Management

According to F.W. Taylor, “Management is an art of knowing what to do, when to do and see that it is done in
the best and cheapest way”.
NATURE OF MANAGEMENT
Management is Goal-Oriented: The success of any management activity is assessed by its achievement of the
predetermined goals or objective. Management is a purposeful activity. It is a tool which helps use of human &
physical resources to fulfill the pre-determined goals.
Management integrates Human, Physical and Financial Resources: In an organization, human beings work
with non-human resources like machines, materials, financial assets, buildings etc. Management integrates
human efforts to those resources. It brings harmony among the human, physical and financial resources.
Management is Continuous: Management is an ongoing process. It involves continuous handling of problems
and issues. It is concerned with identifying the problem and taking appropriate steps to solve it.
Management is all Pervasive: Management is required in all types of organizations whether it is political,
social, cultural or business because it helps and directs various efforts towards a definite purpose. Thus clubs,
hospitals, political parties, colleges, hospitals, business firms all require management. When ever more than one
person is engaged in working for a common goal, management is necessary. Whether it is a small business firm
which may be engaged in trading or a large firm like Tata Iron & Steel, management is required everywhere
irrespective of size or type of activity.
Management is dynamic: Management has framed certain principles, which are flexible in nature and change
with the changes in the environment in which an organization exits.
Multidisciplinary: Management is multidisciplinary because it includes knowledge/information from various
disciplines- economics, statistics, mathematics, psychology, sociology, ecology, operations research, history,
Management is a Group Activity: Management is very much less concerned with individual’s efforts. It is
more concerned with groups. It involves the use of group effort to achieve predetermined goal.
Management Administration
• Technical and Human skills • Conceptual and Human skills
• Middle & lower level function • Top level function
• It is applicable to business concerns i.e. • It is applicable to non-business concerns i.e.
profit-making organization. clubs, schools, hospitals etc.
• The management decisions are influenced by • The administration is influenced by public
the values, opinions, beliefs & decisions of the opinion, govt. policies, religious
managers. organizations, customs etc.
• Management constitutes the employees of the Administration represents owners of the
organization who are paid remuneration (in the enterprise who earn return on their capital
form of salaries & wages). invested & profits in the form of dividend
• Management is an art of getting things done • It is concerned with formulation of broad
through others by directing their efforts objectives, plans & policies.
towards achievement of pre-determined
goals.
• Management is an executing function. • Administration is a decision-making
function.
• Management decides who should as it & • Administration decides what is to be done &
how should he do it. when it is to be done.

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 •Management is a doing function because • Administration is a thinking function
managers get work done under their because plans & policies are determined
supervision. under it.
• Management is an art of getting things done • It is concerned with formulation of broad
through others by directing their efforts objectives, plans & policies.
towards achievement of pre-determined
goals.
EVOLUTION OF MANAGEMENT
• 1910s-1940s: Management as Science
Management as Science was developed in the early 20th century and focused on increasing productivity
and efficiency through standardisation, division of labour, centralisation and hierarchy. A very ‘top
down’ management with strict control over people and processes dominated across industries.
• 1950s-1960s: Functional Organisations
Due to growing and more complex organisations, the 1950’s and 1960’s saw the emergence of
functional organisations and the Human Resource (HR) movement. Managers began to understand the
human factor in production and productivity and tools such as goal setting, performance reviews and job
descriptions were born.
• 1970s: Strategic Planning
In the 1970’s changed focus from measuring function to resource allocation and tools like Strategic
Planning (GE), Growth Share Matrix (BCG) and SWOT were used to formalise strategic planning
processes. After several decades of ‘best practice’ and ‘one size fits all’ solutions, academics began to
developing contingency theories.
• 1980s: Competitive Advantage
As the business environment grew increasingly competitive and connected, and with a blooming
management consultancy industry, Competitive Advantage became a priority for organisations in the
1980’s. Tools like Total Quality Management (TQM), Six Sigma and Lean were used to measure
processes and improve productivity. Employees were more involved by collecting data, but decisions
were still made at the top, and goals were used to manage people and maintain control.
• 1990s: Process Optimisation
Benchmarking and business process reengineering became popular in the 1990’s, and by the middle of
the decade, 60% of Fortune 500 companies claimed to have plans for or have already initiated such
projects. TQM, Six Sigma and Lean remained popular and a more holistic, organisation-wide approach
and strategy implementation took the stage with tools such as Strategy Maps and Balance Scorecards

• Scientific Management
• Fredrick Winslow Taylor ( March 20, 1856 - March 21, 1915) commonly known as ’Father of
Scientific Management’.
• According to Taylor, “Scientific Management is an art of knowing exactly what you want your men to
do and seeing that they do it in the best and cheapest way”.
• In Taylors view, if a work is analysed scientifically it will be possible to find one best way to do it.
PRINCIPLES OF SCIENTIFIC MANAGEMENT
1. Development of Science for each part of men’s job (replacement of rule of thumb)
2. Scientific Selection, Training & Development of Workers
3. Co-operation between Management & workers or Harmony not discord

