UNIT- 3: Staffing and Controlling (Part 1)

 Part 1- Staffing

Meaning/Concept of Staffing:

After organising the business functions, staffing involves matching the jobs with people. While organising creates jobs, staffing makes people suitable to jobs. Staffing deals with appointing people and placing them at the appropriate jobs. It is “filling, and keeping filled, positions in the organisation structure.”

Staffing is related to performing a set of activities which aim at inviting, selecting, placing and retaining individuals at various jobs to achieve the organisational goals. It involves determining the need for people at various organisational posts, appointing and retaining them at those posts by training and developing their abilities and skills. This is done by performing a number of functions like manpower planning, recruitment, selection, training and development, performance appraisal, compensation and maintenance. Staffing comprises several sub-functions: 

    (a) Manpower planning involving determination of the number and the kind of personnel      required.

(b)   Recruitment for attracting adequate number of potential employees for jobs in the enterprise.

(c)   Selection of the most suitable persons for the jobs under consideration.

(d)   Placement, induction and orientation.

(e)   Transfers, promotions, termination and layoff.

(f)   Training and development of employees.

 

Nature of Staffing

The following features explain the nature of staffing:

1.    Management Function: Staffing is a management function that appoints people at different positions to run the organisation. While organising creates departments and positions, staffing ensures that people with desired skills and abilities occupy these positions to contribute to organisational goals.

2.   Pervasive Function: People are appointed at all levels (top, middle, low) in all functional areas (production, finance, marketing, personnel). Staffing ensures that right persons are appointed at the right job so that organisation can efficiently achieve its objectives.

3.   Part of Human Resource Management: Human resource management ensures that competent people perform organisational activities. It deals with the set of organisational activities that attract, develop and maintain an effective workforce. The requirements of human resource management are filled through staffing as staffing appoints people at the desired jobs.

4.    Deals with Active Resource: Staffing deals with the most important resource (people) that converts inactive resources (raw materials) into productive outputs. It deals with the live resource (people) without whom resources would remain as resources only not output.

5.    Attached with Personnel Department: Functions of staffing; recruitment, selection, training and appraisal of subordinates of all departments are performed by managers at all levels as all departments need people to function. In performing these functions, managers seek assistance of the personnel department.

6.   Continuous Function: Staffing is a continuous managerial function. People keep leaving and joining the organisations. Departments and organisations grow and, therefore, need for people keeps arising. Hiring, training and compensating people (staffing) are, therefore, continuously performed by managers.

Need for / Objectives of Staffing:

Staffing provides manpower to the organisation. In the changing, dynamic environment where organisational size is increasing, technology is developing and human behaviour is becoming complex, staffing function has become important. Need for staffing explains the objectives of staffing. These objectives are as follows:

1.     To achieve organisational objectives by recognising it’s most valuable resource; work force.

2.     To increase loyalty and commitment of workers towards individual and organisational goals.

3.    To select people with suitable qualifications to fill organisational posts.

4.     To increase skills of people on-the-job by providing training facilities.

5.     To develop abilities of the staff to assume jobs of higher skill, competence and responsibility.

6.     To establish adequate compensation for people by providing them monetary and non-monetary incentives. This promotes active contribution to organisational objectives.

7.      To reconcile individual, organisational and social interests by maintaining efficient system of communication in the organisation.

8.     To provide physical working conditions (lighting, ventilation, recreation facilities etc.) to maintain employees’ commitment to jobs.

9.      To maintain record of achievements so that managers can make policies with respect to transfers, promotions and demotions.

10.   To maintain an environment of teamwork and innovation.

 

Importance of Staffing:

Staffing function is important for the following reasons:

1.    Emphasis on Human Element: Human force is the most important, primary and productive asset of the organisation which carries out the functions and productive activities of various departments.. “If you want productivity and financial reward that goes with it, you must treat your workers as your most important asset.” — Thomas Peters and Robert Waterman

2.   Facilitates Leadership: Well conducted staffing function provides leadership facilities so that individuals can satisfy their personal goals along with organisational goals. Employee turnover has become a matter of concern for many companies at higher levels as talented workforce is always on the look-out for better job opportunities. Staffing also ensures that the posts remain filled.

