Character Formation 2 they have a good understanding of what is being expressed.

Good communicate with all

personnel with a sense of mutual understanding and mutual loyalty to generate enthusiasm
Leadership, Decision Making, Management and Administration for project and inspire working towards their completion.
MIDTERM 4. SITUATION
The leader must use his judgment to decide the best course of action and the leadership style
Chapter 3: ORGANIZATIONAL LEADERSHIP needed for each situation. A good leader is sensitive to the influences in various situations
and they are in a position to determine the right style of leadership to be followed in handling
ORGANIZATIONAL LEADERSHIP various situations. We all know that each situation elicits a different behavior in people, thus
for each opportunity that is presented the leader must use his/her judgement to decide the
Organizational leadership refer to the overarching field if a person (the leader) strategically guiding
best course of action and the leadership style needed for each situation.
and managing a group of people (the organization) to meet a common goal. It is a management
approach in which leaders help set strategic goals for the organization while motivating individuals
THE LEADER AND ITS ROLE
within the group to successfully carry out assignments in service to those goals. It emphasizes on
Leader is a person who leads or a person who has commanding authority or influence. A
developing leadership skills and abilities that are relevant across the organizations. It means the
leader is someone who does more than just lead people. They have to be driven by the right
potential of the individuals to face the hard times in the industry and still grow during those times.
motivation and make a positive impact on the people around them. A leader is someone who
FOUR FACTORS of LEADERSHIP can see how things can be improved and who rallies people to move toward that better
vision. Leader can work toward making their vision a reality while putting people first. Here
1. THE LEADER are some of the roles of a leader on an organization.
Process where an individual influences a group of individuals to achieve a common goal. It is 1. Leaders Provide Direction
a transactional event that takes place between leaders and subordinates. It affects both the Leaders need to make sure that all followers understand, embrace, and work toward
leader and the subordinates in the process. It affects both the leader and the subordinates in achieving those objectives. They also provide momentum, sharing and celebrating
the process of interaction. it is not a one-way event, but it is an interactive event. Leaders are progress toward achieving company goals, setting new targets, and providing needed
expected to influence people to form a group by bringing members together, induce a resources. Leaders need to provide followers a well-defined strategy for the company’s
purpose and inspire followers to aspire for it, put life in the purpose; make it operational by future growth, communicating that strategy to all team members, and helping everyone to
defining the steps on how to achieve the common goal, and provide direction during the fully understand their unique role in helping the company achieve its strategic objectives.
course of achievement. 2. Leaders Create Structure
2. FOLLOWERS Leaders need to create and maintain the organizational structure, job roles, decision-
A person who lacks motivation requires a different approach than one with a high degree of making authority, and processes that enable team members to do high-quality work.
motivation. It is the followers, who determine if the leader is successful by providing their Instead of creating a “command and control” environment, great leaders learn from
support and accomplishing the needed tasks. Leadership is not about doing things followers what’s needed to enable those followers to do superior work, and leaders then
themselves but motivating the followers to work towards business objectives. To be focus on supporting the teams that produce the company’s products and do the
successful leader must know his people, must convince his followers that he is worthy of company’s work.
being followed. The general working conditions which are conducive to effective leadership 3. Leaders Build Trust
from the angle of subordinate are grouped as leadership conditions that: Leaders have an obligation to ensure that everyone in the company has the skills
 Provide for the security of subordinates necessary to perform their work, understand how their work serves the company’s
 Provide independence for subordinates. objectives, and knows how the outcomes of their work are measured. Once those things
3. Communication are in place, leader trust team members to be accountable for their own performance.
The leader leads through two-way communication. He has to set an example and Because leaders can’t know or observe everything that everyone in the organization
communicate to them that he would not ask them to perform anything that he would not be does, trust is essential, and it is liberating for team members who are trusted to do great
willing to do. Leaders establish vision and mission and set the direction for the organization work. Building a culture of trust begins with creating a working environment where all
and synchronize them with the organizational vision and mission, thereby inspiring the people members of the organization treat one another with respect, dignity, and encouragement.
to translate the goals, vision and mission into reality. 4. Leaders Inspire Hope
Leaders demonstrating communication skills are both good speakers and listeners. The Leaders are optimistic and hopeful. They can visualize the company’s future and infuse
leader listens closely to people at work and organizes and clearly presents information both their followers with hope by providing encouragement, by sharing successes and
orally and in writing. Through their words, they can help keep the workforce motivated and progress toward achieving company goals, and by helping followers create their own
committed. They also listen to their followers and ask question when they want to make sure future with the company. They provide clear direction based on a set of values and
 principle, create and share a comprehensive strategy for the company’s future, and build this can lead to high employee attrition, and further problems and expense for the
the organization structure and processes to ensure successful execution. organization.
5. Creativity
IMPORTANCE OF ORGANIZATIONAL LEADERSHIP Unexpected events occur that require adjustment to be made to previous decision that were
 Motivates followers- followers tend to be motivated to mirror the growth made, or current plans of action. At these times, leaders must be able to set up to the plate
mindset for their teams and themselves, knowing that they can personally quickly, and think creatively to come up with stable solution as staff turn to them for support
contribute to the forward momentum of the organization as a whole. and guidance.
