IGNOU assignment MS 01

ASSIGNMENT Course Code : MS-01

Course Title : Management Functions and Behavior

Assignment Code : MS-01/TMA/SEMII/

Coverage : All Blocks

1) What are the Institution Building Skills of the Top Executives in organisational set up? Explain
with examples from various Institution Building Personalities quoting their role relating to
various skills which contributed in Institution Building. Briefly describe the organisational history
you are referring to.

Solution : Top executives are usually thought of as the people who make the major decisions in
an organisation. They often have disjointed and widely varied tasks, ranging from figurehead
duties to conducting meetings. They also have external duties, including such varied ones as
testifying at legislative hearings, greeting important customers, presiding at retirement
luncheons and serving on the board of directors of agencies, such as a local college. The major
duty of the top executive is to deal with broad organisational matters and major projects, such
as long-range planning and the development of organisation‟s strategy. Decisions such as
expanding a plant, dropping a major product, or purchasing another company are made at this
level. Broadly speaking, they are expected to utilise human and nonhuman resources to achieve
their organisation‟s goals, such as making profits for owners, paying good wages to employees
and produce quality goods and services with a view to serve customers. In short, they must build
institutions. Now that we have gone through the major stages of an income generating project
namely, planning, implementation, monitoring and evaluation we need to get to the question of
how to build the "capacity" of individual PWDs and the organization (or the project) to
undertake all these activities. Capacity and capability is the main skill of the top level executive
Capacity and capability building is defined as the empowerment which encompasses the ability,
will and skills to initiate, plan, manage, undertake, organise, budget, monitor/supervise and
evaluate project activities. · Education, as the key to information and ability, should, as a matter
of policy, be made available to all PWDs within the mainstream services subject to the suitable
training of instructors or change agents to meet the specific needs of the various disabilities.
This was an immediate need in respect of children. · With regard to adults, it was recommended
that a sufficiently structured adult education system which imparts skills relevant and useful to
the various disabilities should be instituted. · For integrated training and education services to
take place, it was proposed that attention be paid to the need for technology inputs required by
the adaptation to accommodate the needs of the PWDs. · In addition to education and training,
capacity and capability building should be pursued through informal approaches like
networking, visits to similar projects within the country, neighbouring states and the continent
whenever possible. · Continuous learning can also be ensured through instruments like refresher
courses, correspondence, personal reading, club and group membership and participation in
special activities like seminars, feasibility studies, appraisals and evaluation projects. · Finally, it
 was resolved and recommended that the professionals who work with people with disabilities
should understand and have the experience and positive attitude to work with individuals,
groups and organizations in building of local knowledge and experience with a view to
strengthening their institutional capacity. Others are : Self-respect and self-confidence to be
selfreliant Conceptual, analytical and research skills Knowledge and information Productive
resources: natural and human Appropriate aids for PWDs 1. Identity creating role: Top level
executives must create an identity for their organisations in the market place. Such an impact
can be created by serving employees through excellent welfare measures, developing enviable
marketing skills or fostering technological innovations. In short, they must „carve out a niche‟
for themselves in the market place. 2. Enabling role: Top level executives must develop their
resources (men, materials, equipment and other facilities) in the service of an organisation. A
good work atmosphere must be created where employees would feel like contributing their
best to the organisation. 3. Synergizing role: Synergy means that the whole is greater than the
sum of the parts. In organisational terms, synergy means that as separate departments within
an organisation cooperate and interact, they become more productive than if each had acted in
isolation. For example, it is more efficient for each department in a small firm to deal with one
financing department than for each department to have a separate financing department of its
own. Top executives must try to combine their human as well as non-human resources in such a
way that the goals of the organisation are met in an effective and efficient manner. 4. Balancing
role: The top executive must be able to strike a harmonious balance between conformity and
creativity within the organisation. Conformity to rules and regulations is required to ensure
consistent and orderly execution of work. Conformity, when carried out in a rigid and scrupulous
manner, may affect employee behaviour in a negative way and destroy the creative potential of
employees. The chief executive, therefore, must encourage his employees to move in new
directions and respond to new challenges in a dynamic way instead of merely applying rules and
regulations in a mechanical manner. 5. Linkage Building role: The chief executive must be able to
develop appropriate linkages between the organisation and outside constituencies such as
government, financial institutions, community and society at large. Without enlisting support
from these outside constituencies, it might be difficult for the organisation to obtain licenses, to
expand business activity, to carry out research and to initiate rural development programmes. 6.
