ORGANIZATIONAL MANAGEMENT NOTES

ORGANIZATIONAL MANAGEMENT LEVELS OF MANAGEMENT Every manager in an organization performs five functions that is planning organizing, staffing directing and controlling. However, the relative importance of these functions varies along the managerial levels. People of an organization are arranged in a hierarchy and they all have the relationship of superior subordinate except the person at the top-most position who is superior alone and person at the lowest level that is subordinate alone. In every company, there is a managerial hierarchy or chain of command which consists of several levels of authority. The numbers of management levels may differ from company to company. In other companies there can be as many levels in the organization as the number of superiors in a line command. Some of the levels can be merged into one of the basis of nature of functions performed and authority enjoyed. Different theorists have pointed out different classification of management levels e.g. keith davis (1981) has classified various levels of management as: - Trusteeship management Department management Middle management and Supervisory management Literrer (1983) has a different type of classification when he classifies the managerial levels into: - Institutional (Trusteeship) level General management (integrating) level The last category includes foremen and other supervisory personnel. Brench (1972) has classified management into three categories: - (i) Top management (ii) Middle management (iii) Supervisory of operating management. Various positions of an organization can be put under three levels. LEVELS OF MANAGEMENT TOP MANAGEMENT Top management of an organization consists of board of directors, chairman and chief executive officer. Generally, chairman and chief executive officer position are combined into one. At other times, chairman remains part time in the organization. At top management level, environment of the organization is evaluated and basic goal of the organization are established to fit the environment appraisal, resources available at the disposal of the organization and needs of the organizational members. Top management integrates the functions of the whole organizations. It is responsible for the overall management and performs all such functions which are necessary for this. These functions may be grouped into three categories: - Overall management includes determination of organizational goals and objectives, overall, planning, organizations staffing directing and controlling. Through these functions, it tries to integrated the organization with the environment, balance interests of various groups and is responsible for overall results. In overall operation It translates organizational plans into actions, creates environment for work performance and coordinates departmental heads. Overall relationship It requires maintaining relationships with elements in organization’s environment like government, trade associations, supplies financial institutions e.t.c. Within the top level management, functions of board directors and chief executive differ because board is constituted by persons taken from outside the organizations also while chief executive is a regular employee of the organization. Thus the main functions of top management are: - To analyze and interprete the external environment of the company. To establish long-term cooperate plans i.e. goals, policies and strategies of the company. To formulate and approve the masters budget and departmental budgets. To design brad organizations structures To appoint departmental heads and key executives To coordinate and integrate the activities of different departments and divisions of the company To provide overall directions and leadership to the company To exercise overall review and control of the financial and operating results of the company. To represent the company to the outside world (Public relations) and To decide the distributions of profits. MIDDLE MANAGEMENT (INTERMEDIATE MANAGEMENT) Middle management stands between top management and supervisory management level. The numbers of levels within the middle management depends on the size of the organization in terms of numbers of employees. Since there are many levels within middle management, often it is classified into: - Upper middle level and lower middle level. Intermediate or upper middle management comprises departmental or divisional heads. At upper middle management level, the basic divisions of the organizations ate determined and overall programmes of a division or department are established. Lower middle management if primarily concerned with carrying out functions for achieving specific goats. While working in the middle, middle level management has to face pressure from three sides. Top management forces it to act in accordance with the policies, directions and guidance set up by top management. Lower management, puts pressure over middle management for accepting and accommodating its ideas and views. Middle level managers themselves are interrelated and they expect greater cooperation and working facilities. Since there is no uniformity about the numbers of levels in middle management, there cannot be uniformity in their functions. However, some generalizations can be drawn and functions of middle management can be identifies as follows: - Performance of various functions of the organizations so that top management gets enough time for integrating overall functioning of the organizations. Cooperation among middle management itself and also with top management and supervisors so that organizations functions without any problems. Integration of