Media Management and

entrepreneurship
UNIT:2 – MANAGEMENT –
[Function and Principles]
Lesson:1 – Management: Definition, Needs
and Principles
• “Management is the process of designing and maintaining an environment in which individuals, working
together in groups, efficiently accomplish selected aims.”
-Harold Koontz and Heinz Weihrich

• “Management is defined as the process of planning, organizing, actuating and controlling an organization’s
operations in order to achieve coordination of the human and material resources essential in the effective
and efficient attainment of objectives.”
-Robert L. Trewelly and M. Gene Newport

• “Management is the process of working with and through others to effectively achieve organizational
objectives by efficiently using limited resources in the changing environment.”
-Kreitner
NEEDS OF MANAGEMENT
The needs of management can vary depending on the industry, company size, and specific circumstances.
However, some common needs of management across different organizations include:

1.Planning and Strategy: Management needs tools and processes to effectively plan and develop
strategic objectives for the organization. This involves setting goals, determining the path to achieve them,
and allocating resources accordingly.
2.Decision-Making: Management needs access to accurate and timely information to make informed
decisions. They require systems and processes to gather data, analyze it, and evaluate various options
before making important business decisions.
3.Organizational Structure and Design: Management needs to establish an effective organizational
structure that enables efficient coordination and communication within the company. This includes
defining roles and responsibilities, establishing reporting lines, and ensuring proper delegation of
authority.
4.Leadership and Team Management: Management needs skills and resources to lead and manage
teams effectively. This involves setting clear expectations, motivating employees, providing guidance and
support, and fostering a positive and productive work culture.
5.Financial Management: Management needs to have a good understanding of financial management
principles to effectively allocate and manage financial resources. This includes budgeting, financial
analysis, forecasting, and ensuring financial sustainability.
6.Performance Measurement and Evaluation: Management needs systems and tools to measure and
evaluate the performance of the organization, departments, and individuals. This helps in identifying areas
for improvement, setting performance targets, and ensuring accountability.
7. Risk Management: Management needs to identify and mitigate risks that could impact the organization's
objectives. This includes developing risk management processes, implementing internal controls, and
ensuring compliance with applicable laws and regulations.
8. Communication and Stakeholder Management: Management needs effective communication skills
and tools to engage with stakeholders, including employees, customers, suppliers, investors, and the wider
community. This involves developing communication strategies, managing relationships, and addressing
concerns and feedback.
9. Continuous Learning and Development: Management needs to continuously update their skills and
knowledge to keep up with industry trends, new technologies, and best practices. This may involve
attending training programs, seeking professional development opportunities, and staying informed through
networking and industry publications.
10. Change Management: Management needs to effectively manage organizational change and adapt to
evolving business environments. This includes facilitating change initiatives, addressing resistance, and
ensuring smooth transitions during periods of change.
These needs of management are interconnected and require a combination of skills, resources, and
supportive systems to effectively lead and manage organizations.
PRINCIPLES OF MANAGEMENT