Futuristic role: The chief executive must prepare the organisation for future challenges. To this
end, the organisation must look into market opportunities and encash these in a prudent way.
The chief executive must be able to steer the ship to safety, facing the turbulent environments
in a bold manner. 7. Creating an impact: This means making an impact of one‟s organisation on
others, by way of superior technology, marketing skills, innovative abilities, etc. Provide super
ordination: The chief executive must be able to create a sense of pride and importance in the
subordinates – making them feel that they are working in a very important field of work which is
very useful for the society.

2) What are the common barriers to effective Decision making? How can they be overcome?
Quote and describe the instances from your own experiences or the experiences you are aware
of relating to and substantiating the answers to this question. Briefly describe the organisation
and the situation, you are referring to.
Solution : You as a manager make many decisions in your life. Some are very much easy and
some are very much complex. And some time we cant take any decision and our mind is frozen
that is the barrier of the problem solving. A number of barriers may exist that affect the actuality
of problem solving and decision making. Decision makers may not be aware that barriers are
detracting from the decisionmaking process. Some of the most common barriers to problem
solving and decision making are: 1). Resistance to change: People are often reluctant to change
from the time-honored way of doing things. Resistance to change can prevent people from
taking chances and from considering new possibilities. 2).Habits: Habits limit our vision of what
can be accomplished and many stand in the way of solving a problem. Habits may go
undetected by an individual and may be a tremendous deterrent to correcting a problem. For
example, receptionist who is having difficulty in completing his or her work may be unaware
that the habit of taking personal calls is taking the bulk of work time. 3).Individual insecurity:
Individual insecurity may deter individuals from taking risks or from pursuing behavior that may
require them to take a stand. Individual insecurity may come from past experiences or from an
overall lack of self-confidence. 4).Past history: Knowing what has happened before and what
worked and did not work can inhibit an individual's desire to try new methods of problem
solving or decision making. Past history is frequently an excuse for not making changes. The
individual, who may not wish to approach a situation in a new way, may remind others that a
similar idea failed in the past. 5).Fear of success or failure: At some time, everyone experiences
some type of fear. The fear of success or failure may be viewed as unreasonable, but it can
greatly deter the confrontation of problems. The unknown can be a frightening thing. When a
new way of doing something is attempted, the possibility exists that it may work well or not at
all. In either instance, changes may result. While some people thrive on recognition, others shy
away from it. These fears may cause people to avoid the possibility of success or failure
altogether. 6).Jumping to conclusions: When problems must be solved and decisions made, it is
easy to jump to conclusions. When someone jumps to conclusions, assumptions are made
about what might or might not work or the possible results; assumptions may frequently take
on negative perspectives. 7).Perceptions: As we have stated, perceptions are the ways that we
see things based on our experiences. We may be unable to see something from another
perspective because we are so blinded by our own perception. You as a manager make many
decisions in your life. Some are very much easy and some are very much complex. To take more
effective decisions you must follow have to take care of the following steps in order to
overcome the barriers in effective decision making. THINK AND CONSULT: Many people do not
think before taking decisions. So in order to have an effective decision you must think for a while
and analyze that what are causes of the problem, then make a list of the alternatives then
choose the best one from them. After brainstorming you must get help from your employees,
family and friends, and also from the one who has experience, in order to have the possible
means to understand the implantation of your decision. •TAKE AN EYE ON ORGANIZATIONAL
GOAL: The most important strategy while taking decision is to keep an eye on your goal. You as
a manager must have to take care of the organizational goals and interests while taking
decisions. You must know what are the needs of the problem that are required to be solved?
