PMC Unit 3 Exercise

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Principles of Management & Communication – KCA 103

Unit 3 – Directing & Controlling

Exercise

1. What do you understand by motivation? Enlighten need and importance of


motivation.
2. Explain the classical theories of motivation.
3. Explain the modern theories of motivation.
4. Define Leadership. Elaborate need and importance of leadership.
5. Expound various types of leadership styles.
6. Explicate the qualities of an effective leader.
7. Define Directing function. Explain various principles of directing.
8. Define Controlling function. Explain various principles / Features of Controlling
Function.
9. Explain various elements of control process.
10.Explain various types of control techniques.

Q.1. What do you understand by motivation? Enlighten need and importance of


motivation.

Motivation

Motivation is derived from the word ’motive’ which means needs, desires, wants or
drives within the individuals.

It is the process of stimulating people to actions to accomplish the goals.

In the work goal context the psychological factors stimulating the people’s behaviour
can be:

• Desire for Money


• Success
• Recognition
• Job-satisfaction
• Team work, etc.

One of the most important functions of management is to create willingness amongst


the employees to perform with the best of their abilities. Therefore the role of a
leader is to arouse interest in the performance of the employees in their jobs.
The process of motivation consists of three stages:

1. A felt need or drive.


2. A stimulus in which needs have to be aroused.
3. When needs are satisfied, the satisfaction of accomplishment of goals.

Therefore, we can say that motivation is a psychological phenomenon which means


needs and wants of the individuals have to be tackled by framing an incentive plan.

Importance of Motivation

Motivation is very important for an organization because of the following benefits it


provides:

1. Puts human resources into action


2. Improves level of efficiency of employees
3. Leads to achievement of organizational goals
4. Builds friendly relationship
5. Leads to stability of work force

1. Puts human resources into action


Every concern requires physical, financial and human resources to accomplish
the goals. It is through motivation that the human resources can be utilized by
making full use of it. This can be done by building willingness in employees to
work. This will help the enterprise in securing best possible utilization of
resources.
2. Improves level of efficiency of employees
The level of a subordinate or a employee does not only depend upon his
qualifications and abilities. For getting best of his work performance, the gap
between ability and willingness has to be filled which helps in improving the
level of performance of subordinates. This will result into-
a. Increase in productivity,
b. Reducing cost of operations, and
c. Improving overall efficiency.

3. Leads to achievement of organizational goals


The goals of an enterprise can be achieved only when the following factors take
place:-
a. There is best possible utilization of resources,
b. There is a co-operative work environment,
c. The employees are goal-directed and they act in a purposive manner,
d. Goals can be achieved if co-ordination and co-operation takes place
simultaneously which can be effectively done through motivation.

4. Builds friendly relationship


Motivation is an important factor which brings employees satisfaction. This can
be done by keeping into mind and framing an incentive plan for the benefit of
the employees. This could initiate the following things:
a. Monetary and non-monetary incentives,
b. Promotion opportunities for employees,
c. Disincentives for inefficient employees.

In order to build a cordial, friendly atmosphere in a concern, the above steps


should be taken by a manager. This would help in:

iv. Effective co-operation which brings stability,


v. Industrial dispute and unrest in employees will reduce,
vi. The employees will be adaptable to the changes and there will be no
resistance to the change,
vii. This will help in providing a smooth and sound concern in which individual
interests will coincide with the organizational interests,
viii. This will result in profit maximization through increased productivity.

5. Leads to stability of work force


Stability of workforce is very important from the point of view of reputation and
goodwill of a concern. The employees can remain loyal to the enterprise only
when they have a feeling of participation in the management. The skills and
efficiency of employees will always be of advantage to employees as well as
employees. This will lead to a good public image in the market which will attract
competent and qualified people into a concern. As it is said, “Old is gold” which
suffices with the role of motivation here, the older the people, more the
experience and their adjustment into a concern which can be of benefit to the
enterprise.
From the above discussion, we can say that motivation is an internal feeling which can
be understood only by manager since he is in close contact with the employees.
Needs, wants and desires are inter-related and they are the driving force to act. These
needs can be understood by the manager and he can frame motivation plans
accordingly. We can say that motivation therefore is a continuous process since
motivation process is based on needs which are unlimited. The process has to be
continued throughout.
We can summarize by saying that motivation is important both to an individual and a
business.

Motivation is important to an individual as:


1. Motivation will help him achieve his personal goals.
2. If an individual is motivated, he will have job satisfaction.
3. Motivation will help in self-development of individual.
4. An individual would always gain by working with a dynamic team.

Similarly, motivation is important to a business as:


1. The more motivated the employees are, the more empowered the team is.
2. The more is the team work and individual employee contribution, more
profitable and successful is the business.
3. During period of amendments, there will be more adaptability and creativity.
4. Motivation will lead to an optimistic and challenging attitude at work place.

Q.2. Explain the classical theories of motivation.

Classical Theories of Motivation

The motivation concepts were mainly developed around 1950’s. Three main theories
were made during this period. These three classical theories are-

 Maslow’s hierarchy of needs theory


 Herzberg’s Two factor theory
 Theory X and Theory Y by McGregor

These theories are building blocks of the modern theories developed later. The
working mangers and learned professionals till date use these classical theories to
explain the concept of employee motivation.
Maslow’s Hierarchy of Needs Theory

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

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

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

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

4. Esteem needs-
Esteem needs are of two types:

(i) Internal Esteem Needs


• Self- Respect
• Confidence
• Competence
• Achievement and
• Freedom

(ii) External Esteem Needs:


• Recognition
• Power
• Status
• Attention and
• Admiration

5. Self-actualization need-
This include the urge to become what you are capable of becoming/what you
have the potential to become.
It includes the need for growth and self-contentment. It also includes desire for
gaining more knowledge, social- service, creativity and being appealing. The
self- actualization needs are never fully satiable. As an individual grows
psychologically, opportunities keep cropping up to continue growing.

