CHAPTER 6

COMMUNICATING,
CONTROLLING,
AND LEADING
LAGANSON
LEGASPI
COMMUNICATING
“a process of sharing information through symbols, including
words and message”
-Morris Philip Wolf and Shirley Kuiper
may happen between superior and subordinate, between
peers, between a manager and a client or customer, between
an employee and a government representative, etc.
may be done face-to-face, or through printed materials, or
through an electronic device like the telephone, etc.
in management, communication must be made for a purpose
and because it has a cost attached to it, it must be used
effectively
 FUNCTIONS OF

COMMUNICATION
on emotive function information function motivation function c

feelings are communication

information provided
essed in the oftentimes used
through communication
tion, employees means to moti
may be used for decision-
cted by anxiety, employees to co
making at various work
n turn, affects themselves to
levels in the organization
formance. organization’s obj
 FUNCTIONS OF

COMMUNICATION
information function motivation function control function emo

when prop
communication is also
mation provided communicated
oftentimes used as a
h communication policies and pla
means to motivate
used for decision- roles, clarify d
employees to commit
g at various work authorities
themselves to the
n the organization responsibilities. E
organization’s objectives.
control is, then, f
 FUNCTIONS OF

COMMUNICATION inform
on motivation function control function emotive function

when properly
unication is also when feelings
communicated, reports,
imes used as a repressed in
policies and plans define
ns to motivate organization, em
roles, clarify duties,
yees to commit are affected by a
authorities and
mselves to the which, in turn, a
responsibilities. Effective
ation’s objectives. performanc
control is, then, facilitated
 FUNCTIONS OF

COMMUNICATION
unction control function emotive function information function

hen properly
when feelings are
unicated, reports, information pr
repressed in the
s and plans define through commu
organization, employees
s, clarify duties, may be used for
are affected by anxiety,
uthorities and making at vario
which, in turn, affects
nsibilities. Effective levels in the org
performance.
is, then, facilitated
 COMMUNICATION SENDER

develops idea

encodes

then
transmits
message
PROCESS

to

RECEIVER

who receives
message

decodes

accepts
or
rejects then
provides
feedback
to
 COMMUNICA SENDER
they carefully crafts the
message

develops
idea
PROCE

encodes
 COMMUNICA develops
idea
most important step in
effective communication
encodes
PROCES

then
transmits
message
to
 OMMUNICAT encodes
the method of
transmission should be
then determined in advance
so that the idea may be
transmits
PROCESS

encoded to conform with

message the specific requirements
to of the identified method

RECEIVER
 OMMUNICATIO then after encoding, the
message is now ready for
transmits transmission through the
PROCESS

message use of an appropriate

to communication

RECEIVER

who receives
 MMUNICATIO RECEIVER
PROCESS
actual receiving of the message
by the intended receiver

who receives
message

decodes
 MUNICATION who receives
PROCESS
message
may be initially received by a
machine or by a person
decodes

accepts
or
PROCESS
UNICATION decodes
translating the message from the
sender into a form that will have
meaning to the recipient

accepts
or
rejects then
provides
feedback
 NICATION
OCESS
the next step is for the receiver
to accept or reject the
accepts message. Sometimes,
acceptance (or
or rejection) is partial
rejects then
provides
feedback
to
factors that will affect the
acceptance or rejection of a the behavioral
implications for
message: the receiver
accepts
or
rejects Whether or not the
sender has the
accuracy authority to send
of the the message
and/or require
message action
 NICATION
OCESS
use
accepts The next step is for the receiver
to use the information. How

or the information will be use

depends on the receiver
perception of the message
rejects then
provides
feedback
to
CESS
CATION accepts
or then
rejects provides
feedback
to
The last step in the communication
process id for the receiver to provide
feedback to the sender. Depending
on the perception of the receiver,
however, this important step may not
be made
FORMS OF

COMMUNICATION
VERBAL NON-VERBAL

transmitted through hearing or sight.