 Allows for a problem-solving and decision-making mindset-exponential 6. Innovation
growth is possible when a leader entrusts the individuals hired into their roles to Innovation typically means always seeking ways to improve the organization. An innovative
develops solutions and make decisions. Great ideas can emerge in an leader emphasizes quality over quantity in their own work and takes initiative in looking for
environment where people are not afraid to speak up. ways to improve in all areas of their organization, from human resource management to
 Promotes communication, ethics, inclusion, and respect- the leader shares supply chain efficiency to customer service. They proactive create a culture of innovation by
the organization’s values and models the communication, ethics, inclusion, and being open to others ideas. They recognize that an innovative idea can come from anyone
respect expected of each individual. Since every role is vital to the within the organization.
organization’s forward movement as a whole, therefore it is imperative for a 7. Vision
leader to communicate in all ways, that every employee’s contributions are One of the tasks of organization’s leaders is set and clearly communicate that vision and to
respected. invite others to share and implement it. Visionary leaders provide the spark that inspires
 Allows organizational leaders to remain goal-oriented- the leader may focus others to work toward the same goals. They also provide the tools to help them get there.
on the bigger picture since his followers were empowered to fulfill their roles and They paint a picture of how their vision will affect the organization as a whole, as well as each
develop innovative solutions. individual. It also imperative for effective leaders to trust their teams with the vision, as
trusting can be a sign of strength.
8. Inner Values
IMPORTANT KEYS TO EFFECT LEADERSHIP Top organizational leaders emphasize strong family values. They recognize the values they
were given by their families, and that work-life balance is essential to success. The ability to
1. Ability to delegate tasks focus on the organization when at work, and, in turn, spend quality time with family when at
The key to leadership success is to learn to effectively delegate both the responsibility for home, is essential to effective leadership. Knowing your strengths, as well as your
completing assignments and the authority required to get things done. By delegating tasks to weaknesses, is an essential aspect of honoring your inner values. Once you’ve identified your
others, the workload is shared and team spirit thrives. It is important to note that the right task strengths, it’s possible to nurture and use them to your fullest potential. This is essential to
must be assigned to the right person, so that it can be completed correctly, effectively, and in developing your leadership style and building a strong organization.
a timely manner. 9. Inspiration
2. Excellent communication Effective leadership inspires their followers in many ways. They make an effort to know them
An effective leadership is one who communicates well across a variety of different media and ask them for their input and ideas. Inspiring leaders expound the notion that there are no
such as email, telephone, and face-to-face. Staff need to be able to grasp the purpose, the failures, only opportunities for learning and growth. Hen followers are inspired by their
directions, and the end goal of any project in order for it to be completed successfully. leaders, they are more confident, they know what’s expected, and they feel empowered to
Without excellent communication skills, managers will have an extremely difficult time make decision.
establishing and maintaining a productive work environment. 10. Transparency
3. Confidence Effective leadership uses transparency to help those around them embrace change, which
Leaders are expected to be the company’s backbone by being strong and confident. can be accomplished with a combination of communication, informed debate, shared
Managers are expected to support and carry an organization through both the good times decision-making, reaching a consensus, and using social media. People should know why
and the bad, while still displaying an assertive and positive demeanor. No one will follow a and how a leader has come to a decision and in what ways it will affect them.
leader that isn’t self-assured, and people can see through a façade of confidence. Confident 11. Decisiveness
leaders are generally happier, create better relationship, remain open to risks, accept Effective leaders weighs a decision carefully, but once they make up their mind, they are not
feedback, think for themselves, recognize success, and are more motivated. easily put off course. This shows commitment, which breeds consistency, both of which are
4. Honesty traits that pay off well in leadership.
When a leader makes a statement or takes a particular decision, all team members must be
able to believe that the leader will follow through and keep his or her word. If the followers
feel that their leader dishonest without due explanation, an environment of distrust is fostered;
Leadership Principle are framework of actions you can take as a leader to inspire others to of a business, increase productivity, help movement into new markets and facilitate
work together toward a common goal; they are the foundation for success. These are set of in achieving the company vision. Communication across the world is easier using
action or guiding beliefs that leaders can implement to move them toward success. The new technologies, which helps with collaboration. Teams can now work together
following leadership principle are commonly seen as vital to success: even if they are based in different countries.
 Lead by Example- a good leader models excellent behavior and must be able to  Help to Develop Future Leaders- part of being a great leader is to make sure
motivate and encourage people. The most successful companies and there is someone else who can take over the leadership role among the followers
organizations have leaders who help their staff understand the value in their vision when necessary. Thinking about the future in this way is a strong leadership trait.
and show them how everyone can work together to achieve that goal in their role. The organization will benefit from having a plan in place that leaves no time gap
 Leadership is About People- interpersonal and communication skills are when people have no leader to look to. When employees are educated on how to
essential to any leader. Without being able to communicate one’s vision to others, become leaders, they are motivated to take ownership of their work.
leadership will be challenging. A leader should have the best possible relationship
with each member of the team. This means not only relating to those people in top- THE SIX TYPES OF POWER FOR LEADERS
level management but also the people who work in the lowest-level positions and According to JOHN FRENCH and BERTRAM RAVEN (1959) in their work entitled
everyone in between. THE BASES OF SOCIAL POWER, they introduced five distinct types of power.
 Focus on Change- the foundation of every leadership plan is transformation. They later added a sixth. All six of these types of power are part of the
Change for the better should be the focus, not just making changes for financial fundamental knowledge that all leaders must possess to be effective. These are:
gain. Focus on the overall vision and have the ambition to bring about change. 1. Coercive Power- is forcing someone to do something against their will or
 Be Human and Admit Mistakes- everyone makes mistakes, but it can be setting up “consequences” to employee actions. It relies on threats, bullying,
beneficial for other people to see a leader acknowledgement their mistakes as it and “or-else” language to “motivate” those that are beneath them. This type of
can help them be more relatable. A wise leader learns from each experience and behavior often leads to fear, dissatisfaction, and resentment. Coercive power
uses it to teach their employee and themselves what areas they need to focus on is often the least effective but most employed and abused type of power in the
to grow as an organization. corporate world.
