What is Ethics of Management? Mention the ethical activities of a manager.

‘Management Ethics’ is related to social responsiveness of a firm. It is “the discipline dealing with what is good and bad, or right and wrong, or with moral duty and obligation. It is a standard of behavior that guides individual managers in their works”.

Amongst a host of ethical activities that managers can perform, a study conducted by Barry Posner and Warren Schmidt highlights the following ethical activities observed by managers: 

1. The foremost goal of managers is to make their organizations effective.

2. Profit maximization and stakeholders’ interests were not the central goals of the managers studied.

3. Attending to customers was seen as important.

4. Integrity was the characteristic most highly rated by managers at all levels.

5. Pressure to conform to organizational standards was seen as high.

6. Spouses are important in helping their mates grapple with ethical dilemmas.

7. Most managers seek the advice of others in handling ethical dilemmas.

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Advantages of 360 Degree Feedback

• It is an effective medium for improving customer service and the inputs quality to the internal customers.
 

• It encourages participation of all and thus makes HR decisions more qualitative.
 

• It pinpoints the favoritism and biases of the supervisors present in conventional appraisal systems.
 

• The employees find 360-degree feedback more acceptable than the traditional feedback approaches.
 

• 360-degree feedback is more impartial and objective than a one-to-one assessment of employee traits.
 

• It concentrates and stresses upon internal customer satisfaction.
 

• It broadens the scope for employees to get various says for enhancing their job role, performance, and views.
 

• It can act as a supplement and not replacement to the conventional appraisal system.
• It can be motivating for the employees who undervalue themselves.
 

• It encourages teamwork.
 

• It is more credible as various people give almost same feedback from various sources.
 

• It brings into limelight the areas of employee development as it confirms the employee strengths and identifies his weaknesses on which he can work upon.
 

• It creates an environment of trust and loyalty in an organization.

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Discuss in brief the various techniques of Decision Making.

The important techniques of decision making are as follows :-

(1)    Experience or Judgment:
In this technique, a manager makes decision on the basis of his knowledge and experience gained through working in a particular position over the years

(2) Intution :
Intution or hunch is a knowledge based on instant inner feelings or spiritual perception rather than reasoning. It is based on faith.(3) Habbits :
Established habits can be used as a technique of decision making. Managers try to solve repetitive and routine problems through their established habits.

(4) Standing Plans and Procedures:
There are standing plans and procedures in every organization such as policies, rules, procedures, methods etc. They all serve as a technique for decision making.

(5) Organization Structure:
Organization structure make it clear who is responsible for what and to whom. Therefore it can be used as a decision making technique.

(6) Principles of Management:
The principle of management can serve as a useful guide in making decisions.

(7) Economic and Financial Techniques:
Marginal analysis, break even analysis, utility analysis etc are some of the most important economic techniques of decision making. Pay back analysis, inflow outflow analysis, ratio analysis are some of the financial techniques of decision making.

(8) Linear Programming:
It is a mathematical technique of limited resources. It helps in making decisions regarding allocation of limited resources among various competing demands in an optimum way.

(9) Game Theory:
In this technique, one member chooses one such course of action that frustrates and defeats the action of the competing member and help him in wining the game. This technique used under competitive and conflicting situations.

(10) Waiting Line or Queuing Theory:
This technique is used to decide problem of waiting line in an organization with the help of the technique, manager decides optimum rate of flow through service points by balancing the cost of making customers wait against the cost of servicing them more rapidly.

(11) Simulation:
Simulation is a technique for studying and analyzing behaviour of a system under several alternative conditions in an artificial setting.

(12) Network Techniques:
PERT and CPM are the techniques that helps managers in deciding a logical sequence of activities required for completing a complex project.

(13) Heuristic Technique:
It is an trial and error technique of finding solutions to a complex problem by breaking it into small components.

(14) Participative Techniques:
It is a technique of making decisions with the participation of the employees. This technique encourages industrial democracy.

