LEADERSHIP AND MANAGEMENT STUDY TEXT. ———— TOPIC 3 LEADING AS A FUNCTION OF MANAGEMENT Introduction According to Von Fleet said that leadership is an influence process directed at shaping the behaviours of others. David Shwartz defined leadership as an art of inspiring subordinate to perform their duty willingly, competently and enthusiastically. Leading consists of motivating employees and influencing their behavior to achieve organizational objectives. Leading focuses on managing people, such as individual employees, teams and groups rather than tasks. Though managers may direct team members by giving orders and directing to their team¢faanagers who are successful leaders usually connect with their employees by using interpersonal skills to encourage, inspire and motivate team members to perfornr'o tiie best of their abilities. Managers can foster a positive working environment by identifying moments when employees need encouragement or diféusion and using positive reinforcement to give praise when employees have done:their jobs well Managers usually incorporate different leadership styles and change their management style to adapt to different situations. Examples of situational leadership styles include: * Directing: The manager leads by deciding with little input from the employee. This is an effective leadership style for new employees who need a lot of initial direction and training. * Coaching: The manager is more receptive to input from employees. They may pitch their ideas to employees to work cooperatively and build trust with team members. This style of leadership is effective for individuals who need managerial support to further develop their skills. © Supporting: The manager decides with team members but focuses more on building relationships within the team. This style of leadership is effective for employees who have fully developed skills but are sometimes inconsistent in their performance.DIFFERENCES BETWEEN LEADERSHIP AND MANAGEME! we 10. LEADERSHIP AND MANAGEMENT STUDY TEXT. + Delegating: The leader provides a minimum of guidance to employees more concerned with the vision of the project than day-to-day operatig style of leadership is effective with employees able to work and perfor ig on their own with little guidance. The leader can focus more on high-levet a goals than on tasks. and ig ns. This Management exist only in formal structures while leadership exist in both formal and informal group. Management is wider in scope and it involves performance of the various managerial functions of planning, organizing, controlling, directing/leading ang staffing, while leadership is narrow Managers will have subordinates under them while leaders will have followers, The basis of management is control while th Manage! following the rules and procedures having orders in the organization consigtency and predictability. The leader onthe other hand is concerned with inspit Management can be exe ‘ s while leadership cannot e.g. mange of plant and machinery, botlyhimtan and non-human resources but leadership can only be exercised on humats bal of leadership is trust re concerned with conformit ¢ ahd motivating the workers. ised oif till resoure souret Managers are concerned with maintenance of status quo but leaders concentrate their energy towards approaches of new ideas. Managers use formal authority drawn from the organization structure but leaders may not have formal authority but they have some sort of power that make them leaders Leadership focuses on human interaction while management is concemed with procedures and j results, that is, management seeks compliance while leaders seek willingness, Management focuses on the bottom-line (short term) while a leader’s eye is on the horizon.ATTRIBUTES AND SKILLS OF A GOOD LEADER Strategy + Aclear & compelling plan for the future + Concise & focused objectives + Organizes your time, skills and resources + Is flexible & adaptable to changing environments + Remains open to ideas & opportunities + Willingness to take risks when necessary Confidence Passion + Trusting yourself, your instinct & ability + Having certainty that you will succeed + Remaining focused regardless of circumstances + Making success your dominate thought + Reviewing your most important goals daily + A force that dri + Advances your ability & obje: + Provides the will to tap yourtiue potential + Brings enjoyment to what yait do + Helps achieve what may seem impossible + Isaconsistent trait of successful people & leaders Clarity of Values + The foundation of your ethics & business practices + A specific belief system between right & wrong + Clear fundamental sense of what mportant to you + The moral guide for decisions & leadership + Must be consistent & unwavering + Incorporates everything you do ergy + Perform at a high & consistent energy level + Always remaining healthy, alert & strong, + The force behind your strategy & passion+ Great physical & intellectual energy working together + Fosters the most of your gifts & talents + Must be consistent & maintained daily Teamwork Building organized, efficient & productive teams + Getting the best out of individual people + The ability to work well with others + Creating extraordinary groups & alliances + Finding synergy in every situation Having others that can encourage & support you Communication How we communicate with ourselves & others Always clear on what you want & need Effectively & consistently conveying goals & objectives + Listening to others & showing sincere interest) + Respecting other’s insight & ideas eS Building effective & solid relationships a. DELEGATION 1 a person with authority confers part of that authority to his This is the process by wl juniors to act in certain defined manners. ion Principles of delega 1. Principle of Functional Definition: The more a position or a department has to be undertaken, organization authority delegated clear definitions of activiti and authority and informational relationships with other positions understood, the ‘viduals responsible can contribute toward accomplishing more adequately the indi enterprise objectives. Principle of Unity of Command: This principle states that a subordinate should will give a sense of personal responsibility report only lo single superior. This Multiplicity of bosses leads to confusion, conflict and inefficiency.rity should on Delegation of author inci ion by Expected; Principle of Delegation by Results Expecte Se eet aeasaea Teel the basis of results expected. The authority delegated shot : expected. Ifthe authority is insufficient then results will not be achieved. = Principle of Absoluteness of Responsil The superior remains answerable for the actions of his subordinates. Delegation does not mean abdication of responsibility Principle of Parity of Authority and Responsibility: bear logical relationship with authority delegated. The subordinate should not be burdened with high performance responsibility without delegating enough authority. Similarly, authority should not be delegated without the concerned person being made accountable for its proper use. The parity between authority and responsibility will bo essential for achieving efficiency. . Authority Level Principle: According to Koontz and O'Donnell, maintenance of intended delegation requires that decisions within the authority competence of individuals be made by them and not be referred upward in the organization ‘The responsibility should structure. re . The Scalar Principle: The scalar principle eters to the chain of command relationships from superior to subordinates throughout the organization. The ultimate authority must rest somewhefe» Subordinates must know to whom they should refer the matter if it is beyond\their authority. The clearer the line of authority from top manager tg é¥ely subordinate the more effective will be responsible decision-making, \~ Importance of delegation Delegation hastens the speed of decision making.’ Delegation eases and lessen the managers workload and accord him lime to concentrate on strategic issues thereby increasing managerial effectiveness. ‘The complexity and growth of the organization today requires managers to have certain specialized skills. It therefore becomes important for managers to delegate to the experts. To increase flexibility in the organization. Delegation provides an opportunity for training and developing the employees as it provides the employee with practical learning experienceLEADERSHIP AN D MANAGEME employees. Employees feel motivated as det elegation Delegation motivates ed progression in the organization and allows | allows (hem t, prepares them for upwat utilize their abilities and skil Delegation enables the organizal Delegation results into increased With skills that match the role. es organizational growth. Delegation empowers employees as it allows others become experts at sai aty do even if they surpass your ability. This encourages personal Beri they s nent of ” team members leading to the overall team success. lent of tion to meet the changing conditions efficiency as duties are transferred to People Delegation facilitat Barriers to effective delegation 1. » CRI aS ii. Misunderstanding of delegation, such as, the perception that delegation diminish the authority of the delegating manager va Insufficient definition of the tasks. Micro management which means # of the task but not the authority to se iQhrough. Incompetence of the staff. A Lack of trust. Fear of failure as a result 0 Unwillingness of the su Corporate culture. Belief in the fallacy which mean’ done right he has do to it himself. Fear of the manager been outshone with the subordinates. Fear of exposure of questionable character. that theespperiors transfer the manual asp aspect ing on others. finates to take delegated authority the manager believing that if it has to be Guidelines to effective delegation Clearly define the delegated authority in terms of the specific discretion that can be exercised. Ensure that the scope of work and task is clear. Define the results expected from the subordinates. Let there be an agreement on what is to be done but ‘on the best way to complete the task. let the employee decideHIP AND MANAGEMENT STUDY TEX’ 5, Specify tile employee range of discretion 6 Create a climate of mutual trust 7, _ Beaware of the potential problems as a result of the employees’ self-interest and biases. g, __ Allow the employees to be held accountable for their task 9, Communicate and inform others that delegation has taken place, especially anyone who is likely to be affected by the delegate’s decision 10, _ Establish feedback controls. 