And why these should be solved? In this way you can be able make an effective decision because
when you know that why you are making a decision, it will make you to stick with it and defend
it. •CONSIDER THE CONSEQUENCES: This is the key step of effective decision making because in
this you will be asking yourself that what the results of your decision are. How it will affect your
organization. Whether the decision you are taking is in the favor of organization or not? It is
important step because it will make you able to understand the pros and cons of your decision
that you are going to take. •MAKE YOUR FINAL DECISION AND EVALUATE IT: Once you have
made the final decision and took an action towards it then you must have to evaluate your
decision in order check whether your actions are working in a right manner or not. And you
should give yourself permission to be okay with any failure that may arise because there is not
any magic formula for effective decision making. It is a type of a risk that you can control by
following such steps. You must take care of the “timing” because timing matters a lot in taking
actions towards decision making. You must avoid poor timing and take actions whenever these
are required and do not make higher expectations from any of your decisions and always be
optimistic. A well organized decision-making process usually leads to the effective decision-
making. Without a welldefined process, you take high risk in making decisions that are based on
inappropriate information and analysis. Many variables can affect the final impact of your
decision. However, if you establish strong base for decision making, make good alternatives,
evaluate these alternatives thoroughly, and then check your decision-making process, you will
improve the quality of your decisions. Problem solving series There are two wasys : 1).A d a p t i
v e D e c i s i o n M a k i n g 2 ) . Group Dynamics Adaptive Decision Making Adaptive techniques
for solving problems are a combination of logic and common sense, and while not precise, can
produce satisfactory solutions. If you cannot follow the complete problem solving process, use
these techniques when you have little time for research don't need exhaustive analysis can
accept the risks can make reversible decisions Group Dynamics Decisions made in groups differ
substantially from those made by individuals, and this is why organizations put groups to use.
What is less clear, and heavily debated amongst researchers, is how decision quality differs
between groups and individuals. The presence of a well developed group synergy, often
achieved through healthy levels of dissent, typically results in preferable outcomes, while
groupthink can lead to harmonizing and premature consensus. Harvard professor and
researcher Richard Hackman proposed five conditions that increase the probability of success
for groups involved in decision making. Hackman mentions effective leadership, amongst other
items, within the group context that contribute materially to successful group outcomes.
KNOW-HOW One of the most common barriers in decision making is not knowing how to make
a decision in the first place. It may seem strange, but many folks do not know how specifically
they actually make decisions, or they use different decision making strategies in different
circumstances without realizing it. EXPERT, OR NOT Other barriers to decision making concern
experts. Some will defer unquestioningly to authority and make no attempt to consider whether
the expert's choice actually applies to them or not. The converse of this is where someone is so
internally referenced that they ignore expert advice that would actually be useful for them. They
are determined to do it their own way, even with difficult decisions. THE BEST Major barriers in
decision making nowadays are fear and anxiety at getting it wrong. We have this idea that there
is one best solution and that anything else is second-rate. This notion sometimes leads to an
excessive gathering of information to the point where sometimes the decision never actually
gets made. One way around this is to make effective decisions as opposed to perfect ones. As
General George S. Patton said, 'A good plan, violently executed now, is better than a perfect
plan next week'. WHAT MIGHT HAPPEN... In a similar vein, further barriers in decision making
are the desires to avoid negative consequences and unpleasant aspects. This may lead to
indecision, or simply the choosing of a safe option to avoid controversy. This can be especially
tricky because often times there are unexpected consequences to any decision. The reason
things are unexpected is that they are unexpected! It's just not possible to predict these. Life
happens and the world is chaotic. A useful skill is to be able to use whatever occurs so that you
still get to achieve your outcome. That means you keep your goal in mind, but be flexible in how
you achieve it. WHAT'S INVOLVED? When you ask a question about how to make a decision,
there are two things you need to consider. You, and your decision making process. If you need
to do a particular job, it's best to use the right tool for the job. But if the tool is not in very good
shape, it may not work particularly well. A blunt scissors, for example, won't perform as well as a
sharp one. Similarly, it's important that YOU are in good form before you get to the actual
decision making part. HOW DOES THIS RELATE TO HOW TO MAKE A DECISION? If you're having a
