The Indian CEO: An Endangered Species?

In the space of a few years, the corporate environment in India has moved from a closed, planned economy into a global, wired and turbulent world economy. The rules of the game have changed suddenly. The license-permit-raj required CEOs to know the domestic market, know the government, make short-term plans, be able to handle diversified businesses, and also implement the vision of the Babu. The family-owned businesses wanted fixers, yes-men, collaborators and people with right connections with government officials. Not any more. As Harsh Mariwala, chairman, Marico Industries remarked: the Indian CEO is facing competition not only from MNCs, but from local CEOs as well. The job of a CEO has become more complex. In the current scenario, according to Tarun Das of CII, industry needs CEOs who are technologically proficient, analytical and willing to face challenges headon. Azim Premji laments that, not many Indian CEOs have 'fire in the belly'. Ashwin Dani, MD of Asian Paints, feels that the potential CEO should have wide project implementation skills and international exposure to visualise the impact of global trends ahead of others. Since he is the public face of a company, now-a-days, he needs good communication skills - to be able to communicate effectively with the employees, with the shareholders, customers and to lead the ideally flat and friendly workplace. In the AV Birla Group of Companies, led by Kumarmangalam Birla, the emphasis is on finding talent in young people at an early stage, nurture and reward through positive strokes and ensure that young talent stays attracted to the group. Every attempt is to 'make the group a fun place to work in'. The CEO, therefore, is expected to be friendly and flexible, but firm and decisive. As summed up by an expert the CEO is young and restless, but unemotional. He is a hands-on manager, but thinks long-term. He is a techie, but people-oriented. He is multi-skilled, experienced, a visionary". Now, CEOs are under pressure to show results quickly, especially when the quarter-to-quarter performance of a company is Xrayed by analysts, restructure operations continually in line with environmental changes and improve operational and cost efficiencies. The high-tech environment, global competition and workforce diversity and a lot of other issues have begun to impact the career-spans of CEOs in India. As a result, 'CEOs tenures are getting progressively shorter'. Non- performance is not tolerated any longer in any industry. "If you deliver, you are not a target for the competition. If you do not, you are asked to leave. Either way, you go".
Sources: i. Team CD, The man for the new millennium, Economic Times, 8-14, Jan., 1999. ii. R.A. Thakur, Reaching for the sun, ET, 29 Dec., - 4 Jan., 2001. iii. G. Cherian, Old before their time, ET 29 Dec., - 4 Jan., 2001.

Introduction
Organisations have a variety of goals. They usually direct their energies and resources to achieve these goals. A profit-oriented business firm, for example, might have a return-on-investment goal; a hospital would have goals centred around patient care; and an educational institution would establish goals for teaching, research and social service. Organisations possess human as well as non-human resources (plant, equipment, land, money, etc.) that are put to use in the service of specific goals. Management is the force that unifies human as well as non-human resources in the service of organisational goals. It is a process of getting results with and through people.

Figure 1.1 Management as a Unifying Force

Management is needed whenever people work together in an organisation. The managerial functions must be performed by anyone who manages organised efforts, whether it is a business enterprise, religious organisation, military outfit or a social institution such as planning, organising, directing and controlling. These functions are performed at all levels in an organisation, regardless of its type or size. The services of management are essential in all cooperative endeavours.

What is Management?
It is not easy to define the term management. There are as many definitions of management as there are books on the subject. There are certain genuine reasons for this : (i) Management is a vast subject. It is very extensive. It is, therefore, not possible to put all the essential features of management in a single formula. (ii) Management is concerned with human beings, who are behaviourally highly unpredictable. (iii) Management is a young developing discipline whose concepts are continuously changing. It is small wonder, writers like Allen remarked, that the manager is one of the great unknowns in the business. Most definitions of the word management, emphasise one common idea: it is concerned with the accomplishment of objectives through the efforts of the people performing certain functions. Lets look into these definitions: 1. Management is the results through the people (Lawrence A. Appley). Management is the things done through and with the people organised (Koontz H.) Management is a organising, actuating determine and objectives by the resources. (Terry. G.) Management managers operate through is create, the accomplishment efforts of art of in of other getting formally groups.

2.

3.

process of planning, and controlling to accomplish the use of people and by which maintain and organisations coordinated,

4.

process direct, purposive systematic,

cooperative Farland.) 5.

human

effort.

(Mc.

It is the coordination of all resources through the process of planning, organising, directing and controlling in order to attain stated objectives (Sisk).

Some have defined management as a decision-making, rule-making and rule-enforcing body. According to Prof. Moore, management means decision-making. Others (Appley) called it as personnel administration. For the sake of simplicity and convenience, we can broadly define the term thus : Management is concerned with resources, tasks and goals. It is the process of planning, organising, staffing, directing and controlling to accomplish organisational objectives through the coordinated use of human and material resources.

 MANAGEMENT AS A NOUN
In popular usage, management refers to a group of people who direct the activities of other people and material resources towards the attainment of predetermined goals. Viewed broadly, management may be interpreted as a resource, a system of authority or as a class or elite. The economists view of management is that, it is a factor of production like capital, labour, etc. The managerial resource determines the success of an organisation. As a system of authority, management refers to a team of managers who make decisions and supervise the work of others. Sociologists, finally, look at management as a class and status system. Managers are a distinct class in the society having specialised knowledge and skills.

 MANAGEMENT AS A PROCESS
Management as a process refers to a series of inter-related functions, such as planning, organising, staffing, leading and controlling. Actually, managers are known by the work they do. According to James Lundy, Management is what management does. Management process suggests that all managers perform certain functions in order to realise certain goals.

Figure 1.2 The Process of Management

Management, it should be noted, is a social process because it is concerned with relations among people at work. A manager sets the objectives of an organisation. He provides an environment that is helpful to group action. He offers incentives to those who show good performance and thus helps the organisation realise its goals.

 MANAGEMENT AS A GROUP/TEAM
The term management is used to denote the persons who manage the affairs of an organisation. Broad expressions, such as management has declared a lockout, management takes a tough stand against workers, often hit newspaper headlines. When such statements are made, reference is actually made to the people who manage the affairs of an organisation. Thus, as a group of persons, management includes all those who are responsible for making decisions and supervising the work of others.

 MANAGEMENT AS A DISCIPLINE

As a discipline, management is a specialised branch of knowledge which involves the study of certain principles and practices. Over the years, management has emerged as a separate field of study. It can be studied, knowledge about it obtained and skill in its applications acquired. The old saying managers are born, not made stands depreciated now. People believe that managerial skills could be acquired through formal education and training. It is small wonder that many institutes have been set up in India with a view to impart management education to prospective managers.