ORAL COMMUNICATION WRITTEN COMMUNICATION

mostly involves hearing the words an alternative to oral communication
of the sender, although sometimes, where the senders seek to communicate
through the written word. It is sometimes,
opportunities are provided for seeing
preferred over the oral communication
the sender’s body movements, facial
because of time and cost constraints. The
expressions, gestures, and eye written communication, however, has
contact. Sometimes, feeling, smelling, limitations and to remedy these, some
tasting and touching are involved. means are devised.
FORMS OF

COMMUNICATION
VERBAL NONVERBAL

conveying message through body language, as well as the use of time,

space, touch, clothing, appearance, and aesthetic elements.

Body language consists of gestures, bodily movement, posture, facial

expression, and mannerism of all kinds.

Nonverbal expressions convey many shades of meaning and it is to the

advantage of the communicator to understand what messages are relayes
 PERSONAL BARRIERS
hindrances to effective communication
1 arising from a communicator’s characteristics
as a person, such as emotions, values, poor
listening habits, sex, age, socioeconomic
status, religion, education, etc.

PHYSICAL BARRIERS
BARRIERS TO interferences to effective communication
2 occurring in the environment where the
COMMUNICATION communication is undertaken. Distraction
that does not allow full understanding of the
meaning of the entire message.

SEMANTIC BARRIERS
“interference with the reception of a
3 message that occurs when the message id
misunderstood even though it is received
exactly as transmitted”
use feedback to facilitate the
understanding and increase the potential
for appropriate action
1

repeat messages in order to provide

2
assurance that they are properly received.
OVERCOMING
BARRIERS TO
use multiple channels so that the accuracy
of the information may be enhanced. 3 COMMUNICATION
use simplified language that is easily
understandable and which eliminates the
possibility of people getting mixed-up with 3
meanings
 TECHNIQUES FOR

COMMUNICATING
IN ORGANIZATION
DOWNWARD TECHNIQUES
appropriate when directives are
COMMUNICATION LETTERS complex and precise actions are
required.
message flows from
higher levels of authority to MEETINGS when orders are simple but the
TELEPHONES
lower levels. (techniques that result depends largely on
provide personal
employee morale
purpose: interchange)

- to give instruction useful sources of information

- to provide information MANUALS regarding company policy,
about policies and procedures, and organizations.
procedures provide more specific information
- to give feedback HANDBOOKS about the duties and privileges of
about performance the individual worker.
- to indoctrinate or provide a mixture of personal,
motivate NEWSLETTERS social, and work related
information
D
O
W
N
W
A
CONCERNS:
R
D implementation of goals, strategies, and objectives

C job instructions and rationale

O
M
M
U procedures and practices
N
I
C performance feedback
A
T
I
O
indoctrination
N
HORIZONTAL COMMUNICATION
message sent to individuals or groups from another of the same
organizational level or position.
purpose:
- to coordinate activities between departments
- to persuade others at the same level of organization
- to pass on information about activities or feelings

OTHER SOCIAL
MEMOS DINNERS AFFAIRS

TECHNIQUES
MEETINGS TELEPHONES PICNICS
HORIZONTAL COMMUNICATION

CONCERNS:
interdepartmental coordination

interdepartmental problem - solving

staff advice to the departments

UPWARD COMMUNICATION
there is a need for management to provide employees
with all necessary material and non material support it can
give.
messages from persons in lower-level positions to persons
in higher positions.
messages sent usually:
- provide information on work progress
- problems encountered
- suggestions for improving outputs
- personal feelings about work and non-work activities
UPWARD COMMUNICATION
TECHNIQUES
grievances are part of a normally operating organization.
FORMAL GRIEVANCE
To effectively deal with them, organizations provide a
PROCEDURES
system for employees to air their grievances.

EMPLOYEE ATTITUDE finding out what the employees think about the company is
AND OPINION SURVEYS very important.

suggestions from employees are important sources of cost-

SUGGESTION SYSTEMS
saving and production enhancing ideas.

