UNIT-I

INTRODUCTION TO MANAGEMENT

INTRODUCTION TO MANAGEMENT:
When human being started group activities for the attainment of same common objectives
whenever a group is formed and a group activity is organized to achieve certain common
objectives, management is needed to direct, co-ordinate and integrate the individual activities
of a group and secure teams work to accomplish organizational objectives. The objectives of all
business are attained by utilizing the scare resources like men, materials, machines, money etc.

In process of management, a manager uses human skills, material resources and

scientific methods to perform all the activities leading to the achievement of goals.

DEFINITION:
Management is the art of getting things done through and with people in formally organized
groups.
- Harold Koontz.
To manage is to forecast and plan, to organize, to command, to co-ordinate and to control.

- Henri Fayol.
Management is an operational process that can be dissected into five essential managerial
functions. They are: planning, organizing, staffing, directing and leading, and controlling.
- Koontz and ODonnel

NATURE OF MANAGEMENT:
The study and application of management techniques in managing the affairs of the
organization have changed its nature over the period of time.

Management is a social process: Social process refers to the series of activities that are
performed in the society. These activities are carried out by administrators, politicians,
economists, housewives, parents, doctors, lawyers and so on. Management helps everyone to
carry out the activities in the society effectively.

Management also denotes a body of people involved in decision making: When an institution
is very well run, it is said that the management of that institution takes personal interest in the
institution. Here, management denotes a body of people involved in decision making.

Management is omnipresent and universal: Successful organizations show that management

principles apply to every kind of organization and also to every level in it. Hence it is called
omnipresent and universal.

Management is complex: Management functions are complex. They call for fairly professional
approach to manage a given situation or organization.
Management is an inexact science: Management principles are not like those in science or
Maths where things are fairly clear and exact. Hence, they cannot be generalized precisely.

Management is situational in nature: The same style of management cannot work for the same
situation every time. The change in the situation may call for change in the style of functioning
of the manager.

Management is a Science and also an Art: There is a controversy whether management is

science or art. However, management is both a science and art as it satisfies all the
characteristics of art and science.

Management is a profession: Profession refers to a branch of advanced learning such as

engineering or medicine. The managers are professional in their approach and governed by code
of ethics.

IMPORTANCE OF MANAGEMENT:
Management is viewed as a very significant tool for the following reasons:

It facilitates the achievement of goals through limited resources.

It ensures smooth sailing in case of difficulties.
It ensures continuity in the organization
It ensures economy and efficiency
It focuses on group efforts.
It is key to economic growth.
FUNCTIONS OF MANAGEMENT:

There are various functions of management. Most of the important functions of

managements are given by Henry Fayol, Luther Gullick, Koontz. According to Henry Fayol, the
functions of management include planning, organizing, commanding, controlling. Luther Gullick
defines functions of management as planning organizing, staffing, directing, coordinating,
reporting, and budgeting. But the widely accepted theory of functions of management was
given by Koontz and ODonnell. It includes planning, organizing, staffing, directing & controlling.

Planning

Controlling Organising

Directing Staffing
 1.Planning:- Planning is nothing but deciding in advance about what should be done in future.
Planning involves essentially four stages:

(a) Identifying the goal to be achieved.

(b) Exploring the courses of action available for implementation
(c) Evaluating each course of action on merits, and
(d) Finally selecting best course for implementation.
Elements of planning are Forecasts, objectives, policies, strategies, programmes,
procedures, schedules, Budgets.

2. Organizing:-Organizing is bringing together all resources and then developing productive

relationship among those resources. The characteristics of organizing are as follows.
1. It divides the total work into different departments for better performance.
2. Delegation of authority by superior to his subordinates.
3. Identification of activities to be performed

3. Staffing:-Every organization must employ right kind of people to do various jobs in the
organization within the right time is said to be called as staffing. It is concerned with
performance of following activities.
1. Recruitment and selection of employees.
2. Training and development.
3. Wage and salary administration.
4. Performance appraisal.
5. Employee transfer, promotion and termination.