various parts of a departmental in whose context management is taking action. Training and development of employees for better functioning and filling future vacancies arising in the organization. Development and in calculation of feeling among individuals goals Management of the department in such a way that it contributes to the functioning of other department for achieving organizational goals. To lay down rules and regulations to be followed by supervisory personnel. SUPERVISORY OR OPERATING MANAGEMENT This level can be classified into three categories, particularly in a large sized organizations i.e. Senior supervisor Intermediate supervisor Front-line supervisor Supervising management is concerned with efficiency in using resources of the organization. It is an executor of policies and procedures making a series of decision with well defined and specified premises. Generally a supervisor is called a marginal in the organization. He is concerned with explaining the views of management to workers and the views of the works to management. Because of this reason the job of a supervisor becomes more complex that other levels management treats him the man of workers treat him the man of management. Supervisor if directly related with workers, therefore, the job of a supervisor differs from other levels of management, though he performs, the job of management like planning organizing, staffing, directing and controlling. In doing so, a supervisor performs 3 types of roles: - Scientific management roles Human relations roles Functional roles The general functions of supervisory management are as follows: - To plan day-to-day production within the goals laid down by higher authorities To assign jobs to works, and to make arrangements for their training and duty To issue orders and instructions To supervise and control worker’s operations and to maintain material and maintain personal contacts within them To arrange materials and tools and to maintain machinery. To advise and assists works by explaining work procedures solving their problems e.t.c To maintain discipline and good human relations among workers To report feedback information and workers’ problems to the higher authorities. MANAGEMENT SKILLS A skill refers to practical ability or expertness in an action or doing something. In order to perform various management functions effectively, managers must possess certain skills. Robert Katz (1974) has grouped various managerial skills into three broad categories i.e. (i) Technical skills (ii) Human skills (iii) Conceptual skills TECHNICAL SKILLS Technical skills refer to the ability and knowledge in using the equipment. Techniques and procedures involved in performing specific tasks. Technical skills are concerned with what is done. These pertain to knowledge and proficiency in process, procedures methods and techniques which are used in doing a work. These have called hard skills and are easily visible in a person. Technical skills learned by accountants’ engineers, managers and other persons are developed by actual practice on the job. e.g. a person who is responsible to maintain files in an organization must have technical skill relating to “how files are maintained” and he learns this through practice. For managers, technical skills are required for effective performance of the following managerial jobs. Managers are responsible to maintain workflow in the organization. Workflow involves the initiation of action i.e. who will initiate action and who will receive it. e.g. in an organization one person gives materials to another person, an initiation of action of action and other person receives it. For prescribing workflow, managers must have technical knowledge of the work concerned. Managers are responsible to maintain order in the work system i.e. there should be place for everything and everything should be on its place. For maintaining effective order system, mangers must have knowledge of work system and workflow. HUMAN SKILLS This also refers as human relations skills are one’s ability to work effectively with others on person-to-person basis and to build up cooperative groups relations to accomplish organizational objectives. No manager can be effective without suitable human skills are required for effective performance of the following managerial jobs: - Every manager interacts on one-to-one basis with others superior, subordinate peer and outsiders. To make these interactions effective, the manager must have good interpersonal skills so that he can understand others and make himself to be understood by others. Every manager interacts with others as a member of groups. Such groups may be constituted either formally by the organization in the form of various. Committees and work groups or informally constituted by the group members themselves. A manager will be effective as groups of member only when he has ability to understand other members to make him understood by these members. Every manager communicates with others frequently. These people may be from within the organization of from outside. For making communication effective, every manager must have ability to be empathic to understand other’s views in right perspective as a good listener besides being good orator. For directing his subordinates, a manager does not only use his formal authority because of its obvious. Limitations but relies more on his leadership ability so as to get willing enthusiastic efforts of his followers for achieving organizational objectives. Therefore a manger must have emotional stability, empathy, objectivity and ability to influence others. For getting best result form people, it is essential that they ate