 MANAGEMENT AS AN ACTIVITY
Management refers to a separate class of activities which are performed by managers. Managerial activity consists of planning, organising, staffing, directing and controlling. These activities are performed to get the work done with and through people. Due to their biological and psychological limitations, it is difficult for human beings to achieve their objectives all alone. They have to join organisations and work toward common goals. As pointed out by D.A. Wren, management is an essential activity which arises as individuals seek to satisfy their needs through group action. Managerial activity, it should be remembered, cannot be measured in a precise way (unlike non-managerial operations like typing, machine operations, where the output can be measured). A manager directs the work of others. He contributes indirectly towards the achievement of enterprise objectives. His work defies precise measurement. Terry, therefore, said that management is intangible. The student is advised not to confuse this point (management is an invisible force) with the persons (a team of managers who are visible) who perform managerial activities. The evidence of good managerial work in the form of employee satisfaction would only be seen in results which cannot be quantitatively measured.

Scope of Management
The scope of management is very wide. Basically, it refers to three distinct ideas. According to Herbison and Myers, management may be understood as (i) an economic resource, (ii) a system of authority, and (iii) a class or elite.

 MANAGEMENT AS AN ECONOMIC RESOURCE

Management is one of the factors of production along with land, labour and capital. In modern organisations, the effective use of the five Ms of management (money, materials, manpower, machinery and methods or ways of doing things) depends to a great extent on the quality of management. In other words, how effectively and economically the five Ms are combined together to produce desired results. According to Newman, management is required to convert the disorganised resources of men, materials, money and machines into a productive, useful, on-going concern.

 MANAGEMENT AS A SYSTEM OF AUTHORITY

According to Herbison and Myers, management is the rule-making and rule-enforcing body. It is bound together by a web of relationships between superiors and subordinates, that is, people are bound by authority relationships. Managers working at top levels enjoy more authority than people working at lower levels. Top management determines objectives and provides direction to enterprise activities. Middle management (departmental heads like work manager, finance manager, personnel manager etc.) interprets and explains the policies framed by the top management. They transmit orders, instructions and decisions downward and carry the problems and suggestions upward. Lower management (first line supervisors) is concerned with routine, day-to-day matters.

 MANAGEMENT AS A CLASS OR ELITE

Sociologists view management as a distinct class in society having its own value system. The managerial class has become very important in modern organisations owing to its contribution to business success. As a

separate group, the term management refers to the group of individuals occupying managerial positions. All the managers from the chief executive to the first line supervisors are collectively addressed as Management, which refers to the group.

Characteristics of Management
The various interpretations of management emphasise three things: (i) management is a process and involves a series of continuing and related activities, (ii) it tries to concentrate on reaching organisational goals, (iii) and it reaches these goals by working with and through other people and other organisational resources. The important features which reveal the nature of management may be stated thus: 1. Management is intangible: As pointed out by Terry, management is intangible. It cannot be seen. It is an unseen force. However, its presence can be felt by the results of its efforts in the form of production, sales and profits. Management is goal-oriented: Management seeks to achieve goals. These goals may be economic or non-economic. In a business organisation, the primary goal is to produce and distribute goods with a view to earn profit. In a service organisation, the goal might be customer service (hospitals, educational institutions, etc.). Management is universal: Management is an all-pervasive activity. It is needed in all types of organisations, e.g., university, club, army, government, business. The basic principles of management are applicable in business as well as in other organisations. These principles, however, need careful application depending on situational demands. Management is a social process: According to Newman, management is a social process because it deals with people. To make the best use of human efforts, managers have to create close cooperation among employees in an organisation. They have to use resources for the benefit of society as a whole. They have to look after the interests of employees, shareholders, customers, investors and community. Management is a group activity: Management is concerned with getting things done through people. People join groups in order to achieve results collectively. Management helps people in realising individual as well as group goals in a coordinated way. Management is a system of authority: A manager is supposed to get things done, rather than doing things himself, by using authority. Authority is the right to give orders and the power to obtain obedience from subordinates. In this sense, management may be understood as the rule-making and rule-enforcing body in an organisation. According to Drucker, management is a multi-purpose organ that manages a business, manages managers and manages workers and work. Managers operating at higher levels, of course, possess more authority than those working at the lower levels. Management is an activity: Management is a distinct activity (like playing, teaching, studying). It can be studied, knowledge about it obtained and skill in its applications acquired. Further, management is not a one-shot deal. In the face of continual changes in environment, technology, competition, new problems crop up displacing old ones. Old order changeth yielding place to the new! Management must, therefore, address itself to problems on a continuous basis. The cycle of management is a never-ending process and it continues as long as the organisation continues to operate. Management is dynamic: Management is a dynamic and growth-oriented function. It tries to visualise problems before they turn into emergencies and takes suitable steps. It tries to adapt itself to the environmental changes quickly. It proposes to take actions to make the desired results to come to pass. According to Drucker, managers do not wait for the future; they make the future.

2.

3.

4.

5.

6.

7.

8.

9.

Management is a science as well as an art: Management is a systematised body of knowledge based on certain principles capable of general application. The principles underlying time and motion studies, morale, motivation, leadership-can be applied by persons working in various capacities. Art is the application of knowledge and skills to achieve results. Management is an art because it involves the use of knowhow and skills like any other art such as music, painting, etc. In recent years, management has developed into a separate, distinct discipline, receiving vital inputs from subjects such as psychology, sociology, anthropology, economics, etc. Management degrees are the hottest selling products in the corporate world now. In the days ahead, the status of management as a discipline is bound to increase. In fact, management becomes essential, whenever and wherever people come together to achieve some common objectives. Management is multidisciplinary: Management has received rich contributions from various disciplines like psychology, sociology, anthropology, etc. The insights obtained from these disciplines greatly help managers in understanding the black-box (human mind) much better. More importantly, management is a creative activity. Managers utilise the scarce resources at their disposal in a rational way. They make things happen in a desired manner. They convert the disorganised resources of men, materials and machines into a useful, productive enterprise. (Newman) They create a whole that is greater than the sum of its parts. They achieve results in an efficient and effective manner.

10.

Who are Effective Managers?