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4. Division of Responsibility
5. Mental Revolution
6. Maximum Prosperity for Employer & Employees
TECHNIQUES OF SCIENTIFIC MANAGEMENT
Time Study

It is a technique which enables the manager to ascertain standard time taken for performing a specified job.
Motion Study
In this study, movement of body and limbs required to perform a job are closely observed.
In other words, it refers to the study of movement of an operator on machine involved in a particular task.
Functional Foremanship
Taylor advocated functional foremanship for achieving ultimate specification. This technique was developed to
improve the quality of work as single supervisor may not be an expert in all the aspects of the work.
Standardization
It implies the physical attitude of products should be such that it meets the requirements & needs of customers.
Taylor advocated that tools & equipments as well as working conditions should be standardized to achieve
standard output from workers.
Differential Piece Wage Plan
This tech of wage payment is based on efficiency of worker.
The efficient workers are paid more wages than inefficient one.
On the other hand, those workers who produce less than standard no. of pieces are paid wages at lower rate than
prevailing rate i.e. worker is penalized for his inefficiency.
This system is a source of incentive to workers who improving their efficiency in order to get more wages.
It also encourages inefficient workers to improve their performance and achieve their standards.
It leads to mass production which minimizes cost and maximizes profits.
Other Techniques
Various other techniques have been developed to create ordeal relationship between management and workers
and also to create better understanding on part of works.
Those includes use of instruction cards, strict rules & regulations, graphs, slides, charts etc, so as to increase
efficiency of workers.
ADMINISTRATIVE THEORY
Hentry Fayol( 1841- 1925) was a French Management Theorist. He proposed 14 general management
principles for smooth running of the organisation.
• Division of Labor
• Party of Authority & Responsibility
• Unity of Command
• Unity of Direction
• Equity
• Order
• Discipline
• Initiative
• Fair Remuneration
• Stability of Tenure

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 • Scalar Chain
• Gang Plank clarifies that management principles are not rigid rather they are very flexible. They can be
moulded and modified as per the requirements of situations
• Sub-Ordination of Individual Interest to General Interest
• Espirit De’ Corps (can be achieved through unity of command)
• Centralization & De-Centralization

BALANCED SCORE CARD

The balanced scorecard is a strategic planning and management system that is used extensively in business and
industry, government, and nonprofit organizations worldwide to align business activities to the vision and
strategy of the organization, improve internal and external communications, and monitor organization
performance against strategic goals.
MANAGEMENT AS A SCIENCE
Science is a systematic body of knowledge pertaining to a specific field of study that contains general facts
which explains a phenomenon. It establishes cause and effect relationship between two or more variables and
underlines the principles governing their relationship. These principles are developed through scientific method
of observation and verification through testing
● Universally acceptance principles
● Experimentation & Observation
● Cause & Effect Relationship
● Test of Validity & Predictability
MANAGEMENT AS AN ART
Art implies application of knowledge & skill to trying about desired results. An art may be defined as
personalized application of general theoretical principles for achieving best possible results
● Practical Knowledge
● Personal Skill
● Creativity
● Perfection through practice
● Goal-Oriented:
EVOLUTION OF MANAGEMENT THOUGHT
The evolution of management thought can be studied under the following headings:
❖ Pre- scientific management period.
❖ Early management approaches represented by scientific management, process management
theory and human relations movement.
1. Scientific Management
2. Process Management
3. Human relations movement
❖ Modern management approaches represented by behavioral science movement, quantitative
approach, systems approach etc
Behavioural Science Movement
The behavioral science movement which started after 1940 emphasized the importance of individuals
and their interpersonal relationship, psychology of the individuals as related to personal needs and
motivation and motivational potential in people. The important contributors to the behavioral science
movement are A.Maslow, F.Hertzberg, V.Vroom and D.McGregor.
PLANNING

