Lecture 1

1. Contrast efficiency and effectiveness. Give an example of a time when

an organization was effective but not efficient, efficient but not
effective, both efficient and effective, and neither efficient nor
effective.

The basic purpose of management is to ensure that an organization’s goals are achieved
in an efficient and effective manner. Contrasting Efficiency and Effectiveness given
below:

Efficiency Effectiveness
Definition Using resources wisely Making the right
and in a cost- effective decisions and
way successfully
implementing them.

Measurement Quantitative metrics Qualitative

assessment

Example Produce good products at Implementing a strategy

relatively low costs that significantly
increases company
revenue.

1. Effective but not efficient: A small local charity that delivers meals to homeless
kids. They successfully provide nutritious meals to all their clients (effective).
However, they use individual volunteers driving their own cars to make deliveries,
resulting in high fuel costs and time-consuming routes (not efficient).

2. Efficient but not effective: A fast-food restaurant that has streamlined its
processes to serve meals quickly and at low cost (efficient), but the food is unhealthy
and contributes to obesity in the community (not effective).

3. Both efficient and effective: A well-run manufacturing plant that produces high-
quality products with minimal waste. They use lean manufacturing principles to
streamline processes (efficient) while consistently meeting production targets and
maintaining high product quality (effective).

4. Neither efficient nor effective: A government agency tasked with reducing

traffic congestion that implements a poorly planned road expansion project. The
project goes over budget and takes longer than expected (not efficient), and upon
completion, it fails to reduce traffic congestion (not effective).

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2. Management: Science or Art?

Management can be viewed as both a science and an art. Management has got two
faces like a coin; on one side it is art and on the other it is science.
It is considered as a science because:

• Uses systematic methods, technical skills and techniques

• Relies on data and analytics

• Applies proven theories and models It is called an

art because:

• Requires intuition, experience and judgment

• Demands creativity in problem-solving

• Need conceptual, interpersonal, time-management, and communication,

skills
Effective management is a blend of both science and art. And successful executives
recognize the importance of combining both the science and the art of management
as they practice their craft. Therefore, I think Management is both Science and art.

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3. What are the four basic activities that comprise the management
process? How are they related to one another?

The four basic activities that comprise the management process are:

Planning
1. Planning and Decision making and
Organizing
Decision
2. Organizing
making
3. Leading
4. Controlling

Leading Controlling

This is the logical order (as indicated by the solid arrows), but it's not always strictly
followed, Managers often work on multiple activities simultaneously and frequently
move back and forth between activities (as shown by the dotted arrows).

Planning and Decision Making: Planning means setting an

organization’s goals and deciding how best to achieve them. Decision making
involves selecting a course of action from a set of alternatives.
Organizing: Organizing involves determining how activities and resources are to be
grouped.
Leading: Leading is the set of processes used to get members of the organization to
work together to further the interests of the organization.
Controlling: Monitoring the organization’s progress toward its
goals.

While these activities can be viewed sequentially, in practice they often overlap and
interact continuously. For example, a manager might need to adjust plans (planning)
based on performance feedback (controlling), which might require reorganizing
resources (organizing) and communicating changes to staff (leading).

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4. Briefly describe the seven basic managerial skills. Give an example of each.

In addition to fulfilling numerous roles, managers also need a number of specific skills
if they are to succeed. The most fundamental management skills are technical,
interpersonal, conceptual, diagnostic, communication, decision-making, and time-
management skills.