1. Division of Work:
• Work is divided into small tasks/jobs. A trained specialist who is competent is required to perform each job.
Thus, division of work leads to specialization.
• According to Fayol, “The intent of division of work is to produce more and better work for the same effort.
Specialization is the most efficient way to use human effort.”
• In business work can be performed more efficiently if it is divided into specialized tasks; each performed by
a specialist or trained employee. This results in efficient and effective output.
• Thus, in a company we have separate departments for finance, marketing, production and human resource
development etc. All of them have specialized persons. Collectively they achieve production and sales
targets of the company.
2. Authority and Responsibility:
• According to Fayol, “Authority is the right to give orders and obtain obedience, and responsibility is the
corollary of authority.
• The two types of authority are official authority, which is the authority to command, and personal authority
which is the authority of the individual manager.” Authority is both formal and informal.
• Managers require authority commensurate with their responsibility. There should be a balance between
authority and responsibility. An organization should build safeguards against abuse of managerial power. At
the same time a manager should have necessary authority to carry out his responsibility.
3. Discipline:
• Discipline is the obedience to organizational rules and employment agreement which are necessary for the working of
the organization.
• According to Fayol, discipline requires good superiors at all levels, clear and fair agreements and judicious
application of penalties.
• Suppose management and labour union have entered into an agreement whereby workers have agreed to put in extra
hours without any additional payment to revive the company out of loss. In return the management has promised to
increase wages of the workers when this mission is accomplished.
• Here discipline when applied would mean that the workers and management both honour their commitments without
any prejudice towards one another.
4. Unity of Command:
• According to Fayol there should be one and only one boss for every individual employee. If an employee gets orders
from two superiors at the same time the principle of unity of command is violated.
• The principle of unity of command states that each participant in a formal organization should receive orders from
and be responsible to only one superior.
• If this principle is violated “authority is undermined, discipline is in jeopardy, order disturbed and stability
threatened”. The principle resembles military organization. Dual subordination should be avoided. This is to prevent
confusion regarding tasks to be done.
• This can be avoided if there is coordination between various departments.
5. Order:
• According to Fayol, “People and materials must be in suitable places at appropriate time for maximum efficiency.”
The principle of order states that ‘A place for everything (everyone) and everything (everyone) in its (her/his) place’.
• Essentially it means orderliness. If there is a fixed place for everything and it is present there, then there will be no
hindrance in the activities of business/ factory. This will lead to increased productivity and efficiency.
6. Unity of Direction:
• All the units of an organisation should be moving towards the same objectives through coordinated and focussed
efforts. Each group of activities having the same objective must have one head and one plan.
• This ensures unity of action and coordination. For example, if a company is manufacturing motorcycles as well as cars
then it should have two separate divisions for both of them.
• Each division should have its own incharge, plans and execution resources. On no account should the working of two
divisions overlap.
7. Subordination of Individual Interest to General Interest:
• The interests of an organisation should take priority over the interests of any one individual employee according to
Fayol.
• Every worker has some individual interest for working in a company. The company has got its own objectives. In all
the situations the interests of the group/company will supersede the interest of any one individual. This is so because
larger interests of the workers and stakeholders are more important than the interest of any one person.
• For example, interests of various stakeholders i.e., owners, shareholders, creditors, debtors, financers, tax authorities,
customers and the society at large cannot be sacrificed for one individual or a small group of individuals who want to
exert pressure on the company.
8. Remuneration of Employees:
• The overall pay and compensation should be fair to both employees and the organisation. The employees should be
paid fair wages, which should give them at least a reasonable standard of living.
• At the same time it should be within the paying capacity of the company. In other words, remuneration should be just
and equitable. This will ensure congenial atmosphere and good relations between workers and management.
Consequently, the working of the company would be smooth.
9. Centralisation and Decentralisation:
• The concentration of decision-making authority is called centralisation whereas its dispersal among more than one person
is known as decentralisation.
• According to Fayol, “There is a need to balance subordinate involvement through decentralisation with managers’
retention of final authority through centralisation.” The degree of centralisation will depend upon the circumstances in
which the company is working.
• In general large organisations have more decentralisation than small organisations. For example, panchayats in our country
have been given more powers to decide and spend funds granted to them by the government for the welfare of villages.
This is decentralisation at the national level.
10. Scalar Chain:
• An organisation consists of superiors and subordinates. The formal lines of authority from highest to lowest ranks are
known as scalar chain.
• According to Fayol, “Organisations should have a chain of authority and communication that runs from top to bottom and
should be followed by managers and the subordinates.”
• Let us consider a situation where there is one head ‘A’ who has two lines of authority under her/ him. One line consists of
B-CD-E-F. Another line of authority under ‘A’ is L-M-N-O-P. If ‘E’ has to communicate with ‘O’ who is at the same level
of authority then she/he has to traverse the route E-D-C-B-A-L-M-N-O. This is due to the principle of scalar chain being
followed in this situation. According to Fayol, this chain should not be violated in the normal course of formal
communication. However, if there is an emergency then ‘E’ can directly contact ‘O’ through ‘Gang Plank’ as shown in the
diagram. This is a shorter route and has been provided so that communication is not delayed. In practice you find that a
worker cannot directly contact the CEO of the company. If at all she/he has to, then all the formal levels i.e., foreman,
superintendent, manager, director etc have to know about the matter. However, in an emergency it can be possible that a
worker can contact CEO directly.
11. Equity:
• Good sense and experience are needed to ensure fairness to all employees, who should be treated as fairly as
possible,” according to Fayol.
• This principle emphasises kindliness and justice in the behaviour of managers towards workers. This will ensure
loyalty and devotion. There should be no discrimination against anyone on account of sex, religion, language, caste,
belief or nationality etc.
• In practice we can observe that now a days in multinational corporations people of various nationalities work together
in a discrimination free environment. Equal opportunities are available for everyone in such companies to rise.
12. Stability of Personnel:
• “Employee turnover should be minimised to maintain organisational efficiency”, according to Fayol.
• Personnel should be selected and appointed after due and rigorous procedure. But once selected they should be kept at
their post/ position for a minimum fixed tenure. They should have stability of tenure. They should be given reasonable
time to show results.
• Any adhocism in this regard will create instability/insecurity among employees. They would tend to leave the
organisation. Recruitment, selection and training cost will be high. So stability in tenure of personnel is good for the
business.
13. Initative:
• Workers should be encouraged to develop and carry out their plans for improvements according to Fayol. Initiative
means taking the first step with self-motivation. It is thinking out and executing the plan. It is one of the traits of an
intelligent person.
• Initiative should be encouraged. But it does not mean going against the established practices of the company for the
sake of being different. A good company should have an employee suggestion system whereby initiative/ suggestions
which result in substantial cost/time reduction should be rewarded.
14. Espirit De Corps:
• Management should promote a team spirit of unity and harmony among employees, according to Fayol.
• Management should promote teamwork especially in large organisations because otherwise objectives would be
difficult to realise. It will also result in a loss of coordination.
• A manager should replace ‘I’ with ‘We’ in all his conversations with workers to foster team spirit. This will give
rise to a spirit of mutual trust and belongingness among team members. It will also minimise the need for using
penalties.