motivated properly. Motivation depends on peoples’ needs and their perception that they will be able to satisfy their needs by working in the organization. It is the responsible of a manager to create such an environment in which people may have perception that they will be able to satisfy their needs. Therefore the manager must be able to understand the needs of his people and the way theses needs may be satisfied. Occasionally conflicts arise in the organization such conflicts may arise between two persons in groups or between groups. If such conflicts are not resolved amicably and within the given time frame, these may become dysfunctional leading to organizational inefficiency. Therefore a manager must have ability to resolve conflicts appropriately for this purpose; the manager must be a good compromiser, smoother and negotiator. All the above human skills can be learned and developed by an individual by going through appropriate literature and practicing accordingly. CONCEPTUAL SKILLS In the context of management, conceptual skills are also known as general management skills and refer to the ability to see the whole picture to recognize significant elements in a situation and to understand the relationship among these elements. For managers conceptual skills are required for the following managerial jobs: For making decision particularly non-programmed or strategic decisions, conceptual skills is required. Non-programmed decision are relevant for solving unique/unusual problems in which various alternatives cannot be decided in advance e.g. launching a new product expansion of business e.t.c. Conceptual skills are relevant for building models. A model is an abstraction of reality simplified representation of some real world phenomenon. In management models are used for different activities like business models showing how different business activities will contribute to revenue generation model for predicting environmental variables. Thus technical skills deal with things human skills deal with people and conceptual skills deals with ideas. Every person has all these skills in varying proportion depending on the structure of his brain and the environment he lives is the case with managers. Every manager is required to possess these skills in varying proportion depending on the nature of his functions. Diagnostic skills Diagnostic skills include the ability to determine by analysis and examinations, the nature and circumstances of a particular condition. It is the ability to specify why something happened and the ability to develop certain possible outcomes It is the ability to cut through unimportant aspects and quickly get to the hearts of the problem i.e. logical thinking, analytical reasoning and creativity. Diagnostic skills are probably the most difficult ones to develop because they require the proper blend of analytical ability with common sense and intelligence to be effective. ROLE OF A MANAGER The job of a modern manager is very complex and multi-dimensional. Managers are directly related with workers. In doing so managers performs three type of roles i.e. scientific management roles, human relations roles and functional roles. Figurehead In this role a manager performs symbolic duties required by the status of his office. He makes speeches, bestowing honours, welcoming official visitors, distributing gifts to retiring employees eg such ceremonial and social duties. Leader This role defines the managers’ relationship with his subordinated. The manger sets an example, legitimizes the power of subordinates and brings their needs in accord with those of his organization. Liaison It describes a manager relationship with the outsiders. A manager maintains mutually beneficial relations with other organizations, governments, industry groups e.t.c Monitor It implies seeking and receiving information about his organization and external events. An example is picking up rumors about his organization Disseminator It involves transmitting information and judgments to the members of the organization. The information relates to internal operations and the external environment. A manager calling a staff meeting after a business trip is an example of such a role. Spokesman In this role, a manager speaks for his organizations. He lobbies and defends his enterprise. A manager addressing the trade union is an example. Entrepreneur It involves initiating change or acting as a change agent. E.g. a manager decides to launch a feasibility study for setting up a new plant. Disturbance handler This refers to taking charge when the organization faces a problem or crisis. E.g. a strike, feud between subordinates loss of an important customer. A manager handles conflicts, complaints and competitive actions. Resource allocator In this role a manager approves budget and schedules sets priorities and distributes recourses. Negotiator, a manager bargains with suppliers, dealers, trade union, agents e.t.c. FUNCTIONAL AREAS (SCOPE) OF MANAGEMENT The scope of management is very wide. The various functional areas of management may be classified into the following categories: - Production management Production or operations management is the management of production function so as to produce the right goods, in right quantity of the right time and at the right cost. This area if normally kept under the control of a production manager who is responsible for the performance of entire related activities. Designing the product Location and lay out of plant and building Operation of purchase and storage of materials Planning and control of factory operations Repair and maintenance Inventory control and quality control Research and