12. Management

12. Management

12.1 necessity and importance of Management

 "Management is the art of getting things done through other people"

(Mary Parker Follet)

 "Management is the process of planning, organizing, leading and controlling the work of organization members and of using all available organizational resources to reach stated organizational goals"

(James A. F. Stoner and Freeman)

“Management” is the process of working with and through others to achieve organizational objectives in a changing environment. Central to this process is the effective and efficient use of limited resources.

(Robert Kreitner)

According to the above definitions, Management can be broadly defined as follows.

“Management is an effective process of planning, organizing, leading and controlling of the resources of an organization efficiently and effectively to achieve the stated goals and objectives of an organization in a dynamic business environment.”

Concepts that are in the definition

 Dynamic Business Environment

The internal and external environments that are constantly subjected to change in various situations are known as dynamic business environment.

 Institute / Organization

A union of people who work together to fulfill a certain goal or goals can simply be introduced as an organization. Institutions/organizations function in order to achieve goals and objectives as well.

Goals and Objectives.

The results that an institute expects to attain in the long run can be introduced as goals, and if the result of such a broad goal of an organization in a more specified manner, that can be said as an objective.

Business Resources.

Everything that is used as an input in business activities is known as resources. These resources can be classified in various ways.

 

 Men

 Money

 Materials

 Machines                      7 Ms

 Methods

 Market

 Minute/Time

 Concepts

 Customers

 Human Resources  Physical Resources  Financial Resources  Information Resources  Time Resources

 Land  Labor  Capital  Entrepreneurship

Effectiveness

Effectiveness explains how far the organization is achieving its expected objectives correctly. In other words, selecting the right thing or “doing the right thing” is effectiveness.

 Efficiency

Obtaining a maximum output using minimum resources in achieving goals and objectives is known as efficiency.“Doing the thing right is efficiency.”

The relationship between efficiency and effectiveness can be shown as follows.

Doing correct thing	Doing the correct way	Doing the incorrect way
	Effective Efficient	Effective Inefficient
Doing the incorrect thing	Ineffective Efficient	In effective Inefficient

Productivity

The relationship between the input and output of a firm in a specific time is productivity. That can be calculated as flows.

Productivity   =  Output

                           Input

When the effectiveness and efficiency are achieved highly, the productivity will also be higher. That means there is an positive relationship. Similarly, if the right thing takes place in the right way, the productivity of the firm will automatically be secured.

 Process

A group of activities, connected to one another, with continuity in them is referred to as a process. Accordingly, the management is also a process. The management process consists of the functions of planning, organizing, leading and controlling.

Management is required for the accomplishment of goals and objectives of organizations as well as individuals.

In the following manner, the management influences the accomplishment of the goals and objectives of individuals.

1.      To achieve the expectations of individuals just as anticipated by them.

2.      To control the economic conditions (income, expenditure) of individuals in the right way.

3.       To manage time.

4.      To improve efficiency.

Management influences the accomplishment of the goals and objectives of organizations in the following manner.

1.      To maximize profits.

2.      To fulfill social welfare.

3.      To expand market.

4.      To increase the market share.

5.      To determine the future direction of the business.

6.      To plan the activities of the business.

7.      To measure the successfulness of the business.

8.      To distribute limited resources among various divisions.

9.      To make individuals engage in the activities of the organization.

Importance of Management can be stated as follows.

1.      To achieve the organizational goals and objectives successfully.

2.      To utilize limited resources efficiently and effectively.

3.      To respond the dynamic business environment successfully.

4.      To assure the long term existence of the business by facing the competition successfully.

5.      To face successfully the complex situations created due to expansion of the firm.

6.      To fulfill the expectations of the interested parties of the organization at a maximum satisfactory level.

7.      To face problems successfully and make correct decisions.

8.      To act so as to fulfill the social responsibilities of a business.

12.2 Analyses various management roles of a manager

The manager is the person who involves in planning, organizing, leading and controlling in order to achieve the goals and objectives of the business.He will utilize resources efficiently and effectively through the management process.

