It is an inner state that energizes, activates pr moves
and that directs or channels behavior towards goals.
 Motivation is the process of steering a person’s inner
drives and actions towards certain goals and
committing his energies to achieve these goals
 Motivation may be define as the work a manager
performs in order to induce subordinates act in the
desired manner by satisfying their needs and desires.
Thus motivation is concerned with how behavior gets
started, is energized sustained and directed
Define:
 According to koontz and o’donnell: to
motivate is to induce people to act in a
desired manner.

 According to scott: motivation means a

process of stimulating people to action to
accomplish desired goals
Characteristics
 Motivation is personal and internal feeling
 Motivation is a continuous process.
 Motivation is complex
 Motivation is system oriented.
 Motivation can be either positive or negative.
 Motivation create goal directed behavior
 Motivation is different from job satisfaction.
 motivation creates moral
 It is relates with all the levels of organisation.
IMPORTANCE
 High level of performance
 Low employee turnover and absenteeism
 Easy acceptance of organizational changes
 Sweet relations between owner and

employees
 Good image of the organization helps in

achieving goals
 Build good relations among employees
 proper use of human resource possible.
Motivation techniques
 Motivation techniques are also known as types kind
method classification and tools.:
 1) positive and negative
 2) financial and non financial
 a) financial or monetary:
 i. pay and allowances
 ii. Productivity linked wages incentives
 iii. Bonus
 iv. Profit sharing
 v. co partnership
 vi. Retirement benefits
 vii. Perquisites

 b) non financial
 i. status
 ii. Organizational climate
 iii. Career advancement opportunity
 iv. Job enrichment
 v . Employee recognition programmes
 vi. Job security
 vii. Employee participation
 viii. Praise
 ix. Knowledge of secret information
 x job rotation a
 3) Individual and group
 4) Extrinsic and intrinsic motivators
Leading
as a function of management
 Leading involves influencing others toward the attainment of
organizational objectives. Effective leading requires the
manager to motivate subordinates, communicate effectively,
and effectively use power. If managers are effective leaders,
their subordinates will be enthusiastic about exert effort
toward the attainment of organizational objectives.
 Leadership is the activity of influencing people to strive
willingly for group objectives.
 Koontz and O'Donnell “influencing people to follow the
achievement of a common goal. It is the ability to exert
interpersonal influence by means of communication towards
the achievement of organizational goals”
Leadership traits
 The increasing rate of change in the business environment
is a major factor in this emphasis on leadership. Whereas in
the past, managers were expected to maintain the status
quo in order to move ahead, new forces in the marketplace
have made it necessary to expand this narrow focus. The
new leaders of tomorrow are visionary. They are both
learners and teachers. Not only do they foresee paradigm
changes in society, but they also have a strong sense of
ethics and work to build integrity in their organizations.
 Raymond Cattell, a pioneer in the field of personality
assessment, developed the Leadership Potential equation
in 1954. This equation, which was based on a study of
military leaders, is used today to determine the traits which
characterize an effective leader. The traits of an effective
leader include the following:
 Emotional stability. Good leaders must be able to tolerate
frustration and stress. Overall, they must be well-adjusted
and have the psychological maturity to deal with anything
they are required to face.
 Dominance. Leaders are often times competitive and
decisive and usually enjoy overcoming obstacles. Overall,
they are assertive in their thinking style as well as their
attitude in dealing with others.
 Enthusiasm. Leaders are usually seen as active,
expressive, and energetic. They are often very optimistic
and open to change. Overall, they are generally quick and
alert and tend to be uninhibited.
 Conscientiousness. Leaders are often dominated by a
sense of duty and tend to be very exacting in character.
They usually have a very high standard of excellence and
an inward desire to do one's best. They also have a need
for order and tend to be very self-disciplined.
 Social boldness. Leaders tend to be spontaneous risk-takers.
They are usually socially aggressive and generally thick-skinned.
Overall, they are responsive to others and tend to be high in
emotional stamina.
 Tough-mindedness. Good leaders are practical, logical, and to-
the-point. They tend to be low in sentimental attachments and
comfortable with criticism. They are usually insensitive to
hardship and overall, are very poised.
 Self-assurance. Self-confidence and resiliency are common traits
among leaders. They tend to be free of guilt and have little or no
need for approval. They are generally secure and free from guilt
and are usually unaffected by prior mistakes or failures.
 Compulsiveness. Leaders were found to be controlled and very
precise in their social interactions. Overall, they were very
protective of their integrity and reputation and consequently
tended to be socially aware and careful, abundant in foresight,
and very careful when making decisions or determining specific
actions.
 Beyond these basic traits, leaders of today must also possess
traits which will help them motivate others and lead them in new
directions. Leaders of the future must be able to envision the
future and convince others that their vision is worth following. To
do this, they must have the following personality traits:
 High energy. Long hours and some travel are usually a
prerequisite for leadership positions, especially as your company
grows. Remaining alert and staying focused are two of the
greatest obstacles you will have to face as a leader.
 Intuitiveness. Rapid changes in the world today combined with
information overload result in an inability to "know" everything. In
other words, reasoning and logic will not get you through all
situations. In fact, more and more leaders are learning to the
value of using their intuition and trusting their own instincts when
making decisions.
 Maturity. To be a good leader, personal power and recognition
must be secondary to the development of your employees. In
other words, maturity is based on recognizing that more can be
accomplished by empowering others than can be by ruling others.
 Team orientation. Business leaders today put a strong
emphasis on team work. Instead of promoting an
adult/child relationship with their employees, leaders
create an adult/adult relationship which fosters team
cohesiveness.
 Empathy. Being able to put yourself in the other person's
shoes is a key trait of leaders. Without empathy, you can't
build trust. And without trust, you will never be able to
get the best effort from your employees.
 Charisma. People usually perceive leaders as larger than
life. Charisma plays a large part in this perception.
Leaders who have charisma are able to arouse strong
emotions in their employees by defining a vision which
unites and captivates them. Using this vision, leaders
motivate employees to reach toward a future goal by
tying the goal to substantial personal rewards and values.
Leadership styles
 Leadership style refers to a leader's behavior.
It is the result of the philosophy, personality,
and experience of the leader.
 Leadership styles can be classified into three

