Republic of the Philippines

NUEVA VIZCAYA STATE UNIVERSITY

Bayombong, Nueva Vizcaya
INSTRUCTIONAL MODULE
IM No.:PC-CEM 3 – 2S -2021-2022

COLLEGE OF ENGINEERING
Bayombong Campus

DEGREE PROGRAM BSCE COURSE NO. PC-CEM 3

SPECIALIZATION CONSTRUCTION COURSE TITLE PROJECT CONSTRUCTION &
ENGINEERING MANAGEMENT
MANAGEMENT
YEAR LEVEL 4 TIME FRAME 6HRS WK NO. 7 IM NO. 6

I. UNIT TITLE/CHAPTER TITLE

A. Leading and Influencing; Motivating and Communicating; Controlling

II. LESSON TITLE

A. Leading and Influencing
B. Motivating and Communicating
C. Controlling

III. LESSON OVERVIEW

In this chapter we discuss about the Leadership and influencing others, Motivation and
communication, the characteristics of communication, process of communication, channels of
communication, types of motivation, importance of managerial leadership and others part of engineering
management.

IV. DESIRED LEARNING OUTCOMES

1. Demonstrate a critical understanding of the key debates and thinking about the role of leadership.
2. Discuss how to exercise effective leadership while working across institutions and in global
contexts.
3. Discuss and identify motivating, communicating and controlling in management.

V. LESSON CONTENT

INFLUENCING

• What does “Managing by Influence truly mean?”

• Tips to being an effective influencer
• 5 Influencing Styles
• 5 Steps to increasing your influence
• Exercise
• Leadership: Influencing & Engagement

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 Republic of the Philippines
NUEVA VIZCAYA STATE UNIVERSITY
Bayombong, Nueva Vizcaya
INSTRUCTIONAL MODULE
IM No.:PC-CEM 3 – 2S -2021-2022
Managing by Influence

What does it mean to “Manage by Influence”?

Work influence is your ability to make a positive impact on others (actions, decisions, or points of
view). Peers, employees, and leaders respect and seek out influential professionals. The receiver
determines your level of influence. Real influence comes from impact, not status.

Tips to being an effective “Influencer

5 Influencing styles

5 Styles:

1. Asserting – you insist that your ideas are heard and you challenge the ideas of others

2. Convincing – you put forward your ideas and offer logical, rational reasons to convince others of your
point of view

3. Negotiating – you look for compromises and make concessions to reach outcomes that satisfy your
greater interest

4. Bridging – you build relationships and connect with others through listening understanding and building
coalitions

5. Inspiring – you advocate your position and encourage others with a sense of shared purpose and
exciting possibilities

What style is most effective and Why?

5 Steps to increasing your influence

1. Understand your influencing style:

• What’s your dominant style?
• Do you apply the same style to every situation or individual?
• If you don’t know – take “The Influencer Style Assessment” by VitalSmarts

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NUEVA VIZCAYA STATE UNIVERSITY
Bayombong, Nueva Vizcaya
INSTRUCTIONAL MODULE
IM No.:PC-CEM 3 – 2S -2021-2022
2. Take stock of your situation:
• Who are your critical stakeholders you need to “win over”
• Understand the style that may work best with your audience, i.e., if it is a CFO, use data/logic and
expertise or a peer, bridging or negotiating may be best
• Utilize the MIR model (Managing Interpersonal Relationships)

3) Identify your gaps:

• Figure out where you are on solid ground – where are the common “wins”
• What are the benefits – sell them
• Understand where you need to shift gears and use a different approach

4) Develop:
• After you have identified the “gaps”, find a way to develop your influencing style
• Could be an internal mentor (someone you have seen exhibit those skills) or workshop
• Role play your “pitch”
• As you build your capability and confidence, move on to higher-stakes scenarios

5) Practice:
• Start out with “low stakes” situations where you can test out your styles
• Target a person or situation where you’d like to achieve a certain outcome, think through the
influencing style that will work best in that situation, and give it a try.

Influencing without authority

Personal influence is an essential leadership skill

3 types of influencing tactics:

1) Logical appeal – taps into people’s reason and intellect. You present an argument for the best
choice of action based on the organizational benefits, personal benefits or both. (objective,
logical, factual and detailed evidence)

2) Emotional appeal – connects your message, goal or project to individuals goals and / or values.
Link your request to a clear and appealing vision the other person can fully support

3) Cooperative appeal – builds a connection between you, the person you want to influence and
others, to get support for your proposal. Working together to accomplish a mutually important
goal

Leadership: Influencing & Engagement

As a leader, can you be both lovable and strong?

• Projecting warmth is the key to having influence Leaders who rate low in “likability” have about a
one in 2,000 chance of being regarded as effective
• Leaders who try to immediately project strength run the risk of instilling a counterproductive fear
in the very people they want to inspire
• Without a foundation of trust, a company’s employees may comply outwardly with the leader’s
wishes, but they are much less likely to comply privately – to adopt the values, culture, and
mission of the organization in a sincere lasting way (which causes disengagement)
• What matters most, isn’t where someone ranks within the company, but how well that person
understands and mobilizes the informal networks needed to effect change

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 Republic of the Philippines
NUEVA VIZCAYA STATE UNIVERSITY
Bayombong, Nueva Vizcaya
INSTRUCTIONAL MODULE
IM No.:PC-CEM 3 – 2S -2021-2022
Leaders vs. Managers
Leader’s characteristics to influencing

COMMUNICATION AND COORDINATION

Communication is as important aspect of the directing function of management as supervision,

motivation and leadership.

NATURE AND CHARACTERISTICS OF COMMUNICATION

Simply stated, communication means transmission of messages or exchange of ideas, facts, opinion or
feelings between two or more persons. It is the act of making one’s ideas and opinions known to others.
It may also be regarded as the process of meaningfully transferring information from one person to
another. In an organizational set up, communication is the means by which people are linked together
for a common purpose, to establish a common interest or mutual understanding. Thus, communication
does not simply involve sending of a message by one person. It also involves the receiver listening to it,
interpreting it, and responding to it or acting according to it. Communication is essentially a two-way
process. It is not complete unless the receiver of the message has understood the message and his
reaction or response is known to the sender of the message. The basic purpose of communication is to
create mutual understanding and unity of commonness of purpose. It may involve exchange of facts by
way of information, thought, or ideas, opinion or points of view, feelings or emotions. Communication is
a continuous process in management. No manager can avoid communicating with his superior and
subordinates in the course of his activities. Inadequate or ineffective communication is often responsible
for making managerial performance unsatisfactory. Managers at all levels and in all departments must
communicate to keep the wheels of operations running smoothly. Thus communication pervades the
entire organization.

The characteristics of communication in a business enterprise may be outlined as follows:

1) It is a cooperative process involving two parties, one who transmits and one who receives the
message.

2) The respective parties to a communication must have the ability to convey and listen to what his
counterpart has to communicate.

3) Communication includes sending the message as well as receiving the reaction or response to the
message and therefore is a two-way traffic.

4) The response to a communication is as essential as the initial communication because the response
indicates the impact of the communication.

5) The message to be communicated may be conveyed verbally, in writing, by means of signs, gestures
or symbols. More than one means may be adopted to make the communication effective.
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NUEVA VIZCAYA STATE UNIVERSITY
Bayombong, Nueva Vizcaya
INSTRUCTIONAL MODULE
IM No.:PC-CEM 3 – 2S -2021-2022
6) The purpose of communication is that of passing information and understanding, to bring about
commonness of purpose, interest and efforts.

