COURSE TITLE: PRINCIPLES OF MANAGEMENT AND TEACHING

COURSE CODE: GST 420

HISTORICAL BACKGROUND OF MANAGEMENT
Management has been practiced as far back as the olden days when the only means of
livelihood was agriculture (subsistence agriculture). At that time people lived in communal
setting made up of father, wife or wives, sons, daughters, sons-in-law, daughters-in-law, children
etc, so there were enough farm hands or workers. Regardless of what managers were called at
that time, someone had to plan what was to be done, organize the family members and the
farming tools and other materials, lead and direct the workers and impose some controls to
ensure that everything was done well. This task usually fell on the head of the family, the father,
who organizes the men and lead the way while the women follow after them.
The building of the ancient Egyptian Pyramids and the great walls of China gives credence to
the fact that organized endeavours directed by people responsible for planning, organizing,
leading and controlling activities have existed for thousands of years. The construction of a
single pyramid occupied more than more than 100,000 people for 20 years. There were people,
who were in-charge; who ensured that there were enough stones at the site, told the workers
what was to be done and organized them. With the ancient Egyptians, the whip and chain were
effective ways of getting things done through people.
Also in the olden days where the feudal system was practiced in the Roman Empire, the land
owners needed no other principles to guide their management of the serfs but their hereditary
title. This was a period of enormous extremes, characterized by the lords and the peasants, the
emperor and the slaves, the haves and the have-nots etc. During this pre scientific-management
period, all that was needed was for one to be in a position of authority, for authority meant power
and control in the social and economic systems of the period. Another example of early
management practices was during the 1400s in the city of Venice, Italy. The Venetians
developed an early form of business enterprise and engaged in various activities common to
today‘s organizations such as an assembly line that standardized production, a warehouse,
inventory system to monitor the contents of the warehouse, personnel functions required to
manage the labour force and so forth.
Two main historical events promoted the study of management. Namely the publication of ‘The
Wealth of Nations’ by Adam Smith (1776). In which he popularised the principle of division of
labour (i.e. the breaking down of jobs into narrow, repetitive tasks). This he held will increase
productivity by increasing each worker‘s skill and dexterity, by saving time that is commonly lost
in changing tasks and by creating labour-saving inventions and machinery.
The Industrial Revolution is the second and possibly the most important pre-twentieth century
influence on management. It began in the eighteenth century in Great Britain and by the end of
the civil war it had crossed the Atlantic to America. The major contribution of Industrial
Revolution was the substitution of machine power for human power which in turn made it more
economical to manufacture goods in factories rather than at home. These large efficient
factories using power-driven equipment required managerial skills because managers were

1
needed to forecast demand, ensure that enough materials was in hand to make products, assign
tasks to people, direct daily activities, coordinate various tasks, ensure that machines were in
good working condition and so on.
The advent of machine power, mass production and efficient transportation led to the
development of big corporations that would require formalized management practices. Due to
the tremendous changes brought about by the industrial revolution, there was the need for a
formal theory to guide managers in running their organizations.
MANAGEMENT THEORIES
Management Theory is said to have evolved through four different time periods, reflecting the
backgrounds and interests of the writers or theorists. Which are:
1. Pre-scientific Management Period
2. Scientific Management and Administrative Management Period
3. Human Relations,
4. Contemporary Management which involves the Systems Approach and the Contingency
Approach.
PRE-SCIENTIFIC MANAGEMENT PERIOD
During this period, workers were almost completely dominated by their supervisors where the
relationship is based on social caste systems of autocracy, the feudal systems and the
management style of the Egyptians of old. There were no management principles to guide them
and it was not necessary to study any organized body of management concepts, all one needed
only was to be in a position of authority, for authority meant power and control in the social and
economic systems of that period.
SCIENTIFIC MANAGEMENT AND ADMINISTRATIVE MANAGEMENT PERIOD
This period saw the rise of the business barons and the industrial revolution. The concept of
wage rather than a subsistence allowance being paid for work was recognized. The doctrine of
private property became a dominant theme. Complex business organizations built by such men
as John D. Rockefeller and Andrew Carnegie began.
SCIENTIFIC MANAGEMENT APPROACH
The scientific management theorist, advocated the application of scientific methods to analyse
work and to determine how to complete production tasks efficiently. According to Fredrick
Taylor, management should develop a precise, scientific approach for each element of one’s
work to replace general guidelines, scientifically select, train, teach, and develop each worker so
that the right person has the right job, cooperate with workers to ensure that jobs match plans
and principles and ensure an appropriate division of work and responsibility between managers
and workers.
To implement this approach, Taylor used techniques such as time and motion studies. With this
technique a task was divided into its basic movements, and different motions were timed to
determine the most efficient way to complete the task. Despite these gains, not everyone was
convinced that scientific management was the best solution to all business problems.

2
ADMINISTRATIVE MANAGEMENT APPROACH
The administrative management approach emphasized the perspective of senior managers
within the organizations and argued that management was a profession and could be taught. An
explicit and broad framework for administrative management emerged in 1961, when Henry
Fayol, a French mining engineer and executive, published a book summarizing his management
experiences. He identified five functions and fourteen principles of management which includes:
planning, organizing, commanding, coordinating and controlling while the fourteen principles of
management are: division of work, authority, discipline, unity of command, unity of direction,
subordination of individual interest to the general, remuneration, centralization, scalar chain,
order, equity, stability and tenure of personnel, initiative and spirit de corps.
Although these perspective and recommendations were considered sound, critics noted that
they might not work in all settings. Different types of personnel, industry conditions and
technologies may affect the appropriateness of these principles.