development ect. According to Prasad (2009) Purchasing This is related with the purchases of various things required by the organization and managing transportation Material management This subarea deals with the storing of the material, material control and issues of material to department where these are needed. This works in close coordination with purchasing management. Research and development This area deals with the research and development of various products in manufacturing organizations. The objective is either to bring refinement in an existing product line or to develop entirely a new product. Marketing management Marketing Management refers to the identification of consumers needs and supplying them the goods and services which can satisfy those wants it involves the following activities. Marketing research to determine the needs and expectation of consumers Planning and developing suitable products Setting appropriate prices Selecting the right channels of distributions Promotional activities like advertising and salesmanship to communicate with the customers Financial Management Financial management seeks to ensure the right amount and type of funds to business at the right time and at reasonable cost. Finance and accounting deal with the record-keeping of various transactions and management of financial resources. Financial accounting It relates to record-keeping of various financial transactions, their classification and preparation of various statement to show the working of results and financial position of the organizations. Management accounting It deals with the analysis and interpretation of financial records so that management can take certain decision. Costing Costing deals with the recording of costs, their classification, analysis and interpretation and costs, their classification, analysis and interpretation and cost control. Investment management It takes care of how the financial resources can be applied to various alternatives. Taxation This area deals with the management of various direct and indirect taxes which the organizations have to pay. PERSONNEL MANAGEMENT Personnel management involves planning organizing, directing and controlling the procurement development compensation maintenance e.t.c of human resources in the organization. It includes following areas Recruitment and selection This deals with the hiring and employing of the human being in the organization. Training and development Training and development deal with the process of making employees in the organization move efficient. Wage and salary administration These are related with wage and salary surveys, job evaluation, merit rating and incentive. Industrial relations This area deals with the maintenance of overall employees relations. Personnel records and research. LEADERSHIP IN THE ORGANIZATION MEANING OF LEADERSHIP Leadership is the process of influencing the behavior of others towards the accomplishment of goals in a given situation. George (1974) states that leadership is the activity of influencing people to strive willingly for group objectives. Koontz and O’Donnel have defined leadership as “influencing” people to follow the achievement of a common goal. It is the ability to exert-personal influence by means of communication towards the achievement of a goal. Leadership is the process of influencing the behavior of others to work willingly enthusiastically for achieving predetermined goals. FEATURES OF LEADERSHIP A leader must have the followers –lead that leadership does not exists in vacuum. Leadership cannot exist without a group of followers. A person can be called a leader only when people accept him and agree to be influenced. He must receive habitual obedience from his team of followers. Leadership is a working relationship between the leader and his followers. This means that a leader must be an active participant in the activities of the group. The purpose of leadership if to achieve some common goal or goals. The process of influencing and interaction is rational in the sense that it is goal directed. A leader seeks to make the followers strive willingly to accomplish group objectives. A leader influences his followers willingly not by force or coercion leadership is not bossism. A leader shows the way by his own example. He is not a pusher but sets an ideal before his followers by his personal conduct. Followers judge what he is by what he does and how he behaves. Leadership is exercised in a given situation. It is a function of the leader, the followers and other situational variables. Leadership is a social interaction-influence process between the leader and his followers. It is an inter-personal process of influencing behavior. A person’s leadership position exist only in relation to people not things. A leader is one who holds a sway over the attitudes, actions and behavior of a group of person. Followers may also influence the attitudes and behaviors of the leader to some extent by interacting with him. Leadership is a power relationship in which power and influence are unevenly distributed. The person holding power over other members of the group becomes the leader. A leader is at the centre of the group’s power structure. He drives his power from superior knowledge or experience, formal, authority, charisma, distinct person traits, resources for rewards amd punishment. Leadership is a continuous and dynamic process of influencing behavior. It is also a psychological process. It is complex and multidimensional in character. LEADERSHIP AND BOSSISM COMPARED LEADERSHIP VS MANAGEMENT Leadership and management are related but they are not the same. Quite often leading and managing are