Characteristics of Management Importance of management

1. Management is a goal-oriented process
2. Management is all pervasive
3. Management is multidimensional
• Management of work
• Management of people
• Management of operations
4. Management is a continuous process
5. Management is a group activity
6. Management is a dynamic function
7. Management is an intangible force
1. Management helps in achieving group
goals
2. Management increases efficiency
3. Management creates a dynamic
organisation
4. Management creates a dynamic
organisation
5. Management helps in achieving personal
objectives
6. Management helps in the development of
society
Lesson:2 – Management Functions:
Planning, Organizing, Directing, Staffing,
controlling and coordination
• Management has been described as a social process involving responsibility for economical and effective planning
& regulation of operation of an enterprise in the fulfillment of given purposes.
• It is a dynamic process consisting of various elements and activities. These activities are different from operative
functions like marketing, finance, purchase etc. Rather these activities are common to each and every manger
irrespective of his level or status.
• Different experts have classified functions of management.
• According to George & Jerry, “There are four fundamental functions of management i.e. planning, organizing,
actuating and controlling”.
• According to Henry Fayol, “To manage is to forecast and plan, to organize, to command, & to control”.
• Whereas Luther Gullick has given a keyword ’POSDCORB’ where P stands for Planning, O for Organizing, S for
Staffing, D for Directing, Co for Co-ordination, R for reporting & B for Budgeting.
• But the most widely accepted are functions of management given by KOONTZ and O’DONNEL
i.e. Planning, Organizing, Staffing, Directing and Controlling.
• For theoretical purposes, it may be convenient to separate the function of management but practically these
functions are overlapping in nature i.e. they are highly inseparable. Each function blends into the other & each
affects the performance of others.
1. Planning
• 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”.
• A plan is a future course of actions. It is an exercise in problem solving & decision making.
• Planning is determination of courses of action to achieve desired goals. Thus, planning is a systematic
thinking about ways & means for accomplishment of pre-determined goals.
• Planning is necessary to ensure proper utilization of human & non-human resources. It is all pervasive, it is
an intellectual activity and it also helps in avoiding confusion, uncertainties, risks, wastages etc.
• “Planning is deciding in advance what to do, how to do and who is to do it. Planning bridges the gap
between where we are to, where we want to go. It makes possible things to occur which would not otherwise
occur”

Purpose of Planning
1) Reduces uncertainty and risk
2) Provides sense of direction
3) Encourages innovation & creativity
4) Helps in coordination
5) Guides decision making
6) Provides a basis for decentralization
7) Provides efficiency in operation
8) Facilitates control
STEPS IN PLANNING PROCESS
(1) Setting Objectives
•This is the primary step in the process of planning which specifies the objective of an organization, i.e. what an
organization wants to achieve.
•The planning process begins with the setting of objectives.
•Objectives are end results which the management wants to achieve by its operations.
•Objectives are specific and are measurable in terms of units.
•Objectives are set for the organization as a whole for all departments, and then departments set their own objectives within
the framework of organizational objectives.