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It is the basic function of management. It deals with chalking out a future course of action & deciding in
advance the most appropriate course of actions for achievement of pre-determined goals.
According to KOONTZ, “Planning is deciding in advance - what to do, when to do & how to do. It bridges the
gap from where we are & where we want to be”.
Nature / Characteristics of Planning
1. Planning is an Intellectual Process
2. Goal Oriented
3. Planning is a Primary Function
4. A continuous Process
5. All pervasive
6. Involves choice
7. Flexible
8. Forward Looking
IMPORTANCE OF PLANNING
1. Reduction of Uncertainty
2. Better Utilization of Resources
3. Increases Organizational Effectiveness
4. Helps in Co-ordination
5. Makes Control Effective
6. Encouragement to Innovation
7. Delegation is Facilitated
8. Economical
9. Provides Direction
Planning Premises
Planning premises are the basic assumptions about the environment. These assumptions are essential to make
plans more realistic and operational.
Planning premises provide a framework. All plans are made within this framework. There are many
environmental factors, which influence the plan. Assumptions are made about these factors. These assumptions
are called premises
Types of Planning Premises
Internal Premises come from the business itself. It includes skills of the workers, capital investment policies,
philosophy of management, sales forecasts, etc.
External Premises come from the external environment. That is, economic, social, political, cultural and
technological environment. External premises cannot be controlled by the business.
Controllable Premises are those which are fully controlled by the management. They include factors like
materials, machines and money.
Semi-controllable Premises are partly controllable. They include marketing strategy.
Uncontrollable Premises are those over which the management has absolutely no control. They include
weather conditions, consumers' behaviour, government policy, natural calamities, wars, etc.
Tangible Premises can be measured in quantitative terms. They include units of production and sale, money,
time, hours of work, etc.
Intangible Premises cannot be measured in quantitative terms. They include goodwill of the business,
employee's morale, employee's attitude and public relations.
Constant Premises do not change. They remain the same, even if there is a change in the course of action.
They include men, money and machines.
Variable Premises are subject to change. They change according to the course of action. They include
union-management relations
Steps in Planning
1. Establishing objectives
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 2. Establishment of Planning Premises
3. Determining Alternative Courses
4. Evaluation of Alternatives
5. Selecting a Course of Action
6. Formulating Derivative Plans
7. Establishing Sequence of Activities
8. Feedback or Follow-up Action
TYPES OF PLAN
1. Corporate Plan ( Long Range)
2. Operational Plan (Short Range)
3. Tactical Plan
4. Contingency Plan
LIMITATIONS OF PLANNING
1. Rigidity
2. Misdirected Planning
3. Time consuming
4. False sense of security
5. Expensive
ORGANIZING
It is the process of bringing together physical, financial and human resources and developing productive
relationship amongst them for achievement of organizational goals. According to Henry Fayol, “To organize a
business is to provide it with everything useful or its functioning i.e. raw material, tools, capital and
personnel’s”.
ORGANIZING PROCESS
1. Identifying the work
2. Grouping the work
3. Establishing relationships
4. Delegating authority
5. Providing for coordination and control
Importance of Organizing Function
1. Specialization
2. Well defined jobs
3. Clarifies authority
4. Co-ordination
5. Effective administration
6. Growth and diversification
Types of Organizations
1. Economic Organisations
2. Political Organisations
3. Integrative Organisations
4. Pattern maintenance Organisations
5. Commonweal Organisations
SPAN OF CONTROL

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"Span of control refers to the number of people that a manager can supervise”. According to this principle, span
of control is a span of supervision which depicts the number of employees that can be handled and controlled
effectively by a single manager.
ORGANIZATIONAL STRUCTURE
Line organization is the most oldest and simplest method of administrative organization. According to this type
of organization, the authority flows from top to bottom in a concern. The line of command is carried out from
top to bottom.
features of line organization
• It is the most simplest form of organization.
• Line of authority flows from top to bottom.
• Specialized and supportive services do not take place in these organization.
• Unified control by the line officers can be maintained since they can independently take
decisions in their areas and spheres.
• This kind of organization always helps in bringing efficiency in communication and bringing
stability to a concern.
line & staff organization
Line and staff organization is a modification of line organization and it is more complex than line organization.
According to this administrative organization, specialized and supportive activities are attached to the line of
command by appointing staff supervisors and staff specialists who are attached to the line authority. The power
of command always remains with the line executives and staff supervisors guide, advice and council the line
executives. Personal Secretary to the Managing Director is a staff official.
functional organization
The concept of Functional organization was suggested by F.W. Taylor who recommended the appointment of
specialists at important positions. This is an organization in which we can define as a system in which
functional department are created to deal with the problems of business at various levels. Functional authority
remains confined to functional guidance to different departments. This helps in maintaining quality and
uniformity of performance of different functions throughout the enterprise.
DELEGATION

Delegation of authority can be defined as subdivision and sub-allocation of powers to the subordinates in order
to achieve effective results. Delegation of Authority means division of authority and powers downwards to the
subordinate.
Elements of Delegation
Authority
Responsibility
Accountability
Types of Delegation
1. Specific or General
2. Written or Unwritten
3. Formal or Informal
Principles of Delegation
1. Principle of result excepted
2. Principle of Parity of Authority and Responsibility

