Tag: Decision-Making Processes

Administrative Management is a crucial aspect of organizational theory that focuses on the systematic processes and principles governing the functioning of an organization. The roots of administrative management can be traced back to Henri Fayol, a French mining engineer and one of the pioneers of modern management theory. Fayol’s work laid the foundation for understanding how organizations could be structured and managed to ensure efficiency, effectiveness, and productivity. His insights, often referred to as Fayolism, form the backbone of administrative management.

Historical Context

In the early 20th century, management practices were evolving rapidly in response to the industrial revolution and the growing complexity of businesses. Organizations were facing challenges in coordinating large-scale production, managing resources, and dealing with a rapidly expanding workforce. Unlike Frederick Taylor, who focused on scientific management and the optimization of work processes at the micro level, Fayol’s administrative management theory looked at the macro level—how organizations as a whole should be managed and structured.

Fayol developed a comprehensive framework for management that aimed to improve administrative efficiency and create a universal approach to managing businesses. His 14 principles of management and five functions of management are considered major contributions to administrative management theory and remain relevant today.

Core Concepts of Administrative Management:

Administrative management focuses on the broader organizational structure, decision-making processes, and roles of managers in ensuring smooth operation. Below are some core concepts of this approach:

Five Functions of Management

Fayol outlined five primary functions of management, which form the basis of administrative management:

• Planning:

Fayol saw planning as the primary function of management. It involves setting objectives and determining the best course of action to achieve them. Planning ensures that organizations have a clear vision for the future and a roadmap for getting there. In administrative management, planning is a continuous process that requires foresight and adaptability.

• Organizing:

Organizing involves structuring the workforce and resources to achieve the organization’s objectives. This includes defining roles, assigning tasks, and establishing the hierarchical structure. Administrative management emphasizes that without proper organization, even the best-laid plans will fail.

• Commanding:

Fayol’s view of commanding relates to leading or directing the workforce to carry out plans. Managers must give clear instructions and provide guidance to ensure that employees understand their tasks and responsibilities. Commanding also involves motivating employees and fostering discipline to keep the organization on track.

• Coordinating:

Coordination is the function that ensures all activities within an organization are harmonized. Fayol believed that good coordination allows all parts of the organization to work together efficiently. Administrative management highlights that without coordination, different departments or units may work in silos, leading to inefficiencies or conflicts.

• Controlling:

Controlling refers to monitoring and evaluating the progress of organizational activities to ensure that they align with the planned objectives. Fayol emphasized that managers should constantly assess performance and make adjustments as necessary. Control mechanisms such as performance evaluations, audits, and feedback loops are essential for maintaining quality and effectiveness.

14 Principles of Management:

Fayol’s 14 principles of management provide a framework for administrative management, helping managers effectively govern their organizations. These principles:

• Division of Work: Specialization increases productivity by allowing individuals to focus on specific tasks.
• Authority and Responsibility: Managers must have the authority to give orders, and with authority comes responsibility.
• Discipline: Employees must follow rules and procedures to maintain order and efficiency.
• Unity of Command: Each employee should report to only one manager to avoid confusion and conflict.
• Unity of Direction: All activities should be aligned toward common objectives, ensuring unity in organizational efforts.
• Subordination of Individual Interests to General Interests: The organization’s goals should take precedence over individual interests.
• Remuneration: Fair compensation motivates employees and contributes to their satisfaction.
• Centralization: The degree of centralization should balance decision-making power between top management and lower-level employees.
• Scalar Chain: A clear hierarchy should exist to ensure a well-defined chain of command.
• Order: Organizational resources, including people and materials, should be in the right place at the right time.
• Equity: Fair treatment of employees fosters loyalty and morale.
• Stability of Tenure of Personnel: Job security and low turnover rates contribute to organizational stability.
• Initiative: Encouraging employees to take initiative fosters creativity and engagement.
• Esprit de Corps: Promoting team spirit and unity within the organization boosts morale and productivity.

These principles provide a foundation for administrative management and are designed to ensure that managers can maintain order, efficiency, and control within an organization.

Role of Managers in Administrative Management:

In administrative management, managers play a central role in ensuring the organization’s success. Managers must not only plan and organize work but also lead employees, coordinate activities, and control processes to ensure that the organization achieves its goals. Fayol believed that managerial competence is critical to the organization’s performance.

• Decision-Making:

Managers are responsible for making strategic and operational decisions that guide the organization. These decisions must align with the organization’s goals and be made based on careful analysis of data and circumstances.

• Communication:

Effective communication is vital for managers to ensure that plans, instructions, and feedback are clearly conveyed. Managers must foster open lines of communication between different levels of the organization to prevent misunderstandings.

• Leadership:

Administrative management emphasizes the importance of leadership in directing the workforce. Managers must motivate employees, resolve conflicts, and create a positive work environment.

