DIRECTING/LEADING FUNCTION PRINCIPLES OF DIRECTING

Meaning of Directing Directing is a complex function as it deals with people whose behavior is unpredictable.
A manager can increase his efficiency by observing the following principles: -
According to Earnest Dale, ‘directing is telling people what to do and seeing to it that
they do it to the best of their ability.’ 1. Harmony of objectives: Individual and organizational goals should be harmonized.
Managers should design a system under which people can satisfy their personal
According to Massie, ‘directing concerns the total manner in which a manager influences interests by working for the enterprise.
the actions of subordinates. It is the final action of a manager in getting others to act after 2. Unity of command: A subordinate should receive instructions from one superior
all preparations have been completed.’ and report back to the same superior.
3. Individual contribution: Performance is effective when every individual in the
Directing therefore involves overseeing, guiding, inspiring, and leading people for the
organization makes a distinct and maximum contribution to organizational goals.
accomplishment of predetermined objectives. 4. Direct supervision: Personal contact with the subordinates in addition to formal
and objective methods will improve the motivation and morale of subordinates,
Importance of directing and improve their loyalty to the organization.
1. It initiates action i.e., gets things started by kicking the plan into motion. 5. Appropriate techniques: The techniques applied should be efficient and
2. It helps in getting maximum results out of individuals – motivates and inspires appropriate to the people, the tasks and the situation.
workers which leads to improved performance.
6. Comprehension: Managers should ensure all communication is well understood.
3. Co-ordination - It integrates individual efforts & the various operations towards a 7. Principle of follow through: Managers must ensure that orders and instructions
common goal. are well understood and properly carried out by the subordinates.
4. Efficient use of resources - leads to less wastage of resources & reduces 8. Strategic use of informal groups: A manager must embrace informal work groups
duplication of efforts by maintaining a clear set of work for each employee. to supplement and support the formal groups.
5. It facilitates change in the organization – monitors changes in the business 9. Effective leadership: A good leader must win the trust and confidence of
environment and leads others to accepting change. subordinates to make direction effective.
6. It ensures stability and balance - fosters cooperation and commitment among the
people. ELEMENTS OF DIRECTING
7. Ensures employee discipline – fosters compliance with rules, regulations &
The directing function involves the following elements: -
directives.
i. Issuing orders and instructions to subordinates
ii. Continuous guidance and supervision
NATURE OF DIRECTING
iii. Communicating with employees
a) A dynamic and continuing function: A manager must continually guide, supervise
iv. Motivating subordinates to work efficiently
and motivate subordinates in the face of continuous changes.
vi. Providing leadership
b) It provides a link: Directing provides a link between the functions of planning,
organizing, staffing and controlling.
I. ISSUING ORDERS AND INSTRUCTIONS
c) It’s the essence of management: Directing produces results by creating goal-
oriented behavior. It ensures attainment of goals.
An order is a means of initiating, modifying or stopping an activity. It is a primary tool of
d) A pervasive function: It is performed by managers at all levels and in all
directing by means of which activities are started, guided and terminated. An instruction may
organizations.
be understood to be a command or guidance by a superior to act in a given way or refrain
e) Involves human factors: It is concerned with relationships between people by
from acting in a given circumstance.
creating harmony and cooperation among members of a group.
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 Nature of an order III. COMMUNICATION
• It is always issued by a superior Derived from the Latin word “communis‟ which means common, therefore if a person has
• The order is enforceable on a subordinate as the superior has got the authority for effected communication, he or she has established a common understanding. Literary, it is
this purpose the transmission or exchange of information. The purpose of communication in organizations
• The order may require a subordinate to do a particular activity or abstain from it. is to convey orders, instructions, or information so as to bring desired changes in the
performance and/or the attitude of employees. Proper communication results in clarity and
Characteristics/Essentials of a Good Order securing the cooperation of subordinates.
a) It should be clear and easily understandable.
b) It should be complete. IMPORTANCE OF COMMUNICATION
c) It should be compatible with the purpose and policies of the enterprise. Communication is the lifeblood of the organization. Success of direction largely depends on
d) It should be reasonable and attainable within the authority of the subordinate. how effectively the manager can communicate with his subordinates. Proper communication
e) It should stimulate willing, enthusiastic acceptance by the subordinate. in organizations at all levels and between all levels can improve both the quantity and quality
f) It should follow the chain of command. of output.
g) It should specify the time within which the order should be carried out and completed
h) The tone of the order should be appropriate. Some of the benefits of communication are as follows:
i) Preferably, the order should be in writing. ▪ Helps employees to understand their role clearly and perform effectively.
▪ Helps in achieving co-ordination and mutual understanding which in turn, leads to
II. SUPERVISION industrial harmony and increased productivity.
Supervision is the act of an expert overseeing of people at work in order to ensure ▪ Improves managerial efficiency and ensures cooperation of the staff.
compliance with established plans and procedures. ▪ Helps in molding attitudes and building up employees’ morale.
A supervisor acts as the mouthpiece of management to interpret policies and plans to ▪ It is the means through which delegation and decentralization of authority is
workers. He also transmits the feelings and suggestions of workers to higher level managers. successfully accomplished in an organization.
A supervisor has to meet the expectations of management and the demands of the workers.
TYPES OF COMMUNICATION
FACTORS AFFECTING THE EFFECTIVENESS OF SUPERVISION In an organization, communication flows through many channels, in different directions and
Human relations skills: The supervisor needs to have the ability to effectively interact with in many forms. Thus, the various types of communication are as follows;
others in order to: - On the basis of channel On the basis of direction On the basis of mode used
• Inspire and guide workers used
• Recognize individual differences as and adopt a people-oriented approach in order
to build a harmonious interpersonal relation in the department. (i) Formal (i) Upward (i) verbal; (a) oral, (b)
(ii) Informal (ii) Downward written
• Be sensitive to the feelings of others
(iii) Horizontal (ii) Non-verbal (gestural)
Technical job knowledge: A supervisor needs to be technically competent to guide his
(iv) Diagonal
workers in the best way of doing their work.
Knowledge of the organization: An effective supervisor should know the policies, plans and
impending changes in the organization and communicate the same to the subordinates. (a) Formal and Informal Communication
Proper leadership: The supervisors’ leadership style should be appropriate to the nature of A channel of communication is the path through which information flows. In every
the task and type of workers. organization information flows through both formal and informal channels.
Favorable work climate: The supervisor should be given a conducive climate for supervision i) Formal communication - The paths of communication which are based on
by giving them adequate authority and status in the organization. relationships established formally by management.