Based on the research sponsored by the Centre for Creative Leadership, Robert Kaplan described effective managers as persons who:
        

Have vision, think long-term, set direction; Are good communicators and good listeners; Understand operations; Know where to spend time and how to prioritise; Do not resist change; Delegate well; Act confidently; Accept responsibility and admit mistakes; Are motivating, curious, honest, credible and decisive.

Importance of Management
According to Drucker, management is the dynamic life-giving element in every organisation. It is the activating force that gets things done through people. Without management, an organisation is merely a collection of men, machines, money and material. In its absence, the resources of production remain resources and never become production. The importance of management can be understood from the following points: (i) Optimum use of resources: Management ensures optimum utilisation of resources by attempting to avoid wastage of all kinds. It helps in putting the resources to the best advantage within the limitations set by the organisation and its environment. A right climate is created for workers to put in their best and show superior performance. Effective leadership and motivation: In the absence of management, the working of an enterprise will become random and haphazard in nature. Employees feel a sense of security when they find a body of

(ii)

individuals working day and night for the continued growth of an organisation. Management makes group effort more effective. It enables employees to move cooperatively and achieve goals in a coordinated manner. Management creates teamwork and motivates employees to work harder and better by providing necessary guidance, counselling and effective leadership. (iii) Establishes sound industrial relations: Management minimises industrial disputes and contributes to sound industrial relations in an undertaking. Industrial peace is an essential requirement for increasing productivity. To this end, managers try to strike a happy balance between the demands of employees and organisational requirements. They initiate prompt actions whenever workers express dissatisfaction over organisational rules, methods, procedures and reward systems. (iv) Achievement of goals: Management plays an important role in the achievement of objectives of an organisation. Objectives can be achieved only when the human and non-human resources are combined in a proper way. Management is goal-oriented. With a view to realise the predetermined goals managers plan carefully, organise the resources properly, hire competent people and provide necessary guidance. They try to put everything on the right track. Thus, unnecessary deviations, overlapping efforts and waste motions are avoided. In the final analysis, all these help in realising goals with maximum efficiency. (v) Change and growth: A business concern operates in a constantly changing environment. Changes in technology, government policy, competition, etc., often threaten the survival of a firm. Failure to take note of customers needs regarding fuel efficiency has spelt doom for Ideal Java in the two-wheeler market in India. An enterprise has to take note of these changes and adapt itself quickly. Managers help an organisation by anticipating these changes (careful planning, forecasting combined with efficient use of resources) and taking appropriate steps. Successful managers are the ones who anticipate and adjust to changing circumstances rather than being passively swept along or caught unprepared. Employers today are hiring managers who can take unfamiliar situations in their stride. At AT&T, people remark, If you are hiring people who do not like surprises, you are probably not hiring the right people.

(vi) Improves standard of living: Management improves the standard of living of people by (a) using scarce resources efficiently and turning out profits, (b) ensuring the survival of the firm in the face of continued changes, (c) exploiting new ideas for the benefit of society as a whole, and (d) developing employee talents and capabilities while at work and prompting them to show peak performance. The great economist, Joseph. A Schumpeter, referred to management and entrepreneurs as the engine of growth. Drucker called management the life-blood of an enterprise. According to him, management is the crucial factor in economic and social development. Admittedly, firms can fail because of inadequate funds, improper marketing, incompetent product design and for many other reasons. They often fail because the basic management functions are performed poorly or not at all. Management is the single most critical social activity in connection with economic progress. Physical, financial and manpower resources are, by themselves, only passive agents: they must be effectively combined and coordinated through sound and effective management, if a country is to experience a substantial level of economic growth and development.

Management vs. Administration

There has been a controversy over the meaning of the terms management and administration. Some take management and administration as one; some consider administration broader than management and some hold a view that management and administration are different. Lets examine the opinions of various writers before trying to resolve this controversy.

 ADMINISTRATION IS BROADER THAN MANAGEMENT

Writers like Ordway Tead, Oliver Sheldon, William Spriegel, William Schulze maintain that, administration is broader than management. Administration determines the specific goals and lays down the broad areas within which those goals are to be achieved. Administration is a policy-making function. Management, on the other hand, is concerned with carrying out the broad policies laid down by administration. In the words of Spriegel, administration is largely determinative, whereas, management is essentially executive. Thus, according to this American school of thought administrators think, managers act: administration is a top level activity and management is a lower level function.

 ADMINISTRATION IS PART OF MANAGEMENT

According to the English school of thought, represented by E.F.L Brech, Henry Fayol, Kimball and Kimball, management is a wider concept than administration. Administration handles the current problems that may arise in carrying out the policies laid down by management. Management is the rule-making and ruleenforcing body. It is an all-encompassing and comprehensive term and administration is a part of it. Administration is just an implementing agency.

Figure 1.3 Administration and Management

 MANAGEMENT AND ADMINISTRATION ARE IDENTICAL

Writers like William Newman, Harold Koontz, Dalton E. McFarland, Earnest Dale, hardly maintain the distinction between the two terms. Any attempt to stretch the matter too far may be self-defeating and thoroughly misleading. The compartmentalisation scheme hardly serves any useful purpose. The management process is the same in all organisations and at all levels in the organisation and there is hardly any need to appoint two individuals to discharge the administrative and managerial functions. All undertakings require planning, organisation, command, coordination and control in order to function properly, all must observe the same general principles. We are no longer confronted with several administrative or management sciences, but with one which can be equally applied well to public and to private affairs. A manager or for that matter an administrator, has to wear both the hats gracefully in order to be effective and successful.

 HOW TO RESOLVE THE CONTROVERSY?

To resolve the controversy, Drucker suggested that, management is applicable in business enterprises while administration is applicable in government offices, military organisations, social and cultural institutions. From a theoretical point of view, writers still continue to maintain distinction between the two terms thus (Table 1.1). However, from a practical point of view, the above categorisation seems to be a futile exercise. Managers or administrators have to perform the thinking and doing functions simultaneously. They have to wear both the hats gracefully in order to be effective and successful.

Management : Science or Art?

The question whether management is a science, art or profession is put to debate quite frequently. There are arguments on both sides. Lets examine these in detail.