 Understand the Value of Listening- there are two levels of human 2. Reward Power- is the concept of “do this and get that” or “if you do this, you
understanding: intellectual and emotional. When a person understands what will receive something in return”. Reward power is useful as long as the reward
someone is saying, this is the intellectual level. The emotional level of is perceived as having value. Giving away a gold-star or a gift card may be
understanding means that a person knows how they are feeling. A good leader nice if it is something that is rare, but if overused the effect may be weakened.
should understand both. People feel valued and respect when a leader takes the It is another widely used method in business today. Its result are mixed and it
time to listen and process what they are saying. is therefore the second weakest form of power.
 Develop Leadership Skills- a leader is defined by their behavior and actions, and 3. Legitimate Power- is the power of position or role. This is typical “command
a good leader has specific skills and characteristics that help them lead effectively. and control” structure that is employed by the military world. It acts as
It is important to constantly work on leadership skills and always strive to improve formalized way of ensuring that there is someone to make a decision (good or
them because they determine how successful one’s leadership style will be. bad) and that someone is responsible. People are influenced by legitimate
 Promote Diversity- a leader should embrace diversity and harness the strengths power and they will do what they are told due to the rules of society and
that it can confer on a company. A diverse workforce encourages innovation and workplace. Legitimate power is fickle though. If someone loses their position,
new ideas, which in turn increases the likelihood of success. they often quickly lose their power.
4. Referent Power- is the “cult of personality”. This is the power and ability for an
 Work Together to Achieve More- cooperation and collaboration can happen
individual to attract others and to build loyalty within them. It is also the power
between organizations without affecting healthy competition. A leader should
of respect. This can occur through time if a leader is successful and has a well-
embrace the benefits working collaboratively can bring. Collaboration is the act of
known track-record of success. It is based on being liked and respected as an
working with others to share information, strategies and successes, and every
individual. It’s derived from an individual’s perceived value, worth or
great leader understands its importance.
attractiveness.
 Have Solid Values- people typically want to work with a leader who understand
5. Informative Power- is the newest addition to the types of power by French
their values and needs and has authentic values they follow themselves. An
and raven. It is the power of having information that another does not have, or,
effective leader must have clear vision and solid values so they can inspire their
distribution of information as a means of effecting change. This could be
followers and motivate them.
positive or negative propaganda, knowledge of an opponent’s strategy, or
 Use Technology and Innovation- a leader should take advantage of the benefits
that technology can bring to the organization. Technology can help in the operation
 detailed information that is used in decision support. It can be used to measure 1. Moral Awareness- also known as moral sensitivity. It refers to the capacity of a leader or an
and improve tasks, processes, and strategies. individual to recognize that one has encountered a moral dilemma. It is possible that a person
6. Expert Power- derives from an individual’s expertise. Their level of skill, is already involved in a moral dilemma and is oblivious of that fact. Therefore, it is the first
competence and experience helps make them trustworthy and influential to task of a leader to increase his/her awareness of the ethical dilemmas in their midst.
others. It is derived from personal traits and is wholly independent of a position 2. Moral Judgment- also known as Moral Reasoning, it occurs after the leader/ individual
in an organization. Expert power only lasts as long as an expert keeps getting becomes aware of the moral dilemma happening in their group or organization. It is where the
good results and is not acting purely for personal gain. leader considers the choices available while in the midst of a moral dilemma.
3. Moral Intention- also known as Moral Choosing, it is where the leader or an individual made
a choice after considering the options available to him/her while in the midst of a moral
dilemma. It provides the leader a choice between satisfying one’s self, the social order or
one’s principles.
CHAPTER 4 4. Moral Action- it is the last step, and it is distinct from the first three. The first component are
entirely on a cognitive level of the leader, while Moral actions call for the leader to act or to do
TYPES OF ORGANIZATIONAL LEADERSHIP something in actuality.
THE 4-V MODEL OF ETHICAL LEADERSHIP
ETHICAL LEADERSHIP There is a gap between knowing the right thing and doing the right thing, in order to bridge the
gap a leader needs to have moral courage. Moral Courage involves willingness to speak out and
Is the demonstration if normative appropriate conduct through personal actions and interpersonal
do what is right in the face of forces that would lead a person to act in some other way. The 4-v
relationships, and the promotion of such conduct to followers through two-way communication,
model of ethical leadership helps leaders to cross the bridge of moral courage which leads to
reinforcement, and decision-making. It is a form of leadership in which individuals demonstrate
moral action.
conduct for the common good that is acceptable and appropriate in every area of their life. It means
that individuals behave according to a set of principles and values that are recognized by the majority  VALUES- in order to develop good ethical leadership, the leader needs to first go in
as a sound basis for the common good such as integrity, respect, trust, fairness, transparency, and search of his own core values and develop the discipline to integrate them into
honesty. his/her daily lives. Service pertains to activities that a person is doing in relation to
ELEMENTS OF ETHICAL LEADERSHIP other individuals around him/her; specifically those who are in need. It connects
values to vision, for it is only through the service of others a leader can yield the
1. Honesty- it involves committing to presenting facts as they are, playing fair with competitors, latent vision within his own values.