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 ii) Informal communication - Communication, which takes place on the basis of Need and importance of motivation
informal or social relations among staff. Mostly informal channels are used due to a) High-performance level - It is a vital requirement for increased performance.
friendly interaction of members of an organization. b) Leads to low employee turnover and absenteeism - Motivated employees stay
longer in the firm.
(b) Upward, Downward, Horizontal and Diagonal Communication c) Contribute to the acceptance of organizational change - Motivated employees
On the basis of the flow or direction, communication in organizations can be classified as; accept changes with more enthusiasm and also support its implementation.
i) Upward: The flow of communication from employees to superiors i.e., from d) Contributes to proper utilization of resources - It leads to a high degree of
bottom to top. Upward communication encourages employees to participate efficiency and optimal utilization of resources.
actively in the operations of the organization. They get encouraged and their sense e) Increases the willingness to work - It creates a need and desire on the part of the
of responsibility increases when they are heard by their supervisors about worker to perfect their work through better performance.
problems affecting the jobs. f) Contributes to building better labor relations i.e., between management and
ii) Downward: Communication made from superiors down the hierarchy i.e., from top subordinates e.g., decreased indiscipline.
to bottom. g) A basis for co-operation - Enables achievement of best results out of the efforts of
iii) Horizontal: Communication amongst members at the same level in the the workers on the job.
organization (i.e., people of the same rank and status). h) Improvement in skill and knowledge - motivated employees will focus on their
Such communication facilitates coordination of activities that are interdependent. personal development which is important for better job performance.
iv) Diagonal: Communication made between people who are neither in the same
department nor at the same level of organizational hierarchy. Theories of motivation
There are two broad theories of motivation; Content/Need theories & Process theories.
(c) Verbal and Non-verbal Communication
On the basis of the mode used, communication may be verbal or non-verbal. I. Content theories - focus on “WHAT” motivates human behavior. They try to
i) Verbal communication: Communication through the use of words, either written identify what our needs are and relate motivation to the fulfilling of these needs.
or oral.
ii) Non-verbal communication: Communication without the use of words, i.e., They outline the reasons for motivating an individual; that means they explain the
wordless communication. necessities and requirements that are essential to motivate a person.

IV. MOTIVATION II. Process theories - focus on “HOW” human behavior is motivated. They are
Motivation is the process of indoctrinating employees with unity of purpose and the need to concerned with “how” motivation occurs, and what kind of processes can influence
maintain harmonious relationships among them. In terms of derivation, the word motivate our motivation.
means to move, to activate.
Process theories outline various behavioral patterns of individuals in fulfilling their
It is a force that inspires a person at work to intensify his willingness to use the best of his needs and requirements.
capability for achievement of specific objectives. Issuance of proper instructions or orders
does not necessarily ensure that they will be properly carried out. It requires a manager to NB: Content models of motivation focus on what people needs in their lives (i.e., what
inspire or induce the employees to act and get the expected results. motivates them). Process theories look at the psychological and behavioral processes that
affect an individual’s motivation.
Today, the term means a lot more than this. Motivating is the work a manager performs to
inspire, encourage and impel people to take required action. A manager must stimulate
people to action to accomplish the desired goals.

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 Physiological: Physical survival necessities. These needs relate to the survival and
maintenance of human life. According to Maslow, if such needs are not satisfied, then
one’s motivation will arise from the quest to satisfy them. They include food, clothing,
shelter, water, air and sex.
I. CONTENT/NEED THEORIES
Application: Management should provide lunch & rest breaks, company meals,
These theories look for the factors inside people that cause, sustain or stop behavior.
drinking water and sufficient wages to purchase the essentials of life.
That means they explain the necessities and requirements that are essential to motivate
a person. They try to identify what our needs are and relate motivation to the fulfilling
Safety/Security: Protection from threats, deprivation, and other dangers. This is
of these needs.
the need to be free from physical, economic and emotional harm. They include
protection from violence and theft, emotional stability and well-being, health security,
(A) HIERARCHY OF NEEDS THEORY (Abraham H. Maslow)
and financial security.
A theory that postulates that a person will be motivated when his/her needs are
fulfilled. The theory states that five categories of human needs dictate an individual’s Application: Management should provide safe working/living environments, medical
behavior. According to Maslow: - insurance, social security and job security.
▪ Man is a wanting being - man continuously wants more and more, and what a
man wants or will want depends on what he/she already has. As soon as one Social/Affiliation (belongingness and love): Those related to interactions
of man’s needs is satisfied, another appears in its place. Since the process is with other people. The need for association, affiliation, friendship and acceptance.
unending, it makes man work continuously.
▪ A satisfied need is not a motivator - Man works to satisfy his needs. When a Application: Management must create a sense of community via team-based
particular need is satisfied, only fresh needs can motivate a person to work. projects and social events, promoting a culture where friendships can blossom and
▪ Man’s needs form a hierarchy of importance - Maslow thought that man’s promoting an environment that is welcoming and inclusive for people.
needs are arranged in a series of levels. As soon as needs of lower levels are
Esteem: Ego-driven needs. Esteem means being valued, respected and appreciated by
fulfilled, those of the next higher level will emerge and demand satisfaction.
others (respect for a person as a useful, honorable human being).
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Maslow divided two types of esteem needs: The ‘lower’ version of esteem is the need R – Relatedness (satisfactory relations with others, including co-workers) needs have to
for respect from others (esteem which is based on respect and acknowledgment from do with the importance of maintaining interpersonal relationships. These needs are
others, e.g., attention, prestige, status and loving their opinion). The ‘higher’ version is based on social interactions with others and align with Maslow’s social and esteem-
the need for self-respect (the belief that you are valuable and deserving of dignity e.g., related needs (gaining the respect of others).
the person may need independence, and freedom or self-confidence) and self-esteem
(confidence in your potential for personal growth and accomplishments). G – Growth needs (development of competence and realization of potential) describe
our intrinsic desire for personal development and align with the other portion of
Application: Making everyone feel valued and important through empowerment, Maslow’s esteem-related needs (self-esteem, self-confidence, and achievement) and
public praise and employee recognition programs. self-actualization needs.

Self-actualization: reflects an individual’s desire to grow and develop to his/her

Differences between Maslow’s and the ERG theory
fullest potential. The ‘need to accomplish everything that one can, to become the most
a) Unlike the hierarchy theory, the ERG theory allows for indifferent levels of needs to
that one can be’.
be pursued simultaneously.
b) The ERG theory allows the order of the needs to be different for different people.
Application: Give employees the opportunity for personal development, to think big,
c) ERG theory acknowledges that if a higher-level need remains unfulfilled, the person
to be creative, challenging positions, to reinvent, provide for participation in goal-setting
may regress to lower-level needs that seem easier to satisfy. This is known as
and decision-making processes, and provide direct input to senior leadership.
frustration regression principle.
However, not all people are driven by the same needs. At any time, different people
may be motivated by entirely different factors. It is important to understand the needs Implications of ERG theory of management
being pursued by each employee. Management must be able to recognize the needs a) Managers must recognize that employees have multiple needs that need to be
level at which an employee is operating and use those needs as levers of motivation. satisfied simultaneously.
b) If growth opportunities are not provided to employees, they may regress to
Criticism/ Limitations relatedness needs.
1) There is little evidence to support the hierarchal aspect.
2) Maslow has difficulties explaining cases in which a person may neglect lower- (C) ACQUIRED NEEDS THEORY (David Mc Cleland)
level needs in pursuit for higher levels needs. MC Cleland proposed that individuals’ specific needs are acquired overtime and are
3) There is little evidence that people are motivated by satisfying only one need shaped by one’s life experiences. The theory affirms that we all have three motivating
level at a time except in situations where there is conflict between the needs. drivers and one of these drives will be dominant in our behavior. The dominant drive
depends on our life experiences.
NB: To address some of these issues, Clayton Alderfer developed the ERG theory.
Need for achievement - a need to accomplish and demonstrate own competence.
(B) ERG THEORY (by Clayton Alderfer) People with a high need for achievement prefer tasks that provide for personal
Alderfer’s ERG theory of motivation builds on Maslow’s Hierarchy of Needs and states responsibility and results based on their own efforts. They also prefer quick
that humans have three core types of needs: Existence, Relatedness and Growth. acknowledgement of their progress.
Clayton collapsed Maslow’s five level of needs to three levels because studies had
shown that Maslow’s middle levels have some overlap. He developed the ERG theory. Need for affiliation - a need for love, belonging and social acceptance. People with a
high need for affiliation need to build relations and feel accepted by other people. They
E - Existence (physical well-being) needs concern our basic material requirements for prefer work that provides significant personal interaction and they also conform to the
living. They align with Maslow’s physiological and safety needs. norms of their work groups.

