HSS Merged Till Mid2

HSS (industrial Economics)
Unit -1:
➔ Introduction and nature of scope
➔ Evolution of management
➔ Approaches to management.
What is the management?

The word management refers to all the tasks and activities undertaken by the people in an
organization for the successful achievement of goals and targets. It involves continuous
activities such as planning, organizing, leading and monitoring physical, financial and
information resources. Any organization’s success depends on the strength of those in
management positions.
The term management is flexible and has been used in various ways. While it refers to
organizational activities, it also denotes a body of knowledge or discipline. Some describe it
as a means of leadership while others view it as an economic resource. To understand the
meaning and nature of management, let’s look at the concept from a broader perspective.
Here are various categories that describe management in multiple contexts.
1.Management As A Process
As a process, management aims at increasing productivity and efficiency in an
organization. The purpose is to strengthen the client base, improve the knowledge,
skills and capacity of employees to achieve particular targets and goals. Management is
also a never-ending process that brings different teams and individuals together.
Everyone works in harmony to achieve common objectives.
2. Management As An Activity
As an activity, management looks at the daily tasks and accomplishments of an

employee. It helps them prioritize activities and monitor progress, which further helps
them grow in their roles. It prevents miscommunication and task repetition as everyone
is aware of their roles and responsibilities. There is clarity and accountability—the
cornerstones of business growth and success.
3.Management As A Profession
Management as a profession has been popularized by courses and academic institutions
across the globe. Several organizations prefer individuals with a Master of Business
Administration (MBA) degree. Specialized knowledge (such as an MBA degree)
provides an individual with a competitive edge, making them more desirable for
managerial roles. Therefore, management has evolved as a body of knowledge that
continues to solve various workplace problems.
What Is The Nature And Scope Of Management?
As we’ve already established, different people view management differently. Therefore,

defining the nature and scope of management becomes quite challenging. Let’s look at each
of these terms independently and see how they play out in the context of management.
Nature Of Management
Management—as a systematic process—helps identify a group of people who carry out
particular activities, thereby improving an organization’s efficiency and effectiveness. Here
are the salient features that highlight the nature of management in businesses.
1. Universality
Management is a universal process and is essential for all organizations. If there is
human activity, there is management. The principles of management are applicable
irrespective of the size and location of a business. The universal principle also means
that managerial skills can be developed over time and they’re transferrable.
2. Social Process
The nature of management involves organizing people in groups and managing them.
It requires different levels of empathy, understanding and dynamism. In addition to
taking care of social and emotional well-being, the process involves developing,
motivating and retaining employees.
3. Purposeful
Management always has an end goal of achieving an organization’s targets, mission
and vision. The success of management can be measured by the extent to which an
organization achieves its objectives. There is an underlying purpose of increasing
efficiency and productivity. The objectives should be realistic, attainable and time-
bound.
4. Intangible
There is no physical proof of the management process. Its success can be measured by
the outcomes of its efforts. For example, lower turnover rates indicate there’s high
employee engagement and job satisfaction. This further shows that managers or
individuals in managerial roles have taken proactive steps toward improving employee
retention.
5. Coordination
Management coordinates all the functions of an organization by bringing together
different teams and departments. Without coordination, there would be ambiguity and
chaos. Therefore, by getting people on the same page, there is communication and
minimized duplication of efforts.
6. Creativity
Management is made up of individual components and is a composite process. Every
independent component contributes in unique ways. For example, group efforts
encourage creative ideas and imagination. The sum of individual efforts creates
synergy and something new is born.
7. Dynamic Function
Management should be dynamic at its core because businesses are often influenced by
economic, social, political and technological factors. With room for flexibility and
adaptability, individuals can perform well even in stressful situations. There should be
adequate training and facilitation within the process.
Scope Of Management:
Clearly defined responsibilities, concepts, theories and principles related to managerial

functions define the scope of management. Let’s look at the various aspects of this.
1>Financial Management:
Every enterprise prioritizes financial management because finances can get extremely tricky
if not managed properly. Effective financial management ensures there are fair returns to
stakeholders, proper estimation of capital requirements and laying down optimal capital. It
includes preparation and examination of financial statements, creating proper dividend
policies and negotiations with external stakeholders.
2>Marketing Management
The scope of management in marketing extends to planning, organizing, directing and

controlling activities in the marketing department. Identifying customer requirements is
crucial for providing business solutions. When a manager is fully aware of the benefits of the
products and/or services the organization provides, they achieve better results. Marketing
management ensures that available resources are properly utilized and the best possible
outcomes are achieved.
3>Personnel Management
Personnel management—as the name suggests—deals with personnel or individuals in a

business environment. It includes the recruitment, transfer, termination, welfare and social
security of employees. This aspect of management is extremely important as employees form
teams and teams drive an organization’s goals. Individual productivity also contributes to
overall efficiency. Without attending to employee needs and wants, an organization is likely
to struggle.
4>Production Management
This type of management refers to the process of creating utilities. When you convert raw
materials to finished products and oversee the planning and regulation, you’re engaging in
production management. Without production, there isn’t any finished good or service and
without it, organizations can’t generate interest or profits. The final product must fulfil
customer requirements. The process includes quality control, research and development, plan
layout and simplification.
5.>Office Management
This includes controlling and coordinating all office activities to achieve an organization’s
goals and targets. For example, an administration’s efficiency impacts a business
significantly. The more organized the departments and responsibilities are, the more
effective an organization is.
Evolution of Management :
The practice of management is as old as human civilization. The ancient civilizations of
Egypt (the great pyramids), Greece (leadership and war tactics of Alexander the great) and
Rome displayed the marvellous results of good management practices.
The origin of management as a discipline was developed in the late 19 century. Over time,
management thinkers have sought ways to organize and classify the voluminous information
about management that has been collected and disseminated. These attempts at classification
have resulted in the identification of management approaches. The approaches of
management are theoretical frameworks for the study of management. Each of the
approaches of management are based on somewhat different assumptions about human
beings and the organizations for which they work.
The different approaches of management are

A) Classical approach,
B) Behavioral approach,
C) Quantitative approach,
D) Systems approach,
E) Contingency approach.
The formal study of management is largely a twentieth-century phenomenon, and to some
degree the relatively large number of management approaches reflects a lack of consensus
among management scholars about basic questions of theory and practice.
A) THE CLASSICAL APPROACH:
The classical approach is the oldest formal approach of management thought. Its roots pre-
date the twentieth century. The classical approach of thought generally concerns ways to
manage work and organizations more efficiently. Three areas of study that can be grouped
under the classical approach are scientific management, administrative management, and
bureaucratic management.
1.Scientific Management
Frederick Winslow Taylor is known as the father of scientific management. Scientific
management (also called Taylorism or the Taylor system) is a theory of management that
analyzes and synthesizes workflows, with the objective of improving labor productivity. In
other words, Traditional rules of thumb are replaced by precise procedures developed after
careful study of an individual at work.
2. Administrative Management
Administrative management focuses on the management process and principles of
management. In contrast to scientific management, which deals largely with jobs and work at
the individual level of analysis, administrative management provides a more general theory
of management. Henri Fayol is the major contributor to this approach of management
thought.
3. Bureaucratic Management
Bureaucratic management focuses on the ideal form of organization. Max Weber was the
major contributor to bureaucratic management. Based on observation, Weber concluded that
many early organizations were inefficiently managed, with decisions based on personal
relationships and loyalty. He proposed that a form of organization, called a bureaucracy,
characterized by division of labor, hierarchy, formalized rules, impersonality, and the
selection and promotion of employees based on ability, would lead to more efficient
management. Weber also contended that managers’ authority in an organization should be
based not on tradition or charisma but on the position held by managers in the organizational
hierarchy.
B) THE BEHAVIORAL APPROACH

The behavioral approach of management thought developed, in part, because of perceived
weaknesses in the assumptions of the classical approach. The classical approach emphasized
efficiency, process, and principles. Some felt that this emphasis disregarded important
aspects of organizational life, particularly as it related to human behavior. Thus, the
behavioral approach focused on trying to understand the factors that affect human behavior
at work.
1.Human Relations.
The Hawthorne Experiments began in 1924 and continued through the early 1930s. A
variety of researchers participated in the studies, including Elton Mayo. One of the major
conclusions of the Hawthorne studies was that workers’ attitudes are associated with
productivity. Another was that the workplace is a social system and informal group influence
could exert a powerful effect on individual behavior. Athird was that the style of supervision
is an important factor in increasing workers’ job satisfaction.
2.Behavioral Science
Behavioral science and the study of organizational behavior emerged in the 1950s and 1960s.
The behavioral science approach was a natural progression of the human relations
movement. It focused on applying conceptual and analytical tools to the problem of
understanding and predicting behavior in the workplace.
The behavioral science approach has contributed to the study of management through its
focus on personality, attitudes, values, motivation, group behavior, leadership,
communication, and conflict, among other issues.
C). THE QUANTITATIVE APPROACH:

