SEMESTER-6

BA(JMC) -302

MEDIA MANAGEMENT AND ENTREPRENEURSHIP

TECNIA INSTITUTE OF ADVANCED STUDIES

(AFFILIATED TO GGSIPU)
 UNIT- II

CHAPTER- 1

Management: Definition, Need and Principles Management: An Overview

Management is the act of getting people together to accomplish desired goals and objectives
using available resources efficiently and effectively. Since organizations can be viewed as
systems, management can also be defined as human action, including design, to facilitate the
production of useful outcomes from a system. This view opens the opportunity to manage
oneself, a pre-requisite to attempting to manage others.

Definition:

 . According to Harold Koontz, “Management is an art of getting things done through and
with the people in formally organized groups. It is an art of creating an environment in
which people can perform and individuals and can co-operate towards attainment of group
goals”.

 According to F.W. Taylor, “Management is an art of knowing what to do, when to do and
see that it is done in the best and cheapest way”.

 Management can be defined as the process of administering and controlling the affairs of
the organization, irrespective of its nature, type, structure and size. It is an act of creating
and maintaining such a business environment wherein the members of the organization
can work together, and achieve business objectives efficiently and effectively.

Management acts as a guide to a group of people working in the organization and

coordinating their efforts, towards the attainment of the common objective.
In other words, it is concerned with optimally using 5M’s, i.e., men, machine, material, money and
methods and, this is possible only when there are proper direction, coordination and integration of
the processes and activities, to achieve the desired results.

Characteristics of Management

Universal: All the organizations, whether it is profit-making or not, they require management,
for managing their activities. Hence it is universal in nature.
Goal Oriented: Every organization is set up with a predetermined objective and management
helps in reaching those goals timely, and smoothly.

Continuous Process: It is an ongoing process which tends to persist as long as the organization
exists. It is required in every sphere of the organization whether it is production, human
resource, finance or marketing.

Multi-Dimensional: Management is not confined to the administration of people only, but it also
manages work, processes and operations, which makes it a multi-disciplinary activity.

Group Activity: An organization consists of various members who have different needs,
expectations and beliefs. Every person joins the organization with a different motive, but after
becoming a part of the organization they work for achieving the same goal. It requires
supervision, teamwork and coordination, and in this way, management comes into the picture.

Dynamic Function: An organization exists in a business environment that has various factors
like social, political, legal, technological and economic. A slight change in any of these factors
will affect the organization’s growth and performance. So, to overcome these changes
management formulates strategies and implements them.

Intangible Force: Management can neither be seen nor touched but one can feel its existence, in
the way the organization functions.

Precisely, all the functions, activities and processes of the organization are interconnected to one
another. And it is the task of the management to bring them together in such a way that they
help in reaching the intended result.

Levels of Management

Top-Level Management: This is the highest level in the organizational hierarchy, which
includes Board of Directors and Chief Executives. They are responsible for defining the
objectives, formulating plans, strategies and policies.

Middle-Level Management: It is the second and most important level in the corporate ladder, as
it creates a link between the top and lower-level management. It includes departmental and
 division heads and managers who are responsible for implementing and controlling plans and
strategies which are formulated by the top executives.

Lower-Level Management: Otherwise called as functional or operational level management. It

includes first line managers, foreman, supervisors. As lower-level management directly
interacts with the workers, it plays a crucial role in the organization because it helps in reducing
wastage and idle time of the workers, improving the quality and quantity of output.

The three management levels form the management hierarchy, that represents the position and
rank of executives and managers in the chart.

NEED FOR MANAGEMENT

• Effective Utilization of Resources: It is necessary to get maximum output. Management

is needed to take care that there is no underutilization and no overutilization of resources.

• Development of Resources: Through training and development, we enhance the morale

of the workers.

• To incorporate Innovations: As there is a lot competition in the market, we need to

structure the organization but flat structures are more emphasized for organizations.

• To Integrate Various Interest Groups: Customers, Officials, Workers interest,

share holders interest should be looked upon.

• Stability in Society: Stability can be ensure by management if it changes according to

the change in the environment and is able to cope up with the changes.