considered a synonymous terms. Really speaking there are several differences between leadership and management. Relationship: Management implies superior subordination relationship. This relationship arises within organizational context. Leadership can occur anywhere with or without organization context. E.g. a mob can have a leader but no a manager. Informal groups have leaders but not managers. Leadership is possible in both formally organized as well as unorganized groups. But management is possible only in formal and organized groups. The followers of leader are not necessarily his juniors or subordinates. They may be leader’s peer, associates and even seniors. Sources of influence A manager is appointed and he obtains authority from his position. A leader is not always appointed; he drives his power from his followers who accept him as a leader. A leader makes use of this power to influence the attitudes and behavior of his followers. Sanctions A manger has command over the allocation and distribution of rewards (positive sanctions) e.g. promotion. Negative sanctions. Punishment e.g. demotion. A leader has command over social satisfaction and related task rewards. Organizational sanctions exercised by a manager are geared to the physiological and security needs. While management is concerned more with the goals of the organization, leadership is concerned with the goals of the followers. Basis of following Both managers and leaders have followers. But the people follows them for different reasons: - People follow managers because they are required to follow by their job description supported by the system of rewards and penalties. People, the leader on voluntary basis if there are no followers but only subordinates. A manger may continue in office so long as his performance is considered satisfactory, where as a leaders can survive as long as followers accept him. Accountability A manager is accountable for his own behavior as well as for the job behavior of his subordinates. His accountability for performance is clearly defined. But there is no clear-cut accountability relationship in leadership, as a leader is not accountable for behavior in the same way as a manager. A manager seeks to achieve organizational goals but a leader is more concerned with ground goals and member’s satisfaction. Functions A manager performs all the functions of planning, organizing, staffing, directing and controlling. The main job of a leader is to guide and inspire the efforts of these followers. Leadership is one aspect or element of directing. All management needs leadership, but leadership may exist without management. Leadership is a more universal attribute than management. Management formulates broad policies to guise the operations of the enterprises. Leadership initiates actions for achieving the objectives. “a leader need to be manager but a manager must have many of the qualities f a good leader. IMPORTANCE OF LEADERSHIP The success of business enterprise is also dependent upon the quality of its leadership. A weak leader can wreck the morale and destroy efficiency. On the other hand, strong leadership can transform luck of luster group into a strong and aggressively successful organization. Many ailing concerns have achieved superb performance with a change in leadership. The importance of management are as follows:_ Guiding people The first and foremost job is a leader to guide and direct the group. He acts as a friend, philosopher and guide to his followers and takes the lead in all activities. A leader provides advice and counseling. He uses his power in the best interests of the group. Developing teamwork A leader acts as the captain of his team in order to win the confident and cooperation of his followers. He convinces people about the goals and policies of the group. A leader secures cooperation and coordination by setting a good example through his own conduct,. He is always in touch with the people to nurture team work. He reconciles differences among people and inculcates a sense of collectivism and responsibility. Maintaining discipline Discipline is the force that prompts individuals to observe rules, regulations and procedures which are necessary for the attainment of objectives. It restraints chaos and destructive activities A leader depends more on consistency of behavior and impartial treatment to enforce discipline or voluntary restraint. Building morale In order to develop high morale among people the leader governs his own actions. He created confidence in his followers in the purpose of the groups and in the plan of action designed for the purpose. He strives to build unflinching loyalty and devotion to the group. Good leadership is a strong motivating force in an organization. Representing the group A leader is the true representative of his followers both to those working for the group as well as the outside word. He serves as their spokesman and guardian. He carries the voice of his people to various authorities. Leaders act as linking pins between the work group and the force outside it. To sum leadership is cohesive force which holds the group intact, the disciplinary power that keeps the group working, the electric current that energizes human action, the insight that converts despair into hope. In fact there is no substitute for effective leadership. Motivating employees Motivation is necessary for work performance, higher the motivation, better would be the performance. A good leader, by exercising his leadership, motivates the employees for higher performances-good leadership is the organization itself and is motivating factor for the individuals. Creating confidence A good leader