According to Henry Mintzberg, 10 managerial roles can be classified under the following three headings.

1.      Interpersonal Roles

2.      Informational Roles

3.      Decisional Roles

A table that consists of the above roles, sub roles and the functions relevant to them is given below.

Main roles	Sub roles	Functions that belong to the role and examples
Interpersonal roles	Figure head	The symbolic head as well as the nominal head that engages day to day activities socially and legally Examples : Welcoming guests, signing the legal documents, addressing meetings.
	Leader	Motivating and directing subordinates in order to achieve the organizational goals. Examples: Evaluating the work of subordinates, stating mixed reviews, evaluating performance, and training subordinates.
	Liaison	Maintaining relationships with various parties and organizations. Examples: Maintaining relationships with customers, suppliers, trade associations and community.
Informational roles	Monitor	Searching and getting various internal and external information that helps to understand the environment and organizations well Examples: Written-Newspapers, annual report  Verbal- Discussions with planners, customers and other managers.
	Disseminator	Distributing information which has been taken internally and externally among the internal members of the organization to make correct decisions. Examples : Share holders' meetings, Telephone calls, reports
	Spokes person	Providing information to external parties representing the organization, Examples : Press conferences, share holders' meetings.
Decisional roles	Entrepreneur	Making changes within the organization in order to match with changing environmental conditions. Examples: Organizing new programs and developing strategies, introducing new project processes.
	Disturbance handler	Taking actions to face unexpected situations successfully. Examples: Facing the conditions such as strikes, breaching of the contracts, consumer complaints and shortage of raw materials etc...
	Resource allocator	Allocating resources among various departments of the organization. Example: Allocating own time for subordinates, distributing the resources of the organization among the divisions.
	Negotiator	Acting as an arbitrator in the event of internal and external conflicts, representing the organization at important discussions. Examples: Taking steps to build up Industrial Relationship, associating with government agencies.

12.3 Various management levels and management skills relevant to them

 Managers can be positioned in various managerial levels in an organization. Managers can be depicted under three levels based on legitimate power or authority.

·      Top Managers – (chairman , deputy chairman , directors)

·      Middle Managers – (operational managers, marketing manages)

·      First - Line Managers – (supervisors, foreman, office managers)

Top Managers

The managers who manage the top level functions of the organization are known by this. They determine the future direction of the whole organization, and their responsibility extends to overall organization.

·      Establishment of goals and objectives of the organization.

·      Determining the strategies and policies.

·      Deciding the overall process of the organization.

·      Monitoring the activities of middle level managers.

Middle Managers

The managers who perform as heads of main divisions or departments of an organization are known by this. These are the managers who transform the strategic decisions developed by the top management in to operations decisions required for the first line managers. These middle managers are responsible for the functions performed by the first – line managers. The middle managers engage in the following functions.

·      Co-ordinating between top level and middle level managers.

·      Implementing the plans, strategies and policies developed by the top management.

·      Providing top management with information required for making decisions.

·      Monitoring and controlling the activities of the first - line managers.

First - Line Managers

The managers who directly contact with non - managerial employees and are in the first - line of the organizational structure are known by this. They are responsible for implementing the plans and reccomondations of top or middle level managers.

The first - line managers engage in the following functions.

·      Implementing the plans and orders of the top and middle level managers.

·      Monitoring and controlling the activities of the non - managerial employees.

Robert L. Katz has introduced three types of skills that should be possessed and developed by managers of various managerial levels of the organizational structure.

I. Conceptual Skills

II. Human Skills ( interpersonal skills)

III. Technical Skills

Conceptual Skills

The mental ability to analyze new ideas emerging from complex situations are known as conceptual skills. Things such as the vision regarding the internal and external environment of an organization, comprehension, the ability for holistic approach, ability to understand and solve problems, foresight, the ability of astute intelligence and the ability to explain as a process are considered as conceptual skills.

Human skills

The ability of a manager to understand others, to work with them co – operatively, to get the work done through others and to treat humanely are known as human skills.