HENRI FAYOL’S PRINCIPLES OF MANAGEMENT

Henry Fayol’s 14 principles of management look at an organization from a top-
down approach to help managers get the best from employees and run the
business with ease. Let’s take a look at them and understand them in detail.
1. Division of Work

The first Henry Fayol principle of management is based on the theory that if an
employee is given a specific task to do, they will become more efficient and
skilled in it. This is opposed to a multi-tasking culture where an employee is
given so many tasks to do at once. In order to implement this principle
effectively, look at the current skill sets of each employee and assign them a
task that they can become proficient at. This will help them to become more
productive, skilled, and efficient in the long run.

2. Authority

This henry fayol principle of management states that a manager needs to

have the necessary authority in order to ensure that his instructions are
carried out by the employees. If managers did not have any authority, then
they would lack the ability to get any work done. However, this authority
should come along with responsibility. According to Henri Fayol, there should
be a balance between authority and responsibility. If there is more authority
than responsibility, the employees will get frustrated. If there is more
responsibility than authority, the manager will feel frustrated.

3. Discipline

This principle states that discipline is required for any organization to run
effectively. In order to have disciplined employees, managers need to build a
culture of mutual respect. There should be a set of organizational rules,
philosophies, and structures in place that should be met by everyone. Bending
rules or slacking should not be allowed in any organization. In order to achieve
this, there is a need for good supervision and impartial judgment.
4. Unity of Command

This principle states that that should be a clear chain of command in the
organization. The employees should be clear on whose instructions to follow.
According to Fayol, an employee should receive orders from only one
manager. If an employee works under two or more managers, then authority,
discipline, and stability are threatened. Moreover, this will cause a breakdown
in management structure and cause employees to burn out.

5. Unity of Direction

This henry fayol principle of management states that the work to be done
should be organized in such a way that employees work in harmony towards
the same objective, using one plan, under the direction of one manager. For
example, if you have a range of marketing activities such as advertising,
budgeting, sales promotion, etc., there should be one manager using one plan
for all the marketing activities. The different activities can be broken down for
different sub-managers, but they should all work towards a common goal
under the direction of one main person in charge of the whole thing.

6. Collective Interest Over Individual Interest

This principle states that the overall interest of the team should take
precedence over personal ones. The interest of the organization should not be
sabotaged by the interest of an individual. If anyone goes rogue, the
organization will collapse.
7. Remuneration

This henry fayol principle of management states that employees should be

paid fair wages for the work that they carry out. Any organization that
underpays its workers will struggle to motivate and keep quality workers. This
remuneration should include both financial and non-financial incentives. Also,
there should be a structure in place to reward good performance to motivate
employees.

8. Centralization

Centralization refers to the concentration of power in the hands of the

authority and following a top-bottom approach to management. In
decentralization, this authority is distributed to all levels of management. In a
modern context, no organization can be completely centralized or
decentralized. Complete centralization means that people at the bottom have
no authority over their responsibilities. Similarly, complete decentralization
means that there will be no superior authority to control the organization. To
use this effectively today, there should be a balance of centralization and
decentralization. The degree to which this balance is achieved will differ from
organization to organization.

9. Scalar Chain

A scalar chain refers to a clear chain of communication between employees

and their superiors. Employees should know where they stand in the hierarchy
of the organization and who to go to in a chain of command. To implement this
in the workplace, Fayol suggests that there should be an organizational chart
drawn out for employees to see this structure clearly
10. Order

This principle states that there should be an orderly placement of resources

(manpower, money, materials, etc.) in the right place at the right time. This
ensures the proper use of resources in a structured fashion. Misplacement of
any of these resources will lead to misuse and disorder in the organization.

11. Equity

Equity is a combination of kindness and justice. This principle states that

managers should use kindliness and justice towards everyone they manage.
This creates loyalty and devotion among the employees towards the
organization they work for.

12. Stability of Tenure of Personnel

This principle states that an organization should work to minimize staff

turnover and maximize efficiency. Any new employee cannot be expected to
get used to the culture of an organization right away. They need to be given
enough time to settle into their jobs to become efficient. Both old and new
employees should also be ensured job security because instability can lead to
inefficiency. There should also be a clear and effective method to handle
vacancies when they arise because it takes time and expense to train new
ones.