7) Communication is a continuous process for effectiveness and efficiency of on-going operations,

planning and policy making.

8) Communication may flow vertically upward or downward between superiors and subordinates,
horizontally between persons occupying similar ranks in different departments, as well as diagonally
between persons at different levels in different parts of the organisation. Hence, communication flows
pervade the entire organisation.

PROCESS OF COMMUNICATION

The process of communication implies the existence of a sender, a receiver, a message and a motivating
climate for it. The process includes the following steps :

1) Clear perception of the idea or problem : No message can be transmitted properly unless the idea
or problem is formulated with clarity of thought and perception on the part of the communicator. It is only
on the basis of clear thinking that the communicator can decide on the means to be adopted to convey
the message.

2) Participation of others involved : The next step is to secure the participation of other persons in the
decision to communicate a message. This may be helpful in clarifying the ideas through interaction with
others, gathering new ideas and suggestions, and in creating a motivating climate for securing positive
response to the message.

3) Transmission of the message : What to communicate, to whom, when and how are expected to be
decided before actual transmission of the message. Actual transmission involves preparing the matter
and the form of communication (known as ‘encoding’ the message) and selecting the medium or means
of communication (oral or written) keeping in view the nature of person or group to be addressed.

4) Motivating the receiver of the message : The communicator cannot depend on the message alone
to get an appropriate response from the receiver. He must ensure that the receiver of the message is not
only able to interpret the message correctly but is also prepared to act according to it. Thus, apart from
the clarity of the message, it must inspire the receiver to do or behave as desired by the sender of the
message.

5) Evaluation of the effectiveness of communication : After the message has been transmitted and
accepted by the receiver, it remains for the communicator to ascertain and evaluate the nature of impact
of the communication. This determines whether and to what extent the receiver has positively responded
to the message

Elements in the Communication Process

1) Communicator : The communicator plays an important role in the process of communication as the
message originates from him. Communicators may include: managers, subordinates, clients, customers,
as well as outside parties.

2) Encoding : Encoding the matter to be communicated is the second element. It refers to preparing the
subject of communication (idea, fact, information, etc.) in a suitable language.

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NUEVA VIZCAYA STATE UNIVERSITY
Bayombong, Nueva Vizcaya
INSTRUCTIONAL MODULE
IM No.:PC-CEM 3 – 2S -2021-2022
3) Message : The encoded message needs to be transmitted by appropriate means. It may be in verbal
or written form depending on the purpose in view.

4) Medium : The medium of communication carries the message from the communicator to the receiver.
Face-to-face verbal communication, use of telephone, intercom facilities, issue of memorandum, notice,
circulars, statements, telegraph, telex, etc. are the various means available as media of communication.
Besides, non-verbal media like signals, gestures, etc. may also be used. The choice of medium is an
important aspect of communication, since proper medium also determines its effectiveness.

5) Decoding : Decoding refers to the conversion of the message by the receiver into meaningful terms
so as to make it understandable. This is another important element of communication for the receiver’s
response and depends upon his understanding of the content and purpose of the message.

6) Receiver : The receiver of the message has an equally vital role to play as the communicator. Indeed,
communication to be effective must be receiver oriented. The ability of the receiver for decoding and
understanding the message contribute to a positive response from the receiver.

7) Feedback: The actual response of the receiver to the message communicated to him is known as
‘feedback’. This is an important element of the communication process. It reduces the possibility of a
difference between the intention of the communicator and the interpretation of the message by the
receiver. Two-way communication requires feedback to the initial message sent and enables the sender
to check whether the message received has been properly understood by the receiver.

CHANNELS OF COMMUNICATION

The direction or path through which the flow of communication takes place is known as the channel of
communication. The channels of communication can be divided on the basis of (1) the relationships (2)
the direction of the flow and (3) the method used.

Based on Relationships

The direction of the flow is basically governed by the relationships between the parties involved. Thus,
communication may be of two broad types: (1) formal (2) informal

1) Formal communication: The formal channels of communication are based on organisational

relationships established formally by the management of the organization. Orders, instructions and
information which flow through these channels are official communication. In other words, the formal
channels of communication are used for the transmission of official messages within or outside the
organization. In every organization, the lines of communication correspond to the chain of command, that
is the superior subordinate relations in the hierarchy. A superior gives orders to the subordinates directly
under his authority but cannot do so to anyone who is more than one level below him in the hierarchy.
Similarly, a subordinate cannot report on his performance or seek information from anyone except his
immediate superior. He cannot directly communicate with anyone who is more than one level higher in
the hierarchy. He can do so only through his immediate superior. Formal channels of communications
help management in maintaining order and add to the seriousness of purpose of the message
transmitted. But, formal communication which is intended to flow through more than one level suffers
from delay and chances of distortion.

2) Informal communication : Communication which takes place on the basis of informal or social
relations among people in an organization is known as informal communication. Such communication
does not generally follow the official, formal channels. This type of communication occurs due to the
natural desire of human beings to communicate with each other and is the result of social interaction
among people. It may take place between persons cutting across the organizational positions occupied
by them and among people working in different work units. The origin and flow of informal communication
are difficult to trace. Hence, it is also known as ‘grapevine’. The messages which flow through informal
channels are of varied nature. It may be purely personal or related with organizational matters. The
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 Republic of the Philippines
NUEVA VIZCAYA STATE UNIVERSITY
Bayombong, Nueva Vizcaya
INSTRUCTIONAL MODULE
IM No.:PC-CEM 3 – 2S -2021-2022
characteristic feature of informal communication is that it spreads very rapidly among people. But at the
same time, it may consist of half-truths and rumors passing between members of the organisation. No
one can be made responsible for it, nor is it taken seriously. Moreover, it may lead to leakage of
confidential information. Sometimes it causes tension. It is also liable to a great deal of distortion as it
passes from one person to another. However, management can take advantage of it by maintaining
friendly and cooperative relations with others.

Based on Direction of Flow

Whether the communication is formal or informal in nature, channels of communication may be divided
according to the direction of the flow. These are: (1) vertical (2) horizontal (or lateral) and (3) diagonal
communication. Let us examine the implication of these types.

1) Vertical Communication: This type refers to communication that takes place between persons
occupying superior and subordinates positions in the organizational hierarchy. Orders and instructions
issued by managers to subordinates, and performance reports sent by subordinates to the managers are
typical examples of vertical communication. It may be sub-divided into: (a) downward communication
and (b) upward communication.

a) Downward Communication: Communication which flows from higher-level managers to others in

lower-level positions is generally known as downward communication. Thus, messages transmitted from
the superior to his subordinates, or from a manager to the assistant manager are downward
communication. It also includes directives and messages which are issued by top management and are
transmitted down the hierarchy through intermediate levels of management to employees at the lower
levels. Such communications may consist of verbal messages conveying orders, policies, procedures, or
written matter conveyed through notices, circulars, memorandum, bulletins, handbooks etc.

b) Upward Communication: This type of communication flows from lower level managers and
employees to those in higher level positions. Information and reports communicated by subordinate
workers to the foreman, by the manager to the general manager, or by the chief executive to the Board
of Directors, are examples of upward communication. The upward channels of communication not only
enable higher level managers to get valuable information but also opinions and suggestions from lower
levels at the time of making decisions on plans and policies. The opportunity of upward communication
encourages people to transmit their complaints and grievances to superiors, draw the attention of
managers to problems and make proposals for improving the efficiency of work performance in the
organization.