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 Need for Power - a need for control of own work or the work of others. Driven by the Hygiene factors, or extrinsic motivators, tend to represent more tangible, basic needs i.e.,
desire to influence, teach, or encourage others. People with a high need for power the kinds of needs included in the existence category of needs in the ERG theory or in the
desire situations in which they exercise power and influence over others. They aspire lower levels of Maslow’s hierarchy of needs. Extrinsic motivators include company policies,
for positions with status and authority. general management, job security, interpersonal relationships at work, supervision,
salary, fringe benefits and working conditions. It’s important for managers to realize that
NB: A person’s motivation and effectiveness in certain job functions are influenced by not providing the appropriate and expected extrinsic motivators will sow dissatisfaction and
the above three needs. An individual’s balance of these needs forms a kind of profile decrease motivation among employees.
that can be useful in creating a tailored motivational paradigm for them.
NB: According to Herzberg, intrinsic motivators and extrinsic motivators have an inverse
Implications for the management
relationship. That is, intrinsic motivators tend to increase motivation when they are
• High need for achievement. High achievers should be given challenging jobs e.g., projects present, while extrinsic motivators tend to reduce motivation when they are absent.
with reachable goals and should also be provided with frequent feedback.
• High need for affiliation- these people perform best in a co-operative environment The factors leading to job satisfaction are "separate and distinct from those that lead to job
• High need for power- should be provided with opportunities to manage others. dissatisfaction." Therefore, if you set about eliminating dissatisfying job factors, you may
create peace but not necessarily enhance performance. The conclusion is that job
(D) DUAL FACTOR/TWO FACTOR/HYGIENE MOTIVATION THEORY (Frederick Hertzberg) satisfaction and job dissatisfaction are not opposites, but rather;
The theory argues that there are two factors that an organization can adjust to influence
motivation in the workplace. According to the theory, there are certain factors in the ✓ The opposite of Satisfaction is No Satisfaction.
workplace that cause job satisfaction while a separate set of factors cause dissatisfaction, all ✓ The opposite of Dissatisfaction is No Dissatisfaction.
of which act independently of each other. These factors are:
Remedying the causes of dissatisfaction will not create satisfaction. Nor will adding the
i) Satisfiers/Motivators: Factors which can encourage employees to work harder. The
factors of job satisfaction eliminate job dissatisfaction. If you have a hostile work
motivational factors yield positive satisfaction. They are inherent to work (found within the
environment, giving someone a promotion will not make him or her satisfied. If you create a
actual job itself). Employees find these factors intrinsically rewarding.
healthy work environment but do not provide members of your team with any of the
satisfaction factors, the work they're doing will still not be satisfying.
Motivation factors, or intrinsic motivators, tend to represent less tangible, more emotional
needs i.e., the kinds of needs identified in the “growth” category of needs in the ERG theory
and in the higher levels of Maslow’s hierarchy of needs. Intrinsic motivators include
challenging work, recognition, achievement, responsibility, development and growth
potential. Managers need to recognize that while these needs may fall outside the more
traditional scope of what a workplace ought to provide, they can be critical to strong
individual and team performance.

ii) Dissatisfiers/Hygiene factors: These won’t encourage employees to work harder but they
will cause them to become unmotivated if they are not present. These do not lead to positive
satisfaction for long-term, but if these factors are absent/if these factors are non-existent at
workplace, then they lead to dissatisfaction i.e., if adequate/reasonable in a job, pacify the
employees and do not make them dissatisfied. These factors are extrinsic to work (they are
not present in the actual job itself but surround the job).

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Implications of Two-Factor Theory Motivation is a function of valence, instrumentality and expectancy.
The Two-Factor theory implies that the managers must stress upon guaranteeing the
adequacy of the hygiene factors to avoid employee dissatisfaction. Also, the managers must
make sure that the work is stimulating and rewarding so that the employees are motivated
to work and perform harder and better.
Valence is the significance associated by an individual about the expected outcome. It is the
II. PROCESS THEORIES unique value an individual places on a particular outcome.
Expectancy is the faith that better efforts will result in better performance.
The process theories on the other hand explore how behavior is caused, sustained or Instrumentality is the faith that if you perform well, then a valid outcome will be there.
stopped by the motivational factors. They look at the psychological and behavioral
processes that affect an individual's motivation. Process theories are concerned with
“how” motivation occurs, and what kind of process can influence our motivation.
Process-based theories use the mental processes of employees as the key to
understanding employee motivation. Unlike needs-based theory, it sees motivation as a
rational process.

Implications for management

✓ The managers must ensure that the employees can achieve the aimed performance levels.
✓ The deserving employees must be rewarded for their exceptional performance.
✓ The reward system must be fair and just in an organization.
✓ Organizations must design interesting, dynamic and challenging jobs.

ii) EQUITY THEORY (Adam Stacey)

A theory based on the idea that individuals are motivated by fairness. The theory considers
the concept of equality and fairness, as well as the importance of comparison to others.

At its core, Adams’ theory says that individuals want a fair relationship between inputs and
outputs. What this means is that they want the benefits (rewards) they receive from work to
seem fair in relation to the inputs (contribution) that they provide. Similarly, they want the
i) THE EXPECTANCY THEORY (Victor Vroom) rewards that others receive for their work to be similar to the rewards that they themselves
A theory that stresses and focuses on outcomes, and not on needs. It says that an would receive for the same level of contribution.
individual’s motivation is affected by their expectations about the future.
The Expectancy theory states that employee’s motivation is an outcome of how much According to the theory, the higher an individual’s perception of equity (fairness), then the
they value any reward associated with an action (Valence), how much they believe that more motivated they will be. Conversely, an individual will be demotivated if they perceive
by putting effort into something they will be able to generate good results (Expectancy) unfairness.
and how much they believe that generating good results will result in a reward
(Instrumentality).
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If people perceive that their ratio of their outcome to input is unequal to that of other positive, so long as the person is committed to the goal, has the pre-existing ability to attain
people, they experience a sense of inequity- whether positive (they feel that they have been it, and doesn't have conflicting goals.
treated unfairly well) or negative (they feel that they have been treated unfairly badly). If The theory outlined five principles for setting effective goals which are still commonly used
people feel that they are not getting paid enough for their work, compared to others, they when considering how to motive employees (application of the theory): -
will have a sense of negative inequity. A sense of inequity causes unpleasant tension or
inequity which motivates people to attempt to remove or reduce the perceived inequity by: - Clarity: A goal must be specific and clear.
Challenge: Goals should be sufficiently challenging to keep employees engaged and focused.
✓ Changing their inputs (e.g., reducing their hours or quality of work) Realistic: Goals should be realistic and capable of being achieved.
✓ Changing the outcome (e.g., demanding better pay) Commitment: Employees have to understand and buy in to the goal from the outset.
✓ Cognitive distortion e.g., believing that they are not working as hard as they should. Feedback: Regular feedback should be provided throughout the goal-achieving process to
✓ Withdrawal e.g., absenteeism. ensure tasks stay on track to reach the goal.
Participation: in setting goals, makes goals more acceptable and leads to more involvement.