1. Technical Skills: The skills necessary to accomplish or understand the specific

kind of work being done in an organization. • Examples: The manager of a
software development company who understands how to write and test relevant
code and application.
2. Interpersonal Skills: The ability to communicate with, understand, and motivate
both individuals and groups. • Examples: A manager who establishes a good
relationship with an abrasive colleague.
3. Conceptual Skills: The manager’s ability to think in the abstract. • Examples: The
manager who first sees a new market for an existing product; a manager who
accurately forecasts a next- generation technology.
4. Diagnostic Skills: The manager’s ability to visualize the most appropriate
response to a situation. • Examples: A manager who can understand why
customer complaints are increasing.
5. Communication Skills: The abilities both to effectively convey ideas and
information to others and to effectively receive ideas and information from
others. • Examples: A manager who can carefully listen to what others are
saying and then craft an effective reply.
6. Decision-Making Skills: The manager’s ability to correctly recognize and
define problems and opportunities and to then select an appropriate
course of action to solve problems and capitalize on opportunities. •
Examples: A manager who can quickly recognize the need for a decision
and then frame the nature of the decision that is required;
7. Time-Management Skills: The manager’s ability to prioritize work, to
work efficiently, and to delegate appropriately. • Examples: A manager
who does not easily get distracted by irrelevant issues.

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5. Briefly describe the ten basic managerial roles.

Senior managers generally play ten different roles, and that these roles fall into three
basic categories:
Interpersonal, Informational, And Decisional.

Interpersonal Roles: The roles of figurehead, leader, and liaison, which involve
dealing with other people.
Informational Roles: The roles of monitor, disseminator, and spokesperson, which
involve the processing of information.
Decisional Roles: The roles of entrepreneur, disturbance handler, resource allocator,
and negotiator, which relate primarily to making
decisions.

Categories Roles Sample Activities

Interpersonal Figurehead Attending ribbon-cutting
ceremonies

Leader Motivating employees to improve

productivity.

Liaison Coordinating activities of two

groups.

Informational Monitor Scanning industry reports to

stay abreast of development
Disseminator Sending memos outlining new
organizational initiatives

Spokesperson Making speech to discuss growth

plans

Decisional Entrepreneur Developing new ideas for

innovation

Disturbance Resolving conflict between

handler two subordinates
Resource allocator Reviewing and revising budget
requests

Negotiator Reaching agreement with a key

supplier or labor union

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6. Describe the kinds of managers found at different levels and in
different areas of the organization.

Organizations generally have three levels of management. Given Below:

Top Managers Middle Managers First-Line Managers

Implement the policies

Manage the and plans of top Supervise and
organization’s overall managers and supervise, coordinate the
Responsibility goals, strategy, and coordinate the activities activities of
operating policies. of lower- level managers. operating
employees.

President, Vice Plant Manager,

Common Titles President, and Operations Manager, Supervisor,
Chief Executive and Department Head Coordinator, and
Officer (CEO) Office Manager

More compared to top

Number of Less number More compared to top and middle level
members level

Shareholders,
Accountability Government officials Top level Managers Middle level
Managers

Authority More Comparatively less Less

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 Regardless of their level, managers may work in various areas within an organization.
Some of areas are:
Areas of Management Responsibility
Marketing Getting consumers and clients to buy the
organization’s products or services.
Finance Deal with an organization’s financial resources.

Operations Concerned with creating and managing the systems that

create an organization’s products and services.

Human Resource Involved in human resource planning, recruiting

and selection
Administration Familiar with all functional areas of management but not
associated with any particular management specialty.

Other Specialized managerial positions directly related

to the needs of the organization. Ex: Supply Chain

7. Briefly describe the principles of management.

The principles of management are foundational guidelines that help managers effectively
lead and run organizations. They are given below:

• Division of Labor: Breaking down a job to different tasks and completed by workers
to increase efficiency.
• Authority: Managers must be able to give orders
• Discipline: Employees should follow and respect the governed rules.
• Unity of command: Every worker should receive orders from only 1 boss.
• Unity of direction: Each group in an organization with a same objective should
follow 1 manager using one plan achieving the goal
• Subordination: Manager shouldn’t give priority to one employee over the interest
of the organization.
• Remuneration: Fair wages should be paid
• Centralization: Subordinates are involved in decision making
• Scalar chain: Communication should be followed (top level to bottom level)
• Order: Systematic arrangement of men/machine.
• Equity: Managers should be kind and fair to subordinates

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• Stability of tenure of personnel: High employee turnover is inefficient. Should
provide planning and ensure replacements.
• Initiative: Employees will work hard who are allowed to execute plans and achieve
goals.
• Esprit de corps: Promoting team spirit in an organization.