2) Horizontal Communication: Communication that takes place directly between two persons having
equal ranks in the managerial hierarchy or between two subordinates under the same manager is called
horizontal communication or lateral communication. Thus, horizontal communication consists of
interaction between people in the same or different departments. This facilitates coordination of activities
which are interdependent. For example, coordination of production and sales activities requires
continuous exchange of information between the respective managers of the two departments. The same
is true of factory manager and repairs and maintenance manager.

3) Diagonal Communication: This type of communication implies exchange of information between

persons who are in positions at different levels of the hierarchy and also in different departments. This
type of communication does not take place except under special circumstances. For example, the Cost
Accountant placed in the Accounts Department may want reports from the sales representatives for the
purpose of distribution cost analysis. These reports may be sent directly to the Cost Accountant instead
of being sent to the sales manager. This is an example. However, formal communications are normally
expected to be routed through the manager who is in charge of the department from which the
communication is made.
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NUEVA VIZCAYA STATE UNIVERSITY
Bayombong, Nueva Vizcaya
INSTRUCTIONAL MODULE
IM No.:PC-CEM 3 – 2S -2021-2022
Based on Method Used

On the basis of the methods used for the purpose, communication may be : (i) verbal (ii) written (iii)
gesture

1) Verbal Communication: When the messages are transmitted orally it is called verbal communication.
It is more effective method of conveying ideas, feelings, suggestions, information etc. It gives
communication a personal touch. It is especially useful when the manager wants to know the reaction of
the other person quickly. It is economical both in terms of time and money. There can be nothing better
and more economical than passing a verbal order. Verbal communication includes: face-to-face contact,
interviews, joint consultation. However, verbal communication has its drawbacks. It is not useful when
the number of persons to be communicated is more and if the communicator and receiver are at places
far away from one another. Moreover, when the subject matter of communication has to be kept as a
record, verbal communication will not serve the purpose.

2) Written Communication: In a formal organization, written communication is the most important media
for conveying ideas, information etc. In every such organization one comes across a variety of orders,
instructions, reports and bulletins, serving as the basis of communication. Written communication is
permanent, tangible and verifiable. The record is maintained and both the sender and the receiver have
access to the records for further clarification. Written communication is advantageous where the subject
matter to be conveyed is lengthy or where it is intended to be conveyed to a large number of persons.
One fundamental limitation of written communication is that it is usually time- consuming. Written
communications tend to be very formal and lack personal touch. It is difficult to maintain complete secrecy
about a written communication. Some day or other it is bound to reach those whom it was intended to be
kept as a secret.

3) Gestural Communication: Communication through gestures is often used as a means to make verbal
or written communication more effective. One has only to attend meeting addressed by a trade union
leader to see how he uses different gestures by hands, movement of eyes to make his point. If sometimes
the superior pats his subordinate on his back, it will be considered as appreciation for his work. This will
in turn increase the efficiency of the subordinate.

Types of Channels of Communication

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 Republic of the Philippines
NUEVA VIZCAYA STATE UNIVERSITY
Bayombong, Nueva Vizcaya
INSTRUCTIONAL MODULE
IM No.:PC-CEM 3 – 2S -2021-2022
IMPORTANCE OF COMMUNICATION

The significance of effective communication in a modern organization is recognized all over the world. It
is of vital importance for efficient and smooth functioning of an enterprise. The importance is evidenced
by the fact that every manager on an average spends 80-90 percent of his time in the communication
process.

Let us analyses the basis of its importance.

1) Adequate and timely communication is necessary for the managerial functions of planning, organising,
directing and controlling to be carried out successfully. It is on the basis of information communicated to
them that plans can be developed by top management. On the other hand, plans, policies and procedures
must be communicated to operating managers and employees without which implementation of plans
can hardly be possible. Similarly to establish organizational relations, people must be informed about
their position, tasks, and authority in the organization. The directing function also requires proper
communication between managers and their subordinates and between members of work-groups. Only
then it is possible to achieve group goals as well as organization goals. Again, timely feedback of actual
performance against planned targets forms the basis of the control function of management.

2) Effective communication contributes a great deal to higher efficiency in job performance. It ensures
willing cooperation of others due to the close understanding of ideas and instructions established through
communication. Indeed a direct relationship exists between the effectiveness of communication and
efficiency in an organization.

3) The quality of decisions made in an organization depends largely on the amount and quality of
information available to the decision maker. However, the quality of information depends on the
effectiveness of the communication system. Thus, a good communication system contributes positively
to the quality of decisions.

4) Communication is the means by which delegation and decentralization of authority is accomplished in

an organization. Operating managers must have a clear understanding of their respective limits of
authority and accountability and the jobs assigned to them. This is possible only through the existence
and use of communication channels.

5) Coordination of interdependent activities requires communication to flow horizontally as well as

through all levels of authority.

6) The effectiveness of communication also helps in molding attitudes and building up employee morale.
It plays an important role in removing misunderstanding and developing harmonious labour-management
relations.

BARRIERS TO EFFECTIVE COMMUNICATION

Effective communication implies that the message transmitted by the sender is understood, accepted
and acted upon by the receiver for the intended purpose. In actual practice, one or more factors often
stand in the way of effective communication. These are obstacles or barriers, which create confusion,
misunderstanding and May even lead to breakdown of the communication process. The following types
of barriers are commonly found to create problems in organizations.

1) Multiplicity of Organizational Layers: The structure of organization often causes messages to be

distorted, stopped or absorbed particularly when there are many layers or levels in the hierarchy. In
upward communication, the message tends to be distorted as it passes through intermediate levels.
Information may be withheld at a particular level or passed on with changes. This is done if it is likely to
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have the effect of carrying an unfavorable impression to higher levels about the performance of the
manager at that level. Downward flow of communication may also be distorted at intermediate levels to
suit the convenience or serve the interest of managers concerned. This is known as ‘filtering’ of the
message.

2) Language Barrier: The language used for communicating a message may create problems due to
the difficulty of interpreting words or due to lack of clarity of expression. People with different educational
and cultural background and intellectual ability may find it hard to understand the message due to jargon
used by the sender. In such cases, the same word may be attributed different meanings by the sender
and receiver of the message. This is known as the problem of semantics.

3) Status Barrier: Status relationships in an organization may also be a serious obstacle to effective
communication. People placed in superior and subordinate positions have difference in status on account
of their respective ranks in the hierarchy. It is due to the status difference that subordinates often suppress
or withhold information which may not be liked by their superiors, or pass on distorted information to
please their superiors. No subordinate likes to reveal his mistakes to his superior. Similarly, the status
consciousness of the Superior prevents him from fully communicating information which may adversely
reflect of his ability or judgment.

4) Physical Distance as a Barrier: In large organizations, the physical distance between the sender and
the receiver of any message may become an obstacle to effective communication. This is because it is
difficult to evaluate whether the receiver has understood, accepted and acted on the message sent to
him if his workplace is far away from that of the sender.

