Module : Directing

MOTIVATION
DEFINITION & NATURE
 It refers to a set of forces that energise
people to behave in certain ways.

 Motivation is necessary to accomplish tasks,

to produce quality goods & for other related
purposes.
 Performance of an individual depends on his
or her ability backed by motivation.
IMPORTANCE OF
MOTIVATION
 Qualities of Motivation:
Energizes behavior
 Directs behavior
 Enables persistence (continuing in an
opinion or course of action in spite of
difficulty or opposition) towards a goal
THEORIES OF
MOTIVATION
Early Theories – Scientific
Management
 It is the name given to a philosophy & set of
methods & techniques that stressed the
scientific study & organisation of work at the
operations level for the purpose of increasing
efficiency.

 Scientific Management is more associated

with F.W. Taylor who is remembered as the
“Father of Scientific Management”.
 Scientific Management had contributed
several techniques –
1. Planning the task
2. Standardisation
3. Specialisation & division of work
4. Mental Revolution
 Taylors theory stated that –

 Physical work could be scientifically

studied to determine the optimal
method of performing a job.

 Workers could thereafter be made

more efficient by being given
prescriptions for how they were to do
their jobs.

 Workers would be willing to adhere to

these prescriptions if paid on a
Human Relations model
Contemporary Theories - Content
Theories
 Content Theories include -
a) Maslow’s Need Hierarchy Theory
b) Herzberg 2 factor theory
c) Alderfer’s ERG theory
d) Achievement Motivation Theory
Maslow’s Theory
 Abraham Maslow is considered father of the
humanistic movement.
 Hierarchy of needs: the motivational

component of Maslow’s theory, in which our

innate needs, which motivate our actions, are
hierarchically arranged.
 Self-actualization: the fullest realization of a

person’s potential
Abraham Maslow
Graphic: Hierarchy of Needs
Characteristics of
Self-Actualized People
• Efficient perceptions of reality
• Comfortable acceptance of self, others, and nature
• Spontaneity
• Profound interpersonal relationships
• Comfort with solitude (the state or situation of being
alone)
• Peak experiences
Herzberg’s Motivation-Hygiene Theory
Job satisfaction and job dissatisfaction are
created by different factors.
Hygiene/Maintenance factors - Extrinsic
(Environmental ) factors that create job
dissatisfaction.
Motivation Factors- Intrinsic
( Psychological ) factors that create job
satisfaction.
 Motivation–Hygiene Theory of
Motivation
• Company policy &
Motivation factors
increase job satisfaction
administration
• Supervision
• Interpersonal relations
• Working conditions • Achievement
• Salary • Achievement recognition
• Status • Work itself
• Security • Responsibility
• Advancement
• Growth
Hygiene factors/
Maintenance factors -
job dissatisfaction
Alderfer’s ERG Theory

 Modification of Maslow’s need hierarchy was

proposed by Clay Alderfer.

 Alderfer’s views on motivation arose from the results

of questionnaires he gave to over 100 employees at
several levels in a bank.

 Alderfer’s work led him to propose that there are

three (rather than maslow’s five) primary
categories of human needs. They are -
 Existence – The basic physiological needs (hunger &
thirst)& protection from physical danger.
 Relatedness – Social & affiliation needs & the need

for respect & positive regard from others.

 Growth – The need to develop & realise one’s

potential.
Achievement Motivation Theory by McClelland

According to David McClelland a person requires 3

types of needs as a result of one’s life experience.
They are –
 Need for Achievement (n Ach) – A drive to excel,

advance & grow

 Need for Power (nPow) - A drive to dominate or

influence others & situations

 Need for Affiliation (nAff) - A drive for friendly &

close inter-personal relationships

 McClelland states that people with high need for
achievement are characterized by the following –
 They set realistic goals.

 They take calculated risks & look for challenging

tasks.

 They prefer situations wherein they can take personal

responsibility for solving problems.
 They need concrete feedback on how well they are
doing

 Their need for achievement exist not merely for the

sake of economic rewards or social recognition rather
personal accomplishment is intrinsically more
satisfying to them.
 Employees with a high need for achievement derive
satisfaction from achieving goals.