 PROPERTIES OF SCIENCE
Science is a systematised body of knowledge based on certain principles, capable of general application. This knowledge is obtained through the process of observation, experimentation and testing. Science, thus, has four elements:


Systematic

body

of knowledge: Science is systematised in the that it is based on the cause and effect relationship between different variables. Such a knowledge helps in explaining past events and predicts the outcome of specific actions.

sense

Scientific inquiry and observation: Scientific inquiry is unaffected by the personal likes and dislikes of a scientist. When we say that the rotation of earth causes days and nights, we do not express the opinion of just one person. This can be scientifically proved at any time. Experimentation: The principles of science are derived after repeated observations and experiments. The results of each experiment can be verified and outcomes predicted in a definite way. When results get confirmed after repeated experimentation, they become principles. Universal truths. Scientific principles represent basic truths, they are developed after a series of experiments. They can be applied in all situations and at all times.

MANAGEMENT AS A SCIENCE
Management is a science because it has all the characteristics of a science, namely:


Systematised body of knowledge: Management is a distinct discipline. It has a number of principles which can be studied and put to application. Management offers principles that could be put to good use while solving problems. Management is a social science: Management is a social science, as it deals with human behaviour about which little is known at present. As we all know, it is not possible to study human behaviour under controlled laboratory conditions. Human behaviour is unpredictable and, therefore, defies experimentation. As a result, the principles of management cannot be accepted as absolute truths. They are still in a developing stage and evolutionary in nature. Management, at best, can be called as a soft science. Management is an inexact science: Management is not an exact science like physics, chemistry or biology. It does not offer absolute principles. It can offer only flexible guidelines that would be of use in solving problems. Management can never be an exact science because business is highly dynamic and business conditions change continually. Manager vs. scientist. A scientist can afford to wait until all the information (about a thing) is available. He can indulge in a series of experiments till the truth emerges clearly. However, a manager cannot afford to do like that. He must take decisions based on inadequate information, insufficient knowledge and resources. He must make decisions today in order to survive in future. Scientific management. When Taylor used the term scientific management, he was aware of the fact that experimentation and verification of facts is not possible in managing human resources. He had used the term scientific, as an organised body of knowledge as opposed to traditional rules and empirical dexterity. Over the years, the traditional hit-or-miss methods have yielded place to several systematic methods based on principles. No wonder, management is known as a sophisticated behavioural science these days. Thus, art and science are complementary and mutually supportive.

 PROPERTIES OF ART

Art is the application of knowledge and personal skills to achieve results. It is a way of living. Art is based on the knowledge of principles offered by science. A surgeon or a physician without the knowledge of medical science becomes a witch doctor, with the knowledge of science, an artful surgeon. Art is basically concerned with application of knowledge, how to do things creatively and skillfully. It can be improved through constant practice only. Terry has drawn the distinctions between science and art thus:

MANAGEMENT AS AN ART
Management is basically an art as it involves the use of knowhow and skills like any other art such as music, painting, sculpture, etc. The practical knowledge acquired in the areas of planning, decision-making and motivating certainly help managers to tackle problems in a better way. The arguments in favour of management as an art run thus:


Use of knowledge: Just as a doctor uses the science of medicine while diagnosing and treating the patients, a manager uses the knowledge of management theory while performing the managerial functions. He, thus, uses sound knowledge in place of hit-or-miss methods, with a view to achieve results effectively. Creative art: Management is creative like any other art. It combines human and non-human resources in a useful way so as to achieve results. It tries to produce sweet music by combining the chords in an effective manner. It makes things happen by changing the behaviour of human beings. Personalised: Like any other art, management is a personalised activity. Every manager has his own way of managing things and people, based on his knowledge and experience. There is no one way of doing things. As years roll by, managers learn the art of managing through a process of trial and error. Constant practice: Managers learn from mistakes. The application of managerial principles over a period of time enable them to tackle difficult problems with confidence. In other words, they develop their skills through constant practice. Just as artistic skills can be developed through training, so can managerial skills.

 MANAGEMENT: SCIENCE AS WELL AS ART

Management is thus, an art as well as a science. The art of management is as old as civilisation. The science of management is young and developing. Both are complementary and mutually supportive. Managers need to acquire the knowledge of management principles and practice in order to be successful. They need to sharpen this knowledge through constant practice. The theoretical knowledge in management must be put to good use in a skilful way, while achieving results. As Drucker has pointed out, every organisation has the same resources to work with. It is the quality of management that spells the difference between success and failure. Managers need to acquire knowledge systematically and put the same to good use, using intuition, judgement and experience. A successful manager is one who is able to visualise problems before they turn into emergencies. The ability to meet the problems head-on does not come by chance. It requires sound knowledge

and constant practice. Managers, therefore, have to fruitfully combine their scientific knowledge with artistic skills in order to emerge as the winners in a competitive environment.

Management as a Profession
The question, Is management a profession? is asked quite frequently. Over the last few decades, factors such as growing size of business units, competition, separation of ownership from management have led to an increased demand for professionally qualified managers. The tasks of management have become quite specialised. As a result of these developments, claims are being made that management has reached a stage where everything has to be managed professionally. Before supporting this claim, lets state the essential features of a profession and find out how far these features are present in management.

 CHARACTERISTICS OF A PROFESSION
The important features of a profession are: 1. 2. 3. 4. Well-defined body of knowledge: A profession must have a systematic body of principles, techniques and skills. Formal education and training: Everybody cannot enter a profession. An individual can enter a profession only after acquiring knowledge and skills through formal education and training. Minimum qualification: An individual can enter a profession after obtaining a degree or diploma from recognised colleges, universities or institutes. Representative body: A representative body of professionals exist to regulate and develop the professional activities. It (i) tries to regulate the entry of people into the profession (ii) conducts the examinations from time to time (iii) issues the certificate of practice and (iv) carries out other activities (R&D, liaison work, etc.) aimed at developing the profession. Service above self: According to Edgar Schein, a profession must be committed to service. Success in work should be more important than financial rewards or political gains. Service to society should be the ultimate motto. Ethical code of conduct: A strict code of conduct exists in every profession. Members of a profession are expected to follow the code sincerely and honestly.

5.

6.

MANAGEMENT AS A PROFESSION
Now lets examine whether management meets the above criteria or not:


Well-defined body of knowledge: Management has a well-defined body of knowledge that is generally valid in a variety of organisations and situations. Management literature has been continually growing. Many tools and techniques have been perfected over the years. Research and consultancy firms aid managerial thinking and practise now-a-days. They produce a lot of data, aimed at improving managerial decisionmaking. Formal education and training: Acquiring management education through training is possible now. A number of management institutes have been set up in recent years, to turn out a good crop of managers throughout the globe. The old saying that managers are born not made stands discounted and depreciated now. Business houses also prefer only properly educated and trained managers while filling their vacancies. Representative body: As things stand now, there is no organisation or body of professionals whose membership is essential to become a manager. There is no organisation whose authority is recognised as final. In the case of lawyers, it is necessary to become a member of the Bar Council of India, in the case

of doctors, it is the Medical Council of India. However, such entry requirements do not exist in the field of management. In fact, the entry into the field of management is not regulated. Further, no minimum qualification has so far been laid down for managers. There is also no licensing of managers. There are several management associations, however, offering training and research support to managerial work. But no such association enjoys the legal sanction to regulate the activities of managers throughout India.