11, Consider the capability of the subordinate 12. _ Follow the unity and chain of command. 13. _ Avoid overlaps. 14. _ Allow room for mistakes. < oy RESPONSIBILITY S it’s the duty of the person to complete the tsSR4ssigned to him. A person who is given the responsibility should ensure that heme Onupliaties the tasks assigned to him. If the tasks for which he was held responsible are not completed, then he should not give explanations or excuses. Responsibility without adequate authority leads to discontent and dissatisfaction among the person. Responsibility flows from bottom to top. The middle level and lower level management holds more responsibility. The person held responsible for a job is answerable for it. [fhe performs the tasks assigned as expected, he is bound for praises. While if he doesn’t accomplish tasks assigned as expected, then also he is answerable for that. ACCOUNTABILITY Means giving explanations for any variance in the actual performance from the expectations set. Accountability cannot be delegated. For example, if “A” is given a task with sufficient authority, and “A” delegates this task to B and asks him to ensure that task is done well, responsibility rest with "B’, but accountability still rest with "A’. The top level management is most accountable. Being accountable means being innovative as the person will think beyond his scope of job. Accountability, in short, means beingL ‘ADERSHIP AND MANAGEMENT STUDY TE answerable for the end result. Accountabilit responsibility. can’t be escaped. It arises fi For achieving delegation, a manager has to work in a system and has to perform following steps : - 1, Assignment of tasks and duties 2. Granting of authority 3. Creating responsibility and accountability POWER, AUTHORITY AND ACCOUNTABILITY Definition of concepts ee right to give orders and exert + Authority is the right to exercise pow obedience. os + Power is the ability to exert influgr¢h 6% a person, object on situation. + Responsibility is the oir «Delegation is the process by“eshich a person who has authority confers part of that authority to his junior to Ay him act in certain defined manners. iced on a person who occupies a given position. ‘+ Accountability is the requirement to give an explanation to your superiors for failure to fulfill your responsibility. Sources of managerial power 1. Legitimate power: This is the power that derived from the position that one occupies in the organizational hierarchy. 2. Reward power: This is the power that is derived from the ability of the influencer to reward the influence for compliance. The reward may be monetary or non- monetary. This power base is appropriate where the manager intends to encourage positive competition among the j_ employees. 3. Coercive power: This power base is based on fear, intimidation and threat. It is derived from the ability of the influencer lo punish or reprimand the influence for non-compliance. The power base is appropriate where the employees are uncooperative.= Referent power: with leaders. It is t is the power that is based on the follower’s identification ‘d on the influences desire to want to be like or to be associated with the influencer, 5. SExpert power/Technical authority: This is the power that is derived from Specific knowledge and expertise of the influencer such that the influencers advice is sought out and taken as an order, 6. Charismatic [rower: This is power that is derived from inherent traits or talents such as interpersonal style, speaking ability etc, The qualities endear other people who will want to be associated with such a leader. 7. Association power: This is the power that is derived from associating with someone who has power. AUTHORITY In context of a business organization, authority can béGefined Person to use and allocate the resources efficient] lake decisions and to give orders so as {0 achieve the organizational objectives. Authority must be well- defined. All people who have the authority should know what‘ th? scope of their authority is and they shouldn't misutilize it, Authority is the fleht to give commands, orders and get the things done. The top level management hardest authority Authority always flows from top Se It explains how a superior gets work done from his subordinate by clearly explaining what is expected of him and how he should go about it. Authority should be accompanied with an equal amount of responsibility. Delegating the authority to someone else doesn’t imply escaping from accountability. Accountability still rest with the person having the utmost authority. the power and right of a Delegation of authority is the base of superior-subordinate relationship, it involves following steps:- 1. Assignment of Duties - The delegator first tries to define the task and duties to the subordinate. He also has to define the result expected from the subordinates. Clarity of duty as well as result expected has to be the first step in delegation. 