DIPLOMA IN ENGINEERING

NOWGONG POLYTECHNIC
6TH SEMESTER

INDUSTRIAL MANAGEMENT & ENTREPRENEURSHIP – Hu – 601

UNIT 2 -LEADERSHIP, DECISION MAKING AND COMMUNICATION

A. LEADERSHIP
DEFINITION
"A leader is one who knows the way, goes the way and shows the way." -John C. Maxwell
"The ultimate measure of a man is not where he stands in the moments of comfort, but where
he stands at times of challenge and controversy." - Martin Luther King, Jr.
Dictionary definition of a leader- "the person who leads or commands a group, organization,
or country."
So, a leader is the one who leads. A good leader is enthusiastic about their work or cause and
also about their role as leader. People will respond more openly to a person of passion and
dedication. Leaders need to be able to be a source of inspiration, and be a motivator towards
the required action or cause. Need of a leader in an organization: A leader sets a clear vision
for the organization, motivates employees, guides employees through the work process and
builds morale. Leadership involves leading others toward achieving clear goals.
The definitions given by some famous authors and management experts are given below:
Koontz and O'Donnell, "Leadership is the ability of a manager to induce subordinates to work
with confidence and zeal."
Dubin, R. "Leadership is the exercise of authority and making of decisions."
Allford and Beaty, "Leadership is the ability to secure desirable actions from a group of
followers voluntarily, without the use of coercion."
Keith Davis, "Leadership is the ability to persuade others to seek defined objectives
enthusiastically It is the human factor which binds a group together and motivates it towards
goals."
The definition of leadership is to "inspire, influence and guide others to participate in a common
effort. Good leaders don't just hand down orders or hand out directives with no explanation.
Instead, they use effective communication and motivation techniques to facilitate action by
their teams. Leaders that inspire and motivate their teams solicit input from employees, keep
team members informed, give timely and specific feedback regarding job performance, ensure
training needs are met and hold employees accountable.
ROLES OF A LEADER
1. To Provide a Vision to the Organization
Providing a vision for the entire business organization team is the single most important role
of the leader in the company.. When team members know the vision and goals of the
organization, they are more focused and understand how their individual role helps to drive the
success of the business.