and communicating honestly with others.  Vision - it is about the leader’s ability to implement his action in such a way that
2. Justice- to be fair means treating everyone equally, offering opportunities with no favoritism, they lead to a certain goal (vision). Polis refers to politics. It indicates that an
and condemning improper behaviors and manipulations, as well as any other actions that organization deals with the art of politics when the vision has to be communicated to
could harm someone. public groups. Vision leads to voice as the leader seeks to take public action related
3. Respect- this includes listening to each stakeholder, fostering inclusion, and value diversity. to his/her vision.
It is respecting others around them, regardless of their position or identifying characteristics.  Voice- the ethical leader must have a voice, in order to formulate the vision for
4. Integrity- it entails aligning consistently the values, words, and actions of the organization. It others and to make it clear in a way that motivates them to act. Renewal stands for
is not enough to talk the talk, one has to walk the walk to demonstrate integrity. innovation. Although the voice can be expressed in different ways, the ethical leader
5. Responsibility- it means accepting the leadership role, embracing the power and duties that will have to regularly consider whether actions are in accordance with values and
come with it, and always responding and being present in challenging situations. vision.
6. Transparency- it involves keeping an open dialogue, accepting feedback, and disclosing the  Virtue- it is at the center of the model and it stands for the Common good. Ethical
information others need to deliver their work. leaders are role models because of their virtuous behavior and will strive to do the
right things and act appropriately. They need to reflect further on how his/her values,
MORAL COMPONENTS OF ETHICAL LEADERSHIP vision, and voice are in keeping with the common good.
As JAMES REST (1994) asserts that the process of understanding and resolving an ethical dilemma
involves four distinct psychological process, they are:
TRANSFORMATIONAL LEADERSHIP Transactional Leadership, also known as managerial leadership, focuses on the role of
supervision, organization, and group performance. Leaders who implement this style focus on
James MacGregor Burns (1978) conceptualized leadership as either transactional or specific tasks and use rewards and punishments to motivate followers. It follows a managerial
transformational. According to burns, transforming leadership is a process in which “leaders and philosophy of reinforcement and exchanges, managing employees by establishing specific goals and
followers help each other to advance to a higher level of morale and motivation” then offering a reward for achieving them.
Transformational leadership is defined as leadership approach that causes change in individuals Leaders are:
and social systems. Transformational leaders are those who stimulate and inspire followers to both
achieve extraordinary outcomes and in the process, develop their own leadership capacity.  People perform their best when the chain of command is definite and clear.
 Rewards and punishments motivate followers.
FOUR I’S OF TRANSFORMATIONAL LEADERSHIP
 Obeying the instructions and command of the leader is the primary goal of the followers.
Bernard M. Bass (1985) expand upon Burns original ideas to develop what is today referred to as  Subordinates need to be carefully monitored to ensure that expectations are met.
Bass’s Transformational Leadership Theory. According to Bass, transformational leadership can
Three Components of Transactional Leadership
be defined based on the impact that it has on followers. Transformational leaders, Bass suggested,
garner trust, respect, and admiration from their followers. According to Bass there were four different 1. Contingent Reward (CR)- it involves the leader assigning or obtaining follower’s agreement
components of transformational leadership. on what needs to be done with the promise or actual rewards offered in exchange for
satisfactorily carrying out the assignment.
1. Individualized Consideration- refer to the degree to which the leader attends to each
2. Management-by-Exception- Passive (MBE-P)- it implies waiting passively for deviance,
follower’s needs acts as a mentor or coach to the follower and listens to the follower’s
mistake, and error to occur and then taking a corrective action.
concerns and needs. The leader gives empathy and support, keeps communication open and
3. Management-by Exception- Active (MBE-A)- it is where the leader arranges to actively
places challenges before the followers. This also encompasses the need for respect and
monitor deviances from standards, mistakes, and errors of the follower’s assignments and to
celebrates the individual contribution that each follower can make to the team. The followers
take corrective actions as necessary.
have a will and aspirations for self-development and have intrinsic motivation for their tasks.
2. Intellectual Stimulation- refers to the degree to which the leader challenges assumptions, Authentic Leadership is a style of leadership that focuses on transparent and ethical leader
takes risks and solicits follower’s ideas. Leaders with this style stimulate and encourage behavior and encourages open sharing of information needed to make decision while accepting
creativity in their followers. They nurture and develop people who think independently. For follower’s inputs. It works on the principle that a leader can prove their legitimacy by nurturing sincere
such a leader, learning is a value and unexpected situations are seen as opportunities to relationship with their subordinates and giving importance to their input.
learn. The followers ask questions, think deeply about things and figure out better ways to
execute their tasks. Four Components of Authentic Leadership
3. Inspirational Motivation- refer to the degree to which the leader articulates a vision that is
appealing and inspiring to followers. Leaders with inspirational motivation challenge followers 1. Self-Awareness- authentic leaders assess their own weaknesses, strengths and values in
with high standards, communicate optimism about future goals, and provide meaning for the order to be more authentic with team members. Practicing self-awareness may also include
tasks at hand. Followers need to have a strong sense of purpose if they are to be motivated self-reflection, asking for feedback and an awareness of employee’s feelings.
to act. Purpose and meaning provide the energy that drives a group forward. The visionary 2. Unbiased Processing- authentic leaders must take into account both supporting and
aspects of leadership are supported by communication skills that make the vision opposing opinions when making decisions. This type of processing encourages employees to
understandable, precise, powerful and engaging. The followers are willing to invest more share their opinions and experiences and helps avoid potential conflicts.
effort in their tasks, they are encouraged and optimistic about the future and believe in their 3. Relational Transparency- authentic leaders must be willing to be transparent in their
abilities. workplace relationships as well as remain honest when sharing their own thoughts and
4. Idealized Influence- refers to the degree in which the leader provides a role model for high feelings. This may include offering constructive feedback to team members when necessary,
ethical behavior, instills pride, gains respect and trust. as well as admitting when they’re in the wrong. By doing so, an authentic leader leads by
example and fosters transparency among the team and organization.