According to Maslow, individuals are motivated by unsatisfied needs. As each of these


needs is significantly satisfied, it drives and forces the next need to emerge.

Maslow grouped the five needs into two categories - Lower-order needs and Higher-
order needs.

Lower Order Needs:

The physiological and the safety needs constituted the lower-order needs. These
lower-order needs are mainly satisfied externally.

Higher Order Needs:

The social, esteem, and self-actualization needs constituted the higher-order needs.
These higher-order needs are generally satisfied internally, i.e., within an individual.

Thus, we can conclude that during growing period, the employees lower-order needs
are significantly met and higher order needs are met during the accomplishment
period.

It infers that higher level needs cannot evolve until the lower level needs are satisfied.
As the needs of human beings are unlimited, whenever one need is satisfied, another
need take its place. Moreover, an unsatisfied need is the motivator which governs the
behaviour of the individual.
Inferences of Maslow’s Hierarchy of Needs Theory for Managers
As far as the physiological needs are concerned, the managers should give
employees appropriate salaries to purchase the basic necessities of life. Breaks and
eating opportunities should be given to employees.
As far as the safety needs are concerned, the managers should provide the
employees job security, safe and hygienic work environment, and retirement
benefits so as to retain them.
As far as social needs are concerned, the management should encourage teamwork
and organize social events.
As far as esteem needs are concerned, the managers can appreciate and reward
employees on accomplishing and exceeding their targets. The management can give
the deserved employee higher job rank/position in the organization.
As far as self-actualization needs are concerned, the managers can give the
employees challenging jobs in which the employees’ skills and competencies are
fully utilized. Moreover, growth opportunities can be given to them so that they can
reach the peak.
The managers must identify the need level at which the employee is existing and then
those needs can be utilized as push for motivation.

Limitations of Maslow’s Theory


 It is essential to note that not all employees are governed by same set of needs.
Different individuals may be driven by different needs at same point of time. It is
always the most powerful unsatisfied need that motivates an individual.
 The theory is not experientially supported.
 The theory is not applicable in case of starving artist as even if the artist’s basic
needs are not satisfied, he will still strive for recognition and achievement.

Herzberg’s Two-Factor Theory of Motivation

Motivator-Hygiene Theory

In 1959, Frederick Irving Herzberg an American psychologist and behavioural scientist


proposed a two-factor theory or the Motivator-Hygiene theory. According to
Herzberg, there are some job factors that result in satisfaction while there are other
job factors that prevent dissatisfaction.

According to Herzberg, the opposite of “Satisfaction” is “No satisfaction” and the


opposite of “Dissatisfaction” is “No Dissatisfaction”.
FIGURE: Herzberg’s view of satisfaction and dissatisfaction

Herzberg classified these job factors into two categories:

1. Hygiene Factors
2. Motivator Factors

1. Hygiene factors- Hygiene factors are those job factors which are essential for
existence of motivation at workplace. These do not lead to positive satisfaction for
long-term. But if these factors are absent / non-existent at workplace, then they
lead to dissatisfaction.

In other words, hygiene factors are those factors which when adequate/reasonable
in a job, pacify the employees and do not make them dissatisfied. These factors are
extrinsic to work.

Hygiene factors are also called as dissatisfiers or maintenance factors as they are
required to avoid dissatisfaction. These factors describe the job environment /
scenario. The hygiene factors symbolized the physiological needs which the
individuals wanted and expected to be fulfilled. Hygiene factors include:

 Pay: The pay or salary structure should be appropriate and reasonable. It must
be equal and competitive to those in the same industry in the same domain.

 Company Policies and administrative policies: The company policies should


not be too rigid. They should be fair and clear. It should include flexible working
hours, dress code, breaks, vacation, etc.

 Fringe benefits: The employees should be offered health care plans


(mediclaim), benefits for the family members, employee help programmes, etc.

 Physical Working conditions: The working conditions should be safe, clean and
hygienic. The work equipment’s should be updated and well-maintained.
 Status: The employees’ status within the organization should be familiar and
retained.

 Interpersonal relations: The relationship of the employees with his peers,


superiors and subordinates should be appropriate and acceptable. There
should be no conflict or humiliation element present.

 Job Security: The organization must provide job security to the employees.

2. Motivational factors- According to Herzberg, the hygiene factors cannot be


regarded as motivators. The motivational factors yield positive satisfaction.
These factors are inherent to work. These factors motivate the employees for a
superior performance.

These factors are called satisfiers. These are factors involved in performing the
job. Employees find these factors intrinsically rewarding. The motivators
symbolized the psychological needs that were perceived as an additional
benefit. Motivational factors include:

 Recognition: The employees should be praised and recognized for their


accomplishments by the managers.

 Sense of achievement: The employees must have a sense of achievement.


This depends on the job. There must be a fruit of some sort in the job.

 Growth and promotional opportunities: There must be growth and


advancement opportunities in an organization to motivate the employees
to perform well.

 Responsibility: The employees must hold themselves responsible for the


work. The managers should give them ownership of the work. They should
minimize control but retain accountability.

 Meaningfulness of the work: The work itself should be meaningful,


interesting and challenging for the employee to perform and to get
motivated.

Implications of Two-Factor Theory:

The Two-Factor theory implies that the managers must stress upon guaranteeing the
adequacy of the hygiene factors to avoid employee dissatisfaction. Also, the managers
must make sure that the work is stimulating (interesting) and rewarding so that the
employees are motivated to work and perform harder and better.
This theory emphasize upon job-enrichment so as to motivate the employees. The
job must utilize the employee’s skills and competencies to the maximum. Focusing on
the motivational factors can improve work-quality.