• Control and Evaluation:

Managers are also responsible for monitoring performance and making necessary adjustments to ensure that organizational activities align with the overall objectives. By implementing controls and conducting evaluations, managers can maintain high levels of quality and efficiency.

Advantages of Administrative Management:

Administrative management offers several advantages, especially in large and complex organizations.

• Systematic Approach:

Fayol’s principles provide a systematic approach to management, ensuring that processes are consistent and repeatable. This reduces the likelihood of errors and improves organizational efficiency.

• Clarity of Roles:

By emphasizing the division of work and a clear chain of command, administrative management ensures that employees understand their roles and responsibilities, minimizing confusion and overlapping duties.

• Improved Coordination:

Fayol’s focus on coordination ensures that different parts of the organization work together smoothly. This reduces duplication of efforts and enhances overall productivity.

• Discipline and Control:

Administrative management’s emphasis on discipline and control mechanisms helps organizations maintain high standards of performance and accountability.

Criticism of Administrative Management:

While Fayol’s administrative management theory has had a significant impact on modern management practices, it is not without criticism. Some critics argue that Fayol’s principles are too rigid and formal for modern, dynamic organizations. Others believe that the theory focuses too heavily on top-down control and centralization, which may stifle innovation and employee autonomy.

Additionally, in contemporary management practices, the human relations aspect has gained importance, particularly with the rise of concepts such as employee empowerment, teamwork, and collaborative decision-making, which are not emphasized in Fayol’s administrative management.

Evolution of Management thought has been shaped by several key contributors and schools of thought throughout history. Here are some early contributions that laid the foundation for modern management practices:

Ancient Management Practices:

• Egyptians and the Pyramids:

The construction of the pyramids in ancient Egypt illustrates early management principles, including planning, organization, and resource allocation. The ability to mobilize a large workforce and coordinate various tasks demonstrates early forms of management and leadership.

• Chinese Philosophers:

Confucius (551–479 BC) emphasized the importance of ethical leadership, social responsibility, and organizational hierarchy. His teachings influenced management by promoting the idea of moral governance and respect for authority.

Classical Management Theories

• Frederick Taylor and Scientific Management (1911):

Often referred to as the father of scientific management, Taylor introduced principles aimed at improving productivity and efficiency. He advocated for the systematic study of work processes, standardization of tasks, and the use of time-motion studies. Taylor’s work laid the groundwork for future management practices focused on efficiency and productivity.

• Henri Fayol and Administrative Theory (1916):

Fayol, a French industrialist, is known for his contributions to administrative management. He identified 14 principles of management, including division of work, authority and responsibility, unity of command, and scalar chain. Fayol’s framework emphasized the importance of management functions—planning, organizing, leading, and controlling.

Behavioral Management Theory

• Max Weber and Bureaucratic Management (1947):

Weber introduced the concept of bureaucracy as an organizational model characterized by hierarchical structures, clear rules, and standardized procedures. He emphasized the importance of rationality and formalization in management, which influenced the design of modern organizations.

• Elton Mayo and the Hawthorne Studies (1924–1932):

Mayo’s research at the Hawthorne Works highlighted the impact of social factors on employee productivity. His findings led to the human relations movement, emphasizing the importance of employee satisfaction, motivation, and the social environment in the workplace.

Systems Theory

• Ludwig von Bertalanffy and General Systems Theory (1950s):

Bertalanffy proposed that organizations should be viewed as open systems that interact with their environment. This perspective highlighted the interconnectedness of various organizational components and the importance of understanding relationships within the system.

Contingency Theory

• Fiedler’s Contingency Model (1964):

Fred Fiedler introduced a contingency model that emphasized the need for management approaches to be tailored to specific situational variables. This model highlighted that there is no one-size-fits-all solution in management, advocating for flexibility in leadership styles based on context.

Managers are individuals responsible for planning, organizing, leading, and controlling organizational resources to achieve specific goals. They play a crucial role in decision-making, team coordination, and performance evaluation. Effective managers possess a blend of technical, human, and conceptual skills, enabling them to navigate complex business environments, motivate employees, and drive organizational success through strategic initiatives and effective communication.

Qualities of Managers:

1. Leadership Ability

Great managers possess strong leadership skills that inspire and motivate their teams. They create a clear vision for the organization and communicate it effectively, ensuring that everyone understands their roles in achieving that vision. By fostering a sense of purpose and direction, they empower employees to take ownership of their work and strive for excellence.

2. Communication Skills

Effective communication is vital for successful management. Managers must be able to convey information clearly and concisely, both verbally and in writing. They should also be active listeners, open to feedback and ideas from team members. Good communication helps prevent misunderstandings, fosters collaboration, and creates a transparent work environment where employees feel valued and informed.

