THEORY OF MANAGEMENT IN BUSINESS AND INDUSTRY

Sound Practices and Fundamental Principles

The Meaning of Management - The word management is derived from the Italian word, Maneggiare,
which means "to train horses" or literally "to handle", from the French words, Menager, meaning "to
direct a household", i.e. "to economize", and Mager, "an act of guiding or leading." Etymologically,
therefore, it means to handle, direct economically, guide, and lead.

Attributes of the Term Management - In the same way that the word organization may be defined to
mean either a group of individuals and factors or their relationships or to the process itself, the term
management can also assume varying shades of meaning.

Thus, it is common practice to refer to the executives or officials of a company as the management of
that company. When we read in the newspapers that the laborers of a firm declared a strike because of
the high-handed attitude of management, we think of management as the group which determines
policy and conducts executive action.

Again, management may denote a field of activity. In this sense, management is the activity or process
which coordinates, directs, and controls the activities of all other parts.

In a very real sense, management is a distinctive profession of organizing and directing men, although
this aspect is too often unappreciated and neglected. In its most comprehensive meaning, management
is the organization of materials, machines, equipment, and men with the view to effecting the greatest
possible measure of cooperation in the achievement of the desired result. In the light of the foregoing
considerations ascribed to the word management, the following definitions may be arrived at:

First - Management is the art and science of organizing, preparing, and directing human efforts applied
to control the forces and to utilize the materials of nature for the benefit of man.

Second - Management is the development of people and not the direction of things.

Third - Management is the scientific utilization of men, money, and materials to accomplish a desired
purpose.

Fourth - Management is simply stated and defined as "the getting of things done through the efforts of
other people.

Relationship between Management and Organization: In the previous chapter and in the preceding
discussion, we mentioned the different and varying definitions of Organization and Management.
However, in actual usage, say in the operation of business concerns, they are generally ‘interchanged or
jointly and inseparable applied.

Organization, for instance, is considered as the relationships of the structural elements in business,
including the individuals to carry on the work to accomplish the desired purpose; and Management as
the planning, directing, controlling, and coordinating of those elements.

Again, organization refers to the structure or form of an enterprise and the arrangement of all parts
thereof in a manner suitable for use in service, while management includes all those in charge of the
direction of the work of others, those who will see to it that the parts so arranged and structured are
used in service to best advantage.

The structural factors, better remembered as the Five M's, are men, materials, machines, methods, and
money. These are utilized by management or coordinated directed, and controlled in order to get work
performed or accomplished. Fig. 1 shows such relationship between organization and management.

Who is Management? Traditionally, management means one individual or a small group of key people
who make the significant decisions, and keep the policy making power and function as an absolute
power over the organization. In a sole proprietorship, it would be the owner. In a big company, it would
be the directors or key executives.

What is a Good Management? A management is considered good when competent men are placed as
heads of the departments, when these men are responsible for and are in control of all activities and
when they work 'as a team under the leadership of a strong executive.

A Management is also good when changes in business activities could be effected on short notice.

For example, there were many companies in the United States during the Second World War, which on
short notice, had to liquidate their normal businesses and convert to the production of new war
products and quite frequently on a scale many times greater than the former production.

The above mentioned effective changes were the result of intelligent planning, capable performance,
and fine teamwork - in other words, good management.

When is Management Considered Successful? Management is said to be successful when it makes

industry efficient, and this efficiency is measured concretely in terms of quality and quantity of products
produced with the minimum efforts at the least possible cost. Functions of Management: The functions
of management are said to be the weaving together of the various parts so that all factors will function
properly and all persons will cooperate for the common purpose. Specifically, management has the
following functions:

1) Planning
2) Coordinating
3) Directing
4) Controlling
1) Planning - is a methodic technique of looking ahead in order to meet work requirements and to
reduce the amount of mental efforts required while the work is being done.
It is a continuing process - i. e., a constant reviewing of future requirements in order to know
what to do today.
Planning emphasizes prevention rather than correction of delays -i.e., to anticipate to do
something about the delay rather than to wait for the delay to take place before applying
remedies.
The essence of planning is to remember the value 'of time, the virtue of patience, and the joy of
originating.
2) Coordinating - implies the smooth working together of the different composing elements. It
aims toward a perfect meshing of, or a harmonious adjustment among, the elements employed.
 Coordination means concurrence in purpose and performance to secure harmony in action
toward a common end. A good illustration of coordination is that of a symphony orchestra in
which various musical sounds of many instruments, consisting of different tones, qualities, and
pitches, are all coordinated or blended together resulting in smooth, melodious music. Lack of
coordination would result in a cacophony of noise and not music.
3) Directing means the pointing of all efforts toward the known objective - i.e., management
directs the basic elements so that they have a bearing straight upon the objective, and the lines
of action along which the enterprise is to move are set up. Direction gives guidance and points
out the course to be followed.
4) Control - includes the restraining, checking, and motivating influences exercised by the
management.
Control requires a knowledge of what is being done, what should be done, and what to do in
order to rectify unsatisfactory conditions. When necessary, it includes the power to compel
corrective action to be taken. Control keeps the activities of an enterprise within their proper
channels.
System, A Fundamental in Operating a Business: - In business, planned methods of procedure
are called system. When organizational procedures are standardized, we have a system. System
is one of the most valuable mechanisms or aids of management. Experience has proved that, in
any line of performance, if thing is to be done efficiently it must be done systematically.
System, if properly utilized, materially aids in securing the desired results in the best possible
way with the latest/ expenditure of time and effort.

Advantages of Proper Use of System: System when properly applied has the following
advantages:
1) System is the introduction of order and method wherever it is applied.
Such an advantage is apparent in any office considering the chaos that would reign if there
were no system of filing correspondence, records, and other data, and instead everything were
allowed to lie around in any place, or one is put over the other as it comes.
When, for instance, a certain correspondence has to be referred to, it would take a long time to
locate it, thus resulting in unnecessary loss of time and efforts.
2) Everyday work becomes routine through a system. Routine work flows along regular channels and
can be handled by less experienced workers, as the planning required for its performance has been
done for them. Of course, there is the danger of routine become institutionalized and for
constructive change to be effected only after extreme effort. Nevertheless, system, properly used,
has this advantage,
3) System permits those in authority to devote their time and effort to more important work, such as
planning, attending to major problems, searching for new markets and products, and the like.
Comparatively speaking, about 90 percent of the work in the average business concern may be
classed as routine and, once planned, can be safely done by subordinates through an effective
system.
4) System aids in the control and reduction of costs. A system based upon a certain purpose and
comprehensive plan of action removes doubt and promotes certainty, thus true costs can be known
and controlled. As system promotes smooth running, therefore, many unnecessary costs can be
eliminated.
Rules for Applying System: In considering the advantages gained by the use of system, one must be
careful not to consider system as a total cure for all industrial ills. Many managers in the past have
become so interested in system that they lost sight of the objective to be gained by the use of system.
The result was the development and use of a complicated system so full of red tape which more than
defeats the very objective of instituting it.

The following are a few simple rules that may be used for guidance, always having in mind that system is
a mechanism or an aid of management, a means toward an end, but not the end in itself.

1. System Used in a Particular Concern Should Reflect a Basic, General Plan.

If department heads are allowed to devise their own system, irrespective of the needs of other
departments and of the concern as a whole, such will inevitably result to duplication of effort, waste,
and internal friction.

In order, therefore, to secure fullest cooperation and to meet the needs of all, the basic general plan
should be devised through the joint efforts of the heads of all departments and under the guidance of
someone with sufficient authority to pass judgement over the system as a whole before putting it into
practice. The success of the application of any system, however perfect , in itself, cannot succeed
without the necessary cooperation.

2. A System Must Represent a Definite and Useful Purpose.

In other words, any system that has outgrown its usefulness should be discarded. There should be
conscious recognition that system can be changed if the need for improvement arises.

3. Maintaining a System Must Prove Worth Its Cost.

Frequently, a system may help materially in producing the desired results but at such a cost that it
becomes a cure worse than the disease. This is a case, where the company is "System perfect" but it
becomes bankrupt due to the cost of maintaining its system.

4. A System should be clear, simple, easily understood, and adequate to fit the need, but
involving the least expenditure of time and effort.

5. There Should be Frequent Periodic Checking.

These periodic examinations of a system will enable management to find out whether the system is still
accomplishing the desired usefulness and whether the rules have been carried out as expected.