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Mention the Disadvantages of Management by Exception

There are many Disadvantages of Management by Exception. The main Disadvantages of Management by Exception are mention below-

# This concept is based on the existence of a budget against which actual results are compared. If the budget was not well formulated, there may be a large number of variances, many of which are irrelevant, and which will waste the time of anyone investigating them.

# The concept requires the use of financial analysts who prepare variance summaries and present this information to management. Thus, an extra layer of corporate overhead is required to make the concept function properly.

# This concept is based on the command-and-control system, where conditions are monitored and decisions made by a central group of senior managers. You could instead have a decentralized organizational structure, where local managers could monitor conditions on a daily basis, and so would not need an exception reporting system.

# The concept assumes that only managers can correct variances. If a business were instead structured so that front line employees could deal with most variances as soon as they arise, there would be little need for management by exception.

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Mention the Advantages of Management by Exception

There are many Advantages of Management by Exception. The main Advantages of Management by Exception are mention below-

# It reduces the amount of financial and operational results that management must review, which is a more efficient use of their time.

# The report writer linked to the accounting system can be set to automatically print reports at stated intervals that contain the predetermined exception levels, which is a minimally-invasive reporting approach.

# This method allows employees to follow their own approaches to achieving the results mandated in the company's budget. Management will only step in if exception conditions exist.

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Define Management by exception

Management by exception is the practice of examining the financial and operational results of a business, and only bringing issues to the attention of management if results represent substantial differences from the budgeted or expected amount.

For example, a company controller may be required to notify management of those expenses that are the greater of TK. 10,000 or 20% higher than expected.

The purpose of the management by exception concept is to only bother management with the most important variances from the planned direction or results of the business. Managers will presumably spend more time attending to and correcting these larger variances.

The concept can be fine-tuned, so that smaller variances are brought to the attention of lower-level managers, while a massive variance is reported straight to senior management.

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Discuss the Importance of Management

1. Management helps in Achieving Group Goals:

It arranges the factors of production, assembles & organizes the resources, integrates the resources in effective manner to achieve goals. It directs group efforts towards achievement of pre-determined goals. By defining objective of Organization clearly there would be no wastage of time, money & effort. Mgt converts disorganized resources of men, machines, money etc. into useful enterprise. These resources are coordinated, directed & controlled in such a manner that enterprise work towards attainment of goals.

2. Management Ensure Optimum Utilization of Resources:

Management utilizes all the physical & human resources productively. This leads to efficacy in management. Management provides maximum utilization of scarce resources by selecting its best possible alternate use in industry from out of various uses. It makes use of experts, professional & these services leads to use of their skills, knowledge, & proper utilization & avoids wastage. If employees & machines are producing its maximum there is no under employment of any resources.

3. Management Reduces Costs:

It gets maximum results through minimum input by proper planning & by using minimum input & getting maximum output. Mgt uses physical, human & financial resources in such a manner which results in best combination. This helps in cost reduction.

4. Management Establishes Sound organization:

No overlapping of efforts (smooth & coordinated fns). To establish sound organization structure is one of the objective of mgt which is in tune with objective of organization & for fulfillment of this, it establishes effective authority & responsibility relationship i.e. who is accountable to whom, who can give instructions to whom, who are superiors & who are subordinates. Mgt fills up various positions with right persons, having right skills, training & qualification. All jobs should be cleared to everyone.

5. ManagementEstablishes Equilibrium:

It enables the Organization to survive in changing environment. It keeps in touch with the changing environment. With the change is external environment; the initial co-ordination of organization must be changed. So it adapts organization to changing demand of market / changing needs of societies. It is responsible for growth & survival of organization.

6. Management Essentials for Prosperity of Society:

Efficient mgt leads to better economical production, which helps in turn to increase the welfare of people. Good mgt makes a difficult task easier by avoiding wastage of scarce resource. It improves standard of living. It increases the profit, which is beneficial to business, & society will get maximum output at minimum cost by creating employment opportunities which generate income in hands. Organization comes with new products & researches beneficial for society.