4. Directing:-Directing is a process of issuing orders and instructions to guide and teach the
subordinates the proper methods of work and ensuring that they perform their job as planned.
The manager has to perform following functions while directing:
1. Leading
2. Motivating
3. Communicating
4. Coordinating

5. Coordinating:-Coordination is essential to channelize the activities of various individuals in the

organization for achievement of common goals. It creates team spirit. It can be achieved by
the following ways.
1. Planning
2. Rules & procedure
3. Proper use of Hierarchy.
4. Effective communication
5. Creation of separate departments.
6. Controlling:-The Controlling is the process which enables the management to get its policies
implemented and take corrective actions if performance is not according to pre-determined
standards. Process of controlling involves
1. Establishment of standard.
2. Measurement of actual performance.
 3. Making a comparison between actual performance & standard performance.
4. Finding out deviation & taking collective actions.

MANAGEMENT AS A SCIENCE
Science is a systematic body of knowledge relating to a specific field of study that contains
general facts which explains a phenomenon. It establishes cause and effect relationship
between two or more variables and underlines the principles governing their relationship. These
principles are developed through scientific method of observation and verification through
testing.

Science is characterized by following main features:

1. Universally accepted principles Scientific principles represents basic truth about a particular
field of enquiry. These principles may be applied in all situations, at all time & at all places. E.g.
law of gravitation which can be applied in all countries irrespective of the time.

Management also contains some fundamental principles which can be applied universally like
the Principle of Unity of Command i.e. one man, one boss. This principle is applicable to all type
of organization business or non business.

2. Experimentation & Observation Scientific principles are derived through scientific

investigation & researching i.e. they are based on logic.

E.g. the principle that earth goes round the sun has been scientifically proved. Management
principles are also based on scientific enquiry & observation and not only on the opinion of
Henry Fayol. They have been developed through experiments & practical experiences of large
no. of managers.

E.g. it is observed that fair remuneration to personal helps in creating a satisfied work force.

3. Cause & Effect Relationship Principles of science lay down cause and effect relationship
between various variables.

E.g. when metals are heated, they are expanded. The cause is heating & result is expansion.

The same is true for management; therefore it also establishes cause and effect relationship.

E.g. lack of parity (balance) between authority & responsibility will lead to ineffectiveness. If
you know the cause i.e. lack of balance, the effect can be ascertained easily i.e. ineffectiveness.
Similarly if workers are given bonuses, fair wages they will work hard but when not treated in
fair and just manner, reduces productivity of organization.

4. Test of Validity & Predictability Validity of scientific principles can be tested at any time or
any number of times i.e. they stand the time of test. Each time these tests will give same result.
Moreover future events can be predicted with reasonable accuracy by using scientific principles.

E.g. H2 & O2 will always give H2O.

Principles of management can also be tested for validity.

E.g. principle of unity of command can be tested by comparing two persons one having single
boss and one having 2 bosses. The performance of 1st person will be better than 2nd.

It cannot be denied that management has a systematic body of knowledge but it is not as exact
as that of other physical sciences like biology, physics, and chemistry etc. The main reason for
the inexactness of science of management is that it deals with human beings and it is very
difficult to predict their behaviour accurately. Since it is a social process, therefore it falls in the
area of social sciences. It is a flexible science & that is why its theories and principles may
produce different results at different times and therefore it is a behaviour science.

MANAGEMENT AS AN ART
Art means application of knowledge & skill to get the desired results. An art may be defined as
personalized application of general theoretical principles for achieving best possible results. Art
has the following characters

Practical Knowledge: Every art requires practical knowledge therefore learning of theory is not
sufficient. It is very important to know practical application of theoretical principles.

E.g. to become a good painter, the person not only should know about the different colour and
brushes but different designs, dimensions, situations etc to use them appropriately. A manager
can never be successful just by obtaining degree or diploma in management; he must have also
known how to apply various principles in real situations, by functioning as a manager.

Personal Skill: Although theoretical base may be same for every artist, but each one has his own
style and approach towards his job. That is why the level of success and quality of performance
differs from one person to another.