Basic Principles of Management - There has been developed in the field of management a body of
principles to be applied in the conduct of business. These fundamental principles have been developed
through years of practical experience. They can be applied in the conduct of any business, large or small,
partnership or corporation, industrial or commercial, for they are based upon the understanding or
truth that in their fundamental objectives and operation all businesses are alike. It is the application of
the principles that is varied to suit the needs of the individual business.
Just as an automobile is not the invention of any one man but an aggregation of the inventions of many,
so this body of principles has been the contribution of a number of men in the management field.
Frederick W. Taylor was one of the pioneers; if not the first authority to formulate principles of
management. But others before and after him also had much to offer and say.

The following principles, formulated some years ago, are considered fundamental to the successful
conduct of any business enterprise:

1. The Principle of Policy Making - Definite, clear-cut policies are essential to effective management.

Company policies should be formulated at the inception of the business enterprise. Policies
designate the aims of the business. They are general plans of action for the conduct of operations. They
are the standards set for the guidance of management. Policies define the true interests of the
company, the ideals to be achieved, and outline broadly the methods to be used in their
accomplishment.

In formulating policies, care must be used that they are not so idealistic as to be impractical and to be
nothing more than pretty sentiments on paper. Policies must allow practical judgement, otherwise they
will be ineffective and valueless as a guide.

High sounding policies are fine, but are worse than useless if they are not possible of being carried out.
They must be workable.

Policies should be definite and comprehensive, yet elastic. They must give a basis for action, setting
forth the goal to be aimed at and the means and approximate methods to be used in arriving at that
end.

Policies might be broadly classified as general company policies, major policies, and departmental
policies, always bearing in mind, however, that they are not three distinct classes but rather stages and
developments of the same underlying idea. 'The development of a policy may be illustrated by an
example.

As a general company policy, a large tire manufacturing concern plans to produce the finest grade of tire
to sell at a given price. To implement this company policy, the best utilization of plant capacity and sales
effort is considered. Whatever .is decided as the best thing to do is submitted to the president or the
general manager for decision.

Once the company policy is formulated, major policies will follow, thus, a major policy may be
formulated to reduce costs by eliminating excess variety, by standardizing upon certain popular sizes
and types of tires and by selling these tires direct to automobile manufacturers, large retailers,
mailorder houses, and filling stations.

In turn, the managers of the manufacturing and sales departments formulate the necessary policies for
their respective department so as to carry out effectively the company's policy. A sales policy to be
following by all salesmen would be a departmental policy.

2. The Principle of Improvement and Adjustment. To be successful, a business must advance; it cannot
remain dormant.
The management of a company is responsible for the continual development of the business. In any
industrial concern, management must be always on the alert to improve the product or service and to
keep abreast with the progress of the industry as a whole, otherwise the business itself and its profits
sooner or later, will be in the hands of the more progressive competitors.

What would happen for instance, to a manufacturer of transistor radios if for several years he simply
marked time and made no improvements in his products? The principle of improvement requires him to
manufacture radios in various designs and sizes, to explore how transistor radios may be developed in
stereophonic designs, used with record players, carried about in the shirt pocket, and the like.

A company which brings out a new successful product has a distinct advantage over its competitors. The
company which continually improves its methods and systems and management labor relationship
progresses while the company which is contented with things as they are, slips backward.

3. The Principle of Balance. To secure proper development of business and efficiency in operation, a
company must be internally well-balanced.

If one function in a business is given attention more than the other functions, the business shall get out
of balance. It is the duty of the chief executive to keep the company as a whole in balance. On the other
hand, it is the duty of each department head to keep the various units in his department in balance.

An illustration of this principle may be had in the case of a successful manufacturing concern which
employs a new sales manager. The new sales manager, a man of prodigious creative ability and
imaginative talent, convinced his general manager of the need for tremendous expansion of the selling
effort. As a result, the company opened branch offices all over the islands, engaged in an extensive
advertising and promotional campaign, opened up new manufacturing plants in anticipation of
increased volume of sales, placed orders for mountains of raw materials to feed the production lines,
until the company found itself heavily indebted, unable to meet its obligations, and eventually going into
bankruptcy.

This example may be an extreme case but it illustrates the need for balance.

The resulting failure was attributed to the loss of sense of balance of those in charge, who had forgotten
the essential relationship between expenditures and income. The company was thrown out of balance
as sales were over-emphasized while the essential function of finance was not given the attention it
requires.