3. Problem-Solving Skills

Managers often face complex challenges that require innovative solutions. The ability to analyze situations critically, identify potential issues, and develop effective strategies is essential. Successful managers approach problems systematically, considering various perspectives and collaborating with their teams to arrive at the best possible solutions. Their problem-solving skills contribute to improved efficiency and productivity.

4. Emotional Intelligence

Emotional intelligence (EI) is the ability to understand and manage one’s own emotions while also recognizing and influencing the emotions of others. Managers with high EI can navigate interpersonal relationships with empathy and sensitivity, leading to better teamwork and conflict resolution. By understanding the emotional dynamics within their teams, they can create a supportive work environment that enhances employee engagement and satisfaction.

5. Adaptability

In today’s rapidly changing business landscape, adaptability is a crucial quality for managers. They must be open to change and willing to adjust their strategies in response to new information, market trends, or unforeseen challenges. Adaptable managers can lead their teams through transitions and uncertainties, ensuring that the organization remains resilient and responsive to evolving circumstances.

6. Decisiveness

Effective managers are decisive, able to make informed decisions promptly and confidently. They gather relevant information, weigh the pros and cons, and act decisively while considering the impact on their teams and the organization. Decisiveness instills confidence in team members, fostering trust and a sense of stability within the organization.

7. Integrity

Integrity is a fundamental quality of great managers. They lead by example, demonstrating honesty, transparency, and ethical behavior in all their actions. Managers with integrity build trust within their teams and create a culture of accountability and respect. Employees are more likely to be engaged and committed when they believe their leaders act with integrity.

8. Visionary Thinking

Visionary managers have a forward-thinking mindset that enables them to anticipate future trends and challenges. They are strategic thinkers who can articulate long-term goals and inspire their teams to work towards achieving them. By fostering a culture of innovation and encouraging creative thinking, visionary managers drive organizational growth and success.

Characteristics of Managers:

1. Visionary

Effective managers possess a clear vision for the future of their organization. They articulate this vision to their teams, providing direction and purpose. A visionary manager inspires employees by setting ambitious yet achievable goals and encouraging them to align their efforts with the organization’s objectives. This characteristic fosters a sense of ownership among team members and motivates them to strive for excellence.

2. Empathetic

Empathy is a crucial characteristic of successful managers. They understand and appreciate the perspectives and emotions of their team members. By being approachable and supportive, empathetic managers build strong relationships based on trust and respect. This characteristic enables them to address employee concerns effectively and create a positive work environment that promotes collaboration and engagement.

3. Accountable

Effective managers take responsibility for their actions and decisions, both personally and for their team’s performance. They hold themselves accountable for meeting objectives and deadlines while also encouraging their team members to do the same. By promoting a culture of accountability, these managers foster an environment where employees feel responsible for their contributions, leading to increased motivation and productivity.

4. Strategic Thinkers

Strategic thinking is a hallmark of effective managers. They analyze complex situations, anticipate potential challenges, and develop long-term strategies to achieve organizational goals. This characteristic allows managers to make informed decisions that align with the organization’s mission and vision. Strategic thinkers also encourage innovation and adaptability within their teams, ensuring that the organization remains competitive in a rapidly changing landscape.

5. Decisive

Decisiveness is an important characteristic of effective managers. They are capable of making timely decisions, often in high-pressure situations. By weighing options and considering input from their teams, decisive managers can act confidently and assertively, ensuring that the organization remains agile and responsive to changing circumstances. This ability instills confidence in team members, who feel secure in their manager’s leadership.

6. Communicative

Strong communication skills are essential for effective managers. They convey information clearly and concisely, ensuring that team members understand their roles, responsibilities, and objectives. Good managers also practice active listening, seeking feedback and input from their teams. This two-way communication fosters collaboration, minimizes misunderstandings, and enhances team cohesion.

7. Resilient

Resilience is a vital characteristic of effective managers, enabling them to navigate challenges and setbacks with grace. Resilient managers maintain a positive outlook, even in difficult circumstances, and encourage their teams to remain focused and motivated. This characteristic helps build a culture of perseverance, where employees feel supported and empowered to overcome obstacles.

8. Supportive

Supportive managers prioritize the development and well-being of their team members. They provide guidance, mentorship, and resources to help employees grow professionally. By recognizing individual strengths and weaknesses, supportive managers tailor their approach to meet the needs of each team member. This characteristic not only enhances employee satisfaction but also contributes to improved performance and retention.

Managers are responsible for guiding teams, making strategic decisions, and ensuring that resources are used efficiently. To perform these functions effectively, managers must possess a variety of skills that enable them to navigate challenges and lead their organizations to achieve their goals.

Technical Skills:

Technical skills refer to the specific knowledge and abilities required to perform tasks related to a particular field or profession. These skills are essential for managers, especially at lower levels of management, where they oversee the work of employees who carry out technical tasks.