TRANSACTIONAL LEADERSHIP 4. Internalized Moral Perspective- authentic leaders resolve moral issues and dilemmas by
referencing their own internal moral standards rather than being bound by external moral
James MacGregor Burns (1978) conceptualized leadership as transactional or transformational, standards, regulations and rules.
transactional leadership refers to bulk of leadership models, which focuses on the exchanges that
occur between the leaders and their followers. According to burns, transactional leaders are those Spiritual Leadership comprises the values, attitudes, and behaviors that are necessary to
who lead through social exchanges. intrinsically motivate one’s self and others so that they have a sense of spiritual survival through
calling and membership and is inclusive of the religious-and values-based approaches to leadership.
It involves the application of spiritual values and principles to the workplace. The spiritual leader 6. Mature- a charismatic leader can develop and drive a team toward the organizations goals
understands the importance of employees finding meaning in their work and demonstrates a genuine due to their expertise and experience. They can accomplish this with a wise mindset when
concern for the “whole” person, not just the employee. Spiritual leadership tries to assist others in approaching everything they do. They are leader who directs and commands.
finding meaning in their work. 7. Optimist- a charismatic leader can build a positive attitude for everyone around them by
always looking on the brighter side. They don’t give up easily. They’re committed to facing
Six Behavior of a Spiritual Leader and finding solutions in the most difficult of situations. They aren’t afraid to take risks even
1. Respect for other’s values when the stakes are high.
2. Fair treatment 8. Passionate- a charismatic leader always shows a great enthusiasm for their work, genuinely.
3. Expressing care and concern This passion should also bleed into other employees through clear communication and how
4. Listening actively and responsively they act.
5. Showing appreciation for other’s contributions Servant leadership is based on the idea that leaders prioritize serving the greater good. Leaders
6. Reflective practices, which include managing emotions with this style serve their team and organization first. They don’t prioritize their own objectives. It
Charismatic Leadership seeks to achieve a vision by providing strong support to employees. In turn, this allows employees to
learn and grow while bringing their own expertise and vision to the table. This hinges on building
Charismatic leadership theory was first mentioned in the book, The Three Types of Legitimate influence and authority rather than using control and toxic leadership tactics.
Rule, published by Max Weber in 1958. Leaders who follow the charismatic leadership theory can
inspire their followers and motivate them. In return, they win the devotion of their employees. The theory of servant leadership is thought to have been coined by Robert Greenleaf (1970), a
Charismatic leadership is a type of leadership that combines charm, interpersonal connection, and twentieth-century researcher. Greenleaf considered that the leader should put the emphasis on their
persuasiveness to motivate others. It is a form of professional guidance or management built on a team members so that they can become autonomous and free-thinking. Servant leadership is a
foundation of strong communication skills, persuasiveness, and maybe even a little bit of charm to mindset that reflects a servant-first mentality rather than a leader-first mentality.
help them get the most out of everyone that works for them. Characteristics of Servant Leadership
Charismatic leaders are seen to have inspiring visions, being able to enthuse their followers and get 1. Listening- servant leaders don’t just speak but listen to what their team has to say. They give
them to identify with the vision through their powers of persuasion and ability to influence the ample opportunity for all members to be heard, and then, listen carefully to what is being said
emotions of followers. and potentially what is not being said. They give others their fully attention, notice coworkers
Characteristic of Charismatic Leadership body language, avoid interrupting and give constructive feedback.
2. Empathy- servant leaders understand that when their team feels happy and fulfilled in their
1. Excellent Communication Skills- a charismatic leader can clearly communicate duties and team feels happy and fulfilled in their personal lives, it contributes to success in their
goals to their team. They can speak openly, in a professional way, and convey their exact professional lives. They value others perspectives and approach situations with an open
thoughts without speaking too little or too much. They also allow open communication mind.
between everyone. They encourage their employees to speak freely without fear of 3. Healing- effective servant leaders understand the importance of fixing problems before
repercussions. They also have good listening skills so that their employees feel heard. moving on to new goals and projects. They make sure their team has the knowledge, support
2. Emphatic and Compassionate- charismatic leaders are open to their follower’s concerns and resources to do their jobs effectively.
and passions, willing to understand their feelings. They have high emotional intelligence. 4. Awareness- effective servant leaders are aware of themselves and their teams. Through
Because of this skill, they become well-liked among their employees as great listeners and self-awareness, servant leaders accept and grow from their own weaknesses. While being
confidants. aware of their team’s individual strengths and weaknesses to help them grow and learn.
3. Confident- proper posture and the right body language, such as maintaining eye contact, 5. Persuasion- effective servant leaders guide and persuade team members. They seek to
create an image of confidence. The idea of charisma often brings along the idea of self- convince the team as a whole and build a consensus.
confidence. A charismatic leader can confidently take control when issues arise, or problems 6. Conceptualization- effective servant leaders can think beyond small tasks and communicate
are found. larger goals and why they are important to their teams. They help their team understands
4. Humble- charismatic leader understand that they aren’t perfect. They are willing to accept their roles and stay motivated while focusing on the company’s long term objectives and
their mistakes from their team as their own. They understand they can improve and strive to goals.
do so for the sake of their team. 7. Foresight- effective servant leaders understand the importance of learning from past
5. Self-Aware- a charismatic leader focuses on understanding themselves and their roles within mistakes and successes and using lessons learned to productively evaluate present
their team. decisions. They identify what’s happening now and understand the consequences of their
decisions and then help their team do the same.