Technical skills

 The exclusive knowledge, experience, and ability that a manager should possess to conduct a function in a specialized field are known as technical skills.

 There is a relationship among various managerial levels and the skills that the managers of each level should possess.

	Top level managers	Middle level managers	First line
Conceptual skills
Human skills
Technical skills

Since the managers in every level have to work with individuals and groups, human skills are equally important to all the managerial levels.

1.       Since the first line managers directly connect with the duties of employees they need more technical skills.

2.      Since the top managers analyse new ideas emerging from complex situations and make decisions they need more conceptual skills.

3.      Though the skills comparatively possessed by various management levels are shown above, to make a manager's role successful, possession of all these three skills is very important.

Management is a process consisting of four basic managerial functions.

1. Planning

2. Organizing

3. Leading

Controlling

 Management process can be depicted in a diagram as follows.

Planning is the process of establishing of goals and objectives which a firm expects to accomplish, and establishing of relevant strategies to achieve them.

Organizing is the process of allocating resources, delegating authority and distribution of work in order to achieve the organization's goals and objectives efficiently and effectively. In other words, organizing is the formation of a formal relationship between human and physical resources or the co-ordination of various resources and duties of the organization to attain its goals and objectives.

Leading is the process of influencing, motivating and making employees aware of the necessary activities to get them engaged in those activities to achieve organization's goals and objectives.

Controlling is the process of examining if the plans are being implemented so as to achieve the goals and objectives of a firm and if there are deviations, identifying them to take corrective action,

12.5 A formal method to make decisions

When an actual state of affairs differs from a expected state of affairs, it is known as a problem.

 Selecting the most suitable alternative among alternatives is known as a decision.  Accordingly, decision making is a process of identifying alternative solutions, actions to solve a certain problem and selecting the most suitable alternative among them.

 Either the problem is simple or complex, it is the manager's duty to give solution for that problem.  Accordingly, the decision making is fundamental in every function that a manager performs.

The steps of decision making are mentioned below.

·      Identifying the problem clearly.

·      Analyzing the problem.

·      Formation of alternative solutions.

·      Evaluating alternative solutions ( Analyzing).

·      Selecting the best alternative.

·      Making a plan to implement the best alternative.

·      Evaluation and feedback.

·      Identifying the problem accurately and certainly is very important.

The problem should be analyzed by examining it deeply. It is easy to make a decision on the most suitable solution by developing many alternative solutions.

 After developing various alternatives, each should be evaluated examining the strengths and weaknesses of them. At the end of the evaluation of alternatives, the best actionable solution to the problem, that matches with the goals and the available resources, should be selected.

When selecting the best alternative, a special concentration should be placed on the facts such as the acceptability, affordability, practicability, legality and morality of that alternatives.

 A plan should be prepared for the selected alternative in the way that solves the problem. The step of implementation means not only commanding according to the actions taken to solve the problem, but also the functions like obtaining resources and distributing them among various individuals and tasks and preparation of budgets etc..

The step of evaluation and feedback means the inquiry to see if the solution for the problem has been obtained as planned and if there are any deviations, taking necessary feedback actions for them.

12.6  Prepares plans to achieve goals effectively

Definitions presented on "planning".

 The process of establishing goals and a suitable course of action for achieving those goals.

                                                                                             (Stoner, Freeman & Gilbert)

Deciding the goals and objectives of an organization and preparing how to meet them.

                                                                                                               (G. A. Cole)

The main activities of the planning process.

·      Establishing aims / Establishing goals.

·      Identifying objectives & strategies.

·      Environment Analysis.

·      Resource Analysis.

·      Identifying opportunities & threats.

·      Identification and analysis of performance gap.

·      Making strategic decisions and preparation of the plan.

·      Implementing strategies / implementing plans.

·      Measuring the success and controlling.

1.      Understanding the vision and the mission of the organization and establishment of goals required to make them a reality should be done.

2.      Objectives and strategies that match with the existing mission and goals should be identified. Here, the policies, actions, rules and regulations and programs are determined.