3. Motivation to Work: Financial rewards do not always motivate the employees. Their acceptance and recognition by managers are also strong forces of motivation. When emphasis is placed on human element in the organisation, people are motivated to contribute to goals of the organisation.

4. Increase in Efficiency: Since staffing helps to place the right person, with the right knowledge, at the right place and the right time to perform the organisational activities, efficiency of the organisation increases. If people are not competent to do their jobs, organisational goals will not be fully achieved..

5.  Develops Potential Managers: Recruiting and selecting people with the best potential, compensating and training them to develop future managers facilitates movement of managerial abilities from lower to higher levels of the organisation.

6. Competitive Advantage: In the era of globalisation, every enterprise faces tough competition from national and international competitors. A well-staffed organisation provides management sound policies and procedures for adapting to the environment and face competition. The fast changing technology can be adopted by organisations only if the manpower is trained to do so.

Part 2- Motivating (Staffing)

Concept:

Motivation has been defined by Michael J Juicus as "the act of stimulating someone or oneself to get a desired course of action".

 

In the words of Lewis Allen, "Motivation is the work a manager performs to inspire, encourage and impel people to take required action".

 

In the words of C. B. Memorial - Motivation is - "a willingness to expend energy to achieve a goal or reward. It is a force that activates dormant energies and sets in motion the action of the people. It is the function that kindles a burning passion for action among the human beings of an organization".

 

Motivation is a process by which a need or desire is aroused and a psychological force within our mind sets us in motion to fulfill our needs and desire. An unsatisfied need becomes the motive for a person to spend his energy in order to achieve a goal. In a business organization the 4 P's praise, prestige promotion and pay are the best positive motivators.

 

Nature of Motivation

·         Motivation is Related to Needs: Needs are deficiencies which are created whenever there is a physiological or psychological imbalance. In order to motivate a person, we have to understand his needs that call for satisfaction.

·         Motivation Produces Goal-Directed Behaviour: Goals are anything which will alleviate a need and reduce a drive. An individual's behavior is directed towards a goal.

·         Motivation can be either Positive or Negative: Positive or incentive motivation is generally based on reward. According to Flippo -"positive motivation is a process of attempting to influence others to do your will through the possibility of gain or reward". Negative or fear motivation is based on force and fear. Fear causes persons to act in ascertain way because they are afraid of the consequences if they don't.

Importance of Motivation in Organisational Behaviour

The Importance of motivation is manager's primary task to motivate others to perform the tasks of the organization. Therefore, the manager must find the keys to get subordinates to come to work  regularly and on time, to work hard, and to make positive contributions towards the effective and efficient achievement of organizational objectives. Motivation is an effective instrument in the hands of a manager for inspiring the work force and creating confidence in it. By motivating the work force, management creates "will to work" which is necessary for the achievement of organizational goals. The various benefits of motivation are:-

i.      Motivation is one of the important elements in the directing process. By motivating the workers, a manager directs or guides the workers' actions in the desired direction for accomplishing the goals of the organization.

ii.      Workers will tend to be as efficient as possible by improving up on their skills and knowledge so that they are able to contribute to the progress of the organization by increasing productivity.

iii.      Sometimes, organizational effectiveness becomes a question of management's ability to motivate its employees, to direct at least a reasonable effort towards the goals of the organization.

iv.          For performing any tasks, two things are necessary. They are:

·        ability to work and

·        Willingness to work.