5) Emotional and Psychological Barriers: When people have strong attitudes and feelings, they are
emotionally affected by messages received which do not conform to their attitudes. Hence, they tend to
either reject or refuse to accept such messages. The sender may also distort a message if he feels
strongly about it or is under emotional stress at the time. Psychological barriers often arise due to lack of
mutual trust and confidence. Similarly when subordinates have a favorable image of the superior they
are psychologically more inclined to accept and respond positively to his messages. It does not happen
if they have an unfavorable image. The image is built on the basis of experience and interaction between
the superior and the subordinate. Any communication which purports to bring about a change in the
existing state of affairs also creates psychological barriers since people generally do not like a change
particularly when its effects are uncertain.

PRINCIPLES OF COMMUNICATION

There are no fixed principles for the guidance of communication by the managers of an organisation. The
guidelines which are useful for making communications effective may be regarded as principles of
communication. These are listed below:

1) The problem or idea to be communicated needs to be analyzed systematically so as to be clear about

it.

2) The purpose of each communication, that is, what is really to be accomplished through the
communication should determine the language, means and media of communication.

3) The meaning and intention of communication is conveyed not by words alone. The timing, physical
setting, and the organizational climate are important determinants of the success of communication.

4) Consultation with others may be appropriately made in planning communication so as to gain additional
insight and objectivity to the message.

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INSTRUCTIONAL MODULE
IM No.:PC-CEM 3 – 2S -2021-2022
5) The basic content and overtones of the message as well as receptiveness to the viewpoint of the
receiver have considerable impact on the effectiveness of communication.

6) Whenever possible, messages should convey something of value to the receiver in the light of his
interest and needs.

7) Communications have greater chances of being effective when followed up by encouraging the
receiver to express his reactions, or by review of performance and ensuring a feedback.

8) Although communications are primarily necessary to meet immediate situations, they must also be
consistent with long-term interest and goals.

9) The most persuasive communication is not what is conveyed through words but the action of the
communicator following the communication.

10) The sender of a message should ensure that the message is understood. But he must try to
understand the reaction and attitude of the receiver by listening to his viewpoint.

HOW TO MAKE COMMUNICATION EFFECTIVE?

The principles or guidelines to making communications effective are of a general nature, operationally
speaking, a number of more specific suggestions can be made to ensure the effectiveness of
communications.

1) Regulating the flow of communications: Planning communication should involve determining the
priority of messages to be communicated so that managers may concentrate on more important
messages of high priority. Otherwise, there is a possibility of managers being overloaded with the task of
communication. Similarly, incoming communication should be edited and condensed, if possible, to
reduce the chances of overlooking or ignoring important messages received.

2) Feedback: Along with each communication there is need for feedback, that is, communication of the
response or reaction to the initial message. Feedback may include the receiver’s acceptance and
understanding of the message, his action or behavioural response, and the result achieved. Twoway
communication is thus considered to be more helpful in establishing mutual understanding than one-way
communication.

3) Language of the message : Use of appropriate language is essential for effective communication.
While preparing the message, its sender must keep in view the climate, as well as the ability of receiver
to interpret the message accurately. Abstract ideas should be explained and vague expressions avoided.
He must keep in view tire semantic problem, that is, the possibility of particular words having more than
one meanings. Experimental studies have shown that oral communication accompanied by its written
version is more effective in bringing about the desired response.

4) Importance of listening carefully : Listening to verbal messages carefully implies an active process.
Half-hearted attention to the communication is often the cause of misunderstanding and confusion. A
listener has to be patient, mentally composed, and avoid distractions while receiving the message. He
should be in a position to concentrate on the message and seek clarification, if necessary. On the other
hand, the sender of the message must also be prepared to listen to what the receiver has to say, and
respond to his questions, if any.

5) Restraint over emotion : Strong feelings and emotional stress on the part of either the sender or
receiver of messages are serious handicaps in the communication process. To avoid any negative impact
of emotion on the content of the message, the sender may defer the communication for sometime or

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consult to exercise restraint over his psychological feelings to avoid misinterpreting the message and to
be able to respond to it with a composed mind.

6) Non-verbal signals of compliance: Verbal messages are generally accepted orally by the receiver.
But whether action will follow the acceptance of the message is not certain. It is, therefore, suggested
that in the case of verbal communication the sender should observe the action of the receiver to ascertain
whether the actions are in conformity with the intent and understanding of the message.

7) Mutual trust and faith: No amount of seriousness of the parties involved can make the process of
communication effective unless there is mutual trust and faith between them. The best means of
developing these among people in an organisation are honesty of purpose and openness of the
managers. However, it takes time to build such a climate. Both managers and subordinates have to
cooperate for the purpose so that individuals feel free to make suggestions and correct each other’s
views without misunderstanding.

MOTIVATION

CONCEPT OF MOTIVATION

Motivation may be defined as the complex of forces inspiring a person at work to intensify his willingness
to use his maximum capabilities for the achievement of certain objectives. Motivation is something that
motivates a person into action and induces him to continue in the course of action enthusiastically. It
determines the behaviour of a person at work. According to Dalton E. McFarland

“Motivation refers to the way in which urges, drives, desires, aspirations, striving, or needs,
direct control or explain the behaviour of human being.”

The term ‘motivation’ is derived from the word ‘motive’. Motive may be defined as needs, wants, drives
or impulses within the individual. Motives are expressions of a person’s needs and hence they are
personal and internal. In this context, the term ‘need’ should not be associated with urgency or any
pressing desire for something. It simply means something within an individual that prompts him to action.
Motives or needs are ‘why aspects’ of behaviour. They start and maintain activity and determine the
general direction of the person. Motives give direction to human behaviour because they are directed
towards certain ‘goals’ which may be conscious or sub-conscious.

Motives or needs of a person are the starting point in the motivation process. Motives are directed towards
the achievement of certain goals which in turn determine the behaviour of individuals. This behaviour
ultimately leads to goal directed activities such as preparing food and a goal activity such as eating food.
In other words, unsatisfied needs result in tension within an individual and engage him in search for the
way to relieve this tension. He will develop certain goals for himself and try to achieve them. If he is
successful in his attempt, certain other needs will emerge which will lead to setting a new goal. But if he
is unsuccessful he will engage himself in either constructive or defensive behaviour. This process keeps
on working within an individual.

NATURE OF MOTIVATION

Motivation helps in inspiring and encouraging the people to work willingly.

1) Motives are the energising forces within us : These forces are invisible and it is very difficult to
measure them, because all of us are different and the motives energising us at a point differ from time to
time. All that is possible is to observe and measure the behaviour we choose and from this behaviour
make a kind of backward causation statement to the possible motive. Observing someone’s behaviour
may indicate that a certain need is present in this person, motivating him onward.

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2) One motive may result in many different behaviours : The desire for prestige may lead a person
to run for political office, give money away, get additional educational training, steal, join, groups or may
change his outward appearance. A person wanting acceptance will behave differently in a car pool, office
secretarial pool, or swimming pool.

3) The same behaviour may result from many different motives : Behaviour may be caused by a
number of different motives. For instance the motives underlying purchase of a car may be: to appear
younger and attractive; to appear respectable; to gain acceptance from others; to maintain the
acceptance already gained through a similar income level; to satisfy economic values and to reinforce
company created status differentials. Thus it would be wrong for the manager of an organisation to lump
all behaviour as coming from the same motive people join unions, get married, attend class, laugh at
professor’s jokes for many different reasons (motives). Thus a motive cannot be identified from any
specific behaviour.