iv. REINFORCEMENT - OPERANT CONDITIONING THEORY (B. F Skinner)

States that individual’s behavior is a function of its consequences. Reinforcement theory is
the process of shaping behavior by controlling consequences of the behavior.
The theory is based on “law of effect”, (a principle which states that behavior that is
followed by pleasant consequences is likely to be repeated, and behavior followed by
unpleasant consequences is less likely to be repeated).

Skinner introduced a new term into the Law of Effect – Reinforcement; “behavior which is
reinforced tends to be repeated (i.e., strengthened); behavior which is not reinforced tends
to die out or be extinguished (i.e., weakened)”. According to Skinner, the external
environment of the organization must be designed effectively and positively so as to
motivate the employee.

Types/Categories of reinforcement
Reinforcement theory of motivation aims at achieving the desired level of motivation among
the employees by means of reinforcement, punishment and extinction. Reinforcement
iii. GOAL THEORY (Edwin Locke and Associates) approach, (which can be both positive and negative), is used to reinforce the desired
Goal theory is an overall approach to motivation that emphasizes the need to establish goals behavior. Punishment acts as a deterrent to undesirable behaviors of the employees.
as intrinsic motivation. Goal theory states that people will perform better if they have Extinction refers to diminishing the probability of undesirable behavior. The technical term
difficult, specific, accepted performance goals or objectives. The theory observes that goal for these processes is called ‘Operant conditioning’(a learning process whereby deliberate
setting has an effect on task performance. Goals provide direction to employees about what behaviors are reinforced through consequences).
needs to be accomplished.
Positive Reinforcement- This implies giving a positive response when an individual shows
According to the theory, employees are motivated by clear, well-defined goals and feedback, positive and required behavior. For example - Immediately praising an employee for coming
and that a little workplace challenge is far from a bad thing. A relationship exists between early for job. This will increase probability of outstanding behavior occurring again.
goal difficulty, level of performance, and effort involved. This relationship will remain

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Negative Reinforcement − takes place when certain deterrent(s) or obstruction(s) is V. LEADERSHIP
removed and the employee(s) responds to a desired behavior after such removal. Example - Leadership is Interpersonal influence, securing willing commitment to shared goals, creating
An employer offering an employee a day off. Rather than giving a tangible reward, they direction and energy and an orientation to change. It is a process of social influence in which
reduce the presence of something undesirable; that is, the amount of time spent at work. one person can enlist the aid and support of others in the accomplishment of a common
task.
Punishment − refers to imposing negative consequences or removing positive consequences
with a view to preventing employee(s) from repeating undesirable behaviors. Example - An Leadership is the ability to build up confidence and zeal among people and to create an urge
employee who misses work may suffer a cut in wages. in them to be led.
According to Koontz and Donnell, the act of leadership is “the process of influencing people
Extinction- implies absence of reinforcements. It’s an attempt to extinguish a behavior by so that they will strive willingly and enthusiastically toward the achievement of the group
withholding the positive reinforcement that encouraged the behavior e.g., if an employee no goal”.
longer receives praise and admiration for his good work, he may feel that his behavior is
generating no fruitful consequence. Nature (Characteristics) of leadership
a) Leadership is a process of influence. A leader must be able to influence the behavior,
attitude and beliefs of his subordinates.
b) Leadership is the function of stimulating the followers to strive willingly to attain
organizational objectives.
c) Leadership is a continuous process by which an executive guide, influences and directs
the behavior of his subordinates.
d) Leadership is also a quality of behavior and the people who possess this quality are
known as leaders.
e) Leadership is related to a particular situation at a given point in time and under a specific
set of circumstances.
f) It involves reconciliation of organizational goals with individual goals.
g) It is a function of interaction between the leader, the followers and the situation.

Need/Importance of leadership
▪ Motivating employees: A dynamic leader breathes life into the group and makes people
eager to work towards the achievement of group goals.
▪ Morale building: The leader lifts employees’ vision to higher sights, raises their
performance and builds up their personality. He shapes the thinking and attitudes of the
group and maintains discipline.
▪ Creating confidence: They provide advice and guidance which creates and sustains self-
confidence and enthusiasm among the followers.
▪ Co-ordination: Leadership helps to unify individual efforts by fostering mutual
understanding and team spirit. They reconcile the interests of the individual members of
the group with that of the organization.
▪ Facilitates change: It is the mechanism to convince people about the need for change.

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▪ Goal setting: Leadership provides guidance to the group by setting and interpreting the Followership People become leaders if Since managers are part of formal
objectives. followers accept them as leaders. hierarchy, they act as managers
▪ Representation: Leaders serve as the personal embodiment of the group and as the true Leadership cannot exist without whether or not subordinates like
guardian of its interest. He defends the integrity of the group. followership. them.

LEADERSHIP VS MANAGEMENT Focus of Leadership is a process of Management is a process of getting

Leadership and management are not mutually exclusive, hence are similar in many ways. attention influencing the behavior. The things done. It is more of a
Both leadership and management involve influence, working with people, concern about focus is more on human procedure and result- oriented
effective goal accomplishment, and other shared characteristics, etc. Additionally, as Richard relations. approach.
Daft wrote, “leadership cannot replace management,” but rather is something that is to be
practiced “in addition to management”. Repetitiveness They carry out innovative Managerial functions are repetitive
activities and inspire the in nature. Managers perform the
The main difference between leadership and management lies in the fact that in the classical followers to perform above same functions again and again.
managerial context “managers are thinkers and workers are doers,” while in a leadership average.
context both leaders and workers/followers think, do, lead, “expand their minds and abilities
to assume responsibility” for their decisions and actions. Nature Leadership is participative. It Management is directive in nature.
invites followers to participate in It directs people to behave in a
BASIS LEADERSHIP MANAGEMENT the decision-making process. particular way.
Concept It is a part of management Broader concept and includes
leadership. Force It is a persuasive force. It is a compelling force.