The willingness to work can be created only by motivation.

v.      Motivation contributes to good industrial relations in the organization. When the workers are motivated, contented and disciplined, the frictions between the workers and the management will be reduced.

vi.      Motivation is the best remedy for resistance to changes. But if the workers of an organization are motivated, they will accept, introduce and implement the changes whole heartily and help to keep the organization on the right track of progress.

vii.     Motivation facilitates the maximum utilization of all factors of production, human, physical and financial resources and thereby contributes to higher production.

viii.     Motivation promotes a sense of belonging among the workers. The workers feel that the enterprise belongs to them and the interest of the enterprise is their interests.

Types of Motivation

If a manager wants to get work done by his employees, he may either hold out a promise of a reward (positive motivation) or he may install fear (negative motivation). Both of these types are widely used by managements.

Positive or Incentive Motivation: This type of motivation is generally based on reward. A positive motivation involves the possibility of increased motive satisfaction. According to Flippo - "Positive motivation is a process of attempting to influence others to do your will through the possibility of gain or reward". Incentive motivation is the "pull" mechanism. The receipt of awards, due recognition and praise for well done definitely lead to good team spirit, co-operation and a feeling of happiness.

Positive motivation include:-

1. Praise and credit for work done
2. Wages and Salaries
3. Appreciation
4. A sincere interest in subordinates as individuals
5. Delegation of authority and responsibility

Negative or Fear Motivation: This type of motivation is based on force and fear. Fear causes persons to act in a certain way because they fear the consequences. Negative motivation involves the possibility of decreased motive satisfaction. It is a "push" mechanism. The imposition of punishment frequently results in frustration among those punished, leading to the development of a hostile state of mind and an unfavorable attitude/behaviour to the job.

 

Theories of Motivation:

1.     
Maslow’s Need-Hierarchy Theory of Motivation

According to Abraham Maslow, a U.S psychologist, man is a wanting animal. He has a variety of wants or needs. All motivated behaviour of man is directed towards the satisfaction of his needs. The theory postulated that people are motivated by multiple needs, which could be arranged in a hierarchy.

Maslow offers a general theory of motivation called the 'need hierarchy theory.

The features of his theory are as follows:-

1.     People have a wide range of needs which motivate them to strive for fulfillment.

2.     Human needs can be definitely categorized into five types:

• Physical needs,
• Safety or security needs,
• Affiliation or social needs,
• Esteem/respect needs and
• Self-actualisation needs.

2.     These needs can be arranged into a hierarchy. Physical needs are at the base whereas self- actualisation needs are at the apex.

3.    

People gratify their physical needs first, when the need is satisfied, they feel the urge for the next higher level need.

4.     Relative satisfaction of lower level need is necessary to activate the next higher level need.

5.     A satisfied need does not motivate human behaviour. It only triggers or activates the urge for the next higher level of needs.

 

In order to comprehend the full meaning of Maslow’s theory, it is necessary to understand the deficit and progression principles.

Deficit Principle: According to Maslow, once a need is fairly well satisfied, it is no longer a stronger motivator of behaviour. People are motivated to satisfy only those needs that are perceived to be deficient.

Progression Principle: Maslow contends that the five categories of needs exist in a hierarchy. A need at a given level is not activated until the need directly below it is fairly well gratified. Thus, the person is expected to progress step-by-step up the need hierarchy.

 

The need-hierarchy theory must not be viewed as a rigid structure to be applied universally in all situations. The hierarchy represents a typical pattern that operates most of the time.

 

Maslow’s Hierarchy of needs

Hertzberg's Theory of Motivation

Hertzberg developed a theory of motivation on the premise that human nature has two separate elements - The motivators and maintenance factors. According to this theory of motivation the items that determine job content are considered motivational factors e.g.:- Achievement, recognition, responsibility, advancement and the work itself. The elements that influence the job context are the hygiene or maintenance factors e.g.:-company policy, salary, inter-personal relations, working conditions etc. They must be adequate and if they are absent or inadequate, they will create dissatisfaction.

a. Hygiene Factors: Hygiene factors represent the need to avoid pain in the environment. They are not an intrinsic part of a job, but they are related to the conditions under which a job is performed. They are associated with negative feelings. They must be viewed as preventive measures that remove sources of dissatisfaction from environment. Hertzberg believed that hygiene factors created a zero level of motivation and if maintained at proper level prevents negative type of motivation from occurring.