2. To Establish Effective Organizational Structure and Communication Protocols

A leader will set up a clearly defined organizational structure which includes an organizational
chart outlining the chain of command and protocols for effective communication. Members of
the organization team need to understand who they report to when they have questions or
concerns. To facilitate effective communication and efficiency, develop communication
protocols.
3. To Be an Effective Role Model
A leader through his own example demonstrates the behaviour desired from the rest of the
team. He builds morale of the workers under him. He creates the confidence in the employees.
Confidence is an important factor which can be achieved through expressing the work efforts
to the subordinates, explaining them clearly their role and giving them guidelines to achieve
the goals effectively. It is also important to hear the employers with regards to their complaints
and problems.
4. To Inspire and Motivate the Team Members
A leader proves to be playing an incentive role in the concern's working. He provides the
employees with economic and non-economic rewards and thereby, gets the work from the
subordinates done. Leaders that inspire and motivate their teams solicit input from employees,
keep team members informed, give timely and specific feedback regarding job performance,
ensure training needs are met and hold employees accountable.
5. To Delegate and Empower the Employees
Good leaders surround themselves with the right people in the right jobs. This facilitates being
able to lead rather than manage. For any business organization, this starts by hiring an effective
manager or administrator. Depending on the size of the enterprise, the level of management
and level of highest manager is decided. The organizations need to begin the process of
effective delegation and empowerment with the top manager.
6. To Provide guidance to the employees
A leader has to not only supervise but also play a guiding role for the subordinates. Guidance
here means instructing the subordinates the way they have to perform their work effectively
and efficiently.
7. Effective Time Management
Part of being an effective leader includes effective time management. If a leader spends most
of time fielding complaints and reacting to problems, this may be a sign that he is not delegating
effectively or empowering team members and has over centralized the power.
QUALITIES AND FUNCTIONS OF A LEADER
QUALITIES OF A LEADER
A leader has got multidimensional traits in him who makes him appealing and effective in
behavior. The following are the requisites to be present in a good leader:
1. Physical appearance- A leader must have a pleasing appearance. Physique and health are
very important for a good leader.
2. Vision and foresight- A leader cannot maintain influence unless he exhibits that he is
forward looking. He has to visualize situations and thereby has to frame logical programmes.
3. Intelligence- A leader should be intelligent enough to examine problems and difficult
situations. He should be analytical who weighs pros and cons and then summarizes the
situation. Therefore, a positive bent of mind and mature outlook is very important.
4. Communicative skills- A leader must be able to communicate the policies and procedures
clearly, precisely and effectively. This can be helpful in persuasion and stimulation.
5. Objective- A leader has to be having a fair outlook which is free from bias and which does
not reflects his willingness towards a particular individual. He should develop his own opinion
and should base his judgment on facts and logic.
6. Knowledge of work- A leader should be very precisely knowing the nature of work of his
subordinates because it is then he can win the trust and confidence of his subordinates.
7. Sense of responsibility- Responsibility and accountability towards an individual's work is
very important to bring a sense of influence. A leader must have a sense of responsibility
towards organizational goals because only then he can get maximum of capabilities exploited
in a real sense. For this, he has to motivate himself and arouse and urge to give best of his
abilities. Only then he can motivate the subordinates to the best.
8. Self-confidence and will-power- Confidence in himself is important to earn the confidence
of the subordinates. He should be trustworthy and should handle the situations with full will
power. (You can read more about Self-Confidence at: Self Confidence-Tips to be Confident
and Eliminate Your Apprehensions).
9. Humanist-This trait to be present in a leader is essential because he deals with human beings
and is in personal contact with them. He has to handle the personal problems of his subordinates
with great care and attention. Therefore, treating the human beings on humanitarian grounds is
essential for building a congenial environment.
10. Empathy-It is an old adage "Stepping into the shoes of others". This is very important
because fair judgment and objectivity comes only then. A leader should understand the
problems and complaints of employees and should also have a complete view of the needs and
aspirations of the employees. This helps in improving human relations and personal contacts
with the employees.
LEADERSHIP FUNCTIONS:
1. Setting Goals:
A leader is expected to perform creative function of laying out goals and policies to persuade
the subordinates to work with zeal and confidence.
2. Organizing:
The second function of a leader is to create and shape the organization on scientific lines by
assigning roles appropriate to individual abilities with the view to make its various components
to operate sensitively towards the achievement of enterprise goals.
3. Initiating Action
The next function of a leader is to take the initiative in all matters of interest to the group He
should not depend upon others for decision and judgment. He should float new ideas and his
decisions should reflect original thinking
4. Co-Ordination:
A leader has to reconcile the interests of the individual members of the group with that of the
organization. He has to ensure voluntary co-operation from the group in realizing the common
objectives
5. Direction and Motivation:
It is the primary function of a leader to guide and direct his group and motivate people to do
their best in the achievement of desired goals, he should build up confidence and zeal in the
work group
6. Link between Management and Workers:
A leader works as a necessary link between the management and the workers. He interprets the
policies and programmes of the management to his subordinates and represents the
subordinates
interests before the management. He can prove effective only when he can act as the true
guardian of the interests of his subordinates.
MANAGER VS LEADER
There is always an excitement when we talk about a leader and the manager. Leadership is a
skill and the person who possess this ability is known as a LEADER. On the other hand,
Management is a discipline, and the practitioner of this discipline is known as the MANAGER.
Leader and Manager have a great role to play in any organization, in the sense that a leader is
the one who inspires, encourages and influence his men, to work willingly, in the attainment
of the organization's objectives. On the other hand, a manager is an important link between the
firm and its stakeholders, i.e. employees, customers, suppliers, shareholders, government,
society, and so forth. He is the one who performs basic managerial functions.
A leader is required at all levels of the organization which acts as a representative of the
organization. He encourages the whole team to work together and supports them in
accomplishing their tasks, as a guide or a philosopher. A manager is a person who manages
the organization such that he is responsible for planning, organization, direction, coordination
and control. They are the ones who get their work done by the employees through several ways
and have the authority to hire or fire the employees. There are various types of managers
present in an organization such as top level managers, functional managers, project manager,
and general manager.

B. DECISION MAKING

DEFINITION:

Decision-making is the process of selecting the best possible alternative from multiple
available options to achieve a desired goal or outcome. It involves identifying a problem,
gathering information, analyzing alternatives, and choosing the most suitable course of action.

DECISION-MAKING PROCESS

The decision-making process consists of several structured steps to ensure a logical and rational
choice. Below are the key steps involved:

1. Identify the Problem

 Recognize and define the issue that requires a decision.

 Understand the scope and impact of the problem.

2. Gather Relevant Information

 Collect necessary data, facts, and insights related to the problem.

 Analyze past experiences and research for better decision-making.

3. Identify Alternatives

 List all possible solutions or courses of action.

 Consider different approaches to solving the problem.

4. Evaluate Alternatives

 Analyze the pros and cons of each alternative.

 Consider factors like feasibility, risk, and potential outcomes.

5. Choose the Best Alternative

 Select the most effective and practical solution.

 Ensure the decision aligns with goals and available resources.

6. Implement the Decision

  Take necessary actions to execute the chosen alternative.
 Allocate resources and assign responsibilities.

7. Review and Monitor the Decision

 Assess the results of the decision over time.

 Make adjustments if needed to improve effectiveness.