it provides the management with an opportunity to act on

OPEN-DOOR POLICY difficulties before they become full-blown problems, even
on limited basis
when the employees feel free to talk and they are assured
INFORMAL GRIPE of not being penalized for doing so, the management will
SESSIONS be spared with lots of effort determining the real cause of
problems in the company.
UPWARD COMMUNICATION
TECHNIQUES

when a specific problem or issues arises, a task force may

TASK FORCES
be created and assigned to deal with the problem or issue

when employees leave an organization for any reason, exit

EXIT INTERVIEW
interviews may provide some of the answers.
 CONCERNS:
problems and exceptions
UPWARD COMMUNICATION

suggestions for improvement

performance reports

grievances and disputes

financial and accounting information

MANAGEMENT INFORMATION SYSTEM
(MIS)
“an organized method of providing past, present, and
projected information on internal operations and external
intelligence for use in decision making ”
-Boone and Kurtz

MIS is currently used by corporate firms consists of “written and

electronically based systems for sending reports, memos,
bulletins and the like”. It allows manager of different
departments within the firm to communicate with each other.
manufacturing marketing

MANAGEMENT
finance INFORMATION personnel
SYSTEM (MIS)

research and
engineering development
PURPOSE OF MIS by Wheelen and Hunger

1
can
to provide a basis for the analysis of early warning signals that
originate both externally and internally.

2 to automate routine clerical operations like payroll and inventory

reports

3 to assist managers in making routine decisions like scheduling,

orders, assigning orders to machines and reordering supplies

3 to provide the information necessary for management to make

strategic or nonprogrammed decisions
CONTROLLING
“process of ascertaining whether organizational objectives
have been achieved; if not, why not; and determining what
activities should then be taken to achieve objectives better in
the future”
it completes the cycle of management functions

objectives and goals are set at the planning stage are verified
as to achievement or completion at any given point in the
organizing and implementing stages. When expectations are
not met at scheduled dates, corrective measures are usually
undertake.
IMPORTANCE OF

CONTROLLING
if it is properly implemented, it will help the organization achieve
its goal in the most efficient and effective manner.

deviation, mistakes and shortcomings happen inevitably, an

effective control system, for instance, minimizes it not totally
eliminates losses.

if no such control is made, the company will be faced with

escalating production costs, which will place the viability of the
firm in jeopardy
 ESTABLISH
PERFORMANCE
OBJECTIVES AND
STANDARD

MEASURE ACTUAL
PERFORMANCE
STEPS IN
CONTROLLING
PROCESS DOES THE
do nothing

ACTUAL
PERFORMANCE
MATCH THE yes
STANDARDS?
no

TAKE
CORRECTIVE
ACTION
 in controlling, what has to be achieved
STEPS IN must first be determined.
CONTROLLING
PROCESS
examples of such objectives and
standards are as follows:
sales targets
expressed in quantity or monetary terms

ESTABLISH production targets

expressed in quantity or quality terms
PERFORMANCE worker attendance
OBJECTIVES AND expressed in terms of rate of absences

STANDARD safety record

expressed in number of accidents for given
period
supplies used
expressed in quantity or monetary terms for
given periods
STEPS IN
CONTROLLING
PROCESS there is a need to measure actual
performance so that when
shortcoming occur, adjustments
MEASURE could be made. The adjustments
will depend on the actual findings
ACTUAL
PERFORMANCE the measuring tools will differ from
organization to organization, as
each have their own unique
objectives
STEPS IN
CONTROLLING
PROCESS

DOES THE once actual performance

ACTUAL has been determined, this
PERFORMANCE will be compared with
MATCH THE what the organization
STANDARDS? seeks to achieve.
STEPS IN
CONTROLLING
PROCESS
the purpose of
comparing actual
performance with the
TAKE desired result is to provide
CORRECTIVE management with the
ACTION opportunity to take
corrective action when
necessary
TYPES OF
CONTROL FEEDFORWARD CONTROL
PRE-OPERATIONS
PHASE

ACTUAL
OPERATION CONCURRENT CONTROL
PHASE

POST
OPERATIONS FEEDBACK CONTROL
PHASE
TYPES OF
CONTROL
FEEDFORWARD CONTROL

when management anticipate problems and prevents

their occurrence.