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Explain the Objectives of Management

1. Getting Maximum Results with Minimum Efforts:

The main objective of management is to secure maximum outputs with minimum efforts & resources. management is basically concerned with thinking & utilizing human, material & financial resources in such a manner that would result in best combination. This combination results in reduction of various costs.

2. Increasing the Efficiency of factors of Production:
Through proper utilization of various factors of production, their efficiency can be increased to a great extent which can be obtained by reducing spoilage, wastage & breakage of all kinds, this in turn leads to saving of time, effort & money which is essential for the growth & prosperity of the enterprise.

3. Maximum Prosperity for Employer & Employees:
Management ensures smooth & coordinated functioning of the enterprise. This in turn helps in providing maximum benefits to the employee in the shape of good working condition, suitable wage system, incentive plans on the one h& & higher profits to the employer on the other h&.

4. Human betterment & Social Justice:
Management serves as a tool for the upper lift men as well as betterment of the society. Through increased productivity & employment, mgt ensures better standards of living for the society. It provides justice through its uniform policies.

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Discuss the steps involve in Training program

Training program involves the following steps:
 

1. Identifying the training needs- The training needs of each employee should be identified. Programs should be developed that are best suited to their needs.

2. Prepare the trainer- The trainer must do his home work well. He should know both what to teach & how to teach. Time mgt is required by the trainer. Training should be delivered in such a manner that the trainee should not lose the interest in the job.
3. Prepare the trainee- The trainee should remain active during training. He should know that why is he being trained. He should put across the trainer questions & doubts. The trainee should be put at ease during the training program.

4. Explain & demonstrate the operations- The trainer should explain the logical sequence of the job. The trainee should perform the job systematically & explain the complete job he is performing. His mistakes should be rectified & the complex step should be done for him once. When the trainee demonstrates that he can do the job in right manner, he is left to himself. Through repetitive practices, the trainee acquires more skill.

5. Follow up & feedback- The trainee should be given feedback on how well he performed the job. He should be asked to give a feedback on the effectiveness of training program. Read More

Authority and responsibility are one and the same thing. Discuss.

Authority and responsibility is not the same thing. The difference between these two is as follows:

RESPONSIBILITY:
Responsibility is the obligation to accomplish the goals related to the position and the organization. Managers, at no matter what level of the organization, typically have the same basic responsibilities when it comes to managing the work force: Direct employees toward objectives, oversee the work effort of employees, deal with immediate problems, and report on the progress of work to their superiors. Managers’ primary responsibilities are to examine tasks, problems, or opportunities in relationship to the company’s short-and long-range goals. They must be quick to identify areas of potential problems, continually search for solutions, and be alert to new opportunities and ways to take advantage of the best ones. How effectively goals and objectives are accomplished depends on how well the company goals are broken down into jobs and assignments and how well these are identified and communicated throughout the organization.

AUTHORITY:
Authority is seen as the legitimate right of a person to exercise influence or the legitimate right to make decisions, to carry out actions, and to direct others. For example, managers expect to have the authority to assign work, hire employees, or order merchandise and supplies. As part of their structure, organizations have a formal authority system that depicts the authority relationships between people and their work. Different types of authority are found in this structure: line, staff, and functional authority. Line authority is represented by the chain of command; an individual positioned above another in the hierarchy has the right to make decisions, issue directives, and expect compliance from lower-level employees. Staff authority is advisory authority; it takes the form of counsel, advice, and recommendation. People with staff authority derive their power from their expert knowledge and the legitimacy established in their relationships with line managers. Functional authority allows managers to direct specific processes, practices, or policies affecting people in other departments; functional authority cuts across the hierarchical structure. For example, the human resources department may create policies and procedures related to promoting and hiring employees throughout the entire organization. Authority can also be viewed as arising from interpersonal relationships rather than a formal hierarchy. Authority is sometimes equated with legitimate power. Authority and power and how these elements are interrelated can explain the elements of managing and their effectiveness.