Code of conduct: There is no universal code of conduct. Although, certain trade associations and management associations (All India Management Association, for example) have formulated ethical codes for managers working in particular industries, these have not been accepted totally. Service motto: In the absence of a regulating body (with legal sanction) and code of conduct, managers often indulge in practises aimed at maximising their personal wealth. The service motto stands thoroughly neglected. In recent years, however, this view of management is progressively changing. To survive in a competitive world, management has to reconcile the conflicting interests of the shareholders and workers on the one hand and meet the social obligations of business, on the other. They have to balance these conflicting interests while making profit.

 PROFESSIONALISATION OF MANAGEMENT
In conclusion, we can say that management is not a recognised profession, but it is moving in the direction of becoming a profession. Factors such as separation of ownership from management, government regulation of business activities, proliferation of management institutes, growth of trade unions have led to the increased professionalisation of management in recent years. Increased professionalisation implies licensing, formal education and degrees, regulatory codes, and so on. However, writers like Drucker believe that there should be no statutory control over managers. He firmly argued that managers must be known by their performance, rather than by their degrees. According to Drucker, no greater damage could be done to economy and society than to attempt to professionalise management by licensing managers or by limiting access to management to people with special academic degree. Lets examine the pros and cons of professionalisation of management in greater detail in Table 1.3.

 PROFESSIONALISATION OF MANAGEMENT IN INDIA

There are very few success stories that can be told, since the achievement of Indian Independence in 1947. If one among these exceptions is the record of the farmer, another is the story of the manager. There are many professionally managed companies in India now, Hindustan Lever Limited, TISCO, TELCO, Indian Oil Corporation, Oil and Natural Gas Commission, Bharat Heavy Electricals Limited, ITC Limited, Indian Oxygen Limited, L&T, NTPC, etc. The list of professionally managed companies is impressive and is growing day by day. These companies fill their vacancies with the best brains in the industry (qualified management graduates), introduce and experiment with modern concepts of management (like Theory Z, Quality circles, etc. For example, in Maruti Udyog Limited). Managers set organisational objectives keeping the social objectives in mind (e.g., allocation of budget for pollution control, community development, family planning clinics, etc. by Tatas, Birlas, Kirloskars, etc.) and encourage their personnel to attain a high level of professional competence. In order to develop their human resources, these companies regularly invest heavy amounts in management/executive development programmes, organised by NPC, AIMA, NIBM, ASCI, NITIE, etc. Some companies even maintain in-house training departments (Steel Authority of India, LIC, Hindustan Lever, TELCO, TISCO, ITC Ltd, etc.) for this purpose. Now-a-days, even comparatively smaller organisations are deputing their managers to attend short-term training courses/management development programmes. The concept of owner-managers is being increasingly rejected now and even small-scale units do not hesitate to send their personnel to executive development programmes throughout the country. The reasons for this are not far to seek:

   

Growing competition of the market. Fast changes in technology. Divorce between ownership and management. The need to manage large-scale units in an effective way and show profits (instead of surviving on government subsidies, protection, etc.). Growing professionalisation in the private sector. Rapid expansion of management education in recent times and the proliferation of reputed management schools/ institutes throughout the globe.

 

Formal education and training have become increasingly important for present-day managers. They have to manage the show and emerge as winners. Traditional management techniques and practises may not help in delivering the goods in an effective and efficient manner. Under the circumstances, not surprisingly, the trend towards increased professionalisation of management is gaining strength and universal acceptance.

Principles of Management
A principle is a basic statement or a fundamental truth that provides understanding and guidance to thinking and practise. A principle represents a basic element of knowledge in that it explains the relationship and, helps in predicting what would happen if the principles were applied. Over the years, a number of principles have been developed in management to aid executive thinking and action. A group of concepts have been developed by experience and responsible research. These principles, as pointed out by J.L. Massie, are only approximations of generalisations from experience. As such, they should not be treated as rigid and inflexible rules to administrative behaviour. The principles, however convenient as a shortened method of thinking, are only guides to action. If they become rules, they lose their utility.

 NATURE OF MANAGEMENT PRINCIPLES

Management principles can never be stated as rigorously as that of physical sciences because human beings behave more erratically than physical phenomena. Management principles have been developed out of experience and analysis only. The empirical support for most of these principles is woefully inadequate. In the absence of a scientific analysis, these principles must be taken as general ideas on which sound and effective action can be based. They are, thus, not absolute truths or infallible laws. Managers should not conclude that principles are rigid and that there is some definite list chiseled in stone. Moreover, management principles are ever-changing. Most of the so called golden principles of management (scientific management and bureaucracy especially) have been replaced. Refinements are taking place continuously. This is made possible by the ever-increasing research activity in the field of management. Thus, management principles change with the change in the environment in which the organisation exists. The principles must be accepted as flexible and dynamic guidelines and not as rigid and static guidelines. One serious limitation with reference to management principles should be noticed here. As one writer pointed out, where human beings are concerned, management principles may be so much of wastepaper. Because of the unpredictability of human nature, the principles of management do not find expression in a universal way.

 WHY MANAGEMENT PRINCIPLES?

According to Terry, Principles of management are to a manager as a table of strengths of materials is to a civil engineer. The utility of principles lies in the foundation they provide for its efficient conduct, by making out the basic features that must characterise the practice of management, irrespective of where it is occurring. By means of principles of management, a manager can avoid fundamental mistakes in his job and foretell the results of his actions with confidence. According to Koontz, principles help in the following ways:

1.