13. Initiative

This principle states that all employees should be encouraged to show

initiative. When employees have a say as to how best they can do their job,
they feel motivated and respected. Organizations should listen to the concerns
of their employees and encourage them to develop and carry out plans for
improvement.

14. Esprit de Corps

Esprit de Corps means “Team Spirit”. This henry fayol principle of

management states that the management should strive to create unity,
morale, and co-operation among the employees. Team spirit is a great source
of strength in the organization. Happy and motivated employees are more
likely to be productive and efficient.

MANAGEMENT FUNCTIONS

PLANNING

Planning is deciding the best alternative among others to perform different managerial operations
in order to achieve pre-determined goals. Planning is an intellectually demanding process. It
requires the conscious determination of course of action and the basing of the decision on
purpose, knowledge & considered estimates. (Koontz).
PROCESS OF PLANNING:

1. Identification of area of study: The first and foremost step in planning process is
identifying the area of study for which management wants to work.
2. Collection and Analysis of data: Sufficient information must be collected in order to
make the plan & sub-plans. The collection & forecasting should be done in terms of external
and
internal environment.
3. Setting the objectives: Once data is collected, objectives are set. Objectives provide
direction to various activities in the organization or the other functions are based on the crucial
step.
4. Establishing planning premises: We find out whether it is cost effective, beneficial or not,
will it help the organization etc.
5. Searching alternatives: Usually there are several alternatives for plans. The planner must
find out all the possible alternatives.
6. Comparing and selecting the best among them: Comparisons must be made on the basis
of cost long range objectives, limited resources, expected payback, risk & other intangible
factors.
7. Formulating derivating course of action: Derivate plans are those plans which support
the main plan. So we have to find out what is to be required.
8. Implementation: Execution of planning is important. Assign jobs to different level of
people so that they can implement it all.

IMPORTANCE OF PLANNING:

Focus attention on objectives and research

The dues uncertainty & risk.
Provide sense of direction’
Encourages innovation & creativity
Helps in co-ordination
Basis for decentralization
Efficiency in Operations
Guides Decision Making
 Facilitate Control
Helps coping with Changing environment

PLANNING IN NEWSPAPER ORGANISATION

1. Production Planning: Planning of printing and scheduling is one of the important parts
of it. Where and how to get newspaper printed & scheduling means when it will come.
2. Editorial Planning: Planning of news content, editorial content & layout of the
newspaper.
3. Marketing Planning: The pricing of the newspaper, advertising, publicity &
promotional strategy of newspaper is also discussed in the marketing planning.
4. Financial Planning: It is related to source of money, available investors, and resources
available for the organization.
5. Human Resource Planning: Recruitment of people, motivation, training, interviewing
the people & incentives given to the people.
6. Organisation Setup Planning: Delegation of authority, decentralization, administrative
department & controlling system.

ORGANISING

According to Louis A. Allen, Organization is a process of identifying & grouping of the work to
be performed defining & delegating the responsibilities & establishing relationship for the
purpose of achieving organizational goals.

IMPORTANCE OF ORGANISING:

1. Discipline: A clear cut definition of authority enjoyed by each manager and his
jurisdiction of activity minimizes conflict and confusion about their respective powers &
privileges of
managers. There is proper use of authority. The each employee is accountable to his superior.
2. Division of work: Organization makes clear division of work. Every job is assigned to
the right person. The division of work leads to the specialization and hence increases the
efficiency.
3. Better Co-Ordination: Every organization has number of departments and sections. These
are assigned different duties for achieving the objectives. One head is appointed for the
supervision of one department.