Limitations of Two-Factor Theory


The two factor theory is not free from limitations:

1. The two-factor theory overlooks situational variables.


2. Herzberg assumed a correlation between satisfaction and productivity. But the
research conducted by Herzberg stressed upon satisfaction and ignored
productivity.
3. The theory’s reliability is uncertain. Analysis has to be made by the raters. The
raters may spoil the findings by analyzing same response in different manner.
4. No comprehensive measure of satisfaction was used. An employee may find his
job acceptable despite the fact that he may hate/object part of his job.
5. The two factor theory is not free from bias as it is based on the natural reaction
of employees when they are enquired the sources of satisfaction and
dissatisfaction at work. They will blame dissatisfaction on the external factors
such as salary structure, company policies and peer relationship. Also, the
employees will give credit to themselves for the satisfaction factor at work.
6. The theory ignores blue-collar workers.

Despite these limitations, Herzberg’s Two-Factor theory is acceptable broadly.

Theory X and Theory Y by McGregor

In 1960, Douglas McGregor formulated Theory X and Theory Y suggesting two aspects
of human behaviour at work, or in other words, two different views of individuals
(employees):

1. one of which is negative, called as Theory X and


2. the other is positive, so called as Theory Y

According to McGregor, the perception of managers on the nature of individuals is


based on various assumptions.

Assumptions of Theory X
1) An average employee intrinsically does not like work and tries to escape it
whenever possible.
2) Since the employee does not want to work, he must be persuaded, compelled,
or warned with punishment so as to achieve organizational goals. A close
supervision is required on part of managers. The managers adopt a more
dictatorial style.
3) Many employees rank job security on top, and they have little or no aspiration/
ambition.
4) Employees generally dislike responsibilities.
5) Employees resist change.
6) An average employee needs formal direction.

Assumptions of Theory Y
1) Employees can see their job as relaxing and normal. They exercise their physical
and mental efforts in an inherent manner in their jobs.
2) Employees may not require only threat, external control and coercion to work,
but they can use self-direction and self-control if they are dedicated and sincere
to achieve the organizational objectives.
3) If the job is rewarding and satisfying, then it will result in employees’ loyalty and
commitment to organization.
4) An average employee can learn to admit and recognize the responsibility. In
fact, he can even learn to obtain responsibility.
5) The employees have skills and capabilities. Their logical capabilities should be
fully utilized.
6) In other words, the creativity, resourcefulness and innovative potentiality of the
employees can be utilized to solve organizational problems.

Thus, we can say that Theory X presents a pessimistic view of employees’ nature and
behaviour at work, while Theory Y presents an optimistic view of the employees’
nature and behaviour at work.
If we correlate it with Maslow’s theory, we can say that Theory X is based on the
assumption that the employees emphasize on the physiological needs and the safety
needs; while Theory X is based on the assumption that the social needs, esteem needs
and the self-actualization needs dominate the employees.

McGregor views Theory Y to be more valid and reasonable than Theory X. Thus, he
encouraged cordial team relations, responsible and stimulating jobs, and participation
of all in decision-making process.

Implications of Theory X and Theory Y


 Quite a few organizations use Theory X today. Theory X encourages use of tight
control and supervision. It implies that employees are reluctant to organizational
changes. Thus, it does not encourage innovation.
 Many organizations are using Theory Y techniques. Theory Y implies that the
managers should create and encourage a work environment which provides
opportunities to employees to take initiative and self-direction. Employees
should be given opportunities to contribute to organizational well-being.

Theory Y encourages decentralization of authority, teamwork and participative


decision making in an organization.

Theory Y searches and discovers the ways in which an employee can make
significant contributions in an organization. It harmonizes and matches
employees’ needs and aspirations with organizational needs and aspirations.

Q.3. Explain the modern theories of motivation.

Modern Theories of Motivation

1. McClelland’s Theory of Needs


2. ERG Theory of Motivation - Clayton Alderfer
3. Goal Setting Theory of Motivation – Edwin Locke

1. McClelland’s Theory of Needs - David McClelland

David McClelland and his associates proposed McClelland’s theory of


Needs/Achievement Motivation Theory.

This theory states that human behaviour is affected by three needs:


1. Need for Power,
2. Need for Achievement, and
3. Need for Affiliation
Need for power is the desire to influence other individual’s behaviour as per your wish.
In other words, it is the desire to have control over others and to be influential.

Need for achievement is the urge to excel, to accomplish in relation to a set of


standards, to struggle to achieve success.

Need for affiliation is a need for open and sociable interpersonal relationships. In
other words, it is a desire for relationship based on co-operation and mutual
understanding.

1. The individuals who are motivated by power have a strong urge to be influential
and controlling. They want that their views and ideas should dominate and thus,
they want to lead.

Such individuals are motivated by the need for reputation and self-esteem.
Individuals with greater power and authority will perform better than those
possessing less power.

Generally, managers with high need for power turn out to be more efficient
and successful managers. They are more determined and loyal to the
organization they work for.

Need for power should not always be taken negatively. It can be viewed as the
need to have a positive effect on the organization and to support the
organization in achieving it’s goals.

2. The individuals with high achievement needs are highly motivated by competing
and challenging work. They look for promotional opportunities in job. They have
a strong urge for feedback on their achievement.

Such individuals try to get satisfaction in performing things in a better way. High
achievement is directly related to high performance.

Individuals who are better and above average performers are highly motivated.
They assume responsibility for solving the problems at work. McClelland called
such individuals as gamblers as they set challenging targets for themselves and
they take deliberate risk to achieve those set targets.

Such individuals look for innovative ways of performing job. They perceive
achievement of goals as a reward, and value it more than a financial reward.

3. The individuals who are motivated by affiliation have an urge for a friendly and
supportive environment. Such individuals are effective performers in a team.
These people want to be liked by others.

The manager’s ability to make decisions is hampered if they have a high


affiliation need as they prefer to be accepted and liked by others, and this
weakens their objectivity.

Individuals having high affiliation needs prefer working in an environment


providing greater personal interaction.