bad time and things are not going well, it makes sense not to make important decisions during
this time. Chances are they may not work out so well either! So when people use phrases such
as weighed down feeling down the weight of the world on his shoulders cramped confined this
is their bodies way of telling them they are not working as well as they could... and it's probably
not a good idea to be making decisions at such moments. Of course, there will be times when
you absolutely have to make decisions when you are stressed or under pressure. A useful trick
here to minimize such occurrences is to make decisions ahead of time, that is, before you 'have
to'. For example, if you plan to buy an expensive item, you might decide, before you go to the
shop or store, what the maximum you're prepared to pay, rather than being pressured into
paying more at the last minute by a slick salesman. Or you decide before a negotiation what you
want and what you are prepared to concede, rather than going along and hoping for the best. In
this way you can make decisions when you are relaxed, calm and without pressure. THE 'YOU'
PART When someone is in a good mood they often describe themselves as feeling light walking
tall walking with their head held high they have a glide in their stride moving gracefully Have you
ever considered where these phrases come from? They are actually descriptions of the
awareness people have of their physical bodies at different times. Phrases such as Shake it off
Sleep on it Let's step away from it for a moment Have a breather are used when we want to
distance ourselves, or think differently about, some issue. We inherently know that moving our
body in different ways gives us different ways of thinking. This also explains why it's often when
someone leaves their desk to get a coffee that they are suddenly inspired in that they realize the
answer to a problem or understand which choice to make. There are also other more subtle
internal signals that let us know how to make good decisionsand you can learn about your own
personal signals here... On a similar note, knowing what your own personal values are also
allows you to be able to make faster decisions. Children and teens Special consideration has to
be given to children and teens in decision making because it takes time for the brain to develop
and there are many factors that influence adolescents in their decision making. A ROUGH
GUIDELINE... The general guideline then is: Good mood = good decisions, Bad mood = bad
decisions. I am taking 'bad mood' to include times of pressure, stress and time constraints, and I
am not saying that all decisions made in such circumstances are bad decisions. Instead, it's more
likely that we will make poorer decisions or decisions that are wrong when we are in a 'bad
mood'. And, of course, some people prefer to make decisions under pressure, they claim that
they are more effective this way!!
3) Conflict is an integral part of organisational functioning. Briefly describe and discuss the impact
of conflict on organisational functioning. Draw from your own experience or the situations and
effect you are aware of in organisational set up with reference to the various impacts listed in
the study material. Briefly describe the organisation, and the situation you are referring to.

Solution : Conflict can be a serious problem in any organization. It might not bring about the
demise of a firm, but it certainly can hurt an organization's performance as well as lead to the
loss of many good employees. However, as we show in this chapter, all conflicts aren't bad.
Conflict has a positive side as well as a negative side. We explain the differences in this chapter
and provide a guide to help you understand how conflicts develop. We also present other topics
–negotiation, and stress, which are closely related to conflict negotiation. But let's began by
clarifying what we mean by conflict. CAUSES OF ORGANIZATIONAL CONFLICT Group
Identification and Intergroup Bias Interdependence Differences in Power. Status, and Culture
Ambiguity Scarce Resources The Conflict Process CONDITIONS LEADING TO CONFLICT
SITUATIONS IN ORGANIZATIONS Ambiguous jurisdictions Conflict of interest Communication
barriers Dependence on one party Differentiation in organization Association of the parties
Behaviour regulation Performance expectations Competition for limited resources Lack of
cooperation Unresolved prior conflicts EFFECTS OF CONFLICTS There is always two side of coin
in this way there is also positive and negative effect of conflict on the organisation so lets as
discuss first negative effect of conflict : Negative Effects of Conflict Within an Organization An
organization is made up of groups of people, and within groups of people conflicts are
inevitable. Part of the measure of a good executive and management team is how they handle
conflict. When conflict management is successful, there are limited negative effects and the
company can move forward in a productive manner. When management does not offer conflict
resolution, there can be many negative effects on the company. Understanding the negative
effects of conflict on your organization can help emphasize the importance of conflict
management. Insubordination A company with weak management develops problems with
conflict that continue for the long term. Employees see that management is unable to resolve
conflicts within the company, and respect for the authority of management can be eroded.