4. Increase in efficiency: The organizational structure increases the efficiency of the

organization in the following ways:
Best possible use of resources
Economy of resources
5. Security of support: Organizational structure is a source of support security &
satisfaction to managers and employees in performing their assigned task. Unless & until an
employee has not given any rank he will feel insecure. Job security also encourages person to
take
initiatives & work with higher efficiency.
6. Avoid duplication of work: It helps in avoiding duplication of work and overlapping in
responsibility among various employees & work units, without organizing, same work is
done by many because no job specification has been made. This leads to wastage of resources
& precious time.
7. Adaptability: Adaptation means changing according to the circumstances. Business is
also dynamic in nature. It has to change itself according to market situation.
8. Better Human Relations: Human relation improve in a good organization set up. A clearly
defined work authority, responsibility and accountability will enable the individual to work
in a free atmosphere.
9. Achievement of goals: It makes employees specialist and encourages them to take
initiative and work with higher efficiency. In this way organizing helps in the achievement of
goals.

PROCESS OF ORGANISING

1. Review Plans: Organization is always related to certain objectives. Therefore, it is

essential for the management to identify the objectives before starting any activity.
2. List task: Before grouping the jobs it is important to list down the entire task.
3. Group the task into job: If the members of the group are to pool their efforts effectively,
there must be proper division of major activities. Each job should be properly classified &
grouped.
4. Grouped Jobs: The total activities of an organization may be divided into major functions
like production & purchasing etc. and each such function is further sub divided into various
jobs. The jobs then can be classified and grouped to ensure effective implementation of the
other steps.
5. Assignment of duties: After grouping the activities into various jobs they should be allotted
to the individual so that they can start working. Each individual should be given a job
according to his capabilities
6. Delegation of authority: Since so many individuals work in a same organization it is
responsibility of management to lay down structure of relationship in the organization to
carry out the smooth flow of work.

STAFFING

Staffing is referred as both line as well as a staff activity. It is referred as line activity because
like other functions such as planning, organizing, directing, controlling, staffing is also
performed by every manager. It is a staff activity because it is an important area of management
also like marketing management, financial management, we have human resource management
department also in large organisations.

IMPORTANCE OF STAFFING

1. Efficient performance of other functions: For the efficient performance of other

functions of management, staffing is its key. Since, if an organization does not have the
competent personnel, then it cannot perform the functions of management like planning,
organizing and control functions properly.
2. Effective use of technology and other resources: What is staffing and technology’s
connection? Well, it is the human factor that is instrumental in the effective utilization of the
latest technology, capital, material, etc. the management can ensure the right kinds of
personnel by performing the staffing function.
3. Optimum utilization of human resources: The wage bill of big concerns is quite high.
Also, a huge amount is spent on recruitment, selection, training, and development of employees.
To get the optimum output, the staffing function should be performed in an efficient manner.
4. Development of human capital: Another function of staffing is concerned with human
capital requirements. Since the management is required to determine in advance the
manpower requirements. Therefore, it has also to train and develop the existing personnel for
career advancement. This will meet the requirements of the company in the future.
5. The motivation of human resources: In an organization, the behaviour of individuals is
influenced by various factors which are involved such as education level, needs, socio- cultural
factors, etc. Therefore, the human aspects of the organization have become very important and
so that the workers can also be motivated by financial and non-financial
incentives in order to perform their functions properly in achieving the objectives.
6. Building higher morale: The right type of climate should be created for the workers to
contribute to the achievement of the organizational objectives. Therefore, by performing
the staffing function effectively and efficiently, the management is able to describe the
significance and importance which it attaches to the personnel working in the enterprise.

PROCESS OF STAFFING

1. Estimating manpower requirement: Staffing process begins with the estimation of

manpower requirement which means finding out number and type of employees needed by the
organisation in near future. Manpower requirement is not only to find out number of people
needed but also the type of people.

Type means what should be the qualification educational background of the people whom we
need to appoint. While assessing the type of manpower required company should also make
policy regarding number of people to be appointed from backward classes, women force,
minority, etc.

For estimating manpower Requirement Company will take following three steps:

Work load Analysis.

Workforce Analysis.

Comparing both to find out requirement.

 Workload Analysis: This requires finding number and type of employees required to perform
various jobs designed in organisational structure.
 Workforce Analysis: It means analysing existing workforce or employees already occupying
the job positions and how many of them are overburdened or under burdened.
 Comparison: After doing work load analysis and workforce analysis, the manager compares
both as excess of work load over workforce indicated under staffing and you need to appoint
more people whereas excess of workforce over work load indicated over
staffing and you need to remove or transfer some employees elsewhere.

