Course Code : MS-01

Course Title : Management functions and Behaviour

Assignment Code : 01/TMA/SEM-II/2010
Coverage : All Blocks

1. Explain the tasks of a professional Manager. Discuss the professional manager’s role in
managing survival and growth of the organization. Give example from the organization you
are working in or any organization you are familiar with. Briefly describe the organization
you are referring to.

Solution 1: Tasks of professional managers:

1. Providing direction to the firm:
Envisioning goal is the first task that should never be delegated.
2. Managing survival and growth.
There are two sets: internal and external.
Internal factors are choice of technology, efficiency of labour, competency of managerial staff, company
image, financial resources etc.
External factors are govt. policy, laws and regulation, changing customer taste, attitude and values,
increasing competition etc.
3. Maintaining firm’s efficiency:
A manager has not only to perform and produce results, but to do so in the most efficient manner. The
more output a manager can produce with the same input, the greater will be the profit.
4.Meeting the competition challenge:
A manager must anticipate and prepare for the increasing competition. Competition increasing in terms of
more producers, products, better quality etc.
5.Innovation:
To finding new and better way to doing any task
6.Renewal:
Managers are responsible for fostering the process of renewal.it has to do with provoding new process
and resources.
7. Building human organization:
A good worker is a valuable assets of any company. Every manager must constantly lookout for people
with potential and attract them to join the company.
8. Change management:
A manager has to perform the task of change agent.its the managers task to ensure that the change is
introduced and incorporated in a smooth manner with the least disturbance and resistance.
9.Selection:
Todays manager4 are faced with a bewildering array of information technology choices that promise to
change the way work gets done.
Example:
A professional manager for a city has duties which include meeting with elected council to determine
policies that are determined by the council and to notify council members and citizens about the local
govt.operations.discussing of certain reforms, installing a bridge, setting up new traffic plans, or
proposing a new building-all these are many more things which can affect community life are some of the
responsibilities of the professional managers in a township. He is also responsible for preparing annual
budget, presenting it to elected officers for sanction and then implementing it, after is is approved.
Listening to citizen grievances with regards to administration, civic problems, law and order, and
presenting matter to the elected officials for appropriate actions are some of the task of professional
manager who is in charge of the administration of a city.

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2.Explain the different types of managerial decisions. Describe the decisions made under
different states of nature. Explain with an example of your organization or any
organization you are familiar with. Briefly describe the organization you are referring to.
Solution 2: Different types of managerial decisions
Irreversible : These are type of decisions, which if made once cannot be undone. Whatever is decided
would then have its repercussions for a long time to come. It commits one irrevocably when there is no
other satisfactory option to the chosen course. A manager should never use it as an all-or-nothing but
instant escape from general indecision.
Reversible :These are the decisions that can be changed completely, either before, during or after the
agreement of taking action. Such types of decisions allows one to acknowledge a mistake early in the
process rather than perpetuate it. It can be effectively used for changing circumstances where reversal is
necessary.
Experimental : These types of decisions are not final until the first results appear and prove themselves
to be satisfactory. It requires positive feedback before one can decide on a course of action. It is useful
and effective when correct move is unclear but there is a general clarity regarding the direction of action.
Trial and Error : In this type of decision making, knowledge is derived out of past mistakes. A certain
course of action is selected and is tried out, if the results are positive, the action is carried further, if the
results appear negative, another course is adopted. And so on and so forth a trial is made and an error is
encountered. Till the right combination takes place, this situation continues. It allows the manager to
adopt and adjust plans continuously before the full and final commitment. It uses both, the positive and
negative feedback before selecting one particular course of action.
Made in stages: Here, the decisions are made in steps until the whole action is completed. It allows close
monitoring of risks as one accumulates the evidences from out-comes and obstacles at every stage. It
permits feedback and further discussion before the next stage of the decision is made.
Cautious : It allows time for contingencies and problems that may crop up later at the time of
implementation. The decision-makers hedge their best of efforts to adopt the right course. It helps to limit
the risks that are inherent to decision-making. Although this may also limit the final gains, it allows one
to scale down those projects which look too risky in the first instance.
Conditional: Such type of decisions can be altered if certain foreseen circumstances arise. It is an
‘either / or’ kind of decision with all options kept open. It prepares one to react if the competition makes a
new move or if the game plan changes radically. It enables one to react quickly to the ever changing
circumstances of competitive markets.
Delayed : Such decisions are put on hold till the decision–makers feels that the time is right. A go-ahead
is given only when required elements are in place. It prevents one from making a decision at the wrong
time or before all the facts are known. It may, at times result into forgoing of opportunities in the market
that require prompt action.
BEING DECISIVE: The ability to take timely, clear and firm decisions is an essential quality of
leadership, but the type of decision needed, varies according to the circumstances. Learning to recognize
the implications of taking each type of different decisions leads to error minimization.
Being Positive :Taking decisive action does not mean making decisions on the spur of the moment.
Although, it may be necessary in emergencies and as also occasionally desirable for other reasons. A true
leader approaches the decisions confidently, being aware of consequences and fully in command of the
entire decision–making process.
Making Fast Decisions: It is important to be able to assess whether a decision needs to be made quickly
or it can wait. Good decision-makers often do make instant decisions – but they then assess the long-term
implications.
Identifying issues: It is crucial to diagnose problems correctly. Before any decision is made identifying
and defining the issue removes the criticality. This also means deciding who else needs to be involved in
the issue, and analyzing the implication of their involvement.