this type of control provides the assurance that the

required human and nonhuman resources are in place
before operations begin
TYPES OF
CONTROL
CONCURRENT CONTROL

when operations are already ongoing and activities to

detect variances are made

it is always possible that deviations from standards will

happen in the production process. When such deviations
occur, adjustments are made to ensure compliance with
requirements. Information on the adjustments are also
necessary inputs in the pre-operation phase.
TYPES OF
CONTROL
FEEDBACK CONTROL
when information is gathered about a completed activity,
and in order that evaluation and steps for improvements
are derived.
corrective actions aimed at improving future activities are
features of feedback control

it validates objectives and standards. If accomplishments

consist only of a percentage of standard requirements, the
standard may be too high or inappropriate
 COMPONENTS OF ORGANIZATIONAL

CONTROL SYSTEMS
olicies and procedure strategic plan long-range financial pla

refers to “the
it recommend
ork within which provides basic direction for fina
ectives must be
activities. If the go
while, procedure control not appear to be
n that describes mechanism for the the firm is heade
series of actions
ken in a given organization. control mechanism
be ,made to w
uation”.
 COMPONENTS OF ORGANIZATIONAL

CONTROL SYSTEMS
strategic plan long-range financial plan operating budg

It indicates th
it recommends a expenditures, reve
direction for financial profits planned fo
s basic control activities. If the goal does future period reg
anism for the not appear to be where operations. The f
anization. the firm is headed, the appearing in the
control mechanism should are used as stan
be ,made to work. measurement
performanc
 COMPONENTS OF ORGANIZATIONAL

CONTROL SYSTEMS
range financial plan operating budget performance apprai

It indicates the
measures empl
ommends a expenditures, revenues, or
performance. As
n for financial profits planned for some
provides employee
If the goal does future period regarding
guide on how to d
ear to be where operations. The figures
jobs better in the f
is headed, the appearing in the budget
also function as e
echanism should are used as standard
checks on new p
ade to work. measurements for
and program
performance.
 COMPONENTS OF ORGANIZATIONAL

CONTROL SYSTEMS
operating budget performance appraisals statistical reports

dicates the pertain to those that

measures employee
res, revenues, or data on various deve
performance. As such, it within the firm. Labor
anned for some
provides employees with a rates, quality contro
eriod regarding
guide on how to do their accounts receivable,
ons. The figures
jobs better in the future. It payable, sales re
g in the budget accident reports, an
also function as effective
d as standard consumption reports
checks on new policies
urements for information which m
and programs found in a statistica
formance.
 COMPONENTS OF ORGANIZATIONAL

CONTROL SYSTEMS
performance appraisals statistical reports policies and procedure

pertain to those that contain

res employee policies refers to
data on various developments
ance. As such, it within the firm. Labor efficiency framework within
mployees with a rates, quality control rejects, the objectives m
how to do their accounts receivable, accounts pursued” while, pro
er in the future. It payable, sales reports, is a “a plan that d
tion as effective accident reports, and power the exact series of
consumption reports are the
on new policies to be taken in a
information which may be
programs found in a statistical report situation”.
 COMPONENTS OF ORGANIZATIONAL

CONTROL SYSTEMS
statistical reports policies and procedure strategic plan

those that contain policies refers to “the

ious developments
m. Labor efficiency
framework within which
ity control rejects, the objectives must be
provides basic c
ceivable, accounts pursued” while, procedure
mechanism fo
e, sales reports, is a “a plan that describes
eports, and power organization
the exact series of actions
on reports are the to be taken in a given
on which may be
a statistical report
situation”.
 STRATEGIC

CONTROL SYSTEMS
FINANCIAL ANALYSIS
the success of most organizations depends heavily on
its financial performance.

a review of the financial statements will reveal

important details about the company’s performance.

balance sheet and income statement is an example of

financial analysis
 STRATEGIC

CONTROL SYSTEMS
FINANCIAL RATIO ANALYSIS

is a more elaborate approach used in controlling

activities

in this method, one account appearing in the financial

statements is paired with another constitute a ratio. The
result will be compared with a required norm which is
usually related to what other companies in the industry
have achieved, or what the company has achieved in
the past
 STRATEGIC