HUMAN RELATIONS THEORY
The human relations develop during the 1930s. The approach aimed at understanding how
psychological and social processes interact with the work situation to influence performance.
Human relation theorists were the first major approach to emphasise informal work relationships
and worker satisfaction.
Human relations proponents argued that managers should stress primarily employee welfare,
motivation and communication. They believed social needs had precedence over economic
needs. Therefore, management must gain the cooperation of the group and promote job
satisfaction and group norms consistent with the goal of the organization. Another notable
contributor to the field of human relations was Abraham Maslow in 1943, who suggested that
humans have five levels of needs. The most basic needs are the physical needs for food, water
and shelter, the most advanced need is for self-actualisation or personal fulfilment. Although the
human relations approach generated research into leadership, job attitudes and group
dynamics, it drew heavy criticism. Critics believed that one of the human relations believe that a
happy worker is a productive worker is simplistic.
CONTEMPORARY MANAGEMENT THEORY
This period extends to the present time. It is characterized by processes of refinement,
extension and the synthesis of management thought. During this period, scientific management
has been brought to a high state of refinement in such areas as industrial engineering, motion
and time study and operations research. Similarly, there have been advances in the human
relations approach. Personnel management, industrial relations and other areas continue to
emphasize the human relations approach.
An extension of the human relations approach is the use of knowledge gained from behavioural
sciences, which take a much broader view of human behaviour in organizations, for example,
the use of such disciplines as psychology, sociology, psychiatry and cultural anthropology allow
the investigation of organizational behaviour, which results to a more value-free approach to

3
understanding persons in organizations than was taken by early human relations writers. A
major impact on current management thought is the Systems and Contingency Approach.
THE SYSTEMS APPROACH
If one observes a complex organization, it is easy to recognize that all complex organizations,
businesses or otherwise draw upon the environment for inputs. These inputs are processed by
the organization to produce hopefully desired outputs. Systems theory provides a conceptual
overview of organizational functioning. The whole organizations and its subsystems are seen as
interrelated. They are related to their environments. Managers however need to know how a
specific organization and its subsystems are related in a given environment and how to deal with
a particular problem, hence the need for contingency theory.
THE CONTINGENCY THEORY
This theory recognizes that every organization is unique and exists in a unique environment. It
states that effective management varies with the organization and its environment. The theory
attempts to analyze and understand these relationships with a view toward taking the specific
managerial actions necessary to deal with the issue. This approach is both analytical and
situational, with purpose of developing a practical answer to the question at hand. The best
solution is the one that is responsive to the characteristics of the unique situation being faced.
The motto of contingency is “it all depends”.
DEFINITION OF MANAGEMENT: ITS NATURE AND PURPOSE
Before defining of management, it is well to point out that one of the most important activities of
human beings is managing. And the idea of managing the resources of a group started ever
since human beings started coming together and working in groups. This is important so that the
objectives of the group can be attained through proper linking of the various activities being
performed by the group members. As organizations, particularly formal organization like
business organizations, ministries, schools including universities become large and the task of
the manager starts getting bigger and more complex. And the aim of the manager is to promote
excellence.
Management is a word used by different people with varying meanings. The noun management
is used as a collective noun to refer to all those who manage within a particular organization.
That is why in an organization there are different people occupying different positions and
seeing to it that the resources of such organizations are put into effective use. There are also
those managers that assist other managers to perform their functions. They are all managers.
The word management can also be used to separate a special class of people in an
organization from other classes. You should have heard such statement as, the management of
the organization has taken a decision concerning the demand of the workers for higher pay'.
Such statement is making reference to those people that take decisions, whether temporal or
final.
In trying to give a precise definition of management, it is always faced with problems. This is
because of the interest and background of the person giving such definition. The accountant will
like to see management in terms of cash flow: how much the organization is expending in other
4
to get revenue or returns, as well as the timing of such expenditure and revenue. The marketing
manager sees management in terms of analyzing the consumer needs with a view to bring out a
product or service capable of satisfying the needs and at a profit to the organization. The
personnel manager on his own interest will regard management as employing suitably qualified
candidates to fill existing vacancies and motivating them to work as a team toward the
attainment of organizational objectives. We can go on and on.
DEFINITION
Weihrich and Koontz say that management as a process is designing and maintaining an
environment in which individuals, working together in groups, efficiently accomplish selected
aims. This is a basic definition which needs to be expanded in the following ways:
a. As managers, people carry out some specific functions which they are employed for.
These functions are commonly referred to as managerial functions. Which are; planning,
organizing, staffing, leading and controlling among others.
b. Management applies to any kind of organization. This is another nature and purpose of
management: Management is not restricted to any particular organization like the Nigeria
Bottling Company Plc. Any organization, as long as human and other resources are there
calls for management. Consequently, management is needed in a philanthropic
organization, in the church, in the mosque, in the Lion's club, in a football team among
others.
Below are definitions suggested by some of the management experts:
Henri Fayol: “Management is conduct of affairs of business, moving towards its objective
through a continuous process of improvement and optimization of resources”.
Koontz: “Management is the process of designing and maintaining an environment in which
individuals, working together in groups, efficiently accomplish selected aims”.
Mary Parker Follett: “Management is the art of getting things done through people”.
George R. Terry: “Management is a process consisting of planning, organizing, actuating and
controlling, performed to determine and accomplish the objectives by use of people and
resources”.
ILO: “Management is the complex of continuously coordinated activity by means of which any
undertaking administration/public or private service conducts its business”.
Lawrence A. Appley: “Management is guiding human and physical resources into a dynamic,
hard hitting organization until that attains its objectives to the satisfaction of those served and
with a high degree of morale and sense of attainment on the part of those rendering the service”.