broad categories --- a) Autocratic

 b) Consultative
c) Free Rein.
Autocratic or authoritarian style
 Under the autocratic leadership style, all decision-making
powers are centralized in the leader.
 Leaders do not entertain any suggestions or initiatives from
subordinates. The autocratic management has been successful
as it provides strong motivation to the manager. It permits quick
decision-making, as only one person decides for the whole
group and keeps each decision to him/herself until he/she feels
it needs to be shared with the rest of the group.
 Autocratic leaders loves power and never delegate their
authority.
 ADV:
 1) A.leader style permits quick decision making
 2) it provides strong motivation and satisfaction to the leader
who dictate terms
 3) the style may yield positive results when great speed is
required
 DIS.ADV:
 It leads to frustration, low morale for the

subordinates
 Full potential of subordinates and creativity

are not utilized.

 Conflicts among subordinates.
 Subordinates tend to shirk responsibility and

initiatives.
Participative or democratic style
 A consultative leader takes decision in
consultation and participation with the
subordinates.
 The democratic leadership style favors
decision-making by the group. Such a leader
gives instructions after consulting the group.
 They can win the cooperation of their group
and can motivate them effectively and
positively. The decisions of the democratic
leader are not unilateral as with the autocrat
because they arise from consultation with the
group members and participation by them.
 Adv:
 Consultative leadership style improve the job satisfaction and morale
of subordinates
 It cultivates the decision making ability of subordinates.
 It develops positive attitude and reduce resistance to change.
 Labour absenteeism and labour turnover are reduced.