What is critical is how subordinates perceive a manager’s legitimacy. Legitimate authority occurs when people use power for good and have acquired power by proper and honest means. When people perceive an attempt at influence as legitimate, they recognize it and willingly comply. Power acquired through improper means, such as lying, withholding information, gossip, or manipulation, is seen as illegitimate. When people perceive the authority of others as illegitimate, they are less likely to willingly comply.

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Ways/ Methods of Training

Training is generally imparted in two ways:

1. On the job training- On the job training methods are those which are given to the employees within the everyday working of a concern. It is a simple and cost-effective training method. The in proficient as well as semi- proficient employees can be well trained by using such training method.
The employees are trained in actual working scenario. The motto of such training is “learning by doing.” Instances of such on-job training methods are job-rotation, coaching, temporary promotions, etc.

2. Off the job training- Off the job training methods are those in which training is provided away from the actual working condition. It is generally used in case of new employees.

Instances of off the job training methods are workshops, seminars, conferences, etc. Such method is costly and is effective if and only if large number of employees have to be trained within a short time period. Off the job training is also called as vestibule training i.e., the employees are trained in a separate area( may be a hall, entrance, reception area etc. known as a vestibule) where the actual working conditions are duplicated.

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Advantages of Performance Appraisal

It is said that performance appraisal is an investment for the company which can be justified by following advantages:
 

1. Promotion:
Performance Appraisal helps the supervisors to chalk out the promotion programs for efficient employees. In this regards, inefficient workers can be dismissed or demoted in case.

2. Compensation:
Performance Appraisal helps in chalking out compensation packages for employees. Merit rating is possible through performance appraisal. Performance Appraisal tries to give worth to a performance. A compensation package which includes bonus, high salary rates, extra benefits, allowances and pre-requisites are dependent on performance appraisal. The criteria should be merit rather than seniority.

3. Employees Development:
The systematic procedure of performance appraisal helps the supervisors to frame training policies and programs. It helps to analyze strengths and weaknesses of employees so that new jobs can be designed for efficient employees. It also helps in framing future development programs.

4. Selection Validation:
Performance Appraisal helps the supervisors to understand the validity and importance of the selection procedure. The supervisors come to know the validity and thereby the strengths and weaknesses of selection procedure. Future changes in selection methods can be made in this regard.

5. Communication:
For an organization, effective communication between employees and employers is very important. Through performance appraisal, communication can be sought for in the following ways:

a. Through performance appraisal, the employers can understand and accept skills of subordinates.

b. The subordinates can also understand and create a trust and confidence in superiors.

c. It also helps in maintaining cordial and congenial labour management relationship.

d. It develops the spirit of work and boosts the morale of employees.

All the above factors ensure effective communication.

6. Motivation:
Performance appraisal serves as a motivation tool. Through evaluating performance of employees, a person’s efficiency can be determined if the targets are achieved. This very well motivates a person for better job and helps him to improve his performance in the future.

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Define Performance Appraisal with its objectives

Performance Appraisal is the systematic evaluation of the performance of employees and to understand the abilities of a person for further growth and development. Performance appraisal is generally done in systematic ways which are as follows:
 

1. The supervisors measure the pay of employees and compare it with targets and plans.
 

2. The supervisor analyses the factors behind work performances of employees.
 

The employers are in position to guide the employees for a better performance.

Objectives of Performance Appraisal
Performance Appraisal can be done with following objectives in mind:
1. To maintain records in order to determine compensation packages, wage structure, salaries raises, etc.

2. To identify the strengths and weaknesses of employees to place right men on right job.

3. To maintain and assess the potential present in a person for further growth and development.

4. To provide a feedback to employees regarding their performance and related status.

5. To provide a feedback to employees regarding their performance and related status.

6. It serves as a basis for influencing working habits of the employees.

7. To review and retain the promotional and other training programs.

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Discuss different Types of Organization Culture

The practices, principles, policies and values of an organization form its culture. The culture of an organization decides the way employees behave amongst themselves as well as the people outside the organization.

