Chapter 4_Directing and Controlling
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Transcript of Chapter 4_Directing and Controlling
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Leading and Controlling
Chapter 4
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1. Directing
2. Leadership
3.
Communication4. Controlling
Presentation Outline
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Directing
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Directing is also called management in action.
Concerned with the influencing , guiding, supervising and
inspiring subordinates in planned manner.
Directing
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According to Urwick and Beach," Directing is the
guidance, the inspiration, the leadership of those men
and women that constitutes the real core of theresponsibility of management
According to Koontz and ODonnell, Directing is a
complex function that includes all those activities whichare designed to encourage subordinates to work
effectively and efficiently in both the short and long
run.
Directing
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Process of directing involves the following elements
- Issuing orders and instructions to subordinates
- Guiding, counseling and educating the subordinates- Supervising the work being performed
- Maintaining discipline and rewarding those who perform
efficiently- Motivating and inspiring the subordinates
Directing
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It is an initiating function
It is a continuous process
Directing function is performed by all managers at
every level of organization
Time and effort spent for directing tend to increase as
one moves down the line of authority
Nature ofDirecting
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Directing is a result or action oriented process.
It connects planning, organizing and staffing with
controlling process.
It involves giving an order
Nature ofDirecting
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Directing helps in achieving coordination
It is means of motivation
Directing supplements other managerial functions
Directing helps in coping with changing environment
Directing facilitates order and discipline among
employees
Need and importance of directing
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Leadership
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OUR NATIONAL LEADERS
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Manager Leader
Administers InnovatesA copy An originalMaintains Develops
Focuses on systems & structure Focuses on peopleRelies on control Inspires trust
Short-range view Long-range perspective
Asks how & when Asks what & why
Eye on the bottom line Eye on the horizonImitates OriginatesAccepts the status quo Challenges the status quo
Classic good soldier Own person
Does things right Does the right thing
Characteristics ofManagers Versus Leader
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Leadership is an influence, the art or process ofinfluencing people so that they will strive willingly &
enthusiastically toward the achievement of group goals.
Leadership
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Leadership is not magnetic personalitythat can just as well be a glib
tongue. It is not "making friends and influencing people"that is
flattery. Leadership is lifting a person's vision to higher sights, the
raising of a person's performance to a higher standard, the building ofa personality beyond its normal limitations. .. Peter F. Drucker
Good leaders make people feel that they're at the very heart of things,
not at the periphery. Everyone feels that he or she makes a difference
to the success of the organization. When that happens people feel
centered and that gives their work meaning. Warren Bennis
Leadership and learning are indispensable to each other.
John F. Kennedy
QUOTES ON LEADERSHIP
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Visionary: Communicate AVision, Purposes, Values & Aspirations
Creative: Leadership Required Imagination And Creativity
Passionate: Must Be Problem Solvers And Integrators
Trustworthy: Establishing Trusting Relationship In A Team
Competent: Technical Expertise And Knowledge
Knowledgeable: Must Be Systems Oriented
12QUALITIES OF A GOOD LEADER
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Teacher: Leaders Create Space for Others to Lead
Inclusive: Leaders are Open to New Ideas and Opinions
Collaborative: Establish Collaborative Decision Making Processes ina Setting
Flexible: Responsive to the Face of Change & Peoples Needs
Culturally Global Perspective
Sensitive:
Continuous Leaders Always Are Seeking New Ways to Grow
Learner:
12QUALITIES OF A GOOD LEADER
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Leadership Qualities Needed for Technical
Domains
1. BUSINESS LITERACY
Software operations leaders who are now technology-oriented must
increasingly see themselves as business leaders i.e., To be business
literate
2. TECHNOLOGY VISION
To help their companies compete, leaders of software operations must
establish a compelling, long-range vision for technology investments.
Visionary leaders .
3. CROSS-FUNCTIONAL ORIENTATION
The world of rigid, functional "silos" in most organizations is gone forever.
Software operations leaders must become adept at working with people
performing various functions across the enterprise, including those in
marketing, customer support sales, and so on.