CONTROL SYSTEMS
FINANCIAL RATIO ANALYSIS
financial ratios may be categorized into following types:

liquidity ratios
these ratios asses the ability of a company to meet its
current obligations. The following ratios are important
indicators of liquidity:

current ratio – shows the extent to which current

assets of the company can cover its current liabilities
 STRATEGIC

CONTROL SYSTEMS
FINANCIAL RATIO ANALYSIS

current ratio – shows the extent to which current assets of

the company can cover its current liabilities

𝒄𝒖𝒓𝒓𝒆𝒏𝒕 𝒂𝒔𝒔𝒆𝒕𝒔
current ratio =
𝒄𝒖𝒓𝒓𝒆𝒏𝒕 𝒍𝒊𝒂𝒃𝒊𝒍𝒊𝒕𝒊𝒆𝒔
 STRATEGIC

CONTROL SYSTEMS
FINANCIAL RATIO ANALYSIS

acid-test ratio – a measure of the firm’s ability to pay

off short-term obligations with the use of current assets
and without relying on the sale inventories.

𝒄𝒖𝒓𝒓𝒆𝒏𝒕 𝒂𝒔𝒔𝒆𝒕𝒔 − 𝒊𝒏𝒗𝒆𝒏𝒕𝒐𝒓𝒊𝒆𝒔

acid-test ratio =
𝒄𝒖𝒓𝒓𝒆𝒏𝒕 𝒍𝒊𝒂𝒃𝒊𝒍𝒊𝒕𝒊𝒆𝒔
 STRATEGIC

CONTROL SYSTEMS
FINANCIAL RATIO ANALYSIS

efficiency ratios
these ratios shows how effectively certain assets or
liabilities are being used in the production of goods and
services. Among the more common efficiency ratios are:

inventory turnover ratio – this ratio measures the

number of times an inventory is turned over (sold) each
year.
 STRATEGIC

CONTROL SYSTEMS
FINANCIAL RATIO ANALYSIS

inventory turnover ratio – this ratio measures the

number of times an inventory is turned over (sold) each
year.
𝒄𝒐𝒔𝒕 𝒐𝒇 𝒈𝒐𝒐𝒅𝒔 𝒔𝒐𝒍𝒅
inventory turnover ratio =
𝒊𝒏𝒗𝒆𝒏𝒕𝒐𝒓𝒚
 STRATEGIC

CONTROL SYSTEMS
FINANCIAL RATIO ANALYSIS

fixed asset turnover – this ratio measures utilization of

the company’s investment in its fixed assets, such as its
plant and equipment.

𝒏𝒆𝒕 𝒔𝒂𝒍𝒆𝒔
fixed asset turnover =
𝒏𝒆𝒕 𝒇𝒊𝒙𝒆𝒅 𝒂𝒔𝒔𝒆𝒕𝒔
 STRATEGIC

CONTROL SYSTEMS
FINANCIAL RATIO ANALYSIS

financial leverage ratios

this is a group of ratios designed to assess the balance
of financing obtained through debt and equity sources.
Some of the important leverage samples are as follows:

debt to total assets ratio – this ratio shows how much the
firm’s asset are financed by debt
 STRATEGIC

CONTROL SYSTEMS
FINANCIAL RATIO ANALYSIS

debt to total assets ratio – this ratio shows how much

the firm’s asset are financed by debt

𝒕𝒐𝒕𝒂𝒍 𝒅𝒆𝒃𝒕
debt to total assets ratio =
𝒕𝒐𝒕𝒂𝒍 𝒂𝒔𝒔𝒆𝒕𝒔
 STRATEGIC

CONTROL SYSTEMS
FINANCIAL RATIO ANALYSIS

times interest earned ratio – this ratio measures the

number of times that earnings before interest and taxes
cover or exceed the company’s interest and taxes cover
or exceed the company’s interest expense

𝒑𝒓𝒐𝒇𝒊𝒕 𝒃𝒆𝒇𝒐𝒓𝒆 𝒕𝒂𝒙 + 𝒊𝒏𝒕𝒆𝒓𝒆𝒔𝒕 𝒆𝒙𝒑𝒆𝒏𝒔𝒆

times interest earned ratio =
𝒊𝒏𝒕𝒆𝒓𝒆𝒔𝒕 𝒆𝒙𝒑𝒆𝒏𝒔𝒆
 STRATEGIC

CONTROL SYSTEMS
FINANCIAL RATIO ANALYSIS

profitability ratios
this ratios measure how much operating income or net
income a company is able to generate in in relation to its
assets, owner’s equity, and sales. Among are notable
profitability ratios are as follows:

profit margin ratio – this ratio compares the net profit

to the level of sales.
 STRATEGIC

CONTROL SYSTEMS
FINANCIAL RATIO ANALYSIS

profit margin ratio – this ratio compares the net profit to

the level of sales.