To increase efficiency: Principles aid thinking and action. The need for guesswork, haphazard activities is reduced. The problems brought out by rapid changes in the environment can be solved easily. For example, the principle of span of control tells a manager that he can manage only a limited number of subordinates, say 8 to 10, and thereby helps him predict the results if the principle is not applied. To crystallise the nature of management: Principles crystallise the ever-increasing knowledge and thinking in the field of management. Without principles, it is not possible to impart knowledge and provide training to managers. To improve research in management: Management deals with human beings whose behaviour is highly unpredictable. Principles provide a canopy of broad generalisations which help in testing behaviour, understanding it and predicting the outcomes for future. They help in improving the fund of tested knowledge and promoting further research in human behaviour. To attain social goals: Management principles play an important role in improving the quality of life of people and the standard of living. They bring order out of chaos. Managers are able to commit resources to the best possible advantage and employ them in a judicious fashion.

2.

3.

4.

 WHAT ARE PRINCIPLES OF MANAGEMENT?

1. Fayols principles: It was Henry Fayol who stated a set of 14 principles of management based on his practical experience as a manager. According to Fayol, these principles can be applied in all types, functions, levels and sizes of organisations. For a long time, Fayols list was accepted as complete and comprehensive. A description of these principles is given below:

Table 1.4 Fayols Fourteen Universal Principles of Management

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. Division of work. Specialisation of labour is necessary for organisational success. Authority. The right to give orders must accompany responsibility. Discipline. Obedience and respect help an organisation run smoothly. Unity of command. Each employee should receive orders from only one superior. Unity of direction. The efforts of everyone in the organisation should be coordinated and focused in the same direction. Subordination of individual interests to the general interest. Resolving the tug of war between personal and organisational interests in favour of the organisation is one of managements greatest difficulties. Remuneration. Employees should be paid fairly in accordance with their contribution. Centralisation. The relationship between centralisation and decentralisation is a matter of proportion; the optimum balance must be found for each organisation. Scalar chain. Subordinates should observe the formal chain of command unless expressly authorised by their respective superiors to communicate with each other. Order. Both material things and people should be in their proper places. Equity. Fairness that results from a combination of kindliness and justice will lead to devoted and loyal service. Stability and tenure of personnel. People need time to learn their jobs. Initiative. One of the greatest satisfactions is formulating and carrying out a plan. Esprit de corps. Harmonious effort among individuals is the key to organisational success.

2. 3. 4.

Mooney and Reileys staff principle: According to this principle, staff units must be created in order to provide service and expert advice to the line managers. Taylors principle of management by exception: Routine work, according to this principle, must be handled by subordinates and management must concentrate on strategic, key and important issues. Webers principles: Organisation work must be performed according to rules. All administrative actions must be recorded in writing so as to have a ready reference in future: a hierarchy of positions should provide for supervision of each unit by a higher official etc.

5.

Likerts principle of supportive relationship: According to this principle, managers should provide social, psychological and moral support to subordinates. The basic purpose should be to improve the subordinates sense of personal usefulness and dignity and secure commitment to organisational goals. Human relations: Human relatitionists (Mayo and Roethlisberger) and behavioural scientists (McGregor, Bennis, Argyris) have avoided providing prescriptions and have suggested ideas and concepts to describe some fundamental guides to managerial thought and action. These concepts are largely aimed at improving the quality of life rather than achieving organisational goals. The importance of human element is recognised and efforts are made to make human life more interesting, meaningful and challenging in an organisation. Modern organisation theories and principles of management: Systems and contingency theorists advocate that, a manager should know and understand the existence of certain fundamental concepts advanced by theorists from time to time and use them judiciously. Managers should understand that there is a way to apply these concepts. The principles must be applied in a flexible way, keeping the changing circumstances in mind.

6.

7.

Universality of Management Principles

Is the managers job universal? Are the principles of management universally applicable? It has already been stated that managing is found in all types, functions, levels and sizes of organisations. Management can be applied to all organised human efforts, whether they are in business, government, educational, social, religious or other fields. Universality of management suggests that the manager uses the same managerial skills and principles in each managerial position held in various organisations. Accordingly, an industrial manager could manage a philanthropic organisation, a retired army general could manage a university, a civil servant could manage an industrial organisation, and so on. Universality implies transferability of managerial skills across industries, countries. It means that management is generic in content and is applicable to all types of organisations. Lawrence A. Appley declared that He who can manage, can manage anything. Let us examine the factors that have contributed to the universal application of management at every level of organisation.

 ARGUMENTS FOR UNIVERSALITY

1. Same functions: Quite often, it is erroneously thought that management exists only in a business and not in other enterprises. The fact is, however, that when acting in their respective managerial capacities, not only the company president but also the office supervisor performs the fundamental functions of management. The difference lies in such things as the breadth of the objectives, the magnitude of the decisions taken, the organisational relationships affected, and so on. Managers essentially perform the same functions, irrespective of their level in the organisation, industry or country. Universal principles: Classical writers (Fayol, Urwick and others) believed that, there are certain principles in management which are universally applicable. These are the principle of departmentation, principle of division of labour, principle of span of control, the scalar principle, principle of unity of command, etc. Such principles as one man one boss, division of work to improve speed and efficiency, limiting the number of persons to be supervised so that managers can concentrate on exceptional problems, the principles governing motivation theory have certainly proved their worth up to a point, and these principles have been translated into practise for a long time. These principles have found universal application in most organisations. Fundamentals are same, the techniques employed and practices followed are different: Managing occurs in parks, ranches, hospitals, farms, universities, cities, police, agencies, churches, airports and community organisations, industries, and so on. The fundamentals governing the management of a

2.

3.

business, a church or a university are same: the difference lies in the techniques employed and practices followed. All managers are accountable for performance of other people: they plan, make decisions, organise work, motivate people and implement controls and so forth. In order to accomplish things, the techniques employed might differ depending on situational factors like: culture, tradition, attitude, etc. Same is the case with management practises. An automobile designed for use in deserts or jungles will be markedly different from the one that is designed for city traffic. The design principles governing both models are the same. The generic content of management fundamentals is such that they can be applied universally. However, the practises and techniques employed may differ depending on the nature of industry, the organisational level where these are applied, etc. 4. Practical evidence: Managing is found in all types, functions, levels and sizes of organisations. The fact that managers regularly move from public to private sector organisations bear sample testimony to the fact that, management concepts are universal across organisational types. For example, D.D. Eisenhower went from a General in the U.S. Army to President of Columbia University to finally become President of the United States. Again, Sri P.L. Tandon, the former Chairman of Hindustan Lever Ltd, has managed the PNB, STC and the NCAER successfully during his tenure as the Chairman in these organisations. The basic concepts of management propagated by American writers have found expression even in communist countries. According to Drucker, the rapid development of Brazil, the rapid development of non-communist countries, that is, of Hongkong, Singapore, and Taiwan, the rapid development of so poor and backward a peasant country, as Iran, are all traceable to the impact of management.