 DIS ADV
 Democratic style is time consuming and may result in delays in
decision making
 It may not yield positive results when subordinates prefer minimum
interaction with the leader,
 Over period of time subordinates may develop the habit of expecting
to be consulted.
 Consultative leadership is considered to be more effective than
autocratic style through there is no empirical proof for this.
Laissez-faire or free rein style
 A free-rein leader does not lead, but leaves the group entirely
to itself. Such a leader allows maximum freedom to
subordinates; they are given a free hand in deciding their own
policies and methods
 Different situations call for different leadership styles. In an
emergency when there is little time to converge on an
agreement and where a designated authority has significantly
more experience or expertise than the rest of the team, an
autocratic leadership style may be most effective; however, in
a highly motivated and aligned team with a homogeneous
level of expertise, a more democratic or laissez-faire style
may be more effective.
 The style adopted should be the one that most effectively
achieves the objectives of the group while balancing the
interests of its individual members.
 ADV:
 Positive effect on job satisfaction and morale of
subordinates
 Maximum possible scope for development of
subordinates.
 Full utilization of the potential of subordinates.
 DIS ADV:
 Subordinates do not get the guidance and support of
the leader.
 It ignores the leader contribution just as autocratic
style ignores the contribution of subordinate.
 Free rein style may be appropriate when the
subordinates are well trained, highly knowledgeable
self motivated and ready to assume responsibility
Likert’s Management System
 Rensis Likert and his associates studied the patterns and styles of
managers for three decades at the University of Michigan, USA, and
identified a four-fold model of management systems. The model
was developed on the basis of a questionnaire administered to
managers in over 200 organizations and research into the
performance characteristics of different types of organizations.
The four systems of management system or the four leadership
styles identified by Likert are:
 System 1 - Exploitative Authoritative: The manager under this
system make all work related decisions and order their
subordinates to carry out the decisions. The managers also defines
standards and performance methods.
  Responsibility lies in the hands of the people at the upper
echelons of the hierarchy. The superior has no trust and
confidence in subordinates. The decisions are imposed on
subordinates and they do not feel free at all to discuss things
about the job with their superior. The teamwork or communication
is very little and the motivation is based on threats.
 System 2 - Benevolent Authoritative: system 2 managers are also
autocratic but they are not exploitative. They adopt a paternalistic
approach towards the subordinates.
 The responsibility lies at the managerial levels but not at the lower
levels of the organizational hierarchy. The superior has
condescending confidence and trust in subordinates (master-servant
relationship). Here again, the subordinates do not feel free to discuss
things about the job with their superior. The teamwork or
communication is very little and motivation is based on a system of
rewards.
 Carrot and stick approach to motivation is adopted under this system
 System 3 - Consultative: manager under this system set goals and
issue orders after discussing them with the subordinates.
Responsibility is spread widely through the organizational hierarchy.
The superior has substantial but not complete confidence in
subordinates. Some amount of discussion about job related things
takes place between the superior and subordinates. There is a fair
amount of teamwork, and communication takes place vertically and
horizontally. The motivation is based on rewards and involvement in
the job.
 System 4:Democratic under this system goals
are set and work related decisions are taken
by the subordinates. supervisions and control
are group oriented. Responsibility for
achieving the organizational goals is
widespread throughout the organizational
hierarchy. There is a high level of confidence
that the superior has in his subordinates.
There is a high level of teamwork,
communication, and participation.
 The nature of these four management systems has been
described by Likert through a profile of organizational
characteristics. In this profile, the four management systems
have been compared with one another on the basis of certain
organizational variables which are: Leadership processes
 Motivational forces
 Communication process
 Interaction-influence process
 Decision-making process
 Goal-setting or ordering
 Control processes
 On the basis of this profile, Likert administered a questionnaire
to several employees belonging to different organizations and
from different managerial positions (both line and staff). His
studies confirmed that the departments or units employing
management practices within Systems 1 and 2 were the lease
productive, and the departments or units employing
management practices within Systems 3 and 4 were the most
productive.
 Conclusion:According to Rensis Likert, the
nearer the behavioral characteristics of an
organization approach System 4
(Participative), the more likely this will lead to
long-term improvement in staff turnover and
high productivity, low scrap, low costs, and
high earnings. if an organization wants to
achieve optimum effectiveness, then the ideal
system.
 Likert suggested that system 4 is the ideal

system towards which organizations should

work. he advocated system 4 as the best way
to develop and utilise human resources.
Blake and Mouton’s Managerial Grid