Thus, hygiene factors, when absent, increase dissatisfaction with the job. When present, help in preventing dissatisfaction but do not increase satisfaction or motivation.

b.     Motivators: Motivators are associated with positive feelings of employees about the job. They make people satisfied with their job. Motivators are necessary to keep job satisfaction and job performance high. On the other hand, if they are not present they do not prove highly satisfying. Motivational factors or satisfiers are directly related to job content itself, the individual's performance of it, its responsibilities and the growth and recognition obtained from it. Motivators are intrinsic to the job

Thus, when motivators are absent, prevent both satisfaction and motivation. When, motivators are present, they lead to satisfaction and motivation.

To apply the two-factor theory to the workplace, Hertzberg suggests a two-step process

i.         The supervisor should attempt to eliminate the hygiene factors that are found to be more basic than factors that lead to satisfaction.

ii.      Once dissatisfies have been somewhat neutralized, the supervisor may be able to motivate workers through the introduction of motivational factors.

 

Motivation to work is very complex. There are many internal and environmental variables that affect the motivation to work. Behavioral scientists started to search new facts and techniques for motivation. These theories are termed as theories of motivation. The most important theories are explained below.

 

McGregor’s Theory X and Theory Y

Different styles of management have a different bearing on the motivation of workers in the organization. The style adopted by a manager in managing his subordinates is basically dependent upon his assumption about human behaviour. Theory X is negative, traditional and autocratic style while Theory Y is positive, participatory and democratic. Thus, the salable describe contrasting set of assumptions about human nature.

Douglas McGregor has classified the basic assumption regarding human nature into two parts and has designated them as 'theory X’ and 'theory Y'.

 

His idea that a manager’s attitude has an impact on employee motivation was originally proposed   by Douglas McGregor, a management professor at the Massachusetts Institute of Technology during the 1950s and 1960s. In his 1960 book, The Human Side of Enterprise, McGregor proposed two theories by which managers perceive and address employee motivation. He referred to these opposing motivational methods as Theory X and Theory Y management. Each assumes that the manager’s role is to organize resources, including people, to best benefit the company. However, beyond this commonality, the attitudes and assumptions they embody are quite different.

 

Theory X

According to McGregor, Theory X of management assumes the following:

·       Work is inherently distasteful to most people, and they will attempt to avoiD work whenever possible.

·        Most people are not ambitious, have little desire for responsibility, and prefer to be directed.

·        Most people have little aptitude for creativity in solving organizational problems.

·         Motivation occurs only at the physiological and security levels of Maslow’s hierarchy of needs.

·         Most people are self-centered. As a result, they must be closely controlled and often pressurized to achieve organizational objectives.

·         Most people resist change.

·         Most people are innocent and unintelligent.

Essentially, Theory X assumes that the primary source of employee motivation is monetary, with security as a strong second. Under Theory X, one can take a hard or soft approach to getting results.

 

Theory Y

The higher-level needs of esteem and self-actualization are ongoing needs that, for most people, are never completely satisfied. As such, it is these higher-level needs through which employees can best be motivated.

In strong contrast to Theory X, Theory Y of management makes the following assumptions:

·         Work can be as natural as play if the conditions are favorable.

·         People will be self-directed and creative to meet their work and organizational objectives if they are committed to them.

·         People will be committed to their quality and productivity objectives if rewards are in places that address higher needs such as self-fulfillment.

·         The capacity for creativity spreads throughout organizations.

·         Most people can handle responsibility because creativity and ingenuity are common in the population.

·         Under these conditions, people will seek responsibility.