E.g. There are several qualified painters but M.F. Hussain is recognized for his style. Similarly
management as an art is also personalized. Every manager has his own way of managing things
based on his knowledge, experience and personality, that is why some managers are known as
good managers (like Aditya Birla, Rahul Bajaj).

Creativity: Every artist has an element of creativity in line. That is why he aims at producing
something that has never existed before which requires combination of intelligence &
imagination. Management is also creative in nature like any other art. It combines human and
non-human resources in an useful way so as to achieve desired results. It tries to produce sweet
music by combining chords in an efficient manner.

Perfection through practice: Practice makes a man perfect. Every artist becomes more and
more proficient through constant practice. Similarly managers learn through an art of trial and
error initially but application of management principles over the years makes them perfect in
the job of managing.

Goal-Oriented: Every art is result oriented as it seeks to achieve concrete results. In the same
manner, management is also directed towards accomplishment of pre-determined goals.
Managers use various resources like men, money, material, machinery & methods to help in the
growth of an organization.
 Thus, we can say that management is an art therefore it requires application of certain
principles rather it is an art of highest order because it deals with shaping the attitude and
behaviour of people at work towards these desired goals

Management as both Science and Art

Management is both an art and a science. The above mentioned points clearly reveal that
management combines features of both science as well as art. It is considered as a science
because it has an organized body of knowledge which contains certain universal truth. It is
called an art because managing requires certain skills which are personal possessions of
managers. Science provides the knowledge & art deals with the application of knowledge and
skills. To conclude, we can say that science is the root and art is the fruit.

MANAGEMENT AS A PROFESSION:
Over a large few decades, factors such as growing size of business unit, separation of ownership
from management, growing competition etc have led to an increased demand for professionally
qualified managers. The task of manager has been quite specialized. As a result of these
developments the management has reached a stage where everything is to be managed
professionally.

A profession may be defined as an occupation that requires specialized knowledge and intensive
academic preparations to which entry is regulated by a representative body. The essentials of a
profession are:

1. Specialized Knowledge - A profession must have a systematic body of knowledge that can be
used for development of professionals. Every professional must make deliberate efforts to
acquire expertise in the principles and techniques. Similarly a manager must have devotion
and involvement to acquire expertise in the science of management.
2. Formal Education & Training - There are no. of institutes and universities to impart
education & training for a profession. No one can practice a profession without going
through a prescribed course. Many institutes of management have been set up for
imparting education and training. For example, a CA cannot audit the A/Cs unless he has
acquired a degree or diploma for the same but no minimum qualifications and a course of
study has been prescribed for managers by law. For example, MBA may be preferred but
not necessary.
3. Social Obligations - Profession is a source of livelihood but professionals are primarily
motivated by the desire to serve the society. Their actions are influenced by social norms
and values. Similarly a manager is responsible not only to its owners but also to the society
and therefore he is expected to provide quality goods at reasonable prices to the society.
4. Code of Conduct - Members of a profession have to abide by a code of conduct which
contains certain rules and regulations, norms of honesty, integrity and special ethics. A code
of conduct is enforced by a representative association to ensure self discipline among its
members. Any member violating the code of conduct can be punished and his membership
can be withdrawn. The AIMA has prescribed a code of conduct for managers but it has no
right to take legal action against any manager who violates it.
5. Representative Association - For the regulation of profession, existance of a representative
body is a must. For example, an institute of Charted Accountants of India establishes and
administers standards of competence for the auditors but the AIMA however does not have
any statuary powers to regulate the activities of managers.

UNIVERSALITY OF MANAGEMENT:
Some scholars opine that management principles and processes have universal application.
They feel that managerial principles can be applied in all types of business organisations and in
every country. There are different views of management thinkers about universality of
management. Authors like Henry Fayol, Taylor, James Lundy, Louis Allen, Dalton F. Mc Farland
and Koontz and O Donnell are of the view that management has universal application. But
there are others who do not subscribe to the view of universality of management. They include
Joan Woodward, Ernest Dale, Peter Drucker, W. Oberg.