 The treatment of task orientation and people orientation as two

independent dimensions was a major step in leadership studies.
Many of the leadership studies conducted in the 1950s at the
University of Michigan and the Ohio State University focused on
these two dimensions.
 Building on the work of the researchers at these Universities,
Robert Blake and Jane Mouton (1960s) proposed a graphic
portrayal of leadership styles through a managerial
grid (sometimes called leadership grid). The grid depicted two
dimensions of leader behavior, concern for
people(accommodating people’s needs and giving them priority)
on y-axis and concern for production (keeping tight schedules)
on x-axis, with each dimension ranging from low (1) to high (9),
thus creating 81 different positions in which the leader’s style
may fall
 The five resulting leadership styles are as follows:
 Impoverished Management (1, 1): Managers with this approach
are low on both the dimensions and exercise minimum effort to
get the work done from subordinates. The leader has low
concern for employee satisfaction and work deadlines and as a
result disharmony and disorganization prevail within the
organization. The leaders are termed ineffective wherein their
action is merely aimed at preserving job and seniority.
 Task management (9, 1): Also called dictatorial or perish style.
Here leaders are more concerned about production and have
less concern for people. The style is based on theory X of
McGregor. The employees’ needs are not taken care of and they
are simply a means to an end. The leader believes that efficiency
can result only through proper organization of work systems
and through elimination of people wherever possible. Such a
style can definitely increase the output of organization in short
run but due to the strict policies and procedures, high labour
turnover is inevitable.
 Middle-of-the-Road (5, 5): This is basically a compromising style
wherein the leader tries to maintain a balance between goals of
company and the needs of people. The leader does not push the
boundaries of achievement resulting in average performance for
organization. Here neither employee nor production needs are
fully met.
 Country Club (1, 9): This is a collegial style characterized by low
task and high people orientation where the leader gives thoughtful
attention to the needs of people thus providing them with a
friendly and comfortable environment. The leader feels that such a
treatment with employees will lead to self-motivation and will find
people working hard on their own. However, a low focus on tasks
can hamper production and lead to questionable results.
 Team Management (9, 9): Characterized by high people and task
focus, the style is based on the theory Y of McGregor and has been
termed as most effective style according to Blake and Mouton. The
leader feels that empowerment, commitment, trust, and respect
are the key elements in creating a team atmosphere which will
automatically result in high employee satisfaction and production.
 Advantages of Blake and Mouton’s Managerial Grid
 The Managerial or Leadership Grid is used to help managers
analyze their own leadership styles through a technique
known as grid training. This is done by administering a
questionnaire that helps managers identify how they stand
with respect to their concern for production and people. The
training is aimed at basically helping leaders reach to the
ideal state of 9, 9.
 Limitations of Blake and Mouton’s Managerial Grid
 The model ignores the importance of internal and external
limits, matter and scenario. Also, there are some more
aspects of leadership that can be covered but are not.
Controlling Function of Management
 Controlling consists of verifying whether everything occurs in
conformities with the plans adopted, instructions issued and
principles established. Controlling ensures that there is effective
and efficient utilization of organizational resources so as to
achieve the planned goals. Controlling measures the deviation of
actual performance from the standard performance, discovers the
causes of such deviations and helps in taking corrective actions
 According to Brech, “Controlling is a systematic exercise which is
called as a process of checking actual performance against the
standards or plans with a view to ensure adequate progress and
also recording such experience as is gained as a contribution to
possible future needs.”
 According to Donnell, “Just as a navigator continually takes
reading to ensure whether he is relative to a planned action, so
should a business manager continually take reading to assure
himself that his enterprise is on right course.”
Controlling has got two basic purposes
It facilitates co-ordination
It helps in planning