3.      Identification of the opportunities and threats which influence in the achievement of the objectives of the organization and identification of strengths, weaknesses will be done in environmental analysis. Here a SWOT analysis can be done.

4.       Analyzing which resources are required to achieve goals and objectives of the organization is done in resource analysis. Similarly, the strengths and weaknesses that the organization possesses compared to that of current and future competitors are also analyzed here. (financial management and the abilities of employees etc…)

5.        After the environmental analysis and the resource analysis, identification of opportunities clearly that the organization can have, and identification of threats (changes in the market, rules and regulations, technology, competitors’ behaviors) will be done.

6.      Identification of how far the current situation influence to achieve the expectations and identification of the changes that should be done in accordance with that is known by gap analysis.

7.      Selection of the most suitable strategies through identifying and evaluating the alternatives is the strategic decision making.

8.      The matching active plan should be prepared and implemented

9.       The successfulness of the implemented plan should be reviewed regularly. Accordingly, examining if the performance takes place as planned and if not making changes in the planning process should also be done

 Accordingly, a well prepared plan should consist of the following facts.

·      Vision

·      Mission statement

·      Goals / Aims

·      Policies

·      Strategy

·      Procedures

·      Rules

·      Programs

·      Projects

Vision

This can be mentioned as a statement that guides the entire organization and that compresses the entire affairs of the organization. This is a statement prepared by the owners or the heads of an organization.

Mission statement

This is a statement that explains the vision widely further, that guides the individuals of the organization to perform and that distinguishes its organization from the affairs of the other organizations. This decides the nature and the direction of an organization.

A mission statement answers the following questions.

·         Why does an organization exist?

·         What is its mission?

·         What does it do?

·         What does it expect to reach in the future?

·         The factors that should be included when preparing a mission statement.

·         Target customers

·         Nature of the business

·         Market

·         Expected growth, survival

·         Values, beliefs and philosophies

·         Significance of the business (significance that distinguishes it from other businesses)

·         Public image

·         Social and environmental friendliness

·         Employees

·         Technology in use

Goals

The prospections that an organization expect to fulfil in the long run is known as goals. The goals further explain the vision and the stated mission.

Objectives

he short term prospections that are expected to be fulfilled is known as objectives. The objectives are revealed as quantitative measures in connection with time.  The characteristics of a business objectives (SMART)

·         Specific

·         Measurable

·         Achievable/Action based

·         Realistic / Rational

·         Time bounded

 Policies

The indexes that guide the way of conducting affairs when achieving the established goals and objectives are known as policies.

Strategy

The strategies point out what should be done to realize vision, mission, goals and objectives.

Procedures

A set of steps established to follow, for the fulfillment of a certain task can be introduced as procedures. This shows the way of doing things that are established through policies in a specified manner.

Rules

This is an index prepared to explain the things to be done and not to be done specifically when fulfilling a task.

Program

This is an explanation of the resources required for a specific task and the way of employing them through dividing them into main and sub sections.

 Projects

This is a task with a specific beginning and an end, prepared for solving a specific problem/issue.

 Principles to be followed in preparing plans.

1.      They should be based on clearly stated goals and objectives

2.      Specific time duration

3.      Practicability

4.      Flexibility

5.      Easy to understand by employees of every level

6.      Priority - Prepared prior to other managerial functions in an integrated manner.

7.      Participation and commitment of managers of every level are required.

8.      Efficiency - Ability to gain advantages over cost.

The importance of planning has emerged due to following reasons.

·         To face future uncertainties and dynamic environments successfully.

·         To use resources efficiently.

·         To facilitate controlling.

·         To give managers an opportunity to think about the future of the organization through planning.

·         To direct and integrate other functions of management.

·         To ensure the continuity and the growth of the organization.

·         To evaluate current and future competition.

·         To motivate other parties and get them acknowledged.

 Some of the problems and limitations emerged in planning are stated below.

·         Application of incorrect and inadequate information

·         Preparing plans based on the past trends and existing data

·         Preparing plans beyond the ability and the capacity.