2. Granting of authority - Subdivision of authority takes place when a superior divides and shares his authority with the subordinate. It is for this reason, every subordinate should be given enough independence to carry the task given to himLEADERSHIP AND MANAGE by his superiors. The managers at all levels delegate authority and power which i attached to their job positions. The subdivision of powers is effective results. 3. Creating Responsibility and Accountabi end once powers are granted to the subordinates. They at the sa obligatory towards the duties assigned to them. Responsibility is said to be the factor or obligation of an individual to carry out his duties in best of his ability as per the directions of superior. Responsibility is very important, Therefore, iis thy which gives effectiveness to authority. At the same time, responsibility is absolute and cannot be shifted. Accountability, on the others hand, is the obligation of the | individual to carry out his duties as per the standards of performance. Therefore, it is said that authority is delegated, responsibility is created and accountability is imposed. Accountability arises out of responsibility and responsibility arises out of authority. Therefore, it becomes important that with every authority position an important to get - The delegation process does not time have to , equal and opposite responsibility should be attached. ‘Therefore every manager,i.e.the delegator has to fala system to finish up the delegation process. Equally important is the de geibe’s role which means his responsibility and accountability is attached syith the authority over to here. 3 Relationship between Authority Responsibility ‘Authority is the legal right of person or superior to command his subordinates while accountability is the obligation of individual to carry out his duties as per standards of performance Authority flows from the superiors to subordinates,in which orders and instructions are given to subordinates to complete the task. It is only through authority, a manager exercises control. In a way through exercising the control the superior is demanding accountability from subordinates. If the marketing manager directs the sales supervisor for 50 units of sale to be undertaken in a month. If the above standards are not accomplished, it is the marketing manager who will be accountable to the chief executive officer. Therefore, we can say that authority flows from top to bottom and responsibility flows from bottom to top. Accountability is a result of responsibility and responsibility is result of authority. Therefore, for every authority an equal accountability is attached.LEADERSHIP AND MANAGEMENT STUDY TEXT —_—_—_——— pifferences between Authority and Responsibility Responsibili iperior | It is the obligation of subordinate to Tis the legal right of a person oras is subordinates. ___| perform the work assigned to him, js attached to the position ofa | Responsibility arises out of superior- subordinate relationship in which to command hi ‘Authority superior in concer, subordinate agrees to carry out duty given to him, Authority can be delegated by a superior to | Responsibility cannot be shifted and is a subordinate a absolute Teflows from top to bottom. Z It flows from bottom to top. : Centralization and Decentralization ~ tion is said to be a process where thé cOrieentration of decision making isin a at the lower level, all subjects and Central few hands. All the important decision and ction ‘actions at the lower level are subject to she abproval of top management. According to the systematid and consistent reservation of authority at central Allen, “Centralization’ points in the organization. The impiation of centralization can be == 1. Reservation of decision making power at top level. 2. Reservation of operating authority with the middle level managers. 3, Reservation of operation at lower level at the directions of the top level. t and key decisions are taken by the top management and the other levels are into implementations as per the directions of top level. For example, in a business concern, the father & son being the owners decide about the important matters and all the rest of functions like product, finance, marketing, personnel, are carried out by the department heads and they have to act as per instruction and orders of the two people. Therefore in this case, decision making power remain in the hands of father & son. Under centralization, the importan ion of authority at all levels On the other hand, Decentralization is a systematic delegati in of management and in all of the organization. In a decentralization concer, authority retained by the top management for taking major decisions and framing pol a ‘Page 61LEADERSHIP AND MANAGEMENT STUDY TEXT. concerning the whole concern. Rest of the authority may be delegated to the middle level and lower level of management. The degree of centralization and decentralization will depend upon the amount of authority delegated to the lowest level. According to