Insubordination develops because employees do not think management can maintain control
over the company Drop in Productivity Allowing a conflict to continue means that employee
attention becomes more focused on the conflict and not on productivity. As a problem is
allowed to linger, employees will attach more importance to resolving the issue in their favor
rather than attending to worker productivity. Lack of Direction Conflict can sometimes arise
when management is unable to communicate the direction of the company to employees.
Conflict will erupt as employees are allowed to interpret change within the company in their
own way. Fragmentation Conflict creates rival factions. Sometimes those factions are
individuals, sometimes they are groups. Unresolved conflict can create tension between groups
that may normally need to work together. Such rivalries can make progress within the company
difficult. Lack of New Ideas Groups in conflict tend not to collaborate on new ideas. When
conflict goes unresolved it can be difficult to create new ideas the company needs to solve
problems it is facing. Quality of Work If a conflict is allowed to go on long enough, the parties
involved may begin to show more interest in the conflict than in doing their jobs properly.
Product quality can suffer, and in some cases the safety of the employees can be in jeopardy as
well. Deadlines In some companies, deadlines are very important. Groups in conflict may start to
push deadline limits as the conflict becomes more important than reaching their deadlines.
When both sides think they are right and the conflict is not brought in check by management,
the idea that each side must think they are right before they can move on will begin to affect
important deadlines The Positive & Negative Factors of a Conflict Many psychologists or
behavioral experts agree that conflicts are an inevitable and natural aspect of human interaction
that occur both internally and externally and as a result of change. In addition, conflict itself
cannot be thought of as good or bad, since clashing opinions, values and ideas themselves
cannot be called right or wrong. If conflicts are managed effectively, they can have a positive
effect. If they're not diffused properly, however, they can negatively impact people. Positive:
Identification of Problem When a conflict arises, it means that different ways of tackling an issue
have arisen and a solution cannot be achieved unless there is further discussion. Conflict can
highlight where a group needs to focus its attention to move forward. In many cases, if conflict is
avoided (for example, if one person gives in against her will or chooses to avoid antagonism
altogether by not speaking up), it could lead to larger problems down the road. Therefore,
engaging in conflict sooner can potentially prevent future conflicts, as well as point out where
organizational changes must be made. Positive: Encouragement of Cohesion Any time a group
engagement is encouraged, it has the potential to bond members more deeply. People will use
communication skills as they try to find a solution to the problem. This enables a group to
develop as a whole as members open up to see different viewpoints and perspectives, and
might aid them in working together effectively in future disputes. Problem- solving can also
attest to a group's unified strength and open-mindedness, since it shows commitment to their
relationship and stability. Inspire Creativity Fortunately, some organization members view
conflict as an opportunity for finding creative solutions to solve problems. Conflict can inspire
members to brainstorm ideas, while examining problems from various perspectives. Share And
Respect Opinions As organization members work together to solve conflict, they are more
willing to share their opinions with the group. Conflict can also cause members to actively listen
to each as they work to accomplish the organizations‟ goals. Improve Future Communication
Conflict can bring group members together and help them learn more about each other. From
learning each others‟ opinions on topics relevant to the organization‟s growth to understanding
each member‟s preferred communication style, conflict within an organization can give
members the tools necessary to easily solve conflicts in the future. Identify New Members
Within organizations members actively participate in each meeting, enjoy serving on multiple
committees and have an opinion on each topic the group discusses. There are also members
who seemingly contribute little to the group and observe more than talk. Conflict within an
organization can inspire typically silent members to step up and demonstrate their leadership
skills by offering meaningful solutions to the problem the group is facing. Dealing with conflict
Conflicts are inescapable in an organization. However, conflicts can be used as motivators for
healthy change. In today's environment, several factors create competition; they may be
differing departmental objectives, individual objectives, competition for use of resources or
differing viewpoints. These have to be integrated and exploited efficiently to achieve
organizational objectives. A manager should be able to see emerging conflicts and take
 appropriate pre-emptive action. The manager should understand the causes creating conflict,
the outcome of conflict, and various methods by which conflict can be managed in the
organization. With this understanding, the manager should evolve an approach for resolving
conflicts before their disruptive repercussions have an impact on productivity and creativity.