(2) Developing Planning Premises

•Planning is essentially focused on the future, and there are certain events which are expected to affect the policy formation.
•Such events are external in nature and affect the planning adversely if ignored.
•Their understanding and fair assessment are necessary for effective planning.
•Such events are the assumptions on the basis of which plans are drawn and are known as planning premises.

(3) Identifying Alternative Courses of Action

•Once objectives are set, assumptions are made.
•Then the next step is to act upon them.
•There may be many ways to act and achieve objectives.
•All the alternative courses of action should be identified.
(4) Evaluating Alternative Course of Action
•In this step, the positive and negative aspects of each alternative need to be evaluated in the light of objectives to be
achieved.
•Every alternative is evaluated in terms of lower cost, lower risks, and higher returns, within the planning premises and
within the availability of capital.

(5) Selecting One Best Alternative

•The best plan, which is the most profitable plan and with minimum negative effects, is adopted and implemented.
•In such cases, the manager’s experience and judgement play an important role in selecting the best alternative.

(6) Implementing the Plan

•This is the step where other managerial functions come into the picture.
•This step is concerned with “DOING WHAT IS REQUIRED”.
•In this step, managers communicate the plan to the employees clearly to help convert the plans into action.
•This step involves allocating the resources, organising for labour and purchase of machinery.

(7) Follow Up Action

•Monitoring the plan constantly and taking feedback at regular intervals is called follow-up.
•Monitoring of plans is very important to ensure that the plans are being implemented according to the schedule.
•Regular checks and comparisons of the results with set standards are done to ensure that objectives are achieved.
2. ORGANISING
• 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 is the function of management which follows planning. It is a function in which the
synchronization and combination of human, physical and financial resources takes place. All the three
resources are important to get results. Therefore, organizational function helps in achievement of results
which in fact is important for the functioning of a concern.
• According to Chester Barnard, “Organizing is a function by which the concern is able to define the role
positions, the jobs related and the co- ordination between authority and responsibility. Hence, a manager
always has to organize in order to get results.

A manager performs organizing function with the help of following steps:-

1.Identification of activities - All the activities which have to be performed in a concern have to be identified
first. For example, preparation of accounts, making sales, record keeping, quality control, inventory control, etc.
All these activities have to be grouped and classified into units.
2.Departmentally organizing the activities - In this step, the manager tries to combine and group similar and
related activities into units or departments. This organization of dividing the whole concern into independent
units and departments is called departmentation.
3. Classifying the authority - Once the departments are made, the manager likes to classify the powers and its
extent to the managers. This activity of giving a rank in order to the managerial positions is called hierarchy. The
top management is into formulation of policies, the middle level management into departmental supervision and
lower level management into supervision of foremen. The clarification of authority help in bringing efficiency in
the running of a concern. This helps in achieving efficiency in the running of a concern. This helps in avoiding
wastage of time, money, effort, in avoidance of duplication or overlapping of efforts and this helps in bringing
smoothness in a concern’s working.
4. Co-ordination between authority and responsibility - Relationships are established among various groups to
enable smooth interaction toward the achievment of the organizational goal. Each individual is made aware of his
authority and he/she knows whom they have to take orders from and to whom they are accountable and to whom
they have to report. A clear organizational structure is drawn and all the employees are made aware of it.

3. 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.
• 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 and action of people, because planning,
organizing and staffing are the mere preparations for doing the work.
Direction is that inter-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- implies overseeing the work of subordinates by their superiors. It is the act of watching & directing
work & workers.
Motivation- means inspiring, stimulating or encouraging the sub-ordinates with zeal to work. Positive, negative,
monetary, non-monetary incentives may be used for this purpose.
Leadership- may be defined as a process by which manager guides and influences the work of subordinates in
desired direction.
Communications- is the process of passing information, experience, opinion etc from one person to another. It is
a bridge of understanding.