Under these assumptions, there is an opportunity to align personal goals with organizational goals by using the employee’s own need for fulfillment as the motivator. McGregor stressed that Theory Y of management does not imply a soft approach.

McGregor recognized that some people may not have reached the level of maturity assumed by Theory Y and may initially need tighter controls that can be relaxed as the employee develops.

If Theory Y holds true, an organization can apply the following principles of scientific management to improve employee motivation:

·         Decentralization and delegation: If firms decentralize control and reduce the number of levels of management, managers will have more  subordinates  and  consequently need to delegate some responsibility and decision making to them.

·         Job enlargement: Broadening the scope of an employee’s job adds variety and opportunities to satisfy ego needs.

                   ·         Participative management: Consulting employees in the decision-making                            process taps their creative capacity and provides them with some control over                         their work environment.

·         Performance appraisals: Having the employee set objectives and participate in the process of self-evaluation increases engagement and dedication.

If properly implemented, such an environment can increase and continually fuel motivation as employees work to satisfy their higher-level personal needs through their jobs.

 

Ouchi’s Theory Z

During the 1980s, American business and industry experienced a tsunami of demand for Japanese products and imports, particularly in the automotive industry. Why were U.S. consumers clambering for cars, televisions, stereos, and electronics from Japan? Two reasons:

    (1)   high-quality products and 

    (2) low prices. 

    The Japanese had discovered something that was giving them the competitive edge. The     secret to their success was not what they were producing but how they were managing         their people—Japanese employees were engaged, empowered, and highly productive.

Management professor William Ouchi argued that Western organizations could learn from their Japanese counterparts. Although born and educated in America, Ouchi was of Japanese descent and spent a lot of time in Japan studying the country’s approach to workplace teamwork and participative management. The result was Theory Z—a development beyond Theory X and Theory Y that blended the best of Eastern and Western management practices. Ouchi’s theory first appeared in his 1981 book, Theory Z: How American Management Can Meet the Japanese Challenge. The benefits of Theory Z, Ouchi claimed, would be reduced employee turnover, increased commitment, improved morale and job satisfaction, and drastic increases in productivity.

Theory Z stresses the need to help workers become generalists, rather than specialists. It  views job rotations and continual training as a means of increasing employees’ knowledge of the company and its processes while building a variety of skills and abilities. Since workers are given much more time to receive training, rotate through jobs, and master the intricacies of the company’s operations, promotions tend to be slower. The rationale for the drawn-out time frame is that it helps develop a more dedicated, loyal, and permanent workforce, which benefits the company; the employees, meanwhile, have the opportunity to fully develop their careers at one company. When employees rise to a higher level of management, it is expected that they will use Theory Z to “bring up,” train, and develop other employees in a similar fashion.

Ouchi’s Theory Z makes certain assumptions about workers. One assumption is that they seek to build cooperative and intimate working relationships with their coworkers. In other words,

employees have a strong desire for affiliation. Another assumption is that workers expect reciprocity and support from the company. According to Theory Z, people want to maintain a work-life balance, and they value a working environment in which things like family, culture, and traditions are considered to be just as important as the work itself. Under Theory Z management, not only do workers have a sense of cohesion with their fellow workers, they also develop a sense of order, discipline, and a moral obligation to work hard. Finally, Theory Z assumes that given the right management support, workers can be trusted to do their jobs to their utmost ability and look after for their own and others’ well-being.

Theory Z also makes assumptions about company culture. If a company wants to realize      the benefits described above, it need to have the following:

·         A strong company philosophy and culture: The company philosophy and culture need to be understood and embodied by all employees, and employees need to believe in the work they’re doing.

·         Long-term staff development and employment: The organization and management team need to have measures and programs in place to develop employees. Employment is usually long-term, and promotion is steady and measured. This leads to loyalty from team members.

·         Consensus in decisions: Employees are encouraged and expected to take part in organizational decisions.