 Succeeding the task is important to the high achiever.

 Although people with a high need for achievement are often

wealthy, their wealth comes from their ability to achieve
goals.

 In most societies goal achievement is rewarded financially.

 High achievers prefer to work independently, so that
successful tasks performance (or failure) can be
related to their own efforts rather than to someone
else’s.
 Eg – Kakinada Project in 1970’s.

 Researchers attempted to raise the achievement

motivation of businessmen in Kakinada.

 The businessmen made plans that would help them

realise their goals to become successful entrepreneurs
& told each other about their goals & their methods
of reaching them.
 The businessmen became more productive as
entrepreneurs, they started several large industries,
enlarged their businesses & hired more than five
thousand of their villagers.

 In a ten year reassessment of the programme,

achievement motivational levels & results were still
exceptional.
Process - Theories
 Process-Based Theories
◦ Deals with how motivation occurs
Process - Theories
 Goal Setting Theory
 Vroom’s Expectancy Theory
 Adam’s Equity Theory
 Porter’s Performance Satisfaction Model
Goal Setting Theory
 Consists of 3 elements
1) Desire in an individual to attain his or her goal.
When individuals succeed in meeting a goal, they
feel competent & successful.

2) Acceptance by individuals of job &

organisational goals as personal goals. This is the
idea of goal commitment – the extent to which
people invest themselves in meeting a goal.
3) Goal setting theory emphasizes that beliefs about self
efficiency & goal commitment influence task
performance.

Goals should be SMART

Equity Theory of Motivation
 Equity Theory
◦ Is the belief that one is being treated fairly in relation to
others; inequity is the belief that one is being treated unfairly
in relation to others.
 Social Comparisons
◦ Involves evaluating our own situation in terms of others’
situations.
 Four Step Process
◦ People in organizations form perceptions about the equity of
their treatment through a four-step process.
Forming Equity Perceptions
 Step 1: A person evaluates how he or she is being treated by
the firm.

 Step 2: The person forms a perception of how a

“comparison other” is being treated.

 Step 3: The person compares his or her own circumstances

with those of the comparison other to form an impression of
either equity or inequity.

 Step 4: On the strength of this feeling, the person may

choose to pursue one or more alternatives.
Expectancy Theory of Motivation
 The Basic Expectancy Model
◦ Suggests that people are motivated by how much they want
something and the likelihood they perceive of getting it.
 Effort-to-Performance Expectancy
◦ A person’s perception of the probability that efforts will lead to
performance.
Expectancy Theory of Motivation
(continued)
 Performance-to-Outcome Expectancy
◦ An individual’s perception of the probability that
performance will lead to certain outcomes.
 Outcomes and Valences
◦ An outcome is anything that results from performing a
particular behavior.
◦ Valence is the degree of attractiveness or unattractiveness a
particular outcome has for a person.
The Expectancy Theory of Motivation
The Porter-Lawler Model
 Since its original conception, the expectancy theory
model has been refined and extended many times.

 Although convention wisdom argues that satisfaction

leads to performance, Porter and Lawler argued the
reverse: If rewards are adequate, high levels of
performance may lead to satisfaction.
The Porter-Lawler Model (continued)
 According to the model, at the beginning of the
motivational cycle, effort is a function of the value of
the potential reward for the employee (its valence)
and the perceived effort-reward probability (an
expectancy).

 Effort then combines with abilities, traits, and role

perceptions to determine actual performance.
The Porter-Lawler Model
EXTRINSIC AND INTRINSIC REWARDS

 Extrinsic rewards—usually financial—are the

tangible rewards given employees by managers, such
as pay raises, bonuses and benefits.

 In contrast, intrinsic rewards are psychological

rewards that employees get from doing meaningful
work and performing it well.
 Extrinsic rewards remain significant for workers.

 Pay is an important consideration for most workers

in accepting a job, and unfair pay can be a strong de-
motivator.

 Day-to-day motivation is more strongly driven by

intrinsic rewards.
Communication
INTRODUCTION
Communication is the process whereby speech,
signs or actions transmit information from one
person to another. 