Purpose It may or may not attain Aims to accomplish organizational CHARACTERISTICS OF EFFECTIVE LEADERSHIP
organizational goals. It can occur goals.
outside the organization. TRAITS
✓ Self confidence ✓ Team player
Functions It is influencing the behavior to It is planning, organizing, directing ✓ Intelligence ✓ Sincere
achieve a specific purpose. and controlling the organizational ✓ Strategic thinker ✓ Ability to delegate
activities. ✓ Ambitious ✓ Initiative
✓ Outgoing ✓ A good time manager
Inter- Good leaders may or may not be Good managers are normally good ✓ Independent ✓ Friendly
changeability good managers. Leaders do not leaders. Managers may carry out ✓ Trustworthy ✓ Experienced
normally carry out the functions the functions of leaders also. ✓ Assertive
of managers.
BEHAVIOUR CHARACTERISTICS
Formal Leaders are not part of Managers belong to the ✓ Committed to work ✓ Dependable
structure organizational hierarchy. Leaders organizational hierarchy. They ✓ Accountable ✓ Team player
may even lead unstructured manage structured groups of ✓ Believes in subordinates ✓ Fair / just / equitable
groups of people. people. and they believe in ✓ Kind
him/her ✓ A good initiator
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 ✓ Confident ✓ Friendly and Delegation Mentoring and building the leadership skills of those individuals
✓ Friendly approachable who have the potential to become future leaders.
✓ Flexible ✓ A good communicator
Integrity Integrity is doing the right thing, even when no one is watching.
SITUATONAL FACTORS
✓ Good relations with ✓ Able to guide and direct LEADERSHIP THEORIES/MODELS
subordinates subordinates
Leadership theories are schools of thought brought forward to explain how and why certain
✓ Provides clear goals or ✓ Dependable
individuals become leaders. The theories emphasize the traits and behaviors that individuals
structure tasks ✓ Team player
can adopt to boost their own leadership abilities.
✓ Sufficient legitimate authority ✓ Fair/just/equitable
✓ One who considers ✓ Kind
I. Great Man Theory of Leadership
subordinates ability ✓ A good initiator
This is one of the earliest leadership theories and is based on the assumption that leadership
✓ Should give social entail ✓ Friendly and approachable
is an inborn phenomenon and that leaders are "born" rather than "made." Those who
support to subordinates
support the great man theory say leaders are born with the attributes necessary to set them
apart from those around them and that these traits enable them to assume roles of authority
LEADERSHIP SKILLS
and power. Great leaders are heroes, according to this theory, that accomplish great feats
Whether or not leadership itself can be taught, there is no question that there are a number against the odds on behalf of followers. The theory states that leadership is an inherent
of core skills that most good leaders have. quality.; it isn't something that you can learn.

Strategic Thinking The ability to see the big picture and having an idea or vision of II. Trait Theory of Leadership
Skills where they want to be and working to achieve that. A modification of the Great Man Theory. It argues that leadership qualities or traits can be
acquired, they need not always be inborn. The theory states that there are certain
People Management Leaders need skills in working with others on a one-to-one and identifiable qualities or characteristics that are unique to leaders and that good leaders
Skills group basis. possess such qualities to some extent. According to this theory, leadership qualities may be
inborn or they may be acquired through training and practice, hence it involves a combined
Change Management Agility & adaptability are key to stay on the cutting edge. approach.
and Innovation Skills
III. The behavioral theory (the style theory)
Communication Skills Effective speaking, listening and know how to build rapport Behavioral theory of leadership is based upon the belief that great leaders are made, not
quickly and effectively. born. This theory of leadership focuses on how a person’s environment, not natural abilities,
forms him or her into a leader. Rooted in behaviorism, the theory focuses on the actions of
Relationship Building Ability to build a cohesive and more engaged team. leaders, not on mental qualities or internal states. It argues that the success of a leader is
based on their ability to respond to environmental factors. Therefore, anyone can become a
Motivation Ability to inspire and impel the workforce to improve company leader if they learn and implement certain behaviors.
efficiency.
This theory considers effective leadership to be the result of many learned or acquired skills,
Conflict Be a wise counsel in order to resolve or at least mitigate conflict hence people can learn to become leaders through teaching and observation.
Management before it affects the business negatively.

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NB: The actions and actual behaviors of a leader are what defines success in this theory.
Under the theory, patterns of behavior are observed and categorized as “styles of
leadership”.

TYPES OF BEHAVIORAL LEADERSHIP

There are several styles of behavioral leadership that are practiced in work environments:
i) People-oriented leadership
These leaders are primarily driven by their interpersonal connections. They build
relationships that inspire them and increase their efficiency.
ii) Task-oriented leadership
Task-oriented leaders perform well in structured environments and often display
authoritative behavior. Their behavior is influenced by setting goals and monitoring
progress.
iii) Sound leadership
Sound leaders prioritize both productivity and team morale at the same time. They
value their teams and find satisfaction in supporting their teams’ progress.

BLAKE AND MOUTON’S LEADERSHIP/MANAGERIAL GRID

(Behavioral Approach towards Management and Leadership) Concern for Production (completing tasks)
A concern for production means that managers direct subordinates towards goals. Managers
The managerial grid identifies five main styles of leadership, each dependent on a specific with this style typically give instructions, spend time planning, emphasize deadlines and
blend of concern for task and concern for people. provide explicit schedules of work activities. They simply want to get the job done.

Where managers find themselves on the grid is a product of their prior experience, lessons Concern for People (supporting individuals)
they’ve learned from their role-models, the culture of their organization, personal style and A concern for people means that managers are mindful of subordinates, respect their ideas
the training and development they have received. and feelings, establish mutual trust. These managers are friendly, provide open
communication, develop teamwork, and are oriented toward their subordinates’ welfare.
Based on behavioral research studies on leadership and management, two basic
management behaviors can be identified as important: task-oriented behavior and people- i) Impoverished Management (Indifferent style): managers have little concern for the
oriented behavior. Even though these two factors are not the only important management engagement of their teams or for completing tasks. Work is chaotic and
behaviors, concern for both the task and the people must be shown at some reasonable disorganized. Nothing is achieved and no one is happy.
level.
ii) Country Club Management (Accommodating style): managers have lots of concern
Inspired by these findings, Blake and Mouton from the University of Texas proposed a two- for their team’s engagement, happiness and wellbeing, but little for completing
dimensional Managerial/Leadership Grid - a graphic portrayal of leadership styles. The grid tasks. The hope of these managers is that their team’s engagement will lead to task
depicts two dimensions of leader behavior; concern for production (task-oriented) and completion, however, this can hamper production and lead to questionable results.
concern for people (relationship-oriented). Each axis on the grid consists of a nine-point
scale with 1 meaning a low concern and 9 a high concern. Depending on a manager’s score iii) Middle of the road management (Status quo style): the leader tries to maintain a
on each of the two axes, one can assign different types of management styles to managers. balance between goals of company and the needs of people. The leader does not
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 push the boundaries of achievement resulting in average performance for Fiedler’s Contingency Model of Leadership
organization. Here, neither employee nor production needs are fully met. Fiedler’s Contingency Model of Leadership is a business framework that evaluates the
effectiveness of a leader in an organization. It states that a leader’s effectiveness is based on
iv) Task management (Dictatorial style): managers have high levels of concern for task the situation. The framework argues that there is no one best style of leadership.
completion, but little for engagement. This may increase delivery in the short term,
but ultimately reduces it as people cease to be engaged and motivated. The premise for this model is that an individual’s leadership style is the result of their life
experiences, and therefore extremely difficult to change. Instead of trying to change one’s
v) Team management (Sound style): managers have both high people focus and high leadership style, the organization should match a particular leadership style to a particular
task focus. These managers achieve the best results. They ensure delivery while situation. A leader will be most effective when his features and styles of leadership will
retaining and engaging their people. match with the situation and environment around him.