4. STAFFING
The managerial function of staffing involves manning the organization structure through proper and effective
selection, appraisal and development of the personnels to fill the roles assigned to the employers/workforce.
According to Theo Haimann, “Staffing pertains to recruitment, selection, development and compensation of
subordinates.”
Nature of Staffing Function
1.Staffing is an important managerial function- Staffing function is the most important mangerial act along
with planning, organizing, directing and controlling. The operations of these four functions depend upon the
manpower which is available through staffing function.
2.Staffing is a pervasive activity- As staffing function is carried out by all mangers and in all types of concerns
where business activities are carried out.
3. Staffing is a continuous activity- This is because staffing function continues throughout the life of an
organization due to the transfers and promotions that take place.
4. The basis of staffing function is efficient management of personnels- Human resources can be efficiently
managed by a system or proper procedure, that is, recruitment, selection, placement, training and development,
providing remuneration, etc.
5. Staffing helps in placing right men at the right job. It can be done effectively through proper recruitment
procedures and then finally selecting the most suitable candidate as per the job requirements.
6. Staffing is performed by all managers depending upon the nature of business, size of the company,
qualifications and skills of managers,etc. In small companies, the top management generally performs this function.
In medium and small scale enterprise, it is performed especially by the personnel department of that concern.

5. CONTROLING
• 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.
• According to Theo Haimann, “Controlling is the process of checking whether or not proper progress is being
made towards the objectives and goals and acting if necessary, to correct any deviation”.
• According to Koontz & O’Donell “Controlling is the measurement & correction of performance activities of
subordinates in order to make sure that the enterprise objectives and plans desired to obtain them as being
accomplished”.
Therefore controlling has following steps:
a.Establishment of standard performance.
b.Measurement of actual performance.
c.Comparison of actual performance with the standards and finding out deviation if any.
d.Corrective action.

COORDINATION
• According to Mooney and Reelay, “Co-ordination is orderly arrangement of group efforts to provide
unity of action in the pursuit of common goals”.
• According to Charles Worth, “Co-ordination is the integration of several parts into an orderly hole to achieve
the purpose of understanding”.
• Management seeks to achieve co-ordination through its basic functions of planning, organizing, staffing,
directing and controlling. That is why, co-ordination is not a separate function of management because
achieving of harmony between individuals efforts towards achievement of group goals is a key to success of
management.
• Co-ordination is the essence of management and is implicit and inherent in all functions of management.
• A manager can be compared to an orchestra conductor since both of them have to create rhythm and unity
in the activities of group members.
Lesson:3 – Management: Responsibility,
Authority and Accountability
Responsibility, authority, and accountability are interconnected concepts in management
that define the roles and relationships within an organization. Here's an overview of each
term:
Responsibility: Responsibility refers to the obligation or duty to perform specific tasks or
functions. It is assigned to individuals or groups within an organization based on their roles
and job descriptions. When someone is given responsibility, they are expected to carry out
their assigned tasks effectively and meet the associated expectations.
Authority: Authority is the power or right granted to individuals or positions within an
organization to make decisions, give orders, and take actions. It comes with the
responsibility to use that power in a manner that aligns with the organization's goals and
values. Authority can be hierarchical, where higher-level positions have more authority, or it
can be delegated to lower-level positions based on specific tasks or projects.
Accountability: Accountability refers to the obligation of individuals or groups to take
responsibility for their actions, decisions, and outcomes. It involves answering for the
results of their performance and being answerable to others, such as superiors, colleagues,
or stakeholders. Accountability helps ensure that individuals are held responsible for the
Responsibility, authority, and accountability are closely related because they define the roles and expectations of
individuals within an organization:
•Responsibility and authority go hand in hand. When individuals are assigned responsibility, they are typically
granted the authority necessary to fulfill their tasks and make decisions related to their responsibilities. The level
of authority granted should be commensurate with the level of responsibility assigned.
•Accountability is the outcome of responsibility and authority. When individuals are responsible for specific
tasks and have the authority to carry them out, they are also accountable for the results. Accountability ensures
that individuals are answerable for their actions, and it helps establish a system of checks and balances within
the organization.
Effective management involves clearly defining and aligning responsibility, authority, and accountability within
the organization. It ensures that individuals have the necessary resources and support to carry out their
responsibilities, are empowered with appropriate authority, and are held accountable for their performance and
outcomes. This helps promote clarity, efficiency, and accountability at all levels of the organization.