1. Management Process is Universal:

The fundamental functions of management like planning, organising, staffing, leading and
controlling are basic and are performed by every manager in all organisations. The management
process is similar among managers. In the words of Fayol, There is a universal science of
management applicable alike to commerce, industry, politics, religion, war or philanthropy.

2. Management Knowledge is Universal: Though the culture varies from one country to other,
though the objectives change from organization to other, though the philosophies change; the
same management knowledge is applicable everywhere. Hence, Management Knowledge is
Universal.

3. Management Skills and Principles are Transferable:

Management skills and principles are transferable from one person to another, from one
organization to another, from one country to another. When skills and principles can be
transferred then it has universal applicability. Managers can be developed through education
and training. This knowledge can be acquired by any one and anywhere so it is not related to
particular caste, creed or country. All this is possible only if management is universal in nature.

ADMINISTRATIVE MANAGEMENT THEORY (HENRI FAYOL AND OTHERS):

Henri Fayol is called as father of Modern Management.

He established the pattern of management and the pyramidal form of organization. He pointed
out that technical ability is more dominating on the lower level of management, managerial
ability is more important on the higher level of management.

Henri Fayol analyzed the process of management and divided the activities of an industrial
undertaking into six groups: Technical activities, Commercial activities, financial activities,
Security activities, Accounting activities, Managerial activities.
Henry Fayol developed 14 basic principles of management. They are

1. Division of work:-By this we mean that the total work done is divided into small parts
according to the individual talents and skills. This is referred to as work specialization.
2. Authority and responsibility:-Authority is nothing but official right of the manager to issue
orders where as responsibilities is an obligation to perform the work effectively.
3. Discipline:- Having proper respect for the rules and regulations of the organization is called
discipline. This principle of management signifies that every employee of an organization
should stick on to the rules and regulations of the organization.
4. Unity of command:-According to this principle, an employee should receive orders from
one superior only. If at all there are two superiors in an organization, the employee will find
difficulty in reporting to the managers. Therefore, unity of command should be followed.
5. Unity of direction:-It means that the efforts of all the members of a department must be
directed towards the achievement of organizational goals.
6. Subordination of individual interest to common or general interest:-This principle of
management suggests that individual & their interest are not valid in an organization.
Always employees should work in the contest of organizational interest.
7. Remuneration:-It means payment of the employees. Henry Fayol used that payment to
the employees (remuneration) must be there and it should give maximum satisfaction
that promotes work culture.
8. Effective Centralization: - Centralization means concentration of authority in the hands of
few, i.e. top management. Everything which goes to increase the importance of
subordinates role is decentralization. A balance must be maintained between
centralization and decentralization of authority to attain best results.
9. Scalar chain:-It is the representation of line of superiors ranging from highest to lowest
level in the organization. It means communication should follow the prescribed line of
authority.
10. Order:-Fayol talks about two types of orders physical order & social order. Physical order
means a proper place for everyone and everything in its right place. Hence, social order
means a place for everyone and every one in his appointed place.
11. Equity:-The principle of equity ensures fairness, kindness and justice. In the treatment of
employees, by their managers. It means managers should be impartial towards their
subordinates.
12. Stability of tenure:-It means that an employee shall not be shifted unnecessary from one
job to another. He should have got fixed schedule of this job.
13. Initiative:-The freedom to think and act in an organization will lead to higher level of job
satisfaction.
14. Esprit-de-corps:- Organization should encourage spirit and cooperation amongst the
members of various departments within the organization, such a movement will bring
good levels of performance in a organization.

ELTON MAYOS HUMAN RELATIONS MOVEMENT:

The human relations movement was founded by sociologist George Elton Mayo in the 1930s
following a series of experiments known as the Hawthorne studies, which focused on exploring
the link between employee satisfaction/wellbeing and workplace productivity. Elton Mayo
generally recognized as father of human relations approach.

In 1927, researchers were trying to determine the optimal amount of lighting, temperature, and
humidity for assembling electronic components at Western Electric's Hawthorne plant. The
results showed that lighting had no consistent effect on production. Researchers were
frustrated to discover that increasing light increased output, but reducing light also increased
output. The common factor, it seemed, was that something in the work environment was
changed, and that positive effects were then observed. An analysis of this showed that workers
were highly motivated more for the importance given to them.