·         Insufficient interest and dedication in preparing the plan.

·         Not getting the involvement the employees of all levels.

·         Not receiving the co-operation of employee to implement the plan..

·         Believing that the plan will work as expected after being implemented

·         Plans not being integrated to the entire management system.

·         Inadequate knowledge about the planning

·         Feeling that the planning is pointless.

12.7 necessity of organizing for a successful  management

Organizing is the process of allocating work, authority, and resources among an organization's members so as to achieve the organization's goals efficiently and effectively.

                                            (Stoner, Freeman & Gilbert)

Steps of organizing can be stated as follows

·         Recognizing of the tasks

·         Division of work

·         Departmentalization

·         Delegation of authority and responsibility

·         Determining the standards of work

·         Allocation of resources

·         Co-ordination

Recognizing of the tasks

 The first step to be done in organizing is the identification of functions to be performed and job designing to achieve the goals of the organization.

Division of work

Dividing the total work load into small and simple tasks so as to make them easy for each employee to perform is meant by division of work. In other word, conducting the division of work. Division of work leads towards job specialization There are advantages as well as disadvantages in job specialization.

Advantages	Disadvantages

Departmentalization.

The process of grouping the jobs using the common features of the tasks of an organization is meant by departmentalization.

 The bases on which departmentalization can be performed.

·         Functional basis

·         Product basis

·         Consumer basis

·         Geographical basis

·         Mixed basis

·         Process basis

·         Matrix base

 Delegation of authority and responsibility

 Authority - The right to perform many functions, to command, or to distribute resources is known as authority, this is something that can be delegated by one to another within the organization. A legitimateness is there to be seen in the authority for various posts.

Responsibility -  Responsibility is the necessity to perform for the fulfillment of a certain task or the manager being bounded to fulfill that task with the authority.

Determining the standards of work

Explaining of what, how and when, which are relevant to working procedures is known as standardization of work.

Allocation of resources

 The provision of required resources, in required quantities, at required times to perform the functions of an organization is meant by allocation of resources.

Co - ordination

The process of integrating the work and objectivesin separate units in order to achieve the goals of the organization efficiently is meant by co - ordination.

 An organization can achieve its objectives easily, by properly performing all the functions related to organizing.

The importance of the organizing for the success of an organization

1.      It assists in achieving the goals and objectives of an organization

2.      It being a base to implement the plans successfully.

3.      Ability to improve the productivity because of the job specialization comes up from division of work.

4.      Ability to get the works relevant to the posts done successfully through delegation of authority and responsibilities.

5.      Ability to get the maximum use of the resources through allocating resources required to perform the functions.

6.      A co-ordination is created among individuals, groups and departments since directing all organizational activities towards its goals.

12.8 The concepts to be considered at successful organizing

Chain of command

The unbroken way of the authority from the top management to the first – line management of an organization is known as the chain of command.

Unity of command

The principle that a certain employee should be responsible for one and only supervisor is known as the unity of command.

Span of control

The number of subordinates directly report to a particular manager is known as the span of control / span of management The span of control can be categorized as narrow and wide.

Authority

The legitimate power that a manager of an organization receives for operating various functions, for commanding or for distributing the resources is known as authority

Power

The formal authority received by an individual in accordance with his status or the position and in addition, the abilities received through other ways are also known as "power"

 There are several sources of power

·         Legitimate power received on the post (Authority Power)

·         Expert Power

·         Reward Power

·         Coercive Power

·         Referent Power

While the sources of power that an individual specially a manager receives can be depicted as above, some experts believe that those sources of power can be classified into two. That is the power received on the post and the power received on the person.

They argue that while legitimate power, received on the coercive power and corrosive power depend on the post, the other sources of power depend on the person.

According to the way that the authority is vested,( divided)  organizations can be recognized as centralized or decentralized.

Centralization

When all decision making power is centered with the top management of the firm that is known as centralization.

Some advantages and limitations of limitations of centralization are mentioned below.