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Leadership Qualities Needed for Technical
Domains
4. STRATEGIC PARTNERSHIP MANAGEMENT
The need for organizations to establish partnerships and alliances for
sharing technologies and developing new products will continue to
increase. Managers of software operations will be required to develop
partnership strategies and manage them for success.
5. CUSTOMER RELATIONS
With the move to a competitive, profit-oriented business model in
software, leaders must increasingly interact directly and at higher
executive levels with both prospective and existing customers.
6. TOTAL QUALITY DISCIPLINE
Two factors have increased the urgency of quality improvement at all
levels in the software industry: rapidly growing financial investment in
software systems and products, and the institution of international
software quality standards.
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Leadership Qualities Needed for Technical
Domains
7. MARKET DECISIVENESS
Although time-to-market has always been a critical success factor for any
high-technology business, it has become a matter of survival for software
enterprises. In an increasingly competitive market, this "need for speed"
is placing increasing pressure on leaders to accelerate the development
and delivery of new products and services.
8. TECHNICAL TEAMWORK
Most high-technology organizations are moving toward flatter, team-
based work structures. This makes team communication, problem solving,
and decisiveness critical; software leaders must both model and reinforce
these behaviors.
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Leadership Qualities Needed for Technical
Domains
9. KNOWLEDGE DEVELOPMENT
Because software is almost exclusively a "knowledge business," software
operations are competitive to the extent that they can attract, retain,
and develop the best technical and marketing talent. Thus, leaders mustprovide development opportunities that will ensure the continued
professional and career growth of individuals and add to the
organization's overall knowledge store. I
10. LE
ADERSHI
P VERS
ATILITY
Software development is getting more diverse and complex on many levels-
business, organizational, cultural, and technological. Managers must
become versatile to lead effectively across different business models and
work settings.
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Leadership: is not ordering other people to follow.
Leadership: is not ignoring the views of other people.
Leadership: is not just a charismatic effect on other people.
Leadership: is not making more profit than the other guy.
Leadership: is situational, and requires the study of alternates.
Leadership: makes happen what other people miss,ideas.
Leadership: needs practice & learning.
Leadership: requires great listening and facilitation.
Leadership
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1) TECHNICAL SKILL:( INVOLVES THINGS)
Refers to persons knowledge of and ability in any type of
process or technique.
2) HUMAN SKILL (CONCERNS PEOPLE)
It is the ability to work effectively with people and to build
team work.
3) CONCEPTUAL SKILL(DEALS WITH IDEAS)
It is the ability to think in terms of modules, frameworks and
broad relationships such as long-range plans.
Types of Skills used by Leaders
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Be gentle and you can be bold; be frugal and you can be liberal; avoid
putting yourself before others and you can become a leader among
men.
- Lao Tzu
1. Positive and Negative Leaders
2. Autocratic, participative and Free-rein Leaders
Behavioral Approaches to Leadership Style
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Depends on the ways leaders approach people to motivate them.
When emphasis is placed on rewards-economic or otherwise-
Positive leadership.
- Positive leadership generally results in higher job satisfaction and
performance.
When emphasis is placed on penalties - Negative leadership.
- It may get acceptable peformance but has high human costs.
1)Positive and Negative Leaders:
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AUTOCRATIC LEADERS
Centralize power and decision making in themselves.
Leaders take full authority and assume full responsibility.
It is negative based on threat and punishments.Advantages:
It is satisfying for leaders.
permits quick decisions .
allows the use of less competent subordinates and provide security and
structure for employees.
Disadvantages:
Employees dislike it as it may create fear and frustration.
Generate strong organizational commitment among employees that
leads to low turnover and absenteeism rates.
2) Autocratic, Participative and Free-rein
Leaders:
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The only test of leadership is that somebody follows.- Robert K. Greenleaf
THE FLOW OF INFLUENCE WITH THREE
LEADERSHIP STYLES
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AUTOCRATIC LEADER
FOLLOWER
FOLLOWER
FOLLOWER
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DEMOCRATIC ORPARTICIPATIVE LEADER
FOLLOWER FOLLOWER FOLLOWER
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FREE-REIN LEADER
FOLLOWER FOLLOWER FOLLOWER
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Style is related to ones model of organizational behavior.