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Prioritizing factors : While making a decision, a manager needs to prioritize on important factors. Some
factors in a process are more important than others. The use of Pareto’s rule of Vital Few and Trivial may
help in setting up of the priorities. Giving every factor affecting a decision equal weight makes sense only
if every factor is equally important. The Pareto rule concentrates on the significant 20 percent and gives
the less important 80 percent lower priority.
Using advisers : It is advisable to involve as many people as are needed in making a decision. In making
collective decisions, specific expertise as well as experience of a person both can be used simultaneously.
The decision-maker, having weighed the advice of experts and experienced hands, must then use
authority to ensure that the final decision is seen through.
Whetting decisions : If one does not have the full autonomy to proceed, it is advisable to consult the
relevant authority – not just for the final go, but also for the input. It is always in the interest of the
subordinate to have the plans whetted by a senior colleague whose judgment is trusted and who is
experienced. Even if there is no need to get the decision sanctioned, the top people are likely to lend their
cooperation well if they have been kept fully informed all the way long, of the decision path.

MANAGERIAL DECISION MAIKING :

• Effective managers are tasked with making decisions ranging from large to small on a daily basis.
An effective organization employs managers who are problem-solvers and who can make
decisions constantly.
• It is critical to first prioritize issues and problems based on the issues potential effect on the
organization. Those that stand to have the greatest impact should be dealt with first, and all
problems need to be addressed in a systematic way prior to a decision being made.
• Because a first impression is just that, and does not necessarily reflect the entire situation, a
manager must avoid jumping to conclusions. Collecting information from more than one source
to avoid bias, and completely assessing all pertinent (and verifiable) information prior to
rendering a decision is strongly recommended.
• Collecting information in order to obtain a complete understanding of the issue is only the first
step, however. Once the information is available, then it is wise to brainstorm different solutions
and possible options in order to get more than one perspective. Such options can start out as
wide-ranging, and then can be narrowed down to fit the scope of the problem.
• Having identified a set of options and solutions, feedback and suggestions on them, along with
alternatives, should be sought from consultations with others. For the most part, group decisions
(particularly where the group contains people who the end decision will affect) are preferable to
those made by individuals as a pool of knowledge, skills and experience can be drawn upon.
• Tools, techniques and analysis methods (such as: Pareto Analysis; Paired Comparison Analysis;
Grid Analysis; PMI; Six Thinking Hats; Starbursting; Decision Trees) can then be applied. These
are not conclusive, but they do offer an objective and somewhat scientific approach to decision
making. They are particularly useful when the decision-makers judgment is liable to be clouded
by being too closely involved with the issue at hand.
• Then comes the time to weigh the pros and cons of a decision. Which option or solution gives
most to the organization whilst taking least from it? Few decisions will be as clear cut to hold no
drawbacks. Negatives are acceptable though, so long as the positives sufficiently outweigh them.

Degrees of Outcome Predictability :

Certainty
Risk
Uncertainty
Ambiguity
Certainty

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Full knowledge of available alternatives
Full knowledge of what outcome will result from each alternative
Few certain decisions in the real world.
Risk
Knowledge of what the alternatives are
Know the probabilities of outcomes resulting from each alternative.
Uncertainty
Goals are known, but information about alternatives and future outcomes is incomplete (probabilities
unknown)
Some alternatives may be completely unknown
Ambiguity
Objectives to be achieved are unclear
Little, if any, knowledge of alternatives

3.Explain the Sources and Process of conflict. Discuss various conflict-avoidance strategies
being followed by an organization, citing example from the organization you are
working in or any organization you are familiar with. Briefly describe the organization
you are referring to.
Solution 3 : Sources and Process of conflict
By evaluating a conflict according to the five categories below -- relationship, data, interest, structural
and value -- we can begin to determine the causes of a conflict and design resolution strategies that will
have a higher probability of success.