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 3. Principle of absolute responsibility
4. Principle of Authority level
CENTRALIZATION AND DECENTRALIZATION
Centralization is the systematic and consistent reservation of authority at central points in the organization. It is
a process where the concentration of decision making is in a few hands. All the important decision and actions
at the lower level are subject to the approval of top management.
Reservation of decision making power at top level. Reservation of operating authority with the middle level
managers. Reservation of operation at lower level at the directions of the top level.
Decentralization is a systematic delegation of authority at all levels of management and in all of the
organization. In a decentralization concern, authority in retained by the top management for taking major
decisions and framing policies concerning the whole concern. Rest of the authority may be delegated to the
middle level and lower level of management.
Delegation Decentralization
▪ Managers delegate some of their function and ▪ Right to take decisions is shared by top
authority to their subordinates. management and other level of management.
▪ Scope of delegation is limited as superior ▪ Scope is wide as the decision making is shared
delegates the powers to the subordinates on by the subordinates also.
individual bases.
▪ Responsibility remains of the managers and ▪ Responsibility is also delegated to
cannot be delegated subordinates.
▪ It is a routine function ▪ It is an important decision of an enterprise.
STAFFING
It is the function of manning the organization structure and keeping it manned. Staffing has assumed
greater importance in the recent years due to advancement of technology, increase in size of business,
complexity of human behavior etc.
Staffing involves:
Manpower Planning (estimating man power in terms of searching, choose the person and giving the right place).
Recruitment, selection & placement.
Training & development.
Remuneration.
Performance appraisal.
Promotions & transfer
Staffing process
1. Job analysis
2. Man power planning
3. Recruitment
4. Selection
Job analysis
Job analysis is a formal and detailed examination of jobs. It is a systematic investigation of the tasks, duties and
responsibilities necessary to do a job.
Job analysis is an important personal activity because it identifies what people do in their job & what they
require in order to do the job satisfactorily.

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Process Of Job analysis
1. Organiosational analysis
2. Selection of representative positions to be analysed
3. Collection of job analysis data
4. Preparation of Job description
5. Preparation of job specification
6. Report Preparation
7. Report Approval
Uses of Job Analysis
1. HRP
2. Recruitment
3. Selection
4. Placement & Orientation
5. Training
6. Counseling
7. Employee Safety
8. Performance Appraisal
9. Job Design & redesign
10. Job Evaluation
Methods of collecting of job analysis data
Job Performance
Personal observations
Critical Incidents
Interview
Panel of Experts
Dairy Methods
Questionnaire Method
Job Description
It is written statement of what the job is all about. This describes what the job holder does, how it is done, under
what condition it is done & why it is done. It defines the purpose and scope of a job. The main purpose of
writing a job description is to differentiate the job from other jobs
Job Specification
Job Specification summerises the human characteristics needed for satisfactory job completion. It describes the
important attributes a person requires in terms of education, experience, age, skill, knowledge and abilities to
perform a job.
Manpower Planning/ HRP
The process of getting the right number of qualified people into the right job at the right time, so that an
organization can meet its objectives.
Process of anticipating and making provision for the movement (flow) of people into, within, and out of an
organization.
Process of Manpower planning
1. Preparation of manpower inventory
2. Forecasting manpower need
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 3. Employment programme
4. T&D
Objectives
1. Accurate assessment of manpower requirement
2. Optimum use of human resources
3. To ensure supply for future use
4. Cope with changes
5. Promote employee in a systematic manner
RECRUITMENT
Recruitment is the process of locating and encouraging potential applicants to apply for existing or anticipated
job openings.
According to Edwin B Flippo, “ Recruitment is the process of searching for prospective employees and
stimulating them to apply for jobs in the organisation”.
Sources of Recruitment
1.Internal Sources:
a. Transfer
b. Promotion
c. Present Employees
External Sources:
a. Notice at Factory gate
b. Unsolicited application
c. Casual callers
d. Employment exchanges
e. Colleges, Institutions, etc
f. Private agencies
g. Trade Unions
SELECTION
Selection is the process of picking individuals who have relevant qualification to fill jobs in an organisation.
Selection is the process of evaluating the qualifications, experience, skill, knowledge, etc, of an applicant in
relation to the requirements of the job to determine his suitability for the job.
Selection Process
1. Receiving Application
2. Screening Application
3. Application Blank
4. Selection Test
5. Selection Interview
6. Medical Examination
7. Reference Checks
8. Placement
9. Induction
RECRUITMENT SELECTION

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 • It is an activity of establishing contact between • It is a process of picking up more competent
employers and applicants. and suitable employees.
• It encourages large number of Candidates for a • It attempts at rejecting unsuitable candidates.
job.
• It is a positive approach. • It is a negative approach.
It is an economical method It is an expensive method
• It is an activity of establishing contact between • It is a process of picking up more competent
employers and applicants. and suitable employees.
PLACEMENT
Dale Yoder, “Placement means the determination of the jobs to which an accepted candidate is to be assigned to
that job.”
Placement is said to be the process of fitting the selected person at the right job or place.
TRAINING
Edwin B Flippo, “Training is the act of increasing the knowledge and skill of an employee for doing a particular
job.”
It is a systematic procedure of transferring technical knowledge to workers for doing particular type of works.
Uses of Training
1. Increase efficiency & productivity
2. Develop confidence & increase morale
3. Impart new knowledge & Technology
4. Less Supervision
5. Less wastage
6. Reduction in accidents & break downs
7. Reduce employee turnover & absenteeism
Types of Training
1. Orientation/ Induction training
2. Job Training
3. Promotional Training
4. Refresher Training
5. Craft Training
Methods of Training
1. On the job Training
a. Coaching
b. Understudy
c. Job rotation
2. Off the job Training
a. Special courses
b. Conferences
c. Case study
d. Seminars
e. Role play
Other methods
1. Apprenticeship Training