Therefore, a manager should possess special skills to react to conflict situations, and should
create an open climate for communication between conflicting parties. Ways to resolve conflict
When two groups or individuals face a conflict situation, they can react in four ways (De Bono,
1985). They can: · Fight, which is not a beneficial, sound or gratifying approach to dealing with a
conflict situation, as it involves 'tactics, strategies, offensive and defensive positions, losing and
winning grounds, and exposure of weak points.' Fighting as a way of resolving a conflict can only
be useful in courtroom situations, where winning and losing becomes a by-product of the
judicial process. · Negotiate, towards a settlement with the other party. Negotiations take place
within the prevailing situation and do not involve problem solving or designing. Third-party roles
are very important in bringing the conflicting parties together on some common ground for
negotiations. · Problem solve, which involves identifying and removing the cause of the conflict
so as to make the situation normal again. However, this may not be easy. It is also possible that
the situation may not become normal even after removing the identified cause, because of its
influence on the situation. · Design, which is an attempt towards creativity in making the conflict
situation normal. It considers conflicts as situations rather than problems. Designing is not
confined to what is already there, but attempts to reach what might be created given a proper
understanding of the views and situations of the conflicting parties. The proposed idea should
be appropriate and acceptable to the parties in conflict. A third party participates actively in the
design process rather than being just a an umpire.

4) How do you see the relationship between leadership styles and leadership Theories? Describe,
explain and relate your answer with the experience you have had in the organisational set up
yourself or you are aware of. Describe the situation and the organisation briefly, which you are
referring to.

Solution : Leadership Theory vs. Leadership Style Leadership theory is a discipline that focuses
on finding out what makes successful leaders excel in what they do. The primary distinction
between leadership theory and leadership style is that leadership style falls under the overall
umbrella of leadership theory. In other words, leadership style is one of many examples covered
with leadership theory. Leadership style focuses specifically on the traits and behaviors of
leaders. Leadership Theory Since businesses are always striving to find great leaders that can
lead them to success, much effort has been put forth into finding out how they operate. More
specifically, businesses are trying to identify the characteristics and behaviors associated with
the best leaders. As a result, many leadership theories have been developed over the years that
attempt to explain what makes a leader great. Businesses figure if they can identify the traits
that make a successful leader, they can not only identify potential leaders more readily, but also
can hone in on those specific skills for improvement. Examples of Leadership Theory In the
beginning, leadership theories focused primarily on specific characteristics and behaviors of
leaders. However, as time went on, theories began to focus more on a leader's followers and
the contextual nature of leadership. For example, the early theories, such as the great man
theory and the trait theory, focused specifically on innate qualities leaders are born with. Within
the next phase -- which includes behaviorist theory, situational leadership theory, and
contingency theory - - focus shifted more toward what leaders do versus what traits they have.