Relationship Conflicts: Relationship conflicts occur because of the presence of strong negative
emotions, misperceptions or stereotypes, poor communication or miscommunication, or repetitive
negative behaviors. Relationship problems often fuel disputes and lead to an unnecessary escalating spiral
of destructive conflict. Supporting the safe and balanced expression of perspectives and emotions for
acknowledgment (not agreement) is one effective approach to managing relational conflict.

Data Conflicts: Data conflicts occur when people lack information necessary to make wise decisions, are
misinformed, disagree on which data is relevant, interpret information differently, or have competing
assessment procedures. Some data conflicts may be unnecessary since they are caused by poor
communication between the people in conflict. Other data conflicts may be genuine incompatibilities
associated with data collection, interpretation or communication. Most data conflicts will have "data
solutions."

Interest Conflicts: Interest conflicts are caused by competition over perceived incompatible needs.
Conflicts of interest result when one or more of the parties believe that in order to satisfy his or her needs,
the needs and interests of an opponent must be sacrificed. Interest-based conflict will commonly be
expressed in positional terms. A variety of interests and intentions underlie and motivate positions in
negotiation and must be addressed for maximized resolution. Interest-based conflicts may occur over
substantive issues (such as money, physical resources, time, etc.); procedural issues (the way the dispute
is to be resolved); and psychological issues (perceptions of trust, fairness, desire for participation, respect,
etc.). For an interest-based dispute to be resolved, parties must be assisted to define and express their
individual interests so that all of these interests may be jointly addressed. Interest-based conflict is best
resolved through the maximizing integration of the parties' respective interests, positive intentions and
desired experiential outcomes.

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Structural Conflicts : Structural conflicts are caused by forces external to the people in dispute. Limited
physical resources or authority, geographic constraints (distance or proximity), time (too little or too
much), organizational changes, and so forth can make structural conflict seem like a crisis. It can be
helpful to assist parties in conflict to appreciate the external forces and constraints bearing upon them.
Structural conflicts will often have structural solutions. Parties' appreciation that a conflict has an external
source can have the effect of them coming to jointly address the imposed difficulties.

Value Conflicts : Value conflicts are caused by perceived or actual incompatible belief systems. Values
are beliefs that people use to give meaning to their lives. Values explain what is "good" or "bad," "right"
or "wrong," "just" or "unjust." Differing values need not cause conflict. People can live together in
harmony with different value systems. Value disputes arise only when people attempt to force one set of
values on others or lay claim to exclusive value systems that do not allow for divergent beliefs. It is of no
use to try to change value and belief systems during relatively short and strategic mediation interventions.
It can, however, be helpful to support each participant's expression of their values and beliefs for
acknowledgment by the other party.

RESOLVING CONFLICT : There is a difference between resolving a conflict and managing conflict.
Resolving a conflict ends the dispute by satisfying the interests of both parties. Managing a conflict
contains specialized interaction that prevents a dispute from becoming a destructive battle. Managing a
conflict attends to the personal issues so as to allow for a constructive relationship, even though the
objective issues may not be resolvable. Our goal in conflict always should be to seek a resolution based
on mutual gain. Realistically, however, resolution is not always possible. When this is the case, we must
manage the conflict to ensure that the relationship is constructive and that open communication is
maintained. We Listen to Conflict to understand the other party and demonstrate the acceptance required
to maintain the relationship

1. The Framework for conflict resolution: When conflicts arise, we assess a variety of factors before
selecting our approach to the situation. We may choose to compete, or dominate, where we try to impose
our will on the other side through physical or psychological means, or we may choose to accommodate,
or surrender, and cede victory to the other side. Likewise, we may decide to withdraw by either doing
nothing or refusing to participate in the conflict altogether, or we may collaborate and reach a
constructive and mutually acceptable solution. And if none of those approaches proves effective, we
might choose third-party intervention, a form of collaboration in which an individual or group external to
the conflict intercedes to move both parties toward agreement.