The quantitative approach focuses on improving decision making via the application of
quantitative techniques. Its roots can be traced back to scientific management.
1.Management Science (Operations Research)
Management science (also called operations research) uses mathematical and statistical
approaches to solve management problems. It developed during World War II as strategists
tried to apply scientific knowledge and methods to the complex problems of war. Industry
began to apply management science after the war. The advent of the computer made many
management science tools and concepts more practical for industry.
2.Production And Operations Management
This approach focuses on the operation and control of the production process that transforms
resources into finished goods and services. It has its roots in scientific management but
became an identifiable area of management study after World War II. It uses many of the
tools of management science.
Operations management emphasizes productivity and quality of both manufacturing and
service organizations. W. Edwards Deming exerted a tremendous influence in shaping
modern ideas about improving productivity and quality. Major areas of study within
operations management include capacity planning, facilities location, facilities layout,
materials requirement planning, scheduling, purchasing and inventory control, quality
control, computer integrated manufacturing, just-in-time inventory systems, and flexible
manufacturing systems.
D) SYSTEMS APPROACH:
The simplified block diagram of the systems approach is given below.
The systems approach focuses on understanding the organization as an open system that
transforms inputs into outputs. The systems approach began to have a strong impact on
management thought in the 1960s as a way of thinking about managing techniques that
would allow managers to relate different specialties and parts of the company to one another,
as well as to external environmental factors. The systems approach focuses on the
organization as a whole, its interaction with the environment, and its need to achieve
equilibrium
E) CONTINGENCY APPROACH
The contingency approach focuses on applying management principles and processes as
dictated by the unique characteristics of each situation. It emphasizes that there is no one best
way to manage and that it depends on various situational factors, such as the external
environment, technology, organizational characteristics, characteristics of the manager, and
characteristics of the subordinates. Contingency theorists often implicitly or explicitly
criticize the classical approach for its emphasis on the universality of management
principles; however, most classical writers recognized the need to consider aspects of the
situation when applying management principles.
CONTRIBUTION OF FAYOL AND TAYLOR
F.W. Taylor and Henry Fayol are generally regarded as the founders of scientific
management and administrative management and both provided the bases for science and art
of management.
Taylor’s Scientific Management
Frederick Winslow Taylor well-known as the founder of scientific management was the first
to recognize and emphasis the need for adopting a scientific approach to the task of
managing an enterprise. He tried to diagnose the causes of low efficiency in industry and
came to the conclusion that much of waste and inefficiency is due to the lack of order and
system in the methods of management. He found that the management was usually ignorant
of the amount of work that could be done by a worker in a day as also the best method of
doing the job. As a result, it remained largely at the mercy of the workers who deliberately
shirked work. He therefore, suggested that those responsible for management should adopt a
scientific approach in their work, and make use of “scientific method” for achieving higher
efficiency. The scientific method consists essentially of
Observation
Measurement
Experimentation and
Inference.
He advocated a thorough planning of the job by the management and emphasized the
necessity of perfect understanding and co-operation between the management and the
workers both for the enlargement of profits and the use of scientific investigation and
knowledge in industrial work.
He summed up his approach in these words:
Science, not rule of thumb
Harmony, not discord
Co-operation, not individualism
Maximum output, in place of restricted output
The development of each man to his greatest efficiency and prosperity.
Elements of Scientific Management:

The techniques which Taylor regarded as its essential elements or features may be classified
as under: Scientific Task and Rate-setting, work improvement, etc.
Planning the Task.
Vocational Selection and Training
Standardization (of working conditions, material equipment etc.)
Specialization Mental Revolution.
Scientific Task and Rate-Setting (work study)

Work study may be defined as the systematic, objective and critical examination
of all the factors governing the operational efficiency of any specified activity
in order to effect improvement.
Work study includes.
Methods Study: The management should try to ensure that the plant is laid
out in the best manner and is equipped with the best tools and machinery. The
possibilities of eliminating or combining certain operations may be studied.
Motion Study: It is a study of the movement, of an operator (or even of a

machine) in performing an operation with the purpose of eliminating useless
motions.
Time Study (work measurement): The basic purpose of time study is to

determine the proper time for performing the operation. Such study may be
conducted after the motion study. Both time study and motion study help in
determining the best method of doing a job and the standard time allowed for
it.
Fatigue Study: If, a standard task is set without providing for measures to
eliminate fatigue, it may either be beyond the workers or the workers may
over strain themselves to attain it. It is necessary, therefore, to regulate the
working hours and provide for rest pauses at scientifically determined
intervals.
Rate-setting: Taylor recommended the differential piece wage system, under

which workers performing the standard task within prescribed time are paid a
much higher rate per unit than inefficient workers who are not able to come
up to the standard set.
Planning the Task: Having set the task which an average worker must
strive to perform to get wages at the higher piece- rate, necessary steps have to
be taken to plan the production thoroughly so that there is no bottlenecks and
the work goes on systematically.
Selection and Training: Scientific Management requires a radical

change in the methods and procedures of selecting workers. It is therefore
necessary to entrust the task of selection to a central personnel department.
The procedure of selection will also have to be systematised. Proper
attention has also to be devoted to the training of the workers in the correct
methods of work.
Standardization : Standardization may be introduced in respect of the

following.
Tools and equipment: By standardization is meant the process of bringing
about uniformity. The management must select and store standard tools and
implements which will be nearly the best or the best of their kind.
Speed: There is usually an optimum speed for every machine. If it is exceeded, it is

likely to result in damage to machinery.
Conditions of Work: To attain standard performance, the maintenance of

standard conditions of ventilation, heating, cooling, humidity, floor space,
safety etc., is very essential.
Materials: The efficiency of a worker depends on the quality of materials and the
method of handling materials.
Specialization: Scientific management will not be complete without

the introduction of specialization. Under this plan, the two functions of
‘planning’ and ‘doing’ are separated in the organization of the plant. The
`functional foremen’ are specialists who join their heads to give thought to
the planning of the performance of operations in the workshop. Taylor
suggested eight functional foremen under his scheme of functional
foremanship.
The Route Clerk: To lay down the sequence of operations and instruct the
workers concerned about it. The Instruction Card Clerk: To prepare detailed
instructions regarding different aspects of work.
The Time and Cost Clerk: To send all information relating to their pay to
the workers and to secure proper returns of work from them.
The Shop Disciplinarian: To deal with cases of breach of discipline and absenteeism.
The Gang Boss: To assemble and set up tools and machines and to teach the
workers to make all their personal motions in the quickest and best way.
The Speed Boss: To ensure that machines are run at their best speeds and proper tools are
used by the workers.
The Repair Boss: To ensure that each worker keeps his machine in good order
and maintains cleanliness around him and his machines.
The Inspector: To show to the worker how to do the work.
Mental Revolution: At present, industry is divided into two groups –

management and labour. The major problem between these two groups is the
division of surplus. The management wants the maximum possible share of the
surplus as profit; the workers want, as large share in the form of wages. Taylor
has in mind the enormous gain that arises from higher productivity. Such gains
can be shared both by the management and workers in the form of increased
profits and increased wages.
Henry Fayol’s 14 Principles of Management:
The principles of management are given below:
Division of work: Division of work or specialization alone can give maximum

productivity and efficiency. Both technical and managerial activities can be
performed in the best manner only through division of labour and specialization.
Authority and Responsibility: The right to give order is called authority.

The obligation to accomplish is called responsibility. Authority and
Responsibility are the two sides of the management coin. They exist
together. They are complementary and mutually interdependent.
Discipline: The objectives, rules and regulations, the policies and procedures
must be honoured by each member of an organization. There must be clear and
fair agreement on the rules and objectives, on the policies and procedures. There
must be penalties (punishment) for non-obedience or indiscipline. No
organization can work smoothly without discipline – preferably voluntary
discipline.
Unity of Command: In order to avoid any possible confusion and conflict,

each member of an organization must received orders and instructions only
from one superior (boss).
Unity of Direction: All members of an organization must work together to

accomplish common objectives.
Emphasis on Subordination of Personal Interest to General or Common

Interest: This is also called principle of cooperation. Each shall work for
all and all for each. General or common interest must be supreme in any joint
enterprise.
Remuneration: Fair pay with non-financial rewards can act as the best
incentive or motivator for good performance. Exploitation of employees in
any manner must be eliminated. Sound scheme of remuneration includes
adequate financial and non financial incentives.
Centralization: There must be a good balance between centralization and

decentralization of authority and power. Extreme centralization and
decentralization must be avoided.
Scalar Chain: The unity of command brings about a chain or hierarchy of

command linking all members of the organization from the top to the bottom.
Scalar denotes steps.
Order: Fayol suggested that there is a place for everything. Order or system
alone can create a sound organization and efficient management.
Equity: An organization consists of a group of people involved in joint

effort. Hence, equity (i.e., justice) must be there. Without equity, we cannot
have sustained and adequate joint collaboration.
Stability of Tenure: A person needs time to adjust himself with the new work
and demonstrate efficiency in due course. Hence, employees and managers
must have job security. Security of income and employment is a pre-requisite of
sound organization and management.
Esprit of Co-operation: Esprit de corps is the foundation of a sound

organization. Union is strength. But unity demands cooperation. Pride, loyalty
and sense of belonging are responsible for good performance.
Initiative: Creative thinking and capacity to take initiative can give us sound
managerial planning and execution of predetermined plans.
The 3 Different Levels of Management

Levels of Management
The term Levels of Management refers to the line of division that exists between various
managerial positions in an organization. As the size of the company and workforce increases,
the number of levels in management increases along with it, and vice versa. The
different Levels of Management can determine the chain of command within an
organization, as well as the amount of authority and typically decision-making influence
accrued by all managerial positions.
Levels of Management can be generally classified into three principal categories, all of
which direct managers to perform different functions.
In this article, we will explore the specific definition of these levels, as well as the roles and
responsibilities of the managers that fall into these categories.
1. Administrative, Managerial, or Top Level of Management
This level of management consists of an organization’s board of directors and the chief
executive or managing director. It is the ultimate source of power and authority, since it
oversees the goals, policies, and procedures of a company. Their main priority is on the
strategic planning and execution of the overall business success.
The roles and responsibilities of the top level of management can be summarized as follows:
• Laying down the objectives and broad policies of the business enterprise.
• Issuing necessary instructions for the preparation of department-specific budgets,
schedules, procedures, etc.
• Preparing strategic plans and policies for the organization.
• Appointing the executives for middle-level management, i.e. departmental
managers.
• Establishing controls of all organizational departments.
• Since it consists of the Board of Directors, the top management level is also
responsible for communicating with the outside world and is held accountable
towards an organization’s shareholders for the performance of the enterprise.
• Providing overall guidance, direction, and encouraging harmony and
collaboration.
2. Executive or Middle Level of Management

The branch and departmental managers form this middle management level. These
people are directly accountable to top management for the functioning of their respective
departments, devoting more time to organizational and directional functions. For smaller
organizations, there is often only one layer of middle management, but larger enterprises can
see senior and junior levels within this middle section.
The roles and responsibilities of the middle level of management can be summarized as
follows:
• Executing the plans of the organization in accordance with the policies and
directives laid out by the top management level.
• Forming plans for the sub-units of the organization that they supervise.
• Participating in the hiring and training processes of lower-level management.
• Interpreting and explaining the policies from top-level management to lower-level
management.
• Sending reports and data to top management in a timely and efficient manner.
• Evaluating the performance of junior managers.
• Inspiring lower level managers towards improving their performance.
3. Supervisory, Operative, or Lower Level of Management

This level of management consists of supervisors, foremen, section officers,
superintendents, and all other executives whose work must do largely with HR oversight
and the direction of operative employees. Simply put, managers at the lower level are
primarily concerned with the execution and coordination of day-to-day workflow that ensure
completion of projects and that deliverables are met.
The roles and responsibilities of the lower level of management can be summarized as
follows:
• Assigning jobs and tasks to various workers.

