Leadership

Leadership is influencing people to follow you & to work willingly for the achievement of common goals. Leadership is the ability to secure desirable actions from the group of followers voluntarily, without the use of coercion. Principles of Leadership Principle of Harmony The principle of Motivation The principle of supplemental use of informal organization. The manager should make proper communication with his subordinates. The principle of maximum clarity in the communication The principle of leadership Manager need to act as effective leader.

Different Styles of leadership Autocratic Style Decisions are taken by leader Authority & Power with leader No participation by subordinates in decision making Gives orders & assign tasks without taking subordinates into confidence. Subordinates dislikes this type of leadership

Advantages Provides strong motivation & rewards for the leader No delay in the decision making process Responsibility can be easily fixed Disadvantages Creates low moral & less confidence in subordinates Ideas of subordinates are not utilized No opportunity for subordinates to develop Less desirable style Applicable only if subordinates are uneducated, unskilled, lack of knowledge & experience.

Demographic Style of leadership Participative leadership Allow active participation of subordinates in decision making The leaders follow majority opinions Friendly relationship between leader & subordinates Creates positive impact on subordinates Helps to increase productivity Advantages Creates job satisfaction & increase the moral of subordinates Develops positive attitude Disadvantages Time consuming & delay in decision making Requires more communication between superior & subordinates In case of incompetent leader , problems are created More effective style than autocratic leadership

3. Free Rain Style of Leadership Leader leaves all the control & decisions with subordinates Leader leaves all responsibility & most of the work of him to the group. Subordinates have maximum freedom at work Advantages Maximum development of subordinates Full utilization of capacity of subordinates Creates job satisfaction & increases moral of subordinates This style produces better & quick results when the subordinates are highly educated & brilliant. Disadvantages Subordinates do not get guidance of leader Major risk is involved

Autocratic
Task oriented style
Obedience in order & instruction Strict supervision & no delegation Leader is decision maker

Participative
People oriented
Interchange of ideas Delegation of authority Leader makes decision with the help of ideas of subordinates Two way communication

Free Rain
People oriented style
Self discipline & control Complete delegation of authority Subordinates themselves make decisions Free flow of communication Self direction & self control

One way downward communication Motivation technique is fear & punishment

Reward & involvement

No opportunity for subordinates This is I style

This is WE style

Complete creativity It is YOU style leadership.

Leadership Theories 1.Trait Theory of Leadership Traditional theory of leadership Leader is a person having leaders special characteristics & trait. Following qualities must be possessed by leader Physical factors ( Physical fitness) Height , Weight, energy, well appearance etc Good personality Intelligence Self confidence Will Dominance Cheerful Enthusiasm Alertness Courage Persuasion Decision making ability

 Physical traits : Good personality Achievement drive : Highly ambitious, Hard efforts, Energetic, Persistence Desire to lead : Strong desire to lead Honesty and integrity: Transparency , reliable , Trustworthy Self-confidence: Self belief Intelligence : Strong analytical skill, decision making skill, problem solving skill etc Knowledge : Knowledge of the business, industry, business environment Sociability : Cordial, Openness, Caring , Cooperative

He theory stresses inborn qualities of an individual These qualities are inherited rather than acquired No room for developing future leaders The inborn qualities of an individual can not be developed or acquired. No common or universal traits Unique or distinct qualities Trait of individual can not be known unless the situation arises When individual faces problem then only presence or absence of trait is required , otherwise traits remain unknown. Different roles required different traits Middle level manager human relations skill Top level manager Decision making skill

Situational Theory of leadership Leaders are not just born but can be developed with the help of proper training & development programs Effective leader understands the fact of situation & deals with them effectively Situation oriented approach The same leader may display different personality traits to deal with diverse problems Emphasis on situational aspect & overlooks the qualities needed in a successful leader. Qualities of leader overlooked

Behavioral Theory of Leadership

Leaders can be made, rather than are born. Way to study leadership is not to study the trait or qualities he possesses but to study his behavior. It is important to study the behavior of a leader in a particular situation. Concern with behavior of a person rather than qualities of leadership. The people by nature are lazy, uncreative, irresponsible etc. So the leader must be directive More time is spent in planning, employee oriented rather than production oriented , greater degree of delegation etc for effective leadership Behavioral theories focus on how leaders behave. For instance, do leaders dictate what needs to be done and expect cooperation? Or do they involve their teams in decisionmaking to encourage acceptance and support?

 The behavioral theories suggest leadership behavior from the aspects of A. Motivation B. Authority C. Supervision A. Motivational aspect This type of leadership behavior is positive or negative. In the positive behavior of leader, the focus is on monetary & non monetary rewards in order to motivate the employees. In the negative behavior of the leader, the focus is on punishments. Here the employees have fear of unpleasant action against them in the situation of poor performance.

