Principles Of Management Unit 5

A leader is "a person who influences a group of people towards the
achievement of a goal“.
Leader provides direction , guidance , restores confidence and makes
the way easy for achieving the objectives .
Definitions
According to wendell french has defined leadership as the process of
influencing the behaviour of others on the direction of a goal or set
of goals or , more broadly ,towards a vision of the future.
According to koontz and o donnell defined leadership as influence
the art or process of influencing people so that they will strive
willingly towards the achievement of group goals.

Leadership may be defined as
L = F(f, g, w, s)
f = followers
g = goal
w = a measure of willingness on the part of subordinates
s = a given situation

DIFFERENCE BETWEEN A LEADER AND A BOSS
A BOSS
1. Tells what to do
2. Relies on authority
3. Drives his men,
4. Delegates responsibility
5. Shows who is wrong
6. Demands respect,
7. Production oriented
8. Blames others for
9. failures
10. Believes in “I”.
A LEADER
1. Tells why to do and
2. how to do.
3. Depends on goodwill.
4. Inspires his men
5. Delegates authority
6. only
7. Shows what is wrong
8. Commands respect
9. People oriented
10. Gives all credit for all successes.
11. Believes in “WE”

LEADERSHIP FUNCTIONS
1. Defining the task,
2. Planning,
3. Briefing,
4. Controlling,
5. Evaluating,
6. Motivating,
7. Organising,
8. Providing

DEFINING THE TASK
TASK i.e. SOMETHING THAT NEEDS TO BE DONE, SHOULD BE...
1. Clear
2. Concrete
3. Time bound
4. Realistic,
5. Challenging
6. Capable of evaluation.
PLANNING
It means building a mental bridge from where you are now to where you want to be .
MOTIVATING
1. Motivation word comes from Latin verb “to move” Leaders are doing it by “Rewards”
and “Threats” approach,
2. We all motivate ourselves by responding to inner needs.
3. A leader must understand ‘needs’ of his men, to motivate them,
4. A.H. Maslow’s concept of hierarchy of needs is an useful tool to understand needs of an
individual.

The essence of leadership are
1. Leadership is the process of influencing behavior of others
2. Leadership uses non –coercive method to direct and coordinate
the activities of the members
3. Leadership directs the people to attain some goal.
4. Leadership occupies a role for a given time and for a group
5. A leader possesses qualities to influence others
6. Leadership gives people a vision for future
7. It is group activity
8. Leadership is a continuous process of influencing behaviour
9. It is a psychological process and multidimensional in character

Importance of leadership
1. A leader should act as a friend , philosopher and guide to the
people whom he is leading
2. He must have the capacity to recognize their potentialities and
transform them into realities
3. A leader should win the confidence of his people
4. He must be able to unite the people as a team and build up
team spirit
5. He maintains discipline among his group and develops a sense
of responsibility
6. He must build up a high morale among his people
7. He should motivate his people to achieve goals . He should try
to raise high moral and ethical standards among his people

Leadership characteristics
According to jago
1. Energy , drive
2. Appearance
3. Personality
4. A sense of co-operation
5. Enthusiasm
6. Personality- height and weight
7. Initiative
8. Intelligence
9. Judgment
10. Self confidence
11. Sociability
12. Tact and diplomacy
13. Moral courage and integrity
14. Will power and flexibility
15. Emotional stability
16. Knowledge of human relation

Following are the important functions of a leader
1. Setting Goals
2. Organizing
3. Initiating Action
4. Co-Ordination
5. Direction and Motivation
6.Link between Management and Workers

Leadership styles
•Autocratic or dictatorial leadership style
•Participative or democratic
•Laissez or free reign
•Bureaucratic

Autocratic leadership style
1. Autocratic leadership style is centered on the boss. In this leadership the leader holds all
authority and responsibility.
2. In this leadership, leaders make decisions on their own without consulting subordinates.
They reach decisions, communicate them to subordinates and expect prompt
implementation.
3. Autocratic work environment does normally have little or no flexibility.
4. In this kind of leadership, guidelines, procedures and policies are all natural additions of
an autocratic leader.
5. Statistically, there are very few situations that can actually support autocratic leadership.
Some of the leaders that support this kind of leadership include: Albert J Dunlap (Sunbeam
Corporation) and Donald Trump (Trump Organization) among others.