4) Behaviour can be used as an estimate of an individual’s motives : It is possible to get repeated

observations of one individual’s behaviour and then make an estimate of the cause of that behaviour. For
example, there is truth in the statement that some people always seem to feel insecure and thus behave
continuously in a manner reflecting the insecurity of feeling. There are also people who behave in away
that radiates confidence. They are confident in many different social settings so that one finds a constant
and repeated behaviour from which people probably estimate the motive of the person. Obviously, if a
person is at a state of near starvation, most of his behaviour will be related to the need for food. Although
it is dangerous to categorise people, it is also wrong to believe that individual behaviour, when looked at
in a time perspective, cannot be used as an estimate for motivation.

5) Motives may operate in harmony or in conflict : Behaviour is frequently the result of the interplay
of several motives. These motives may push a person in one direction or in a number of directions. For
example, a girl may want to get high grades in school while also wanting to help her mother in the kitchen.
An athlete may desire an outstanding performance and may also be sensitive to being shunned by his
fellow team-mates if he performs too well and receives too much of credit. Behaviour, therefore, is the
result of many forces differing in direction and intent.

6) Motives come and go : It is very rare that a motive has the same energy potential over a long period
of time. A young man who prefers to travel during vacation may give up the idea during the football
season because the joy of travelling takes second place to the need to play football. The girl who is overly
concerned about her hair and clothes during adolescence may turn her attention to other things once she
grows up. Because humans are constantly growing, the motive at one point in time will not be as intense
as the motive at another point in time.

7) Motives interact with the environment : The situation at a particular point in time may trigger or
suppress the action of a motive. You probably have experienced situations where you did not realize the
intensity of your hunger needs until your smelling senses picked up the odour of palatable food. Similarly,
many of these sociological needs become stimulated when you are in a situation filled with the
sociological factors. Thus needs that may be latent can be quickly stimulated by the environmental
situation. We have now identified a number of generalisations that could be useful in understanding the
concept of motivation. The topic of human motivation is very complex and is related to other fundamental
ideas such as drives and needs so that it is difficult to put our thinking into a clear system of relationships.

PROCESS OF MOTIVATION

The basic elements of the process of motivation are (i) behaviour (ii) motives (iii) goals and (iv) some
form of feedback.

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Behaviour : All behaviour is a series of activities. Behaviour is generally motivated by a desire to

achieve a goal. At any moment individuals may indulge in multifarious activities like walking,
talking, eating, and so on. They switch over from one activity to another activity swiftly. In order
to predict and control behaviour, managers must understand the motives of people.

Motives (Needs/drives/wants) : Motives prompt people to action. They are the primary
energisers of behaviour. They are the ‘ways’ of behaviour and mainsprings of action. They are
largely subjective and represent the mental feelings of human beings. They are cognitive
variables. They cause behaviour in many ways. They arise continuously and determine the
general direction of an individual’s behaviour.

Goals : Motives are directed toward goals. Motives generally create a state of disequilibrium,
physiological or psychological imbalance, within the individuals. Attaining a goal will tend to
restore physiological or psychological balance. Goals are the ends which provide satisfaction of
human wants. They are outside an individual; they are hoped for incentives toward which needs
are directed. One person may satisfy his need for power by kicking subordinates and another by
becoming the president of a company. Thus, a need can be satisfied by several alternate goals.
The particular goals chosen by an individual depends on four factors; (i) the cultural norms and
values that are instilled as one matures, (ii) one’s inherited and biological capabilities, (iii)
personal experience and learning influences and (iv) mobility in the physical and social
environment. The dilemma posed by a large number of needs can often be resolved by
integrating wants where one activity may satisfy several needs. Researchers have found that
many overweight people continue to eat excessively because they have fused the satisfaction of
a number wants (Love, Security, Comfort) into the act of eating. Eating, in a way, releases the
tension built by the numerous unsatisfied needs. The process of motivation discussed above
implies that individuals possess a host of needs, desires and expectations. All of these needs
compete for their behaviour and ultimately the need with the maximum strength at a particular
moment leads to activity. When a need is satisfied, it is no longer a motivator of behaviour.

ROLE OF MOTIVATION

The following factors contribute to the significance of the role of motivation :

1) Managers and organisational researchers cannot avoid a concern with the behaviour requirements of
an organisation. Every organisation needs people (in addition to physical and financial resources) in order
to function.

2) Motivation as a concept is pervasive and a highly complex activity that affects and is affected by a host
of factors in the organisational milieu.

3) Organisational effectiveness becomes to some degree a question of management’s ability to motivate

its employees, to direct at least a reasonable effort toward the goals of the organisation.

4) As technology increases in complexity, machines tend to become necessary, but insufficient vehicles
of effective and efficient operations. In other words, it becomes necessary for an organisation to ensure

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that it has employees who are both capable of using and willing to use the advanced technology to
achieve organisational goals.

5) Many organisations are now beginning to pay increasing attention to develop their employees as future
resources (for talent bank) upon which they can draw as they grow and develop.

TYPES OF MOTIVATION

Motivation may be classified on various bases :

1) Positive or negative

2) Extrinsic and intrinsic

3) Financial or non-financial

Positive motivation is the process of attempting to influence the employees’ behaviour through
recognition and appreciation of employees’ efforts and contribution towards achievement of
organisational goal. Examples of positive motivators are : taking interest in subordinates benefits,
appreciation and credit for work done, delegating the authority and responsibility to subordinates etc.

Negative motivation is based upon fear i.e. demotion, lay off etc. The fear of punishment affects the
behaviour towards changes. Though punishment has resulted in controlling the misbehaviour and
contributed towards positive performance but it may also lead to poor performance & lower productivity.
The second classification relates to extrinsic and intrinsic motivation. Extrinsic motivators arise away from
the job. They do not occur on the job. These factors include: wages, fringe benefits, medical
reimbursement, etc. Thus, they are generally associated with financial incentives. But, intrinsic motivators
occur on the job and provide satisfaction during the performance of work itself. Intrinsic or internal
motivators include: recognition, status, authority, participation, etc.

Lastly motivators may be financial or non-financial. Financial motivators are those which are
associated with money. They include: wages and salaries, fringe benefits, bonus, retirement benefits,
etc. Non-financial motivators are those which are not associated with monetary rewards. They include:
intangible incentives like ego satisfaction, self- actualisation and responsibility. Here we shall be confining
our discussion only to financial and non-financial motivation/ incentives.

Financial Motivation/Incentives

Money plays an important role in motivation. Management generally make use of financial incentives like
wages and salaries, bonus, retirement benefits, insurance, medical reimbursement, etc. to motivate the
workers. However, such incentives may not always prove to be motivating. In many cases, management
may have to increase the financial incentives to keep the workers with the organisation. This can be
appreciated from the practice of making wages and salaries competitive among various enterprises so
as to attract and maintain good work-force.

Money is a real motivating factor when the physiological and security needs of the workers have not been
fully satisfied. Money plays a significant role in satisfying these needs. Therefore, management can use
financial incentive for motivation. Money also helps in satisfying the social needs of employees to some
extent because money is often recognised as a symbol of status, respect and power. Besides money is
an important means of achieving a ‘minimum standard of living’ although this ‘minimum’ has the tendency
to go up as people become more affluent. But this should not lead one to conclude that money will always
be a motivating factor to all people. To some people, importance of money may be reduced after a certain
stage, and non-financial rewards may become more important. They are motivated by money only up to
the stage they are struggling for satisfying their physiological and security needs.
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Money provides for the satisfaction of physiological and safety needs only which have been called
hygienic factors by Herzberg. Hygienic factors include: wages and salaries and other fringe benefits. The
presence of these factors at a satisfactory level prevents job dissatisfaction. They do not provide ‘on a
job satisfaction’ to the employees and, therefore, cannot be considered as motivational factors. According
to Herzberg, in order to motivate the employees, it is necessary to provide for the satisfaction of ego,
social and self-actualisation needs. But these needs are present generally in case of employees in the
higher positions, who get higher monetary rewards and are not motivated by increased monetary
benefits. In case of employees at the operative levels, money certainly plays a significant role in
motivating them because their survival and safety depends on it.