The final stage includes transactional theory and transformational theory, where the
relationship between the leader and his followers is explored. Leadership Style Leadership style
is modeled after a leader's behaviors, which is encompassed under behaviorist theory. Within
this category, different patterns of leadership behavior are observed and then categorized as
leadership styles. Practicing managers tend to be the most interested in researching this
particular theory because with it leaders have the ability to alter their style based on the beliefs,
values, preferences and culture of the organization they work for. Examples of Leadership Style
Leadership styles can be broken down in several different ways depending on what information
is being looked at. For example, an organization interested in how decisions are made may
define leaders as either being autocratic or democratic. Another organization may have more
interest in how leaders handle situations and choose to define them as being charismatic,
participative, situational, transactional, transformational, quiet or servant-like. One more way to
differentiate leadership styles is according to whether leaders are task-oriented or people-
oriented. Task-oriented leaders are said to have a considerate style and people-oriented leaders
an initiating-structure style. Leadership Styles and Theory · Leadership is the process of
motivating a group of people to act towards accomplishing a common task. There are number of
recognized versions, or styles, of leadership, some of which have been shown to be more
effective than others. In 1939, a group of researchers led by German-American psychologist Kurt
Lewin identified three major leadership styles: authoritarian or autocratic; participative or
democratic; and delegative. Good leaders may well adopt some element of all of the styles of
leadership. · Autocratic leaders seek to have the most authority in decision-making and provide
the rest of the group with clear expectations regarding what needs to be done and how it should
be done. They try to make as many decisions as possible and consultation is minimal. This
leadership style is effective on short-term projects or in environments where employees are
poorly motivated or need to perform low-skilled tasks. · This leadership style offers some
benefits to managers who use it. It reduces their stress levels as they know they have full control
and it also improves the working speed of poorly motivated employees, who know they are
being watched by a leader. One of the main disadvantages of this style is that by making all the
decisions, the leader doesn't give the other members of the group the opportunity to start their
leadership development. By taking all responsibility, the leader works at full capacity, which can
lead to health problems and poor working relationships with colleagues. · Participative or
democratic leadership style is generally seen to be the most effective. Democratic leaders offer
guidance to group members and participate in the group. Democratic leadership promotes
sharing of responsibility and continual consultation. The leader delegates tasks to each member
of the group and gives full control over them. Democratic leaders encourage others to get
involved in leadership development. · This leadership style has many benefits. Employees that
are given responsibility tend to become more enthusiastic about their work and are involved
more in the accomplishment of their task. Consulting the other members of the group and
giving and receiving feedback results in better decision making and creative thinking. But
consulting over every decision can be timeconsuming and can cause opportunities to be missed.
· Delegative leadership style gives little or no guidance to group members, but allows them to
make the decisions. This style can be effective in situations where group members are highly
qualified or when the leader trusts them. However, it can lead to poorly defined roles within the
group and a lack of motivation. · Over time, many other leadership theories have been
developed. Most can be classified as one of the eight major types. · "Great Man" theories
assume that great leaders are born, not made. Leaders have exceptional qualities and are
destined to lead. They are portrayed as heroes who will rise to leadership when needed. · Trait
theories are similar to "Great Man" theories. These theories assume that people inherit certain
qualities and traits that are suited to leadership. · Contingency theories state that no leadership
style is suited for all situations. Success depends on situational factors, including the leadership
style and the abilities and behavior of the followers. · Situational theories assume that the best
action of the leader depends on a range of situational variables including motivation and
capability of followers. · Behavioral theories are based on the assumption that great leaders are
made, not born. They don't focus on the leaders' inborn traits, but on what they can do.