2. Democratic Leadership
a) In this leadership style, subordinates are involved in making decisions. Unlike autocratic,
this headship is centered on subordinates’ contributions.
b) The democratic leader holds final responsibility, but he or she is known to delegate
authority to other people, who determine work projects.
c) The most unique feature of this leadership is that communication is active upward and
downward.
With respect to statistics, democratic leadership is one of the most preferred leadership,
and it entails the following:
• Fairness
• competence
• creativity
• Courage
• intelligence and honesty.

Laissez-faire Leadership
1. Laissez-faire leadership gives authority to employees.
2. According to azcentral, departments or subordinates are allowed to work as they
choose with minimal or no interference.
3. According to research, this kind of leadership has been consistently found to be the
least satisfying and least effective management style.

Bureaucratic leadership style
1. Bureaucratic leadership style rely on rules and regulations and clearly defined positions
within organizations.
2. They tend to be people who are well organized.
3. People in bureaucratic leadership are likely to report only to their immediate supervisor
or, in the case of a president or CEO of a company, to the board of directors.
4. Stepping out of the organizational role they play is difficult for them.
5. Employees in bureaucracies are promoted based on their ability to conform to the rules.
Bureaucratic leadership is based on strict hierarchies and often depends on written job
descriptions and organization charts to explain the hierarchy and their relationships.

Organisational change
•Organisational change is the law of nature. It is a necessary way of life in
most organisations for their survival and growth.
•The term organisational change implies the creation of imbalances in the
existent pattern or situation.
•Adjustments among people , technology and structure set up established
when an organization operates for a long term.
•Change requires individual and organisations to make new adjustments.
•Complexity and fear of adjustment give rise to resistance and problem of
change.
•Change could be both reactive and proactive. A proactive change has
necessarily to be planned to attempt to prepare for anticipated future
challenges.
•A reactive challenge may be an automatic a planned response to change
taking place in the environment.

Types of changes
Changes can be broadly divided into two types
1.Work change
2.Organisational change
Work change: work change includes changes in
• Machinery
• Working hours
• Methods of work
• Job enlargement
• Job enrichment
• Job redesign
• Re-engineering
Change may also be in the working hours like morning shifts , evening
shifts , operation of the organization on Sundays /holidays

Changes to relating to organisation include
•Change in employees due to transfers
•Promotion
•Retrenchment
•Layoff
•Restructuring organization
•Introduction of new products or services
•Changes in organisational goals or objectives

Reasons for change
1. Changes in organisations are a must, whether brought about
deliberately or unwillingly
2. The reasons for changes are categorized as follows
3. Changes in business conditions
4. Changes in managerial personnel
5. Deficiency in existing organisational patterns
6. Technology
7. Psychological reasons
8. Government policies
9. Size of the organisations

Resistance to change and reasons for resistance
•The best example is resistance of employees to computerization during
early 1990s
•Change of any type requires readjustments . Man always fears the
unknown , and a change represents the unknown
Reasons for Resistance
Economic reason personal reason social reason
1. fear of reduction in 1. Need for training 1.Needforsocialadjustment
Employment 2.Boredom and monotony 2. Taking change impose
2.Fear of denotation 3.No participation in change 3. Other consideration
3.Fear of work load

Principles of change
Management should also follow the undetermined principles of change
•Understanding the change itself ,its purpose , its benefits and then making
them understood to the employees
•Estimating the reason for the possible resistance to change and preparing
to allay their function
•Mindful of channels of authority
•Preparedness for all the questions and criticism
•Listening to the suggestions and criticism of employees and incorporating
them
•Creating interest in them , convincing them and preparing them and
•Keeping in touch with the process of change

Approaches to organisational change
Management is said to be an agent of change . It means that the
management has to introduce change successfully in its organisation . It has
to overcome the resistance and make it a successful venture.
The management must realize that resistance to change is basically
a human problem , though on surface , it may appear to be related to the
technical aspect of change.
1. Participation of employees
2. Planning for change
3. Protecting employees interest
4. Group dynamics
5. Caution and slow introduction
6. Positive motion
7. Sharing the benefits of change
8. Training and development
9. Career planning and development and organisation development

Three Types of Change Management Models
1. Lewin’s Change Management Mode
2. McKinsey7-Smodel
3. Kotter’s 8 Step Change Model
Lewin’s Change Management Model
This change management model was created in the 1950s by
psychologist Kurt Lewin. Lewin noted that the majority of people tend to
prefer and operate within certain zones of safety. He recognized three
stages of change:
1. Unfreeze – Most people make an active effort to resist change. In
order to overcome this tendency, a period of thawing or unfreezing must
be initiated through motivation.