Non-Financial Motivation/Incentives

When the physiological and security needs are satisfied with the help of money, it ceases to be a
motivating force; that is why it is regarded as a maintenance factor. Indeed employees have other needs
also. They want status and recognition in society; they want to satisfy their ego needs and they want to
achieve something in their lives. In order to motivate the employees having these needs, management
may use the following non-financial incentives:

1) Competition : If there is healthy competition among individual employees, groups of employees, it

leads them to achieve their personal or group goals. Hence, competition acts as a non-financial incentive.

2) Praise or Appreciation of work done : Recognition of satisfactory performance acts as a non-

financial incentive since it satisfies one’s ego needs. Sometimes appreciation of work done is more
effective than any other incentive. However, this incentive should be used with great care because
praising an incompetent employee creates resentment among competent employees.

3) Knowledge of the results : Knowledge of the results of work accomplished leads to employee
satisfaction. A worker feels happy if he is informed about performance. He derives satisfaction when his
superior appreciates the work he has done. In modern industry, the production workers have no contact
with the consumers and so they cannot get the reaction of the consumers. However, they can be
motivated to a greater extent if they are told the rating of their performance.

4) Workers’ participation in management : Participation in management provides strong motivation to

the employees. It gives them psychological satisfaction that their voice is heard. Participation in
management provides for two-way communication and so imbibes a sense of importance.

5) Suggestion system : Suggestion system is an incentive which satisfies many needs of the
employees. Many organisations which use the suggestion system make use of cash awards for useful
suggestions. They sometimes publish the worker’s name with his photograph in the company’s
magazine. This motivates the employees to be in search for something which may be of greater use to
the organisation.

6) Opportunity for growth : Opportunity for growth is another kind of incentive. If the employees are
provided opportunities for their advancement and growth and to develop their personality, they feel very
much satisfied and become more committed to organisation goals

LEADERSHIP

Leadership may be defined as a process of influencing group activities towards the achievement of
certain goals. Thus, the leader is a person in a group who is capable of influencing the group to work
willingly. He guides and directs other people and provides purpose and direction to their efforts. The
leader is a part of the group that he leads, but he is distinct from the rest of the group. As defined by

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George R. Terry “Leadership is the activity of influencing people to strive willingly for group
objectives”.

Leadership naturally implies the existence of a leader and followers as well as their mutual interaction. It
involves inter-personal relation, which sustains the followers accepting the leader’s guidance for
accomplishment of specified goals.

Managers have to guide and lead their subordinates towards the achievement of group goals. Therefore,
a manager can be more effective if he is a good leader. He does not depend only on his positional power
or formal authority to secure group performance but exercises leadership influence for the purpose. As a
leader he influences the conduct and behaviour of the members of the work team in the interest of the
organisation as well as the individual subordinates and the group as a whole. But leadership and
management are not the same thing. Management involves planning, organising, coordinating and
controlling operations in achieving various organisational goals. Leadership is the process which
influences the people and inspires them to willingly accomplish the organisational objectives. Thus, a
manager is more than a leader. On the other hand, a leader need not necessarily be a manager. For
instance, in an informal group, the leader may influence the conduct of his fellow members but he may
not be a manager. His leadership position is due to the acceptance of his role by his followers. But, the
manager, acting as a leader, has powers delegated to him by his superiors. His leadership is an
accompaniment of his position as a manager having an organised group of subordinates under his
authority. Thus, managerial leadership has the following characteristics:

i) It is a continuous process whereby the manager influences, guides and directs the behaviours of
subordinates.

ii) The manager-leader is able to influence his subordinates behaviour at work due to the quality of his
own behaviour as leader.

iii) The purpose of managerial leadership is to get willing cooperation of the work group in the
achievement of specified goals.

iv) The success of a manager as leader depends on the acceptance of his leadership by the subordinates.

v) Managerial leadership requires that while group goals are pursued, individual goals are also achieved.

IMPORTANCE OF MANAGERIAL LEADERSHIP

The importance of managerial leadership in an organisation arises from the basic nature of the
managerial and leadership roles of managers. Combination of these roles invariably leads to not only
effective task performance and fuller achievement of organisation goals but also human satisfaction
alround. This is because management is based on the formal authority of managers. Whereas, being
leaders of work groups enables managers to achieve results on the basis of inter-personal relations. The
leader manager identifies himself with the work group. He acts as an intermediary between his
subordinates and the top management. He takes personal interest in the development of his
subordinates, helps them in overcoming individual problems through advice and counselling, creates
appropriate work environment and builds up team spirit. As a result the leader manager is able to develop
better team work. The subordinates willingly accept his advice, guidance and direction and are inspired
as a group to accomplish the specific goals.

THEORIES OF LEADERSHIP

There are a number of theories which provide explanations regarding various aspects of the leadership
phenomenon. Let us examine some of the theories.

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Trait Theory : This is the earliest theory based on a distinction between the personal qualities or traits
of successful leaders. The theory suggests a list of personality traits or characteristics which must be
present in a person for his success as a leader. According to this theory, leaders must be physically
strong and well-built, intelligent, honest and mentally mature. He must have initiative, self-confidence,
ability to take decisions, and so on. Since all individuals did not have these qualities, only those who had
them would be considered potential leaders. Following are the limitations of this theory:

i) The trait theory is not accepted as a valid theory.

ii) There is no universally agreed list of traits associated with successful leaders.

iii) It is difficult to measure the traits and, therefore it is not always possible to distinguish between leaders
and followers.

Behavioural Theories : The behavioural theories of leadership are based on the belief that leaders can
be identified by reference to their behaviour in relation to the followers. In other words, it is suggested
that leadership can be described in terms of what leaders do rather than what they are. Behavioural
theories have been presented mostly on the basis of research studies. According to the studies
conducted in the States of Michigan, USA, leaders who treat their subordinates as human beings, are
concerned about their well-being, and encourage and involve them in goal setting, are more effective.
They are described as ‘employeecentred’ leaders. On the other hand, leaders who are ‘production-
centred’ emphasise job performance in conformity with prescribed standards. He exercises close control
over the employees as if they were tools of production. Such a leadership is associated with
unsatisfactory work performance due to the low morale of employees.

Situational Theories : In the situational theories of leadership the success of leadership depends upon
the situation in which the leader operates. According to leadership contingency model developed by Fred
E. Fiedler, the leader’s effectiveness depend upon three situational factors:

i) Leader-followers relations, that is the degree of follower’s trust, confidence and

respect for the leader.
ii) The extent to which the task performed by subordinates is routine or nonroutine
(known as task structure).
iii) The position power of the leader, that is, the power associated with the rank and
position of the leader in the organisation. He defined favourableness of a situation as
the degree to which the situation enables the leader to exert his influence over his
group.