Communication involves transmitting
information from one party to another.
Definition:

Communication
is a 2-way
interaction
between two
parties to
transmit
information
ommunication flow in an organizati
Downward communication :

Downward
Downward communication
communication flows
flows from
from people
people at
at higher
higher
levels to those at lower levels in the organizational
levels to those at lower levels in the organizational
hierarchy.
hierarchy.  

Upward communication:

Upward
Upward communication
communication travels
travels from
from subordinates
subordinates to
to
superiors and continues up the organizational
superiors and continues up the organizational
hierarchy.
hierarchy.

Horizontal communication
: Crosswise communication includes the
horizontal flow of information, among
people on the same or similar organizational
levels, and the diagonal flow, among
persons at different levels who have no
direct reporting relationships.
Process of
communication
(Source)
Sender’s Understandin
Encoding Channel Decoding g by receiver
message

Receiving Decoding channel Encoding Response

response transmission
 Source
 First element in the process is source of
communication i.e from where the
communication originates.
 Source can be- a person or even a machine.
 The source(sender) initiates the

communication as he has some need,

thought, idea or information, that he wishes
to other person or machine.
 Encoding Message
 The next step in process is encoding the
information that has to be transmitted.
 Encoding of the thoughts produces a message

which can be either verbal or non-verbal.

 Verbal messages are in the form of words and

language.
 Non-verbal would be in the form of body

gestures like wink, smile, wave of hand etc..

 Channel
• The next element in the process of
communication is the channel through which
the communication is transmitted.
• In organizations the channels could be-face to
face conversation, written memos , reports ,
telephonic exchanges, meetings etc….
• Other channels can be letters, magazines, tv
shows, radio etc.
• For communication to be effective the
channel used should be appropriate.
 Decoding
• Decoding and understanding the message constitute
the last two elements in the process of
communication from sender to receiver.
• The receiver first receives the message and decodes
it ,interprets and translates it into thoughts,
understanding and desired response.
• A successful communication occurs when the
receiver decodes the message and attaches the
meaning to it which the sender wished to transmit.
 Feedback
 Response and feedback complete the
two-way process of communication.
 Only through feedback the sender comes

to know whether the message has been

received correctly or not.
ignificance of Communication
• Organizations are totally reliant
on communication.
• Without communication, organizations would
not function.
• If communication is diminished or hampered,
the entire organization suffers.
• When communication is thorough, accurate,
and timely, the organization tends to be vibrant
and effective.
• Communication is central to the entire
 Contd…
 Communication is a linking process of
management.

 Communication is the primary means by which

people obtain and exchange information. 
 Contd…
 The most time-consuming activity a manager engages in is
communication. 

 Information and communication represent power in

organizations.
 
 Communication enhances coordination and co-operation.
Barriers of effective communication
A)Semantic Barriers- Most of the difficulties in
communication arise because the same word or symbol
means different things to different individuals.
 Same words are interpret in different ways.

B) Psychological barriers- These are the prime barriers

in inter-personal communication.
 The meaning of the message depends upon the

emotional or psychological status of both the parties.

 Contd…
C) Organizational Barriers- The structure of the
organization itself acts as a barrier against the free flow
of communication between employees and levels in the
org.
 When the information is channeled through levels of

organisation, it become altered as people interpreted

facts differently.
 Contd..
D) Emotions - How the receiver feels at the time of
receipt of communication message will influence how
he or she interprets it.
 The same message received when you are angry is

likely to be interpreted differently when you are in a

neutral disposition.
E) Language
CASE
 Niharika is a young 23 year old MBA who recently
shifted from her native New Delhi to Hyderabad as
she got an excellent job with a major IT company.
This was the first time she was staying away from her
family. Initially she was very excited about her first job
& also about her stay in Hyderabad. Slowly, she
started facing lot of difficulties. The major issue was
the language. Though people knew English but
understanding the accent was difficult for her. Also, at
her workplace she noticed that she was very
unfamiliar to lot of technical terms due to which she
was very frustrated.