Lecture 2

1. Summarize the essential functions of decision making and the

planning process.

The planning process is the first basic managerial function that organizations
must address. The planning process takes place within an environmental context,
Managers must develop a number of different types of goals and plans .

Firstly, managers must establish the organization’s mission. The mission

outlines the organization’s purpose, premises, values, and directions. Flowing from
the mission are parallel streams of goals and plans. Directly following the mission are
strategic goals. These goals and the mission help determine strategic plans. Strategic
goals and plans are primary inputs for developing tactical goals. Tactical goals and the
original strategic plans help shape tactical plans. Tactical plans, in turn, combine with
the tactical goals to shape operational goals. These goals and the appropriate tactical
plans determine operational plans. Finally, goals and plans at each level can also be
used as input for future activities at all levels. Decision making is the underlying
framework of all planning because every step of the planning process involves a
decision.

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 2. Discuss the purpose of organizational goals, identify different kinds
of goals, discuss who sets goals, and describe how to manage
multiple goals / Describe the nature of organizational goals. Be certain
to include both the purposes and the kinds of goals.

Goals are desired future targets that organizations strive to achieve. They
provide a sense of purpose, guide actions, and help align efforts toward a common
vision.
Goals serve four basic purposes:

1. Provide Guidance and Direction, Goals can help everyone understand where
the organization is going and why getting there is important.
2. Facilitate Planning, Effective goal setting promotes good
planning, and good planning facilitates future goal setting.
3. Inspire Motivation and Commitment, Goals that are specific and moderately
difficult can motivate people to work harder, especially if attaining the goal is
likely to result in rewards.
4. Promote Evaluation and Control, performance can be
assessed in the future in terms of how successfully today’s
goals are accomplished.

Organizations establish many different kinds of goals. In general, these goals

vary by level, area, and time frame.

1. Different goals by organizational Level

• Mission: A statement of an organization’s fundamental
Purpose
• Strategic Goals: A goal set by and for top management of
the Organization
• Tactical Goals: A goal set by and for middle managers of
the organization
• Operational Goals: A goal set by and for lower-level
managers of the Organization

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2. Different goals by management Area
• Operations,
• Marketing,
• Finance,
• Human Resource,
• Product innovation (R&D)

3. Depending on Time frame

• Longer term - 10 years and above
• Intermediate - around 5 years
• Short-term - around a year

All managers should be involved in the goal-setting process. Each manager,

however, generally has responsibilities for setting goals that correspond to his or her
level in the organization.

Kind of Goals Responsible level of management

The mission and Board of directors and top managers
Strategic Goal

Tactical Goal Collaborative work of Top and Middle managers

Operational Goal Jointly Middle and Lower-level managers

Many managers also set individual goals for themselves.

Managers need to pay special attention to the Importance of managing

multiple goals. Organizations set many different kinds of goals & sometimes
experience conflicts or contradictions among goals. To address such problems,
managers must understand the concept of optimizing.
Optimizing involves balancing and reconciling possible conflicts among goals.
Because goals may conflict with one another, the manager must look for
inconsistencies and decide whether to pursue one goal to the exclusion of another or
to find a midrange target between the extremes.

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3. Identify different kinds of organizational plans, note the time frames
for planning, discuss who plans, and describe contingency planning.

Organizations establish many different kinds of plans. At a general level, these

include strategic, tactical, and operational plans.

1. Strategic Plan: A general plan outlining decisions of resource allocation,

priorities, and action steps necessary to reach strategic goals.
2. Tactical Plan: A plan aimed at achieving tactical goals, developed to implement
parts of a strategic plan.
3. Operational Plan: Focuses on carrying out tactical plans to achieve
operational goals.

Plans are developed across a variety of time horizons, including long-range,

intermediate, and short-range time frames.