Advantages	Limitations
·         Decision making being fast ·         Having a unity in decision making ·         Control being easy ·         Communication being easy ·         Cost being reduced	·         Difficulty in executing the decisions ·         Employee motivation being decreased and dissatisfaction being increased. ·         Minimizing the chances of very successful decision making.

Decentralization

When the power of decision making is assigned from top management to the first line management that is known as decentralization

Some advantages and limitations of decentralization are mentioned below

Advantages	Limitations
·         The duty of top management being reduced ·         Ability to make quality decisions ·         Ability to implement decisions easily ·         Subordinates being developed ·         Employees' motivation being increased and satisfaction being grown.	·         Decision making being late ·         High cost

Organizational structure

 An organizational structure is a sketch that is prepared so as to create an inter - relationship among various sections, posts and parts of an organization.

Organizational structure is the way that the posts, tasks, authority, responsibilities and accountability are distributed and co - ordinated.

The  principles that  are depicted through an organizational structure

·         Unity of Command

·         Chain of Command

·         Span of Control

·         Centralization or Decentralization

·         Job Specialization

·         Rules and Procedures

·         Co -ordination

·         The Hierarchy

Organizational chart

The chart that depicts the way that various departments or functions are divided is known as organizational chart

An organizational chart can be presented in various ways.

Vertical Organizational Chart

Horizontal Organizational Chart

Circular Organizational Chart

Though the way that the posts, functions, authority and responsibilities of a formal organization are distributed can be depicted in a formal organizational structure and in a organizational chart, the informal organizational relationship within a organization cannot be depicted so.

Informal organizations are some formations that automatically created within the formal organizations based on the intimacy of the inter-relationship among the members of an organization and on common needs of them. While these are also known as informal groups, few members of formal groups may also belong to this.

 The managers should acknowledge that the informal organizations are generated from within the formal organizations and their functioning course for the existence and the development of the organization. Therefore, the arms of informal organizations and the way they are related to the arms of formal organization should be inquired.

12.9 Characteristics of leadership

The process of directing the individuals who implement the plans that mangers have prepared to the necessary tasks and also influencing them through encouraging and assisting them when the managers make their decisions realized for the fulfillment of the objectives and goals of an organization can be interpreted as leading.

The process of leading consists of three major functions.

·         Leadership

·         Motivation

·         Communication

Motivation is required for directing the individuals of an organization to the goals, Leadership is required for directing the members of a group to work in unity and communication is required to co - ordinate all the activities.

The ability to influence the behavior of an individual or a group with the purpose to achieve goals of a particular organization is meant by leadership.

                                                                                                                ( Albert & Khedoorm )

Leadership of the process of directing and influencing the task-related activities of group members.

                                                                                                       (Stoner, Freeman and Gilbert)

Leadership is the thing that connects the plans of the organization with the skills of subordinates of the organization.

Accordingly, the necessity of the leadership to an organization can be point out according to the following facts.

1.      To get the active participation of all in order to reach the vision and the mission of the organization.

2.       To motivate employees towards higher performance.

3.       To co – ordinate and direct the activities of employees of various departments.

4.      To maintain a proper communication with various departments of the organization.

5.      To control the affairs of the organization according to the required standards.

6.       To assure self confidence and good mental wellbeing of subordinates.

7.       The leadership can be discussed. as the leadership and the management leadership.

8.      Point out the differences between a leader and a manager.

There are few conditions need to be completed to accept someone as a leader. The leader having the ability to influence the subordinates over a subordinate having the ability to influence the leader. Accepting him as their leader by subordinates.

Leadership Styles

While the way that the leaders perform, differ in the process of influencing their subordinates, those behavioral patterns are referred to as leadership styles. There are two bases on which the leadership styles can be categorized.