Q 1 Explain the problem in the case

Q2 If you were in Niharika’s place what would you do ?
COORDINATION
 COORDINATION
 According to Henry Fayol “ to co-ordinate is
to harmonize all the activities of a concern so
as to facilitate its working and its success”
INTRODUCTION TO
COORDINATION
 Meaning:
1. the act or state of
coordinating or of
being coordinated.
2. proper order or
relationship.
3. harmonious
combination or
interaction, as of
functions or parts.
WHY COORDINATION?
"Coordination" Must
Exist or There's No
Organization --
Only an
"Experience"
PRINCIPLES OF COORDINATION

1) DIRECT PERSONAL CONTACT

 Coordination is best achieved through direct
personal contact with people. Direct face to face
communication is most effective.
2) EARLY BEGINNING
 Coordination can be achieved more easily in early

stages of planning and policy making.

 Plans should be based on mutual participation. Early

coordination also improves the quality of plans.

3) RECIPROCITY
 It states that all factors in a given situation are

interdependent and interrelated.

 When People appreciate reciprocity of relations,

they avoid unilateral action and coordination

becomes easier.
4) CONTINUITY
 It is an on-going or never ending process. Sound

coordination resolves conflicts as it arises.

 NATURE AND CHARACTERISTIC OF CO-ORDINATION

 Co-ordination is not a distinct function but the

very essence of management.
 It is the basic responsibility of management.
 Co-ordination does not arise spontaneously or by
force.
 It is a continuous process.
 It is the responsibility of each and every employee.
NEED AND IMPORTANCE OF COORDINATION

EFFECIENCY AND EFFECTIVENESS

 Coordination helps to improve the efficiency of

operations by avoiding overlapping efforts and

duplication of work. Quality of coordination
determines the effectiveness of organized efforts.

UNITY OF DIRECTION
 Coordination helps to ensure unity of action in the

face of disruptive forces. It helps to avoid conflicts

HUMAN RELATION
 Coordination helps to improve team spirit and

morale of employees. In a well coordinated

organization, organizational goals and personal
goals of people are reconciled.

ESSENCE OF MANAGEMENT
 Coordination is all inclusive concept and the end

result of management process.

 Coordination helps in the accomplishment of

organizational goals.
TECHNIQUES OF
COORDINATION
SOUND PLANNING
 Planning is the ideal stage for coordination. Clear

cut objectives, harmonized policies and unified

procedures and rules ensure uniformity of action.
SIMPLIFIED ORGANISATION
 A simple and sound organization is an important

means of coordination.
 Clear cut authority relationships help to reduce

conflicts and to hold people responsible.

Coordination by committees……
 Committee is a body of persons entrusted with
discharge of some functions collectively as a group.
it is significant in achieving horizontal
coordination. committee ensures that problems
which arises out of relationships among various
units can be solved by group decisions.
Self Coordination……….
 Modification of functioning of department in
such a way that each department coordinates
with other departments. it can be done by
horizontal communication.
EFFECTIVE COMMUNICATION
 Open and regular communication is the key to

coordination.
 Effective interchange of opinions and information

helps in resolving difference and in creation mutual

understanding.

EFFECTIVE LEADERSHIP AND SUPERVISION

 Effective leadership ensures coordination both at the

planning and the execution stage.

CHAIN OF COMMAND
 Authority is the supreme coordinating power in an

organization.
 Exercise of authority through the chain of

command or hierarchy is the traditional means of

coordination.
Barriers to coordination
1. Competition for resources
3. Disagreement on objectives
4. Differing expectations of coordination
5. Lack of trust
6. Cost/benefit perceived as unsatisfactory
8. Rapid staff turnover (replacing an employee with
a new employee)
9. Poor transition preparations (the process or a
period of changing from one state or condition to
another)
Decision Making
Understanding Decision Making

◦ The process of developing and analyzing

alternatives and choosing from among
them.

78
Types of Decisions
 Programmed Decision
◦ A decision that is repetitive and routine
and can be made by using a definite,
systematic procedure.

 Nonprogrammed Decision
◦ A decision that is unique and novel.

 The Principle of Exception

◦ “Only bring exceptions to the way things
should be to the manager’s attention.
Handle routine matters yourself.”