IV. Contingency Theory Fiedler’s theory of leadership is based on two factors: leadership style and situational
This theory proposes that no one way or style of leadership may be applicable to all favorableness.
situations. In other words, it recognizes that there might be variables influencing any
particular situation, and a leader must choose the right course of action, taking into account
those variables.

The contingency theory of leadership supposes that a leader’s effectiveness is contingent on

whether or not their leadership style suits a particular situation. According to this theory, an
individual can be an effective leader in one circumstance and an ineffective leader in another
one. To maximize the likelihood of being a productive leader, this theory posits that one
should be able to examine each situation and decide if their leadership style is going to be
effective or not.

According to contingency theorists, no matter how successful a leader is, there will always be
a particular situation that will challenge them. Therefore, leaders must be willing to
acknowledge the fact that their success depends partially on their circumstances in addition
to their personal skills. a) Leadership styles: according to the theory, these are behaviors, which cannot be
influenced or modified. This is measured using a scale known as the Least Preferred Co-
It also suggests that it may be best to find the right kind of leader for a specific situation. worker (LPC) scale. The LPC scale is a questionnaire that helps the leader to understand
their specific leadership style.
The basis of this approach is quite simple. It states that people with different abilities can
perform better in their respective fields. A manager has his own set of skills, abilities, ways, A high LPC indicates a relationship-oriented leadership style. These leaders derive
experiences, and preferences which may not be successful universally in all the leadership satisfaction out of interpersonal relationships.
roles.
A low LPC indicates a task-oriented leadership style. These leaders tend to get
satisfaction out of successful task performance.

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 b) Situational favorableness or situational control: describes the leader’s ability to Maturity levels & Leadership style
control the group situation. More specifically, the degree to which the leader can
influence the behavior of group members in order to face the current situation.

The factors that determine the favorableness (the three contingencies) of a situation
are:
✓ Leader-Member Relation: refers to the degree of mutual trust, respect and
confidence between the leader and the subordinates. If the worker has trust and
confidence in the supervisor and is motivated by the supervisor, they have a
positive relationship.
✓ Task Structure: refers to the extent to which group tasks are clear and structured.
✓ Leader Position Power: This is a measure of the amount of authority the
supervisor has and how they can influence the productivity of the co-workers.

Conclusion
Fiedler’s Contingency Model of Leadership states that group effectiveness depends on an Telling: Directive and authoritative approach. The leader makes decisions and tells
appropriate match between a leader’s style and the demands of the situation. In other employees what to do.
words, effective leadership is contingent on matching the leader’s style to the right setting. Selling: The leader is still the decision maker, but he communicates and works to persuade
the employees rather than simply directing them.
V. Situational Theory Participating: The leader works with the team members to make decisions together. He
Situational theories of leadership work on the assumption that the most effective style of supports and encourages them and is more democratic.
leadership changes from situation to situation. To be most effective and successful, a leader Delegating: The leader assigns decision-making responsibility to team members but oversees
must be able to adapt his style and approach to diverse circumstances. their work.

According to this theory, different situations demand different styles of leadership and In addition to these four approaches to leadership, there are also four levels of follower
decision-making. Leaders must act by judging the situation they are facing. maturity:
Level M1: Followers have low competence and low commitment.
The situational theory of leadership does not relate to a certain type of leader or claim that Level M2: Followers have low competence, but high commitment.
any one style is best. Instead, situational theory argues that the best kind of leader is one Level M3: Followers have high competence, but low commitment and confidence.
who is able to adapt her style based on the situation. They may respond to a situation by Level M4: Followers have high competence and high commitment and confidence.
commanding, coaching, persuading, participating, delegating or however they think is
necessary. Situational leaders are defined by their flexibility. In Hersey and Blanchard’s approach, the key to successful leadership is matching the proper
leadership style to the corresponding maturity level of the employees. As a general rule, each
Hersey and Blanchard’s Situational Leadership Theory of the four leadership styles is appropriate for the corresponding employee maturity level:
This approach to leadership suggests the need to match two key elements appropriately: the
leader’s leadership style and the followers’ maturity or preparedness levels. Telling style works best for leading employees at the M1 level (low competence, low
commitment).
The theory identifies four main leadership approaches: Selling style works best for leading employees at the M2 level (low competence, high
commitment).

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Participating style works best for leading employees at the M3 level (high competence, low ii) Employee characteristics: Employee characteristics determine the locus of control,
commitment/confidence). experience, and ability. Personal factors of employees determine how the
Delegating style works best for leading employees at the M4 level (high competence, high environment and leader are interpreted.
commitment/confidence).

Identifying the employee maturity level becomes a very important part of the process, and
the leader must have the willingness and ability to use any of the four leadership styles as
needed.

Path-Goal Theory of Leadership (Robert House)

A leadership theory that establishes a supportive plan for goal achievement. It analyzes not
only the relationship between leadership styles and various situations but also what
leadership styles are effective based on any given situation.

The theory hinges upon an employee or subordinates' perception of what is expected of