2. Competitive Bargaining: When most people think of negotiation, they think of competitive bargaining.
In this type of negotiation, a seller asks for more than he expects and a buyer offers less than she is
willing to pay. This form of negotiation also is frequently called distributive bargaining or concession-
convergence. It maintains a competitive, win-lose orientation, with the goals of one party and the
attainment of those goals in direct conflict with the goals of the other party. In other words, competitive
bargaining is a positional conflict in which "winning" is determined by how much of the original position
was obtained. The parties believe that resources are fixed and limited, and that they must battle to
maximize their share of the wealth.

In competitive bargaining, each party uses strategy, tactics, and tricks to achieve its objective, and
whether one of both parties will achieve their goal depends upon their ability to "play the game." Each
party seeks to extract information from the other party that will help in identifying appropriate
counteroffers, while revealing as little accurate information as possible about its own preferences. The
final agreement often depends on the willingness of one party to stake out a tough and extreme position

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that causes the other party to make concessions. Labor management disputes and international
negotiations often use this model of conflict resolution.

The competitive bargaining process is unappealing to many of us and often produces unwise agreements.
Some of us simply do not have the skills or the temperament to play the game. We see the process as
being unnecessary tough, deceitful, or manipulative. Perceptions of power & control also are a significant
factor in the effectiveness of competitive bargaining. If you do not have the power in the relationship, or
if you perceive that you do not, you are more likely to obtain an unsatisfactory resolution. Your lack of
power will prevent you from using authority or aggression to resolve, or win, the dispute. In competitive
bargaining this form of aggression is often played as a trump card to achieve the win for the party who is
able to acquire the most power.

Competitive bargaining tends not to resolve conflict. It merely manages it for his short term. It is based on
an attitude of limits and is fundamentally a process of reaching a settlement within a bargaining range.
Both parties know that they are going to have to settle for something less than they would prefer, but they
each hope that the deal will be better than their bottom line. Parties who do not think they got the best
deal possible or who believe that they "lost" typically try to find ways to recoup their losses later. Even if
one party believes that it "won," it still knows that it left something on the bargaining table and will try to
acquire it in future negotiations. Labor and management, for example, may reach an agreement, but it is
not long before they are back at the bargaining table, renegotiating issues that one or both sides thought
had been settled previously.

3.Collaboration: The collaborative approach to conflict resolution, also called mutual gains or integrative
bargaining, argues for the possibility of solutions that all sides find acceptable. It embodies the notion of
"win-win," a core component of our principle of mutual gain. Collaboration is about identifying a
common, shared, or joint goal and developing a process to achieve it. It is a process in which both parties
exchange information openly, defines their common problems, and creates options to solve these
problems. And while the collaborative process cannot guarantee that agreement will always be reached,
more often than not, the analysis of interests, needs, and desires helps the resolution process and ultimate
agreement.There are many reasons why people don't pursue this model of conflict resolution. First, people
in conflict often do not recognize the potential for collaboration. This often is the result of an attitude of
limits, either-or thinking, or a fixed-pie mentality. When parties remain positional or see only a limited
number of solutions that will satisfy their interests, they do not use their creativity to solve the problem.

Another barrier to collaboration relates to the complexity of most conflicts. Some elements are conducive
to collaboration, and some elements require competitive bargaining. Each mode of conflict resolution
requires different skill sets, and you can send mixed messages unless you handle them carefully.

Finally, people often have a lack of faith in their problem-solving ability. Parties that enter the resolution
process believing that they can work together usually find a way to collaborate. Those who do not have a
solid self-concept will be less willing to follow the Principles of interaction& use listening to seek
collaborative resolution.

There are many obstacles that make collaboration more difficult. Given our inherent competitiveness and
the various factors that surround many of our disputes, it is a wonder that constructive collaboration
occurs at all. However, it does occur if one or both of the parties in conflict outcomes, the following
conditions must be established at some point during the process:

Face-to-face interaction: The Listening to Conflict approach to dispute resolution requires developing an
understanding of the total message another party is trying to communicate. The most effective way to

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accomplish this is through face-to-face interaction, where we can see the nonverbal expressions that give
us clues to underlying emotional needs.

High acquaintance potential: Without the ability to accept and have positive regard for the other party,
collaboration will not be possible. We have to like the person as a person and be willing to establish a
relationship that goes beyond the issues of the dispute. This will allow the personal issues to be dealt with
separately from the objective issues in the particular conflict so that we can explore options for mutual
gain.

Constituency support: The parties in conflict will not be able to collaborate if outside constituencies try to
force competitive and positional norms. Third parties must be supportive of the collaborative process or
risk nullifying the positive steps taken toward collaboration by reneging on constructive agreements
established between the two interacting parties. We must prevent or resolve any conflict with our
constituencies prior to interacting with the other party in the primary dispute.

