Management & Leadership

1. Training — Quick Recap (end of last chapter)

Impact of training (board list)

1. Motivation ↑ → chances of growth / better job opportunities; sense of achievement → ties to David McClelland's theory
2. Efficiency & productivity ↑
3. Quality ↑ and effective customer service
4. Chances of errors ↓
5. Arrival of new skills and techniques
6. Multi-skilling can be achieved
7. Development & encouragement of intrapreneurship
8. Cost (training is a cost to the business)
9. Poaching → headhunting → rivals take away upper-level staff you trained

2. What is Leadership?

Key idea: Leadership is a ROLE! — it is not a post / designation / job. You never see a vacancy “we are hiring a leader”. Many people play the role according to the situation.

Leaders are everywhere: cricket team → captain · community → head · family → head of family · business → manager/supervisor.

Keywords: art · ability · quality · motivate · convince · influence. Like "entrepreneur": factors of production + financial risk beat vague "resources" + "risk" — use the precise key term.

Why 3 different words (art/ability/quality)? Leadership theories differ and all are right:

• Born leaders — born with the right traits & qualities
• Situation / circumstances make a person an effective leader
• Adoption — learn qualities + skills ⇒ you can become a leader

The three keywords explained

• Motivate → encourage. A driving force that makes you act (e.g. passion for cricket vs. fame/money). Leader shows a vision / long-term picture: study → good result → good college → good job. Both groups are motivated, but their driving force differs.
• Influence → charisma / aura. The charm & personality of the leader — people don't say no ("charismatic leadership").
• Convince → power. Subordinates obey because the manager has power / authority of the position; if they don't, he can dismiss them.

3. Leadership Positions in an Org Structure

4. Styles of Leadership / Management

Why different styles? Situations in an org are never the same ⇒ Contingency approach = Situational approach = “it depends!”

• Not a panadol solution / not one-size-fits-all (panadol won't work for a heart or cancer patient). A style that works in one scenario is not guaranteed next time.
• Crisis → one style; plenty of time to decide → another style.
• So the manager's personality must be versatile (= variety). A manager without the knowledge/skill to adopt the right style ⇒ org cannot succeed.

1. Autocratic / Authoritarian style

• “Tell” approach: manager passes orders / commands → what to do? how to do? when to do? Employees accept — no feedback (telling ≠ asking).
• Seen in armed forces / law-enforcement: lower ranks wait for commands from the top.
• Also called the hands-on approach = close supervision.

Suitability:

1. Emergency / crisis management / risk ↑ — e.g. fire: follow the evacuation plan, no time to discuss; top managers are skilled & experienced, staff may decide wrongly
2. Insufficient time to decide
3. Inexperienced / immature / unskilled target audience — they cannot decide on their own

2. Democratic style

Word: democratic ← democracy = freedom to participate (vote, elect). Manager uses the consultancy approach (like a doctor/consultant who asks before diagnosing).

• Manager discusses issues, problems, ideas → employees give feedback (views, opinions, ideas).
• Two-way communication (downward + upward).
• Motivation / cooperation / participation ↑.
• Decision-making on a voting basis (not centralized, not decentralized): best opinion/idea — from manager or employees — gets implemented.

Suitability:

1. Problem-solving / generating ideas — workers know the real problems of the production line (like a teacher knows the classroom issues, not the management); e.g. marketing dept ideas for a new campaign
2. Enough time to make a decision (discuss, consider feedback, pick the best)
3. Skilled / experienced / mature target audience — valuable feedback possible

3. Laissez-faire style

• Used only when leading highly skilled employees / experts / specialists (auditors/CAs, pilots, surgeons, scientists) — you don't tell them how to do their job.
• Lenient supervision — management only states code of conduct, rules & regulations, boundaries, targets; staff do the rest. Empower!
• Arm-leg: management and employees are like hand and foot — each has its own function, no intervening (intervention only delays work, e.g. scientists researching a new medicine).

Suitability:

1. Leading a group of experts (the 1st condition — only possible then)
2. Need for innovation — empowered experts use their own techniques & methods
3. When no SOPs / protocols need to be followed.

4. Paternalistic style — “father-like”

Paternal = father's side (paternal grandparents) ⇒ father-like style of leadership.

• Manager uses consultancy + discusses issues → employees give feedback → looks like two-way communication (as in democratic).
• BUT in the end the manager will do whatever he wants to! (“suno sabki, karo apni”; “I know best — that's why I'm the manager”).