• Guiding and instructing workers in day-to-day activities.
• Overseeing both the quality and quantity of production.
• Maintaining good relations within lower levels of the organization.
• Acting as mediators by communicating the problems, suggestions, and
recommendatory appeals, etc. of workers to the higher level of management, and
in turn elucidating higher-level goals and objectives to workers.
• Helping to address and resolve the grievances of workers.
• Supervising and guiding their subordinates.
• Taking part in the hiring and training processes of their workers.
• Arranging the necessary materials, machines, tools, and resources, etc. necessary
for accomplishing organizational tasks.
• Preparing periodical reports regarding the performance of the workers.
• Upholding discipline, decorum, and harmony within the workplace.
• Improving the enterprise’s image as a whole, due to their direct contact with the
workers.
Levels of Management Summary

An organization can have many different managers, across a variety of titles, authority
levels, and levels of the management hierarchy that we illustrated above. In order to properly
assign roles and responsibilities to all managerial positions, it is important to recognize the
key differences between low-level, middle-level, and top-level management.
The key takeaways from this distinction are as follows:
• Top-level managers are responsible for controlling and overseeing the entire
organization.
• Middle-level managers are responsible for executing organizational plans which
comply with the company’s policies. They act as an intermediary between top-
level and low-level management.
• Low-level managers focus on the execution of tasks and deliverables, serving as
role models for the employees they supervise.
All businesses are comprised of a vast array of different managerial tasks. When these are
coordinated properly, and there is a strong hierarchal manager system in place, an
organization can be extremely efficient in creating value through the production of their
products, services and overall workflow.
What is Organisation
Organisation refers to a collection of people who are working towards a common goal and
objective. In other words, it can be said that organisation is a place where people assemble
together and perform different sets of duties and responsibilities towards fulfilling the
organisational goals.
Types of Organisation and their Structure

There are two broad categories of organisation, which are:
1. Formal Organisation
2. Informal Organisation
Formal Organisation: Formal organisation is that type of organisation structure where the
authority and responsibility are clearly defined. The organisation structure has a defined
delegation of authority and roles and responsibilities for the members.
The formal organisation has predefined policies, rules, schedules, procedures and programs.
The decision making activity in a formal organisation is mostly based on predefined policies.
Formal organisation structure is created by the management with the objective of attaining
the organisational goals.
There are several types of formal organisation based on their structure, which are discussed
as follows:
1. Line Organisation
2. Line and Staff Organisation
3. Functional Organisation
4. Project Organisation
5. Matrix Organisation
Let us learn about these organisation structures in detail in the following lines.
Line Organisation: Line organisation is the simplest organisation structure and it also
happens to be the oldest organisation structure. It is also known as Scalar or military or
departmental type of organisation.
In this type of organisational structure, the authority is well defined and it flows vertically
from the top to the hierarchy level to the managerial level and subordinates at the bottom and
continues further to the workers till the end.
There is a clear division of accountability, authority and responsibility in the line

organisation structure.
Advantages of Line organisation
1. Simple structure and easy to run
2. Instructions and hierarchy clearly defined
3. Rapid decision making
4. Responsibility fixed at each level of the organisation.
Disadvantages of Line organisation:
1. It is rigid in nature
2. It has a tendency to become dictatorial.
3. Each department will be busy with their work instead of focusing on the overall
development of the organisation.
Line and Staff Organisation: Line and staff organisation is an improved version of the line
organisation. In line and staff organisation, the functional specialists are added in line. The
staff is for assisting the line members in achieving the target effectively.
Advantages of Line and Staff organisation
1. Easy decision making as work is divided.
2. Greater coordination between line and staff workers.
3. Provides workers the opportunity for growth.
Disadvantages of Line and Staff Organisation
1. Conflict may arise between line and staff members due to the improper distribution of
authority.
2. Staff members provide suggestions to the line members and decision is taken by line
members, it makes the staff members feel ignored.
Functional Organisation: Functional organisation structure is the type of organisation

where the task of managing and directing the employees is arranged as per the function they
specialise. In a functional organisation, there are three types of members, line members, staff
members and functional members.
Advantages of Functional organisation
1. Manager has to perform a limited number of tasks which improves the accuracy of the
work.
2. Improvement in product quality due to involvement of specialists.
Disadvantages of Functional organisation
1. It is difficult to achieve coordination among workers as there is no one to manage them

directly.
2. Conflicts may arise due to the members having equal positions.
Project Organisation: A project organisation is a temporary form of organisation structure

that is formed to manage projects for a specific period of time. This form of organisation has
specialists from different departments who are brought together for developing a new
product.
Advantages of Project organisation

1. The presence of many specialists from different departments increases the coordination
among the members.
2. Each individual has a different set of responsibilities which improves control of the
process.
Disadvantages of Project Organization
1. There can be a delay in completion of the project.
2. Project managers may find it difficult to judge the performance of different specialists.
Matrix Organisation: Matrix organisation is the latest form of organisation that is a

combination of functional and project organisation. In such organisations there are two lines
of authority, the functional part of the organisation and project management part of the
organisation and they have vertical and horizontal flow of authority, respectively.
Advantages of Matrix Organisation
1. Since the matrix organisation is a combination of functional and project management

teams, there is an improved coordination between the vertical and horizontal functions.
2. Employees are motivated as everyone will be working towards one project.
Disadvantages of Matrix Organisation
1. Due to the presence of vertical and horizontal communication, there will be increased cost
and paperwork.
2.Having multiple supervisors for the workers leads to confusion and difficulty in control.
Informal Organisation: Informal organisations are those types of organisations which do

not have a defined hierarchy of authority and responsibility. In such organisations, the
relationship between employees is formed based on common interests, preferences and
prejudices.
What is Management by Objectives (MBO)?
Management by Objectives (MBO) is a strategic approach to enhance the performance of an

organization. It is a process where the goals of the organization are defined and conveyed by
the management to the members of the organization with the intention to achieve each
objective.
An important step in the MBO approach is the monitoring and evaluation of the performance
and progress of each employee against the established objectives. Ideally, if the employees
themselves are involved in setting goals and deciding their course of action, they are more
likely to fulfill their obligations.
Steps in Management by Objectives Process
1. Define organization goals
Setting objectives is not only critical to the success of any company, but it also serves a
variety of purposes. It needs to include several different types of managers in setting goals.
The objectives set by the supervisors are provisional, based on an interpretation and
evaluation of what the company can and should achieve within a specified time.
2. Define employee objectives
Once the employees are briefed about the general objectives, plan, and the strategies to
follow, the managers can start working with their subordinates on establishing their personal
objectives. This will be a one-on-one discussion where the subordinates will let the managers
know about their targets and which goals they can accomplish within a specific time and
with what resources. They can then share some tentative thoughts about which goals the
organization or department can find feasible.
3. Continuous monitoring performance and progress
Though the management by objectives approach is necessary for increasing the effectiveness
of managers, it is equally essential for monitoring the performance and progress of each
employee in the organization.
4. Performance evaluation
Within the MBO framework, the performance review is achieved by the participation of the
managers concerned.
5. Providing feedback
In the management by objectives approach, the most essential step is the

continuous feedback on the results and objectives, as it enables the employees to track and
make corrections to their actions. The ongoing feedback is complemented by frequent formal
evaluation meetings in which superiors and subordinates may discuss progress towards
objectives, leading to more feedback.
6. Performance appraisal
Performance reviews are a routine review of the success of employees within MBO
organizations.
Benefits of Management by Objectives
• Management by objectives helps employees appreciate their on-the-job roles and

responsibilities.
• The Key Result Areas (KRAs) planned are specific to each employee, depending on
their interest, educational qualification, and specialization.
• The MBO approach usually results in better teamwork and communication.
• It provides the employees with a clear understanding of what is expected of them. The
supervisors set goals for every member of the team, and every employee is provided
with a list of unique tasks.
• Every employee is assigned unique goals. Hence, each employee feels indispensable
to the organization and eventually develops a sense of loyalty to the organization.
• Managers help ensure that subordinates’ goals are related to the objectives of the
organization.
Limitations of Management by Objectives
• Management by objectives often ignores the organization’s existing ethos and working
conditions.
• More emphasis is given on goals and targets. The managers put constant pressure on
the employees to accomplish their goals and forget about the use of MBO for
involvement, willingness to contribute, and growth of management.
• The managers sometimes over-emphasize the target setting, as compared to
operational issues, as a generator of success.
• The MBO approach does not emphasize the significance of the context wherein the
goals are set. The context encompasses everything from resource availability and
efficiency to relative buy-in from the leadership and stakeholders.
• Finally, there is a tendency for many managers to see management by objectives as a
total system that can handle all management issues once installed. The
overdependence may impose problems on the MBO system that it is not prepared to
tackle, and that frustrates any potentially positive effects on the issues it is supposed to
deal with.
Key Takeaways
• Management by Objectives (MBO) is an approach adopted by managers to control