79
Decision-Making Models
 The Classical Approach
◦ Have complete or “perfect” information about the
situation.
◦ Distinguish perfectly between the problem and its
symptoms.
◦ Identify all criteria and accurately weigh all the criteria
according to preferences.
◦ Know all alternatives and can assess each one against
each criterion.
◦ Accurately calculate and choose the alternative with the
highest perceived value.
◦ Make an “optimal” choice without being confused by
“irrational” thought processes.

80
Decision-Making Models (cont’d)
 The Administrative Approach
◦ Bounded Rationality (Herbert Simon)
 The boundaries on rational decision making
imposed by one’s values, abilities, and limited
capacity for processing information.
◦ Satisfice
 To stop the decision-making process when
satisfactory alternatives are found

81
The Decision-Making Process

 Define the problem.

 Clarify your objectives.
 Identify alternatives.
 Analyze the consequences.
 Make a choice.

G.Dessler, 2003

LIS580- Spring 2006 April 4, 2006 82

Step 1. Define the Problem
1. Start by writing down your initial assessment
of the problem.
2. Dissect the problem.

83
Step 2. Clarify Your Objectives
1. Write down all the concerns you hope
to address through your decision.
2. Convert your concerns into specific,
concrete objectives.
3. Clarify what you mean by each
objective.

84
Step 3. Identify Alternatives
1. Generate as many alternatives as you can
yourself.
2. Expand your search, by checking with other
people, including experts.

85
Step 4. Analyze the Consequences

1. Mentally put yourself into the future.

◦ Process Analysis
 Solving problems by thinking through the process
involved from beginning to end, imagining, at each
step, what actually would happen.
2. Organize your remaining alternatives
into a table (matrix) that provides a
concise, bird's-eye view of the
consequences of pursuing each
alternative.

86
Step 5. Make a Choice
 Analysis is useless unless the right choice is
made.
◦ Under perfect conditions, simply review the
consequences of each alternative, and choose the
alternative that maximizes benefits.
◦ In practice, making a decision—even a relatively
simple one like choosing a computer—usually can’t
be done so accurately

87
How To Make Better Decisions
1. Increase Your Knowledge
◦ Ask questions.
◦ Get experience.
◦ Use consultants.
◦ Do your research.
◦ Force yourself to recognize the facts when you
see them (maintain your objectivity).

88
How To Make Better Decisions
(cont’d)
2. Weigh the Pros and Cons

3. Remember that few decisions are forever.

◦ Knowing when to quit is sometimes the
smartest thing a manager can do.

89
Creativity and Decision Making
 Creativity
◦ The process of developing
original, novel responses to Expertise
Creativity
skills
a problem.
 Brainstorming Creativity
◦ A creativity-stimulating
technique in which prior
judgments and criticisms
are specifically forbidden
from being expressed in
order to encourage the free Task motivation
flow of ideas which are
encouraged.
 Nominal group technique
◦ A decision-making
technique in which group
members are physically
present but operate
independently

90
Nominal Group Technique
 Each participant contributes individual ideas
 Ideas are then ranked individually
 Totals are summed for final rank

91
How to be More Creative

 Create a culture of creativity.

 Encourage brainstorming.
 Get more points of view.
 Provide physical support for
creativity.
 Encourage anonymous input.

92
Six C's of Decision Making (1 of
3)

 1. Construct.
 2. Compile.
 3. Collect.
 4. Compare.
 5. Consider.
 6. Commit.
Six C's of Decision Making (2 of
3)
 Construct a clear picture of
precisely what must be decided.

 Compile a list of requirements that

must be met.

 Collect information on alternatives

that meet the requirements.
Six C's of Decision Making (3 of
3)
 Compare alternatives that meet
the requirements.

 Consider the "what might go

wrong" factor with each
alternative.

 Commit to a decision and follow

through with it.
DIRECTING
Introduction
 Directing/Direction is a function of management
performed by top level management in order to
achieve organizational goals.

 It is very important and necessary function of

management.