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 2. Vestibule Training
3. Internship Training
4. Learner Training
DIRECTING
It is that part of managerial function which actuates the organizational methods to work efficiently for
achievement of organizational purposes. It is considered life-spark of the enterprise which sets it in motion the
action of people because planning, organizing and staffing are the mere preparations for doing the work.
Direction is that inert-personnel aspect of management which deals directly with influencing, guiding,
supervising, motivating sub-ordinate for the achievement of organizational goals
Direction has following elements:
Supervision
Motivation
Leadership
Communication
Importance of Direction
➢ Direction initiates actions to get the desired results in an organisation.
➢ Direction attempts to get maximum out of employees by identifying their capabilities.
➢ Direction is essential to keep the elements like Supervision, Motivation, Leadership and
Communication effective.
➢ It ensures that every employee work for organisational goals.
➢ Coping up with the changes in the Organisation is possible through effective direction.
➢ Stability and balance can be achieved through directing.
Principles of Direction
➢ Principle of harmony of objectives
➢ Principle of unity of command
➢ Efficiency of Direction
➢ Maintain individual contribution
➢ Direct Supervision
➢ Intelligibility
➢ Communication
➢ Flow of information
➢ Follow - up
Direction Supervision

• Leading in nature • Controlling in nature

• Performed at every level • Mainly at operational level
• It does not require frequent face to face contact • It require frequent contact with subordinates
with subordinates
• A top level activity • A lower level activity
CO-ORDINATION
Koontz O’ Donnel, “ Co-ordination is the essence of management for the achievement of harmony of individual
efforts towards the accomplishment of group goals.”
Co-ordination is orderly arrangement of group efforts to provide unity of action in the pursuit of common goals

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CONTROLLING
It implies measurement of accomplishment against the standards and correction of deviation if any to ensure
achievement of organizational goals. The purpose of controlling is to ensure that everything occurs in
conformities with the standards. An efficient system of control helps to predict deviations before they actually
occur.
controlling has following steps:
▪ Establishment of standard performance.
▪ Measurement of actual performance.
▪ Comparison of actual performance with the standards and finding out deviation if any.
Corrective action
Features of Controlling Function
Controlling is an end function
Controlling is a pervasive function
Controlling is forward looking
Controlling is related with planning
Controlling is a dynamic process
Process of Controlling
Establishment of standards
Measurement of performance
Comparison of actual and standard performance
Taking remedial actions
Follow up
LEADERSHIP
Leadership is the process of influencing the behaviour of others to work willingly and enthusiastically for
achieving predetermined goals. It is an essential ingredient for successful organisation.
Leadership is a process by which a person influences others to accomplish an objective and directs the
organization in a way that makes it more cohesive and coherent.
Factors of Leadership
There are four primary factors of leadership
• Leader
• Followers
• Communication
• Situation
Leadership – Theories
1. "Great Man" Theories:

According to this point of view, great leaders are simply born with the necessary internal characteristics such as
charisma, confidence, intelligence, and social skills that make them natural-born leaders. Great man theories
assume that the capacity for leadership is inherent – that great leaders are born, not made.
2 Trait Theories:
Trait theories assume that people inherit certain qualities and traits that make them better suited to leadership.
Trait theories often identify particular personality or behavioral characteristics shared by leaders. For example,

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traits like extraversion, self-confidence, and courage are all traits that could potentially be linked to great
leaders.
3. Contingency Theories:
Contingency theories of leadership focus on particular variables related to the environment that might determine
which particular style of leadership is best suited for the situation. According to this theory, no leadership style
is best in all situations. Success depends upon a number of variables, including the leadership style, qualities of
the followers and aspects of the situation.
4. Situational Theories:
Situational theories propose that leaders choose the best course of action based upon situational variables.
Different styles of leadership may be more appropriate for certain types of decision-making. For example, in a
situation where the leader is the most knowledgeable and experienced member of a group, an authoritarian style
might be most appropriate. In other instances where group members are skilled experts, a democratic style
would be more effective.
5. Participative Theories:
Participative leadership theories suggest that the ideal leadership style is one that takes the input of others into
account. These leaders encourage participation and contributions from group members and help group members
feel more relevant and committed to the decision-making process.
6. Management Theories:
Management theories, also known as transactional theories, focus on the role of supervision, organization and
group performance. These theories base leadership on a system of rewards and punishments.
LEADERSHIP – IMPORTANCE
• Initiates action- Leader is a person who starts the work by communicating the policies and plans to the
subordinates from where the work actually starts.
• Motivation- A leader proves to be playing an incentive role in the concern’s working. He motivates the
employees with economic and non-economic rewards and thereby gets the work from the subordinates.
• Providing guidance- A leader has to not only supervise but also play a guiding role for the
subordinates. Guidance here means instructing the subordinates the way they have to perform their work
effectively and efficiently.
• Creating confidence- Confidence is an important factor which can be achieved through expressing the
work efforts to the subordinates, explaining them clearly their role and giving them guidelines to achieve
the goals effectively. It is also important to hear the employees with regards to their complaints and
problems.
• Building morale- Morale denotes willing co-operation of the employees towards their work and getting
them into confidence and winning their trust. A leader can be a morale booster by achieving full
co-operation so that they perform with best of their abilities as they work to achieve goals.
• Builds work environment- Management is getting things done from people. An efficient work
environment helps in sound and stable growth. Therefore, human relations should be kept into mind by a
leader. He should have personal contacts with employees and should listen to their problems and solve
them. He should treat employees on humanitarian terms.
• Co-ordination- Co-ordination can be achieved through reconciling personal interests with
organizational goals. This synchronization can be achieved through proper and effective co-ordination
which should be primary motive of a leader
Basis Manager Leader