FUNCTIONS OF MANAGEMENT
PLANNING
Planning has defined as one of the five major functions of management. However, since
planning is a bridge between the present and the future, it has been called the primary
management function. Planning is particularly important because of scarce resources and
uncertain environment with a fierce competition for these resources. Planning is a decision-
5
making activity requiring the process of ascertaining objectives and deciding on activities to
attain these objectives. It is also a process of preparing for change and coping with uncertainty
by formulating future courses of action. The basic purpose of planning is to reduce the risk
of uncertainties, and to initiate a coordinated effort within the organisation for the
purpose of organisational success.
The planning process has three characteristics (Boone, 1981), which are:
1. Planning is anticipatory in nature. A decision must be made now as to what to do
and how, before it is actually done.
2. Planning is a system of decisions. It involves a process of making decisions which
will define what is to be achieved in the future and the formulation of action plans
for achievement of goals.
3. It is focused on desired future results. Planning is a means of ensuring that the
important organisational objectives are accomplished as and when desired.
The most comprehensive definition of planning is given by Cyril L. Hudson (1970), who
states that: to plan is to produce a scheme for future action; to bring about a deliberate
attempt to influence, exploit and control the nature, direction, extent, speed, and effects of
change. It may even attempt deliberately to create change, remembering always that
change (like decision) in any one sector will, some way, affect other sectors.
Since Peter Drucker is, supposedly, a pioneer scholar of modern management, it will be
interesting to note how he defines it. His definition as cited by George A. Steiner (1969),
is that: Planning is the continuous process of making present entrepreneurial decisions
systematically and with best possible knowledge of their futurity, organising systematically
the efforts needed to carry out these decisions and measuring the results of these
decisions against the expectation through organised, systematic feedback. Peter Drucker,
thus, encompasses the element of feedback that would ascertain the quality of decisions
and the accuracy of planning.
CONTROL
Control is very important in any organisation. Control is one of the most important functions
of management, second perhaps, only to the function of decision-making (planning). There
is more to control than mere measurement and reporting of activities. It is a dynamic
process, requiring deliberate and purposeful actions in order to ensure compliance with
the plans and policies previously developed. When things go smoothly and as planned,
they are under control.
The best known definition of control, in managerial terms is given by Anthony (1965) who
avers that: “It is the process by which managers assure that resources are obtained and
used effectively and efficiently in the accomplishment of the organisation’s objectives”.
Basically, the definition stresses that the function of control is to accomplish
organisational goals by implementing previously determined strategies and policies; so
that whatever needs to be done, is done properly. In other words, control maintains
equilibrium between means and ends or between efforts and output. It makes sure that
the actual performance is in conformity with the intended and planned performance leading
6
towards achievement of objectives. The process of controlling ensures that right things
happen at the right time in the right way and by the right people. The importance of
control cannot be overemphasised. Its significance is heightened specially because of the
following factors which are common to all organisational situations.
1. Size of business: as organisations grow in size and diversity, they become
increasingly complex to manage and hence the need for an efficient system of
control which is required to coordinate activities and accomplish integration.
2. Uncertainty: control forms a basis for future action. Today’s world of rapid and sometimes
unpredictable changes makes the future very uncertain. This makes planning very
difficult. Hence, control points are necessary to check the progress of activities and plans
and make the necessary and constructive adjustments so as to accommodate any
environmental changes.
3. Decentralisation trends: the current trends in decentralisation have brought the
decision-making authority to lower level management while accountability for results
remains with top management cadre. Controls serve the purpose of monitoring and
ensuring achievement of results while delegating authority to subordinates.
4. Control is vital for morale: workers are happier when things are under control. People
make mistakes. Intuitive decisions can result in error of judgement, especially when there
are so many variables involved. Such wrong decisions can result in lowering of morale.
Control techniques reduce the chances of errors in judgement; thus, making the
organisational environment more stable which is morale-boosting.
ORGANISING
Every organisation is made up of human and physical resources. These resources are brought
together in order to accomplish a predetermined goal. In order to accomplish these objectives,
tasks must be identified, the tools and technology required must be provided and a structure of
relationships must be identified. It is the function of management to determine the best structure
that will optimise the utilisation of resources. Management organises these resources. The
organisation is a means of achieving the best result from concerted effort. Organisation deals
with people and their relationship in an enterprise. It is the organisation that determines the
types of people required and their relationships. Thus, the type of personnel and structure
required in a hospital is different from the personnel and structure required in a weaving
enterprise or a university.
An organisation can be seen as an entity. This is true of all business enterprises, churches,
hospitals, or clubs. It can be seen as a process of coordinating individuals’ efforts to
accomplish a common objective. An organisation is a group of people bound together to
provide unity of action for the achievement of a predetermined objective. All management
theorists- Fayol, Follet etc., recognise this important management function. Organisation is very
fundamental to human nature. Man is a social animal and shares relationship with his
neighbours. The subject of organisation is central to sociology, psychology and even
anthropology.
Kinds of Organisation
Organisations can be classified into two broad categories: formal and informal organisations.
7
Formal Organisation:
Formal organisation can be seen as a direct opposite of informal organisation. It is a
planned pattern of group behaviour designed to achieve an objective. Most relationships
found in many business enterprises are formal. The main reasons for formal organisations are:
a. to establish logical patterns of inter-relationships among members of the group,
b. to secure advantages of specialisation or division of labour whereby the optimum
utilisation of talents can be realised and,
c. to coordinate activities of the component parts in order to facilitate the realisation
of the goals of the organisation.
Informal Organisation:
Informal organisation can be described as the human interaction that occurs
simultaneously and naturally without overt influence.