𝒏𝒆𝒕 𝒑𝒓𝒐𝒇𝒊𝒕
profit margin ratio =
𝒏𝒆𝒕 𝒔𝒂𝒍𝒆𝒔
 STRATEGIC

CONTROL SYSTEMS
FINANCIAL RATIO ANALYSIS

return on assets ratio – this ratio shows how much

income the company produces every peso invested in
assets

𝒏𝒆𝒕 𝒊𝒏𝒄𝒐𝒎𝒆
return on assets ratio =
𝒂𝒔𝒔𝒆𝒕𝒔
 STRATEGIC

CONTROL SYSTEMS
FINANCIAL RATIO ANALYSIS

return on equity ratio – this ratio measures the returns on

the owner’s investment.

𝒏𝒆𝒕 𝒊𝒏𝒄𝒐𝒎𝒆
return on equity ratio =
𝒆𝒒𝒖𝒊𝒕𝒚
 IDENTIFYING

CONTROL PROBLEMS
EXECUTIVE REALITY COMPREHENSIVE SYMPTOMS OF
INADEQUATE CONTROL
CHECK INTERNAL AUDIT

employees at the frontline often complain that management

imposes certain requirements that are not realistic
 IDENTIFYING

CONTROL PROBLEMS
EXECUTIVE REALITY COMPREHENSIVE SYMPTOMS OF
INTERNAL AUDIT INADEQUATE CONTROL
CHECK

an internal audit is the one undertaken to determine the

efficiency and effectivity of the activities of an organization.
Among the many aspects of operations within the organization, a
small activity that is not done right may continue to be unnoticed
until it snowballs into a full blown problem
 IDENTIFYING

CONTROL PROBLEMS
EXECUTIVE REALITY COMPREHENSIVE SYMPTOMS OF
INTERNAL AUDIT INADEQUATE CONTROL
CHECK

if a comprehensive internal audit cannot be availed for some

reason, the use of a checklist for symptoms of inadequate control
may be used.
Kreitner has listed some of the common symptom as follows:
an unexplained decline in revenues and profits
a degradation of service (customer complaints)
employee dissatisfaction (complaints, grievances , turnover)
 IDENTIFYING

CONTROL PROBLEMS
EXECUTIVE REALITY COMPREHENSIVE SYMPTOMS OF
INTERNAL AUDIT INADEQUATE CONTROL
CHECK

cash shortages caused by bloated inventories or

delinquent accounts receivable
idle facilities or personnel
disorganized operations (work flow bottlenecks, excessive
paperwork).
excessive costs
evidence of waste and inefficiently (scrap, rework)
LEADING
management function which “involves influencing others to
engage in the work behaviors necessary to reach
organizational goals”

it is the definition that indicates a person or group of persons

tasked with managing a group that must assume the role
performed by leader

while leading refers to function, leadership refers to the process

HOW LEADERS INFLUENCE OTHERS?
engineer managers are expected to maintain effective work forces. To
be able to do so, they are required to perform leadership roles. Leaders
are said to be able to influence others because of the power they posses.
Power refers to the ability of a leader to exert force on another.

BASES OF POWER
LEGITIMATE POWER
a person who occupies a higher position over persons in lower positions within the
organization. Compliance can be expected

REWARD POWER
a person has the ability to give rewards to anybody who follows orders
or request, he is said to have reward power.

MATERIAL REWARDS PSYCHIC REWARDS

refer to money or other tangible benefits consist of recognition , praises, etc.
like cars, house, and lot, etc.
COERCIVE POWER
a person compels another to comply with others through threats or punishments.
Punishment may take the form of demotion, dismissal, withholding of promotions, etc.

REFERENT POWER
a person can get compliance from another because the latter would want to be an
identified with the former.