8. Stewardships- effective servant leaders acknowledge and understand the importance of -Authority comes from -Authority stems from position in the
their responsibilities. They protect and uphold the trust and confidence given them in their
role and communicate this to their team. They lead by example, demonstrating the values personal relationship organization
and behaviors that they want to see in others. -Thinks strategically -Determines long-term objectives
9. Commitment- effective servant leaders motivate their teams to grow. They are committed to
helping their teams develop professionally. Servant leaders help their team members become and strategies
leaders themselves by leading by example and providing their team with opportunities to
grow and develop. -Delegates responsibility -Acts decisively
10. Building Community- effective servant leaders encourage collaboration and engagement
-Appropriate risk taking and -Decides how to use personnel and
within their organizations. They value the opinions of everyone on their team and encourage
them to share those opinions and to actively contribute to the team regularly. innovation other resources
Difference Between Leadership and Management
CHAPTER 5 Some leadership and management skills overlap, it’s important to know the distinction between
these two roles. Effective leaders are invested in motivating and inspiring their teams, often by setting
UNDERSTANDING MANAGEMENT
a good example for employees to follow and defining the expectations of the company for its
employees. Managers are more occupied with the daily tasks that meet leadership goals and are
responsible for effectively delegating work and ensuring their employees are meeting company
What is Management? deadlines and expectations.
Management is a set of principles relating to the functions of planning, organizing, directing and Here are some of the key differences between Leadership and Management;
controlling, and the applications of these principles in harnessing physical, financial, human and
informational resources efficiently and effectively to achieve organizational goals.  Differences in Vision
Managers set out to achieve organizational goals by implementing processes, such
It is an art of getting things done through and with the people in formally organized groups. It is an as budgeting, organizational structuring, and staffing. Manager’s vision is bound to
art of creating an environment in which people can perform and individuals and can cooperate the implementation strategies, planning, and organizing tasks to reach the objectives
towards attainment of group goals. set out by the leaders. Leaders on the other hand, are considered as visionaries.
They always examine where their organizational growth. They always examine where
Leadership and Management
their organization stands, where they want to go, and how they can reach there by
Leadership is the ability to influence or guide people within an organization or business, while involving the team. Both of these roles are equally important in the context of
management is the ability to control day-to-day process and keep employees on track to achieve business environments and necessitate associative efforts.
company goals.  Organizing vs Aligning
Leaders are more focused on how to align and influence people rather than how to
Leadership and management are terms that are often considered synonymous. It is important to assign work to them. They achieve this by assisting individuals in envisioning their
understand that leadership is an essential part of effective management. function in a wider context and the possibility for future growth that their efforts may
give. While, managers achieve their goals by using coordinated activities and tactical
Difference between Leadership and Management processes. They break down long-time goals into tiny segments and organize
Leadership Management available resources to reach the desired outcome.
 Differences in Queries
-Focuses on people -Focuses on things A leader asks what and why, whereas a manager focuses on the questions of how
and when. To do justice to their duties as a leader, one might question and challenge
-Articulates a vision -Executes plans the authority to reverse decision that may not be in the better interest of the team. If a
-Trust & develop -Directs & coordinates firm has a stumbling block, a leader will be the one to step up and ask, “What did we
learn from this?’ and ‘Why has this happened?’ while, managers are not required to
-Creates changes -Manages changes assess and analyze failures. Their job description emphasizes asking How and
-Uses influences -Uses authority
 When, which assists them in ensuring that plans are carried out correctly. They prefer In centralization, the authority is concentrated only in a few hands. While decentralization has
to accept the status quo and make no attempt to change it. the authority distributed to all the levels of management. There should be a balance between
 Position vs Quality centralization and decentralization. The degree to which centralization or decentralization
A manager is a role that frequently refers to a specific job within an organization’s should be adopted depends on the specific organization, but managers should retain final
structure, whereas the term leader has a more ambiguous definition. Leadership responsibility but should give subordinates enough authority to do the tasks successfully.
emerges as a result of your actions. An individual is a leader if he/she acts in a way 9. Scalar Chain
that inspires others to do their best. It makes no differences what his/her title or The chain of command, also known as the scalar chain, is the formal line of authority,
position is. On the other hand, a manager is a job title that comes with a fixed set of communication, and responsibility within an organization. The chain of commands is usually
responsibilities. depicted on an organizational chart, which identifies the superior and subordinate
relationships in the organizational structures.
10. Order
There must be an orderly placement of the resources such as Men and Women, Money,
Principles of Management
Materials, etc in the organization. Human and material resources must be in the right place at
Henry Fayol (1841-1925) was a French coal-mine engineer, also known as the father of modern the right time. Misplacement will lead to misuse and disorder. Order for things is called
management theory. His scientific management theory forms the base for business administration Material Order, it’s a place for everything and everything in its place. While order for people
and business management. He introduced a general theory that can be applied to all levels of is called Social Order, which refers to the selection of the “right man in the right place”.
management and every department. 11. Equity
Equity is a combination of kindness and justice. It creates loyalty and devotion in the
The fourteen principles of management created by Henry Fayol are: employees toward the organization. The equity principle suggest that the managers must be
kind as well as equally fair to the subordinates.