As both overstaffing as well as understaffing are undesirable. The manager tries to find out the
manpower requirement by equating workload analysis to workforce analysis.
2. Recruitment: It refers to the process of inducing the people to apply for the job in the
organisation. After assessing the number and type of employee required, the manager tries that
more and more people should apply for the job so that the organisation can get more choice and
select better candidates.

If we can fulfill the requirement from inside the organisation through transfers and promotion,
then it is very economical and fast but generally organisation has to fulfill its requirement from
outside the organisation. To recruit people from outside the organisations contact various
placement consultants, employment exchanges, contractors etc. but the most common way to
recruit fresh talent is through advertisement. Company advertises in newspapers etc. and many
job seekers after reading the advertisement applies for the job.

3. Selection: It refers to choosing the most suitable candidate to fill the vacant job position. The
selection is done through a process, which involves test, interviews, etc. In selection number of
selected candidate is less than the number of rejected candidates that is why selection is called
negative process also. The main objectives of selection are:

To select the best among the available.

To make selected candidate realise that how seriously things are done in the organisation.

4. Placement and Orientation: Placement refers to occupying of post by the candidate for
which he is selected. After selection the employee is given appointment letter and is asked to
occupy the vacant job position.

Orientation refers to introduction of new employees to the existing employees large

organisations organise orientation programmes to familiarize the new employees with the
existing whereas in small organisations superior takes the new employees on round and
introduces him to the existing employees.

5. Training and Development: To improve the competence of employees and to motivate

them it is necessary to provide training and development opportunities for employees so that
they can reach to top and keep improving their skill. Organisations may have in house training
centres or
arrange with some institutions to provide training for their employees. Training and development
not only motivate employees but these improve efficiency of work also.

By offering the opportunities for carrier advancement to their employees organizations can
improve their effectiveness and efficiency.

In most of the large, scale organisations there is a separate human resource department which
performs staffing function but in small organisations the line managers only perform all the
functions. So small organisations in which there is no human resource department include
following steps also in the staffing process.

i.Performance Appraisal: After taking training and performing the job for sometimes there is
need that employees’ performance must be evaluated. Performance appraisal refers to
evaluating
the performance of employees against some standards. The standards are made known to
employees in advance. Superiors prepare a feedback report on the basis of performance
appraisal.

ii. Promotion and Career Planning:Promotion refers to being placed at a higher job position
with more pay, job satisfaction and responsibility. Generally on the basis of feedback report of
employees’, performance they are given promotion and opportunities for higher job positions.

iii. Compensation: It refers to price of the job. It includes pays, reward and other
incentives given to employees. It includes direct as well as indirect payments. Direct
payments such as
wages, salary, etc. Indirect payments such as medical facility, insurance, etc. The managers must
fix the right compensation on the basis of qualification, type of job, etc.

DIRECTING

While managing in the enterprises (organization) managers have to give things through people. In
order to be able to do so they have to undertake many activities like guide the people to work
under them inspire and lead them to common objectives. Directing is concerned with
instructing, guiding, supervising and inspiring people to achieve its objectives. It is the process
of telling people what to do and saying that they do it in the best possible manner.
IMPORTANCE OF DIRECTING

Plan remains mere plans unless they are put into action. In the absence of direction subordinates
will have no idea as to what to do. They will probably not be inspired to complete the job
satisfactorily Implementation of plan is thus largely the concern of directing functions. As a
function of management directing is useful in many ways:

 It guides and helps the subordinates to complete the given task properly and as per
schedule.
 It provides the necessary motivation to subordinate to complete the work satisfactorily
and strive to do those best.
 It helps in maintaining discipline & rewarding those who do well.
 Directing involves supervision which is essential to make sure that work is performing
according to the orders and instructions.
 Different people perform different activities in the organization. All the activities are
interrelated. In order to coordinate activities carried out in different parts and to ensure that they
are performed well, directing is important. It thus helps to integrate the various
activities and so also the individual goals with organizational goals.
 Directing involves leadership that essentially helps in creating appropriate work
environment and built up team spirit.