Cooperative tasks: Acceptance goes a long way toward diffusing head-to-head competition in conflict,
but unless a joint or mutual task is established, there will be no need to collaborate. We at least must
frame the conflict as a problem to be solved together in order to establish a collaborative environment.

Shared exploration: Sharing in the process of understanding the problem and creating solutions keeps
both parties involved. This saves one party from the trap of inventing all of the solutions, and the
inevitable dependence and resentment that accompanies that responsibility. When both parties are
involved, there will be stronger commitment to the final solutions.

No fixed agenda: An agenda creates a positional interaction that is based on satisfying the needs of one
party without understanding how the interests of both are related. Having an agenda sends the message
that you are not interested in the other party's issues and needs issues and needs. The only agenda should
be to follow the steps of collaboration and work toward mutual gain.

Adherence to collaborative process steps. Successful resolution requires that we follow the steps of
collaboration. If we skip a step, we risk sending the other party mixed signals that will; propel that party
toward a defensive, competitive mode.

The Six Steps of Collaboration

With the above conditions in mind, a constructive environment can be established. The steps progress
logically &should be departed from only to return to a previous step as a means to enhance the
relationship & increasing understanding. Skipping steps reduces the chance for collaborative agreement
and should be avoided. The six steps are as follows:

The Six Steps of Collaboration

1.Prepare for the Interaction.

2. Initiate the Exchange.
3. Facilitate the Relationship.
4. Understand the Interests.
5. Examine the Solutions.
6. Reach Consensus

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4. Explain the importance of Communication. Describe the channels and barriers of
communication of an organization with the help of examples from the organization you are
working in or any organization you are familiar with. Briefly describe the organization you
are referring to

Solution 4: Importance of communication

For manager – employee relations: Effective communication of information and decision is an essential
component for management-employee relations. The manager cannot get the work done from employees
unless they are communicated effectively of what he wants to be done? He should also be sure of some
basic facts such as how to communicate and what results can be expected from that communication. Most
of management problems arise because of lack of effective communication. Chances of misunderstanding
and misrepresentation can be minimized with proper communication system.
For motivation and employee morale: Communication is also a basic tool for motivation, which can
improve morale of the employees in an organization. Inappropriate or faulty communication among
employees or between manager and his subordinates is the major cause of conflict and low morale at
work. Manager should clarify to employees about what is to be done, how well are they doing and what
can be done for better performance to improve their motivation. He can prepare a written statement,
clearly outlining the relationship between company objectives and personal objectives and integrating the
interest of the two.
For increase productivity: With effective communication, you can maintain a good human relation in
the organization and by encouraging ideas or suggestions from employees or workers and implementing
them whenever possible, you can also increase production at low cost.
For employees: It is through the communication that employees submit their work reports, comments,
grievances and suggestions to their seniors or management. Organization should have effective and
speedy communication policy and procedures to avoid delays, misunderstandings, confusion or
distortions of facts and to establish harmony among all the concerned people and departments.
Importance of written communication: Communication may be made through oral or written. In oral
communication, listeners can make out what speakers is trying to say, but in written communication, text
matter in the message is a reflection of your thinking. So, written communication or message should be
clear, purposeful and concise with correct words, to avoid any misinterpretation of your message. Written
communications provides a permanent record for future use and it also gives an opportunity to employees
to put up their comments or suggestions in writing.
So, effective communication is very important for successful working of an organization. Business
writing software with grammar checker and text enrichment tool, which enhances a simple sentence into
more professional and sophisticated one, can be used for writing effective business communications. For
more information, please visit grammar correction tool.

1. The Communication Channels

2. The communication channel selected for transmitting a message plays a significant role in maintaining the
quality of the original message in its passage from the sender to receiver. The sender, given the opportunity
to weigh the merits of using an oral or written communication, or a combination of the two, selects the
most effective for the situation.
3. Regardless of the communication channel selected, the sender will encounter obstacles. In the previous
chapter, the various barriers to effective communication were analyzed. Considering the possible barriers,
the sender must choose the channel which he feels will best guarantee transfer of the essence and meaning
of his message without misunderstanding or distortion.
4. To counteract possible interference in the communication channel, the message should attract attention,
contain redundancy, continue repetition, or use a combination of these approaches.
5. To attract attention, the message must be different from others competing for the recipient's time. A short
handwritten message instead of the usual typed message is one method that can attract attention.