1. Division of Work
12. Stability of Tenure of Personnel
The objective of division of work is to produce more and better work for the same effort. It
The employees should have job security because instability leads to inefficiency. Successful
leads to specialization, and specialization helps to increase efficiency and efficiency which
firms usually had a stable group of employees. Employees need to be given sufficient time to
results in improvements in the productivity and profitability of the organization.
settle into their jobs. They need time to learn their job and to become efficient.
2. Balancing Authority and Responsibility
13. Initiative
Authority is the right to give orders and power to exact obedience. While responsibility is the
Initiative gives satisfaction to the employees and brings success to the organization.
corollary of authority, it is its natural consequence and essential counterpart, and wherever
Management should encourage initiative. They should encourage the employees to make
authority is exercised responsibility arises. There should be balance between Authority
their own plans and to execute these plans. It allows the subordinates to think out a plan and
(Power) and Responsibility (Duties).
do what it takes to make it happen.
3. Discipline
14. Esprit De Corps
It means respect for the rules and regulations of organization. It may be Self-discipline, or it
Esprit de corps means team spirit, the management should create unity, co-operation, and
may be Enforced discipline. It is an outward mark of respect in accordance with formal or
team-spirit among the employees. They should avoid dividing and rule policy. Harmony,
informal agreement between a firm and its employees.
cohesion among personnel. It’s a great sources of strength in the organization. It is a quality
4. Unity of Command
in every successful business.
A subordinate (employee) must have and receive orders from only one superior (boss or
manager). A subordinate must report to only one superior. It helps in preventing dual FUNCTIONS OF MANAGEMENT
subordination.
5. Unity of Direction 1. Planning- is the first task of a manager, and forms the basis of which all other tasks are
It is expressed as “one head and one plan for a group of activities having the same objective”. derived. Management decides the future of the organization, by planning, strategizing and
It is essential for unity of actions, coordination of strengths and focusing of effort. implementing plans. Planning is the continuous process of making present entrepreneurial
6. Subordination of Individual Interests to the General Interest decisions systematically the efforts needed to carry out these decisions and measuring the
The interest of one individual or one group should not prevail over the general good. The results of these decisions against the expectations through organized and systematic
general interest should be given the most importance. If not, the organization will collapse. feedback.
7. Remuneration of Personnel An effective planning program incorporates the effect of both:
it refers to the price of the services rendered. It should be fair and affords satisfaction to both A. External Factors
the personnel and the firm. This includes shortages of resources; both capital and material, general economic trend
8. Centralization as far as interest rates and inflation are concerned, dynamic technological
 advancements, increased governmental regulation regarding community interest, subdivisions are defined, arranged and coordinated so that each part relates to the other part
unstable international political environments, etc. in a united and coherent manner so as to attain the prescribed objectives.
B. Internal Factors Organizational Structure is the basis framework of formal relationship among
This includes limited growth opportunities due to saturation requiring diversification, responsibilities, tasks, and people in the organization. It can be seen as the division of
changing patterns of the workforce, more complex organizational structures, activities into manageable units where everyone knows their roles and parts, which in turn
decentralization, etc. removes confusion and conflict.
Characteristics of Planning Basic Principles of Organizing

 Planning is goal oriented- it is made to achieve the desired objectives of an  Division of work and specialization- it involves dividing the total workload into tasks that
organization. The goals established should be accepted by the majority otherwise can be logically and effectively performed by individuals with specialized knowledge.
individual efforts and energies will go misguided and misdirected. Planning identifies  Departmentation- it refers to the logical groupings into manageable sizes of organizational
the action that would lead to desired goals quickly and economically. activities that belong together. The departments created constitute the organization’s
 Planning is looking ahead- it is done for the future. It is based on forecasting. It is structure and appear on organizational charts.
mental predisposition for things to happen in the future.  Coordination- it refers to the process of integrating departments both horizontally and
 Planning is an intellectual process- it is a mental exercise which involves creative vertically. It is achieved through authority relationships, which involves allocation of
thinking, sound judgment, and imagination. It is always based on goals, facts, and responsibility and authority to each position in the organizational structure.
considered estimates.  Chain of Command- it defines the reporting lines of individuals and groups in the
 Planning involves choice and decision making- it essentially involves choice organizations.
among various alternatives. He/she has to pick the best depending upon the  Unity of Command- it implies that each subordinate must have only one manager to report
requirements and resources of the organization. to.
 Primacy of Planning- it lays a foundation for other functions of management. All  Span of Control- it refers to the number of subordinates working under one manager.
functions of management are performed within the framework of plans laid out.
 Planning is a continuous process- it is a never ending function due to dynamic
business environment. Plans are prepared for a specific time and at the end of that 3. Staffing also known as Human resource, is the function of hiring and retaining a suitable
period, plans are subjected to re-evaluation and review in the light of new work-force for the enterprise both at managerial as well as non-managerial levels. It involves
requirements and changing conditions. the process of recruiting, training, developing, compensating and evaluating employees and
 Planning is all pervasive- it is required at all levels of the organization and in all of maintaining this workforce with proper incentives and motivations. Since the human element
its departments. The scope of planning may differ from one level to another. Top is the most vital factor in the process of management, it is important to recruit the right
level may be concerned about planning the organization as a whole whereas the personnel.
middle level may be more specific in departmental plans, and the lower level plans Components of Staffing
implementation of the same.  Manpower Planning- it involves the estimation of manpower in terms of searching,
 Planning facilitates coordination- it revolves around the organizational goals, and choosing the person and giving the right place.
all activities are directed towards common goals. There is an integral effort  Recruitment, Selection & Placement
throughout the organization within its various departments and groups. It avoids -Recruitment is the process of identifying the sources for perspective candidates to
duplication of efforts. stimulate them to apply for jobs in the organization.