Essentially the Hawthorne studies concluded that:

When employers take an interest in workers and make decisions based on their natural
needs and psychological makeup, productivity increases.
They also found that people work best when organized into groups.
When they can have effective two-way communication with their leaders, and when
leaders communicate and share information freely as part of an overall cohesive
decision-making process, it leads to employee motivation.
Changes in the work environment had little long-term effect upon worker productivity.
Recognizing the emotions of workers could enhance the productivity and physical well
being of the employees.
The sense of belongingness and effective management were the two secrets unfolded
by the Hawthorne experiments.
Need for status and belongingness to a group were viewed as more important than
monetary incentives or good physical working conditions.

The human relations movement is seen as the precursor of the modern human resources
function. Before the human relations movement, workers were typically seen as replaceable
cogs in organizational systems that put the ultimate value on higher output.

SYSTEMS APPROACH TO MANAGEMENT:

Modern management is the systems approach. Here the organization is viewed as a system.
Every department is considered as a sub-system, it is also possible that every department can be
viewed as a system and every section in the department can be viewed as a sub-system, system
approach helps to study the basic feature and functions of the organization its minutest details.

The collection of interrelated parts called as sub-system which constitutes one whole
unit. System approach facilitates the study of each of these parts in detail to have a close
understanding of the whole system.

Ex: Every part of the study such as the eyes, brain, and heart can also be viewed as a sub-
system, a study of each of the parts of the body in necessary to understand the whole body.

From the systems point of view, the functions of management are:

(a) Interlinked
 (b) Interdependent
(c) Complex and intertwined that each function of management can be found in other
functions.
Management functions are interlinked:

Organising

Planning Staffing

controlling Directing

The above figure shows how the functions of management are linked to each other. These
functions together constitute the management process or cycle.

Management functions are Interdependent:

Planning Feed Back

Organising

Managerial Problem Staffing Efforts Solution

Directing

Controlling

The above figure explains the feature of interdependence among the functions of
management. In the process of control, if there is any deviation from the plans or
targets, it can be corrected by verifying each of the earlier functions and identifying
where things could have gone wrong.

Management functions are Complex:

P O S D C
P X
O X
S X
D X
C X
In the figure, P(Planning), O(organising), S(Staffing), D(directing), C(Controlling)
represent functions of manager. It shows that in the planning function (shown
horizontally across or vertically down), there are other functions of management such as
organising, staffing, directing, controlling. The letter X shows overlapping area. Hence in
each of the management functions can be found in the other functions also.

CONTINGENCY THEORY:
A contingency theory is an organizational theory that claims that there is no best way to
organize a corporation, to lead a company, or to make decisions. Instead, the optimal course of
action is contingent (dependent) upon the internal and external situation.

Definition
A contingency approach to management is based on the theory that management effectiveness
is contingent, or dependent, upon the interplay between the application of management
behaviors and specific situations. In other words, the way you manage should change depending
on the circumstances. One size does not fit all.

Theory:

This approach is also called situational approach. This approach was developed by managers,
consultants and researchers who tried to apply the concepts of the major schools to real life
situations. They sought to know the causes for the success of methods in one situation and
failure in another situation. Advocates of this approach answered that results differ because
situations differ, as such a technique that works effectively in one situation will not necessarily
work in all cases. Hence managers have to identify the technique which will best contribute to
the attainment of the managements goal in particular situation, under particular circumstances
and at a particular time.

MOTIVATION: The process of stimulating the employees to perform more effectively using
their abilities and full potential is called motivation.