1. Long-range Plan: A plan that covers many years, perhaps even decades;
common long-range plans are for five years or more.
2. Intermediate Plan: A plan that generally covers from one to five years.
3. Short-range Plan: A plan that generally covers a span of one year or less.

Essential people in an organization responsible for effective planning. Following

the parties who plays roles in planning:

• Planning Staff- professional planning staff.

• Planning Task Force- comprises line managers with a special interest in the
relevant area of planning. May have member from planning staff.
• Board of Directors- establishes the corporate mission and strategy.
• Chief Executive Officer- the president of the BoD. The CEO is
• probably the single most important person in any organization’s
planning process.
• Executive Committee- the top executives in the organization
• Line Management- persons with formal authority and
responsibility for the management of the organization.

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 Contingency planning Contingency planning helps managers anticipate and
plan for unexpected changes. The determination of alternative courses of action to be
taken if an intended plan is unexpectedly disrupted or rendered inappropriate.
Contingency planning is becoming increasingly important for most
organizations, Especially for those operating in particularly complex or dynamic
environments. Contingency planning is a useful technique for helping managers cope
with uncertainty and change.

The mechanics of contingency planning are shown in Figure 6.3. In relation to an

organization’s other plans, contingency planning comes into play at four action points.
At action point 1, Management develops the basic plans of the organization. Also
Managers usually consider various contingency events. A variety of contingencies are
usually considered.
At action point 2, the plan that management chooses is put into effect. The most
important contingency events are also defined. Only the events that are likely to occur
and whose effects will have a substantial impact on the organization are considered
in the contingency planning process.
At action point 3, the company specifies certain indicators or signs that suggest that a
contingency event is about to take place. As indicators of contingency events are
being defined, the contingency plans themselves should also be developed.
After this stage, the managers of the organization monitor the indicators identified at
Action point 3. If the situation dictates, a contingency plan is implemented.
Otherwise, the primary plan of action continues in force.
Finally, action point 4 marks the successful completion of either the original or a
contingency plan.

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4. Describe the scope, responsible personnel, and time frames for each
kind of organizational plan. How are plans of different kinds related?

Organizational plans can be categorized into three main types: strategic,

tactical, and operational. Each type has its own scope, responsible personnel, and
time frames.

Strategic Plan Tactical Plan Operational Plan

Address questions A more Specific and relatively narrow in

Scope of scope (big picture concrete focus plan scope (day-to-day
plan) plan)
Top management Upper and middle Middle and lower-
Responsible and the board of management. level managers.
personal directors.
Extended time Shorter time Short-term focus
Time frame horizon (five years horizon (one to five (one year or less)
or more) Years)

The different types of planning in management work together like building

blocks. These types fit like pieces of a puzzle. Strategic planning sets the direction,
tactical planning creates the plays, operational planning manages daily tasks, and
contingency planning handles unexpected bumps in the road. Together, they help a
company succeed and adapt to a changing world.

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5. Describe the basic types of operational plans used by organizations. /
Explain the various types of operational plans. Give a real or
hypothetical business example for each type.

Operational plans are at the lower levels of the organization, have a shorter
time horizon, and are narrower in scope. Operational plans are derived from a
tactical plan and are aimed at achieving one or more operational goals. Two major
types of operational plans are single-use plans which have two types and standing
plans which have three types.

Plan Description Example

Single-use Developed to carry out A course of Marketing Campaign for

action not likely to be repeated in New Product Launch
Plan the future

Program Single-use plan for A large set of Employee Wellness

activities Program

Project Single-use plan of less scope and Implementation Of New

complexity than A program ERP System:

Standing Plan developed for activities that Customer Service

recur regularly over A period of time Response Plan
Plan
Policy Standing plan specifying the Remote Work Policy
organization’s general response to A
designated problem or situation

Standard Standing plan outlining steps to be Payroll Processing

Operating followed in particular circumstances
Procedure
Rules And Standing plans describing exactly Workplace Safety Rules
Regulations how specific activities are to be
carried out

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6. Identify the major barriers to goal setting and planning, how
organizations overcome those barriers, and how to use goals to
implement plans.