their employees by implementing a series of concrete goals that both the employee and
the organization aim to accomplish in the immediate future and work accordingly to
achieve.
• The MBO approach is implemented to ensure that the employees get a clear
understanding of their roles and responsibilities, along with expectations, so that they
can understand the relation of their activities to the overall success of the organization.
• If the management by objectives strategy is not adequately set, decided upon, and
controlled by organizations, self-centered workers can be likely to misinterpret results,
wrongly portraying the achievement of short-term, narrow-minded goals.
What is leadership style?
A leadership style refers to a leader’s methods and behaviours when directing, motivating, and managing
others. A person’s leadership style also determines how they strategize and implement plans while accounting
for the expectations of stakeholders and the well-being of their team.
Why It’s Important to Know Your Leadership Style
Knowing your leadership style helps you provide adequate guidance and feedback to employees, and better
understand your thoughts, how you make decisions and strategies you can consider implementing when
making business decisions.
It can also help you understand how your direct reports see you and why they may give you specific feedback.
For example, if employees feel stifled at work and don’t have many opportunities to speak their minds, they
may be telling you that you’re an autocratic leader who can benefit from changing their style.
Knowing your leadership styles may help you improve with limited feedback. Each leadership style has its
pitfalls, allowing you to proactively address areas of improvement. This is critical because some employees
might hesitate to speak up, even in an anonymous survey.
Ready to find out your leadership styles? Check out the most common styles below.
TYPES OF LEADERSHIP STYLE:
1. Democratic Leadership
2. Autocratic Leadership
3. Laissez-Faire Leadership
4. Strategic Leadership
5. Transformational Leadership
6. Transactional Leadership
7. Coaching Leadership
8. Bureaucratic Leadership
9. Visionary Leadership
10. Pacesetting Leadership
11. Situational Leadership
1. Democratic Leadership
Also called: Participative or Facilitative Leadership
Democratic leadership is exactly what it sounds like — the leader makes decisions based on each team member
‘s input. Although a leader makes the final call, each employee has an equal say in a project’s direction.
Democratic leaders often have the following characteristics:
• Inclusive
• Collaborative
• Effective communicator
• Empowering
• Supportive and empathetic
• Trust-building
• Emotionally intelligent
Why this leadership style works for businesses:
This leadership style resembles how leaders often make decisions in company board meetings.
For example, a democratic leader might give the team a few decision-related options in a company board
meeting. They could then open a discussion about each option. After a discussion, this leader might consider
the board's thoughts and feedback, or they might open this decision up to a vote.
Why this leadership style is good for the team:
The democratic leadership style is one of the most effective because it encourages everyone to participate in
all processes, share their opinions, and know that you will hear them. It also encourages employees to be
engaged because they know you will hear their feedback.
Team members feeling like they have space to participate can also increase employee empowerment,
motivation, and participation.
Potential challenges for leaders with a Democratic style:
Reaching a consensus can take considerable time, resources, and communication with a democratic style. It
can also impact decision-making because some team members may not have the right expertise to make critical
decisions.
2. Autocratic Leadership
Also called: Authoritarian, Coercive, or Commanding Leadership
Autocratic leadership is the inverse of democratic leadership. In this leadership style, the leader makes
decisions without taking input from anyone who reports to them.
Autocratic leadership is typically characterized by:
• Centralized decision-making
• Direct and top-down communication
• Minimal delegation
• Limited autonomy for team members
• Emphasis on hierarchy and status
• Resistant to feedback or criticism
This style is most useful when a business needs to control specific situations, not as a standalone leadership
style. For instance, it can be effective in emergency or crisis situations where quick and decisive action is
necessary.
Autocratic leaders carry out strategies and directives with absolute focus. So, when a situation calls for it, an
authoritative leader can make a quick best-fit decision for a business without needing to get additional input
(helpful on a case-by-case basis).
This type of leadership is most effective when a company makes difficult decisions that don’t benefit from
additional input from others who aren’t fully knowledgeable on the subject. Responsible parties can make a
decision and give employees a clear sense of direction, and it can also make up for a lack of experience on a
team.
Potential challenges for leaders with an Autocratic style:
Most organizations can’t sustain such a hegemonic culture without losing employees, which can significantly
lower morale and creative problem-solving.
An example of authoritative leadership gone bad could be when a manager changes the hours of work shifts
for employees without consulting anyone.
Other challenges with autocratic leaders include:
• Intimidation
• Micromanagement
• Over-reliance on a single leader
3. Laissez-Faire Leadership
Also called: Delegative or Hands-off Leadership
If you remember your high-school French, you'll accurately assume that laissez-faire leadership is the least
intrusive form of leadership. The French term “laissez-faire” literally translates to “let them do.”
Leaders who embrace it give nearly all authority to their employees and don’t often interject unless the
situation calls for it.
Some key characteristics of laissez-faire leadership include:
• Limited guidance, direction, and feedback

• Minimal interference and control
• High autonomy and freedom
• Empowerment and trust
Laissez-faire leaders make employees accountable for their work. This gives many employees an incentive to
do their best work.
This type of leader often creates a more relaxed company culture. This makes it a good model for creative
businesses like ad agencies or product design. It's also a good fit for a business with a highly-skilled team.
In a young start-up, for example, you might see a laissez-faire company founder who makes no major office
policies around work hours or deadlines. They might put complete trust in their employees while they focus
on the overall workings of running the company.
Because of this high level of trust, employees working for laissez-faire leaders feel valued. They get the
information they need and use their resources and experience to meet business goals.
Potential challenges for leaders with a Laissez-Faire style:
Although laissez-faire leadership can empower employees by trusting them to work however they'd like, there
are downsides. It can limit team development and pose a challenge for new or inexperienced employees who
would benefit from guidance as they get ramped up. Roles and responsibilities can also become unclear, and
it can build a culture of working in silos where people might work autonomously rather than as a cohesive
group.
This style can lead to overlooking critical company growth and learning opportunities, so keeping this
leadership style in check is important.
4. Strategic Leadership
Strategic leaders sit between a company's primary operations and its growth opportunities. This form of
leadership requires vision, competitive awareness, and adaptability.
These leaders accept the burden of executive interests but also ensure that working conditions are stable for
everyone else.
Strategic leaders aim to guide their organization toward its long-term goals. By utilizing this leadership style,
you can create a forward-thinking, agile, and adaptable organization that can thrive in today's dynamic
business landscape.
Strategic leaders tie plans for growth and strategy to how they manage a team. They ask questions, develop
and execute strategies, and consider future growth. This approach supports popular business goals like:
• Accountability
• Productivity
• Collaboration
• Transparency
This is a desirable leadership style in many companies because strategic thinking supports many types of
employees at once.
Strategic thinking supports many employees at once, so it’s a desirable style for many companies. It
encourages visualization, planning, and making the most of existing resources, and it can motivate employees.
Potential challenges for leaders with a strategic leadership style:
Leaders who work strategically might take on too much and risk thinking too far into the future of possibilities
while missing critical present-day issues. It’s important to learn how to delegate with this leadership style and
share the weight of decision-making.
Compromise, communication skills, and consistent outreach are also essential.
Featured resources:
• Crafting a team vision

• Strategic planning
• Developing leadership skills
5. Transformational Leadership
Transformational leaders gain the trust and confidence of their teams, encourage team members, and lead
employees toward meeting company goals.
Transformational leadership also always improves upon the company’s conventions and motivates employees
to grow and further develop their skills.
Ultimately, the goal of a transformational leader is to create a lasting positive impact, uplift their team to
achieve their full potential, and drive success for the organization.
Transformational leaders can inspire their teams to think in new ways. This can help companies update
business processes to improve productivity and profitability. It can also help with employee satisfaction,
morale, and motivation.
This is a highly encouraging form of leadership where employees are supported and encouraged to see what
they’re capable of.
When starting a job with this type of leader, all employees might get a list of goals to reach and deadlines for
reaching them. The goals might begin quite simple, but as employees grow and meet their goals, leaders will
give them more tasks and challenges to conquer as they grow with the company.
Potential challenges for leaders with a Transformational style:
Transformational leaders can lose sight of everyone’s individual learning curves in place of the company's
goals. Employee burnout can also become an issue, so it’s important to work with your team to update
benchmarks.
6. Transactional Leadership
Transactional leadership is based on reward and punishment to motivate and direct the behaviour. These
managers set specific rules and standards, and they closely monitor their employees’ performance. They tell
employees they can expect rewards if a goal is met. However, they may require more 1:1s or check-ins if
people aren’t meeting goals.
This leadership style is concerned with maintaining the status quo and ensuring that predetermined goals and
standards are met. It also assumes that teams need structure and monitoring to meet business goals and that
they are reward-motivated.
This style is popular in enterprise companies as it focuses on results, existing structures, and set systems of
rewards or penalties. This leadership style also recognizes and rewards commitment.
Transactional leaders can offer helpful clarity and structure of expectations, which can help employees feel
safe because they understand expectations. Employees also have a clear view of what they get in return for
meeting business goals.
Potential challenges for leaders with a transactional style:
This style is more about using rewards to motivate and less about building relationships with employees,
coaching, and developing team morale. Keeping a diverse team engaged can be hard if only some are reward-
motivated, and it can lead to low creativity and fear of punishment.
7. Coaching Leadership
Also called: Conscious Leadership
A coaching leader focuses on identifying and nurturing the individual strengths of each member of the team
and developing strategies that will enable teams to work better together.
This style is similar to strategic and democratic leadership, but it emphasizes individual employees' success.
A manager with this leadership style might help employees improve on their strengths by:
• Giving them new tasks to try