According to these theories, leadership can be learned, rather than being inherent. ·
Participative theories assume that the members of the group make decisions together while
leaders help them feel more relevant within the group. · Management theories, also known as
transactional theories, are based on a system of rewards and punishments. The leader creates a
clear structure which states what is required from each member of the group. Transactional
leadership is mainly used in companies, when the employees' performance is good, they are
rewarded and when it is poor they are reprimanded. · Relationship theories, also known as
transformational theories, focus on the relationships between the leader and the members of
the group. Transformational leaders put passion and energy in everything and inspire and
motivate the members of the group. These leaders focus on the performance of each member
group and help them fulfill their potential. · Leadership Leadership is the process where a person
exerts influence over others and inspires, motivates and directs their activities to achieve
goals.Effective leadership increases the firm‟s ability to meet new challenges.Leader:The person
exerting the influence.Personal Leadership Style:the ways leaders choose to influence
others.Some leaders delegate and support subordinates, others are very
authoritarian.Managers at all levels have their own leadership style. · Leadership Across
CulturesLeadership styles may vary over different cultures.European managers tend to be more
people-oriented than American or Japanese managers.Japanese culture is very collective
oriented, while American focuses more on profitability.Time horizons also are affected by
cultures.U.S. firms often focus on short-run efforts.Japanese firms take a longerterm outlook. ·
Sources of PowerUsed to affect other‟s behavior and get them to act in given ways.Legitimate
Power:manager‟s authority resulting by their management position in the firm.Can be power to
hire/fire workers, assign work.Reward Power:based on the manager‟s ability to give or withhold
rewards.Pay raises, bonuses, verbal praise.Effective managers use reward power to signal
employees they are doing a good job. · Sources of PowerCoercive Power:based in ability to
punish others.Ranges from verbal reprimand to pay cuts to firing.Can have serious negative side
effects.Expert Power:based on special skills of leader.First & middle managers have most expert
power.Often found in technical ability.Referent Power:results from personal characteristics of
the leader which earn worker‟s respect, loyalty and admiration.Usually held by likable managers
who are concerned about their workers. · EmpowermentProcess of giving workers at all levels
authority to make decisions and the responsibility for their outcomes. Empowerment helps
managers:Get workers involved in the decisions.Increase worker commitment and
motivation.To focus on other issues.Effective managers usually empower substantial authority
to workers. · Leadership Models Trait Model:sought to identify personal characteristics
responsible for effective leadership.Research shows that traits do appear to be connected to
effective leadership.Many “traits” are the result of skills and knowledge.Not all effective leaders
possess all these traits. Behavioral Model:Identifies types of behavior.Consideration:leaders
show care toward workers. Employeecentered.Initiating Structure:managers take steps to make
sure work is done. Done by assigning work, setting goals, etc.Job-oriented. · Consideration &
Initiating StructureRate manager from 1 (never does) to 5 (always does)NOTE: for full survey,
see Figure 13.2 in textFigure 13.2ConsiderationInitiating StructureIs friendly, approachableDo
little things to make it funto be a member of groupGive advance notice of changesWilling to
make changesTreats group members as equalsTries out ideas in the groupLets group members
know what is expectedAssigns workers to tasksSchedules work to be doneMaintains
standardsof performance · Theories of LeadershipTrait theories:Is there a set of characteristics
that determine a good leader?Personality?Dominance and personal presence?Charisma?Self
confidence?Achievement?Ability to formulate a clear vision? · Theories of LeadershipTrait
theories:Are such characteristics inherently gender biased?Do such characteristics produce good
leaders?Is leadership more than just bringing about change?Does this imply that leaders are
born not bred? · Theories of LeadershipBehavioural:Imply that leaders can be trained – focus on
the way of doing thingsStructure based behavioural theories – focus on the leader instituting
structures – task orientatedRelationship based behavioural theories – focus on the development
and maintenance of relationships – process orientated · Contingency Models Fiedler‟s
Model:effective leadership is contingent on both the characteristics of the leader and the
situation. Leader style:the enduring, characteristic approach to leadership a manager
uses.Relationship-oriented:concerned with developing good relations with
workers.Taskoriented:concerned that workers perform so the job gets done. · Fiedler‟s Model
Situation characteristic:how favorable a given situation is for leading to occur.Leader-member
relations:determines how much workers like and trust their leader.Task structure:extent to
which workers tasks are clear-cut. Clear issues make a situation favorable for leadership.Position
Power:amount of legitimate, reward, & coercive power a leader has due to their position.When
positional power is strong, leadership opportunity becomes more favorable.