Autocratic model -> tends to produce a negative style.
Custodial model -> somewhat positive.
Supportive and collegial models -> clearly positive.
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1.Ohio State Studies.
2.University of Michigan Studies.
3.Managerial Grid.4.Scandivian.
The first responsibility of a leader is to define reality. The last
is to say thank you.
- Max DePree (The Art of Leadership)
Behavioral theories of Leadership
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A) Initiating structure:-The extent to which a leader is likely to
define and structure his or her role and roles of subordinates in
the search of goal attainment.
B) Consideration:-The extent to which a leader is likely to have job
relationships characterized by mutual trust,respect for
subordinates ideas and regard for their feelings.
1.OHIO State Studies
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A) Employee oriented :- One who emphasizes interpersonal
relations.
B) Production oriented leader :- One who emphasizes technical ortask aspects of the job.
2.University of Michigan Studies
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Tool used by managers for identifying their style.
Highlights multiple dimensions of leadership with respect to
concern for people and concern for production.
The grid clarifies,on two 9-point scales,how the two dimensions
are related.
3. Managerial Grid
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1,9 9,9
5,5
1,1 9,1
CONCERN FOR TASK
CONCE
RN
FOR
PEOPLE
Managerial Grid
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(1,9) - least concern for task and utmost concern for
people.
(9,1) - least concern for people and utmost concern fortask.
(1,1) - least concern for people and least concern for task.
(5,5) - equal concern for task and people.
(9,9) - highest concern for both people and task .
ReferPrevious Slide
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DEVELOPMENT-ORIENTED LEADER
One who values experimentation,seeking new ideas, and
generating and implementing change.
4. Scandinavian
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(i) Consideration (employee orientation)
considerate leaders are concerned about the human needs
of their employees.
try to build teamwork,provide psychological support, and help
employees with their problems.
(ii) Structure (task orientation)
believe in getting results by keeping people constantlybusy,ignoring personal issues and emotion and urging them to
produce.
Use of Consideration and Structure by
Leaders
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CONTINGENCY APPROACHES TO
LEADERSHP STYLE
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The theory that effective groups depend upon a proper match
between a leaders style of interacting with subordinates and the
degree to which the situation gives control and influence to the
leader.
1. Fielder Model
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Leader-member relations:
The degree of confidence,trust,and respect subordinates have in
their leader.
Task structure:
The degree to which job assignments are procedurized.
Leader position power:
Describes the organizational power that goes with the position the
leader occupies.
Leaders Effectiveness
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Focuses on Followers Readiness.
Followers in Leadership effectiveness reflects the
reality that it is the followers who accept or reject the
leader.
Readiness refers to the extent to which people have
the ability an willingness to accomplish a specific task.
2. Hersey and Blanchards Situational
Theory
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Leaders create in-groups and out-groups .
And subordinates with in-groups status will have
higher-performance ratings,less runover.
And greater satisfaction with their superior.
3. Leader Member Exchange Theory
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Personal CompatibilitySubordinate
Competence, and/orExtroverted personality
LEADER
IN-GROUPS OUT-GROUPS
SUB-A SUB-B SUB-C SUB-D
TRUSTHIGHINTERACTIONS
FORMALRELATIONS
Leader Member Exchange Theory
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The theory that a leaders behaviour is acceptable to
subordinates insofar as they view it as a source of
either immediate or future satisfaction.
4.Path Goal Theory
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Environmental contingency
factors
Task structure
Formal authority system
Work group
Leader behaviour
Directive
Achievement oriented
Participative
supportive
Subordinate contingency factors
Locus of control
Experience
Perceived ability
Outcomes
Performance
Satisfaction
Path goal theory
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A Leadership theory that provides a set of rules to
determine the form and amount of participative
decision making in different situation.
5. LeaderParticipation Model
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NEOCHARISMATIC
LEADERSHIPTHEORIES
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Leadership theories that emphasizes symbolism
emotional appeal,and extraordinary follower commitment.
It includes the following :
1. CHARISMATIC LEADERSHIP.
2. TRANSFORMATIONAL LEADERSHIP.
3. VISIONARY LEADERSHIP.
Neocharismatic Theories
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Followers make attributions of heroic or extraordinary
abilities when they observe certain behaviors.