1. According to the way leaders perform

1.      Autocratic Leader

2.      Democratic Leader

3.      Laissez – Faire Leader

2. According to the behavioral style of the leader.

1.      Task oriented Leader

2.      Employee oriented Leader

 According to the way leaders perform

Autocratic Leader

 The leader that perform according to his own decisions without considering the ideas of subordinates is the Autocratic Leader. The autocratic leader retains the authority centralized. He gets the works done through subordinates by giving orders. To avoid penalty, subordinates follow those commands obediently. While  the employees are influenced by orders, the priority is given to production rather than employees. These kind of leaders don't get the participation of the subordinates in taking decisions. He always follows his method. This style can be said suitable when need to make a decision for the entire organization promptly.

Democratic Leader

The leader that performs considering the ideas of subordinates is the Democratic Leader. The democratic leader decentralize the authority. He gets the participation of subordinates in taking decisions. He makes arrangements to obtain the participation of employees at determining the goals and at deciding the methods of performing tasks. At this, the employees in the first –line management level get motivated and respect others' opinions. Because of collective decision making, it will be easy to implement those decisions and there will be a collective bond among all the parties.

Laissez – Faire Leader

The leader that gives the highest liberty to subordinates in performing task is the Laizze - Faire Leader. These kind of leaders provide a complete liberty to subordinates to make decisions. These kind of leaders influence much less their group. Things to be decided and to be done take place without the influence of the leader. This leadership style is important when there are highly experienced and highly expertise subordinates.

According to the behavioral Style of the leader.

 Task Oriented Leader

The behavior of this leader is focused towards, the increasing of the production by somehow and getting the works done successfully. The concentration is much placed on getting the works assigned to employees done rather than their career development or their personal satisfaction. By following various penalty methods, the leader also engages in performing tasks directly

Employee Oriented Leader

These kind of leaders focus much on motivating employees rather than controlling them. They maintain a friendly, faithful as well as a respectful relationship with employees. Most of the time, they obtain employees participation in making decisions. Through the leaders are classified according to the way leaders perform or according to the behavioral style of the leader, the situational leadership also has come up when inquired which leadership style suits the most.

Situational Leadership

This means that the manager, having properly studied the leadership situation, should select a suitable leadership style for each situation.

When properly studying the leadership situation, the concentration should be placed on through the factors such as the characteristics of the manager, the characteristic of subordinate, the characteristic of the task and the influence of the organization.

 Few leadership qualities that should be in a successful leader

·         Pleasingness

·         High personality characteristics

·         Intelligence

·         Self Confidence

·         Physical & Mental fitness

·         Self discipline

·         Determination

·         Dedication

12.10 How motivation helps to the success of process of leading.

The process of encouraging employees to achieve specific objectives is meant by motivation.

                                                                                                               William Scott

Persuading employees of an organization to get maximum contribution of them their willingly and with self-satisfaction can be known as motivation.

Few reasons for the importance of motivation as a function of leading process are stated as follows.

·         Ability to increase the employee productivity

·         Creating good employer employee relationship

·         Increase in goodwill of the organization

·         Decrease in employee absenteeism

·         Ability to get advantages from special skills and talents of employees.

·         Ability to get the maximum use of resources available

·         Ability to achieve goals & objectives of the institute

·         Generating a satisfied team of employees

·         Reduction in waste in resources

·         Employee turnover is decreased since the prevention of leaving off of the employees.

The institute follows various motivation methods to motivate employees for work. These can be classified under two parts.

1. Financial motivation methods

2. Non - Financial motivation methods

Financial Motivation Methods

Non – Financial Motivation Methods

1.      Salary (various salary methods can be introduced ) 2.      Provision of share ownership 3.      Provision of bonuses 4.      Provision of loan facilities 5.       Provision of products of institution at concessionary prices 6.      Production allowances

1.      Training employees 2.      Promoting employees 3.      Provision of job security 4.      Establishment of an appropriate working environment 5.      Provision of health facilities, housing, meals and uniforms 6.      Getting the employee contribution in management affairs 7.      Organizing fun tours 8.      Evaluation of employees 9.      Provision of awards 10.  Production allowances 11.  Empowering of employees.

12.11 How communication helps to the success of leading process.

 Exchanging information between two or more parties with clear understanding is known as communication.