may create confidence in his followers by directing them, giving them advises and getting through them, good results in the organization. Once an individual, with the help of the leader, put high efficiency, he tries to maintain it as he acquires certain level of confidence towards his capacity. Sometimes, individuals fail to recognize their qualities and capabilities to work in the absence of good direction. LEADERSHIP STYLES Leadership styles are the patterns of behavior which a leader adopt in influencing the behavior of his followers (subordinates in the organizational context). These patterns emerge in the leader as he begins conditions, he develop habits of actions that become somewhat predictable to those who work with him. Various researchers have proposed different leadership styles. These styles are either based on (i) Behavioral approach (ii) Situational approach leadership The following are models prescribing leadership styles: - Based on behaviors approach Power orientation Leadership as a continuum Likert’s management system Employee production orientation Managerial grid Tridimensional grid Based on situational approach Fiedler’s contingency approach Hersey- Blanchard’s situational mode Path-goal model POWER ORIENTATION Power orientation approach of leadership styles is based n the degree of authority which a leader uses in influencing the behavior of his subordinates. Based on the degree of use of power there are three leadership styles: - Autocratic leadership Participative leadership (Democratic) Free-rein leadership Autocratic leadership Autocratic leadership is also known and authoritarian, directive, or monothetic styles. In autocratic leadership styles, a manger centralizes decision-making power in himself and takes all decisions without consulting the subordinates. A leader dominates and drives his group through coercion and command. He loves power and never delegates authority. The leader gives orders and expects the subordinates to follow them ungrudgingly and unquestioningly. The leadership may be negative because followers are unformed, insecure and afraid of the leader’s authority. There are three categories of autocratic leaders. Strict autocratic A leader follows autocratic styles in a very strict sense. His method of influencing subordinates’ behaviors is through negative motivation i.e. criticizing subordinates, imposing penalty e.t.c. Benevolent autocratic A leaders also centralizes decision making power in him, his motivational styles is positive. He can be effective in getting efficiency in many situations some leaders like to work under strong authority by this leadership. Incompetent autocratic Sometimes superior adopt autocratic leadership style just to hide their incompetence, because in other styles they may be exposes before their subordinates. ADVANTAGES OF AUTOCRATIC LEADERSHIP Permits quick decision making as most of the decisions are taken by a single person It provides strong motivation and satisfaction to the leader who dictates terms Less competent subordinates also have scope to work in the organization under leadership style as they do negligible planning, organizing and decision making This style may yield positive results when great speed is required. DISADVANTAGES OF AUTOCRATIC LEADERSHIP There are many disadvantages of autocratic leadership which are as follows; - People n the organization dislikes it especially when it is strict and the motivational style is negative. This style leads to frustration, low morale and conflict among subordinates jeopardizing the organization efficiency. There is more dependence and less individuality in the organization, as such future leaders in the organization do not develop. Subordinates tend to shirk responsibility and initiative. Full potential of subordinates and their creative ideas are not utilized. Organizational continuity is threatened in the absence of the leader because subordinates get no opportunity for development. Autocratic leadership style may be appropriate when subordinates are uneducated, unskilled and submissive. Lack of knowledge and experience on the part of subordinates make it necessary that the leader takes decision himself. This style may also be desirable when the company endorses fear and punishment as accepted/disciplinary techniques. When a leader prefers to be dominant in decision making and there is little room for error in final accomplishment, autocratic leadership may enhance morale and improves productivity. Now days autocratic style is becoming less desirable as employees are becoming more educated and well-organized. PARTICIPATIVE LEADERSHIP (PM) This style is also called democratic consultative or ideographic. A participation is defined as mental and emotional involvement of a person in a group situation which encourages him to contribute to group goals and share responsibility in them. A participative manager decentralizes his decision making process, instead of taking unilateral decision. He emphasizes consultation and participation of his subordinates. Subordinates are broadly informed about the conditions affecting them and their jobs. This process emerges from the suggestions and ideas on which decisions are based. The participation may be either real of pseudo. In real participation superior gives credit to subordinates suggestions and ideas in taking decisions. In the case of pseudo, the superior preaches participation in theory, but really he does not prefer it in practice. There are various benefits in real participative management. ADVANTAGES OF PARTICIPATIVE MANAGEMENT It is highly motivating techniques to employee as they feel elevated when their ideas and suggestions