A sales manager may be so interested in making sales that he extends credit even to those who should
not get it. The credit manager may be so strict in requiring certain criteria before credit is given, that he -
places unnecessary restrictions on the selling effort. A production manager may insist on too much
inventories while the inventory control head may cut down too much on stocks of raw materials. In the
overall set-up, balance is essential.

4. The Principle of Relationship of Task and Accomplishment. A person works best and accomplishes
most when he is given a definite job to be completed in a given time, the work being of a nature for
which he is mentally and physically suited.
The broad application of this principle is demonstrated in selective employment, by means of which
management endeavors to find the person best fitted for the work, who can be chosen through the use
of job specification, taking into consideration the training and experience of each applicant.

If a man is assigned to a work in which he is not mentally or physically fitted, he will not prove equal to
the work. If his mental and physical capabilities are greater than the job demands of him he will quickly
exhaust the job possibilities and grow tired of the work. He will become restless and dissatisfied.

Management should see to it that the skills and abilities of the workers are fully utilized. If full
productivity from workers is not obtained the company loses. Management should examine critically its
methods and organization with the following questions to consider: Do they facilitate top production?
Are the placement and employee training methods effective? Is the supervision adequate?

5. The Principle of Individual Effectiveness. Individual effectiveness is increased through training and
improved working conditions.

Selection of employees is initially the important factor to consider. But no matter how well selected an
employee is, his performance is still capable of improvement.

No matter how small a part a worker plays in a business, it should be ascertained that he understands
how to do the job given to him. Business concerns have found that it pays to instruct the worker in the
particular work he is to do. The application of this principle has led to training programs, classes in
executive and supervisory development, and training on the job for workers.

Learning correct methods and sequences of work enables the worker to do the work accurately, quickly,
and economically, because incorrect and useless movements have been eliminated.

Careful instructions as to the details of operation lead to increased output and better grades of
workmanship.

6. The Principle of Simplicity. All elements which are not essential to successful operation should be
eliminated and all those retained should be applied in the simplest way.

This principle of effective organization is also a principle of sound management.

In a small business concern, there is quick action. In a larger business, however, action is slower,
because many persons are involved and the company to a large extent operates through written
instructions, reports and records. There is, therefore, delayed action, and thus expenses are increased.
Service to customers is also slower.

The application of this principle tends to eliminate red tape. System and methods are scrutinized to
determine their necessity. In the same way that no executive position is created unless it is necessary,
no operation or activity should be introduced unless its introduction will positively benefit the company.

The simplest system or the simplest method which will accomplish the desired result is the best way of
doing the work.

7. The Principle of Specialization. Scientific distribution of work results in specialization of effort and
task.

Specialization refers to the narrowing of the field of activity.

In medicine, a general practitioner would treat all diseases that may afflict a person. But physicians who
specialized, narrow their fields or activity, thus , one physician may specialized or limit himself to
diseases of the eyes, ears, nose, and throat. Another may specialize in children's diseases while another
may specialize in surgery.

In the same manner, specialization is applied in the field of management. The sales manager becomes
an expert in sales; the industrial relations manager specializes in labor-management relations; the
product engineer specializes in designing the products of his firm and sees to it that these products
meet the critical eyes of customers.

In specialization, work is divided according to skill and effort required. Certain operations, for instance,
requiring skill must be given to skilled men. Each man performs but one operation, and repeats the
operation over and over, thus becoming an expert in that particular job.

8. The Principle of Standardization. Whenever practicable, best practices should be determined,

expressed in terms of definite units of standards and adopted as a pattern for use in operation or
performance and in planning and control.

A standard is a norm, rule, model, size, type, quality, or measure which is set up or established such that
future things or activities will be expected to conform to it.

The setting up of standards is essential to sound management.

In business there can be developed an infinite variety of standards; such as, standards of methods,
process, task, operation, time, material, design, etc.

Standardization of Product - This has to do with the selection of items, types, and sizes of products in
greatest demand, and by concentrating the manufacturing, distribution, and other operations on those
which are so selected.

A company may originally manufacture five products. It decides however to concentrate on one or two
types of products. In such a case, production standardization could be carried along reducing necessary
supervision, reduction of clerical work, lessening of the variety of raw material carried in stock, and
reduction of heavy equipment. Work is simplified and costs are reduced. Standardization of product
enables interchange of parts and leads to mass production.