CONTROLLING

 Control maintains the equilibrium between ends and means, output and efforts.
- Peter Ducker
 Control is checking event performance against pre-determined standards contained in the plans
with a view to ensuring adequate process & satisfactory performance.
- EFL Breads.

IMPORTANCE OF CONTROLLING

The following are some factors contributing to the importance of controlling:

1. Decentralization of authority: Since managers at every level of an organization have to

 exercise control, the controlling process leads to decentralization. This, in turn, enables
middle and lower level managers to have some autonomy in making decisions. An organization
that distributes authority at every level always works smoothly and efficiently.
2. Increasing managerial abilities: By enabling all managers to possess the autonomy to
make decisions, controlling enhances their managerial abilities. With these skills, managers can
further their organization’s goals by adapting to diverse situations and problems.
Furthermore, this also helps managers grow and develop at an individual level by giving them
new experiences.
3. Using resources effectively: The most important function of controlling is to compare actual
performances with expected results. This, in turn, helps managers understand where they are
lacking and how they can improve their performances. Using this knowledge, managers can
use all available resources optimally and prevent their wastage.
4. Facilitating coordination: In every business organization, managers and employees
always have to coordinate and work with each other collectively. Controlling improves this
coordination by basically demarcating all activities and efforts into fixed boundaries. It brings
together all the resources of an organization and enables its personnel to work together with
unified efforts.
5. Structuring human behaviour: Since all organizations have to depend on humans
for functioning, they need to regulate human behaviour of their employees. Controlling
rationalizes this human behaviour and prevents employees from behaving arbitrarily and
badly. It basically does so by providing for sanctions in case employees do not prescribe to
expected standards of behaviour. For example, managers often take disciplinary action against
employees who take unauthorized leaves.
6. Achieving efficiency and effectiveness: A good control system can always greatly boost
an organization’s efficiency and effectiveness. It generally does this by identifying deficiencies
in an organization’s functioning and suggesting improvement measures. Managers use control to
achieve their targets in this manner.

PROCESS OF CONTROLLING
1. Establishing Performance Standard: Standards are created when objectives are set
during the planning process. A standard is any guideline establish as the basis for
measurement. It is precise explicit statement of expected result from a product, service, machine,
individual or organizational unit. It is usually express numerically and is set for quality, quantity
and time.
 2. Measure Actual Performance: Supervisors collect data to measure actual
performance to determine variations from standards. Written data might include time cards &
sales ticket, personal observation, statistical reports. Oral reports and written reports can be
used to measure performance.
3. Compare Measure Performance Against Established Standards: Comparing results
with standards determines variations. Some variation can be expected in all activities and
the range of variation/ the acceptable variations has to be established.
4. Take Corrective Actions: The supervisor must find the cause of deviation from
standard. Then he or she takes action to remove or minimizes the cause. The supervisor can opt
to take basic corrective actions which would determine how & why performance
has deviated & collect the source of deviation.
5. Human response to control: Though control should aimed at satisfying the need of the
member of the organization. It is often taken otherwise by them. This may be either
because of the adverse real impact of control on them or because of misperception of the impact
of control.

MANAGEMENT: RESPONSIBILITY, AUTHORITY AND

ACCOUNTABILITY

An organization stands on three pillars of strength. Responsibility, Authority, Accountability.

Unless you are literally a one-man army, you have to rely on others down the line to deliver
results. The best organizational heads know the benefits of delegation. They pick the right
person for the job and then resist the temptation to micro-manage. Yes, the CEO can possibly do
the
task better (that’s what made him or her the CEO in the first place) but it’s important to let the
other person do the job. Your job as CEO is to encourage and provide support. Once the person
you have delegated the task to knows he or she has that trust and support, a successful outcome
can be expected.

The three pillars of delegation:

RESPONSIBILITY
Responsibility indicates the duty assigned to a person in an organization. It refers to the
obligation of a subordinate to perform the duty as required by his superior. It is a continuing
 obligation.

Definitions:

 According to Webster- “Responsibility is that for which one is responsible on

accountable”.
 According to Knootz and O’Donnell- “Responsibility may be defined as the obligation of sub-
ordinate to perform assigned and implied duties”.
 According to Hicks- “Responsibility is the obligation to do something”.
According to R.C. Davis, – “Responsibility is the obligation of an individual to perform assigned
duties to the best of his ability under the direction of his executive leader”.