• Offering guidance
• Meeting to discuss constructive feedback
They might also encourage one or more team members to expand on their strengths by learning new skills
from other teammates.
Coaching leaders focus on building trust and establishing strong relationships with their team members. They
foster an environment of open communication and psychological safety that encourages individuals to share
ideas, seek feedback, and work together toward common objectives.
Coaching leaders actively support skill development and independent problem-solving. They meet ambitious
business goals by creating a strong company culture and add to a business's long-term vision as valuable
mentors, often even after leaving a company.
This leadership style can motivate employees as they feel supported on the team. It recognizes that each
employee is unique and can build diverse and exciting teams where each employee offers something different.
This leader focuses on high performance, with employees that can communicate well and embrace unique
skill sets to get work done. They also encourage team members to seek new challenges, learn from
experiences, and continuously improve their skills and knowledge.
Potential challenges for leaders with a coaching style:
It can take a lot of time to develop employees with a coaching style, but mentoring isn’t effective for every
employee.
8. Bureaucratic Leadership
Bureaucratic leaders follow the rules. Unlike autocratic leadership, they might listen and consider the input of
employees, but they might reject input that doesn’t align with company policy or past practices.
Some key features of bureaucratic leadership include:
• Centralized decision-making
• Strict adherence to rules and procedures
• Clear chain of command
• Limited autonomy
This style works best for larger, older, or traditional companies that are successful in their current processes.
This leadership style works for these businesses because they want to maintain existing business models and
processes because their current strategies are successful, and trying something new that doesn't work could
waste time and resources.
This leadership style can be challenging for some, but it has many benefits. It lowers the risk of favouritism
and replaces it with central duties, job security, and predictability.
This clear and efficient leadership style can lead to high levels of creativity for some employees.
Potential challenges for leaders with a bureaucratic leadership style:
Employees might not feel as controlled as autocratic leadership, but there can be a lack of freedom in how
much people can do in their roles. This approach can shut down innovation and is not the right fit for
companies chasing ambitious goals and quick growth.
9. Visionary Leadership
Also called: Affiliative Leadership
Visionary leadership focuses on future and long-term goals. They aim to inspire and guide their team towards
the achievement of a shared vision.
This type of leader encourages collaboration, emotional intelligence, and teamwork. They also foster a culture
of innovation and change, encouraging individuals to embrace new ideas and approaches.
Visionary leaders can create a clear plan for employees to follow and execute. They are powerful and
persuasive communicators, which helps them energize teams toward impactful business growth.
As the focus is on future growth, visionary leaders can forecast potential roadblocks and outline action plans,
giving employees increased confidence during uncertainty or challenging times.
Teams can do more and enjoy their work more if they have a vision to work toward. This type of leader offers
vision statements and other tools to inspire and motivate teams to engage at work.
Potential challenges for leaders with a visionary style:
Visionary leaders can skip over day-to-day issues to focus on long-term ideas, missing roadblocks that could
build up and cause problems in the future. Another common challenge is hyper-focus on a single goal, which
can impact consideration for other ideas that may be just as valuable to the business.
10. Pacesetting Leadership
A pacesetting leader sets ambitious standards and expects employees to meet those goals in the exact manner
they’ve laid out. These leaders expect productivity and high-quality outputs from employees, and they may
step in to ensure things are done correctly and on time.
Some characteristics of a pacesetting leader include:
• High performance standards

• Leading by example
• Results-oriented
• Preference for speed and efficiency
This type of leader sets ambitious goals with a clear and focused effort, so employees know exactly what is
expected of them. For example, pacesetting sales leaders set and exceed ambitious quarterly sales cadences.
These leaders might also work alongside their team and push performance, boosting team morale.
Skilled and experienced teams often thrive under this kind of leader. They use the abilities of motivated and
competent team members and make meeting goals feel urgent and exciting.
It can also be gratifying for team members to see their leader working hard alongside them.
Potential challenges for leaders with a pacesetting style:
Pacesetting leaders can sometimes create a high-stress workplace environment if goals are unrealistic, which
can overwhelm and demotivate teams. This can impact engagement and lead to burnout, where people struggle
to meet goals and perform as expected.
Focusing on goals can also stifle creativity and diversity of thought, so employees don’t feel they can use their
expertise to suggest alternative goals or strategies.
11. Situational Leadership
Situational leaders change their management style to meet the needs of the situation or team. It suggests that
effective leaders must adapt their leadership style to match the readiness and development levels of their team
members
This leadership style involves analyzing specific situations, assessing the competence and commitment of
individuals, and adjusting the leadership approach accordingly. It is proactive and recognizes that change is
the only constant.
This leadership approach can motivate employees and ensure that people aren’t stuck working in a way that
doesn’t make sense for the situation. It’s also valuable for startups or businesses requiring frequent changes
and flexible talent and support.
Situational leaders are great communicators and use team feedback to make decisions. They also analyze
market changes and can quickly evaluate and update processes to ensure success. This can create strong
relationships and help employees see and feel their value to the business.
Potential challenges for leaders with a situational style:
Leaders need a high level of expertise in all business processes and functions to make decisions, and they must
be able to pivot quickly. It’s important to remember long-term goals and meet immediate needs; not every
leader can do this effectively.
It can become confusing and stressful for teams if a leader’s approach changes too often, as they won’t know
what to expect.
Deciding Between Different Leadership Styles
There's no single “best” leadership style, so figuring out what is best for you and your environment is essential.
How to Understand Your Instinctive Leadership Style
Leaders need good instincts, and many leaders focus on their own experiences and habits as they develop a
leadership style. As you start your path toward leadership, you may want to keep notes. Write down how you
would handle specific situations or problems.
Doing this can help you be a confident and capable leader, but if you notice things aren’t going as expected,
you may want to reconsider your approach.
Your instincts and habits will always impact the way you lead. But if you find yourself in situations that you're
unsure how to respond to, you may want to look at other leadership styles.
For example, if you're an extrovert with a shy member on your team, you may want to work on active listening.
If you're an introvert leading a team of outgoing people, you may need to learn new ways to nurture, support,
and inspire your team.
Can you change your leadership style?
While it may take some time and effort, you can always change your leadership style and improve your
processes.
The first step to making changes is recognizing the need for change. Whether this comes from direct employee
feedback, noticing that goals aren’t being met, or people seeming to experience burnout, identifying this is the
first step.
Next, you need to prepare yourself for changes. For example, your leadership style may be effective for your
team, but you might have a more challenging time connecting with stakeholders. In this case, you wouldn’t
want to throw out your current style, but you’d want to identify what is and isn’t working. Then, get curious,
and begin the work of adjusting the way you lead.
How to Choose the Right Leadership Style for You
There are many ways to find a leadership style that works for you. Because of this, it can be tough to know
where to begin. If you're not sure what leadership styles will work for you, these steps can help.
1. Get to know yourself.
Everyone has a unique path to self-discover. Some take risks and try new things and others prioritize quiet
time, writing exercises, and listing strengths and weaknesses.
Another path to learning about yourself is through physical activity and spending time with other people.
However you go about it, getting to know yourself is an important first step toward being a leader.
2. Outline your values and challenges.
Knowing yourself will help you understand what’s important to you and where you struggle. Being a leader
means working quickly and making decisions quickly, so having your values mapped out can be extremely
helpful.
As you write out your values, look at pivotal moments in your life to date. Then, look for trends, people you're
drawn to, and common themes. If your list is long, group similar ideas together.
Having an outline can help you see how you react, your strengths and weaknesses, and a base for your core
values.
3. Watch leaders you respect.
Observing leaders you respect can also help you define your leadership style. As you watch them in meetings,
client conversations, and presentations, take notes of what you like.
Another approach is to view their actions with specific leadership styles in mind, helping you figure out what
their approach is and whether it will work for you.
4. Try different leadership styles.
A hands-on option is to try out different leadership styles. You can create an outline of what interests you and
review your notes before your next meeting to see how you can incorporate it into your interactions.
5. Find a business coach or mentor.
Working with a business coach can also help you hone your leadership style.
A mentor can be someone in your workplace you respect and would appreciate feedback from, whether it’s
another leader or a colleague you respect. You can also check out this guide on how to find a business coach.
6. Ask colleagues and leaders for feedback.
Another way to find the best style for your needs is to ask other colleagues, leaders, and team members for
feedback.
The best approach for this strategy is to plan out what you want to ask and why so you get the feedback you
need. Think about how people might respond and also set clear guidelines and expectations.
When you get feedback, make sure to listen carefully. You’ll gain valuable information about your strengths
and weaknesses that will help you understand where you need to improve and the style that will help you
improve.
7. Complete a leadership style assessment.
Leadership assessments are helpful tools for leaders, for yourself as an individual, and to assess your teams.
A leadership quiz can make it easier to understand your strengths and skills. It can surface habits and qualities
you might not be aware of and give you a clear direction for growth.
If this is something you want to try, the leadership assessment below is a great place to start.
Leadership Style Assessment
Leaders carry a mix of the leadership styles mentioned above. At the root of these styles, leadership experts
Bill Torbert and David Rooke say, are what are called “action logics.”
These action logics assess “how [leaders] interpret their surroundings and react when their power or safety is
challenged.”
That's the idea behind the Leadership Development Profile, a popular management survey tool. Created by
professor Torbert and psychologist Susanne Cook-Greuter — and featured in the book, Personal and
Organizational Transformations — the survey uses a set of 36 open-ended sentence completion tasks to help
researchers better understand how leaders develop and grow.
Below we’ve used open-ended sentences to outline six action logics that describe each one. Review the
sentences, see how they resonate with you, and figure out which leadership style upholds based on the action
logic you most align with.
1. Individualist
The individualist is self-aware, creative, and primarily focused on their actions and development as opposed
to overall organizational performance. This action logic is exceptionally driven by the desire to exceed
personal goals and constantly improve their skills.
Here are some things an individualist might say:
Individualist 1: “A good leader should always trust their own intuition over established organizational
processes.”
Individualist 2: “It's important to be able to relate to others so I can easily communicate complex ideas to
them.”
Individualist 3: “I'm more comfortable with progress than sustained success.”
2. Strategist
Strategists are acutely aware of the environments they’re in and have a deep understanding of the structures
and processes that make their businesses tick. Still, they’re also able to evaluate what could be improved.
Here are some things a strategist might say:
Strategist 1: “A good leader should always be able to build a consensus in divided groups.”
Strategist 2: “It's important to help develop the organization as a whole, as well as the growth and individual
achievements of my direct reports.”
Strategist 3: “Conflict is inevitable, but I'm knowledgeable enough about my team's personal and professional
relationships to handle the friction.”
3. Alchemist
Rooke and Tolbert describe the alchemist as highly evolved and effective at managing organizational change.
They differ from other action logics in their unique ability to simultaneously see the big picture and minute
details. No department or employee gets overlooked with an alchemist leader.
Here are some things an alchemist might say:
Alchemist 1: “A good leader helps their employees reach their highest potential, and possesses the necessary
empathy and moral awareness to get there.”
Alchemist 2: “It's important to make a profound and positive impact on whatever I'm working on.”
Alchemist 3: “I have a unique ability to balance short-term needs and long-term goals.”
4. Opportunist
Opportunists are guided by a certain level of mistrust of others, relying on a facade of control to keep their
employees in line. “Opportunists tend to regard their bad behavior as legitimate in the cut and thrust of an eye-
for-an-eye world,” Rooke and Tolbert write.
Here are some things an opportunist might say:
Opportunist 1: “A good leader should always view others as potential competition to be bested, even if it's at
the expense of their professional development.”
Opportunist 2: “I reserve the right to reject the input of those who question or criticize my ideas.”
5. Diplomat
Unlike the opportunist, the diplomat isn't concerned with competition or assuming control over situations.
Instead, this action logic seeks to cause minimal impact on their organization by conforming to existing norms
and completing their daily tasks with as little friction as possible.
Here are some things a diplomat might say:

Diplomat 1: “A good leader should always resist change since it risks causing instability among their direct
reports.”
Diplomat 2: “It's important to provide the 'social glue' in team situations, safely away from conflict.”
Diplomat 3: “I tend to thrive in more team-oriented or supporting leadership roles.”
6. Expert
The expert is a pro in their given field, constantly striving to perfect their knowledge of a subject and perform
to meet their own high expectations. Rooke and Tolbert describe the expert as a talented individual contributor
and a source of knowledge for the team. But this action logic does lack something central to many good
leaders: emotional intelligence.
Here are some things a diplomat might say:
Expert 1: “A good leader should prioritize their own pursuit of knowledge over the needs of the organization
and their direct reports.”
Expert 2: “When problem-solving with others in the company, my opinion tends to be the correct one.”
MASLOW’s Hierarchy of Needs Theory

Maslow’s Hierarchy of Needs Theory is regarded as one of the most popular theories on motivation. It is a
theory of psychology that explains that humans are highly motivated in order to fulfill their needs, which is
based on hierarchical order.
It was first introduced by Abraham Maslow in 1943 for his paper titled Theory of Motivation and is based on
a hierarchy of needs, which starts with the most basic needs and subsequently moves on to higher levels.
The main goal of this need hierarchy theory is to attain the highest position or the last of the needs, i.e need
for self actualization.
In business studies, it is used as a part of organisational behaviour and also regularly used in psychology
lectures.
Levels of Hierarchy
The levels of hierarchy in Maslow’s need hierarchy theory appear in the shape of a pyramid, where the most
basic need is placed at the bottom while the most advanced level of hierarchy is at the top of the pyramid.
Maslow was of the view that a person can only move to the subsequent level only after fulfilling the needs of
the current level. The needs at the bottom of the pyramid are those which are very basic and the most complex
needs are placed on the top of the pyramid.
Let us read in detail about the various steps in Maslow’s hierarchy of needs theory.
1. Physiological needs: The physiological needs are regarded as the most basic of the needs that humans have.
These are needs that are very crucial for our survival. The examples of physiological needs are food, shelter,
warmth, health, homeostasis and water, etc.
In addition to all the above needs, Abraham Maslow also included sexual reproduction as one of the most
common needs as it is essential for the survival of the species.
2. Safety Needs: Once the basic needs of food, shelter, water, etc are fulfilled, there is an innate desire to
move to the next level. The next level is known as the safety needs. Here the primary concern of the individual
is related to safety and security.
Safety and security can be regarding many things like a stable source of income that provides financial
security, personal security from any kind of unnatural events, attacks by animals and emotional security and
physical safety which is safety to health.
The various actions taken by an individual in ensuring safety and security are finding a job, getting an
insurance policy, choosing a secure neighbourhood for staying with family, etc.
3. Social Needs (Also known as Love and Belonging Needs): This is the third level in the need hierarchy
theory. It is that stage where an individual having fulfilled his physiological needs as well as safety needs
seeks acceptance from others in the form of love, belongingness.
In this stage, human behaviour is driven by emotions and the need for making emotional relationships is
dominant here.
The following examples can satisfy this need:
1. Friendship
2. Family
3. Intimacy
4. Social Groups
When an individual is deprived of the above needs, he/she feels lonely and depressed.
4. Esteem needs: This is considered as the fourth level of the hierarchy of needs theory. It is related to the
need of a person being recognised in the society. It deals with getting recognition, self respect in the society.
The need for recognition and acceptance arises when a person has fulfilled their need for love and
belongingness.
In addition to recognition from others, there is a need for the person to develop self esteem and personal worth.
5. Self-actualization needs: This is the final level of the theory of hierarchy of needs as proposed by Maslow.
It is the highest level of needs and is known as the self-actualization needs. It relates to the need of an
individual to attain or realise the full potential of their ability or potential.
At this stage, all individuals try to become the best version of themselves. In other words, self actualisation is
the journey of personal growth and development.
What is the two-factor theory?
The two-factor theory is a concept that states the factors that affect an individual's satisfaction and motivation
level. These two factors are:
• Job satisfaction (affective/hygiene)

• Job dissatisfaction (motivational)
When American psychologist Frederick Irving Herzberg developed this theory in 1968, it quickly became the
most requested article in the Harvard Business Review. Herzberg believed that these two factors impacted
employees' performance in different ways.
Both effective and motivational factors tend to influence people differently. Even as an individual is satisfied
with their role, they may not be motivated enough to work towards their goals.
Example of the two-factor theory
Let's take a look at an example of how two-factor theory can be used in the workplace. Let's say a member of
your team comes to you with an issue — another team member is not pulling their weight in a project. They
ignore deadlines and proper processes for work, and have a dismissive attitude when pressed about why they're
losing steam. You're faced with a dilemma about how to get this team member back into a good frame of mind
for the project.
According to Herzberg’s two-factor theory, this can be fixed by considering what motivates the team
members. Simply put, people will act out when they feel like something is missing (i.e., dissatisfaction) or
when they feel good about themselves (i.e., recognition).
If we want this hypothetical team member to stop acting out, then it may be time to look at how well their
needs are being met by the company.
Hygiene factors
Hygiene factors are the elements of a job that satisfy basic needs: security, pay, fairness, and working
conditions. When these needs are met, employees feel comfortable and satisfied with their roles. Here are
some examples of hygiene factors:
• Salary and benefits: How well an employee's basic needs are met, such as pay and insurance
• Job security: The amount of control the employer has over keeping the position filled
• Work environment: The amount of stress and travel required, as well as the office environment
(temperature, cleanliness, basic hygiene)
• Job policies: How an employee's day-to-day activities are controlled
• Supervisory practices: How well the employees are managed
• Company policies and administration: The way policies are set up in the organization
• Company reputation: The reputation of an organization outside of the company walls, such as
with suppliers and business partners
Herzberg motivators
Motivational factors are the key job elements that motivate people to stay and grow in a role. When these
needs are not fulfilled, the project team may become dissatisfied with their jobs. They may want more
challenging roles that allow them to grow professionally, learn new skills, or manage greater responsibilities.
Here are a few examples of motivators as per Herzberg’s two-factor theory:
• Achievement: The sense of accomplishment at the end of a project or task

• Recognition for accomplishments: Being acknowledged for their work or contributions to the
organization that go above and beyond their job duties, whether that’s through a raise, promotion,
or important assignment
• Advancement: The opportunity to be promoted within the organization
• Creativity: The ability to think outside the box to solve problems or come up with new ideas
• Variety: A change in work assignments, projects, or duties
• Independence: The ability to make their own decisions
• Interesting work: Tasks are stimulating and keep them interested
• Responsibility: The opportunity to take on bigger project roles, more duties, and higher levels
of confidentiality
• Accomplishment: The ability to accomplish a given task within the set deadline
• Personal development: The opportunity to upskill by learning new skills, improving existing
ones, and attaining certifications
• Interpersonal relationships: The ability to interact with other employees or clients positively
and build long-term relationships
• Status: Being seen as a leader in the organization, giving orders, and seeing those orders carried
out
Why is Herzberg's two-factor theory important in project management?
Poorly-trained project managers lead to project failure in more than 30% of projects. When the organization
is racing to complete projects on time and within budget, having a supportive and fully motivated team can be
a huge boon.
As per a recent Salesforce report, more than 86% of executives cited ineffective teamwork as a major reason
for project failure.
Motivating employees is a key aspect of project management. In project management, smooth teamwork helps
achieve three vital goals:
• Completing projects on time