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 A person becomes a manager by A person becomes a leader on basis
Origin
virtue of his position. of his personal qualities.
Manager has got formal rights in
Formal Rights an organization because of his Rights are not available to a leader.
status.
The subordinates are the followers The group of employees whom the
Followers
of managers. leaders leads are his followers.
A manager performs all five Leader influences people to work
Functions
functions of management. willingly for group objectives.
A leader is required to create
A manager is very essential to a
Necessity cordial relation between person
concern.
working in and for organization.
LEADERSHIP AND MOTIVATION
Motivation is a goal-oriented characteristic that helps a person achieve his objectives. It pushes an individual to
work hard at achieving his or her goals. As a leader, one should keep an open perspective on human nature.
Knowing different needs of subordinates will certainly make the decision-making process easier. Both an
employee as well as manager must possess leadership and motivational traits.
An effective leader must have a thorough knowledge of motivational factors for others. He must understand the
basic needs of employees, peers and his superiors. Leadership is used as a means of motivating others.
• Harmonize and match the subordinate needs with the organizational needs
• Appreciation and rewards
• Being a role model
• Encouraging individuals to get involved in planning and important issues resolution
• Developing moral and team spirit
• Empathy
LEADERSHIP QUALITIES
• Integrity:
• Self-Confidence
• Commitment
• Enthusiasm:
• Self-awareness and adaptability
• Future vision
• Creativity
• Ability to understand people
• Ability to inspire and motivate
• Openness
• Communication skills
LEADERSHIP STYLES
Laissez-Faire
A laissez-faire leader lacks direct supervision of employees and fails to provide regular feedback to those under
his supervision. Highly experienced and trained employees requiring little supervision fall under the
laissez-faire leadership style. This leadership style hinders the production of employees needing supervision.
The laissez-faire style produces no leadership or supervision efforts from managers, which can lead to poor
production, lack of control and increasing costs.
Autocratic

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The autocratic leadership style allows managers to make decisions alone without the input of others. Managers
possess total authority and impose their will on employees. No one challenges the decisions of autocratic
leaders. This leadership style benefits employees who require close supervision. Creative employees who thrive
in group functions detest this leadership style.
Participative
Often called the democratic leadership style, participative leadership values the input of team members and
peers, but the responsibility of making the final decision rests with the participative leader. Participative
leadership boosts employee morale because employees make contributions to the decision-making process. It
causes them to feel as if their opinions matter. This style meets challenges when companies need to make a
decision in a short period.
Transactional
Managers using the transactional leadership style receive certain tasks to perform and provide rewards or
punishments to team members based on performance results. Managers and team members set predetermined
goals together, and employees agree to follow the direction and leadership of the manager to accomplish those
goals. The manager possesses power to review results and train or correct employees when team members fail
to meet goals. Employees receive rewards, such as bonuses, when they accomplish goals.
Transformational
The transformational leadership style depends on high levels of communication from management to meet
goals. Leaders motivate employees and enhance productivity and efficiency through communication and high
visibility. This style of leadership requires the involvement of management to meet goals. Leaders focus on the
big picture within an organization and delegate smaller tasks to the team to accomplish goals.
MOTIVATION
Stephen P Robbins says, “The willingness to exert high levels of effort towards organizational goals,
conditional by the effort ability to satisfy some individual needs
Nature of Motivation
➢ Unending Process
➢ Psychological Concept
➢ The whole individual is motivated
➢ Goals are Motivators
➢ Frustrated man cannot motivated
Importance of Motivation in Organization
▪ Employees are motivated to perform allotted task , look for better ways
▪ Motivated Employee -more quality oriented
▪ Highly Motivated – More Productive than adaptive workers
▪ Creative , Spontaneous and Innovative behaviour at work
▪ Comprehensive understanding of the way in which organization functions
▪ Developing employees as future resource
THEORIES OF MOTIVATION
Maslow's Hierarchy of Needs Theory
It was in 1943 a Psychologist Mr. Abraham Harold Maslow suggested his Theory of Human Motivation.
According to Maslow, human behavior is related to his needs. It is adjusted as per the nature of needs to be
satisfied. In hierarchy of needs theory, Maslow identified five types / sets of human need arranged in a hierarchy
of their importance and priority. He concluded that when one set of needs is satisfied, it ceases to be a
motivating factor. Thereafter, the next set of needs in the hierarchy order takes its place.
Frederick Herzberg Theory of Human Motivation
Frederick Herzberg's theory of motivation is also called 'Two Factor Theory', 'Dual Factor Theory' and
'Hygiene / Maintenance Theory of Motivation'.
This theory is based on the information collected by him and his associates (in the USA in 1959) by
interviewing two hundred engineers and accountants. The information collected relates to the attitude of people