Administration Standard - This has to do with standards or performance which give management
definite measures by which to gauge efficiency, to evaluate and control current performance and to
estimate and plan for the future. With such a standard, management has a definite basis of comparison,
a way of knowing whether the organization is working at its full productive capacity or how far it falls
below the level it is capable of reaching.

9. The Principle of Financial Incentive. Remuneration should be in direct proportion to the value of
accomplishment.

A wage system to be effective should provide fair standards of accomplishment, such that the
individuals are remunerated on the basis of their accomplishment in relation to the standard set for the
task or class of work.
In certain classes or work, however, it is not possible to set a standard, as in the case of research work.
In cases where standards are really impracticable, those in charge could base their decision, as to the
incentive to be given, on their past experiences. They may employ their good judgment as to the value
of the work accomplished.

There are some non-financial incentives which are of material benefit to both the workers and the
company or employer. These incentives have been found by many companies to have strong influence
over the productive capacity of the workers, and have directly contributed to an increased output for
the company.

10. The Principle of Human Relations. Management succeeds or fails as human relations in business are
intelligently or otherwise handled.

Management and labor are after the same objectives. Both desire the business to prosper, for their
security depends upon that prosperity. Both want fair treatment-management in its dealings with labor,
labor in its dealings with management. Both desire the respect of their fellow men; both want to be
recognized for what they do and what they are.

For instance, if the worker is unusually skillfull and has a long record of service, he always appreciates
recognition and he should get it. If disciplinary actions is to be given, it should be fair. If criticism is
necessary it should be made privately.

Intelligent handling of human relationship requires the establishment of sound company-labor policies
and strict adherence to them on the part of the line executives and supervisors, "lip service" is not
sufficient. Another prerequisite is the payment of equitable wages and the maintenance of good
working conditions.

The handling of problems involving the human factor requires patience and understanding. Whatever
differences of opinion arise, as they do in all human relationships, they should be adjusted promptly in
accordance with sound social and business principles.

11. The Principle of Planning. In order to satisfactorily accomplish anything of importance, there must
be planning in advance of doing.

Planning substitutes knowledge for guesswork. It reduces the element of chance. It anticipates
difficulties and in many instances prevents their happening. Planning involves a decision as to what
should be done, how it should be done, where it should be done, and when it should be done.

By planning, the arrangement and sequence of work or tasks are accomplished in shorter time and with
less effort. The quantity of work is greater and the quality is better.

The degree of usefulness and applicability of planning depends upon the nature of the particular task,
and the number of times and task is to be performed.

For instance, in an office or factory where much of the work is of routine or recurrent nature, planning
can be carried to a greater refinement than in a shop where the work is continually changing because
the orders of customers an individually met and they differ from one another.

12. The Principle of Control. Planning is of little value unless there is subsequent control to make certain
that the plans are carried out.
After the plans have been made and instructions issued, those in-charge must have some means of
determining whether the plans are being carried out. In many instances, determining is done through
observations of the work in process or examination or the finished job.

In other cases, a definite system of control is instituted whereby, work is first issued and orders given
and then through observation, inspection, and the use of records, those in charge can more ascertain
that the plans are being carried out.

13. The Principle of Cooperation. The efforts of two or more individuals working as a unit toward a
common goal are greater than the sum of the efforts of the individuals working as individuals.

We may say that one plus one results in a total greater than two because of cooperation.

The principle of cooperation is self-explanatory. Cooperation is nothing more than team-work. The
effects of teamwork are evident to all.

In barrio house moving, the house to be carried may require fifty men working together. The same
house could not be moved by a hundred men, if these men heaved and pulled or shouldered their
burden individually and as they pleased.

Cooperation in business enterprise implies the full utilization or the experience and intelligence of all
concerned.

14. The Principle of Leadership. Wise leadership is the most important single factor in successful
operation. This principle holds equally true for a company as a whole, a department, or a gang of
workers. Good leadership implies:

-the ability to do what one sets out to do,

-the spirit to carry on until the task set is accomplished,

-the personality and ability to win cooperation and loyalty,

-the skill to direct and control the efforts of others.

15. The Principle of Delegation of Authority and Responsibility. Decisions should be made at the
lowest practicable organization level.

Delegation means giving power to do certain things to subordinates and pointing out how that power is
to be used. The proper appreciation of this principle is important because management is, involved with
superior - subordinate relationships and these relationships can become clear only when delegation of
authority is understood and well applied.