 Management has to undertake various activities

like, guide people, inspire and lead them as well
as supervision of their activity is required in
order to achieve desired results.
Meaning and Definition
 Direction consists of the process and
techniques utilized in issuing instructions
and making certain that operations are
carried as originally planned.
Directing involves…..
 Telling people what is to be done and
explaining how to do it.
 Issuing instructions and orders to

subordinates.
 Inspiring them to contribute towards the

achievement of objectives,
 Supervising their activities
ELEMENTS OF DIRECTION

 Communication
 Leading
 Motivation
 Supervision
 Coordination
COMMUNICATION
Communication Is…

 - Complex and multifaceted phenomenon.

It is the process by which verbal and non-
verbal symbols are sent, received and given
meaning.

 “Communication” word has been derived

from Latin word “Communis” which means
common, thus communication stands for
sharing of an idea in common.
 “Communication is an exchange of facts,
ideas, opinions or emotions by two or more
persons” – Newman and Summer

 “It is a sum of all the things one person does

when he wants to create understanding in the
minds of another. It is a bridge of meaning, it
involve systematic telling, listening, and
understanding” – Haimann
Most Common Way to Communicate

Speaking Writing

Body Visual
language images
ELEMENTS OF COMMUNICATION

People - minimum is 2; one will act as the

sender and the other the receiver

Message – the content or the substance of

what is being communicated, could be an
idea, feeling, instruction, fact or opinion

Channel – the medium and the manner by

which the message is conveyed ; could be
verbal or non-verbal
Feedback – the reaction of the receiver to the
message as conveyed through a particular
channel; measures the effectiveness of the
communication

Noise – anything that distorts the message

conveyed
Effective Methods of Communication
Electronics
These are highly effective means of
quickly reaching those with whom you
are communicating

Interaction and participation are

possible and often simple – for all
involved parties
Their ease of use means that they pose a
possible risk of communications overload

The seemingly endless possible combinations

of words, images and colour are very powerful
Meetings
If used properly; meetings can build relationships
and mutual trust

Meetings enable instant feedback

Meetings facilitate mutual understanding

Reponses can often be gauged through eye contact

Preparation, planning and openness are required

Noticeboards
Can be either official information givers, or for
general use by employees

Provide a central location in which to make

information accessible to all employees.

There is no real possibility of interactive

response, and employees may feel uninvolved.
Telephone
The telephone is not suitable for lengthy or
complicated discussions

The lack of physical presence may lessen the

speaker’s understanding of each other
TO ATTAIN EFFECTIVE
MANAGERIAL
COMMUNICATION
 Humanize – understand, appreciate and
elevate the importance of humans above
other concerns

 Harmonize – establish a climate of

cooperation, trust, helpfulness, confidence,
belongingness and openness

 Habitualize – put into a habit such positive

practices
 Institutionalize – put into practice good
communication habits at the individual level until
these practices are introduced to the company or
organization as standard operating procedure

 Acclimatize – adjust, be flexible and extra tolerant

 Modernize – learn the modern ways of

communicating

 Symbolize – if words will not do, use symbols

 Empathize – to understand intimately the
other people’s feelings ,thoughts, motives
and aspirations

 Minimize – Keep It short!!!!

INFORMAL COMMUNICATION
IN THE ORGANIZATION
 The Grapevine is an informal channel of
business communication. It is called so
because it stretches throughout the
organization in all directions irrespective
of the authority levels.
a. Grapevine Networks
Gossip chain – happens when one person
passes informal communication to all others
in the informal organization
Probability chain – people randomly pass
information to the other members of the
organization

Cluster chain – people pass information to

other members of the informal organization
selectively
b. Grapevine Activity.
People tend to engage in grapevine when:

When people lack information

When there is insecurity in a situation

When people have personal interest in

the situation

When they have new information

Leadership
DEFINITION & NATURE
 It is the process of encouraging & helping
others to work enthusiastically towards
objectives.
 It can also be defined as the relationship in

which one person (the leader) influences

others to work together willingly on related
tasks to attain goals desired by the leader
and/or group.
 Change of behaviour is caused with an
objective of achieving a shared goal.