The most favourable situation for leaders to influence their group is one in which they
are well liked by the members, the task is highly structured (i.e., routinised and
predictable) and the leader has enormous power attached to his position. On the other
the most unfavourable situation for leaders is one in which they are disliked, the task
is highly unstructured and he will have little position power.

LEADERSHIP STYLES

The dominant behaviour pattern of a leader-manager in relation to his subordinates is known as

leadership style.

There are three basic styles of leadership as follows:

1) Autocratic or Authoritative Style

2) Democratic or Participative Style and
3) Laissez-faire or Free-rein Style.
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Autocratic or Authoritative Style

An autocratic leader centralises power and decision-making in himself and exercises complete
control over the subordinates. In this style, subordinates are compelled to follow the orders of the
leader under threat of penalties. They have no opportunity to take part in goal-setting, or take
initiative or make suggestions. They are subject to close supervision and, thus have a tendency
to avoid responsibility. The autocratic manager has little concern for the well-being of employees,
who suffer from frustration and low morale. They do not have any sense of belonging to the
organisation and try to work as little as possible.

Limitations : It should be clear from the above that there are several limitations of the autocratic
style of leadership.

i) It results in low morale due to the inner dissatisfaction of employees.

ii) Efficiency of production goes down in the long run.
iii) It does not permit development of future managers from among capable subordinates.

Despite the above limitations, autocratic leadership can be successfully applied in the
following situations:

i) When subordinates are incompetent and inexperienced.

ii) The leader prefers to be active and dominant in decision-making.

iii) The company endorses fear and punishment for disciplinary techniques.

iv) There is a little room for error in final accomplishment.

v) Under conditions of stress when great speed and efficiency are required.

Since the leader-manager takes all decisions in autocratic style, there is uniformity and
consistency in decision-making.

Democratic or Participative Style

The democratic style is also known as participative style. In this style, decisions are taken by the leader
in consultation with the subordinates and with their participation in the decision making process. The
participative leader encourages subordinates to make suggestions and take initiative in setting goals and
implementing decisions. This enables subordinates to satisfy their social and ego needs, which in turn,
lead to their commitment to the organisation goals and higher productivity. Frequent interaction between
the manager and subordinates helps to build up mutual faith and confidence.

Several benefits can be derived from the participative style of leadership as listed below:

i) It helps subordinates to develop their potential abilities and assume greater responsibilities.

ii) It provides job satisfaction and improves the morale of employees.

iii) The group performance can be sustained at a high level due to the satisfied and cohesive nature of
the group.

However, the democratic style cannot be regarded as the best style under all circumstances. Its
limitations are as follows:

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i) Decisions taken through consultation may cause delay and require compromises to meet different
viewpoints.
ii) A few vocal individuals may dominate the decision-making process.
iii) No one individual may take the responsibility for implementing the decision taken by the group as
a whole.

Despite the above limitations, democratic style is suitable in the following situations:

i) When subordinates are competent and experienced.

ii) The leader prefers participative decision-making process.
iii) Rewards and involvement are used as the primary means of motivation and control.
iv) The leader wishes to develop analytical and self-control abilities in his subordinates.
v) The organisation has clearly communicated its goals and the objectives to the subordinates.

Laissez Faire Leadership Style

Laissez faire leadership style is just the opposite of autocratic style. A manager, who adopts this style,
completely gives up his leadership role. The subordinate group is allowed to make decisions and it is left
to the members of the group to do as they like. The role of any leader is absent. The group members
enjoy full freedom as regards goal-setting and acting on it. Hence, there is chaos and mismanagement
of group goals. However, laissez faire leadership is found to be quite suitable where the subordinates are
well-trained, competent and the leader manager is able to fully delegate the powers of decision-making
and action to the subordinates.

Laissez faire style is suitable in the following situations:

i) When leader is interested in delegating decision-making fully.

ii) Subordinates are well trained and highly knowledgeable.
iii) Organisation goals have been communicated.

Despite a few suitability, this style should be adopted rarely because it may lead to chaos and
mismanagement

FUNCTIONS OF LEADERSHIP

A leadership functions of a manager are closely related with his managerial functions. But they are
somewhat different as well as overlapping. Essentially, the leader as a manager has to set the group
goal, make plans, motivate and inspire subordinates and supervise performance. But he has to perform
several other functions as leader. The more important of these functions are given below:

1) To develop team work : One of the primary functions of the leader is to develop his work-group as a
team. It is his responsibility to create a congenial work-environment keeping in view the subordinates
competence, needs and potential abilities.

2) To act as a representative of the work-group : The leader of a workgroup is expected to act as a

link between the group and top management. When necessary, the leader has to communicate the
problems and grievances of his subordinates to the top management.

3) To act as a counsellor of the people at work : Where the subordinates face problems in connection
with their performance at work, the leader has to guide and advise the subordinates concerned. The
problems may be technical or emotional in nature.

4) Time management : The leader’s functions include not only ensuring the quality and efficiency of
work performed by the group, but also checking on the timeliness of completing different stages of work.

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5) Proper use of power : While exercising power or authority in relation to his subordinates, the leader
must be careful about using his power in different ways according to the situation. It may be necessary
to use reward power, coercive power, or expert power, formal or informal power, depending on what will
stimulate positive response from the subordinates.

6) Secure effectiveness of group-effort : To get the maximum contribution towards the achievement
of objectives, the leader must provide for a reward system to improve the efficiency of capable workmen,
delegate authority, and invite participation of employees in decision-making, ensure the availability of
adequate resources, and communicate necessary information to the employees.

MOTIVATION AND LEADERSHIP

Effective leadership makes a positive impact on the motivation of members of a work group. This is due
to the following reasons :

i) Leadership creates a congenial work environment and thus ensures job satisfaction.
ii) It enables group members to achieve individual goals as well as organisational goals.
iii) It provides for a proper system of rewards and incentives for capable employees, which includes
both financial and non-financial incentives.
iv) The leader’s concern for the well-being and development of subordinates promises self- fulfilment
to every group member.

An effective leader-manager helps and supports his subordinates in the light of their individual
values and expectations. This supportive relationship increases their motivation as it builds and
maintains a sense of personal worth and importance of each individual.

Effective and Ineffective Styles

Effectiveness depends on the situational demands of a specific environment. When the style of a leader
is appropriate to a given situation, it is termed effective.

The basic styles of leadership are further divided into eight styles according to their degrees of
effectiveness i.e., as more effective and less effective styles. The following are regarded as more
effective styles.

Executive : Used by a manager, this style attaches maximum importance to work as well as the people.
Such a manager is able to motivate people and utilise the team effectively. He sets high standards of
performance and can accomplish the goals successfully.

Developer : The manager adopting this style attaches greatest importance to the people at work and
has minimum concern for work. He devotes maximum attention to the development of individual
subordinates and believes in their capability

Benevolent autocrat : The manager whose attitude and style are those of a benevolent autocrat has
high concern for work and low concern for people. But he is able to achieve the goals without causing
any resentment among the subordinates.

Bureaucrat : With a bureaucratic style the manager is able to control the worksituation and achieve goals
by means of rules and procedure. He has minimum concern for people and work as such.

The less effective (or ineffective) styles are stated to be those which are not appropriate to the situation.
These are as follows:

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Compromiser : A manager who is equally concerned with people and work in a situation which requires
emphasis on one of these, is a poor decision-maker due to pressures on both counts. Thus he is
ineffective manager leader.

Missionary : The missionary manager is one who aims at harmonious relations among people as an
ideal and is little concerned with work, although the situation requires greater emphasis on work. He is
unable to get results.