Motivation: short-term ↑ (employees feel respected — "my opinion was asked") → long-term ↓ (opinions never implemented ⇒ morale falls). Like a friend who asks your advice but always does his own thing.

Suitability:

1. When the manager wants to assess the potential of new employees — discuss problems/ideas, judge how valuable their feedback is
2. To check the reaction / responses before a big change (relocation, new technology): "throw the idea" first. (Like desi families sounding out a daughter about marriage before deciding.)

Styles compared

5. Factors Influencing the Leadership Style

Don't choose a style randomly — like entering a new market, research & consider factors first. Wrong style ⇒ things don't get done ⇒ objectives missed.

6. Douglas McGregor — Theory X & Theory Y

Analogy: wear yellow shades ⇒ everything looks yellow, but it's your view. Example: two partners run a firm of 30 staff (monthly payroll Rs 55 lakh). Partner 1 inspects everyone daily ("they only work for money, need commands"); Partner 2 visits rarely, lenient supervision ("they're skilled & responsible, they hate being controlled"). Same staff — different mindsets.

Theory Y ≠ "money doesn't matter": money is the basic need (why they work) but not the only thing.

7. Management

Everyone has met "management" — school/college management hires teachers, controls students & teachers' performance, schedules timetables, runs events. Without it nothing is organised.

Levels of management

• Senior = BoD (CEO, HR/finance/marketing/operations directors) — strategists; long-term growth & big strategic decisions.
• Middle = HODs / functional managers — departmental responsibilities (HR mgr: recruitment & workforce plan; marketing mgr: budget & marketing plan).
• Junior = subordinates/supervisors working directly under managers (training officer, recruitment head, appraisal officer; quality inspector under production manager).
• Accountability: junior → middle → senior; BoD → shareholders (they bought shares in a PLC and vote the board in at the AGM; progress & performance reported to them).

8. Two Management Gurus

Old vs modern school = thought process (like grandparents vs Gen Z): situations changed, so thinking changed — as in advertising: TV/newspaper ads → social media, sponsored ads, PR & celebrity collaborations.

9. Fayol's 5 Functions of Management

Management performs functions efficiently & effectively or the org cannot reach its objectives: ① Planning ② Organising ③ Coordinating ④ Staffing ⑤ Controlling

① Planning — first and most important function

• “Everything starts with a plan”; other functions depend on it.
• Senior management sets objectives → makes strategy: what to achieve? · how to achieve?
• Calculates estimated cost (investment needed) and revenue (returns).
• Highlights issues / problems during the strategy (competition, legal barriers, economic conditions, customer resistance) ⇒ minimises risk.

Contingency planning → "Plan B"

Road-block analogy: you don't go home, you take an alternate route — destination (objective) unchanged, route (strategy) changed.

② Organising

• After plan & strategy, resources are required to follow the strategy → management gathers / arranges / organises them.
• Human resources (labour, skills) + non-human resources (technology, finance/capital).
• e.g. Pakistan entry: finance dept arranges money (shares, bank loan); HR builds local structure & hires locals.

③ Coordinating → become the bridge

Different departments (HR, Finance, Marketing, Operations/Production) are needed together — management is the bridge between them. Example: car maker developing electric vehicles (new product development):

1. Marketing researches & generates the idea (internal/external sources)
2. Production/Operations gives it a physical existence — but asks Finance for money…
3. …and HR for workforce & skills (teamwork)
4. After the product: marketing again — advertising, promotion, campaigns for sales

④ Staffing

Three parts: (i) assign tasks — orders & commands (principal: "prepare the exam paper"); (ii) directing — how to do it, by when (time, marks, # questions); (iii) motivating when workers are low / productivity falls — reward system: financial (bonus, commission, increment) & non-financial (appreciation, promotion).

⑤ Controlling

Controlling = monitor → analyse → evaluate performance (like a school report card: behaviour, attendance, class performance, marks).

3 reports prepared at this stage: ① Financial reports (income statement & balance sheet — profit, expenses, revenue, worth) · ② Corporate social reports (CSR: environment, pollution cut, jobs created, welfare) · ③ Employee performance reports (regularity, punctuality, targets, standards, productivity → who is a performer / under-performer).

10. Mintzberg's 10 Managerial Roles

The manager has to wear different "jackets / heads" depending on the situation — so personality must be versatile (like an actor playing lead or villain) with a variety of skills.

Why grouped? Interpersonal roles (1–3) depend on interpersonal ability — not everyone has the charisma/aura. Informational roles (4–6) involve receiving & transmitting information. Decisional roles (7–10) involve decision-making.

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