1. Charismatic Leadership
Leaders who provide individualized consideration and
intellectual stimulation and who possess charisma.
2. Transformational Leadership
3. Visionary Leadership The ability to create and articulate a realistic, credible,
attractive vision of the future for an organization ororganizational unit that grows out of and improves upon thepresent.
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EMOTIONAL LEADERSHIP.
TEAM LEADERSHIP.
MORAL LEADERSHIP.
CROSS CULTURAL LEADERSHIP.
Contemporary Issues in Leadership
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Self awareness : self-confidence ,realistic self-assessment,
self-deprecating sense of humour.
Self-management :trust worthiness & integrity, comfort
with ambiguity and openness to change.
Self-motivation : a strong to drive to achieve, optimism, and
high organizational commitment.
Empathy : expertise in building & retaining talent, cross
cultural sensitivity and service to client and customers.
Social skills: the ability to lead change efforts,
persuasiveness and expertise in building and leading teams.
1. Emotional Intelligence and Leadership
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Skills such as the patience to share information, to trust
others,to give up authority,and understanding when to
intervene.
Mastered the difficult balancing act of knowing when to
leave their teams alone and when to intercede.
Roles :
1.Team leaders are liasions with external constituencies.2. Team leaders are troubleshooters.
3. Team leaders are conflict managers.
4. Team leaders are coaches.
2. Team Leadership
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Ethical implications in leadership.
Ethical leaders are considered to use their charisma in a
socially constructive way to serve others.
3. Moral Leadership
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National culture is an important situational factor
determining which leadership style will be most effective.
National culture affects leadership style by way of thefollower . Leaders cannot choose their styles at will. They
are constrained by the cultural conditions that their
followers have come to expect.
4. Cross-cultural Leadership
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EMERGIN
G APP
ROACHESTO LEADERSHIP
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Substitute for leadership are factors that make leadership
role unnecessary through replacing with other sources.
Enhancers for leadership elements that amplify a leaders
impact on the employees.
Substitutes and Enhancers for Leadership
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Self leadership has two thrusts :
a) Leading oneself to perform naturally motivating tasks.
b) Managing oneself to do work that is required but not
naturally rewarding.
Super leadership begins with a set of positive beliefs about
workers.It requires practicing self leadership oneself and
modeling it for others to see.
Self-leadership and Super leadership
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Coaching means that the leader prepares, guides, and directs the
team, but does not play the game.
These leaders recognise that they are on the side lines not on the
plane field.
Their role is to select the right players to teach and develop
subordinates ,to be available for problem oriented consultation, to
review resource needs and to listen to inputs from employees.
Coaching
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Good leaders develop through a never-ending process of self-
study, education, training, and experience.
-Manual on military leadership
HOW TO BE A GOOD
LEADER ?
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Leadership: the art of getting someone else to do something
you want done because he wants to do it.
-Dwight D. Eisenhower
Human Behavior
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Introduction : Human nature is the common qualities of all
human beings. People behave according to certain principles of
human nature. These principles govern our behavior.
Human Behaviour
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1. Physiological - food, water, shelter, sex.
2. Safety - feel free from immediate danger.
3. Belongingness and love - belong to a group, close friends to confinewith.
4. Esteem - feeling of moving up in world, recognition, few doubtsabout self.
5. Cognitive - learning for learning alone, contribute knowledge.
6. Aesthetic - at peace, more curious about inner workings of all
7. Self-actualization know exactly who you are, where you are going,and what you want to accomplish. A state of well-being.
8. Self-transcendence - a trans egoic level that emphasizes visionaryintuition, altruism, and unity consciousness.
Maslow's Hierarchy ofNeeds
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Have better perceptions of reality and are comfortable with it.
Accept themselves and their own natures.
Their lack artificiality.
They focus on problems outside themselves and are concerned with
basic issues and eternal questions. They like privacy and tend to be detached.
Rely on their own development and continued growth.
Appreciate the basic pleasures of life (do not take blessings forgranted).
Have a deep feeling of kinship with others. Are deeply democratic and are not really aware of differences.