Several circumstances can serve as barriers to effective goal setting and

planning. As part of managing the goal-setting and planning processes, managers
must understand the barriers that can disrupt them. Major Barriers are:

• Inappropriate goals: unrealistic, vague, or misaligned with the organization's

objectives can lead to confusion and lack of direction.
• Improper reward system: rewards are not aligned with goal achievement, it
can demotivate employees and undermine the goal-setting process.
• Dynamic and complex environment: Rapid changes and uncertainties in the
external environment can make it difficult to set and maintain relevant goals.
• Reluctance to establish goals: Some individuals or organizations may hesitate
to set goals due to fear of failure or lack of confidence in achieving them.
• Resistance to change: Employees may resist new goals, especially if they require
significant changes to their routine or work habits.
• Constraints: Limited resources, time, or support can hinder the ability to set
and achieve meaningful goals.

Methods for overcoming these barriers include:

• Understanding the purposes of goals and plans: Clearly defining and

communicating the objectives behind goals and plans helps ensure alignment
and commitment from all stakeholders.
• Communication and participation: Involving team members in the goal-setting
process and maintaining open communication can reduce resistance and increase
engagement.
• Consistency, revision, and updating: Regularly revisiting and adjusting
goals to reflect changes in the environment or organizational priorities
ensures they remain relevant and achievable.
• An effective reward system: Implementing a reward system that appropriately
recognizes and incentivizes goal achievement motivates individuals to strive
towards their objectives.

One particularly useful technique for managing goal setting and planning is
formal goal setting, a process of collaborative goal setting and planning. Some firms
call this approach management by objectives.

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6. List the steps in the formal goal-setting process. What are some of the
advantages for companies that use this approach? What are some of the
problems that may arise from the use of this approach?

The purpose of formal goal setting is generally to give subordinates a voice in

the processes and to clarify for them exactly what they are expected to accomplish in
a given time span. Thus, formal goal setting is often concerned with goal setting and
planning for individual managers and their units or work groups.

The basic mechanics of the formal goal-setting process are shown in Figure and
listed in below:

1. Establishing the organization’s basic goals and plans is extremely

important
2. Collaborative goal setting and planning are the essence of formal goal setting.
The collaboration involves a series of distinct steps.
3. Managers tell their subordinates what organizational and unit goals and
plans top management has established.
4. Then managers meet with their subordinates on a one-to-one basis to arrive at
a set of goals and plans for each subordinate that both the subordinate and the
manager have helped develop and to which both are committed.
5. Next, the goals are refined to be as verifiable (quantitative) as possible and
to specify a time frame for their accomplishment. They should also be
written. Further, the plans developed to achieve the goals need to be as
clearly stated as possible and directly relate to each goal.
6. Managers must play the role of counselors in the goal-setting and planning
meeting.
7. Finally, the meeting should spell out the resources that the subordinate will
need to implement his or her plans and work effectively toward goal
attainment.

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8. Conducting periodic reviews as subordinates are working toward their goals is
advisable.
9. At the end of the period, the manager meets with each subordinate again to review
the degree of goal attainment. They discuss which goals were met and which were
not met in the context of the original plans.
10. Lastly, the evaluation meeting may also serve as the collaborative
goal-setting and planning meeting for the next time period.

Advantages of goal setting are:

1. Create/ Improve employee motivation system.

2. Enhance Communication
3. Do Performance appraisals more objectively
4. Identify superior managerial talent for future promotion
5. Provide systematic management philosophy
6. Facilitate controls

Problems that may arise from using goal settings are:

1. Lack of top-management support

2. Delegated to lower management
3. Limit program’s effectiveness
4. Overemphasize quantitative goals and plans
5. Burden with too much paperwork and record
6. Create resentment and a lack of commitment

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 Lecture 3

1. What is Departmentalization. Describe the kinds of

departmentalization.