·         Generalist employees: Because employees have a greater responsibility in making decisions and understand all aspects of the organization, they ought to be generalists. However, employees are still expected to have specialized career responsibilities.

·         Concern for the happiness and well-being of workers: The organization shows sincere concern for the health and happiness of its employees and  their families. It  takes measures and creates programs to help foster this happiness and well-being.

·         Informal control with formalized measures: Employees are empowered to perform tasks the way they see fit, and management is quite hands-off. However, there should be formalized measures in place to assess work quality and performance.

·         Individual responsibility: The organization recognizes the individual contributions but always within the context of the team as a whole.

Theory Z is not the last word on management, however, as it does have its limitations. It can be difficult for organizations and employees to make life-time employment commitments. Also, participative decision-making may not always be feasible or successful due to the nature of the work or the willingness of the workers. Slow promotions, group decision-making, and life-time employment may not be a good fit with companies operating in cultural, social, and economic environments where those work practices are not the norm.

Part 1- Leadership (Staffing)

Meaning/concept of Leadership

Leadership is the ability of a manager to induce subordinates to work with confidence and zeal. Peter F Drucker considers "leadership" as a human characteristic which lifts a man's vision to higher sights, raises a man's performance to higher standards and builds man's personality beyond its normal limitations.

 

Leadership is a great quality and it can create and convert anything. There are many definitions of leadership. Some of the definitions of leadership are re produced below:-

According to the Encyclopedia of the Social Sciences - "Leadership is the relation between an individual and a group around some common interest and behaving in a manner directed or determined by him".

According to Peter Drucker - Leadership "is not making friends and influencing people i.e. salesmanship. Leadership is the lifting of man's vision to higher sights, the raising of man's performance to higher standards, the building of man's personality beyond its normal limitations".

According to Louis A Allen - "A leader is one who guides and directs other people. He gives the efforts to his followers a direction and purpose by influencing their behaviour".

From the above definitions we can conclude that leadership is a psychological process of influencing followers (subordinates) and providing guidance, directing and leading the people in an organization towards attainment of the objectives of the enterprise.

 

Importance of Leadership

The importance of leadership in an organization cannot be denied. People working in an organization need individuals (leaders) who could be instrumental in guiding the efforts of groups of workers to achieve goals and objectives of both the individuals and the  organization. The leader guides the action of others in accomplishing these tasks. A good leader motivates his subordinates, creates confidence and increases the morale of the workers. In the words of Peter F Drucker - "Good leadership is a must for the success of a business but the business leaders are the scarcest resources of any enterprise". 

The following points highlight the importance of leadership:-

1.     Leadership is the process of influencing the activities of an individual or a group towards the achievement of a goal.

2.     An effective leader motivates the subordinates for higher level of performance.

3.     Leadership promotes team - spirit and team - work which is quite essential for the success of any organization.

4.     Leadership is an aid to authority. A leadership helps in the effective use of formal authority.

5.     Leadership creates confidence in the subordinates by giving them proper guidance and advice.

 

Traits/Functions of a leader:

According to Peter Drucker - "An effective leader is one who can make ordinary men do extra- ordinary things, make common people do uncommon things.

 

Leadership is a lifting of a man's sights to a higher vision, the raising of man's standard to a higher performance, the building of a man's personality beyond its normal limitations." This view point of Peter Drucker stresses the leaders' obligation to attain organizational goals and gives attention to the needs of the individuals who are his subordinates.