 ARGUMENTS AGAINST UNIVERSALITY

1. Complete substitutability is impossible: It is true that the managers job becomes most universal in content at the upper echelons of organisations. The higher one moves in an organisation, the more he or she performs the generic functions of management, such as planning, organising, leading and controlling and the less he or she is involved in day-to-day technical matters. The relationship between performance and functions entrusted becomes more intense as one moves lower down the order. For example, the success of a drilling supervisor of an oil rig depends, to a large extent, on his technical knowledge of drilling. On the other hand, the president of an oil company does not need to have much of the technical intricacies of drilling for oil or how to refine it. Before tossing the universality argument, we must apply brakes and qualify the statement: generic in content does not imply complete substitutability. Organisational philosophies differ: Universality presupposes the existence of predictability regarding the outcome of managerial actions. A manager working in Firm A must be able to predict the likely consequences of his actions in Firm B, where he is likely to join. He may have to face insurmountable difficulties, in case the underlying philosophies of these organisations were to differ. For instance, in one organisation the emphasis might be on profit maximisation and in the other, the emphasis might be on social responsibilities. Such conflicting demands affect managerial actions and what a manager could apply with success in one organisation may not find a meaningful expression in the other organisation where the underlying philosophy is different. As pointed out by Dale, no individual could be a good administrator in religious, academic, military and business institutions of both communist and democratic countries because the philosophies that underlie each are drastically different and one person may not be able to cover so much ground. Universality of principles: a ridiculous statement? Classical management principles were written by practitioners in management and were based on personal experience and limited observation only. They have only tried to pass on their ideas as universal truths. In the absence of a rigorous scientific basis, no wonder, Simon dubbed the principles as proverbs, comparable to folklore and folk wisdom. Moreover, these principles are vague and too general and as a result, are very difficult to apply to a

2.

3.

specific organisation. They often overlap and are sometimes incompatible with one another. The terminology universal principles, universal truths is quite unfortunate. 4. Management is a product of the culture: Managers have to operate within the broad constraints operating in an economy: culture, tradition, organisational philosophies, etc. Managerial behaviour in a deeply traditional, religious economy is bound to be different from the advanced and scientificallyoriented economy. It is futile to search for a common set of principles or absolutes or determinate solutions, where managers have to operate in highly diverse cultures. A career in management is, by itself, not a preparation for major political office or for leadership in the armed forces, the church or a university.

The writers who argue that management principles are culture bound seem to ignore that the fundamentals governing the management of enterprises in India, Japan, U.S.A. and Brazil are the same and they are applicable and adaptable in various cultures. Otherwise, it would not have been possible for Indian managers doing successful business in Great Britain, Chinese management thinkers teaching in America and Japanese managers working successfully in Brazil and Hongkong. The universality of management thesis is well supported by several research studies by Hair, Porter, Negandhi and Richman, etc. According to these researchers, cultural and situational factors may influence the way in which a manager discharges his functions but the fundamentals of management remain unchanged.

Summary
Management is the process of planning, organising, staffing, directing and controlling to accomplish objectives through the coordinated use of human and material resources. Management thinkers have tried to interpret the term in multifarious ways: as a noun, as a process, as a team, as a discipline, as an activity, as an economic resource, as a system of authority or as a distinct class in society having its own value system. Management is the life-blood of a business. It ensures optimum use of scarce resources, offers competent leadership, ensures peaceful industrial relations, achieves goals, improves standard of living and enables a company to manage change effectively. The terms management and administration are often interpreted in a loose manner. Some take management and administration as one. Some consider administration broader than management and some hold that administration is part of management. To avoid confusion, people like Drucker suggested that, management is applicable in business units while administration is applicable in government offices, military outfits and social and cultural institutions. Management is being increasingly accepted as a soft science and also as a difficult and complex art, as it deals with human behaviour which is highly unpredictable. Management, from another standpoint, is also interpreted as a profession having a well-defined set of principles and practices capable of universal application. Professionalisation, no doubt, helps the discipline to acquire a distinct character and recognition of its own but trying to link and measure managerial success in terms of degrees may come in the way of developing creative entrepreneurs having brilliant ideas but not professional qualifications. Over the years, the subject of management has been written and re-written in terms of certain wellaccepted principles and time-tested practices. These principles are the products of years of experience, research and analysis. They are not to be interpreted as absolute truths. When applied carefully, using discretion and judgment, they have proved to be quite successful in delivering results at various points of time all over the world.

Review Questions

1. 2.

Define management and outline its essential characteristics. Examine the following statements critically:
  

Management is regarded as an art by some and a science by others. Management principles are universal in nature. Management is the dynamic, life-giving element in every organisation.

3. 4. 5. 6. 7. 8. 9. 10. 11.

List and briefly discuss the functions of management. Which factor ability, motivation to manage or opportunity- should be most heavily weighted in the basic formula for managerial success? What can an individual manager do to meet the challenge to improve productivity? Distinguish between administration and management. He who can manage, can manage anything. Critically examine the statement. What do you mean by principles of management? Bring out the essential features of management principles. Write a note on professionalisation of management. How important is the management function to individuals and society? Write short notes on:
  

Management as a process. Management as a discipline. Management as an activity.

12. 13. 14. 15.

Management is a sophisticated behavioural science. Elucidate. The word management has several meanings, depending on the context and purpose. Discuss. Management is the development of people, not the direction of things. Discuss. Management is to business what the mind is to a human being. Examine the statement critically.

Discussion Questions
1. 2. 3. 4. How important is the management function to individuals and to society? The text mentions that management is both a science and an art. Is one of these more important than the other? Under what circumstances might one ingredient be more important than the other? The purpose of a management course is to teach students about management, not to teach them to be managers Do you agree or disagree with this statement? Discuss. What is the difference between efficiency and effectiveness? What is more important for performance? Can an organisation succeed in both simultaneously?

References
1. 2. 3. L.A. Allen, Management and Organisation, McGraw-Hill Book Company, Tokyo, 1958. Theo Haimann, Professional Management, Eurasia Publishing House, 1966. Dalton McFarland, Management : Foundation and Practices, Fifth edition, Macmillan, New York, 1979.

4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22.