Organisational Structure
A sound organisational structure involves dividing activities into departments, divisions, units
and sub-units, defining relationships between the heads and members that make up the units. A
good structure:
1. Identifies the operating departments (e.g. sales department, production department
and finance department).
2. Isolates the service department (personnel, research).
3. Places emphasis on balancing the structure.
4. Shows the role of committees in the organisation.
One of the major problems confronting management is to decide the organisational structure to
be adopted. Important questions relating to duties and role of each department and line
executive have to be clearly defined. A decision has to be made if the organisation is to be
decentralised or centralised and the number of staff required for each task has to be determined.
As experts succinctly summarise it, the important features of an organisation to be designed
include division into sections and units, number of levels, locations of decision-making
authority, distribution of and access to information, physical layout of building, type of
people recruited, what behaviours are rewarded and so on (Robert, Simon, 1960). A
good organisational design is one that leads to the attainment of organisational
objectives. A good organisational design is one that is fixed and will never require a
change. The system is created to change when the environment in which it operates
contracts or when the company is expanding or reducing its operations/objectives or
during the process of re-organisation. A good organisation is judged by its economic
performance, ability to operate in a dynamic environment and the growth and satisfaction
of the members.
Types of Organisation Organisational Structure
Organisational structure can be subdivided into two, namely: line organisation and staff
organisation.
Line Organisation:
In a typical line organisation, authority is divested downward in a straight line from the
Board of Directors to the Managing Director and to lower management levels. Every line
8
executive has assigned responsibilities and authority assigned to him and has its
supporting staff to execute the functions. A manager with line authority is answerable for
the performance of his subordinates. The employees with line function are responsible for
the immediate attainment of the organisation’s objective. The flow of authority and
responsibility is usually straight or direct, and accountability is established. It has three
basic advantages:
1. This structure is simple and easily understandable by all, accountability is easily
established. Conflict of authority is reduced to a minimum.
2. It lends itself to quick decision-making. Decision-making is vested in one person who
is in charge of the department.
3. Expenses related to overhead are reduced to a minimum as the role of executive
specialists is eliminated.
Line and Staff Organisation:
This form of structure resembles the line structure, only that specialists are included in
the organisational arrangements. Decisions are made by line executives with the advice of
staff executives. Staff executives are experts in their fields – (accountants, lawyers,
health professionals, personnel specialists, engineers, etc.) they advise the line executives
who are directly responsible for the immediate attainment of the organisational goals. Line
and staff structure is best used when the organisation is relatively large and serving a
big market.
Authority Relationships
This is further divided into three, namely: line authority, staff authority and functional
authority.
a. Line authority as pointed out, connotes “command” relationship. This is the authority
that makes one to expect obedience from subordinates. Line authority has been
described as the chain of command as it flows from the stockholders to the
Board of Directors, to the Managing Director all the way to the employees. As
Fox observes, “line positions in an organisation are those concerned directly with
the creation and distribution of utilities or with the management of such activity
b. Staff authority is advisory position in nature. Generally, a staff executive is a specialist
who study a problem, identify the alternatives and make recommendations to the
chief executive for decision. He advises, and to advise is not to decide – only
the line executive is vested with that authority, unless this power is delegated to
him.
c. Functional authority. This process allows a staff executive (doctor, nurses,
pharmacists, engineers, lawyers, accountants, and advertising managers) to make
decisions and implement them within clearly defined guidelines. This process
reduces the workload of line executive by taking advantage of the expertise of the
staff executive. The staff authority aims at supplementing the activities of line authority.
This process helps to reduce the usual conflict between line and staff executives.
Authority and Responsibility

9
Authority, as used here, is the right to act or decide. It describes the relationship between
and among people or groups. A person has authority if he has the right to command and
expect obedience from the subordinate.
No organisation can survive if authority is not vested in some people. In fact, an
organisation is nothing but a structure of authority relationships. In business organisations,
authority flows from the top downward. In designing an organisation, the authority relationship is
clearly defined. It is the responsibility of those in whom authority is vested to coordinate
the activities of the organisation in order to accomplish organisational goals.
Organisational authority is vested in the position not on individuals. The authority is given to
an employee because he needs a degree of authority in order to achieve a given level
of productivity or sales. When the individual resigns, the authority is inherited by
another employee who occupies the position. In this case, we speak of the authority of
the manager, the powers of the president or the governor.
Responsibility
People in authority are answerable to somebody for their use of authority. This is
responsibility. Responsibility implies obligation. A person to whom one delegates authority is
obliged to execute, satisfactorily, the assigned duty. Responsibility originates from a
superior-subordinate relationship. A subordinate must answer to his boss for the use of
formal authority, just as a man answers to his friends for informal authority. In
organisations, responsibility is shared. When a manager authorises an employee to execute
a task, the obligation created by this delegation from the supervisor to subordinate is
shared.
Organisational Chart
An organisational chart, is a visual device that shows the various departments and how
they relate to one another. The chart helps the employees, the board of directors and
stockholders to see, at a glance, the division of responsibility and lines of authority.
One of the major advantages of an organisational chart is that it helps in studying how
to modify or improve the relationships and areas of responsibilities within the
organisational structure. An organisation can operate without a formal, organisational chart,
but the presence of the chart gives evidence of a thoughtful, planned structure. The
chart does in no way indicate the existence of certain positions identified by boxes and
line of authority shown by solid straight lines connection.
DIRECTING AND LEADING
Directing is concerned with channelling human efforts towards the achievement of organisational
goal. The success of these directional efforts is going to determine the satisfactory or
unsatisfactory performance within the organisation. Accordingly, the directing function is the
action function that tests the managerial capability in running the organisation. The satisfactory
performance of workers is going to be partly dependent upon the “directional” ability of
management, but primarily it is a function of the organisational environment. If the environment
is not conducive to optimum performance, the managerial directing in itself cannot bring in the

10
optimum results. Accordingly, favourable conditions must exist which will provide for enthusiastic
cooperation among all people to work together to achieve both individual and group goals.