Such people have a need to be on the good books of all. They generally cannot
be good leaders.
2. ERG Theory of Motivation - Clayton Alderfer

To bring Maslow’s need hierarchy theory of motivation in synchronization with


experiential research, Clayton Paul Alderfer an American psychologist redefined it in
his own terms. His rework is called as ERG theory of motivation. He recategorized
Maslow’s hierarchy of needs into three simpler and broader classes of needs:

 Existence needs- These include need for basic material necessities. In short, it
includes an individual’s physiological and physical safety needs.

 Relatedness needs- These include the aspiration individuals have for


maintaining significant interpersonal relationships (be it with family, peers or
superiors), getting public fame and recognition. Maslow’s social needs and
external component of esteem needs fall under this class of need.

 Growth needs- These include need for self-development and personal growth
and advancement. Maslow’s self-actualization needs and intrinsic component of
esteem needs fall under this category of need.

The significance of the three classes of needs may vary for each individual.

Difference between Maslow Need Hierarchy Theory and Alderfer’s ERG Theory

 ERG Theory states that at a given point of time, more than one need may be
operational.
 ERG Theory also shows that if the fulfilment of a higher-level need is subdued
(discouraged), there is an increase in desire for satisfying a lower-level need.
 According to Maslow, an individual remains at a particular need level until that
need is satisfied.
While according to ERG theory, if a higher-level need aggravates, an individual
may revert to increase the satisfaction of a lower-level need. This is called
frustration – regression (deterioration) aspect of ERG theory.
For instance – when growth need aggravates, then an individual might be
motivated to accomplish the relatedness need and if there are issues in
accomplishing relatedness needs, then he might be motivated by the existence
needs. Thus, frustration/aggravation can result in regression to a lower-level
need.
 While Maslow’s need hierarchy theory is rigid as it assumes that the needs
follow a specific and orderly hierarchy and unless a lower-level need is satisfied,
an individual cannot proceed to the higher-level need; ERG Theory of motivation
is very flexible as he perceived the needs as a range/variety rather than
perceiving them as a hierarchy.

According to Alderfer, an individual can work on growth needs even if his


existence or relatedness needs remain unsatisfied. Thus, he gives explanation to
the issue of “starving artist” who can struggle for growth even if he is hungry.

Implications of the ERG Theory


Managers must understand that an employee has various needs that must be satisfied
at the same time.

According to the ERG theory, if the manager concentrates solely on one need at a
time, this will not effectively motivate the employee. Also, the frustration-regression
aspect of ERG Theory has an added effect on workplace motivation.

For instance – if an employee is not provided with growth and advancement


opportunities in an organization, he might revert to the relatedness need such as
socializing needs and to meet those socializing needs, if the environment or
circumstances do not permit, he might revert to the need for money to fulfil those
socializing needs. The sooner the manager realizes and discovers this, the more
immediate steps they will take to fulfil those needs which are frustrated until such
time that the employee can again pursue growth.

3. Goal Setting Theory of Motivation – Edwin Locke

In 1960’s, Edwin Locke put forward the Goal-setting theory of motivation.


This theory states that goal setting is essentially linked to task performance.
It states that specific and challenging goals along with appropriate feedback contribute
to higher and better task performance.
In simple words, goals indicate and give direction to an employee about what needs
to be done and how much efforts are required to be put in.

The important features of goal-setting theory are as follows:

 The willingness to work towards attainment of goal is main source of job


motivation. Clear, particular and difficult goals are greater motivating factors
than easy, general and vague goals.
 Specific and clear goals lead to greater output and better performance.
Unambiguous, measurable and clear goals accompanied by a deadline for
completion avoids misunderstanding.
 Goals should be realistic and challenging. This gives an individual a feeling of
pride and triumph when he attains them, and sets him up for attainment of next
goal.
The more challenging the goal, the greater is the reward generally and the more
is the passion for achieving it.
 Better and appropriate feedback of results directs the employee behaviour and
contributes to higher performance than absence of feedback.
Feedback is a means of gaining reputation, making clarifications and regulating
goal difficulties. It helps employees to work with more involvement and leads to
greater job satisfaction.
 Employees’ participation in goal is not always desirable.
 Participation of setting goal, however, makes goal more acceptable and leads to
more involvement.

Goal setting theory has certain eventualities such as:

a. Self-efficiency- Self-efficiency is the individual’s self-confidence and faith that he


has potential of performing the task. Higher the level of self-efficiency, greater
will be the efforts put in by the individual when they face challenging tasks.
While, lower the level of self-efficiency, less will be the efforts put in by the
individual or he might even quit while meeting challenges.

b. Goal commitment- Goal setting theory assumes that the individual is committed
to the goal and will not leave the goal.

The goal commitment is dependent on the following factors:


i. Goals are made open, known and broadcasted.
ii. Goals should be set-self by individual rather than designated.
iii. Individual’s set goals should be consistent with the organizational goals
and vision.
Advantages of Goal Setting Theory
 Goal setting theory is a technique used to raise incentives for employees to
complete work quickly and effectively.
 Goal setting leads to better performance by increasing motivation and efforts,
but also through increasing and improving the feedback quality.

Limitations of Goal Setting Theory


 At times, the organizational goals are in conflict with the managerial goals. Goal
conflict has a detrimental effect on the performance if it motivates incompatible
action drift.
 Very difficult and complex goals stimulate riskier behaviour.
 If the employee lacks skills and competencies to perform actions essential for
goal, then the goal-setting can fail and lead to undermining of performance.
 There is no evidence to prove that goal-setting improves job satisfaction.

Q.4. Define Leadership. Elaborate need and importance of leadership.

Leadership

“The action of leading a group of people or an organisation.”

Leadership is a process by which an executive can direct, guide and influence the
behaviour and work of others towards accomplishment of specific goals in a given
situation. Leadership is the ability to convince the subordinates to work with
confidence and zeal.