Except in unusual cases decisions should be made by the executive or supervisory directly in-charge of
the activity or individual concerned. He can go to his superior for advice and counsel, but he should
make his own decisions on problems within the field of his responsibility.

In the art of management, one of the fine points is the development of future executives. Give a man
authority, train him to make decisions within the scope of the authority and hold hig accountablefor
results. He will soon be able to assume greater responsibilities.
Decisions made at lower levels means prompt action as well as a saving of the time and effort of higher
executives to whom the matter would otherwise be referred.

When an executive allows decisions to be made at lower levels, he does not lose the responsibility for
their proper performance. Delegation of authority does not mean loss of responsibility. The executive
continues to be responsible for the acts of his subordinates whom he has invested with the power.

Delegation of authority gives rise to another principle that is equally important. This is the principle of
equality of authority and responsibility. It simply means that if a subordinate is given the responsibility
of making and implementing certain decisions, then he should be given an equal amount of authority to
push those decisions through. On the other hand, if a person is given a certain amount of authority, he
should have as great an amount of responsibility in accounting for the way he exercises that authority.

Authority should equal responsibility and vice-versa.

17. The Principle of Utilization of Executive Ability. Executive ability can be utilized fully by freeing it of
the need to attend to all routine matters. Executive talent is relieved when standards of performance
are set up and definite plans are made, and the executive directs his attention only to variations which
are materially good or bad, to further planning, to policy making, coordination, and other important
tasks.

Through the application of the above principle, executives are freed from the time-consuming details of
a business. However, through the aid of reports, and other devices of control they are kept in close
touch with all the activities of functions the proper performance for which they are responsible.

If any items, for instance, deviate from the standard or are not in accordance with the plans earlier
prepared, they receive the executive's immediate attention.

Overburdening executives with detail is not sound management practice. Executive ability, to be utilized
fully, must be concentrated on problems and projects that truly call for executive action. Lesser
problems and routine matter must be delegated to subordinate levels.

Conditions in business are dynamic and changes in conditions frequently call for modification of policies,
methods, and standards. Any such action may give notice to the management that either something
internally is wrong and should be corrected or due to changed conditions the present standards are no
longer useful or are out of line.

It is by concentrating on matters such as these that the executive's ability is fully utilized.

This principle has further application to executives of large concerns with complex .problems of
direction and coordination. The growth of big industrial and commercial complexes, mergers, holding
companies, and management companies has led to executive's called "super-managers" The overall
head of big firms or several sister corporations such as the General Motors Corporation in the United
States and the A. Soriano y Cia,- managed firms in the Philippines, would be examples of executives to
whom this principle clearly applies. Executives of lesser importance also need this principle according to
their duties.

Relieving certain top executive of divisional duties and responsibilities permits them to devote their full
time and energy to long-range planning and broad over-all direction, coordination and control.
The Role of Leadership the foregoing principles of organization and management depend on executive
leadership for their application. The organization may be perfect, the system and methods may be the
best possible of formulation, and business conditions ideal for success. Yet, success will not come
without leadership.

Executive leadership is the galvanizing factor, the dynamic element which integrates the various
interests in the organization into a harmonious, inspired, and smoothly functioning unity.

Organization principles and management techniques are of the mind - methods, system, time tables,
and standards. Leadership is of the spirit, a psychological process that provides guidance through
personality, character, intelligence, and other intangible characteristics.

The executive or manager, whether at the top or at slightly lower levels, should have certain attributes
of a leader - in addition to the technical competence required by the nature of his position. Thus the
executive should have:

1. Physical and mental health - Vitality, strength and endurance are required of executives.
2. Intellect - Clear thinking and intelligence is either creative or judicial. The leader has a creative
mind which can easily envision concepts or new plans. He has a judicial mind which can rapidly
evaluate several aspects of an issue and readily arrive at the right decision. He has good
judgment, receptiveness, sound perspective, and a high sense of values. His intellect allows him
to encompass a breadth of interests and aptitudes.
3. Personality - The executive should have maturity, social orientation, personal magnetism that
commands consent, cooperation, enthusiasm, the ability to inspire, persuasiveness, and tact.
4. Character - The good executive, as a leader, has integrity, and other excellent character traits.
5. Language facility - The leader should not only know but he should also have the ability to teach
and communicate what he knows.

These characteristics of leadership blend the principles of organization and management into a
functioning whole.