them, their effort, and their performance, which are all directly related to the behavior of
their leader. The Path-Goal theory states the primary function of a leader is to provide clear
objectives based upon the characteristics of employees and the work environment, choose a
leadership style that is optimal to achieve those objectives, identify the motivational and This theory identifies four leadership behaviors or styles: -
achievement indicators that should be used, and do everything in their power to identify and
remove any obstacles their subordinates may encounter. I. Achievement-oriented: a leadership style where the leader encourages employee
growth and progress by setting goals that are challenging. The leader encourages
The path-goal theory matches what leadership style is best suited based upon the the employees to strive for continuous improvement. This style of leadership works
characteristics of the employee and work setting. The model specifies the following well for employees who are highly motivated, comfortable working independently,
statements: - and have strong problem-solving skills.
✓ Leaders should engage in different types of leadership behaviors.
II. Directive: The leader informs their followers on what is expected of them. Leaders
✓ Leadership style should best fit the working environment. tell the followers what to do, how to perform a task, and coordinate work. It is
✓ Leaders' behavior depends on the nature and the demands of a particular situation. most effective when there is a lot of uncertainty within the environment.
✓ It is the leader’s job to assist followers in attaining goals. III. Participative: The leader consults with their followers and asks for their
✓ Leaders should provide the direction and support needed by the followers. suggestions before deciding. This behavior is predominant when employees are
✓ Leaders should also ensure that their goals are compatible with the organization’s goals. personally involved in their work.
IV. Supportive: The leader is friendly towards subordinates and displays personal
The theory assumes that leaders are flexible. It believes that leaders can change their style as concern for their needs, welfare, and well-being. This behavior is especially needed
per different situations. The theory states that each of these styles will be effective in some in distressing tasks or relationships.
situations but not in others. It further states that the relationship between a leader’s style
and effectiveness is dependent on the following contingent variables: - VI. Transactional Theories
Transactional Theories, also referred to as Management theories or exchange leadership
i) Environmental factors: These include factors such as task structure and team theories, revolve around the role of supervision, organization, and teamwork. These
dynamics that are outside the control of the employee. leadership theories consider rewards and punishments as the basis for leadership actions.
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The theory emphasizes the realization of a desired outcome and result. The leaders motivate ✓ It reduces group synergy & collaboration.
the followers by way of a reward system, i.e., rewarding the performers and punishing the ✓ Group input is reduced dramatically.
non-performers. ✓ Authoritarian leadership increases employee turnover rate.
Participative/Democratic Leadership
VII. Transformational Leadership Theory Participative leadership styles are rooted in democratic theory. The essence is to involve
The Transformational Leadership theory, also known as Relationship theory focuses on the team members in the decision-making process. Team members thus feel included, engaged
relationship between the leaders and followers. This theory talks about the kind of leader and motivated to contribute. The leader will normally have the last word in the decision-
who is inspirational and charismatic, encouraging their followers to transform and become making processes. However, if there are disagreements within a group, it can be a time-
better at a task. consuming process to reach a consensus.
Advantages:
The transformational theory states that a leader is effective only if he can transform or ✓ It increases employee motivation and job satisfaction.
change the perceptions, behavior and expectations of the followers and direct them towards ✓ It encourages use of employee creativity.
a common goal which will lead to the accomplishment of the leader’s vision. ✓ A participative leadership style helps in the creation of a strong team.
✓ High level of productivity can be achieved.
Transformational leaders motivate and inspire through their enthusiasm and passion. They Disadvantages:
are a model for their teams, and they hold themselves to the same standard they expect of ✓ Decision-making processes become time-consuming.
others. ✓ Leaders have a high probability of being apologetic to employees.
✓ Communication failures can sometimes happen.
LEADERSHIP STYLES ✓ Security issues can arise because of transparency in information sharing.
✓ Poor decisions can be made if the employees are unskilled.
A leadership style refers to a leader’s methods and behaviors when directing, motivating, and
Bureaucratic Leadership
managing others. A person’s leadership style also determines how they strategize and
Bureaucratic leaders go by the books. Here the leaders strictly adhere to the organizational
implement plans while accounting for the expectations of stakeholders and the wellbeing of
rules and policies. It relies on a clear chain of command, strict regulations, and conformation
their team. by its followers. Employees under this leadership style might not feel as controlled as they
Authoritarian/Autocratic Leadership would under autocratic leadership, but there is still a lack of freedom in how much people
In this style of leadership, a leader has complete command and hold over their are able to do in their roles. This can quickly shut down innovation.
employees/team. The team cannot put forward their views even if they are best for the Laissez-Faire/Delegative leadership
team’s or organizational interests. They cannot criticize or question the leader’s way of The French term "laissez-faire" literally translates to "let them do," and leaders who embrace
it afford nearly all authority to their employees. The style focuses on delegating initiative to
getting things done. A one-person show can turn out to be successful in situations when a
team members. This can be a successful strategy if team members are competent, take
leader is the most knowledgeable in the team. Although this is an efficient strategy in time-
responsibility and prefer engaging in individual work. However, disagreements among the
constrained periods, creativity will be sacrificed since input from the team is limited. The members may split and divide a group, leading to poor motivation and low morale.
authoritarian leadership style is also used when team members need clear guidelines. Advantages:
Advantages: ✓ Experienced employees can take advantage of their competence and experience.
✓ Time spent on making crucial decisions can be reduced. ✓ Innovation & creativity is highly valued.
✓ Chain of command can be clearly emphasized. ✓ Delegative leadership creates a positive work environment.
✓ Mistakes in the implementation of plans can be reduced. Disadvantages:
✓ Using authoritarian leadership style creates consistent results. ✓ Command responsibility is not properly defined.
Disadvantages: ✓ Delegative leadership creates difficulty in adapting to change.
✓ A very strict leadership style can sometimes lead to employee rebellion. ✓ May demonstrate failure on the part of the leader
✓ It kills employee creativity and innovation.
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Transactional leadership Characteristics of a Transformational Leader
A leadership style whereby the objectives and goals are predefined and the leader uses Psychologist Ronald E. Riggio identifies four elements of transformational leaders:
reward and punishment to motivate his followers. Transactional leadership promotes i. Idealized influence: Leaders hold, share and demonstrate core values and trust.
compliance with existing organizational goals and performance expectations through ii. Inspirational motivation: Leaders motivate workers by conveying confidence and a
supervision and the use of rewards and punishments. Transactional leaders are task- and sense of purpose.
outcome-oriented. iii. Individualized consideration: Leaders are concerned with people’s feelings and needs.
The transactional leadership style views the leader-follower relationship as a transaction. By iv. Intellectual stimulation: Leaders provide opportunities for creativity and innovation and
accepting a position as a member of the group, the individual has agreed to obey the leader. allow people to learn, grow and try new things.
In most situations, this involves the employer-employee relationship, and the transaction Advantages:
focuses on the follower completing required tasks in exchange for monetary compensation. ✓ It leads to a lower employee turnover rate.
Advantages: ✓ Transformational leadership places high value on corporate vision.
✓ Leaders create specific, measurable and time-bound goals that are achievable for ✓ High morale of employees is often experienced.
employees. ✓ It uses motivation and inspiration to gain the support of employees.
✓ Employee motivation and productivity is increased. ✓ It is not a coercive approach to leadership.
✓ Transactional leadership eliminates or minimizes confusion in the chain of ✓ It places high value on relationships.
command. Disadvantages:
✓ It creates a system that is easy to implement for leaders and easy to follow by ✓ Leaders can deceive employees.
employees. ✓ Consistent motivation and constant feedback may be required.
✓ Employees can choose reward systems. ✓ Tasks can’t be pushed through without the agreement of employees.
Disadvantages: ✓ Transformational leadership can sometimes lead to the deviation of protocols and
✓ Innovation & creativity is minimized. regulations.
✓ Empathy is not valued.
✓ Transactional leadership creates more followers than leaders among employees. Differences between transactional leadership and transformational leadership
Transactional leadership is primarily based on processes and control, and requires a strict
Transformational Leadership management structure. Transformational leadership, on the other hand, focuses on inspiring
In transformational leadership style, the leader inspires his or her followers with a vision and others to follow, and it requires a high degree of coordination, communication, and
then encourages and empowers them to achieve it. The leader also serves as a role model for cooperation.
the vision. The difference can be summed up as follows: transactional leadership looks at how to get
Transformational leadership focuses on increasing employee motivation and engagement things done, and transformation leadership looks at how to motivate people to do things.
and attempts to link employees’ sense of self with organizational values. This leadership style Comparison
emphasizes leading by example, so followers can identify with the leader’s vision and values. Transactional and transformational leadership exhibit five key differences:
A transformational approach focuses on individual strengths and weaknesses of employees
and on enhancing their capabilities and their commitment to organizational goals, often by i. Transactional leadership reacts to problems as they arise, whereas transformational
seeking their buy-in for decisions. leadership is more likely to address issues before they become problematic.
ii. Transactional leaders work within existing an organizational culture, while
Transformational leaders are able to motivate and inspire followers and to direct positive transformational leaders emphasize new ideas and thereby “transform” organizational
changes in groups. These leaders tend to be emotionally intelligent, energetic, and culture.
passionate. They are not only committed to helping the organization achieve its goals, but
also to helping group members fulfill their potential.