 Planning encourages innovation- in the process of planning, managers have the -Selection is the process of choosing from among the candidates the most suitable
opportunities of suggesting ways and means of improving performance. It is basically person for the current position or for the future position.
a decision making function which involves creative thinking and imagination that -Placement may be defined as the determination of the job to which a selected
ultimately leads to innovation of methods and operations for growth and prosperity of candidate is to be assigned, and his assignment to the job.
the enterprise.  Training & Development- these are educational activities within an organization
that are designed to improve the job performance of an individual or group. These
2. Organizing is the process of creating structure for the organization that will enable the programs are typically involve advancing a worker’s knowledge and skills sets and
various players to work together effectively towards its objectives. It requires a formal instilling greater motivation to enhance job performance.
structure of authority and the direction and flow of such authority through which work
 Remuneration- is any type of compensation or payment that an individual or
employee receives as payment for their services or the work that they do for an
 organization or company. It includes whatever base salary an employee receives,  It consists of a proper plan or pointers so that employees will have guidance
along with other forms of payment that accrue during the course of their work, which about the organization’s journey. The performance standards vary by rules of
includes expense account funds, bonuses, and stock options. the employee, organization, industry, etc. An essential element is established at
 Performance Appraisal- is a regular review of an employee’s job performance and the beginning of the year or quarter so that the employee can plan accordingly
contribution to a company. Organizations use performance appraisals to determine to achieve the goals.
which employees have contributed the most to the company’s growth, review  Performance standards are objective, realistic, measurable, and transparent.
progress, and reward high-achieving workers. Ambiguous performance standards are not at all good for the employee and the
 Promotion & Transfer organization.
-Promotion is defined as the movement of an employee from one position to 2. Measurement of Actual Performance
another position of a higher pay grade or salary.  Performance should be measured based on an employee’s overall impact, cost
-Transfer is defined as the movement of an employee from one position to another efficiency, effectiveness, and ability to implement best practices.
position at the same pay grade level or similar salary.  Once performance standards are set, the next step is the measurement of actual
performance. Performance should be measured in an objective are reliable manner.
There are several techniques for the measurement of performance. These are
4. Directing is a managerial function which actuates the organizational method to work several techniques for the measurement of performance. These include personal
efficiently to achieve organizational goals. It’s the life-spark of any enterprise which sets in observation, sample checking performance reports, etc.
motion the action of people because planning, organizing and human resources are the mere 3. Comparison of Action Performance with the Standards and Finding out Deviation
preparations for doing work. Direction is the inert-personnel aspect of management which  Comparison actual performance with standards or goals involves accepting or
deals directly with influencing, guiding, supervising, motivating to achieve the organization’s rejecting the product or outcome.
goals.  This comparison of the actual performances with the standards will make known
Elements of Directing the differences and deviations. This compares the degree of difference between
 Supervision- it implies overseeing the work of subordinates by their superiors. It is the actual performance and the standard. In real case scenarios, these numbers
the act of watching & directing work & workers. almost never match up completely. It is completely necessary to evaluate
 Motivation- it involves inspiring, stimulating or encouraging the subordinates with deviations to determine why the standard is not being met when performance falls
zeal to work. Positive, negative, monetary, non-monetary incentives may be used short of the standard.
for this purpose.  Analyzing deviations involves determining whether more control is necessary or if
 Leadership- it is a process by which a manager guides and influences the work of the standard should be changed.
subordinates in desired direction. 4. Taking Corrective Action
 Communication- it is the process of passing information, experience, opinion etc  The final step of the control process. If the deviations in the third step are in an
from one person to another. It is a bridge of understanding. unacceptable range, then the firm needs to improve their performances.
 The management must take action to get better the actual performance of the firm in
those problem areas. After the reasons for deviations have been indomitable,
managers can then build up solutions for issues with meeting the standards and
5. Controlling is the management & correction of performance activities of subordinates in make changes to processes or behavior.
order to make sure that the enterprise objectives and plans desired to obtain in them as being
accomplished. The task of control is to assure accomplishment of objectives by detecting Timing of Controls
potential or actual deviation from plans early enough to permit effective corrective action. The
more control approaches and technique detect and illuminate the causes of potential or 1. Feedback Controls
actual deviations from plans with the minimum of costs or other unsought consequences, the - It occurs after an activity or process is completed. It is reactive.
more efficient these controls will be. - For example, feedback control would involve evaluating a team’s progress by comparing
Components of Controlling the production standard to the actual production output.
1. Establishment of Standard Performance - If the standard or goal is met, production continues. If not, adjustments can be made to
 Performance Standard are the expression of management-approved the process or to the standard.
performance thresholds, expectations, and requirements that are to be met so - Feedback control is more suited for processes, behaviors, or events that are repeated
that the employees are eligible for appraisal. over time.
2. Proactive Controls
 - Also known as preliminary, preventive, or feed-forward control, involves anticipating
trouble, rather than waiting for a poor outcome and reacting afterward. It is about
prevention or intervention.
- An example of proactive control is when an engineer performs tests on the braking
system of a prototype vehicle before the vehicle design is moved on to be mass
produced.
- Proactive control looks forward to problems that could reasonably occur and devises
methods to prevent the problems.
3. Concurrent Controls
- Monitoring takes place during the process or activity. Concurrent control may be based
on standards, rules, codes, and policies.
- An example of concurrent control is fleet tracking. Fleet tracking by GPS allows
managers to monitor company vehicles. Managers can determine when vehicles reach
their destinations and the speed in which they move between destinations.