Let us understand the various types of organization culture:

Normative Culture:
In such a culture, the norms and procedures of the organization are predefined and the rules and regulations are set as per the existing guidelines. The employees behave in an ideal way and strictly adhere to the policies of the organization. No employee dares to break the rules and sticks to the already laid policies.

Pragmatic Culture:
In a pragmatic culture, more emphasis is placed on the clients and the external parties. Customer satisfaction is the main motive of the employees in a pragmatic culture. Such organizations treat their clients as Gods and do not follow any set rules. Every employee strives hard to satisfy his clients to expect maximum business from their side.

Academy Culture:
Organizations following academy culture hire skilled individuals. The roles and responsibilities are delegated according to the back ground, educational qualification and work experience of the employees. Organizations following academy culture are very particular about training the existing employees. They ensure that various training programmes are being conducted at the workplace to hone the skills of the employees. The management makes sincere efforts to upgrade the knowledge of the employees to improve their professional competence. The employees in an academy culture stick to the organization for a longer duration and also grow within it. Educational institutions, universities, hospitals practice such a culture.

Baseball team Culture:
A baseball team culture considers the employees as the most treasured possession of the organization. The employees are the true assets of the organization who have a major role in its successful functioning. In such a culture, the individuals always have an upper edge and they do not bother much about their organization. Advertising agencies, event management companies, financial institutions follow such a culture.

Club Culture:
Organizations following a club culture are very particular about the employees they recruit. The individuals are hired as per their specialization, educational qualification and interests. Each one does what he is best at. The high potential employees are promoted suitably and appraisals are a regular feature of such a culture.

Fortress Culture:
There are certain organizations where the employees are not very sure about their career and longevity. Such organizations follow fortress culture. The employees are terminated if the organization is not performing well. Individuals suffer the most when the organization is at a loss. Stock broking industries follow such a culture.

Tough Guy Culture:
In a tough guy culture, feedbacks are essential. The performance of the employees is reviewed from time to time and their work is thoroughly monitored. Team managers are appointed to discuss queries with the team members and guide them whenever required. The employees are under constant watch in such a culture.

Bet your company Culture:
Organizations, which follow, bet your company culture take decisions which involve a huge amount of risk and the consequences are also unforeseen. The principles and policies of such an organization are formulated to address sensitive issues and it takes time to get the results.

Process Culture:
As the name suggests the employees in such a culture adhere to the processes and procedures of the organization. Feedbacks and performance reviews do not matter much in such organizations. The employees abide by the rules and regulations and work according to the ideologies of the workplace. All government organizations follow such a culture.

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Differences between Leadership and Management

Leadership differs from management in a sense that:

1. While managers lay down the structure and delegates authority and responsibility, leaders provides direction by developing the organizational vision and communicating it to the employees and inspiring them to achieve it.

2. While management includes focus on planning, organizing, staffing, directing and controlling; leadership is mainly a part of directing function of management. Leaders focus on listening, building relationships, teamwork, inspiring, motivating and persuading the followers.
3. While a leader gets his authority from his followers, a manager gets his authority by virtue of his position in the organization.

4. While managers follow the organization’s policies and procedure, the leaders follow their own instinct.

5. Management is more of science as the managers are exact, planned, standard, logical and more of mind. Leadership, on the other hand, is an art. In an organization, if the managers are required, then leaders are a must/essential.

6. While management deals with the technical dimension in an organization or the job content; leadership deals with the people aspect in an organization.

7. While management measures/evaluates people by their name, past records, present performance; leadership sees and evaluates individuals as having potential for things that can’t be measured, i.e., it deals with future and the performance of people if their potential is fully extracted.