The importance of communication

·         To prepare plans for establishing goals and objectives of an organization

·         To organize well the activities of the firm

·         To get required information to make decisions

·         To manage human resource

·         To implement the overall control activities of the firm

·         To create a transparency of all the activities of the firm

·         Bonding most of the day today activities of managers to communication

The communication can take place in a organization in the following manner

 Vertical Communication

1.      Top to bottom

2.      Bottom to top

 Horizontal Communication

Vertical communication -  The communication that takes place from top to bottom and from bottom to top in an organizational hierarchy is known as vertical communication.

 The communication that flow in the organizational hierarchy from top level managers to first line managers or to subordinates is known as top to bottom communication.

 The communication that flow in the organizational hierarchy from first line managers or from subordinates to top level managers / executives is known as bottom to top communication.

 Communication that takes place within various departments, working groups or the similar positions in problem solving as well as in co - ordinating the affairs in an organization is known as horizontal communication.

Formal communication.

The clear accepted communication method that takes place in a reporting form with transparency and flows in the official hierarchy of the organization is known as formal communication.

That is to say, the systematic and organized communication which flows from top to bottom, bottom to top and horizontally is known by this. The flow of the formal communication is shown in the organizational chart.

Informal communication

The communication that takes place beyond the official hierarchy of the organization, officially unaccepted and without transparency is known as informal communication.

In other words, the exchange of information in addition to the formal communication is known by this. There are advantages as well as disadvantages to a business organization from informal communication.

There are advantages as well as disadvantages to an organization from informal communication

Advantages	Disadvantages
1.      Faster than formal communication 2.       Fulfillment of individual, social and mental requirements. 3.      Ability to reveal true information which is very difficult to get to know 4.       An advance preparation for decision making	1.      Most of the time the increase in communication of ultra information. 2.       Getting a misunderstanding 3.       Adversely affecting the goodwill

There is an ability for a business organization to disclose problems earlier and to know answers and ideas for some problems because of informal communication. Similarly, the informal communication facilitates to disclose financial fraudulent etc.....that takes place in a firm. There is a possibility of disclosing disciplinary problems as well.

12.12 The necessity and importance of controlling to achieve the expected goals

Controlling

Comparing the actual performance with planned performance of an organization, identifying the variances if any and taking necessary actions to correct them can be said as controlling.

 The process that is followed to ascertain if he expected goals and standards of an organization are actually fulfilled is known as controlling.

The importance of the controlling process can be listed as follows.

·         Ability to protect the quality of the product

·         Ability to minimize the cost

·         Ability to minimize faults or make it zero

·         Ability to match in accordance with environmental changes.

·         Ability to observe the progress of the organization and to correct the faults.

·         Ability to ascertain that the performance of the institute is carried out in anexpected level.

The steps of controlling can be listed as follows.

·         Establishment of standards

·         Measure the Performance

·         Recognize deviations

·         Take corrective actions

·         The steps of controlling can be depicted in the following diagram.

 

Establishment of standards means, setting criteria in order to compare actual performance in future.

If actual performance tally with the standards, then the performance can be said to be satisfactory.  If there are any deviations between actual results and standards, necessary steps should be taken to correct them.

Several techniques of controlling (types of control ) are mentioned below.

1.      Feed forward control

2.      Concurrent control

3.      Feedback control

Feed forward control

 Feed forward control is a technique used to avoid disadvantageous results and their unfavorable damages that may cause in the future on the performance of an organization.

Examples:

·         Correct maintenance of machinery

·         Training the employees

Concurrent control

Steps taken to prevent deviations occur during the activities take place can be known as concurrent control

Examples:

·         Quality control conducted in the process of manufacturing;

·         The process of internal auditing

·         Stock control

·         .

Fed back control

Fed back control is the taking of corrective actions for the deviations between the expected performance and the actual performance of the firm. Having he process been taken place, if there is a deviation by the end of it, that is corrected once found, In this feedback control, the process of controlling start at the end of the task.

·         Taking steps to repair a machine of a factory, it having been inactive