The process of grouping jobs according to some logical arrangements is called

Departmentalization. There are mainly 4 common bases for departmentalization.

• Function Departmentalization:

Advantages Disadvantages
Each dept can be staffed with experts Decision making is slow and more complex
Managers need to be familiar with narrow Employees narrow their focus and lose sight
set of skills of the desired goals.
Coordination inside each section is easier Performance is difficult to monitor.

• Product Departmentalization:

Advantages Disadvantages
All activities associated with one product Administration cost increases as each dept
can be integrated and coordinated. has its own area experts.
Speed and effectiveness of decision making Managers focus on their products to the
is enhanced exclusion of the rest of the organization.
Performance of each product can be
assessed.

• Customer Departmentalization:

Advantages Disadvantages
The organization uses skilled specialists to A large administrative staff is needed to
deal with unique customers. integrate activities of various departments.

• Location Departmentalization

Advantages Disadvantages
Responds easily to unique customers and A large administrative staff is needed to
environmental characteristics. keep track of units in scattered locations.

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 2. Briefly explain the differences between line and staff positions.

Differentiating between positions is one of the elements of organization structure. Here are mainly 2
positions.

• Line Position: it’s a position in direct chain of command that’s responsible for the achievement of
an organization goal.

• Staff Position: Intended to provide expertise, advice, support for the line position.

The differences are below:

Line Position Staff Position

Purpose Works directly towards organization goals Advice and assist
Authority Formal or legitimate authority created by Less concrete and may take
organizational hierarchy variety of form

3. What is Centralization and Decentralization. List their

advantages and disadvantages.
• Centralization: Systematically retaining power and authority in the hands of high-level managers.

• Decentralization: Systematically delegating power and authority throughout the organization to

middle and lower-level managers.

Advantages and Disadvantages of Centralization.

Advantages Disadvantages

Quality in decision making Slows down operation

Needs lower training Delays decision making

Standardization of work standard and instructions Reduces scope for specialization

Coordination facility Discourages initiative

Efficient performance of expert work Lacks adaptivity to change

Identification of intermediate collaboration with least Over burden on top management

determinant organization.
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 Use of Economic Scale Poor upward communication

- Bureaucratic Leadership

Advantages and Disadvantages of Decentralization

Advantages Disadvantages
Activity centered on results Lower-level managers take decision without
seeing the big picture
Intermediate level employees with greater Lack of coordination among autonomous
involvement managers
Increased internal competition Lower-level managers objectives may not be
those of the organization
Minor workflow Difficult to spread innovative ideas in the
organization
Collaborators with greater involvement with
organization objectives
Most formative training tool at training level

Easier evaluation of activity developed

4. Describe the five alternatives to job specialization. What is the

advantage of each, as compared to specialization?

Managers have sought approaches to job design that achieve better organizational demands for efficiency
and productivity and autonomy. There are 5 alternatives to job approaches. They are:

• Job Rotation:
➢ Systematically moving employees from one job to other
➢ Jobs that are controllable to rotation tend to be relatively standard and routine.
➢ Workers are satisfied at first but soon the satisfaction will fade away.

• Job Enlargement:
➢ Increases total number of tasks for workers to perform.

• Job Enrichment:
➢ Increasing both number of tasks and the control the worker has over the job.
➢ Managers delegate more authority to employees.
➢ Increases responsibility of sub-ordinates.
➢ New challenging tasks increase employee growth and advancement.

• Job Characteristics:
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 ➢ Skill variety: Number of tasks a person does in a job
➢ Task identity: Extent to which a worker completes a portion of a job
➢ Task significance: Perceived importance of the task
➢ Autonomy: The degree of control a worker has over the task.
➢ Feedback: Extent to which a worker knows how the task is being performed.

• Work Teams:
➢ Allows an entire group to design the work system to be used in performing an interrelated
set of tasks.

In Job specialization the benefits were

➢ Workers can be skilled at a task
➢ Transfer time between tasks decreased
➢ Employee replacement was easier
➢ Specialized equipment can be more easily developed

Lecture 4

1. What activities do managers & leaders perform? Do

organizations need both managers and leaders? Why or why
not?