Since the purpose of directing is to make effective use of employees, it is usually initiated by the
higher echelons of management. However, the employee input into directing decisions will be
highly useful, thus creating an organisational climate where workers enhance the quality of
working life.
Directing and leading comprise the managerial function of guiding, overseeing and leading
people. The primary element in this function is the human element and ideals of personal
relationships. This area is primarily geared towards leadership, motivation, and communication.
Since human element is the central element in the art and science of managing, the
study of human relations has been of major interest to management.
Principles of Direction
1. Integrated objectives: effective directing requires that the goals of the organisation
and the individuals in the organisation should be integrated so that all subordinates
develop a sense of belonging to the organisation and hence the contributions of
the subordinates to the company goals will be at the maximum.
2. Direct supervision: superiors should maintain direct contact with subordinates. Informal
relationships facilitate the function of directing. It also makes communication easier,
encourages feedback and faster decisions. Also, when the direction and communication
is properly understood and comprehended, there will be fewer misunderstandings
and mistakes leading to efficiency in quality and productivity.
3. Participative managerial style: subordinates’ morale will be higher when their
views are seriously incorporated into the managerial decision-making. This will
assist the formation of democratic management. The democratic process makes the
directing process easier, since directing, then, is not taken as a command but as
a form of guidance for improvements.
4. Unity of direction: the direction must be clear and unambiguous and from a
single chain of command, otherwise the authority will be undermined resulting in
disorder and confusion.
5. Follow-through: effective direction demands achievement of results. The results can
only be achieved by being constantly in touch with the developments. This
requires continuous supervision, guidance, advice and coaching of subordinates in
their activities to attain the desired goals.
STAFFING
There are a number of factors that contribute towards the success of an enterprise. These
factors include capital, equipment, manpower, etc. While all these factors are important, the
human factor is the most significant one, since it is the people who have to use all other
resources. Without the productive efforts of workers, the materials and resources will be of no
use. Also, if the people who are in charge of these resources are not sufficiently qualified, then
the utilisation of these resources will not be at the optimum.

11
Accordingly, the staffing function of management is a very significant one; especially in the light
of continuous and dynamic developments in the field of technology, increase in the size of
organisations due to expansion, acquisitions, and mergers and due to changes in the social
structure which makes the group behaviour of the workers more complicated. Staffing is the
traditional management function of attraction and selection of the best people and putting them
on jobs where their talents and skills can best be utilised, and retention of these people through
incentives, job training and job enrichment programs in order to achieve both individual and
organisational objectives. This emphasises managing human and not material or financial
resources. This function is becoming extremely specialised due to unique importance and
complexity of human nature and ever changing psychology, behaviour and attitudes.
The staffing function is generally handled by the human resources department where
personnel management is concerned with “planning, organising, directing and controlling
the development, compensation and integration of people into the system for the purpose
of contributing to organisational, individual and social goals”. The Personnel Management
is a continuous phenomenon and requires a constant alertness and awareness of the
organisational needs and the personnel policies should be such that there is a
continuous monitoring of the system, since the unanticipated shortages or excess of
qualified people in any organisation signal a defect in the planning system.
One of the major problems confronting management is that of motivating workers to
perform assigned tasks to meet or surpass predetermined standards. It is not easy to
motivate an individual, for the success of any motivational effort depends on the extent
to which the motivator meets the needs of the individual employees for whom it is
intended.
Motivation: is that energising force that induces or compels and maintains behaviour. Human
behaviour is motivated, it is goal directed. It can also be defined as an internal psychological
process which its presence or absence is inferred from observed performance.
LEADERSHIP
Leadership is an integral part of management and plays a vital role in managerial
operations. If there is any single factor that differentiates between successful and
unsuccessful organisations, it has to do with dynamic and effective leadership. Peter
Drucker (1954) points out that “managers (business leaders) are the basic and scarcest
resources of any business enterprise”. It will be a valid assumption to state that the
major cause of organisational failures is ineffective leadership. Leadership is not an attribute
of business alone. In the military, in the government, in the academia, in hospitals and in
places where people work in groups, the leadership function emerges. There must be
somebody to guide that group.
Leadership may be defined as the art of influencing and inspiring subordinates to
perform their duties willingly, competently and enthusiastically for the achievement of
group objectives. Most management writers agree that, “leadership is the process of
influencing the activities of an individual or a group in efforts towards goal achievement

12
in a given situation” (Hersey and Blanchard, 1982). It is important to add the element of
“willingness” in the above definition. This element differentiates successful and effective
leaders from the common run of the mill managers. Motivating and influencing people to
move towards a common goal are all essential elements of management, but the
“willingness” of the followers to be led highlights a special quality that puts a leader high
above others.
Types of Leadership:
There are mainly two types of leadership, namely: formal and informal leadership.
Formal leadership:
Formal leadership occurs when a person is appointed or elected as an authority figure.
For example, anyone who is appointed as a manager is also given the authority to
exercise formal leadership in relationship to his subordinates.
Informal leadership:
Informal leadership emerges when a person uses interpersonal influence in a group without
designated authority or power. These leaders emerge in certain situations, because of
their charm, intelligence, skills or other traits, and to whom other people turn to for
advice, direction and guidance. Religious and civic leaders fit into this category.
Successful managers, who exercise their given authority in a formal way, are also capable
of exercising informal leadership relationships with people both within as well as outside
the organisation.