Have strong ethical and moral standards.
Are original and inventive, less constricted and fresher than others
Characteristics of self-actualizing people
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Leadership consists not in degrees of technique but in traits of
character; it requires moral rather than athletic or intellectual
effort, and it imposes on both leader and follower alike the
burdens of self restraint.
- Lewis H. Lapham
Key Traits of Successful Leaders
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Emotional stability.
Dominance.
Enthusiasm.
Conscientiousness.
Social boldness.
Tough-mindedness.
Self-assurance.
Key Traits of Successful Leaders
Compulsiveness.
High energy.
Intuitiveness.
Maturity.
Team orientation.
Empathy.
Charisma.
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THE LEADERSOF ALL TIMES
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ALEXANDER THE GREAT
Why Alexander should deserve to be called "the Great"?
Leadership
Alexander was surely not the first person in history who got this title. The
Persian King Cyrus the Great and the Egyptian Pharaoh Ramses the Great
went before him. But it is recorded that even in Antiquity the Roman
emperors already knew Alexander as "the Great".
The first clue is Alexander's leadership. Military experts still consider him
one of the most outstanding commanders ever. Arguably, there is no oneelse in history who could inspire and motivate his men like Alexander did.
Many explanations have been suggested: he suffered the same wounds as
his soldiers, he payed attention to every single man in the army and he
always led the attack in person. (Actually, he was the last great commander
in history to take this personal risk.)
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ALEXANDER THE GREAT
But apart from all that there must have been a deciding factor that we can
only marvel about: charisma. Alexander was the only individual whose
personal authority could hold his huge empire together. After his death it
almost immediately fell apart into competing kingdoms. In 332 BC, in Egypt,
the famous oracle of Siwa allegedly confirmed that Alexander had divine
origins and that the god Zeus (Ammon) was his true father. We do not
know how Alexander himself thought about his divinity, but it surely helped
him to boost the myth around his person.
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THE MAHATMA
Oct 2, 1869 to Jan 30, 1948
A Brief History of Mohandas K. Gandhi by Richard Attenborough
Mohandas K. Gandhi was born in 1869 to Hindu parents in the state of
Gujarat in Western India. He entered an arranged marriage with KasturbaiMakanji when both were 13 years old. His family later sent him to London to
study law, and in 1891 he was admitted to the Inner Temple, and called to
the bar. In Southern Africa he worked ceaselessly to improve the rights of
the immigrant Indians. It was there that he developed his creed of passive
resistance against injustice, satyagraha, meaning truth force, and was
frequently jailedasa result of theproteststhat he led. Before he returned
to India with hiswifeandchildren in 1915, he had radically changedthe lives
ofIndians living in Southern Africa.
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THE MAHATMA
Back in India, it was not long before he was taking the lead in the long
struggle for independence from Britain. He never wavered in his unshakable
belief in nonviolent protest and religious tolerance. When Muslim and Hindu
compatriots committed acts of violence, whether against the British who
ruled India, or against each other, he fasted until the fighting ceased.Independence, when it came in 1947, was not a military victory, but a triumph
of human will. To Gandhi's despair, however, the country was partitioned into
Hindu India and Muslim Pakistan. The last two months of his life were spent
trying to end the appalling violence which ensued, leading him to fast to the
brink of death, an act which finally quelled the riots. In January 1948, at theage of 79, he was killed by an assassin as he walked through a crowed garden
in New Delhi to take evening prayers. end of Attenborough's summary
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Communication
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Communication is defined as the process of passing information
and understanding from one person to another. It is essentially a
bridge of meaning between the people. By using the bridge a person
can safely cross the river of misunderstanding.
Communication
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Information
External
Internal
Advice (flows horizontally)
Suggestion (flows upwardly)
Order Written orders
Oral orders
Objectives of Communication
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Motivation
Persuasion
Warning
Negotiations (win-win approach)
Education
Objectives of Communication
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Sender
Encode Message Channel
Receive
Decode
Meaning
Decode asReceiver
MessageChannelEncode as
sender
Receiver
Communication Process
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Efficient working of the business
Communication failures are costly
Basis of managerial functions
Building human relations
Total Quality management
Zero-defect marketing and quality services
Job satisfaction and enrichment
Maintaining relations with external parties
Strategic management
Importance of Communication
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(1) One way communication and two way communication
(2) Verbal communication and Non-verbal communication
(3) Formal communication (Downward/upward/lateral) and
Informal communication
(4) Inter personal communication and Intra personal
communication
Forms of Communication
B i f C i ti
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Physical Barriers Noise, improper time, Distance inadequate or
overloaded information.