Allen, “Decentralization refers to the systematic effort to delegate to the lowest level of authority except that which can be controlled and exercised at central points. Decentralization is not the same as delegation, In fact, decentralization is all extension of delegation. Decentralization pattern is wider is scope and the authorities are diffused to the lowest most level of management. Delegation of authority is a complete process and takes place from one person to another. While decentralization is complete only when fullest possible delegation has taken place. For example, the general manager of a company is responsible for receiving the leave application for the whole of the concern. ‘The general manager delegates this work to the personne! manager who is now responsible for receiving the leave applicants. In this situation delegation of authority has taken place. On the other hand, on the request of theeisonnel manager, if the general manager delegates this power to all the departme(fRa) Reads at all level, in this situation decentralization has taken place. There is a sayihg that “Everything that increasing the role of subordinates is decentralization and that decreases the role is centralization”. Decentralization is wider in scope ae responsibility increase in this case. On the other hand, in delegatigh tie managers remain answerable even for the acts of subordinates to their superiot Implications of Decentralization 1. There is less burden on the Chief Executive as in the case of centralization. 2. In decentralization, the subordinates get a chance to decide and act independently which develops skills and capabilities. This way the organization is able to process reserve of talents in it. 3. In decentralization, diversification and horizontal can be easily implanted. 4, In decentralization, concer diversification of activities can place effectively since there is more scope for creating new departments. Therefore, diversification growth is of a degree. 5, In decentralization structure, operations can be coordinated at divisional level which is not possible in the centralization set up. 6. In the case of decentralization structure, there is greater motivation and morale of the employees since they get more independence to act and decide.7. Ina decentralization structure, co-ordination to some extent HIP AND MANAGE is difficult to maintain. ss, ‘ ega imum as there are lot many department divisions and authority is delegated to maxim possible extent, i.e., to the bottom most level delegation reaches. Cent tralization and decentralization are the categories by which the pattern of authority relationships became clear. The degree of centralization and de-centralizatio yn can be affected by many factors like nature of operation, volume of profits, number of departments, decentralization set up is suitable in it Delegation and Decentralization ze of a concern, etc. The larger the size of a concern, a superior delegates the powers to the subordinates on individlual bases. A Basis Delegation Decentralization Meaning Managers delegate some of their | Right to take decisions is shared by function and authority to their top management and other level of subordinates. anagement. Scope ‘Scope of delegation is limited a&}5"p Scope is wide as the decision making is shared by the subordinates also. Responsibility Responsibility renin of the managers and ednitot be delegated Responsibility is also delegated to subordinates. Freedom of _ | Freedom is not given to the Freedom to work can be maintained Work subordinates as they have to work | by subordinates as they are free to as per the instructions of their take decision and to implement it. superiors. Nature. It is a routine function It is an important decision of an enterprise. Need on Delegation is important in all Decentralization becomes more purpose concems whether big or small. No | important in large concerns and it enterprises can work without depends upon the decision made by delegation. the enterprise, it is not compulsory. Grant of The authority is granted by one __| It is a systematic act which takes Authority individual to another. place at all levels and at all functions ina concern. Grant of Responsibility cannot be delegated | Authority with responsibility isResponsibility | delegated to subordinates Degree Degree of delegation varies from concem to concern and department to department. Decentralization is t al by nature spreads throughout the orga s Niza ice. at all levels and all functiong Process Delegation is a process which explains superior subordinates relationship It is an outcome which explains relationship between top management and all other departments. Essentiality Delegation is essential of all kinds of concerns Decentralization is a decisions function by nature. Significance Delegation is essential for creating the organization Decentralization is an optional poi at the discretion of top managemen, Withdrawal Delegated authority can be taken back. Itis considered as a general policy top management and is applicable II departments. Freedom of Action Very little freedom to the ‘onsiderable freedom subordinates re) A S Ss