 Controlling is an end function- A function which comes once the

performances are made in conformities with plans.
 Controlling is a pervasive function- which means it is performed
by managers at all levels and in all type of concerns.
 Controlling is forward looking- because effective control is not
possible without past being controlled. Controlling always look
to future so that follow-up can be made whenever required.
 Controlling is a dynamic process- since controlling requires
taking reviewal methods, changes have to be made wherever
possible.
 Controlling is related with planning- Planning and Controlling
are two inseperable functions of management. Without planning,
controlling is a meaningless exercise and without controlling,
planning is useless. Planning presupposes controlling and
controlling succeeds planning.
Process of Controlling
 Establishment of standards- Standards are the plans or the
targets which have to be achieved in the course of business
function. They can also be called as the criterions for judging
the performance. Standards generally are classified into two-
Measurable or tangible - Those standards which can be
measured and expressed are called as measurable standards.
They can be in form of cost, output, expenditure, time, profit,
etc.
 Non-measurable or intangible- There are standards which
cannot be measured monetarily. For example- performance
of a manager, deviation of workers, their attitudes towards a
concern. These are called as intangible standards.
 Controlling becomes easy through establishment of these
standards because controlling is exercised on the basis of
these standards.
 Measurement of performance- The second major step in
controlling is to measure the performance. Finding out
deviations becomes easy through measuring the actual
performance. Performance levels are sometimes easy to
measure and sometimes difficult. Measurement of tangible
standards is easy as it can be expressed in units, cost, money
terms, etc. Quantitative measurement becomes difficult when
performance of manager has to be measured. Performance of
a manager cannot be measured in quantities. It can be
measured only by-Attitude of the workers,
 Their morale to work,
 The development in the attitudes regarding the physical
environment, and
 Their communication with the superiors.
 It is also sometimes done through various reports like weekly,
monthly, quarterly, yearly reports.
 Comparison of actual and standard performance- Comparison of actual
performance with the planned targets is very important. Deviation can be
defined as the gap between actual performance and the planned targets.
The manager has to find out two things here- extent of deviation and cause
of deviation. Extent of deviation means that the manager has to find out
whether the deviation is positive or negative or whether the actual
performance is in conformity with the planned performance. The managers
have to exercise control by exception. He has to find out those deviations
which are critical and important for business. Minor deviations have to be
ignored. Major deviations like replacement of machinery, appointment of
workers, quality of raw material, rate of profits, etc. should be looked upon
consciously. Therefore it is said, “ If a manager controls everything, he ends
up controlling nothing.” For example, if stationery charges increase by a
minor 5 to 10%, it can be called as a minor deviation. On the other hand, if
monthly production decreases continuously, it is called as major deviation.
 Once the deviation is identified, a manager has to think about various cause
which has led to deviation. The causes can be-
 Erroneous planning,
 Co-ordination loosens,
 Implementation of plans is defective, and
 Supervision and communication is ineffective, etc.
 Taking remedial actions- Once the causes and
extent of deviations are known, the manager
has to detect those errors and take remedial
measures for it. There are two alternatives
here-Taking corrective measures for
deviations which have occurred; and
 After taking the corrective measures, if the
actual performance is not in conformity with
plans, the manager can revise the targets. It is
here the controlling process comes to an end.
Follow up is an important step because it is
only through taking corrective measures, a
manager can exercise controlling.
 Planning and controlling are two separate fuctions of management,
yet they are closely related. The scope of activities if both are
overlapping to each other. Without the basis of planning, controlling
activities becomes baseless and without controlling, planning
becomes a meaningless exercise. In absense of controlling, no
purpose can be served by. Therefore, planning and controlling
reinforce each other. According to Billy Goetz, " Relationship between
the two can be summarized in the following points
 Planning preceeds controlling and controlling succeeds planning.
 Planning and controlling are inseperable functions of management.
 Activities are put on rails by planning and they are kept at right place
through controlling.
 The process of planning and controlling works on Systems Approach
which is as follows :Planning    →    Results    →    Corrective Action
Planning and controlling are integral parts of an organization as both
are important for smooth running of an enterprise.
 Planning and controlling reinforce each other. Each drives the other
function of management.
 In the present dynamic environment which
affects the organization, the strong
relationship between the two is very critical
and important. In the present day
environment, it is quite likely that planning
fails due to some unforeseen events. There
controlling comes to the rescue. Once
controlling is done effectively, it give us
stimulus to make better plans. Therefore,
planning and controlling are inseperate
functions of a business enterprise.
TYPE OF CONTROL
 Feedforward control focuses on the regulation of inputs
(human, material, and financial resources that flow into the
organization) to ensure that they meet the standards necessary
for the transformation process.
 Feedforward controls are desirable because they allow
management to prevent problems rather than having to cure
them later. Unfortunately, these control require timely and
accurate information that is often difficult to develop.
Feedforward control also is sometimes called preliminary
control, precontrol, preventive control, or steering control.
 However, some authors use term "steering control" as separate
types of control. This types of controls are designed to detect
deviation some standard or goal to allow correction to be made
before a particular sequence of actions is completed.
 Concurrent control takes place while an activity is in
progress. It involves the regulation of ongoing activities
that are part of transformation process to ensure that
they conform to organizational standards. Concurrent
control is designed to ensure that employee work
activities produce the correct results.
 Since concurrent control involves regulating ongoing
tasks, it requires a through understanding of the
specific tasks involved and their relationship to the
desired and product.
 Concurrent control sometimes is
called screening or yes-no control, because it often
involves checkpoints at which determinations are made
about whether to continue progress, take corrective
action, or stop work altogether on products or services.
 FEEDBACK CONTROL This type of control focuses on the outputs
of the organization after transformation is complete. Sometimes
called postaction or output control, fulfils a number of important
functions. For one thing, it often is used when feedforward and
concurrent controls are not feasible or are to costly.
 Sometimes, feedback is the only viable type of control available.
Moreover, feedback has two advantages over feedforward and
concurrent control. First, feedback provides managers with
meaningful information on how effective its planning effort was. If
feedback indicates little variance between standard and actual
performance, this is evidence that planning was generally on
target.
 If the deviation is great, a manager can use this information when
formulating new plans to make them more effective.  Second,
feedback control can enhance employees motivation.
 The major drawback of this type of control is that, the time the
manager has the information and if there is significant problem
the damage is already done. But for many activities, feedback
control fulfils a number important functions.