Organizational Barriers Organizational rules regulations, Hierarchical
Relationship, Non conducting of staff meeting,wrong choice of channel.
Psychological Barriers Selective perceptions, premature evaluation,
Different comprehension of reality, Attitude of
superiors, Attitude of sub-ordinates, poor
listening, egotism, emotions.
Semantic Barriers Different languages, Different context for words
and symbols, poor vocabulary.
Barriers of Communication
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Oral communication Written communication
Interviews
Meetings
Seminars
Conferences
Group Discussions
Audio-Visual Aids
Public speaking
Formal Reports
Technical proposalsBusiness correspondence
Notices, Agenda & Minutes
Hand books and manuals
Research papers and articles
Advertising and job description
Graphic aids
Utility of Communication
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Controlling
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Compelling Events to Conform to Plans
Controlling
Establish Performance Standards Planning
Measure Actual Performance
Compare Performance with Standards Measurementof Variance Feedback and Analysis
Corrective Action
Control Process
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Closed Loop
Automatic or cybernetic
Monitors or manages process by internal, self-regulating system
Essential feature is strong feedback system
Example: Home thermostat system
Control Process - Closed Loop vs. Open
Loop
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Feedback Control (Output)
Measures system output and variance with
predetermined standard
Adjusts system to maintain variance within a
specified range
Screening Control (Concurrent) Control applied concurrently with effort being
controlled
Timing of Control
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Feed Forward Control (Steering or Preliminary)
Attempts to predict the impact of current
actions/events
Current decisions are refined to facilitate goalattainment
Timing of Control
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Effective
Efficient
Timely
Flexible
Understandable
Tailored
Highlight deviations
Lead to corrective actions
Characteristics of Effective Control Systems
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Financial
Human Resource
Social
Three Types of Control
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Income Statement
Shows financial performance of a firm over aperiod of time
Cash Flow Shows where cash comes from and what it is used
for
Balance Sheet
Shows the firms financial position at a particularinstant in time
Assets and liabilities
Financial Control - Three Major Statements
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Ratios of two financial numbers taken from financialstatements and compared to industry averages
Four Types
Liquidity: Measures ability to meet short term
obligations Leverage: Measures the level of debt in a firms
financial structure
Activity: Measures how effectively a firm uses its
resources Profitability: Measures profit producing
performance of firm
Ratio Analysis
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Financial Budgets: Identify sources of cash and
intended uses
Cash Budgets
Capital Expenditure Budgets
Balance Sheet Budget
Budgets
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Cost Centers
Managers primary concern is control of costs
Revenue Center
Managers primary concern is attaining revenue
target
Profit Center
Manager has more freedom to manipulate costs to
increase profit
Responsibility Centers
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Top Management
Estimates of future sales and production
Priorities used to meet new objectives
Middle Management
Prepares proposed revenue and expense budgets
designed to attain estimated sales/production
levels
Budget Preparation
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Verify accuracy of firms financial data
May be internal or external
Internal audits also evaluate organizational efficiency
Audits of Financial Data
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Management Audits
Evaluate efficiency
Human Resources Accounting
Quantifies the value of human resources
investment
Costs of recruiting
Costs of training
Costs of process improvement
Non-financial Controls
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Social Controls
Standards
Comparison with outcomes
Corrective action
Non-financial Controls
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Effectiveness of research activities
Systems for release of drawing release
Inventory control
Quality control
Non-financial Controls
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Planning, organizing and staffing activities is
converted into reality through directing and leading
Leadership and Motivation is important for success
ofany organization
Communication is the
life b
lood o
fany org
aniz
ation
Controlling optimizes on utilization of resources and
general discipline of the organizations
Summary
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