Autocrat : An autocratic manager is interested only in work and results thereof, whereas the situation
requires relation-orientation. Such a manager lacks confidence in his subordinates and depends on high-
handed management. So his leadership fails in the long-run.

Deserter : The manager who is concerned with neither people nor work reflects a passive attitude
towards his job. He is an escapist.

Factors Influencing Leadership Effectiveness

Taking an overall view of the question of effectiveness of leaders, some writers have identified a number
of factors that influence the leader and his effectiveness. These factors are:

1) The leader’s own personality, past experience and expectations.

2) The expectations and behaviour of his superiors.

3) The subordinates’ characteristics, expectations and behaviour.

4) The requirements of tasks to be performed by subordinates.

5) Expectations and behaviour of fellow managers (peers).

6) Organisational culture (climate) and policies.

Qualities of an Effective Leader

A leader cannot be effective unless he possesses certain qualities of head and heart. Irrespective of the
nature of the manager-leader’s own responsibilities of the job and the style adopted by him, a number of
qualities are generally found to be possessed by the effective leader. The more important of these
qualities are listed below :

1) Mental and physical health : To be able to bear the pulls and pressures of leadership, it is essential
for the leader to have sound health both mental and physical. Along with a balanced temperament and
optimistic outlook, he must possess stamina and sound health.

2) Empathy : A leader must have the capacity to appreciate others and look at things from his
subordinates’ angle. This attitude of the leader motivates his subordinates.

3) Self-confidence : Confidence about one’s leadership ability makes it possible for a leader to analyse
and face different situations and adopt a style. Lack of self- confidence often prevents managers to adopt
participative style and repose trust in his subordinates.

4) Awareness of others’ opinion about himself : A leader having selfconfidence should not ignore how
others perceive him as a leader. He must be aware of his strength and weakness in relation to his
subordinates.

5) Objectivity : A leader who is effective does not get carried away by emotions. He is fair and objective
in his dealings with subordinates.

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6) Knowledge and intelligence : A leader to be effective must have knowledge of group behaviour,
human nature, and activities involving technical and professional competence. He must have intelligent
perception of human psychology and ability to think clearly and argue cogently on points of dispute.

7) Decisiveness : Decision-making is a necessary but difficult task for every leader. A leader often has
to take initiative and exercise mature judgement while taking decisions. Besides, he has to have foresight,
imagination and creative ideas for effective decision making. Open mindness is yet another essential
quality for that purpose.

8) Ability to communicate : The skill of effective communication of goals and procedure of work is
extremely important in leadership. To achieve desired results and coordination of efforts in a group, oral
communication is of great significance.

9) Sense of purpose and responsibility : A leader must have clarity of

purpose and responsibility to be able to inspire his subordinates to achieve specific goals.

10) Other qualities : Enthusiasm, courage, sense of direction, judgement, tact, courtesy and integrity
are also regarded as necessary qualities for a leader to be effective.

Fundamentals of Control

1. Managerial Control
1. Importance of controlling
2. Types of controls
3. Internal and external control

2. The Control Process

1. Establish objectives and standards
2. Measure actual performance
3. Compare results with objectives
4. Take corrective action

3. Control Tools and Techniques

1. Project management and control
2. Inventory control
3. Breakeven analysis
4. Financial controls
5. Balanced scorecards

• Controlling
– The process of measuring performance and taking action to ensure desired results
– Has a positive and necessary role in the management process
– Ensures that the right things happen, in the right way, at the right time
– Benefit: Organizational learning (Example: After-action review)

The role of controlling in the management process

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• Feedforward controls
– Employed before a work activity begins
– Ensures that:
• Objectives are clear
• Proper directions are established
• Right resources are available
– Goal is to solve problems before they occur

• Concurrent controls
– Focus on what happens during work process
– Monitor ongoing operations to make sure they are being done according to plan
– Goal is to solve problems as they occur

• Feedback controls
– Take place after work is completed
– Focus on quality of end results
– Goal is to solve problems after they occur and prevent future ones

Feedforward, concurrent, and feedback controls.

• Internal and external control

– Internal control
• Allows motivated individuals and groups to exercise self-discipline in fulfilling job
expectations

– External control
• Occurs through personal supervision and the use of formal administrative systems

• Self-control
– Internal control that occurs through self-discipline in fulfilling work and personal goals and
responsibilities

• Bureaucratic control
– Influences behavior through authority, policies, procedures, job descriptions, budgets, and day-
to-day supervision

• Clan control
– Influences behavior through norms and expectations set by the organizational culture

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• Market Control
– Influence of market competition on the behavior of organizations and their members

Four steps in the control process

The Control Process

• Step 1 — establishing objectives and standards

– Output standards
• Measure performance results in terms of quantity, quality, cost, or time

– Input standards
• Measure effort in terms of amount of work expended in task performance

• Step 2 — measuring actual performance

– Goal is accurate measurement of actual performance results and/or performance efforts
– Must identify significant differences between actual results and original plan
– Effective control requires measurement

• Step 3 — comparing results with objectives and standards

– Need for action = Desired Performance – Actual Performance
– Comparison methods:
• Historical comparison
• Relative comparison
• Engineering comparison

• Step 4 — taking corrective action

– Taking action when a discrepancy exists between desired and actual performance
– Management by exception
• Giving attention to situations showing the greatest need for action
• Types of exceptions
– Problem situation
– Opportunity situation

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Control Tools and Techniques

• Project Management
– Overall planning, supervision, and control of projects
• Projects – unique one-time events that occur within a defined time period
• Gantt chart – graphic display of scheduled tasks required to complete a project
• CPM/PERT – combination of the critical path method and program evaluation and review
technique

Gantt Chart

CPM/PERT Chart

• Inventory control
– Ensures that inventory is only big enough to meet immediate needs
– Economic order quantity
• Places new orders when inventory levels fall to predetermined points
– Just-in-time scheduling
• Routes materials to workstations just in time for use

• Breakeven analysis
– Breakeven point
• Occurs where revenues just equal costs
– Breakeven analysis
• Performs what-if calculations under different revenue and cost conditions

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Use of breakeven analysis to make informed “what-if” decisions

Basic foundations of a balance sheet and income statement

• Basic Financial Ratios

– Liquidity
• The ability to generate cash to pay bills
– Leverage
• The ability to earn more in returns than the cost of debt
– Asset management
• The ability to use resources efficiently and operate at minimum cost
– Profitability
• The ability to earn revenues greater than costs

• Balanced Scorecard
• Factors used to develop scorecard goals and measures:
– Financial performance
– Customer Satisfaction
– Internal process improvement
– Innovation and learning

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VI. LEARNING ACTIVITIES
1. Modules posted in Google Classroom/ Group Chat
2. Research additional videos in You Tube

VII. EVALUATION (Note: Not to be included in the student’s copy of the IM)

VIII. ASSIGNMENT

IX. REFERENCES

1. Dr Muhammad Ehsan Ulhaque: Visit http://elearning.alhaque.comfor Notes

2. Dr Mohammed Balubaid: Engineering Management
3. https://earlhaig.ca/departments/business/downloads/Ms.%20Harvey/Ch08.ppt
4. https://www.just.edu.jo/~mqais/CIS150/ch09.ppt
5. file:///D:/project%20management/Block-
4%20COMMUNICATION,%20MOTIVATION%20AND%20LEADERSHIP.pdf

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