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6. To provide redundancy, the message must be rephrased several times (the technique used in newspaper
articles), and/or summarized in the final paragraph. The sender should avoid too much redundancy because
this tends to clutter the communication channel.
7. To provide repetition, the message must be transmitted through more than one channel, as in spoken and
written form, or transmitted more than once through the same channel, as in TV advertising.
8. Now, let's turn our attention to the basic communication channels within an organization. There are three
channels: formal, informal, and unofficial.
9. Formal. The communication within the formal organizational structure that transmits goals, policies,
procedures, and directions.
10. Informal. The communication outside the formal organizational structure that fills the organizational gaps,
maintains the linkages, and handles the one-time situations.
11. Unofficial. The interpersonal communication within (or among) the social structure of the organization that
serves as the vehicle for casual interpersonal exchanges, and transmittal of unofficial communications.
12. A more detailed examination of each of these communication channels will provide a better understanding
of these functions.
13. Formal Communication
14. Formal communication - written or oral - follows the chain of command of the formal organization; the
communication flows from the manager to his immediate subordinates. Each recipient then re-transmits the
message in the selected form to the next lower level of management or to staff members, as appropriate.
The message progresses down the chain of command, fanning out along the way, until all who have a need
to know are informed. Formal communication also flows upward through the organization on the same
basis.
15. Formal communication normally encompasses the transmittal of goals, policies, instructions, memoranda,
and reports; scheduled meetings; and supervisory-subordinate interviews.
16. Informal Communication
17. No organization operates in a completely formal or structured environment. Communication between
operations depicted in an organizational chart do not function as smoothly or as trouble-free as the chart
may imply. In most organizations operating effectively, channels of communication have developed
outside the hierarchical structure.
18. The informal communication process supplements the formal process by filling the gaps and/or omissions.
Successful managers encourage informal organizational linkages and, at the same time, recognize that
circumvention of established lines of authority and communication is not a good regular practice. When
lines of authority have been bypassed, the manager must assume responsibility for informing those
normally in the chain of command of the action taken.
19. There is a fine line between using informal communications to expedite the work of the organization and
the needless bypassing of the chain of command. The expediting process gets the job done, but bypassing
the chain of command causes irritation and can lead to hard feelings. To be effective, the manager must
find a way to balance formal and informal communication processes.
20. Unofficial Communication
21. Astute program and functional managers recognize that a great deal of communication taking place within
their organizations is interpersonal. News of revised policies and procedures, memoranda, and minutes of
meetings are subjects of conversation throughout the organization. These subjects often share the floor with
discussions of TV shows, sports news, politics, and gossip.
22. The "grapevine" is a part of the unofficial communication process in any organization. A grapevine arises
because of lack of information employees consider important: organizational changes, jobs, or associates.
This rumor mill transmits information of highly varying accuracy at a remarkable speed. Rumors tend to
fall into three categories: those reflecting anxiety, those involving things hoped for, and those causing
divisiveness in the organization. Some rumors fade with the passing of time; others die when certain events
occur.
23. Employees take part in the grapevine process to the extent that they form groups. Any employee not
considered a part of some group is apt to be left out of this unofficial communication process.
24. The grapevine is not necessarily good or bad. It serves a useful function when it acts as a barometer of
employees' feelings and attitudes. Unfortunately, the information traveling along the grapevine tends to
become magnified or exaggerated. Employees then become alarmed unnecessarily by what they hear. It is

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imperative that a manager be continually alert to the circulation of false information. When discovered,
positive steps should be taken to provide the correct information immediately.

5.Explain various leadership styles. Critically evaluate the leadership styles being
followed in your organization or any organization you are familiar with. Briefly
describe the organization you are referring to.

Solution : 5

Leadership style is the manner and approach of providing direction, implementing

plans, and motivating people. Kurt Lewin (1939) led a group of researchers to
identify different styles of leadership. This early study has been very influential and
established three major leadership styles. The three major styles of leadership are
(U.S. Army Handbook, 1973):

o Authoritarian or autocratic
o Participative or democratic
o Delegative or Free Reign

Although good leaders use all three styles, with one of them normally dominant, bad
leaders tend to stick with one style.

Authoritarian (autocratic) :This style is used when leaders tell their employees
what they want done and how they want it accompished, without getting the
advice of their followers. Some of the appropriate conditions to use it is
when you have all the information to solve the problem, you are short on
time, and your employees are well motivated.

Some people tend to think of this style as a vehicle for yelling, using demeaning
language, and leading by threats and abusing their power. This is not the
authoritarian style, rather it is an abusive, unprofessional style called bossing people
around. It has no place in a leader's repertoire.