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iii. Transactional leaders reward and punish in traditional ways according to organizational CAUSES OF CONFLICTS
standards; transformational leaders attempt to achieve positive results from employees A number of factors contribute to conflict. They include:
by keeping them invested in projects, leading to an internal, high-order reward system. a. Task interdependence - An individual or work unit is heavily dependent on another.
iv. Transactional leaders appeal to the self-interest of employees who seek out rewards for b. Scarce resources - Possibilities for conflict expand when there are limited resources,
themselves, in contrast to transformational leaders, who appeal to group interests and such as office space, equipment, training, human resources, operating funds, and pay
notions of organizational success. allocations.
v. Transactional leadership is more akin to the common notions of management, whereas c. Goal incompatibility - Out of necessity, organization members frequently pursue goals
transformational leadership adheres more closely to what is informally referred to as that are somewhat different from another, setting the stage for potential conflicts.
leadership. d. Communication failures- Breakdowns in communication due to distortions or lack of
communication often lead to conflicts.
CONFLICT MANAGEMENT e. Individual differences-Differences in personality, experience, and values make frequent
Conflict is antagonism and disagreement within and between individuals, groups or conflicts likely.
organizations. f. Poorly designed reward systems-Reward systems can easily lead to destructive conflict
when they reward the competition in situations that require cooperation for success.
POSITIVE CONSEQUENCES OF CONFLICT g. Poor or inadequate organizational structure- Lack of clarity in roles and responsibilities.
1. It is a major stimulant for change: Conflicts help to identify situations that demand h. Lack of teamwork
attention and must be resolved.
2. Group think is avoided: When people work together for a long time, they develop a REDUCING AND RESOLVING CONFLICTS
common way of thinking and doing things. When group think develops making rational Managers can use a number of methods to resolve or reduce conflict. Such efforts are
decisions based on fact becomes very difficult. typically aimed at minimizing the destructive impact of conflict. They include:
3. It encourages creativity and innovation: A climate of challenge compels individuals to Avoidance
think through their own ideas before applying them. Confrontation makes people put It involves ignoring or suppressing a conflict in the hope that it will either go away or not
forward more imaginative ideas. become too disruptive. It is best:
4. Cohesion and satisfaction: Cohesion and satisfaction drives group members closer ✓ When an issue is trivial, or more important issues are pressing
together. They have common enemies and challenges. ✓ When you perceive no chance of satisfying your concerns
5. A minimum level of conflict is optimal: It is necessary for the internal stability of the ✓ When potential disruption outweighs the benefits of resolution
organization e.g.; individuals reduce accumulated ill feelings between them. ✓ To let people, cool down and regain perspective
6. Motivates employees by making work more interesting Disadvantages:
✓ It does not remove the root cause of the conflict.
NEGATIVE CONSEQUENCES OF CONFLICT ✓ The conflict may escalate to unmanageable levels.
1. Conflicts are costly to manage and resolve. Accommodation
2. They can lead to inefficient use of resources. It focuses on solving conflicts by allowing the desires of the other party to prevail. Essentially,
3. Conflicts can cause organizational stability by lowering productivity the manager voluntarily lets the other party have his or her way rather than continue the
4. It creates stress in people by generating feelings of anxiety, guilt, frustration and conflict. It is best:
hostility. ✓ When you discover you are wrong.
5. It is a diversion of energy – the groups‟ time and effort is diverted towards resolving ✓ When the issues are more important to others than you
conflicts rather than achieving organizational goals. ✓ To build social contacts for the future
6. In extreme cases sabotage, secrecy and illegal activities occur. ✓ To minimize loss when you are outmatched and losing
7. It leads to lower job satisfaction ✓ When harmony and stability are especially important

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 ✓ To allow subordinates to develop by learning from mistakes ✓ To gain commitment by incorporating concerns into a consensus
Disadvantages: ✓ To work through feelings which have interfered with a relationship
✓ It temporarily solves the problem. Disadvantages:
✓ It might resurface again. ✓ It involves a lot of time and resources.
✓ It is not good for conflicts requiring quick solutions.
Competition
This involves attempting to win a conflict at the other party’s expense. In other words, one Force
party wins and the other loses. It is best suited: A manager compels one party to accept a certain solution. The party overruled has no option
✓ When quick, decisive action is needed e.g., emergencies but to accept situation.
✓ On important issues where unpopular actions need implementing e.g., cost cutting, Disadvantage
enforcing unpopular rules, discipline ✓ The root cause of the problem still exists.
✓ On issues vital to company welfare
✓ when you know you are right. Negotiation
✓ Against people who take advantage of non-competitive behavior. This is the process where mandated representatives of groups in a conflict situation meet
Disadvantage: together in order to resolve their differences and to reach agreement. It is a deliberate
✓ It might not remove the root cause of the conflict. process, conducted by representatives of groups, designed to reconcile differences and to
reach agreements by consensus. The outcome is often dependent on the power relationship
Compromise between the groups. Negotiations often involve compromise - one group may win one of
It aims to solve conflict issues by having each party give up some desired outcomes in order their demands and give in on another. In workplaces Unions and management representative
to get other desired outcomes. It involves bargaining by the conflicting parties and generally usually use negotiations to solve conflicts. Political and community groups also often use this
requires a situation that offers both parties the chance to be in a better position or at least in method.
no worse situation after the conflict is resolved. Each party wins some major issues and loses
others. It is best: Mediation
✓ When goals are important, but not worth the effort or potential disruption of more when negotiations fail or get stuck, parties often call in an independent mediator. This
assertive modes person or group will try to facilitate settlement of the conflict. The mediator plays an active
✓ When opponents with equal power are committed to mutually exclusive goals part in the process, advises both or all groups, acts as intermediary and suggests possible
✓ To achieve temporary settlements to complex issues solutions. In contrast to arbitration (see below) mediator’s act only in an advisory capacity -
✓ To arrive at expedient solutions under time pressure they have no decision-making powers and cannot impose a settlement on the conflicting
✓ As a back-up when collaboration or competition is unsuccessful parties.

Collaboration Arbitration
It tries to resolve conflicts by devising solutions that allow both parties to achieve their The appointment of an independent person to act as an adjudicator (or judge) in a dispute,
desired outcomes. The solution is such that both parties win at least their major issues. It to decide on the terms of a settlement. Both parties in a conflict have to agree about who
involves considerable creativity in developing solutions that suit the needs of both parties in the arbitrator should be, and that the decision of the arbitrator will be binding on them all.
the conflict. It is best: Arbitration differs from mediation and negotiation in that it does not promote the
✓ In order to find an integrative solution when both sets of concerns are too continuation of collective bargaining: the arbitrator listens to and investigates the demands
important to be compromised and counter- demands and takes over the role of decision-maker. People or organizations
✓ When your objective is to learn can agree on having either a single arbitrator or a panel of arbitrators whom they respect
✓ To merge insights from people with different perspectives and whose decision they will accept as final, in order to resolve the conflict.

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