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towards work. This attitude towards work depends on two sets of factors namely hygiene or maintenance
factors and the motivating factors.
Hygiene Factors of Two Factor Theory
According to Frederick Herzberg, the Hygiene Factors do little contribution to provide job satisfaction. He
called them "dissatisfiers' as their absence cause dissatisfaction but their presence is not motivating but only
prevent dissatisfaction. Hygiene factors (when provided) create a favorable environment for motivation and
prevents job dissatisfaction. They are not an intrinsic part of a job, but they are related to the conditions under
which a job is performed.
Douglas McGregor's - Theory of Motivation
The eminent psychologist Douglas McGregor has given his theory of motivation called Theory X and Theory Y.
He treated traditional approach to management as 'Theory X' and the professional approach to management as
'Theory Y'. His theory refers to two sets of employees based on the perception of human nature. Here, theory X
and theory Y are two sets of assumptions about the nature of employees. His theory is based on human
behavior.
Theory X.
Theory X is based on traditional assumptions about people (employees). Here, the conventional approach of
management is used as a base. It suggests the following features of an average human being/employee
(assumptions about human nature)
Assumptions of Theory X.
• The average human being is inherently lazy by nature and desires to work as little as possible. He
dislikes the work and will like to avoid it, if he can.
• He avoids accepting responsibility and prefers to be led or directed by some other.
• He is self-centered and indifferent to organizational needs.
• He has little ambition, dislikes responsibility, prefers to be led but wants security.
• He is not very intelligent and lacks creativity in solving organizational problems.
• He by nature resists to change of any type.
Theory Y.
Theory Y is based on modern or progressive or professional approach. Here, the assumptions about people i.e.
employees are quite different.
Assumptions of Theory Y.
• Work is as natural as play, provided the work environment is favorable. Work may act as a source of
satisfaction or punishment. An average man is not really against doing work.
• People can be self-directed and creative at work if they are motivated properly.
• Self-control on the part of people is useful for achieving organizational goal. External control and threats
of punishment alone do not bring out efforts towards organizational objectives.
• People have capacity to exercise imagination and creativity.
• People are not by nature passive or resistant to organizational needs. They have become so as a result of
experience in organisations.
• An average human being learns under proper conditions. He is also willing to accept responsibility.
• The intellectual capacity of an average human being is utilised partially under the conditions of modern
industrial life.
ERG theory
Clayton Alderfer reworked Maslow's Need Hierarchy to align it more closely with empirical research.
Alderfer's theory is called the ERG theory - Existence, Relatedness, and Growth.
Existence refers to our concern with basic material existence requirements; what Maslow called physiological
and safety needs.
Relatedness refers to the desire we have for maintaining interpersonal relationships; similar to Maslow's
social/love need, and the external component of his esteem need.

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 Growth refers to an intrinsic desire for personal development; the intrinsic component of Maslow's esteem
need, and self-actualization
MANAGEMENT BY OBJECTIVES(MBO)
This MBO concept was popularized by Peter Drucker. The concept of MBO is closely connected with the
concept of planning. . MBO is based on the assumption that people perform better when they know what is
expected of them and can relate their personal goals to organizational objectives.
It is a demanding and rewarding style of management. It concentrates attention on the accomplishment of
objectives through participation of all concerned persons, i.e., through team spirit.
It suggests that objectives should not be imposed on subordinates but should be decided collectively by a
concerned with the management. This gives popular support to them and the achievement of such objectives
becomes easy and quick.
MBO is a participative and democratic style of management. MBO involves the establishment of goals by
managers and their subordinates acting together, specifying responsibilities and assigning authority for
achieving the goals and finally constant monitoring of performance.
Features of MBO
➢ Superior-subordinate participation
➢ MBO as an Approach
➢ MBO as a Philosophy
➢ MBO emphasizes participatively set objectives that are tangible, verifiable, and measurable
➢ MBO is a Top-down or the Bottom-up Approach in Results Management
➢ MBO as a Performance Appraisal and Review
The Process of (MBO)
➢ Setting of Objectives
➢ Key Result Areas
➢ Setting of Subordinates Objectives
➢ Revision of Organizational Structure
➢ Matching Objectives and Resources
➢ Conducting Periodic Progress Reviews
➢ Performance Appraisal
➢ Feedback
Importance and Advantage of MBO
➢ Better Management of Organizational Activities
➢ Clarity in Organizational Action
➢ Provides Maximum Personnel Satisfaction
➢ Basis for Organisational Change
➢ Facilitates effective planning
➢ Raises employee morale
➢ Facilitates effective control
➢ Facilitates personal leadership
Weaknesses and Criticism of MBO
➢ Incomplete Understanding of MBO Philosophy
➢ Poor Planning and Lack of Guidelines
➢ Difficulty in Setting Objectives
➢ Inflexibility
➢ Increases Pressure and Frustration on the Subordinates
➢ Short Term Nature of Goals
➢ Time Consuming
TEAM:

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Small number of people with complimentary skills who are committed to a common purpose, common
performance goals & an approach for which they hold themselves mutually accountable
Types of team
1. Problem solving teams
2. Cross functional team:
3. Self –managing teams
4. Virtual teams
FIVE-STEP STAGES OF DEVELOPING A TEAM
Forming. The committee meets, outlines goals and processes, and begins building relationships while working
through potential problems with structure and leadership.

• Storming. An inevitable period of turmoil. Questions arise about leadership, accountability and the goals.
Members are uncomfortable as they learn that some can’t be counted on, or the reverse – they try to do
everything themselves.
Norming. The team reaches an agreement on goals, committee form and format. This period is characterized by
cooperation, mutual support and accord. Group norms are developed that allow the team to compensate for the
weaknesses of individual members.
• Performing. This is a period of accomplishment, achievement, productivity and pride as the committee works
together and reaches its goals.
• Adjourning. The committee members address their mixed feelings of accomplishment and loss as the team
achieves its goals. Success ultimately means that the team members must go their separate ways.
GROUP
‘A group is a collection of two or more people who interact with each other, and interdependent on each other for
a common purpose and perceive themselves to be a group’.
FEATURES:
• Two or more persons
• Interaction
• Reasonable size
• Shared goal interest
• Collective identity
TYPES OF GROUPS
1. Formal groups
A group created by formal authority to accomplish specific tasks. This is Classified into two namely:
Command Group:
It consists of subordinates who report to a common superior.
Task Group:
It consists of employees who work together to complete a particular task but who do not necessarily report to
the same superior.
Committee: Group of people working together to solve certain problems, exchange information of advise
management. It can be adhoc or standing committee.
Task Force: Usually created to tackle a specific problem.
Project Group: It is similar to task force, but the former tends to last longer than the latter. Main purpose is to
attain its objectives within predetermined time, cost & quality limits
2. Informal Groups
A group established by employees, rather than by the organisation, in order to serve group member’s interests &
social needs. It can be classified into three categories namely friendship group, interest group & reference
group.

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Friendship Group: They are formed by members having something in common such as social activities, political
belief, religious values or other bonds of attraction.
Interest Group: Individuals who may not be members of the same command or task group may affiliate to
achieve some mutual objective.
Reference Group: It is a group to which an individual would like to belong, to evaluate themselves by
comparing oneself to others
CONFLICT
Organizational conflict occurs when two or more parties, who have different objectives, values or attitudes
compete for the same resources. Conflicts can arise due to disagreements between individuals or departments
due to their dissimilar focus.
Causes of conflict
• scarcity of resources (finance, equipment, facilities, etc)
• different attitudes, values or perceptions
• disagreements about needs, goals, priorities and interests
• poor communication
• poor or inadequate organisational structure
• lack of teamwork
• lack of clarity in roles and responsibilities
TYPES OF CONFLICT
Interpersonal conflict refers to a conflict between two individuals. This occurs typically due to how people are
different from one another.
Intrapersonal conflict occurs within an individual. The experience takes place in the person’s mind. Hence, it
is a type of conflict that is psychological involving the individual’s thoughts, values, principles and emotions.
Intragroup conflict is a type of conflict that happens among individuals within a team. The incompatibilities
and misunderstandings among these individuals lead to an intragroup conflict.
Intergroup conflict takes place when a misunderstanding arises among different teams within an organization.
For instance, the sales department of an organization can come in conflict with the customer support
department. This is due to the varied sets of goals and interests of these different groups
METHODS TO RESOLVE CONFLICT
Negotiation: this is the process where mandated representatives of groups in a conflict situation meet together
in order to resolve their differences and to reach agreement. It is a deliberate process, conducted by
representatives of groups, designed to reconcile differences and to reach agreements by consensus.
Mediation: when negotiations fail or get stuck, parties often call in and independent mediator. This person or
group will try to facilitate settlement of the conflict.
Arbitration: means the appointment of an independent person to act as an adjudicator (or judge) in a dispute, to
decide on the terms of a settlement. Both parties in a conflict have to agree about who the arbitrator should be,
and that the decision of the arbitrator will be binding on them all

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