Leadership is the potential to influence behaviour of others. It is also defined as the


capacity to influence a group towards the realization of a goal. Leaders are required to
develop future visions, and to motivate the organizational members to want to achieve
the visions.

According to Keith Davis, “Leadership is the ability to persuade others to seek defined
objectives enthusiastically. It is the human factor which binds a group together and
motivates it towards goals.”
Need and Importance of Leadership

Any organization, whether it’s a business, school, or government agency, needs


leaders to help guide the way. Leaders provide direction and vision, motivate and
inspire others, and help create an environment conducive to success by promoting
communication and collaboration among team members. In short, leadership and
strong management are essential for any organization that wants to achieve its
objectives.

Mentioned below are 10 reasons which make the leadership important in any
organization:

1. Improves Communication
2. Creates a Better Work Environment
3. Improves Productivity
4. Increases Efficiency
5. Minimises Mistakes
6. Motivates Employees
7. Sets a Good Example for Others
8. Inspires Hard Work
9. Creates a Strong Vision and Direction for the Future
10. Helps Keep Employees on Track

1. Improves Communication
One of the most important duties of a leader is to facilitate communication within the
workplace. Clear and concise communication is essential for any team to function
correctly. Effective leaders will make it a point to keep lines of communication open at
all times and create an open and inclusive environment where everyone feels
comfortable sharing their ideas. By ensuring employees have a forum to voice their
concerns and opinions, a leader can encourage a work culture where new ideas are
welcome, and misunderstandings are avoided.

2. Creates a Better Work Environment


Leaders have a profound impact on their overall work environment. Effective leaders
create an atmosphere of trust and respect, which in turn fosters creativity and
collaboration. Employee morale is also higher in workplaces with strong management,
leading to stronger workplace relationships. When employees feel engaged with their
team and that their contributions matter, they are more likely to be motivated to go
above and beyond in the workplace.

3. Improves Productivity
A successful leader makes all the difference in a team’s productivity. When employees
feel excited about the work they’re doing, they are more likely to be productive. On
the other hand, a poor leader can cause employees to become disengaged and
uninterested in their work. A team that is led effectively will be more productive,
efficient, and successful overall.

4. Increases Efficiency
A productive leader can help to improve efficiency by getting the most out of their
team. Leaders can help improve efficiency by ensuring everyone is working towards
the same goal and doing what they do best. They can provide guidance and direction
while delegating tasks to make the most of everyone’s strengths.

5. Minimises Mistakes
A capable leader is essential for any workplace that wants to minimize mistakes and
run smoothly. This is especially important in high-pressure environments where
mistakes can have serious consequences. A leader needs to be able to identify
potential problems early on and quickly resolve them.

6. Motivates Employees
Good leaders know how to effectively motivate their employees. They understand that
people are different and that what works for one person may not work for another. As
a result, they take the time to get to know their team members and discover what
works best for them. This can then create a more motivated group of employees who
are excited about their own strengths and workplace contributions.

7. Sets a Good Example for Others


An effective leader knows that setting a good example is one of the best ways to
inspire others. After all, people are more likely to follow someone they see as a role
model. By behaving in a way that exemplifies the values and goals of their team or
organization, good leaders can show others what it means to be a committed and
successful member.

8. Inspires Hard Work


A great leader can instil a sense of purpose in their team. When people feel like they
are working towards something bigger than themselves, they are more likely to be
willing to put in the hard work required to achieve it. An effective leader knows how to
tap into this sense of purpose and channel it into productive effort.

9. Creates a Strong Vision and Direction for the Future


A successful leader understands the importance of having a solid vision and how to
create one that will guide their organization toward a bright future. Without a clear
vision, maintaining momentum or progressing toward long-term goals can be
challenging. A leader with a strong vision can create a sense of direction and purpose,
helping to focus and energize an entire organization.
10. Helps Keep Employees on right Track
Once the company’s vision is well-articulated and understood, sound leadership is
essential to keep employees focused on reaching that goal. This means clearly
communicating the company’s vision and objectives as progress is made and changes
occur, and then providing the necessary support and resources for success.

Q.5. Expound various types of leadership styles.

Different Types of Leadership styles

All leaders have a unique style that sets them apart from others. Hence, these
different types of leadership styles will help you decide which type of leader you want
to be. Accordingly, you would be able to hone your skills with the best leadership
training programme.

1) Autocratic leadership
2) Laissez-Faire leadership
3) Democratic leadership
4) Bureaucratic leadership

1) Autocratic leadership
A leader who has complete control over his team is called an autocratic leader. They
never bend their beliefs and rules for anyone. Additionally, their team has no say in the
business decisions. Moreover, the team is expected to follow the path directed by the
leader.

This outdated style of leadership has very few takers because it discourages change.
And modern leaders are changing the definition of leadership and redefining what
leadership is with their path-breaking decisions.

2) Laissez-Faire leadership
Laissez-Faire is derived from a French word that means ‘allow to do’. “The practice of
non-interference in the affairs of others, especially with reference to individual
conduct or freedom of action,’ defines dictionary.com. In this type of leadership, team
members have the freedom to perform their job according to their will. They are given
the freedom to bring in their perspective and intelligence in performing business
functions.

3) Democratic leadership
In this type of leadership, team members and leaders equally contribute to actualising
business goals. Furthermore, they work together and motivate each other to achieve
their personal goals too. This type of leadership leads to a positive working
environment.

4) Bureaucratic leadership
In this type of leadership, leaders strictly adhere to organisational rules and policies.
They make sure that their team members do the same. Bureaucratic leaders are often
organised and self-motivated.

There is no right or wrong leadership style. Therefore, it is up to you to decide the kind
of leader you wish to become.

Q.6. Explicate the qualities of an effective leader.

What Do Leaders Do?


Leaders are not always people who hold higher ranks in an organization. But they are
people who are known for their beliefs and work ethics. A leader is passionate about
their work, and they pass on their enthusiasm to their fellow workers, enabling them
to achieve their goals.