Traits of Leadership
A leader has certain inherent qualities and traits which assist him in playing a directing
role and wielding commanding influence over others. Some of these traits, according to
Jago (1982), are; Energy-drive, Appearance-presentability, A sense of cooperativeness,
Enthusiasm, Personality–height and weight, Initiative, Intelligence, Judgement, Self-
confidence, Sociability, Tact and diplomacy, Moral courage and integrity, Willpower and
flexibility, Emotional stability and Knowledge of human relations.
These traits are not universal in nature. Not all leaders have them all. Not all of these traits
work at all times. While some of these traits differentiate successful managers and leaders
from unsuccessful ones, it is the behaviour of leaders, either as a result of these traits
or otherwise, which is more tangible and obvious and less abstract than traits. The
leadership behaviour is directly related to individual worker activity and group activity,
absences, turnover, and employee morale. These are indicators, to some degree, of the
effectiveness of leadership behaviour.
Theories of Leadership
The Trait Theory
The traditional approach has been to describe leadership in terms of personal traits and
special characteristics of leaders. These traits are not acquired, but are inherent personal
qualities. The trait theory emphasises that leaders are born and not made. This theory
proposes that leadership is a function of these inborn traits. Some of these traits include
13
intelligence, understanding, perception, high motivation, socio-economic status, initiative,
maturity, need for self-actualisation, self-assurance and understanding of interpersonal
human relations.
The existence of these traits becomes a measure of leadership. It holds that the possession
of certain traits permits certain individuals to attain position of leadership. This relationship
between successful leadership and traits was extensively studied by Stogdill (1948). Stogdill
(1974) believes that the pattern of leadership trait is different from situation to situation. A
person who becomes a leader in one situation may not become one in a different
situation. There is no single personality trait that will typify a leader and be applicable in
all situations. Leadership implies activity movement and getting the work done.
The leader is a person who occupies a position of responsibility in coordinating the
activities of the members of a group. Hence, leadership must be conceived of in terms
of interactions for one to lead and others who want to be led. The trait theory of leadership
has suffered from lack of conclusiveness and over-simplifications. The critics have charged
that the theory focuses attention only on the leader and disregards the dynamics of the
leadership process. Also, the theory ignores the situational characteristics which may
result in the emergence of a leader.
Behaviour Theory
This theory studies leadership by looking at leaders in terms of what they do. A leader’s
effectiveness is judged in terms of individual subordinate outcome. Research studies conducted
by Katz, Maccoby and Morse (1957) suggest that leadership behaviour should be defined
along employee centred dimension and production-centred dimension both complementing
each other. This style is expected to show improvements in productivity. Further in-depth
investigations into this approach have been conducted at Ohio State University (Stogdill
and Coons: 1957). These studies isolate two particular factors affecting the leadership
dimension. These are:
1. consideration (of employees) and
2. initiating structure (giving directions and orders).
The structure entails that the leader has to organise and define the role each member is
to assume, assign tasks to them and push for the realisation of organisational goals.
An important discovery made by the Ohio studies is that the leader does not necessarily
have to rate high both on consideration as well as structure element. He can be high
on one and low on the other and still lead the group successfully.
Contingency Theory:
This theory states, that an analysis of leadership involves not only the individual traits
and behaviour but also a focus on the situation. Leadership behaviour is used in
combination with work group contingencies to predict outcomes. The effectiveness of the
leader’s behaviour is contingent upon the demands imposed by situation. There are
three major components that are significant for leadership effectiveness. These include
individual differences among leaders, differences among situations and the manner in
which these two variables are related.
There theory has two major approaches:
14
 1. The Fiedlers Approach, which sees leadership from the manipulation of three major
components (i.e. leader-group relationship, task structure and position of power) and,
2. Situational approaches, which defines leadership in terms of ability to handle a given
situation and is based on the leader’s skill in that given area.
The Path-goal Theory:
The path-goal model of leadership behaviour was propounded by House and Mitchell
(1974). This model emphasises that the leader’s behaviour has to complement the group
work setting and aspirations. This approach is based upon the expectancy theory of
motivation and reflects worker’s beliefs that efforts will lead to successful results. The
leader sets up clear path and clear guidelines through which the subordinates can
achieve both personal and work-related goals and assists them in achieving these goals.
This will make the leader behaviour acceptable and satisfying to subordinates since they
see the behaviour of the leader as an immediate source of satisfaction or as a source
of obtaining future satisfaction.
The path-goal model takes into consideration the different types of leadership behaviour.
There are four such types of behaviour that will support this approach, depending upon
the nature of the situation. These are:
1. Directive: when the demands of a task on hand are ambiguous, directive
leadership is needed; but when the task is inherently clear or clarification is
otherwise available, then a high level of directive leadership is not required and
may, in fact, impede effective performance.
2. Supportive: supportive leadership is friendly and approachable and has the most
positive effect on the satisfaction of the followers working on unpleasant, stressful
or frustrating tasks that are highly repetitive.
3. Achievement oriented: This type of support helps subordinates to strive for higher
performance standards and increases confidence in their ability to meet challenging
goals. This is especially true for followers who have clear-cut, non-repetitive
assignments.
4. Participative: This leadership approach encourages subordinate’s participation in the
decision-making process. The leader solicits subordinate’s suggestions and takes the
suggestions seriously into consideration before making decisions.
Leadership Styles
Leadership styles can be classified according to the philosophy of the leaders. What the leader
does determines how well he leads. A style leadership is a “relatively enduring set of
behaviours which is a characteristic of the individuals, regardless of the situation” (Fiedler, et
al.). Some of such styles includes: Autocratic or dictatorial leadership, Participative leadership
and Free-reign leadership.