• Keeping team members satisfied with their roles and motivated to perform better
• Motivated teams give rise to a healthy work environment
Herzberg's two-factor theory provides an insight into key elements that encourage employees. It can be used
to understand the motivations of individual employees that can in turn be utilized to craft a holistic employee
motivation plan.
By boosting the motivation levels of smaller teams, an encouraging and positive work environment can be
created, thus improving the likelihood of project success.
Here are the key benefits of using Herzberg's two-factor theory in project management:
• Defines the reasons why team members are satisfied or dissatisfied with their project or role
• Uncovers the motivators and hygiene factors already deployed in the company that should be
continued
• Helps determine the motivators and hygiene factors that employees want from the company
• Supports employee empowerment by motivating employees to achieve project goals themselves
• Minimizes project disruptions by identifying potential project and company risk factors that need
to be improved immediately
Advantages of Herzberg’s two-factor theory in project management
Implementing Herzberg’s two-factor theory can drive project success. Research from Gallup shows that
companies with highly engaged teams have 21% higher profitability. This confirms that employee motivation
is not just a buzzword but a solid concept that drives real business results.
Let’s review the potential benefits that can be achieved by making team motivation central to an organization’s
project management strategy:
1. Provides deep insights: Hertzberg’s theory gives a deeper look into employees’ mindsets
towards their jobs. It looks inwards to identify the internal factors that drive employees.
2. Identifies diverse factors: The two-factor theory reaffirms that lack of job satisfaction is not
due to poor work performance but rather other factors, such as company policies and
procedures.
Highlights the manager’s role: The theory recommends that managers support, encourage, and
motivate their team members as they go through the project life cycle.
3. Encourages unity and diversity: The concept encourages managers to be aware of workers
who may have a more difficult time achieving job satisfaction. This ensures their concerns are
heard and changes are made if necessary.
4. Nurtures accountability-driven metrics: It provides a framework for how to measure success
in company projects, as well as employee job satisfaction and dissatisfaction scores.
Disadvantages of Herzberg's two-factor theory in project management
Herzberg’s two-factor theory is not without its downsides. Keep an eye out for these disadvantages of the two-
factor theory:
1. Team disagreements: Disagreements between managers and teams can occur as it’s hard to
measure success in terms of these motivating factors alone. For example, a team member could
be content with their performance, while the manager may feel that there’s room for
improvement.
2. Disconnect between performance and motivators: In some instances, a project team member
may experience job dissatisfaction even when performing well. If that happens, the manager
shouldn’t let these concerns go unheard and act on them.
3. Satisfaction and productivity are not the same: The two-factor theory suggests that if
workers are satisfied, they will be more productive. However, it does not consider that
productivity is the result of several factors outside of an employee's personal motivation.
4. People are different: People have different desires, wants, and needs. Many employees prefer
to focus on completing tasks rather than pursuing personal development. The two-factor theory
also fails to consider department-specific issues that may result in job dissatisfaction and is
applicable only to company projects.
How to use Herzberg's theory in project management
How can the two-factor theory be applied to managing project teams? Even as external factors such as pay
and benefits motivate employees, other drivers such as prestige and reputation are key. Here’s a step-by-step
guide to using Herzberg's two-factor theory in project management:
1. Identify the motivators
Identify the factors that make your employees either happy or dissatisfied with their work. Use a questionnaire
to get to know their needs and wants. Find out if any particular motivators or hygiene factors could be
improved upon within your company. If so, determine what can be done to improve these factors.
Conduct simple polls, online employee surveys, or individual discussions to find out what teams want. Here
are a few questions that can help:
• What do you enjoy doing most?

• What don't you enjoy doing?
• What do you like most about your job?
• What would you change about your job?
2. Review and let go
After reviewing the satisfaction factors, find ways to eliminate dissatisfying factors in their work. For example,
if people want more feedback from managers, establish a more frequent review cycle that includes regular
project progress updates from the manager.
3. Measure it all
A quantitative method of measuring team satisfaction can also be used, such as:
• Percent satisfied rating (dissatisfied vs. satisfied)

• Net promoter index (total promoters minus total detractors)
• Customer satisfaction ratings (internal and external customers)
4. Keep it aligned
Communicate project progress and showcase team contributions to it. If some team members think that their
ideas and contributions are not being recognized, meet them and let them know that their opinions are valued.
5. Get clarity
Certain factors can be measured with reference to Herzberg's two-factor theory of motivation. For example,
money is a hygiene factor for employees — it keeps them satisfied with their jobs but it doesn’t always inspire
them to be creative or improve themselves.
By using the two-factor theory, project managers can better understand which factors might motivate their
employees. Try to consider what the majority of the team wants and make it available.
6. Align motivators with project goals
Once you understand the factors that motivate your employees, it is important to find ways of aligning these
motivators with the project's goals.
For example, if people are happy with their work, they will remain productive and satisfied. However, if there
is no connection between an individual's goals and contributions to the project, they may become demotivated
and end up adversely affecting team productivity
PERSONALITY
Personality is a patterned body of habits, traits, attitudes, and ideas of an individual, as these are
organized externally into roles and statuses and as they relate internally to motivation, goals, and
various aspects of selfhood.
The term personality is derived from the Latin word “Persona” meaning to speak through.
This Latin term was used to denote the mask and the actors used to wear it in ancient Rome and Greece; an
individual’s personality is the combination of traits and patterns that influence their behavior, thought,
motivation, and emotion.
It drives individuals to consistently think, feel, and behave in specific ways; in essence, it is what makes each
individual unique. Over time, these patterns strongly influence personal expectations, perceptions, values, and
attitudes.
In addition to this, personality arises from within the individual and remains fairly consistent throughout life.
It is a pattern of stable states and characteristics of a person that influence his or her behavior toward goal
achievement. Each person has unique ways of projecting these states.
The study of personality focuses on two broad areas;
1. One is understanding individual differences in particular personality characteristics, such as sociability

or irritability.
2. The other is understanding how the various parts of a person come together as a whole.
What is Personality?
Personality is the dynamic organization within the individuals of those psychophysical systems that
determine their unique adjustments to their environments.
Feist and Feist said, “personality is a pattern of relatively permanent traits and unique characteristics that give
both consistency and individuality to a person’s behaviour.”
By personality, Ogburn means “the integration of the socio-psychological behaviour of the human being,
represented by habits of action and feeling, attitudes and opinions.”
According to Lundberg and others, “The term personality refers to the habits, attitudes and other social traits
that are characteristic of a given individual’s behavior.”
Lawrence A. Pewin said, “Personality represents those structural and dynamic properties of an individual or
individuals as they reflect themselves in characteristic responses to situations.”
Hence personality is the sum total of ways in which an individual reacts and interacts with others. It is
individual differences in characteristic patterns of thinking, feeling, and behaving. It is the supreme realization
of the innate habit of a living being.
It is an act of courage flung in the face of life, the absolute affirmation of all that constitutes the individual,
the most successful adaptation to the universal conditions of existence, coupled with the greatest possible
freedom of self-determination.
For example- he has a very pleasant personality, or he was an influential personality in genetic engineering.
9 Characteristics of Personality
The term personality is used in various senses. Generally, it is used to indicate the external outlook of an
individual. In philosophy, it means internal quality.
But in social psychology, the term personality indicates neither the external nor outward pattern nor the
internal quality. It means an integrated whole. In the modem world and psychology, it has come to indicate
the sum total of an individual’s characteristics and qualities.
Various thinkers, social psychologists, and others have defined personality in various ways. It is a sum of
physical, mental, and social qualities in an integrated manner.
Thus, personality is the sum of a person’s ideas, attitudes, and values, which determine his role in society and
form an integral part of his character. The individual acquires personality as a result of his participation in
group life. It refers to something much more essential and enduring about a person.
Beyond this basic point of agreement, personality has other characteristics or features in common.
1. Personality is something that is unique in each individual

2. Personality refers particularly to the persistent qualities of an individual.
3. Personality represents a dynamic orientation of an organism to the environment.
4. Social interactions greatly influence personality.
5. Personality represents a unique organization of persistent dynamic and social predisposition.
6. Consistency
7. Psychological and physiological
8. It impacts behaviours and actions.
9. Multiple expressions
I. Personality is something that is unique in each individual

Personality refers to internal and external qualities, some of which are quite general. But it is unique to each
individual. A person can’t reproduce or imitate the qualities of another person’s personality.
II. Personality refers particularly to the persistent qualities of an individual.

Every individual has certain feelings and other permanent traits and qualities.
Personality is mainly composed of persistent or permanent qualities that exhibit themselves in the form of
social behavior and an attempt to adjust to the environment.
III. Personality represents a dynamic orientation of an organism to the environment.

Personality represents the process of learning. It takes place about the environment. We do not acquire all the
traits of personality at once.
IV. Social interactions greatly influence personality.

Personality is not an individual quality. It is a result of social- interaction.
In other words, it means that when we come in contact with other members of society, we acquire certain
qualities while We exhibit certain others. All these come to form personality.
V. Personality represents a unique organization of persistent dynamic and social predisposition.

In personality, various qualities are not put together.
They are, in fact, integrated into one. This integration is nothing but a result of organization which may be
different from man to man. The behavior of a person directed to one particular individual may differ from that
of another.
That is why; we put the condition of a suitable environment. This suitability is concerned with individual
specificity.
VI. Consistency
There is generally a recognizable order and regularity to behaviors. Essentially, people act in the same or
similar ways in various situations.
VII. Psychological and physiological

Personality is a psychological construct, but research suggests that biological processes and needs also
influence it.
VIII. It impacts behaviors and actions.