8. If management is reactive, leadership is proactive.

9. Management is based more on written communication, while leadership is based more on verbal communication.
The organizations which are over managed and under-led do not perform upto the benchmark.

Leadership accompanied by management sets a new direction and makes efficient use of resources to achieve it. Both leadership and management are essential for individual as well as organizationalsuccess.

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Maslow’s Hierarchy of Needs Theory

Abraham Maslow is well renowned for proposing the Hierarchy of Needs Theory in 1943. This theory is a classical depiction of human motivation. This theory is based on the assumption that there is a hierarchy of five needs within each individual. The urgency of these needs varies.

These five needs are as follows-
1. Physiological needs- These are the basic needs of air, water, food, clothing and shelter. In other words, physiological needs are the needs for basic amenities of life.

2. Safety needs- Safety needs include physical, environmental and emotional safety and protection. For instance- Job security, financial security, protection from animals, family security, health security, etc.

3. Social needs- Social needs include the need for love, affection, care, belongingness, and friendship.

4. Esteem needs- Esteem needs are of two types: internal esteem needs (self- respect, confidence, competence, achievement and freedom) and external esteem needs (recognition, power, status, attention and admiration).

5. Self-actualization need- This include the urge to become what you are capable of becoming / what you have the potential to become. It includes the need for growth and self contentment.

It also includes desire for gaining more knowledge, social- service, creativity and being aesthetic. The self- actualization needs are never fully satiable. As an individual grows psychologically, opportunities keep cropping up to continue growing.

According to Maslow, individuals are motivated by unsatisfied needs. As each of these needs is significantly satisfied, it drives and forces the next need to emerge. Maslow grouped the five needs into two categories - Higher-order needs and Lower-order needs. The physiological and the safety needs constituted the lower-order needs. These lower-order needs are mainly satisfied externally. The social, esteem, and self-actualization needs constituted the higher-order needs.

These higher-order needs are generally satisfied internally, i.e., within an individual. Thus, we can conclude that during boom period, the employees lower-order needs are significantly met.

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Features of Principles of Management

1. Principles of Management are Universal
a. Management principles are applicable to all kinds of organizations - business & non business.
b. They are applicable to all levels of management.
c. Every organization must make best possible use by the use of management principles.
d. Therefore, they are universal or all pervasive.

2. Principles of Management are Flexible
a. Management principles are dynamic guidelines and not static rules.
b. There is sufficient room for managerial discretion i.e. they can be modified as per the requirements of the situation.
c. Modification & improvement is a continuous phenomenon in case of principles of management.

3. Principles of Management have a Cause & Effect Relationship
a. Principles of management indicate cause and effect relationship between related variables.
b. They indicate what will be the consequence or result of certain actions. Therefore, if one is known, the other can be traced.

4. Principles of Management - Aims at Influencing Human Behavior
a. Human behavior is complex and unpredictable.
b. Management principles are directed towards regulating human behavior so that people can give their best to the organization.
c. Management is concerned with integrating efforts and harmonizing them towards a goal.
d. But in certain situations even these principles fail to understand human behavior.

5. Principles of Management are of Equal Importance
a. All management principles are equally important.
b. No particular principle has greater importance than the other.
c. They are all required together for the achievement of organizational goals.

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Define Decision Making and mention its characteristics

Decision making is the process of choosing or selecting any one option out of several options to achieve some objectives.

According to Glueck – “Decision making is the process of thought and deliberation that leads to a decision.”

According to Allen – “Decision making is the work a manager performs to arrive at a conclusion or judgment”.

Lastly, decision is a process of selecting a course of action from among the available alternatives in order to achieve a desired goal in a given situation.

Characteristics/Nature of Decision Making :
(i) Decision making is a sequential process involves the searching, evaluative and choosing a course of action.
(ii) It is an intellectual and logical process.
(iii) This process will take place in the human mind.
(iv) It is a human and social process.
(v) It is largely an intuitive process but can be formally structured.
(vi) There is an existence of alternatives.
(vii) Ascertainment of choice.
(viii) It aims at attaining some objectives.
(ix) Decision is directed to solve some problem.
(x) Decision making involves commitment.
(xi) It is influenced by environmental conditions.
(xii) Decision making is the essence of management.