Qualities of an effective Leader:

1. Honesty and Integrity


2. Inspiration
3. Communication skills
4. Vision
5. Never give-up spirit
6. Intuitive
7. Empathy
8. Objective
9. Intelligence
10. Knowledge of work
11. Open-mindedness and creativity
12. Patient
13. Flexible
14. Sense of Responsibility
15. Self-confidence and will-power
16. Humanist

1. Honesty and Integrity: Leaders value virtuousness and honesty. They have people
who believe in them and their vision.
2. Inspiration: Leaders are self-motivating, and this makes them great influencers.
They are a good inspiration to their followers. They help others to understand their
roles in a bigger context.
3. Communication skills: Leaders possess great communication skills. They are
transparent with their team and share failures and successes with them.
4. Vision: Leaders are visionaries. They have a clear idea of what they want and how to
achieve it. Being good communicators, leaders can share their vision with the team
successfully.
5. Never give-up spirit: Leaders challenge the status quo. Hence, they never give up
easily. They also have unique ways to solve a problem.
6. Intuitive: Leadership coach Hortense le Gentil believes that leaders should rely on
intuition for making hard decisions. Especially because intuition heavily relies on a
person’s existing knowledge and life learnings, which proves to be more useful in
complex situations.
7. Empathy: A leader should be an emotional and empathetic fellow because it will
help them in developing a strong bond with their team. Furthermore, these qualities
will help a leader in addressing the problems, complaints, and aspirations of his team
members.
8. Objective: Although empathy is an important quality a leader must imbibe, getting
clouded by emotions while making an important business decision is not advisable.
Hence, a good leader should be objective.
9. Intelligence: A good leader must be intelligent enough to arrive at business
solutions to difficult problems. Furthermore, a leader should be analytical and should
weigh the pros and cons before making a decision. This quality can be polished with an
all-inclusive leadership training program.
10. Knowledge of work: A leader should be very precisely knowing the nature of work
of his subordinates because it is then he can win the trust and confidence of his
subordinates.
11. Open-mindedness and creativity: A good leader is someone who is open to new
ideas, possibilities, and perspectives. Being a good leader means understanding that
there is no right way to do things. Therefore, a good leader is always ready to listen,
observe, and be willing to change. They are also out-of-the-box thinkers and
encourage their teams to do so. If you enrol for a leadership course, all these things
will be a part of the curriculum.
12. Patient: A good leader understands that a business strategy takes time to develop
and bear results. Additionally, they also believe that ‘continuous improvement and
patient’ leads to success.
13. Flexible: Since leaders understand the concept of ‘continuous improvement, they
also know that being adaptable will lead them to success. Nothing goes as per plan.
Hence, being flexible and intuitive helps a manager to hold his ground during complex
situations.
14. Sense of responsibility: Responsibility and accountability towards an individual’s
work is very important to bring a sense of influence. A leader must have a sense of
responsibility towards organizational goals because only then he can get maximum of
capabilities exploited in a real sense. For this, he has to motivate himself and arouse
and urge to give best of his abilities. Only then he can motivate the subordinates to the
best.
15. Self-confidence and Will-power- Confidence in himself is important to earn the
confidence of the subordinates. He should be trustworthy and should handle the
situations with full will power.
16. Humanist: Presence of this trait is essential in a leader because he deals with
human beings and is in personal contact with them. He has to handle the personal
problems of his subordinates with great care and attention. Therefore, treating the
human beings on humanitarian grounds is essential for building a congenial
environment.

Q.7. Define Directing function. Explain various principles of directing.

Directing Function of Management

Directing is said to be a process in which the managers instruct, guide and oversee the
performance of the workers to achieve predetermined goals.

Directing is said to be the heart of management process. Planning, organizing, staffing


have got no importance if direction function does not take place.

Directing initiates action and it is from here actual work starts. Direction is said to be
consisting of human factors. In simple words, it can be described as providing guidance
to workers in doing work.

In field of management, direction is said to be all those activities which are designed to
encourage the subordinates to work effectively and efficiently.

According to Human behaviourists, “Directing consists of process or technique by


which instruction can be issued and operations can be carried out as originally
planned”

Therefore, Directing is the function of guiding, inspiring, overseeing and instructing


people towards accomplishment of organizational goals.

Principles of Directing:

Directing has following principles / characteristics:

1. Pervasive Function
2. Continuous Activity
3. Human Factor
4. Creative Activity
5. Executive Function
6. Delegate Function

1. Pervasive Function - Directing is universal and unescapable function which is


required at all levels of organization. Every manager provides guidance and
inspiration to his subordinates.

2. Continuous Activity - Direction is a continuous activity as it continuous


throughout the life of organization.

3. Human Factor - Directing function is related to subordinates and therefore it is


related to human factor. Since human factor is complex and behaviour is
unpredictable, so direction function becomes important.

4. Creative Activity - Directing function helps in converting plans into performance.


Without this function, people become inactive and physical resources are
meaningless.

5. Executive Function - Direction function is executed by all managers and


executives at all levels throughout the working of an enterprise, a subordinate
receives instructions from his superior only.

6. Delegate Function - Direction is supposed to be a function dealing with human


beings. Human behaviour is unpredictable by nature and conditioning the
people’s behaviour towards the goals of the enterprise is what the executive
does in this function. Therefore, it is termed as having delegacy in it to tackle
human behaviour.

Q.8. Define Controlling function. Explain various principles / Features of Controlling


Function.

Controlling Function of Management

Controlling consists of verifying whether everything occurs in conformities with the


plans adopted, instructions issued and principles established.

Controlling ensures that there is effective and efficient utilization of organizational


resources so as to achieve the planned goals.
Controlling measures the deviation of actual performance from the standard
performance, discovers the causes of such deviations and helps in taking corrective
actions.