are given weight in decision making. The employees’ productivity is high because they are party to the decisions. Thus they implement the decisions-heartedly. Consultative leadership improves the job satisfaction and morale of subordinates. They share the responsibility with the superior and try to safeguard him also. It cultivates the DM ability of subordinates. The leader multiplies his abilities through the contribution of his followers. It develops positive attitudes and reduces resistance change. The quality of decision is improved Labour absenteeism and turnover are reduced. DISADVANTAGES OF PM Democratic style is time-consuming and may result in delays in decision making. It may not yields positive results when subordinates prefer minimum interaction with the leader. Some people in the organization want minimum interaction with their superior or associates therefore for them, participation techniques is discouraging instead of encouraging. Over period of time subordinates may develop the habit of expecting to be consulted on every issue and they may feel frustrated when they are not consulted. Complex nature of organization requires a thorough understanding of its problems which lower-level employees may not be able to do. Consultation may be interpreted as a sign of incompetence on the part of the leader to deal with problems. It may be used as a means of passing the back to others and of abdicating responsibility. It requires considerable communicating and persuasive skills on the part of the leader. Consultative style is more compatible with the prevailing value system which favors freedom of expression and independent thinking. FREE REIN Free rein or laissez-faire technique means giving complete freedom to subordinates in this style, manager once determines policies programmes and limitations for action and the entire process is left to subordinates. Group members perform everything and the manager usually maintains contacts with and materials which the groups needs. This type is style is suitable to certain situations where the manager can leave a choice to his group. This helps subordinates to develop independent personality. It tends to permit different units of an organization to proceed at cross-purpose and can degenerate into chaos. ADVANTAGES Positive effect on job satisfaction and morale of subordinates. Maximum possible scope for duty of subordinates Full utilization of the potential of subordinates. DISADVANTAGES Subordinates do not get the guidance and support of the leader. It ignores the manager’s contribution just as autocratic style ignores the contributions of the subordinates. Subordinates may move in different directions and may work at cross purpose which may degenerate into chaos. Free rein style may be appropriate when the subordinates are well-trained, highly knowledgeable; self motivated and ready to assume responsibility. LEADERSHIP STYLES BASED ON SITUATIONAL APPROACH Fielder’s has identified leadership styles on two dimensions: - Task directed Human relations oriented. Task directed styles is primarily concerned with the achievement of task performance. The leader derives satisfaction out of task performance. Human relations styles are concerned with the achieving good interpersonal relations and achieving a position of personal prominence. SITUATIONAL VARIABLES Though there may be many situational factors affecting leadership effectiveness, Fiedler has identified three critical dimensions of situations which affects a leader’s most effective style. There are: - leaders position Task structure Leader member relations Leader’s position power This is determined by the degree to which a leader derives power from the position held by him in the organization which enables him to influence the behavior of others. In the case of the manager, it is authority delegated to him. Fiedler points out that a leader with a clear considerable position power can more easily obtain fellowship them one without such power. Task structure Task structure refers to the degree to which the task requirements are clearly defined in terms of task objectives, processes and relationship with other tasks. When the tasks are clear, the quality of performance can be more easily controlled and group members can be held responsible for performance than task unclear. Leader Member Relations It refers the degree to which followers have confidence, trust and respect in the leader. Fiedler has considered this dimension as the most important for the leader as his position power and task structure are subject to control by the organization and these can be prescribed. However, the leader has to build his relations with the group members on his own. If the group members have positive thoughts about the leader, leadership would be more effective. All these situational variables taken together may define the situational to be favorable and unfavorable. FAVORABLENESS/UNFAVORABLENESS OF SITUATION GoodPoorHighLowHighLowStrongWeakStrongWeakStrongWeakStrongWeak Very favorable very unfavorable A very favorable member relations are good tasks is highly structures and the leader has enormous position power to influence his subordinates. At the other extreme, a very unfavorable situation is one (cell 8) where leader members relations are poor, task is highly instructed and leaders position power is weak. Between these two extremes, the degree of favorableness/unfavorableness varies. RELATION BETWEEN STYLES AND SITUATION Fiedler feels that the effectiveness of leadership style depends on the situation e.g. he says that “The group performance will be contingent upon the appropriate matching of leadership style and degree