The important functions of a business leader may be briefly summarized as follows:-   

1. To take the initiative: A leader initiates all the measures that are necessary for the purpose of ensuring the health and progress of the undertaking in a competitive economy. He should not expect others to guide or direct him. He should lay down the aims and objectives, commence their implementation and see that the goals are achieved according the predetermined targets.
2. He identifies group goals: A leader must always help the group identify and attain their goals. Thus, a leader is a goal setter.
3. He represents the organization: A leader represents the organization and its purpose, ideals, philosophy and problems to those working for it and to the outside world .In other words, leaders is true representative of the entire organization.
4. To assign reasons for his action: It is a delicate task of leaders to assigns reason to his every command. He has to instruct things in such a way that they are intelligible to all concerned and their co-operation is readily forthcoming.
5. To interpret: He interprets the objectives of the organization and the means to be followed to achieve them; he appraises his followers, convinces them, and creates confidence among them.
6. To guide and direct: It is the primary function of the leader to guide and direct the organization. He should issue the necessary instructions and see that they are properly communicated.
7. To encourage team work: A leader must try to win the confidence of his subordinates. He must act like the capital of a team.
8.  He manages the organization: Last, but not the least, he administers the undertaking by arranging for the forecast, planning, organization, direction, coordination and control of its activities.

 Leadership Styles (Likert's Systems of Management):

Leadership style refers to the behaviour pattern adopted by a leader to influence the behaviour of his subordinates for attaining the organizational goals. As different leadership styles have their own merits and demerits, it is difficult to prefer one leadership styles to another. The selection of  a leadership style will depend on the consideration of a number of factors. Tannenbaum and Schmidt have pointed out the important factors that affect the choice of a style of leadership. They are:-

• Forces in the manager i.e., the manager's personality, experience and value system.
• Forces in the subordinates i.e., the subordinates readiness for making decisions, knowledge, interest, need for independence etc.
• Forces in the situation i.e., complexity of the problem, pressure of time etc.

Tannenbaum & Schmidt Model

Tannenbaum and Schmidt have described the range of possible leadership behavior available to a manager. Each type of action is related to the degree of authority used by the boss and to the degree of freedom available to his subordinates in reaching decisions.

 Leadership Styles

1.  The Manager makes decision and announces it: It is an extreme form of autocratic leadership where by decisions are made by the boss who identifies the problem, considers alternative solutions, selects one of them and then reports his decision to his subordinates for implementation.

2.   The Manager sells his decisions: It is a slightly improved form of leadership where in the manager takes the additional step of persuading the subordinates to accept his decision.

3. The Manager presents his ideas and invites questions: There is greater involvement of the employees in this pattern. The boss arrives at the decision, but provides a full opportunity to his subordinates to get fuller explanation of his thinking and intentions.

4.  The manager presents a tentative decision subject to change: Herein the decision is tentatively taken by the manager but he is amenable to change and influence from the employees.

5.     The manager may present the problem, get the suggestions and then take his own decision: Herein sufficient opportunity is given to the employees to make suggestions that are coolly considered by the Manager.

6.   The Manager may permit full involvement of the subordinates in the decision making process: It is often designated as 'Democratic' leadership.

7.     The Manager may define the limits and request the group to make a decision: A  manager of this style of management lets the group have the right to make the decision. The subordinates are able to take the decision to the limits defined by the manager.

Managerial Grid

The leader is expected to play many roles and therefore, must be qualified to guide others to organizational achievement. Although no set of absolute traits or skills may be identified, the individuals who possess abilities to lead others must have certain attributes to help them in performing their leadership rolls. In a broad way the skills which are necessary for an industrial leader may be summarized under four heads:-

• Human skill
• Conceptual skill
• Technical skill and
• Personal skill.

Human Skill

A good leader is considerate towards his followers because his success largely depends on the co- operation of his followers. He approaches various problems in terms of people involved more than in terms of technical aspects involved. A leader should have an understanding of human behaviour. He should know people; know their needs, sentiments, emotions, as also their actions and reactions to particular decisions, their motivations etc.