Thus, responsibility has these elements i.e., it is applied to a sub•ordinate, it essence is obligation
to perform work and it arises out of superior and sub-ordinate relationship.

Features:

It can be assigned to human beings only not to non-living things such as machines.

It arises out of superior and sub-ordinate relationships.

It may be a continuing obligation on confined to the performance of a single person.

It may be defined in terms of functions or targets or goals.

Essence of responsibility is to perform duty assigned to him.

It is a derivative of authority.

It is an absolute and cannot be delegated.

It flows upward (i.e., sub-ordinate is responsible to his superior).

Accountability arises out of responsibility and the two go together.

Forms of Responsibility:
This responsibility can be of two types:

(i) Operating Responsibility: It is the obligation of an employee to carry out the assigned tasks.

(ii) Ultimate Responsibility: It is the final obligation of the manager who ensures that the task
is done efficiently by the employees.
AUTHORITY

No organization can survive without authority. The defence forces are an excellent example of
how authority can be given and not questioned by subordinates. Authority is the right or power
assigned to an executive in order to achieve an organization’s objectives. This authority allows
for decision-making, enables the person in charge to give orders and instructions and expect
them to be obeyed. It sometimes happens that the person given the authority finds that his wings
are being clipped by a superior who undermines his authority. If subordinates realize that the
person in charge can be over-ruled they will not give immediate and unquestioned obedience.

Definitions:

 According to Koontz and O’Donnell- “Authority is the power to command others to act or to
act in a manner deemed by the possessor of the authority to further enterprise or
departmental purpose”.
 According to Henry Fayol, “Authority is the right to give orders and power to exact
obedience”.
 According to Herbert G. Hicks “Authority is the right that a manager has to request a sub-
ordinate to do something to accomplish organization goals”.
 Davis and Filley say “Authority consists principally of the rights to decide and
command”.
 According to Simon, “Authority may be defined as the power to make decisions which
guide the actions of others”.

Features of Authority:

On the basis of above definitions, the following features of authority can be identified:
It is the power to make the decisions and to see that they are carried out in the right time in the
right way.

It is the relationship between two individuals i.e., superior and sub-ordinate.

Authority is exercised to achieve organizational goals.

It is a legitimate right and given to position i.e., formal.

Authority is key to the managerial job.

Authority can be delegated.

 The exercise of authority is always subjective.

ACCOUNTABILITY

In an organization a person given a task is held accountable and is obliged to complete the job
assigned to him or her as per expectations. That person is responsible for the actions of the
people or group under his or her supervision even if there are several layers down the hierarchy.
The person accountable has an obligation to report formally about the work done to his superiors,
explain any factors responsible for non-performance and take full responsibility for the actions
taken.

Features:

It is in fact the legal responsibility.

It can neither be shared nor delegated.

It always to be assigned duties only.

It always from downward to upward.

It is different from responsibility.

It is unitary in nature i.e., a sub-ordinate under the principle of unity of command is
accountable only to one officer who has delegated authority to him. It avoids confusion and
conflicts.

These three elements – Responsibility, Authority and Accountability – are inter-related. In the
process of delegation, the superior transfers his duties or responsibilities to his subordinate and
also gives the necessary authority for performing the required task. It is the ideal way to
delegate. You can only hold people responsible when they have been given enough authority to
do the job well without any interference from their superiors.
LEADERSHIP: IMPORTANCE, NEEDS AND TYPES

LEADERSHIP

Leadership is a process by which an executive can direct, guide and influence the behavior and
work of others towards accomplishment of specific goals in a given situation. Leadership is the
ability of a manager to induce 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.”

Characteristics of Leadership
 It is a inter-personal process in which a manager is into influencing and guiding
workers towards attainment of goals.
 It denotes a few qualities to be present in a person which includes intelligence,
maturity and personality.
 It is a group process. It involves two or more people interacting with each other.
 A leader is involved in shaping and moulding the behaviour of the group towards
accomplishment of organizational goals.
 Leadership is situation bound. There is no best style of leadership. It all depends upon
tackling with the situations.
 Leadership is an influence relationship among leaders and followers who intend real changes
and reflect their mutual purpose.