Autocratic or dictatorial leadership
Autocratic leaders keep the decision-making authority and control in their own hands and
assume full responsibility for all actions. Also, they structure the entire work situation in
their own way and expect the workers to follow their orders. The autocrat ranges from
15
tough to paternalistic, depending upon whether his motivational approach is threat and
punishment or rewards. The autocratic leader believes that his leadership is based upon
the authority conferred upon him by some source, such as his position, knowledge,
strength or the power to punish and reward.
Advantages of Autocratic Leadership
1. It is useful when subordinates are new on the job and have little or no experience
either in the managerial decision-making process or performing without active
supervision.
2. It can increase efficiency, when appropriate, and get quicker results, especially in
a crisis or emergency situation when the decision must be taken immediately.
3. The paternalistic autocracy is useful when subordinates are not interested in
seeking responsibility or when they feel insecure at the job or when they work
better under clear and detailed directives.
4. It is useful when the chain of command and the division of work is clear and
understood by all.
Disadvantages
1. One way communication without feedback leads to misunderstanding and
communication breakdown.
2. An autocratic leader makes his decisions, alone, which can be very dangerous in
this age of technological and sociological complexity.
3. Since it inhibits worker’s freedom, development of commitment to the objectives of
the organisation is hampered.
4. Since it engenders worker’s resentment, it creates problems with their morale
resulting in poor productivity in the long run.
5. It is unsuitable when the work-force is knowledgeable about their jobs and the job
calls for team work and cooperative spirit.
Participative or democratic leadership
In this type of leadership, subordinates are consulted and their feedback is taken into
decision making process. The leader’s job is primarily in the manner of a moderator, even
though he makes the final decision and he alone is responsible for the results. The
group members are encouraged to demonstrate initiative and creativity and take intelligent
interest in setting plans and policies and have maximum participation in decision-making.
This ensures better management, healthy labour relations, higher morale and greater job
satisfaction. This type of leadership is especially effective when the workforce is
experienced and dedicated and is able to work independently with least directives.
Advantages
1. Active participation in the management by labour assures rising productivity and
satisfaction.
2. Workers develop a greater sense of self-esteem, due to importance given to their
ideas and their contribution.

16
3. They become more committed to changes that may be brought about by policy
changes, since they themselves participated in bringing about these changes.
4. The leadership induces confidence, cooperation and loyalty among workers.
5. It results in higher employee morale.
Disadvantages
1. Democratic leadership requires some favourable conditions in that the labour must be
literate, informed and organised, which is not always possible.
2. This approach assumes that all workers are genuinely interested in the organisation
and that their individual goals are successfully fused with the organisation goals. This
assumption may not always be valid.
3. There must be a total trust on the part of management as well as employees. Some
employees may consider this approach simply as an attempt to manipulate them.
Accordingly, the employees must be fully receptive to this approach to make it
meaningful.
4. Some group members may feel alienated, if their ideas are not accepted for action.
This may create a feeling of frustration and ill-will.
5. This approach is very time consuming and too many viewpoints and ideas may make
the decision-making process more difficult and may be a source of frustration to
impatient management.
6. Some managers may be uncomfortable with this approach because they may fear an
erosion of their power-base and their control over the labour.
7. This approach relies heavily on incentives and motivation of recognition, appreciation,
status and prestige. The labour force may be more interested in financial incentives
instead of prestige.
Laissez-faire or free-reign leadership
In this type of leadership, the leader is just a figurehead and does not give any
direction. He acts principally as a liaison between the group and the outside elements
and supplies necessary materials and provides information to group members. He lets
the subordinates plan, organise and develop their own techniques for accomplishing goals
within the generalised organisational policies and objectives. The leader participates very
little and instead of leading and directing, he becomes just one of the members. He
does not attempt to intervene or regulate or control and there is complete group or
individual freedom in decision-making.
This type of leadership is highly effective when the group members are highly intelligent
and are fully aware of their roles and responsibilities and have the knowledge and skills
to accomplish these tasks without direct supervision. This type of leadership is evident in
research laboratories where the scientists are fairly free to conduct their research and
make their decisions. Similarly, in a university or a college, the chairperson does not
interfere in the professor’s teaching methods, but only assigns the courses to be taught.
From then onwards, the professors are very much their own leaders.
Advantages
17
1. It creates an environment of freedom, individuality as well as the team spirit.
2. It is highly creative, with a free and informal work environment.
3. This approach is very useful where people are highly motivated and achievement-
oriented.
Disadvantages
1. It may result in disorganised activities which may lead to inefficiency and chaos.
2. Insecurity and frustration may develop due to lack of specific decision-making authority
and guidance.
3. Team spirit may suffer due to possible presence of some uncooperative members.
4. Some members may put their own interests above the group and team interests.
Personal Characteristics of Leaders
Leadership is an intangible quality and its effectiveness can best be judged by the
behaviour and attitudes of followers. Even though personal backgrounds and
personalities differ widely; education, social status etc., are poor indicators of judgement
of successful leaders. However, some behavioural characteristics may be common to most
effective leaders. Some of these characteristics are:
1. Ability to inspire others
2. Problem solving skills
3. Emotional maturity
4. Ability to understand human behaviour
5. Verbal assertiveness
6. Willingness to take risks-routine work
7. Dedication to organisational goals
8. Skill in the art of compromise
Leadership and Power
A formal leader requires a power base and authority to perform the following functions:
1. Setting of organisational goals within constraints of internal needs and external
pressures.
2. Integrates the activities of his group and develops its team spirit cohesiveness.
3. Serves as a representative of group members and an official contact with other parts
of the organisation and facilitates group interaction.
4. Gives out rewards and punishments or recommendations.
5. Serves as a father figure and sometimes has a major impact on the norms, beliefs
and values of the group.