"Accountability is the obligation of an individual to report formally to his superior about the work he has done
to discharge the responsibility’’. When authority is delegated to a subordinate, the person is accountable to the
superior for performance in relation to assigned duties. If the subordinate does a poor job, the superior cannot
evade the responsibility by stating that poor performance is the fault of the subordinate. A superior is normally
responsible for all actions of groups under his supervision even if there are several layers down in the hierarchy.
Simply stated, accountability means that the subordinate should explain the factors responsible for
nonperformance or lack of performance.
 Lesson:4 – Leadership: Importance, Needs
and Types
Leadership
• Leadership is a process by which an executive can direct, guide and influence the behavior and work of
others towards accomplishment of specific goals in a given situation. Leadership is the ability of a manager
to induce the subordinates to work with confidence and zeal.
• Leadership is the potential to influence behavior of others. It is also defined as the capacity to influence a
group towards the realization of a goal. Leaders are required to develop future visions, and to motivate the
organizational members to want to achieve the visions.
• According to Keith Davis, “Leadership is the ability to persuade others to seek defined objectives
enthusiastically. It is the human factor which binds a group together and motivates it towards goals.”

Needs of Leadership:
 Vision: Leaders need to have a clear vision of the future and communicate it effectively. They should be able to
articulate a compelling and inspiring direction that motivates and guides others.
 Communication: Leaders must possess excellent communication skills to effectively convey their vision, goals,
expectations, and feedback to their team or organization. They should be able to listen actively, provide
guidance, and foster open and transparent communication.
 Adaptability: In today's dynamic and rapidly changing world, leaders need to be adaptable and flexible. They should
be open to new ideas, willing to embrace change, and capable of navigating uncertainty and ambiguity.
 Emotional intelligence: Leaders must have high emotional intelligence, which includes self-awareness, empathy,
and the ability to manage their emotions and understand others. Emotional intelligence helps leaders build strong
relationships, resolve conflicts, and create a positive work environment.
 Integrity: Leaders need to demonstrate integrity and ethical behavior. They should act consistently with their values,
maintain trust and credibility, and set a positive example for others to follow.
 Empowerment: Effective leaders empower their team members by delegating tasks, providing autonomy, and
fostering a supportive environment. They recognize and develop the strengths of individuals, encourage
collaboration, and create opportunities for growth and development.
 Decision-making: Leaders are responsible for making informed and timely decisions. They need to analyze
situations, consider various perspectives, gather relevant information, and make choices that align with the overall
vision and values.
 Resilience: Leadership often involves facing challenges and setbacks. Leaders need to demonstrate resilience and
perseverance during difficult times. They should stay focused, remain optimistic, and inspire others to overcome
obstacles and maintain motivation.
 Accountability: Leaders should hold themselves and others accountable for their actions and commitments. They
create a culture of responsibility, set clear expectations, and ensure that everyone is aware of their roles and
responsibilities.
 Continuous learning: Leadership is an ongoing learning process. Effective leaders are committed to personal and
professional growth. They seek new knowledge, stay updated with industry trends, and encourage a culture of
learning within their team or organization.
These needs of leadership are not exhaustive, as leadership is a complex and multifaceted concept. However, addressing
these key areas can help leaders fulfill their responsibilities and contribute to the success of their teams and organizations
Importance of Leadership
Leadership is an important function of management which helps to maximize efficiency and to achieve organizational
goals. The following points justify the importance of leadership in a concern.
1. 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.
2. 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.
3. 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.
4. 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.
5. 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.
6. 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
7. 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.
Types of Leadership