The concept of leadership has been quite visible in areas such as military operations, politics, and
management. Within work organization, leadership is no longer exclusively spontaneous or
emergent. Leadership can be assigned as a part of the requirement of exclusive jobs of
individuals, teams or it can be part of the expectations that members of a role set have from
individual teams. Leadership as a managerial function is no longer limited to the top officers. To
become a great leader, check out this business speaker.
IMPORTANCE OF LEADERSHIP

Leadership is an important function of management which helps to maximize efficiency and to

achieve organizational goals. The following points justify the importance of leadership in a
concern.

 Initiates action- Leader is a person who starts the work by communicating the policies and
plans to the subordinates from where the work actually starts.
 Motivation- A leader proves to be playing an incentive role in the concern’s working.
He motivates the employees with economic and non-economic rewards and thereby gets the
work from the subordinates.

 Providing guidance- A leader has to not only supervise but also play a guiding role for the
subordinates. Guidance here means instructing the subordinates the way they
have to perform their work effectively and efficiently.
 Creating confidence- Confidence is an important factor which can be achieved through
expressing the work efforts to the subordinates, explaining them clearly their role and giving
them guidelines to achieve the goals effectively. It is also important to
hear the employees with regards to their complaints and problems.
 Building morale- Morale denotes willing co-operation of the employees towards their work
and getting them into confidence and winning their trust. A leader can be a
morale booster by achieving full co-operation so that they perform with best of their abilities as
they work to achieve goals.

 Builds work environment- Management is getting things done from people. An efficient
work environment helps in sound and stable growth. Therefore, human
relations should be kept into mind by a leader. He should have personal contacts with employees
and should listen to their problems and solve them. He should treat employees on humanitarian
terms.
 Co-ordination- Co-ordination can be achieved through reconciling personal interests with
organizational goals. This synchronization can be achieved through proper and
effective co-ordination which should be primary motive of a leader.
TYPES OF LEADERSHIP

There are the different types of leadership styles that exist in work environments and advantages
and disadvantages exist in each leadership style. Some companies offer same leadership style
while others follow different leadership styles depending upon what task to perform. Its only the
culture and goals of an organization that determines which type of leadership suits to the firm.

There are normally three styles of leadership:

Authoritarian or autocratic
Participative or democratic
Delegative or Free Reign

 Autocratic Leadership: Autocratic leadership allows autocratic leader to take the ultimate
control of taking decisions without consulting others. An autocratic leader possess high level
of power and authority and imposes its will on its employees. This
type of leadership proves to be useful where close level of supervision is required.
Creative employees morale goes down because their output is not given importance and is often
detest by employees. Since they are unable to take any part in decision making, this results in
job satisfaction and staff turnover.
 Participative Leadership: Also known as democratic leadership style, participative
leadership consults employees and seriously considers their ideas when making
decisions. When a company makes changes within the organization, the participative leadership
style helps employees accept changes easily because they had given a big role in the process.
Participative Leadership may be required for tasks that are non routine or unstructured, where
relationships are non-authoritarian and the subordinate‘s locus of control is internal.

Delegative free reign: In this style, the leader allows the employees to make the decision.
However, the leader is still responsible for the decisions that are made. This is used when
employees are able to analyze the situation and determine what needs to be done and how to do
it. You cannot do everything! You must set priorities and delegate certain tasks. This is not a
style to use so that you can blame others when things go wrong, rather this is a style to be used
when you have the full trust and confidence in the people below you. Do not be afraid to use it,
however, use it wisely!
A good leader uses all three styles, depending on what forces are involved between the
followers, the leader, and the situation.

Forces that influence the style to be used included:

 How much time is available?

 Are relationships based on respect and trust or on disrespect?
 Who has the information - you, your employees, or both?
 How well your employees are trained and how well you know the task.
 Internal conflicts.
 Stress levels.
 Type of task. Is it structured, unstructured, complicated, or simple?
 Laws or established procedures such or training plans.