Thus, a successful leader possesses the human relations attitude. He always tries to develop social understanding with other people. The human skill involves the following:-

a.      Empathy: A leader should be able to look at things objectively. He should respect the rights, belief and sentiments of others. He should equip himself to meet the challenges emanating from the actions and reactions of other people. The leader should be empathetic towards his followers so that he can carefully judge their strengths, weakness, and ambitions and give them the attention they deserve.

b.     Objectivity: A good leader is fair and objective in dealing with subordinates. Hemust be free from bias and prejudice while becoming emotionally involved with the followers. His approach to any issue or problem should be objective and not based on any pressure, prejudice or preconceived notions. Objectivity is a vital aspect of analytical decision making. Honesty, fairplay, justice and integrity of character are expected of any good leader.

c.      Communication Skill: A leader should have the ability to persuade, to inform, stimulate, direct and convince his subordinates. To achieve this, a leader should have good communication skill. Good communications seem to find all responsibilities easier to perform because they relate to others more easily and can better utilize the available resources.

d.     Teaching Skill: A leader should have the ability to demonstrate how to accomplish a particular task.

e.      Social Skill: A leader should understand his followers. He should be helpful, sympathetic and friendly. He should have the ability to win his followers confidence and loyalty.

Conceptual Skill

In the words of Chester Barnard -"the essential aspect of the executive process is the sensing of the organization as a whole and the total situation relevant to it". Conceptual skills include -

a.      The understanding of the organization behaviour,
b.     Understanding the competitors of the firm, and
c.      Knowing the financial status of the firm.

A leader should have the ability to look at the enterprise as a whole, to recognize that the various functions of an organization depend upon one another and are interrelated, that changes in one affect all others. The leader should have skill to run the firm in such away that overall performance of the firm in the long run will be sound.

Technical Skill

A leader should have a thorough knowledge of, and competence in, the principles, procedures and operations of a job. Technical skill involves specialized knowledge, analytical skill and a facility in the use of the tools and techniques of a specific discipline. Technical competence is an essential quality of leadership.

Personal Skill

The most important task of the leader is to get the best from others. This is possible only if he possesses certain qualities. These personal skills include-

a.      Intelligence: Intellectual capacity is an essential quality of leadership. Leaders generally have somewhat higher level of intelligence than the average of their followers.

b.     Emotional Maturity: A leader should act with self-coincidence, avoid anger, take decisions on a rational basis and think clearly and maturely. A leader should also have high frustration tolerance. According to Koontz and O'Donnell - "Leaders can not afford to become panicky, unsure of themselves in the face of conflicting forces, doubtful of their principles when challenged, or amenable to influence".

c.      Personal Motivation: This involves the creation of enthusiasm within the leader himself to get a job done. It is only through enthusiasm that one can achieve what one wants. Leaders have relatively intense achievement type motivational drive. He should work hard more for the satisfaction of inner drives than for extrinsic material rewards.

d.     Integrity: In the words of F.W Taylor - "integrity is the straight forward honesty of purpose which makes a man truthful, not only to others but to himself; which makes a man high-minded, and gives him high aspirations and high ideals".

e.      Flexibility of Mind: A leader must be prepared to accommodate others view points and modify his decisions, if need be. A leader should have a flexible mind, so that he may change in obedience to the change in circumstances. Thomas Carle has said - "A foolish consistency is the hobgoblin of a little mind".

In sum, a leader must have a dynamic personality, intellectual attainment, amiable dis position, unassuming temperament and knowledge of how to deal with his followers.

Difference between Leadership and Management: Leadership is different from management. The main differences between these two terms are:-

1.     A manager is required to plan, organize, direct and control. But a leader is one who gets others to follow him.

2.     A manager depends on his authority. But a leader depends on his confidence and good will. He inspires enthusiasm.

3.     Management is concerned with the formulation of broad policies to guide the operations of an enterprise. But leadership is concerned with the initiation of action for the accomplishment of the goals.

4.     An individual is a leader in the true sense if he is accepted as a leader by the group. A manager is appointed and he derives his authority by virtue of his office.

5.     Management is associated with the organized structure. But leadership may be associated with unorganised groups.