Personality does not just influence how we move and respond in our environment; it also causes us to act in
certain ways.
IX. Multiple expressions

Personality is displayed in more than just behavior. It can also be seen in our thoughts, feelings, close
relationships, and other social interactions.
Personality is the unique combination of patterns that influence a human’s behavior, thought, motivation, and
emotion. There are many approaches to the modem psychological study of personality, including the
psychodynamic, learning, humanistic, biological, trait, and cultural perspectives.
It can be described as how a person affects others, how he understands and views himself, and his pattern of
inner and outer measurable traits. It encompasses a person’s relatively stable feelings, thoughts, and behavioral
patterns.
In fact, our personality changes over long periods of time.
10 Factors of Personality
In the field of organizational behavior, personality is the aggregate of a person’s feelings, thinking, behaviors,
and responses to different situations and people.
Our personality differentiates us from other people, and understanding someone’s personality gives
clues about how that person is likely to act and feel in various situations. An understanding of different
employees’ personalities is helpful in effectively managing organizational behavior.
Having this knowledge is also useful for placing people in jobs and organizations. Having a strong personality
is the key to success. This is also a key determinant of good leadership.
A person with a positive attitude can direct his thoughts, control his emotions and regulate his attitude. Every
person has a different personality, and there are a lot of factors that contribute to that personality. We call
them the ‘determinants of personality or the factors of personality.
1. Environmental Factors
2. Physical Factors
3. Situational Factors
4. Hereditary
5. Family and Social Factors
6. Identification Process
7. Cultural Factors
8. Intelligence
9. Sex Differences
10. Psychological Factors
i. Environmental Factors
The factors that exert pressure on our personality formation are the culture in which we are raised; our early
conditioning; the norms among our family, friends, and social groups; and other influences we experience.
These environmental factors play a substantial role in shaping our personalities.
It establishes an individual’s attitudes, values, norms, and perceptions. Based on cultures and traditions,
different senses of right and wrong are formed in individuals.
These environmental factors also include the neighborhood a person lives in, his school, college, university,
workplace, friends, and parents; everybody plays a role as the determinant of one’s personality.
ii. Physical Factors

Many physical factors will determine a person’s personality. These physical factors include the overall
physical structure of a person: his height, weight, color, sex, beauty, body language, etc.
Physical factors are one of the major reasons for that. Most physical structures change from time to time, and
so does personality. With exercises, cosmetics, surgeries, etc., many physical features are changed; therefore,
the individual’s personality also evolves.
iii. Situational Factors

Situational factors can be commonly observed when a person behaves contrastingly and exhibits different
traits and characteristics. In this way, situational factors impact a personality in a significant way.
They often bring out the traits of a person that are not commonly seen. Although generally stable and
consistent, an individual’s personality changes in different situations.
The different demands of situations call forth different aspects of one’s personality. So we shouldn’t look at
personality patterns in isolation. This aspect is very important for organizational behavior because the manager
controls the situation.
iv. Hereditary
Heredity refers to those factors that were determined at conception. Physical structure, facial attractiveness,
gender, temperament, muscle composition, reflexes, energy level, and biological rhythms are generally
considered to be either completely or substantially influenced by the parents.
Hereditary predisposes certain mental, physical, and emotional states. Research has established that those
psychological characteristics can be transmitted through heredity. However, such conclusive proof is not
available to human beings.
v. Family and Social Factors
Family and social groups have the most significant impact on personality development. Parents and other
family members have a strong influence on the personality development of the child. Parents have more effect
on personality development as compared to other members of the family.
Besides a person’s home environment and family members, there are other influences from social factors like-
friends, neighbors, relatives, etc. These groups have their impact through socialization and identification
process.
vi. Identification Process

The identification process occurs when a person tries to identify himself with some person to whom he feels
ideal in the family.
First, identification can be viewed as the similarity of behavior between the child and the model.
Second identification can be looked at as the child’s motives or desires to be like the model.
Third, it can be viewed as the process through which the child takes on the model’s attributes.
vii. Cultural Factors

Culture is the underlying determinant of human decision-making. It generally determines attitude towards
independence, aggression, competition, and cooperation. Each culture expects and trains its members to
behave in a way acceptable to the group.
viii. Intelligence
There is definitely some relationship between intelligence and personality. Intelligence is mainly hereditary.
Very intelligent persons can make better adjustments at home, school, and society than those persons who are
less intelligent.
ix. Sex Differences

Boys are generally more assertive, tough-minded, and vigorous. They have a better need to succeed with
regard to interests and aptitudes. Boys show interest in machinery and outdoor activities. They prefer
adventures.
But girls are less vigorous in games. They are quieter and interested in personal appearance. Personal,
emotional, and social problems injure them more.
Thus sex differences play a vital role in the development of an individual’s personality.
x. Psychological Factors
Psychological factors play a big role in the functioning of human behavior and the development of one’s
personality. Some psychological factors are- motives, acquired interests, attitudes, character, intellectual
capacities, etc.
Beyond the joint influence of these factors, however, the relative contribution of each factor to personality
varies with the character or personality process involved and perhaps with the individual concerned.
Roles of Personality in Organizational Behavior
Personality plays a key role in organizational behavior because the way that people think, feel, and behave
affects many aspects of the workplace. People’s personalities influence their behavior in groups, their
attitudes, and the way they make decisions.
In the workplace, personality affects such things as motivation, leadership, performance, and conflict. The
more management understands how personality in organizational behavior works, the better equipped they
are to effectively accomplish their goals.
One factor determining the importance of personality in OB is the environment where an individual’s
personality is being studied; after all, personality’s impact on an organization is relative and depends
on how the organization has been structured.
Weakly structured organizations with loosely defined roles tend to get the most impact compared to strongly
structured organizations with more defined roles. People have many different views of the world that affect
their personalities.
When a situation arises, an individual will handle it based on his or her personal values, beliefs, and personality
traits. These traits are developed throughout a person’s lifetime and cannot be easily changed, so it is more
helpful for managers to attempt to understand this rather than fight it.
There are two types of values governing our behaviors in an organization; personal and commonly held
values of an organization.
We tend to act according to these values, which will define what is ethical and what is not. The beliefs and
values remain relatively stable regardless of our situation.
On the other hand, our feelings and behaviors tend to be easily influenced by the environment in which we
function.
Traits such as openness, emotional stability, and agreeableness predict that an individual will have less
conflict, work better in teams, and have positive attitudes about his or her work.
People with this personality type should be placed in situations where they would be working with or
leading others. Positive-interpersonal skill is a personality trait that greatly affects the workplace.
Individuals who exhibit this trait generally enjoy working with others, and they have the empathy and
sensitivity that enable them to get along well with others.
Decision-making and independence are greatly affected by personality.
Personality traits such as self-efficacy, conscientiousness, and pro-activity contribute to good decision-
making under pressure and independence, while traits such as neuroticism and not being open do not.
In light of these reflections, our personal values and personalities govern our actions and behaviors. Since
organizational behavior is built upon our personal values, it is paramount to understand employees’
personalities to make good use of organizational behavior.
One of the fundamental issues in understanding people’s behavior is how we understand the person in an
organizational setting.
Jackson and Carter (2000) pointed out that in work organizations, we often take a limited view of the person,
focusing more on the degree of willingness to pursue organizational goals.
Work-related behavior of people in an organization stems from environmental and individual factors.
From the environmental approach, interpersonal, group, and societal influences and individual factors extend
across cognitive abilities, acquired expertise, personality styles, motivation, and physical attributes.
A common aspect of personality is how we think of its effect on behavior. We tend to think of this in terms of
a person with a particular set of traits.
Now that you have a clear idea about personality. Take a deep dive in studying with our full guideline
on organizational behavior.

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HSS (industrial Economics)

What is the management?

As an activity, management looks at the daily tasks and accomplishments of an

What Is The Nature And Scope Of Management?

As we’ve already established, different people view management differently. Therefore,

Clearly defined responsibilities, concepts, theories and principles related to managerial

The scope of management in marketing extends to planning, organizing, directing and

Personnel management—as the name suggests—deals with personnel or individuals in a

The different approaches of management are

B) THE BEHAVIORAL APPROACH

C). THE QUANTITATIVE APPROACH:

Elements of Scientific Management:

Scientific Task and Rate-Setting (work study)

Motion Study: It is a study of the movement, of an operator (or even of a

Time Study (work measurement): The basic purpose of time study is to

Rate-setting: Taylor recommended the differential piece wage system, under

Selection and Training: Scientific Management requires a radical

Standardization : Standardization may be introduced in respect of the

Speed: There is usually an optimum speed for every machine. If it is exceeded, it is

Conditions of Work: To attain standard performance, the maintenance of

Specialization: Scientific management will not be complete without

The Inspector: To show to the worker how to do the work.

Mental Revolution: At present, industry is divided into two groups –

Henry Fayol’s 14 Principles of Management:

The principles of management are given below:

Division of work: Division of work or specialization alone can give maximum

Authority and Responsibility: The right to give order is called authority.

Unity of Command: In order to avoid any possible confusion and conflict,

Unity of Direction: All members of an organization must work together to

Emphasis on Subordination of Personal Interest to General or Common

Centralization: There must be a good balance between centralization and

Scalar Chain: The unity of command brings about a chain or hierarchy of

Equity: An organization consists of a group of people involved in joint

Esprit of Co-operation: Esprit de corps is the foundation of a sound

The 3 Different Levels of Management

1. Administrative, Managerial, or Top Level of Management

2. Executive or Middle Level of Management

3. Supervisory, Operative, or Lower Level of Management

• Assigning jobs and tasks to various workers.

Levels of Management Summary

The key takeaways from this distinction are as follows:

Types of Organisation and their Structure

2. Line and Staff Organisation

There is a clear division of accountability, authority and responsibility in the line

Advantages of Line organisation

1. Simple structure and easy to run

2. Instructions and hierarchy clearly defined

3. Rapid decision making

4. Responsibility fixed at each level of the organisation.

Disadvantages of Line organisation:

2. It has a tendency to become dictatorial.

Advantages of Line and Staff organisation

1. Easy decision making as work is divided.

2. Greater coordination between line and staff workers.

3. Provides workers the opportunity for growth.

Disadvantages of Line and Staff Organisation

Functional Organisation: Functional organisation structure is the type of organisation

Advantages of Functional organisation

2. Improvement in product quality due to involvement of specialists.

Disadvantages of Functional organisation

1. It is difficult to achieve coordination among workers as there is no one to manage them

2. Conflicts may arise due to the members having equal positions.