EXPERT POWER
a person with great skills in technology. Experts provide information regarding their
specific lines of expertise.
 NATURE OF
LEADERSHIP
may be referred to as “the process of influencing and
supporting others to work enthusiastically toward achieving
objectives”
TRAITS OF
EFFECTIVE L EADERS
PERSONAL DRIVE
people that are willing to accept responsibility, possess vigor, initiative,
persistence, and health.

THE DESIRE TO LEAD

person with a desire to lead will always have a reservoir of extra efforts
which can be used whenever needed.
 TRAITS OF
EFFECTIVE LEADERS
PERSONAL INTEGRITY
person who is well-regarded by others as one who has integrity
possesses one trait of a leader.

SELF CONFIDENCE
“a chieftain cannot win if he loses his nerve. He should be self-confident
and self-reliant and even if he does not win, he will know he has done his
best”

ANALYTICAL ABILITY
the ability to analyze is one desirable trait that a leader can use to tide
him over many challenging aspects of leadership.
 TRAITS OF
EFFECTIVE LEADERS
CHARISMA
person who has sufficient personal magnetism that leads people to
follow his directives.
CREATIVITY
person with “the ability to combine existing data, experience, and
preconditions from various sources in such a way that the results will be
subjectively regarded as new, valuable, and innovative, and as direct
solution to an identified problem situation”.

FLEXIBILITY
people differ in the way they do their work. One will adapt a different
method from another person’s method. It allows the other means of
achieving goals when the prescribed manner is not appropriate.
 L EADERSHIP SKILLS
CONCEPTUAL
HUMAN SKILLS

SKI L LS TECHNICAL
SKILLS
TECHNICAL
SKILLS
skills that a leader must posses to enable them
to understand and make decisions about work
processed, activities, and technology. Technical
skills are specialized knowledge needed to
perform a job.
 skills refer to the ability of a
leader to deal with people,
both inside and outside the
organization. Good leaders
must know how to get along
with people, motivate them,
and inspire them. Apart from
HU M AN
motivating, human skills include
coaching, communicating,
morale building, training and
SKILLS
development, help and
supportiveness and delegating.
 these skills refer to the “ability to think in
abstract terms, to see how parts fit together to
form the whole”
a very basic requirements for effective
implementation is a clear and well – expressed
presentation of what must be done.

CONCEPTUAL
SKILLS
 BEHAVIORAL APPROACH

according to ways according to the

according to way
leaders approach leader’s orientation
the leader uses
people to motivate toward tasks and
power
them people

positive leadership autocratic employee

orientation

participative

negative leadership task orientation

free-rein
 BEHAVIORAL APPROACHES TO LEADERSHIP STYLE

according to ways according to the

according to way
leaders approach leader’s orientation
the leader uses
people to motivate toward tasks and
power
them people

positive leadership autocratic employee

orientation

participative

negative leadership task orientation

free-rein
according to ways leaders approach people
to motivate them
positive leadership
leader’s approach emphasizes rewards, the style used is
positive leadership. The reward may be economic or it
may be non economic.

negative leadership
leader’s approach emphasizes punishment, the style used
is negative leadership. The punishment may take the form
of reprimand, suspension or dismissal
 according to way the leader uses power
autocratic leaders
leaders who make decisions themselves, without consulting
subordinates. Motivations takes the form of threats punishment, and
intimidation of all kinds
participative leaders
when a leader openly invites his subordinates to participate or
share in decisions, policy-making and operation methods.

free - rein leaders

leaders who set objectives and allow employees or subordinates
relative freedom to do whatever it takes to accomplish objectives.
Also referred to as laissez – faire leaders.
 according to the leader’s orientation toward
tasks and people

employee orientation
when a leader considers employees as human beings of “intrinsic
importance and with individual and personal need” to satisfy

task orientation
when a leader places stress on production and the technical
aspects of the job and the employees are viewed as the means of
getting the work done.
 CONTIGENCY APPROACHES TO
LEADERSHI P STY L E
the contingency approach is “an effort to determine through
research which managerial practices and techniques are
appropriate in specific situations.
F I EDL E R’S CONTIGENCY MODEL
“leadership is effective when the leader’s style is appropriate to
the situation”
- Fred Fiedler

the situational characteristics is determined by three principal

factors
1. the relations between leaders and followers
2. the structure of the task, and
3. the power inherent in the leader’s position

the situational characteristics vary from organization to

organization. To be effective, the situation must fit the leader. If
this is not so, the following may be tried:
FI EDLER’S CONTIGENCY MODEL

the situational characteristics vary from organization to

organization. To be effective, the situation must fit the leader.
If this is not so, the following may be tried:

1. change the leader’s trait or behaviors.

