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LEADERSHIP
MEANING
Leadership is an important aspect of managing. Leadership is defined
as "Influence, that is, the art or process of influencing people so that
they will strive willingly and enthusiastically towards the achievement of
group goals". (Koontz and Weihrich) In other words, people should be
encouraged to develop not only willingness to work but also willingness
to work with zealand confidence.
"The will to do is triggered by leadership and lukewarm desires for
achievements are transformed into burning passion for successive
accomplishment by the skilful use of leadership" (George R Terry).
"Leadership is the lifting of man's visions to higher sights, the raising of
man's performance to a higher standard, the building of man's personality
be-yond its normal limitation". (Peter Drucker) "Leadership is the ability to
secure desirable actions from a group of followers voluntarily without the
use of coercion." (Alford and Beatty) "Leadership is the ability to persuade
others to seek defined objectives enthusiastically. It is the human factor
which binds a grouptogether and motivates it towards goals". (Keith
Davis)
Trait is basically a character and early notions about leadership dealt with
personal abilities. It was believed thatsome people have leadership
qualities by birth or god's gift. The traits that associate with leadership are
identified as: mental and physical energy, emotional stability, knowledge of
human relations, empathy, objectivity, personal motivation, communication
skills, teaching ability,social skills, technical competence, friendliness and
affection, integrity and faith, intelligence etc. This approach has several
drawbacks: It failed to identify right traits required for effective leadership. It
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is difficult to associate the traits with jobs to be carried out. A leader who is
successful in one area may be a failure in different area.
Since these are subjective, it is difficult to measure theireffectiveness
quantitatively. This approach implies that leadership is in-built quality
and no training can make aperson leader.
status quo and believes in doing things right, according to the rules, to
cope with complexity.
It should be noted that in today's changing business environment,
notwithstanding the above difference, evenmanagers are in leadership
roles. Therefore, in this chapter, the terms 'leaders' and managers' are
used interchangeably.
CHARACTERISTICS OF LEADERSHIP
Some important characteristics of leadership are asfollows.
1. Leadership implies the existence of followers
We appraise the quality of a person's leadership in practice by studying
his followers. We ask: How many andwhat kind of followers does he
have? How strong is their commitment as a result of his leadership? How
long will their commitment last? By answering questions of this nature we
get to know the quality of leadership. We must not, however, forget that
leaders within organizations are also followers. The supervisor works for a
branch head, who works for a division manager, who works for the vice-
president of a department and so on. Thus, in formal organizations of
several levels, a leader has to be able to wear both hats gracefully, to be
able to relate himself bothupward and downward.
2. Leadership involves a community of interestbetween the
leader and his followers
In other words, the objectives of both the leader and his men are one and
the same. If the leader strives for one purpose and his team of workers
for some other purpose, it is no leadership. In the words of G.R. Terry,
"Leadershipis the activity of influencing people to strive willingly for
mutual objectives."
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Behavioral approach
Several studies have been made did not agree as to whichtraits are
leadership traits or their relationship to actual instances of leadership. It is
found that most of these so called traits are really pattern of behavior.
There are several theories based on leadership behavior and styles.
Some of them are:
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the person who does not take action without the concurrence
of subordinates and who makes decisions butconsults with
subordinates before doing so.
The third type is "free-rein" leader who uses his power very little
and gives a high degree of independence to his subordinates to
carry out theirwork. Such leaders depend largely on subordinatesto
set their own goals and the means to achieve.
Figure below shows the flow of influence in the threesituations of
leadership.
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TECHNOLOGICAL INNOVATION MANAGEMENT AND ENTREPRENEURSHIP
CO-ORDINATION
MEANING
Meaning
To Uncover Deviations
Once a business organization is set into motion towards its specific
objectives, events occur that tend to pull it "offtarget". Major events
which tend to pull an organization "off target" are as follows:
Change
Change is an integral part of almost any organization’s environment.
Markets shift, new products emerge, new materials are discovered and
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STEPS IN CONTROLLING
The various steps that are involved in the process ofcontrolling are
as follows:
Step 1:
Setting of standards
The first step in the control process is to establish standards.
Standards are the targets against which actual performance will be
compared. Standards arenothing but criteria of performance. They
serve as benchmarks as they specify acceptable levels of
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Step 2:
Measurement of actual performance
The second step in the control process is to measure actual
performances of various individuals, teams and departments in the
background of established standards. Wherever quantitative
measurement is applicable, it is easy to measure, while qualitative
standards are difficult to measure. Tests, surveys, employee
appraisals, exit interviews, media reports, open forums etc., are some
of the ways employed to measure qualitative standards.
SOCIAL RESPONSIBILITY
external forces.
Business enterprises have responsibility towards
1.Towards the Consumer and the Community 2.Towards Employees and
Workers
3.Towards Shareholders and Other Businesses 4.Towards the
government
A businessman's social responsibilities to each of these parties are briefly
enumerated below.
Towards the Consumer and the Community
1. Production of cheap and better-quality goods and services by
developing new skills, innovations and techniques, by locating factories
and markets at proper places and by rationalizing the use of capital
and labor.
2. Levelling out seasonal variations in employment and production
through accurate forecasts, production scheduling and product
diversification.
3. Deciding priorities of production in the country's interest and
conserving natural resources.
4. Providing for social audit (see section below).
5. Honoring contracts and following honest trade practices. Some
important but dishonest trade practices are: making misleading
advisements calculated to deceive the purchaser: misbranding of
articles with respect to their material. impediments, quality, origin, etc.;
selling rebuilt or secondhand goods as new; procuring business or
trade secrets of competitors by espionage, bribery or other means:
restraining free and fair competition by entering into combination
agreements; using containers that do not give a correct idea of the
weight and quantity of a product; making false claims of being an
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BENEFITS
1. It supplies data for comparison with the organization’s social policies
and standards. The management can determine how well it is living up
to its social objectives.
2. It develops a sense of social awareness among all employees. In the
process of preparing reports and responding to evaluations, employees
become more aware of the social implications of their actions.
3. It provides data for comparing the effectiveness of different types of
programmes.
4. It provides data about the cost of social programmes, so that the
management can relate this data to budgets, available resources,
company objectives, etc.
5. It provides information for effective response to external groups which
make demands on the organization.
LIMITATIONS
A social audit is a process audit rather than an audit of results. This
means that a social audit determines only what an organization is
doing in social areas and not the amount of social good that results
from these activities. An audit of social results is not made because:
1. They are difficult to measure. If. for example, following a company's
S.C./S.T. employment programme in a certain region. there is a fall in
the violent crime rate by
4 per cent, it is difficult to measure how much of the benefit is caused by
this programme.
2. Their classification under "good" or "bad" is not universally accepted. In
other words, the same social result may be classed as "good"
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and the local community. The Committee in its report praised TISCO's
social welfare work and made a number of suggestions to improve its
programmes.
becomes his only choice to achieve the company's goal. This has
prompted many major business houses, to teach executives the
importance of remaining true to their convictions, whether rooted in
organized religion or personal morality, amid the conflicting demands
and temptations they confront when taking decisions. New approaches
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CORPORATE GOVERNANCE
management.
• Audit partners should be rotated and there should be fuller disclosure
of non- audit work.
This is a voluntary code and has only some moral pressure of the London
Stock Exchange requiring companies to mention in their annual report
whether they are following the code, and if not, why.