B. Authority 1. Autocratic Leadership: 2. Democratic Leadership 3. Laissez-faire or Free Rein style of leadership C. Supervision Employee oriented Leaders focus on the interpersonal relationship. Leader takes care of the employee needs. Production oriented Leaders have major focus on the achievement of the tasks than the employees welfare. He considers the team members as a means to achieve the goals.

TQM People focused management system that aims at continual increased in customer satisfaction at continually lower cost. Focus on Customer expectations Preventing problems Building commitments to quality in workforce Promoting open decision making

Advantages of TQM Enables company to cope up with competition Ensures customer satisfaction high quality products competitive prices Increases the company reputation Reduces customer complaints Facilitates expansion & diversification of company Employee delegation & participation Increases moral of the workers Highly motivated workers High profitability of the company

Limitations of TQM
Difficult to implement due to conservative attitude of management TQM involves participative management . But trade unions may be acting as barrier for this. Slow process & benefits can be enjoyed in long run only. But impatience on the part of managers & workers can destroy its very purpose. Difficult to expect team work & total commitment to quality from the employees all the time. Success of TQM depends on Training. As it improves the knowledge & skills of the workers. Teaches workers about how to reduce wastage, time & cost in production. But many organizations in India are lacking in providing proper training inputs to its workers.

ABC Analysis ( Always Better Control) Method of material control according to value High value items are more closely controlled than lower value items. A class items : Small percentage of total items but having higher value B class items: More percentage of total items but having medium values C class items : High percentage of total items but having low values.

Management Audit

An attempt to evaluate the performance of various management functions with a view to improve its efficiency & productivity on the basis of certain pre determined acceptable norms or standards . It is an audit.
Scope of Management Audit

Review of org. structure, office operations, management control systems, marketing manufacturing, purchasing functions etc

Management of Change Organizational change wrt Changing nature of work place (Training , computer skills, Forces of professionals etc) Technology Growth of IT Change in competition ( Global) Economic changes ( Interest rates ) Social trends ( Change in habit i.e. ( Fast Food)

Types of dimension of change Changes regarding work ( Working time, Change in machinery, method of work, Technical changes etc) Change regarding organization Changes due to transfer, promotion etc Change in knowledge ,Information & technology Change in Environment ( Business Enviornment ) Change in Management etc

Reasons for resistance to change Fear of loosing jobs due to new technology Fear of increase in workload & no increase in remuneration Senior employees may dislike to undergo training for the new process , systems etc Some changes suggested by labor unions or govt. are not favorable to an org. & hence opposed by management Remedies to overcome resistance to change Clear communication with employees by taking them into confidence Changes should not be forced suddenly Management should ensure no economic loss, no loss in status & personal dignity of employees. Results of the change should be reviewed periodically & do necessary modifications Motivating the employees by positive counselling.

Business Ethics Application of ethics in business Business ethics is plain, everyday honesty Ethics are about what is right and what is wrong Ethical issues for business Product safety standards Advertising contents (Avoid exaggerated & misleading ads) Working environment Unauthorized payments Employees privacy Environmental issues etc

Scope of Business Ethics 1.Society 2.Stakeholders

(Shareholders, Customers, Suppliers , Bankers etc)

3.Internal Policy ( Good working conditions, employee management relationships, safety provisions for the workers etc 4.Individuals Guidelines to treat one another in org. Individual's duty towards company , superior, subordinates & colleagues.

Event Management Special events are the phenomenon arising from those non routine occasions which have leisure , cultural, personal & organizational objectives . Set apart from the normal activity of daily life. To enlighten, celebrate, entertain, or change the experience of a group of people. Organizational Events : Commercial, Charitable , Sales Leisure events : Sports, Recreation, Leisure Cultural Events : Heritage , Art Personal events : Wedding, Birthday, Anniversaries etc

Importance of EM Saves the time & labor of the host Modern approach to management. Which is very beneficial to create better impact. Self employment opportunities

Disaster is defined as a crisis situation causing wide spread damage which far exceeds our ability to recover. Disaster is the occurrence of a sudden or major misfortune, which disrupts the basic fabric, and normal functioning of a society. Types of Disaster Natural calamities : Storms, floods, earthquakes, tsunami etc Man made disasters : Act of terror, accidents in industries, Motor accidents, chemical leak, war etc Effects of disaster Loss of human lives Destruction of buildings, infrastructure, industries Loss of production

 a collective term encompassing all aspects of planning for and responding to disasters, including both pre and post disaster activities. It may refer to the management of both the risks and consequences of disasters Disaster management is an organized & systematic effort to tackle the situation or condition effectively after any disaster has happened.

Importance of DM To prevent loss of human lives , implementation of DM plan is very important. To prevent the destruction of property To reduce the extent of damage/losses caused by disaster To prepare the countrys organizational & administrative machinery for facing the disaster.