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Discuss the different theories of Leadership

Several theories of leadership have been developed by management theoreticians. 

These theories may be classified into three categories.
(1) Personality Theories
(2) Behavioral Theories
(3) Situational or Contingency Theories

(1)  Personality Theories:
Personality theories are theories that focus on the personal qualities or traits of leader. Such theories include the following:-

(i) Great Man Theory (ii) Trait Theory

(i) Great Man theory of Leadership: Great man theory of leadership claims that “Leaders are born, not made”. Leadership qualities are inherited or carried in genes. Leadership qualities cannot be acquired or developed through education or training.

(ii) Trait Theory of Leadership: This theory states that there are certain unique traits or qualities essential for successful leader. Any person who wants to be a successful leader must possess those traits. This theory emphasizes that those traits need not necessarily be inborn but may be acquired through education, training and practice.

(2) Behavioral Theory of Leadership:
Behavioral theory focuses on what the leaders do i.e. on the actual behavior of the leader. Behavioral theory is based on the premise that effective leadership is the result of effective behavior of the leader. Success of leadership depends on the behavior of the leader and not on his traits.

A particular behavior pattern of a leader (functional behavior) makes him a successful leader and its opposite (dysfunctional) would reject him as a leader. The functional dimensions include setting goals, motivating employees towards achievement of goals, making effective communication and interaction, building team spirit etc. The dysfunctional dimensions of leader’s behavior include in ability to accept subordinates ideas, poor communication and ineffective interaction, poor, human relations etc.

(3) Situational / Contingency Approach:
The situational approach of a leadership emphasis that emergence and success of a leader is largely determined by supranational factors This theory stresses that a leadership behavior which is effective under the particular situation may be ineffective under the other. These are several different situational models of leadership have been developed. Fiedler’s contingency model, path goal model, Blanchard’s model are example of this approach.

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Explain the various styles of Leadership

Leadership style is the general way or pattern of behavior of a leader towards his followers in order to influence their behavior to attain a goal.

The main styles of leadership are as follows:-

(1)Autocratic and Authoritarian Leadership:
An autocratic leader is one who centralizes power and make all the decisions himself. He tells his followers what to do and expects to be obeyed without questions. Thus, such a leader imposes his will on his followers.

Autocratic leaders may be of two types :-
(i) Pure Autocratic or Negative Leader : He is a director and makes all decisions himself. He superimposes his decisions on his subordinates. He uses fear of punishment or penalty to carry out his decisions. Thus, it is a negative leadership.

(ii) Benevolent Autocrat or Positive Leader : When an autocrat leader avoids negative coercive power and uses reward power to influence his subordinates, he is called a benevolent autocrat leader. Such a leader shows active concern for the feelings and welfare of his subordinates.
(2) Participative/ Democratic Leadership:
Participative leaders decentralize authority. Such leaders involve subordinates in decision making process. The leaders and their group members work as a social unit. They freely exchange their views and express opinions and suggestions.

(3) Free Rein or Laissez Faire Leadership Style :
Free Rein or Laissez Faire Leadership Style Such a leader completely delegates his authority to his subordinates and allow them to make their own plans, procedures and decisions. He simply aids his subordinates in performing their job. He exist as a contact person with the subordinates external environment. Free rein leadership style is permissive and leader least intervenes his subordinates.
The leader remains passive observer but intervenes only during the crisis. Free rein leadership is suitable where subordinates are highly competent and duty conscious.

(4) Paternalistic Leadership:
A paternalistic leadership is authoritarian by nature. It is heavily work centered but has consideration after his subordinates the way father looks after his children. Such a leader helps, guide and encourages his subordinates to work together as member of a family. The subordinate in turn tend to remain submissive and faithful.

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