1.Autocratic Leadership: Autocratic leaders make decisions independently and without input from their
team members. They exert strict control over the decision-making process and expect unquestioning
obedience from their subordinates. This style can be effective in emergency situations or when quick
decisions are necessary. However, it can lead to low morale, decreased motivation, and limited creativity
among team members.
2.Democratic Leadership: Democratic leaders involve their team members in the decision-making
process. They seek input, opinions, and ideas from their team and encourage open communication and
collaboration. This style promotes employee engagement, teamwork, and a sense of ownership. It is
especially effective when creative solutions and diverse perspectives are needed.
3.Transformational Leadership: Transformational leaders inspire and motivate their followers to achieve
exceptional performance and personal growth. They articulate a compelling vision, provide mentorship and
support, and encourage their team members to think innovatively and develop their skills. This leadership
style focuses on individual development, building strong relationships, and creating a positive work culture.
4.Transactional Leadership: Transactional leaders set clear expectations, goals, and performance criteria
for their team members. They establish a system of rewards and punishments based on performance, with
rewards given for meeting or exceeding expectations and penalties for falling short. This style emphasizes
task completion, adherence to procedures, and meeting targets, but it may not foster long-term engagement
or creativity.
5. Laissez-Faire Leadership: Laissez-faire leaders adopt a hands-off approach, allowing their team members to have
significant autonomy and decision-making authority. They provide minimal guidance and intervention, instead entrusting
their team members to complete tasks and make decisions independently. This style is effective when team members are
highly skilled, self-motivated, and capable of working with little supervision. However, it can lead to a lack of direction
and coordination if team members require more guidance.
6. Servant Leadership: Servant leaders prioritize the needs and growth of their team members. They focus on serving
their employees, supporting their development, and meeting their needs. Servant leaders listen actively, empathize with
their team members, and facilitate their success. This style promotes a positive work environment, trust, and employee
engagement.
It's important to note that these leadership styles exist on a spectrum, and leaders often display a combination of styles
depending on the situation and the needs of their team. Effective leaders can adapt their approach to different contexts and
leverage various styles to maximize the potential of their team members and achieve organizational goals.
FUNCTIONS OF LEADERSHIP
Leadership encompasses a wide range of functions that are essential for guiding and influencing individuals or groups
towards the achievement of a common goal. Some of the key functions of leadership include:
 Vision and goal-setting: Leaders establish a clear vision and articulate goals that inspire and motivate others. They
provide direction and a sense of purpose to the team or organization.
 Decision-making: Leaders are responsible for making informed and timely decisions. They gather relevant
information, analyze it, and consider different perspectives before making choices that align with the vision and
goals.
 Communication: Effective leaders possess strong communication skills. They are able to convey their vision, goals,
and expectations clearly to others. They also listen actively, encourage open dialogue, and provide feedback to foster
understanding and collaboration.
1.Inspiration and motivation: Leaders inspire and motivate individuals to perform at their best. They create a positive work
environment, recognize achievements, and provide encouragement and support. By leading by example, they inspire trust
and loyalty among their team members.
2.Team building: Leaders focus on building cohesive and high-performing teams. They identify and utilize the strengths of
each team member, encourage collaboration, and promote a sense of belonging and shared purpose. They also resolve
conflicts and address any issues that may hinder team performance.
3.Coaching and development: Leaders support the growth and development of their team members. They provide
guidance, mentorship, and constructive feedback to help individuals improve their skills and achieve their potential. They
also identify training and development opportunities to enhance the overall capabilities of the team.
4.Problem-solving: Leaders are adept at identifying and addressing problems or challenges. They analyze complex
situations, seek input from others, and develop effective solutions. They encourage innovation and creativity within the team
to find new approaches to problems.
5.Accountability and responsibility: Leaders hold themselves and others accountable for their actions and results. They set
clear expectations, establish performance metrics, and ensure that individuals are aware of their responsibilities. They take
ownership of mistakes, learn from them, and foster a culture of accountability within the team or organization.
6.Change management: Leaders navigate and facilitate change within an organization. They anticipate and adapt to
changing circumstances, communicate the need for change, and help others overcome resistance to change. They guide their
team through transitions and foster a culture that embraces continuous improvement.
7.Influencing and stakeholder management: Leaders possess strong influencing skills and effectively manage
relationships with various stakeholders. They build trust, negotiate and persuade others, and engage in networking and
collaboration to achieve shared objectives.
It's important to note that different leadership styles and situations may require a varying emphasis on these functions.
Effective leaders adapt their approach based on the needs of their team and the context in which they operate.