PRINICIPLES OF MANAGEMENT

BHM ,1ST SEMESTER

TRIBHUWAN UNIVERSITY(TU)

MR.NARAYAN PRASAD SAPKOTA

M.COM,DBM,DUCBM
LECTURER,OXFORD COLLEGE,
BUTWAL
 Unit 6

Leading
 Meaning of leadership
George R. Terry “Leadership is the activity of
influencing people to strive willingly for mutual
objectives.”
Stephen P. Robbins “Leadership is the ability to
influence a group toward achievement of goals.”
• an art of influencing and inspiring the
behavior of others
 Qualities of leadership
1. Honesty and Integrity
2. Confidence
3. Inspire Others
4. Commitment and Passion
5. Good Communicator
6. Decision-Making Capabilities
7. Accountability
8. Delegation and Empowerment
9. Creativity and Innovation
10. Empathy
 Psychological contract and individual
differences.
The psychologist contract:
The overall set of expectation held by an individual with respect to what he or
she will contribute to the organization and what the organization will provide in
return.
– Contribution: what the individuals provides to the organization, e.g. effort,
ability, loyalty, skills, time, etc.
– Inducements: what the organization provides to the individual, e.g. pay, job
security, benefits, career opportunities, status, promotion opportunities, etc.
The person-Job Fit:
• The extent to which the contributions made by the individual match
the inducements offered by the organization
The nature of individual difference:
– Personal attributes that vary from one person to another
– Differences may be physical, psychological or emotional
 Group:

Two or more interacting and interdependent individuals

who come together to achieve specific goals is a group.
Formal groups
• Work groups defined by the organization’s structure
that have designated work assignments and tasks.
• Appropriate behaviors are defined by and directed
toward organizational goals.
Informal groups
Groups that are independently formed to meet the social
needs of their members.
 Leadership Styles
• Authoritarian style (leader-centered)
• Paternalistic style (leader-centered)
• Participative style (group-centered)
• Laissez-Faire style (individual-centered)
 Authoritarian style/ Autocratic Style:

• Called dictatorial or autocratic style

• Do what you are told, and don’t ask questions
• Leader makes all the decisions himself/herself without consulting
to subordinates.
• Leader issues order and instructions to subordinates and expects
total obedience from them.
• There is a system of one way communication and the leader
controls all the information.
• There is the provision of strict supervision and control.
• Leaders give reward and punishment as they like.
• Leader describes each job in details and assigns it to the
subordinates to complete according to his defined standard.
 Democratic/Participative style:
• Called consultative style
• There are two way communication system and interchanges
of ideas and experiences.
• Leader recognizes human values of subordinates and
behaves with them as members of the organization.
• This leadership provides more scope for use of human
creativity and initiative.
• It provides importance for team spirit and group efforts to
gain common objectives.
• Authority is delegated to subordinates.
• Performances are based on reward and punishment
 Laissez-Faire style:

• Also called Free rein

• Subordinates have complete freedom of choice
and can do, as they like
• The group may lacks any real direction towards
achievements
• Subordinates may go away from their
responsibilities
• May create conflicts among subordinates
• This style is rarely used in organization
 Managerial Ethics
• The code of moral principles and values that govern the behaviors of a
person or group with respect to what is right or wrong is managerial
ethics.
• It is the set of moral principles or beliefs that affect the behavior of
employees or leader.
• Ethics deals with internal values that are a part of corporate culture and
shapes decisions of a manager.
• Managerial ethics are broken down into two primary types: legal ethic
and moral ethic
• Legal ethics consider many rules and regulations for any company
whereas moral ethic is related with the individual behavior of the
manager with employees and costumers.
• Managerial ethics is important for every company, because people will
follow what leaders do.
 Guideline of Ethical Behavior
• Though every individual and group has a set
of ethical values, the following guidelines are
prescribed by James O’Toole in this regard:
1. Obey the law:
2. Tell the truth:
3. Respect for people:
4. The golden rule:
5. Above all, do no harm:
6. Practice participation – not paternalism:
7. Act when you have responsibility:
 Motivation
• Internal and external factors that stimulate
desire and energy in people to be continually
interested and committed to a job, role or
subject, or to make an effort to attain a goal.
• Motivation means to make an employee act in
desired manner or in the interest of the
organization.
• Motivation works best when individual needs
are compatible with organizational goals.
 Importance of motivation
• Motivated employees can lead to increased productivity and
allow an organization to achieve higher levels of output.
• Employee motivation is highly important for every company
due to the benefits that it brings to the company. Benefits
include:
– Increase employee commitment
– Improve employee satisfaction
– Improve employee efficiency
– Puts human resources into action
– Improves level of efficiency of employees
– Builds friendly relationship
– Leads to stability of work force
 Techniques of Motivation
• Financial incentives: as money is indicator of success, wages, salary motivates
employees to perform better.
• Job enlargement: Under this technique, task assigned to do job are increased by
adding simile task.
• Job enrichment: Under this technique jobs are made challenging and meaningful
by increasing responsibility
• Job rotation: it refers to shifting an employee from one job to another.
• Participation : Participation refers to involvement of employee in planning and
decision making.
• Delegation of authority: Delegation of authority is concerned with the granting of
authority to the
• Quality of work life: It is the relationship between employees’ and the total
working environment of organization.
• Management by Objectives: By this technique supervisor and subordinates set
individual and organizational goals
• Behavior modification: It develops positive motivation to the workers to do the
work in desired behavior.
 Communication
Rickey W. Griffin “Communication is the process
of transmitting information from one person to
another person.”
• Effective communication is the process of
sending a message in such a way that the
message received is as close in meaning as
possible to the message intended.
Process of communication
• Sender (Source): who has an idea
• Encoding: sender choose certain words or non-
verbal methods to translate the idea into a
message, this activity is called encoding.
• Message Channel: electronic, printed word,
graphic, media of sound
• Receiver: any person who notices and attaches
some meaning to a message
• Decoding: message reaches to receiver, is no
guarantee that it will be understood as the
sender intended to be. Attaching meaning to
the words or symbols is decoding,
interpretation by receiver
• Feedback: receiver reacts or responds to the
communication
 Active listening
Active listening is a technique that is used in counseling, training, and solving disputes
or conflicts . It requires that the listener fully concentrate, understand, respond and
then remember what is being said.
 Types of communication
Formal communication
• Official Channel of Communication
• It flow through established Authority
• Controlled and regulated by management
• The management decide which to share or not
• Example are: official letters, memos, notices, reports, staff meeting, etc,
• Form of Formal Communication are :
• Upward , Downward, Horizontal, Diagonal
Informal Communication
• Unofficial Communication
• Occurs Outside the formal channel
• Gossip, Complain, Whisper,
• Not officially approved and sanctioned
• Communication is done to maintain social relationship
Oral Communication:
• Face to face conversion, group discussions, telephone calls, and
other circumstances in which the spoken word is used to transmit
meaning
Written Communication:
• Memos, letters, reports, notes, and other circumstances in which
the written word is used to transmit meaning
• better for complex and difficult subjects, facts and opinions,
better for keeping records of messages exchanged, provide
opportunity to refer back, can be revised before transmitting,
immediate feedback in not available, never know if the message
is ever read, time consuming, reader are not helped by non-verbal
Non-verbal communication:
• Body language: gestures, postures, the nodding of our head,
blinking of our eyes, waving of our hands, shrugging of our
shoulders, etc.
• Paralanguage: pitch variation, speaking speed, pause,
volume variation, word stress
• Communication that is transmitted without words.
• Sounds with specific meanings or warnings
• Images that control or encourage behaviors
• Situational behaviors that convey meanings
• Clothing and physical surroundings that imply status
 Barriers of Communication
Organizational barriers:
• These barriers are formed within the organization through
organizational system, rules, policy & beliefs.
• The organizational barriers involve organizational policies,
organizational rules & regulations, lengthy scalar chain, one way
communication system & lack of confidence in subordinates.
Physical barriers:
• Internal structure the organization & layout of office machine &
equipment also create barriers in the transformation of
information.
• Some common physical barriers involve physical distance,
hierarchy of structure, office design & noise.
 Psychological barriers.
• Psychological barriers are generated due to human perception, lack of skill &
negative thinking of the top level of managers.
• Some common psychological barriers involve distrust of communicator,
superiority complex, individual perception, premature evaluation & no attention.
Semantic barriers:
• Semantic barriers are created due to the use of difficult & intensive language by
the sender.
• Some common scientific barriers involve harsh language, vague language,
misleading translation & technical language.
Technological barriers
• These barriers are formed due to defect in technology used & overload in
information.
• Some common technological barriers involve mechanical barriers, loss of
transmission, information overload & insufficient time allowed.