MONETARY AND NON MONETARY INCENTIVES TO MOTIVATE WORK TEAMS:

Incentive is an act or promise for greater action. It is also called as a stimulus to greater action.
Incentives are something which are given in addition to wagers. It means additional
remuneration or benefit to an employee in recognition of achievement or better work.
Incentives provide a spur or zeal in the employees for better performance. It is a natural thing
that nobody acts without a purpose behind. Therefore, a hope for a reward is a powerful
incentive to motivate employees. Besides monetary incentive, there are some other stimuli
which can drive a person to better. This will include job satisfaction, job security, job promotion,
and pride for accomplishment. Therefore, incentives really can sometimes work to accomplish
the goals of a concern. The need of incentives can be many:-

1. To increase productivity,
2. To drive or arouse a stimulus work,
 3. To enhance commitment in work performance,
4. To psychologically satisfy a person which leads to job satisfaction,
5. To shape the behavior or outlook of subordinate towards work,
6. To inculcate zeal and enthusiasm towards work,
7. To get the maximum of their capabilities so that they are exploited and utilized
maximally.

Therefore, management has to offer the following two categories of incentives to motivate
employees:

1. Monetary incentives- Those incentives which satisfy the subordinates by providing

them rewards in terms of rupees. Money has been recognized as a chief source of
satisfying the needs of people. Money is also helpful to satisfy the social needs by
possessing various material items. Therefore, money not only satisfies psychological
needs but also the security and social needs. Therefore, in many factories, various wage
plans and bonus schemes are introduced to motivate and stimulate the people to work.
2. Non-monetary incentives- Besides the monetary incentives, there are certain non-
financial incentives which can satisfy the ego and self- actualization needs of employees.
The incentives which cannot be measured in terms of money are under the category of
Non- monetary incentives. Whenever a manager has to satisfy the psychological
needs of the subordinates, he makes use of non-financial incentives. Non- financial
incentives can be of the following types:-
a. Security of service- Job security is an incentive which provides great motivation
to employees. If his job is secured, he will put maximum efforts to achieve the
objectives of the enterprise. This also helps since he is very far off from mental
tension and he can give his best to the enterprise.
b. Praise or recognition- The praise or recognition is another non- financial
incentive which satisfies the ego needs of the employees. Sometimes praise
becomes more effective than any other incentive. The employees will respond
more to praise and try to give the best of their abilities to a concern.
c. Suggestion scheme- The organization should look forward to taking suggestions
and inviting suggestion schemes from the subordinates. This inculcates a spirit
of participation in the employees. This can be done by publishing various articles
written by employees to improve the work environment which can be published
in various magazines of the company. This also is helpful to motivate the
employees to feel important and they can also be in search for innovative
methods which can be applied for better work methods. This ultimately helps in
growing a concern and adapting new methods of operations.
d. Job enrichment- Job enrichment is another non- monetary incentive in which
the job of a worker can be enriched. This can be done by increasing his
responsibilities, giving him an important designation, increasing the content and
nature of the work. This way efficient worker can get challenging jobs in which
they can prove their worth. This also helps in the greatest motivation of the
efficient employees.
 e. Promotion opportunities- Promotion is an effective tool to increase the spirit to
work in a concern. If the employees are provided opportunities for the
advancement and growth, they feel satisfied and contented and they become
more committed to the organization.

The above non-financial tools can be framed effectively by giving due concentration to
the role of employees. A combination of financial and non- financial incentives help
together in bringing motivation and zeal to work in a concern.

LEADERSHIP AND LEADERSHIP STYLES:

Leader:
One who leads a given group or team of people is called leader. If you can influence
people to perform better in a given organizational setting, that means you are a leader.

Leadership is ability to influence people to achieve the given goals in an organization.

A true leader is one who shares success with followers and absorbs all failures.

QUALITIES OF A SUCCESSFUL LEADER:

The leader is characterized by his vision, ability to inspire followers, communication skills, and
personality characteristics such as charisma, appearance maneuvering skills, high energy levels,
adaptability, aggressiveness, enthusiasm, self-confidence, initiative and a strong capacity to
convert the unfavourable situation to a favourable one for the benefit of the organization.
Further a manager is expected to have the following qualities:

o Self-assessment: Effective leaders periodically take stock of their personal strengths and
shortcomings. They ask: What do I like to do? What am I really good at? What are my areas
of weakness, and what do I dislike doing?