According to Brech, “Controlling is a systematic exercise which is called as a process of


checking actual performance against the standards or plans with a view to ensure
adequate progress and also recording such experience as is gained as a contribution to
possible future needs.”

According to Donnell, “Just as a navigator continually takes reading to ensure whether


he is relative to a planned action, so should a business manager continually take
reading to assure himself that his enterprise is on right course.”

Controlling has got two basic purposes:


1. It facilitates co-ordination
2. It helps in planning

Principles / Features of Controlling Function


Following are the principles / characteristics of controlling function of management:

1. Controlling is an end function


2. Controlling is a pervasive function
3. Controlling is forward looking
4. Controlling is a dynamic process
5. Controlling is related with planning

1. Controlling is an end function- A function which comes, once the performances


are made in conformities with plans.

2. Controlling is a pervasive function- It is universal and unescapable function


which means it is performed by managers at all levels and in all type of concerns.

3. Controlling is forward looking- because effective control is not possible without


past being controlled. Controlling always look to future so that follow-up can be
made whenever required.

4. Controlling is a dynamic process- since controlling requires taking reviewable


methods, changes have to be made wherever possible.

5. Controlling is related with planning- Planning and Controlling are two


inseparable functions of management. Without planning, controlling is a
meaningless exercise and without controlling, planning is useless. Planning
presupposes controlling and controlling succeeds planning.

Q.9. Explain various elements of control process.

Control Process
Controlling is one of the most important functions of management. Its main objective is to
ensure that an organization’s activities are advancing as planned. The control process that
all managers have to implement consists of several steps. Each one of these is equally
important and plays a big role in effective management.

The control process of management ensures that every activity of a business is helping in
achievement of its goals. This process basically helps managers in evaluating their
organization’s performance. By using it effectively, they can decide whether to change
their plans or continue with them as they are.

The control process consists of the following basic elements and steps:

1. Establishing goals and standards

The task of fixing goals and standards takes place while planning but it plays a big role in
controlling also. This is because the main aim of controlling is to direct a business’s
actions towards its goals. If the members of an organization know their goals clearly, they
will invest their entire focus in achieving them.
It is very important for managers to communicate their organization’s goals, standards
and objectives as clearly as possible. There must never be ambiguities amongst
employees in this regard. If everybody works towards common goals, it becomes easier
for an organization to flourish.
The goals that managers have to set and work towards may be either tangible/specific or
intangible/abstract. Tangible goals are those which are easy to quantify in numerical
terms. For example, achievement of sales worth Rs. 100 crores within one year is a
tangible goal.
On the other hand, intangible goals are those which are not quantifiable numerically. For
example, a company may aim to win some prestigious award for its corporate
social responsibility activities.

2. Measuring actual performance against goals and standards

Once managers know what their goals are, they should next measure their actual
performance and compare. This step basically helps them in knowing whether their plans
are working as intended.
After implementing a plan, managers have to constantly monitor and evaluate them.
They must always be ready to take corrective measures if things are not working
properly. In order to do this, they should keep comparing their actual performance with
their ultimate goals.
Apart from taking corrective action, this step of process control also helps managers in
predicting future problems. This way they can take measures immediately and save their
business from losses.
In order to compare their actual performance, managers first have to measure it. They
can do so by measuring results in monetary terms, seeking customer feedback,
appointing financial experts, etc. This can often become difficult if managers want to
measure intangible standards like industrial relations, market reputation, etc.

(source – utah ATV trails)

3. Taking corrective action


In case there are discrepancies between actual performances and goals, managers need
to take corrective actions immediately. Timely corrective actions can reduce losses as
well as prevent them from arising in the future again.
Sometimes, business organizations formulate default corrective actions in the form
of policies. This, however, can be difficult to do when it comes to complicated problems.
In such cases, managers need to first quantify the defect and prepare a course of action
to remedy it. Sometimes, they may have to take extraordinary measures for
unpredictable problems.

4. Following up on corrective action


Just taking corrective measures is not enough; managers must also take them to their
logical conclusion. Even this step requires thorough evaluations and comparisons.
Managers should stick to the problem until they solve it. If they refer it to a subordinate,
they must stay around and see to it that he completes the task. They may even mentor
him personally so that he may be able to solve such problems by himself later.

Q.10. Explain various types of control techniques.

Types of Control Techniques

In management, Controlling is one of the most important functions in an organization


which is goal-oriented. Types of Control techniques in management are Modern and
Traditional control techniques. Feed forward, feedback and concurrent controls are also
types of management control techniques.

Controlling helps the managers in eliminating the gap between organizations actual
performance and goals. Controlling is the process in which actual performance is
compared with the company standards. Comparing it gives the visibility that activities are
performed according to strategy or not. If it is not performed then necessary corrective
action should be taken. Let us learn more about Control Techniques in Management.

Control Techniques in Management


Management theorists and experts have devised several techniques over the years. They
often divide these techniques into two categories: traditional and modern. Traditional
types of techniques generally focus on non-scientific methods. On the other
hand, modern techniques find their sources in scientific methods which can be more
accurate.
Traditional Types of Control Techniques in Management:

1. Budgetary Control
2. Standard Costing
3. Financial Ratio Analysis
4. Internal Audit
5. Break-Even Analysis
6. Statistical Control
Despite the emergence of modern techniques, traditional practices are still widely in use
these days. Let us discuss them one by one.

1. Budgetary Control

Budgeting simply means showcasing plans and expected results using numerical
information. As a corollary to this, budgetary control means controlling
regular operations of an organization for executing budgets.
A budget basically helps in understanding and expressing expected results of projects and
tasks in numerical form. For example, the amounts of sales, production output, machine
hours, etc. can be seen in budgets.
There can be several types of budgets depending on the kind of data they aim to project.
For example, a sale budget explains selling and distribution targets. Similarly, there can
also be budgets for purchase, production, capital expenditure, cash, etc.
The main aim of budgetary control is to regulate the activity of an organization using
budgeting. This process firstly requires managers to determine what objectives they wish
to achieve from a particular activity. After that, they have to lay down the exact course of
action that they will follow for weeks and months.
Next, they will translate these expected results into monetary and numerical terms, i.e.
under a budget. Finally, managers will compare actual performances with their budgets
and take corrective measures if necessary. This is exactly how the process of budgetary
control works.