C. COMMUNICATION

DEFINITIONS

Communication is the sum of all things one person does when he wants to create understanding
in the mind of another. It involves systematic and continuous process of telling, listening and
understanding. - Louis Allen

Communication is transfer of information from the sender to the receiver with the information
being understood by the receiver. - Harold Koontz and Heniz Weihrich

Communication is a process by which people create and share information with one another in
order to reach common understanding. - Rogers

The word communication has been derived from the Latin word ‘communis’ which means
‘common’ which consequently implies common understanding. Communication is defined in
different ways. Generally, it is understood as a process of exchange of ideas, views, facts,
feelings, etc., between or among people to create common understanding.
IMPORTANCE OF COMMUNICATION
(i) Acts as basis of coordination: Communication acts as basis of coordination. It
provides coordination among departments, activities and persons in the organisation. Such
coordination is provided by explaining about organisational goals, the mode of their
achievement and inter relationships between different individuals, etc.
(ii) Helps in smooth working of an enterprise: Communication makes possible for the
smooth and unrestricted working of the enterprise. All organisational interactions depend on
communications. The job of a manager is to coordinate the human and physical elements of an
organisation into an efficient and active working unit that achieves common objectives. It is
only communication which makes smooth working of an enterprise possible.
(iii) Acts as basis of decision making: Communication provides needed information for
decision making. In its absence, it may not be possible for the managers to take any meaningful
decision. Only on the basis of communication of relevant information one can take right
decision.
(iv) Increases managerial efficiency: Communication is essential for quick and effective
performance of managerial functions. The management conveys the goals and targets, issues
instructions, allocates jobs and responsibilities and looks after the performance of subordinates.
Communication is involved in all these aspects. Thus, communication lubricates the entire
organisation and keeps the organisation at work with efficiency.
(v) Promotes cooperation and industrial peace: Efficient operation is the aim of all
prudent management. It may be possible only when there is industrial peace in the factory and
mutual cooperation between management and workers. The two way communication promotes
cooperation and mutual understanding between the management and workers.
(vi) Establishes effective leadership: Communication is the basis of leadership. Effective
communication helps to influence subordinates. While influencing people, leader should
possess good communication skills.
(vii) Boosts morale and provides motivation: An efficient system of communication
enables management to motivate, influence and satisfy the subordinates. Good communication
assists the workers in their adjustment with the physical and social aspect of work. It improves
good human relations in industry.
TYPES OF COMMUNICATION
1. Formal Communication - Formal communication flows through official channels
designed in the organisation chart. This communication may take place between a superior and
subordinate, a subordinate and superior or among same cadre employees or managers. The
communications may be oral or written but generally recorded and filed in the office.
Formal communication may be further classified as –
a. Vertical communication flows vertically, i.e., upwards or downwards through formal
channels. Upward communications refer to flow of communication from subordinate to
superior whereas downward communication indicates communication from a superior to
subordinate. The examples of upward communication are – application for grant of leave,
submission of progress report, request for grants, etc. Similarly, the examples of downward
communication include – sending notice to employees to attend a meeting, ordering
subordinates to complete an assigned work, passing on guidelines framed by top management
to the subordinates, etc.
b. Horizontal or lateral communication takes place between one division and another.
For example, a production manager may contact marketing manager to discuss about schedule
of product delivery, product design, quality, etc. The pattern through which communication
flows within the organisation is generally indicated through communication network.
Different types of communication networks may operate in formal organisation. Some of the
popular communication networks are presented and discussed in given figure.

(i) Single chain: This network exists between a supervisor and his subordinates. Since
many levels exist in an organisation structure, communication flows from every superior to his
subordinate through single chain.
(ii) Wheel: In wheel network, all subordinates under one superior communicate through
him only as he acts as a hub of the wheel. The subordinates are not allowed to talk among
themselves.
(iii) Circular: In circular network, the communication moves in a circle. Each person can
communicate with his adjoining two persons. In this network, communication flow is slow.
(iv) Free flow: In this network, each person can communicate with others freely. The flow
of communication is fast in this network.
(v) Inverted V: In this network, a subordinate is allowed to communicate with his
immediate superior as well as his superiors superior. However, in later case, only prescribed
communication takes place
2. Informal Communication - Communication that takes place without following the
formal lines of communication is said to be informal communication. Informal system of
communication is generally referred to as the ‘grapevine’ because it spreads throughout the
organisation with its branches going out in all directions in utter disregard to the levels of
authority. The informal communication arises out of needs of employees to exchange their
views, which cannot be done through formal channels. Workers chit-chating in a canteen about
the behaviour of the superior, discussing about rumours that some employees are likely to be
transferred are some examples of informal communications.
The grapevine/ informal communication spreads rapidly and sometimes gets distorted. It is
very difficult to detect the source of such communication. It also leads to generate rumours
which are not authentic. People’s behaviour is affected by rumours and informal discussions
and sometimes may hamper work environment. Sometimes, grapevine channels may be helpful
as they carry information rapidly and, therefore, may be useful to the manager at times.
Informal channels are used by the managers to transmit information so as to know the reactions
of his/her subordinates. An intelligent manager should make use of positive aspects of informal
channels and minimise negative aspects of this channel of communication.

Grapevine Network Grapevine communication may follow different types of network.

i. In single strand network, each person communicates to the
other in sequence.
ii. In gossip network, each person communicates with all on non-
selective basis.
iii. In probability network, the individual communicates randomly
with other individual.
iv. In cluster, the individual communicates with only those people
whom he trusts. Of these four types of networks, cluster is the
most popular in organisations