The authoritarian style should normally only be used on rare occasions. If you have
the time and want to gain more commitment and motivation from your employees,
then you should use the participative style.

Participative (democratic) : This style involves the leader including one or more
employees in the decision making process (determining what to do and how
to do it). However, the leader maintains the final decision making authority.
Using this style is not a sign of weakness, rather it is a sign of strength that
your employees will respect.

This is normally used when you have part of the information, and your employees
have other parts. Note that a leader is not expected to know everything -- this is why
you employ k n o w l e d g e a b l e and s k i l l f u l employees. Using this style is of

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 mutual benefit -- it allows them to become part of the team and allows you to make
better decisions.

Delegative (free reign) : In this style, the leader allows the employees to make the
decisions. 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.

Forces
A good leader uses all three styles, depending on what forces are involved between
the followers, the leader, and the situation. Some examples include:

o Using an authoritarian style on a new employee who is just learning the job.
The leader is competent and a good coach. The employee is motivated to
learn a new skill. The situation is a new environment for the employee.
o Using a participative style with a team of workers who know their job. The
leader knows the problem, but does not have all the information. The
employees know their jobs and want to become part of the team.
o Using a delegative style with a worker who knows more about the job than
you. You cannot do everything! The employee needs to take ownership of
her job. Also, the situation might call for you to be at other places, doing
other things.
o Using all three: Telling your employees that a procedure is not working
correctly and a new one must be established (authoritarian). Asking for their
ideas and input on creating a new procedure (participative). Delegating tasks
in order to implement the new procedure (delegative).

Forces that influence the style to be used included:

o How much time is available.

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

o Laws or established procedures such as OSHA or training plans.

Four of the most basic leadership styles are:

--Autocratic

--Bureaucratic

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--Laissez-faire

--Democratic

Autocratic Leadership Style : This is often considered the classical approach. It is one in which the
manager retains as much power and decision-making authority as possible. The manager does not consult
employees, nor are they allowed to give any input. Employees are expected to obey orders without
receiving any explanations. The motivation environment is produced by creating a structured set of
rewards and punishments.

This leadership style has been greatly criticized during the past 30 years. Some studies say that
organizations with many autocratic leaders have higher turnover and absenteeism than other
organizations. Certainly Gen X employees have proven to be highly resistant to this management style.
These studies say that autocratic leaders:

--Rely on threats and punishment to influence employees

--Do not trust employees
--Do not allow for employee input
Yet, autocratic leadership is not all bad. Sometimes it is the most effective style to use. These situations
can include:
--New, untrained employees who do not know which tasks to perform or which procedures to follow
--Effective supervision can be provided only through detailed orders and instructions
--Employees do not respond to any other leadership style
--There are high-volume production needs on a daily basis
--There is limited time in which to make a decision
--A manager’s power is challenged by an employee
--The area was poorly managed
--Work needs to be coordinated with another department or organization
The autocratic leadership style should not be used when:
--Employees become tense, fearful, or resentful
--Employees expect to have their opinions heard
--Employees begin depending on their manager to make all their decisions
--There is low employee morale, high turnover and absenteeism and work stoppage

Bureaucratic Leadership Style : Bureaucratic leadership is where the manager manages “by the book¨
Everything must be done according to procedure or policy. If it isn’t covered by the book, the manager
refers to the next level above him or her. This manager is really more of a police officer than a leader. He
or she enforces the rules.
This style can be effective when:
--Employees are performing routine tasks over and over.
--Employees need to understand certain standards or procedures.
--Employees are working with dangerous or delicate equipment that requires a definite set of procedures
to operate.
--Safety or security training is being conducted.
--Employees are performing tasks that require handling cash.
This style is ineffective when:
--Work habits form that are hard to break, especially if they are no longer useful.
--Employees lose their interest in their jobs and in their fellow workers.
--Employees do only what is expected of them and no more.

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Democratic Leadership Style : The democratic leadership style is also called the participative style as it
encourages employees to be a part of the decision making. The democratic manager keeps his or her
employees informed about everything that affects their work and shares decision making and problem
solving responsibilities. This style requires the leader to be a coach who has the final say, but gathers
information from staff members before making a decision.

Democratic leadership can produce high quality and high quantity work for long periods of time. Many
employees like the trust they receive and respond with cooperation, team spirit, and high morale.
Typically the democratic leader:

--Develops plans to help employees evaluate their own performance

--Allows employees to establish goals
--Encourages employees to grow on the job and be promoted
--Recognizes and encourages achievement.
Like the other styles, the democratic style is not always appropriate. It is most successful when used with
highly skilled or experienced employees or when implementing operational changes or resolving
individual or group problems.