Henry Fayol, General and Industrial Management, London, Sir Issac Pitman & Sons Ltd., 1949. George R. Terry, Principles of Management, Homewood, Illinois, Richard D. Irwin, 1968. Lawrence A. Appley, Management The Simple Way, Personnel, Vol. 19, No. 4. Peter F. Drucker, Management Tasks, Responsibilities, Practices, London, William Hinemann Ltd., 1974. W.E. Moore, The Professions: Roles and Rules, New York, Basic Books, 1978. W.H. Newman, Administrative Action, Englewood Cliffs, Prentice-Hall, 1950, Ch.1. E.F.L. Brech, Principles and Practice of Management, London, Pitman, 1972, Ch. 1. Joseph L. Massie, Essentials of Management, Prentice-Hall of India, New Delhi, 1980. Harold Koontz and Cyril ODonnell, Essentials of Management, Tata McGraw-Hill, New Delhi, 1980. Urwick and Gulick, Papers on the Science of Administration, New York, Institute of Public Administration, 1937. J.D. Mooney and A.C. Reiley, Onward Industry, New York, Harper and Row, 1931. Rensis Likert, The Human Organisations, New York, McGraw-Hill, 1967. Elton Mayo, The Human Problems of Industrial Civilisation, New York, Macmillan Company, 1933. Douglas McGregor, The Human Side of the Enterprise, New York, McGraw-Hill, 1960. Chris Argyris, Personality and Organisation, New York, Harper and Brother, 1957. E. Dale, Management: Theory and Practice, New York, McGraw-Hill, 1978. P.L. Tandon, Professional Management in India, Department of Business Management, PAU, 1974. W. Oberg, Cross-cultural Perspectives on Management Principles, Academy of Management Journal, June, 1963. A.R. Negandhi and B.D. Estafen, A Research Model to Determine the Applicability of American Management Knowhow in Differing Cultures and Environments, Academy of Management Journal, Dec., 1967.

Websites
To learn more about how Bill Gates of Microsoft manages a giant cadre of knowledge workers visit


www.microsoft.com/billgates. www.business-today.com www.economictimes.com www.thehindubusinessline.com

To know more about best employers in India, visit



Also, visit the two most useful websites for learning more about Indian businesses and their operations
 

Skill Building Exercise

 ASSESS YOUR LEADERSHIP POTENTIAL
Read the statements below carefully. After each statement, circle whether you agree or disagree. Do this for all eleven statements before you look at the answers. 1. 2. 3. 4. 5. 6. 7. 8. Good leaders are born, not made. I tend to treat my subordinates well as long as they do what I say. Agree Agree Disagree Disagree Disagree Disagree Disagree Disagree Disagree Disagree

Good leaders depend on their followers as much as they depend on themselves. Agree As a leader, I would always include the reasons when asking a subordinate to perform a task. A good leader will achieve his or her objectives at any cost. As a group manager, I would never entrust an important project to anyone but myself, even if it means working overtime. A key to good leadership is being consistent in how one leads. If justified, I would recommend a subordinate for a promotion to a position equal to or even higher than my own position. Agree Agree Agree Agree Agree

9. 10. 11.

Some subordinates can participate in the decision-making process without threatening a leader's position. If my group failed to achieve an objective because of a group member's failure, I would explain it as such to my superiors. I consider myself indispensable to the company in my present position.

Agree Agree Agree

Disagree Disagree Disagree

Scoring Your Responses A point value has been assigned to each statement. To determine your score, simply total the values of your responses. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. Agree Agree Agree Agree Agree Agree Agree Agree Agree Agree Agree 0 0 0 0 0 0 0 1 1 0 0 Disagree Disagree Disagree Disagree Disagree Disagree Disagree Disagree Disagree Disagree Disagree 1 1 1 1 1 1 1 0 0 1 1

To facilitate understanding, the scoring is now briefly explained. 1. 2. 3. 4. Although some leaders are born, for the most part, leadership is an acquired management skill. The thinking expressed in this statement is similar to the Machiavellian concept of the benevolent dictator. Although, such behaviour can be useful, it tends not to be successful. Mutual dependence is important. The best results cannot be achieved single-handedly. Here "always" is the key word. Subordinates do not always need nor should they always be given the reasons why. For example, when a company is negotiating to acquire another business, the confidentiality of the situation does not allow the leader to give reasons for certain actions. Whilst achieving one's objectives is important, it should not be done at any cost. Sometimes, the costs may outweigh the value of the goal. Also, if a manager achieves a goal at the expense of his subordinates, it could lead to failure in achieving subsequent objectives. A good leader recognises the need to delegate responsibility to competent subordinates. When justified, this should include responsibility for important projects. There is no one way of being an effective leader. The effective leader is flexible, and changes his approach to meet the needs of the particular employee and/or situation. A successful leader is also a successful trainer. One result of effective leadership is the ability to promote qualified subordinates to any level. In participative decision-making, by experienced and knowledgeable subordinates, the leader's role is not usurped.

5.

6. 7. 8. 9.

10. 11.

An effective leader always takes responsibility for a subordinate's actions, whether those actions result in success or failure. The ineffective leader blames everyone and everything except himself. No one is or should be indispensable. If you feel that this is the case, you have succeeded in locking yourself into a situation, from which you cannot progress. Stagnation is the result.

Assessing Your Potential In assessing your score, bear in mind that this device is not a test but an indicator of your leadership potential. If your score was 11 to 9, you have excellent potential; indeed, your leadership ability is probably already self-evident. A score of 8 to 6 shows good potential but that some thinking needs to be sharpened or changed. A score of 5 to 0 suggests that, drastic changes are needed and now. How did you do? It is important to recognise that individuals can change over time. What you scored today is not necessarily what you will score tomorrow. It could be better, but it could also be worse. That's why you need to monitor periodically your thinking about leadership style. There are three ways you can manage this monitoring process. Firstly, you can look at other supervisors and managers and decide which of them you would follow. Why would you follow them? Is their behaviour consistent with the responses to the 11 statements discussed? Consider, too, those whom you would not follow and why. How does their behaviour differ from those individuals whom you would follow? Answering these questions can provide a better understanding about your own leadership style because the type of leader you would follow is the type of leader you would most want to be. Secondly, you should go back and review the statements. Do the explanations make sense to you? Could you successfully apply them to situations at work? If not, why not? In answering this last question, try to be as specific as possible. Listing all the negative reasons is a worthwhile exercise, since these reasons probably reflect your own behaviour.

Leadership, itself, is a positive force. It's a positive force for your subordinates and your organisation. But to be effective, leadership has to be monitored periodically by the one person it will most benefit-you.