 The person influencing others possesses a

set of qualities or characteristics which he or
she uses to influence others.
Significance OF
LEADERSHIP
FORMAL & INFORMAL LEADERSHIP
 Formal leadership occurs when a manager
leads by exercising formal authority.
 Any employee who is assigned a managerial

position has the opportunity & responsibility

to exercise formal leadership in relation to
subordinates.
 Informal leadership arises when a person
without formal authority is influential in
directing the behaviour of others.
 Although not formally appointed or elected,

he becomes a leader through his actions or

personal attractions.
LEADERSHIP STYLES
 The behaviour the leader exhibits during supervision
of subordinates is known as leadership style.
 It is divided into 4 types –

a) Styles based on the amount of authority retained by

the leader.
b) Styles based on the relative emphasis placed on the
task to be performed versus that placed on people.
c) Styles based on the assumptions about people made
by the leader.
Likert’s 4 styles
Entrepreneurial Leadership Style
Styles based on authority retained
 Autocratic (Authoritarian)
 Manager retains power
 Manager is decision-making authority
 Manager does not consult employees for
inputs
 Subordinates expected to obey orders
without explanations
 When to use Autocratic

 New, untrained employees

 Employees do not respond to any other

 leadership style
 High-volume production required
 Limited time for decision making
 Manager’s power is challenged by an

employee
PARTICIPATIVE STYLE
a) Consultative leaders - Solicit opinions from
group before making a decision. These leaders
make it clear that they alone have final
authority to make final decisions.
b) Consensual leaders – Encourage group
discussion on an issue & then make a decision
that reflects the general agreement
(consensus) of group members. Leads to
considerable delay in decision making because
every member has to give his/her consent.
C ) Democratic leaders They function as
collectors of opinion & take a vote before
making a decision.
Free rein style
 Also called Laissez – faire
 It works when the group is composed of

highly committed members.

 STYLES BASED ON TASK
VERSUS PEOPLE EMPHASIS
 Styles based on
assumptions about people
LIKERT’S 4 STYLES
 Exploitative authoritarian - Leader uses
sanctions, communication is downward,
superiors & subordinates are psychologically
distant, & the decisions are generally made at
the top of the organisation.
 Benevolent authoritarian – Leader uses

rewards to encourage performance, upward

communication is permitted but to the extent
the boss wants. Major decisions are made by
the people at the top of the hierarchy.
 Consultative – Leader uses reward,
subordinates are involved in decision making
in a limited way.
 Participative – Subordinates & superiors are

psychologically close, group decision making

is widespread in the organisation. There is a
tendency among a number of individuals to
belong to more than one work group in order
to promote inter- group links &
understanding.
Entrepreneurship
leadership style
 Impatience towards employees because the
entrepreneur is always busy.
 A charismatic personality that inspires others

to want to do business with him or her

despite the impatience.
 A much stronger interest in dealing with

customers than employees.

THEORIES OF LEADERSHIP
TRAIT APPROACH
 Trait theories of leadership focus on the
individual characteristics of successful
leaders.
 According to the theories, leaders possess a

set of traits which make them distinct from

followers.
 Ralph Stogdill, surveyed more than 5,000
leadership studies & concluded that successful
leaders tend to have the following qualities –
 A strong desire for accomplishment
 Persistent pursuit of goals
 Creativity & Intelligence used to solve problems.
 Initiative applied to social situations
 Willingness to accept behavioural consequences.
 Low susceptibility to interpersonal stress
 Ability to influence other people
BEHAVIOURAL THEORIES
 Ohio State University Studies
 University of Michigan Studies
Ohio State University Studies
 Main objective was to identify the major
dimensions of leadership & to investigate the
effect of leader behaviour on employee
performance & satisfaction.
 2 leadership dimensions were identified –

a) Initiating structure which refers to leader

behaviour that defines & organises the
group tasks, assigns the tasks to employees
& supervises their activities.
b) Consideration refers to leader behaviour
that can be characterised by friendliness,
respect, supportiveness, openness, trust, &
concern for the welfare of the employees.
UNIVERSITY OF MICHIGAN STUDIES
 2 dimensions of leadership
 Production centered – leaders set rigid work
standards, organised tasks down to the last
detail, prescribe the work methods to be
followed & closely supervised subordinates
performance.
 Employee centered leaders – encouraged
employee participation in goal setting & in
other work related decisions & helped ensure
high performance by inspiring. Respect & trust.
MANAGERIAL GRID
 The managerial grid model (1964) is
a situational leadership model developed
by Robert R. Blake and Jane Mouton.