2. Standard Costing
Standard costing is similar to budgeting in the way that it relies on numerical figures. The
difference between the two, however, is that standard costing relies on standard and
regular/recurring costs.
Under this technique, managers record their costs and expenses for every activity and
compare them with standard costs. This controlling technique basically helps in realizing
which activity is profitable and which one is not.

3. Financial Ratio Analysis


Every business organization has to depict its financial performances using reports like
balance sheets and profit & loss statements. Financial ratio analysis basically compares
these financial reports to show the financial performance of a business in numerical
terms.
Comparative studies of financial statements showcase standards like changes in assets,
liabilities, capital, profits, etc. Financial ratio analysis also helps in understanding the
liquidity and solvency status of a business.

4. Internal Audit
Another popular traditional type of control technique is internal auditing. This process
requires internal auditors to appraise themselves of the operations of an organization.
Generally, the scope of an internal audit is narrow and it relates to financial and
accounting activities. In modern times, however, managers use it to regulate several
other tasks.
For example, it can also cover policies, procedures, methods, and management of an
organization. Results of such audits can, consequently, help managers take corrective
action for controlling.

5. Break-Even Analysis
Break-even analysis shows the point at which a business neither earns profits nor incurs
losses. This can be in the form of sale output, production volume, the price of products,
etc.
Managers often use break-even analysis to determine the minimum level of results they
must achieve for an activity. Any number that goes below the break-even point triggers
corrective measures for control.

6. Statistical Control
The use of statistical tools is a great way to understand an organization’s tasks effectively
and efficiently. They help in showing averages, percentages, and ratios using
comprehensible graphs and charts.
Managers often use pie charts and graphs to depict their sales, production, profits,
productivity, etc. Such tools have always been popular traditional control techniques.

Q.10. Differentiate between leadership and management.

Differences between Leadership and Management

Leadership differs from management in a sense that:


1. While managers lay down the structure and delegates authority and
responsibility, leaders provides direction by developing the organizational vision
and communicating it to the employees and inspiring them to achieve it.
2. While management includes focus on planning, organizing, staffing, directing
and controlling; leadership is mainly a part of directing function of management.
Leaders focus on listening, building relationships, teamwork, inspiring,
motivating and persuading the followers.
3. While a leader gets his authority from his followers, a manager gets his authority
by virtue of his position in the organization.
4. While managers follow the organization’s policies and procedure, the leaders
follow their own instinct.
5. Management is more of science as the managers are exact, planned, standard,
logical and more of mind.
Leadership, on the other hand, is an art. In an organization, if the managers are
required, then leaders are a must/essential.
6. While management deals with the technical dimension in an organization or the
job content; leadership deals with the people aspect in an organization.
7. While management measures/evaluates people by their name, past records,
present performance;
Leadership sees and evaluates individuals as having potential for things that
can’t be measured, i.e., it deals with future and the performance of people if
their potential is fully extracted.
8. If management is reactive, leadership is proactive.
9. Management is based more on written communication, while leadership is
based more on verbal communication.
The organizations which are over managed and under-led do not perform upto the
benchmark.

Leadership accompanied by management sets a new direction and makes efficient


use of resources to achieve it.
Both leadership and management are essential for individual as well as organizational
success.
Leader versus Manager
“Leadership and managership are two synonymous terms” is an incorrect statement.
Leadership doesn’t require any managerial position to act as a leader. On the other
hand, a manager can be a true manager only if he has got the traits of leader in him. By
virtue of his/her position, manager has to provide leadership to his group.
A manager has to perform all five functions to achieve goals, i.e., Planning, Organizing,
Staffing, Directing, and Controlling. Leadership is a part of these functions.
Leadership as a general term is not related to managership. A person can be a leader
by virtue of qualities in him. For example: leader of a club, class, welfare association,
social organization, etc. Therefore, it is true to say that, “All managers are leaders, but
all leaders are not managers.”
A leader is one who influences the behaviour and work of others in group efforts
towards achievement of specified goals in a given situation. On the other hand,
manager can be a true manager only if he has got traits of leader in him. Manager at all
levels are expected to be the leaders of work groups so that subordinates willingly
carry instructions and accept their guidance. A person can be a leader by virtue of all
qualities in him.

Leaders and Managers can be compared on the following basis:


Basis Manager Leader

A person becomes a manager A person becomes a leader on


Origin
by virtue of his position. basis of his personal qualities.

Manager has got formal rights


Rights are not available to a
Formal Rights in an organization because of
leader.
his status.

The group of employees whom


The subordinates are the
Followers the leaders leads are his
followers of managers.
followers.

A manager performs all five Leader influences people to work


Functions
functions of management. willingly for group objectives.

A leader is required to create


A manager is very essential to a
Necessity cordial relation between person
concern.
working in and for organization.

Stability It is more stable. Leadership is temporary.

Mutual
All managers are leaders. All leaders are not managers.
Relationship

Manager is accountable for self


Leaders have no well-defined
Accountability and subordinates behaviour
accountability.
and performance.

A manager’s concern is A leader’s concern is group goals


Concern
organizational goals. and member’s satisfaction.

People follow manager by People follow them on voluntary


Followers
virtue of job description. basis.

A manager can continue in


A leader can maintain his position
Role office till he performs his duties
only through day to day wishes of
continuation satisfactorily in congruence
followers.
with organizational goals.

Manager has command over A leader has command over


Sanctions allocation and distribution of different sanctions and related
sanctions. task records. These sanctions are
essentially of informal nature.

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