Knowing your areas of weakness does not make you weak; on the contrary, it allows you to
delegate to others who have those abilities, in order to achieve the common goal. Rather than
clinging to the false belief that they can do it all, great leaders hire people who complement,
rather than supplement, their skills. Working on your areas of weaknesses will improve your
leadership ability and recognizing them makes you more human.
o Sharp perception: If you really want to know what people think, just ask them. You may receive
feedback that youre not listening or showing appreciation as well as you could be. If youve
established an environment of honest and open communication, you should be able to ask
about your good qualities and the areas you need to improve on. Your staff will appreciate your
effort.
o Responsive to the groups needs: Being perceptive can also help a leader be more effective in
knowing the needs of the team. Some teams value trust over creativity; others prefer a clear
communicator to a great organizer. Building a strong team is easier when you know the values
and goals of each individual, as well as what they need from you as their leader.
o Knowing the organization: Effective leaders know the organizations overall purpose and goals,
and the agreed-upon strategies to achieve these goals; they also know how their team fits into
the big picture, and the part they play in helping the organization grow and thrive. Full
knowledge of your organization inside and out is vital to becoming an effective leader.
o Communication Good communication skills are required at every level of business, but leaders
must possess outstanding communication skills. Luckily, this is a skill that can be learned.
o Motivating teams Inspiring others is the mark of an effective leader. Motivation is best done
by example and guidance, not by issuing commands.
o Team building Putting together strong teams that work well is another trait of great leaders.
The opposite is also true: if a team is weak and dysfunctional, it is generally a failure in
leadership.
o Risk taking You can learn how to assess risk and run scenarios that will help you make better
decisions. Great leaders take the right risks at the right time.
o Vision and goal setting A team depends on its leader to tell them where they are going, why
they are going, and how theyre going to get there. People are more motivated when a leader
articulates his or her vision for a project or for the organization, along with the steps or goals
needed to achieve it.

Types of Leadership Styles:

Leader has to ensure that people under his guidance are comfortable and their good work is
recognized.

A good leader has to adopt such a style of working that takes care of people around
him. There are also some leader who do not care for people and who care more for the task
completion.

Autocratic leadership: Here, leader command the followers and expects compliance from them
for all the instructions given, leaders are more dogmatic and positive. They lead by his ability to
withhold or give rewards or punishments. Here, no suggestions from the followers are
entertained and almost to-down approach is seen. They direct others. They do not allow any
participation.

Democratic leadership: Here leaders consult subordinates and involve them in decision
making. They encourage discussion with the group leaders believes in two-way communication.
They listen to followers; try to facilitate the decision making.

Free Rein leadership: Free Rein leaders exercises little authority and give maximum
freedom to subordinates while making decisions. It is bottom-up approach.Suggestions from the
followers are encourage and rewarded. They give high degree of independence subordinates in
their operations.

SOCIAL RESPONSIBILITY:
Social responsibility refers to the process with includes several activities from providing safe
products and services to giving apportion of the companys profits to welfare organizations.

Responsibility towards shareholders: The business enterprise has the responsibility to provide
fair return on capital to the shareholders. The firm must provide them regular, accurate, and full
information about the working of enterprise in order to fulfill and encourage their interest in the
affairs of the company.

Responsibility towards consumers: The management has to provide quality products and
services to the customers at reasonable prices. It should consider customer suggestions and also
plan it services more effectively through consumer satisfaction survey.

Responsibility towards employees: Good working conditions motivate workers to contribute

their best it is the responsibility of the management recognize their unions and respect their
right to associate with a union of their choices.

Responsibility towards creditors: The business has to repay the loans it has taken from the
financial institutions as per the repayment schedule also it should inform the creditors about the
developments in the company from time-to-time.

Responsibility towards Government: The business firm has to pay its taxes and be fair in its
endeavours. It should also support the government in community development projects.

Responsibility towards competitors: The business firm should always maintain the highest
ethical standards and maintain cordial relations with each of the competitors, which is a critical
and sensitive segment.

Responsibility towards public: Business units have tremendous responsibility towards the
general public to support the cause of community development. Most of the companies
maintain public relations departments exclusively to maintain good relations with the
community.