 This model originally identified five different

leadership styles based on the concern for
people and the concern for production
CONTINGENCY THEORIES
OF LEADERSHIP
PATH GOAL THEORY OF LEADERSHIP
 Developed by Robert House

 Essence of the theory is that the leader’s job

is to use structure, support & rewards to
create a work environment that helps
employees reach the organisation’s goals.

 According to the theory, the leader must

clarify goals for the subrodinates & clear the
path for realising the goals.
 The theory is called path goal because its
major concern is how the leader influences
the subordinate’s perceptions of their work
goals, personal goals & paths to goal
attainment.
 Locus of control - extent to which
individuals believe that they can control
events that affect them.
Mcgregor’s theory x &
theory y
 Theory X by McGregor had the following
assumptions –
1. Employees are inherently lazy & will avoid work
unless forced to do it.
2. Employees have no ambition or desire for
responsibility, instead they prefer to be directed
& controlled.
3. Employees have no motivation to achieve
organisational objectives.
4. Employees are only motivated by physiological
& safety needs.
 Theory Y by McGregor had the following
assumptions –
1. Employees find work as natural as play if
organisational conditions are appropriate.
People appear averse to work only because their
past work experiences have been unsatisfactory.
2. Employees can be motivated by higher order
needs such as ego, autonomy & self
actualisation.
3. Employees seek responsibility since it allows
them to satisfy higher order needs.
 Situational theory of
leadership – self study
SUPERVISION
 Supervision implies expert overseeing of
subordinates -at work in order to guide and
regulate their efforts.
Manager has to supervise the work of his

subordinates to see that they do their work as

desired.
The supervisor is in direct personal contact

with the workers and he acts as the link

between workers and management.
He communicates the policies, plans and

orders of management to the workers.

He also brings worker’s grievances,

suggestions and appeals to the notice of

management.
Allwork requires the coordination of effort.
But just giving instructions is not enough.
You must give clear, specific instructions on

what is to be done, monitor the worker in the

course of their efforts and hold them
accountable for specific results.
In Supervising

1. Set realistic expectations

2. Establish clear goals

3. Communicate
4. Support

5. Be the Model Manager . Lead the way! Have

others do as you say and do.
COORDINATION (already taugh
MANAGEMENT BY
OBJECTIVES
What is MBO?
 Management by objectives (MBO) is a systematic and
organized approach that allows management to focus on
achievable goals and to attain the best possible results
from available resources.

 It aims to increase organizational performance by

aligning goals and subordinate objectives throughout the
organization.

 Management by Objectives (MBO) was first outlined by

Peter Drucker in 1954 in his book 'The Practice of
Management'.
Core Concepts of MBO
 According to Drucker managers should "avoid
the activity trap", getting so involved in their
day to day activities that they forget their
main purpose or objective.


Instead of just a few Top-managers, all
managers should:


participate in the strategic planning process,
in order to improve the implementability of
the plan
Managerial Focus
 MBO managers focus on the result

 Management by Objectives (MBO) is about

setting yourself objectives and then breaking
these down into more specific goals or key
results.
The Five-Step MBO Process
Types of Objectives

 Routine objectives

Innovation objectives

Improvement objectives
 The objectives must be:
 focused on the result
 specific
 measurable
 related to time
 attainable
 Six MBO Stages

 Define corporate objectives at board level

 Analyze management tasks and devise formal job
specifications, which allocate responsibilities and
decisions to individual managers
 Set performance standards
 Agree and set specific objectives
 Align individual targets with corporate objectives
 monitor achievements against objectives
MBO Advantages & Disadvantages
 Advantages
 MBO programs continually emphasize what should
be done in an organization to achieve
organizational goals.
 MBO process secures employee commitment to
attaining organizational goals.
 Disadvantages
 The development of objectives can be time
consuming, leaving both managers and employees
less time in which to do their actual work.
 The elaborate written goals, careful
communication of goals, and detailed
performance evaluation required in an MBO
program increase the volume of paperwork in an
organization.
MBO – RELEVANCE