2. select leaders who have traits or behaviors fitting the
situation.
3. move leaders around in the organization until they are
in positions that fit them.
4. change the situation.
H E R SS IYT U AAT N D B L A N C H A R D
IONAL LEADERSHIP MODEL

it suggests that the most important factor affecting the

selection of a leader’s style is the development (or maturity)
level of subordinate. The leader should match his or her style to
this maturity level.

maturity has two components:

1. job skills and knowledge, and
2. psychological maturity.
H E R SS IYT U AAT N D B L A N C H A R D
IONAL LEADERSHIP MODEL
STYLE 1: DIRECTING
is for people who lack competence but are enthusiastic
and committed.
STYLE 2: COACHING
is for people who have competence but lack commitment.
STYLE 3: SUPPORTING
is for people who have competence but lack of
confidence or motivation.
STYLE 4: DELEGATING
is for people who have both competence and
commitment.
DEVELOPMENT STAGE OF SUBORDINATES
AND RECOMMENDED LEADERSHIP STYLE
DEVELOPMENT STAGE RECOMMENDED STYLE
1. low ability + low willingness style 1 – DIRECTING
- structure, control,
and supervise
2. low ability + high willingness style 2 - COACHING
- direct and support
3. high ability + low willingness style 3 - SUPPORTING
- praise, listen, and
facilitate
4. high ability + high willingness style 4 – DELEGATING
- turn over responsibility
for day-to-day decision
making
 PATH-GOAL MODEL OF

LEADERSHIP
espoused by Robert J. House and Terence R. Mitchell, it describes that
leadership can be made effective because leaders can influence
subordinate’s perceptions of their work goals, personal goals, and paths to goal
attainment.

by using the path-goal model, it is assumed that effective leaders can

enhance subordinate motivation by:

1. clarifying the subordinate’s perception of work goals,

2. linking meaningful rewards with goal attainment, and

3. explaining how goals and rewards can be achieved.

PATH-GOAL PROCESS
leader identifies employee needs

appropriate goals are established

leader connects rewards with goals

leader provides assistance on employee path toward goals

employee becomes satisfied and motivated they accept the leader

both employees
effective
and organization
performance
better reach their
occurs
goals
 PATH-GOAL LEADERSHIP STYLE
directive leadership
where the leader focuses on clear task assignments, standards of successful
performance, and work schedules.

supportive leadership
where subordinates are treated as equals in a friendly manner while striving
to improve their well-being.

participative leadership
where the leader consults with subordinates to seek their suggestions and
then seriously considers those suggestions when making decisions

achievement – oriented leadership

where the leader set challenging goals, emphasize excellence and seek
continuous improvement while maintaining a high degree of confidence
that subordinates will meet difficult challenges in a responsible manner.
 VROOM’S DECISION-MAKING MODEL
it prescribes the proper leadership style for various situations, focusing on the
appropriate degrees of delegation of decision-making authority.

SYMBOL DECISION – MAKING STYLE DEGREE OF

SUBORDINATE
PATICIPANT

AUTOCRATIC LEADER
A-1 leaders solves the problem or makes the decision none
himself using available information
A-2 leaders obtains necessary information from low
subordinates, then decides.
CONSULTATIVE LEADER
C-1 leader approaches subordinates individually moderate
getting their ideas then make decision
 VROOM’S DECISION-MAKING MODEL
C-2 leader shares the problem with subordinates as a moderate
group, obtaining their collective and suggestions,
the decides
GROUP DIRECTED
G-2 leader shares the problem with subordinates as a high
group. Lets the group generate and evaluate
alternative solutions, and then collectively
decides
that’s all, ty!