of favorableness of the group situation for the leader, that is the degree to which the situation provides opportunities to the leader to influence his group members. Appropriateness of leadership styles in different situations. Style leadership Task directed Human relations Very favorable + - unfavorable very unfavorable Favorableness situation Fiedler model of leadership Thus task directed and human relation oriented styles tend to be effective in different situations. Task directed a leadership style tends to be better in groups situations that are either very favorable or very unfavorable to the leader. Human relations oriented leadership style tends to be in group situations that are intermediate in favorableness. The reason for this phenomenon has been provided by Fiedler. He says that “ in the very favorable conditions in which the leader has power, in formal backing and relatively well structured task, the group is ready to be directed and the group expects to be told what to do” The leader who makes a wrong decision in highly unfavorable situation is better off than the leader who makes no decision at all. Similarly, human relations leaders is more effective in intermediate range of favorableness of situation because he can get the work done by using his interpersonal skills more than insisting on the work itself. IMPLICATIONS OF FIEDLER’S MODEL It has been commented that this model is and will probably remain a rich source of leadership and its effectiveness from this view point of organizational implications, Fiedler’s model offers two implications. No leadership style is appropriate for all situations. Therefore, there is nothing like the best style. The managers can adopt the leadership styles according to the requirements of the situation. There is a need of matching leaders and job situations to achieve organizational effectiveness. Fiedler say that “if we wish to increase organizational group effectives, we must learn only how to train leaders more effectively but also how to build organizational environment in which the leader can perform well. LEADERSHIP DEVELOPMENT In management practice, a recent emphasis has been put on leadership development through training and development and by providing conducive work environment. The emphasis is on developing transformational leaders who can take care of changes which are occurring at much faster pace than before. Leadership development involves developing those qualities and attitude in mangers which help them to look into the future and to bring necessary change on proactive basis rather than on reactive basis. Leadership development is a means to an end; end being successful change and competitive advantages; it has to have a context of pay – off. Leadership development should be considered on three levels: - The leadership of the business by the top team (including the explicit operation of the processes of leadership by this group). The leadership of the top team by the CEO (fully including the dynamic of the top team effectiveness. The personal development of individual executives as a leader. INGREDIENTS OF LEADERSHIP DEVELOMENT The ingredients of leadership depend on the characteristics that are critical for success in today’s managerial context. Robertson (2000) indicate that such characteristics are self awareness, knowledge of one’s own motivation, understanding and deploying one’s own core capabilities and understanding how one affect others. All these characteristics help a person in following ways: - A clear sense of capacity for and comfort with risk and change leads an understanding of the role he should play in successful creation of experimental or developmental business elements. A collaborative style, as opposed to one of control or of passive cooperative. Leads to understanding of what is needed to create alliances that work. An understanding of multiple cultures and how to relate to diverse groups of partners, employees and customers leads to the ability to connect and work with a spectrum of styles, including those others find challenging. Knowledge of strength and weaknesses and the areas where the complementary skills and strengths of others can be brought to bear, leads to the ability to let go, in the knowledge that the greater personal strength of another will yield a better results. Greater balance and reflection in life leads to energized workforces, retention of the best and brightest and reduce burnout. Hardness and residence leads to an environment of learning quick recovery from errors, and workforce which can vigorously embrace the risks necessary to create the future. Emotional competence generates and sustains trust, empathy, compassion and moral discernment. LEADERSHIP DEVELOPMENT PROCESS For inculcating the above characteristics, different may be adopted. In each route various steps involved may be different. The following below is the leadership development process. Assess organization’s direction and current state, the speed at which business results must be achieved and implication for leadership. Assess organization’s cultures, define required shifts and create action n plans for leaders to change the culture to enable new business goal to be met. Coach individual executives on personal behavior, actions and communication contrasting what they do today with what is needed tomorrow. Coach executive teams on individual leadership and effective communication strategies for constituencies-board of directors shareholders, employees, union officials customers and suppliers. Create executive communication strategies for constituencies-board of directors, employees, union officials’, customers and suppliers.