6. resolving internal conflicts by bringing about a balance among conflicting interests.
7. Serves as a model of behaviour for other members. These functions can only be exercised
with a power base.
Types of Power
Some of the power bases classified by French and Raven (1960) are as follows:
1. Legitimate power: this is the power that is vested in the leadership to take certain
actions. This power may be designated by a legitimising agent, for example, the
18
 president of a company designating his assistant to make certain decisions. Similarly,
the power may be given to a particular leader who has been elected by the
populace. For example, the president of a country or an elected mayor of a city has
certain power and authority. This power may also be culturally specified. In many
cultures, children simply “obey” their parents. In some other cultures, people of certain casts
are highly respected. In India, old age brings with it the power to command respect.
2. Reward power: this power is based upon the ability to give or influence the rewards
and incentives for the subordinates. These may be in the form of promotions,
increase in pay, bonuses or other form of recognition for a job well done.
3. Coercive power: on the other end of the reward power is the coercive power which is
the ability to influence punishment. This is the power to reprimand, demote or fire
for unsatisfactory execution of duties.
4. Referent power: this power is more of personal nature than a positional nature, in the
sense that this power is not designated or acquired because of a position, but
because of personal “charisma” of the leader. This is especially true in the case of
film stars and celebrities whose followers and fans follow what the celebrities do.
5. Expert power- this is also a personal power acquired by expertise in a field or area.
For example, we generally follow our doctor’s or our accountant’s instructions,
because we believe in their ability and knowledge in those specified areas. If the
subordinates view their leaders as competent, they would follow him (Organ and
Hammer, 1982).
6. Connections power: some people have a lot of influence over others simply because
of their “connections” with the right people. A person knowing the manager of a
company can get a job for somebody or recommend a promotion for somebody and
hence commands considerable influence. Hence, this “connected” person has “clout”
via the resources of his friendship with the right people.
Delegation
Delegation is the organisational process that permits the transfer of authority from a
superior to a subordinate. Delegation of authority empowers a subordinate to make
commitments, use resources and take action in relation to duties assigned to him. No
organisation can function effectively without delegation. The division of an organisation into units
(departmentalisation) involves delegation. Delegation originates from the fact that one
person alone cannot successfully discharge all the responsibilities in an organisation. In
essence, delegation of authority means that “a subordinate has the power to make
decisions and to act within explicit limits without checking with superiors”. Delegated
authority enables the superior to share responsibility with his subordinate. When one delegates,
three major factors are implicit:
1. There is assignment of responsibility.
2. There is a delegation of authority.
3. There is a creation of accountability.
Delegation involves accountability. Accountability means answering for the use of your
formal authority by someone else. Delegation of formal authority to another person does
19
not relieve one of the necessities of accounting for it. A subordinate must account for
the use of delegated authority because an obligation is created. A subordinate is held
responsible for assigned tasks and he is accountable for the satisfactory completion of
the duty.
Key Principles of Delegation
1. Parity of authority and responsibility. One of the major principles of delegation states that
for effective delegation, authority granted to a subordinate must be equal to the
responsibility assigned to him. It is to be expected that when responsibility is given
to a subordinate, he is to have commensurate authority to discharge it. Failure to
equate responsibility with authority leads to inefficiency. In some instances, the
subordinate does not understand the limit of his authority.
2. Absoluteness of accountability. This principle states that "although responsibility may be
assigned and authority may be delegated to subordinates accountability to one's
superior can neither be assigned nor delegated." When one delegates one's
assigned responsibility to someone else, one is still fully accountable to one's superior
for its execution. This principle prevents the executive from "passing the buck." In order to
delegate properly, one has to retain a reservoir of authority to ensure that the task is
properly carried out. Accountability to one's superior is absolute and not transferable.
3. Principles of unity of command. This principle states that "a subordinate should be
accountable to one superior at a time”. It is important for the subordinate to report to
only one superior in order to maintain the chain of command. The essence of unity of
command is to avoid conflicting instructions. It is essential in all organisations for an
employee to receive delegated authority from one boss and is accountable to the
same boss for the assigned task. The principle of unity of command is sometimes
violated where functional authority exists. The subordinate receives instruction from his
line superior and also from his staff executive. This could happen without any major
consequence if the authority of the staff executive is clearly defined. The principle
could is also be violated each time one bye-passes a level of intermediate
supervision.
Barriers to Delegation
Despite the fact that delegation is a very important organisational process, some
executives find it difficult to delegate for the following reasons:
1. Some executives get trapped in the "I can do it better myself fallacy”.
2. Lack of ability to direct or encourage co-operation among subordinates.
3. Fear that delegation diminishes managerial authority.
4. Absence of selective controls to warn of impending difficulties.
5. Lack of confidence in subordinates.
6. A temperamental aversion to taking a chance.
Combating Barriers to Delegation
To overcome the barriers to delegation, the following guidelines are suggested:
1. Realise that subordinates have much to contribute to decision-making in their areas
of specialisation.
20
2. Learn to plan ahead so that delegation can take place before, rather than, after the
act.
3. Build confidence in employees through training, recognition, and counselling.
4. Develop control systems that will point out impending problems.
5. Be willing to take a chance on subordinates.
6. Force subordinates to make decisions while giving them help when needed.
7. Do not be overly critical when subordinates make mistakes.
8. Let subordinates know what is to be done and the results that are expected.
9. Supply subordinates with adequate resources to fulfil their responsibilities.
10. Provide adequate incentives so that employees are willing to accept increased
delegation.
11. Develop an organisation structure that provides for personal growth and challenge,
thereby helping subordinates become more self reliant.

21