The democratic leadership style is most effective when:

--The leader wants to keep employees informed about matters that affect them.
--The leader wants employees to share in decision-making and problem-solving duties.
--The leader wants to provide opportunities for employees to develop a high sense of personal growth and
job satisfaction.
--There is a large or complex problem that requires lots of input to solve.
--Changes must be made or problems solved that affect employees or groups of employees.
--You want to encourage team building and participation.
Democratic leadership should not be used when:
--There is not enough time to get everyone’s input.
--It’s easier and more cost-effective for the manager to make the decision.
--The business can’t afford mistakes.
--The manager feels threatened by this type of leadership.
--Employee safety is a critical concern.

Laissez-Faire Leadership Style :The laissez-faire leadership style is also known as the “hands-off¨ style.
It is one in which the manager provides little or no direction and gives employees as much freedom as
possible. All authority or power is given to the employees and they must determine goals, make decisions,
and resolve problems on their own.

This is an effective style to use when:

--Employees are highly skilled, experienced, and educated.

--Employees have pride in their work and the drive to do it successfully on their own.
--Outside experts, such as staff specialists or consultants are being used
--Employees are trustworthy and experienced.
This style should not be used when:
--It makes employees feel insecure at the unavailability of a manager.
--The manager cannot provide regular feedback to let employees know how well they are doing.
--Managers are unable to thank employees for their good work.

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--The manager doesn’t understand his or her responsibilities and is hoping the employees can cover for
him or her.

Varying Leadership Style :While the proper leadership style depends on the situation, there are three
other factors that also influence which leadership style to use.

1. The manager’s personal background. What personality, knowledge, values, ethics, and experiences
does the manager have. What does he or she think will work?

2. The employees being supervised. Employees are individuals with different personalities and
backgrounds. The leadership style managers use will vary depending upon the individual employee and
what he or she will respond best to.

3. The company. The traditions, values, philosophy, and concerns of the company will influence how a
manager acts.

Leadership & Impact On Organisation Climate - Presentation Transcript

LEADERSHIP & IMPACT ON ORGANISATION CLIMATE

Different leadership styles on the organizational climate and performance directs the organization in a
way that makes it more cohesive and coherent. Leadership is a process by which a person influences
others to accomplish an objective

Leadership Styles The Affiliative Style The Coercive Style The Pacesetting Style The Democratic Style
The Authoritative Style The Coaching Style Leadership Styles .

3.Leadership Styles Overall impact on climate When the style works best Underlying EI competencies
The style in a phrase Leader’s modus operandi Most strongly positive Negative appropriate when a new
direction is required or a clarification of the goals to be achieved appropriate in emergencies and severe
situations Self confidence, empathy, change catalyst Drive to achieve, initiative, self control “ Come with
me” “ Do what I tell you” focuses on the goal or vision of the future and inspires others to follow
Demands immediate compliance Authoritative (a.k.a. 'The Visionary') Coercive (a.k.a.
'The Dictator‘)

Leadership styles offers clear guidance to the manager, using these styles as appropriate as situation
require

All of these styles are useful at different times, but used at the wrong time they can be disastrous e.g.
too much listening when immediate action is required, or only providing a vision when a team needs
building or rebuilding.The type of leadership styles use will affect performance and results .
1. Flexibility i.e. how free employees feel to innovate unencumbered by red tape;
• Level of standards that people set;
• The sense of accuracy about performance feedback and aptness of rewards;
• The clarity people have about mission and values;
• The level of commitment to a common purpose

2. How different leadership styles affects the organizational climate and performance
• Reap strong loyalty by building strong emotional bonds

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• Drives up flexibility and does not impose unnecessary strictures on how work is done
• Offers ample positive feedback for motivation
• Creates a sense of belonging for employees
• Most effective among the 6 leadership styles
• Motivates people and able to lead them to a clear direction
• Maximizes commitment to the business’s goals and strategy with defined standards
• Gives employees the freedom to innovate, experiment and take calculated risks.
• appropriate in severe situations and emergency i.e. during a turnaround or when a hostile
takeover is looming
• Able to break failed business habits and shock people into new ways of working
• Can work with problem employees when all else has failed

Studies have shown that leaders who have mastered 4 or more styles (esp. the authoritative,
democratic, affiliative and coaching styles) have the very best climate and business performance

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