2. Transition – Once change is initiated, the company moves into a
transition period, which may last for some time. Adequate leadership and
reassurance is necessary for the process to be successful.
3. Refreeze – After change has been accepted and successfully
implemented, the company becomes stable again, and staff refreezes as
they operate under the new guidelines.
While this change management model remains widely used today, it is
takes time to implement. Of course, since it is easy to use, most companies
tend to prefer this model to enact major changes.

McKinsey 7-S Model
The McKinsey 7-S model offers a holistic approach to organization. This
model, created by Robert Waterman, Tom Peters, Richard Pascale, and
Anthony Athos during a meeting in 1978, has 7 factors that operate as
collective agent of change:
1. Shared values
2. Strategy
3. Structure
4. Systems
5. Style
6. Staff
7. Skills

The McKinsey 7-S Model offers four primary benefits
1. It offers an effective method to diagnose and understand an organization.
2. It provides guidance in organizational change.
3. It combines rational and emotional components.
4. All parts are integral and must be addressed in a unified manner.

Kotter’s 8 Step Change Model
This model, created by Harvard University Professor John Kotter, causes
change to become a campaign. Employees buy into the change after
leaders convince them of the urgent need for change to occur. There are 8
steps are involved in this model
1. Increase the urgency for change.
2. Build a team dedicated to change.
3. Create the vision for change.
4. Communicate the need for change.
5. Empower staff with the ability to change.
6. Create short term goals.
7. Stay persistent.
8. Make the change permanent.

Significant advantages to the model are
– The process is an easy step-by-step model.
– The focus is on preparing and accepting change, not the actual change.
– Transition is easier with this model.
Organisational Development
OD can be defined as a technique for bringing change in the entire
aspect of the organisation , rather than focusing attention on
individuals , so that change is easily absorbed.

OD Process
Step 1: initial diagnosis
Step2: data collection
Step3: data feedback and confrontation
Step4: selection and design of intervention
Step 5: implementation of intervention
Step6: action planning and problem solving
Step7: team building
Step 8: intergroup development
Step9: evaluation and follow up

OD Interventions / Techniques
•Survey feed back
•Process consultation
•Goal setting and planning
•Managerial grid
•Six phases in Grid OD
•MBO
•Sensitivity training
•Team building
•Job enrichment

Survey feed back
This intervention provides data and information to the managers.
•Attitudes of employees about wage level and structure
•Hours of work
•Working conditions and relations are collected and the results are supplied
to the top executives teams
Process consultation
The process consultant meets the members of the department in work
teams, observes their interactions, problem identification skills , problems
solving procedures.
Goal setting and planning: each division in an organisation or branch zonal
office sets the goals or formulates the plans relating to profitability, market
share , human resources productivity.

Six phases in grid OD
First phase is concerned with studying the grid as a theoretical knowledge
to understand human behaviour in the organisation.
Second phase is concerned with team work development . A seminar is
conducted for a weeks duration . The teams of the members of the
organisation participate in the seminar
This seminar helps the members in developing each members perception
of the teams culture.
Third phase is intergroup development , this phase aims at developing
relationships between different departments like marketing , finance,
production, personnel , research and development.

Fourth phase is concerned with creation of an ideal strategic model for
the organisation. Chief executive and their immediate subordinates
participate in this activity.
Fifth phase is concerned with implementation of the strategic model
available resources and required resources , procuring them and
implementing the model
Sixth phase is concerned with the critical evaluation of the model and
making necessary adjustments for successful implementation

Sensitivity training : the most commonly used OD Intervention is sensitivity
training . It is also called laboratory training .
As it is conducted by creating an experimental laboratory situation
in which employees are brought together , in groups to interact in an
unstructured environment
The members are encouraged to interact with new members and
new individuals behaviors.
The objective of laboratory training are
To help people understand themselves better
To create better understanding of others
To gain insight into the group process and
To develo pspecific behaviour skills

•Some people never understand why they feel and act as they do and how
the others feel about them
•Some ate insensitive to the effects of their behavoiur upon others and
their orders upon subordinates
•Laboratory training helps such people to understand the impact if their
behaviour on others
•This training develops the communication skills of the employers and
develop them as good listeners

Principles Of Management Unit 5

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