A leader is someone who can influence others and who has managerial authority and can lead a
group of people towards a goal.

A manager is someone whose primary responsibility is to carry out the management process.

Both managers and leaders are crucial for an organization’s success. Managers ensure that the
organization runs efficiently and meets its goals, while leaders inspire and guide the organization
toward growth and innovation. An organization that lacks either is likely to struggle, either with
stagnation (if it lacks leaders) or chaos (if it lacks managers). Ideally, organizations should foster
both strong management and leadership capabilities, sometimes even within the same individuals,
depending on the context and needs.

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 2. Describe the subordinate’s characteristics, leader behaviors,
and environmental characteristics used in path–goal theory.
How do these factors combine to influence motivation?

Path–goal theory is a leadership theory that focuses on how leaders can motivate subordinates to
achieve their goals by clarifying the path to those goals and removing obstacles. The primary
functions of a leader are to make valued or desired rewards available in the workplace and to
clarify for the subordinate the kinds of behavior that will lead to goal accomplishment or rewards.

Fig: Path goal Framework

Matching Leadership Style to Subordinate and Environmental Characteristics, Clarifying the Path to
Goals, Enhancing Rewards, Increasing Subordinate Confidence these are the factors that combine
to influence the subordination to perform well.

** Situational Factors:

3. In your own words, define political behavior. Describe four

political tactics and give an example of each.

Political Behavior: The activities carried out for a specific purpose of acquiring, using power to obtain ones’
preferred outcomes.

4 Political Tactics:

• Inducement: Offering something to someone in return for his support.

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 Example: A manager might promise a team member a promotion or a bonus if they take on
additional responsibilities or support a particular project that the manager is invested in.

• Persuasion: persuading others to support a goal that are logical as well as subjective and personal.
Example: A team leader might persuade colleagues to back a new initiative by presenting data that
shows how the initiative will improve team efficiency.

• Creation of Obligation: Provide support for others position that obliges that person to return the
favor in future.
Example: An employee might stay late to help a colleague complete a difficult task, creating a sense
of obligation that the colleague will respond by supporting the employee’s ideas later on.

• Coercion: Use force to get one`s way.

Example: A supervisor might threaten to give a poor performance review or deny a promotion if an
employee does not follow specific instructions.

4. How leadership is developed? Is it born or made through

process?

Leadership is a process what leaders do such as influence to shape the organizations’ goal, motivate others
behavior towards goal.
There are some compelling arguments on both sides. However, in modern leadership studies defines that
while certain inborn qualities may predispose individuals to leadership, effective leaders are primarily
"made" through experience, education, and deliberate practice.

There are some traits which makes a particular person a leader. They are

➢ Intelligence
➢ Assertiveness
➢ Good vocabulary
➢ Attractiveness
➢ Self confidence
➢ Risk taker

while some people may be born with certain traits (Charisma, confidence, decisiveness etc.) that can help
them in leadership roles, the most effective leaders are generally made through a deliberate and ongoing
process of learning, growth, and experience.

5. How does a leader use his power?

• Legitimate Request: it’s granted through the organization’s hierarchy. The leader has the right to
make the requests, make interactions between managers and subordinates.
• Instrumental compliance: Based on Reinforcement theory. The subordinates comply to get the
reward the manager controls.
• Coercion: It implies that the subordinates will be punished if he doesn’t do anything
• Rational Persuasion: Persuade the subordinate that compliance is his/her best interest. Its like a
reward system but the managers don’t control the reward
• Personal identification: A manager who has a referent power over a subordinate can shape its
behavior by engaging in desired behavior

Prepared by Muhaimin C-70 and Tahzib A-71

• Inspirational Appeal: Induce a subordinate to do something consistent with a set of high values.
• Information Distortion: The manager can change/withhold information to influence subordinates’
behavior.

Prepared by Muhaimin C-70 and Tahzib A-71