• Importance:

Technical skills enable managers to understand the intricacies of their industry and make informed decisions based on the technical aspects of their work. They also allow managers to provide guidance, training, and support to their team members effectively.

• Examples:

In fields such as information technology, technical skills might include programming, software development, or data analysis. In manufacturing, a manager might need to understand machinery operations or production processes. For marketing managers, skills could involve proficiency in digital marketing tools and analytics.

While technical skills are crucial for lower-level managers, their importance may diminish at higher levels of management, where strategic decision-making becomes more significant.

Human Skills:

Human skills, also known as interpersonal skills or soft skills, involve the ability to interact effectively with others. These skills are vital for building relationships, motivating team members, and fostering a positive work environment.

• Importance:

Human skills enhance a manager’s ability to communicate clearly, collaborate with others, and resolve conflicts. Managers with strong human skills can create a culture of trust and open communication, leading to increased employee engagement and productivity.

• Examples:

Key human skills include active listening, empathy, conflict resolution, teamwork, and the ability to inspire and motivate others. A manager who excels in these areas can effectively lead their team, understand their concerns, and address their needs.

Human skills are particularly important at all levels of management, as they help build strong relationships with employees, stakeholders, and clients.

Conceptual Skills:

Conceptual skills involve the ability to understand complex situations, analyze various factors, and develop innovative solutions. These skills are especially important for top-level managers, who are responsible for strategic planning and decision-making.

• Importance:

Managers with strong conceptual skills can see the big picture and understand how different parts of the organization interact. They are better equipped to formulate strategies and make long-term decisions that align with organizational goals.

• Examples:

Conceptual skills include critical thinking, strategic planning, problem-solving, and the ability to assess risks and opportunities. A manager with strong conceptual skills can analyze market trends, identify potential challenges, and develop strategies to enhance the organization’s competitive advantage.

Conceptual skills become increasingly important as managers rise through the ranks, where they are tasked with guiding the organization’s direction and making decisions that impact the entire company.

Decision-Making Skills:

Decision-making skills involve the ability to assess situations, weigh alternatives, and make informed choices. Managers face numerous decisions daily, and effective decision-making is critical for achieving organizational objectives.

• Importance:

Good decision-making skills lead to timely and effective resolutions to problems and challenges. Managers must be able to analyze data, consider the implications of their choices, and select the best course of action.

• Examples:

Decision-making processes may involve quantitative analysis, risk assessment, and stakeholder consultation. A manager who excels in this area can navigate complexities and uncertainties effectively, ensuring that the organization remains agile and responsive to changing conditions.

Leadership Skills:

Leadership skills encompass the ability to inspire and guide individuals and teams toward achieving shared goals. Effective leadership is crucial for motivating employees and fostering a positive organizational culture.

• Importance:

Strong leadership skills enable managers to create a vision for the organization, communicate it effectively, and rally employees around it. Leaders who exhibit confidence and decisiveness can inspire trust and commitment among team members.

• Examples:

Leadership skills include vision-setting, motivating others, delegating authority, providing constructive feedback, and being adaptable to change. A good leader empowers team members and encourages them to take ownership of their work, fostering a sense of accountability and engagement.

Communication Skills

Effective communication is a cornerstone of successful management. Communication skills involve the ability to convey information clearly and concisely, both verbally and in writing.

• Importance:

Good communication fosters transparency, reduces misunderstandings, and enhances collaboration. Managers must be able to articulate goals, provide feedback, and facilitate discussions among team members.

• Examples:

Communication skills include active listening, presenting ideas clearly, writing reports, and facilitating meetings. Managers who communicate effectively can ensure that their teams are aligned and informed, leading to improved performance.

Decision-making is a leadership skill that managers use to assess a situation and determine how the organization may proceed. The decision-making process involves the following steps:

• Devising solutions: After learning more information about the case, the manager creates one or several possible solutions.
• Weighing options: The manager analyzes the advantages and disadvantages of each option and explores alternative solutions if needed.
• Identifying the challenge: In this step, the manager discovers an issue and determines the circumstances that led to the situation.
• Making a choice: Once a thorough assessment takes place, the manager makes a final decision about what action to take.
• Informing others of the decision: The manager informs employees of the decision and explains how the decision influences the workplace.

Analytical Skills

Analytical skills help you collect and assess information before you make a final decision. An analytical person zooms out on the problem, looks at all the facts, and tries to interpret any patterns or findings they might see. These kinds of skills help you make fact-based decisions using logical thinking.

Emotional intelligence

Individuals with high emotional intelligence are better at controlling and processing emotions in challenging situations. This skill set enables managers to empathise with the feeling of their team members, making it easier to communicate with each of them. It allows them to have a healthy discussion about a challenge and create an environment where each person’s thought process receives an acknowledgement.

Critical thinking skills

Critical thinking skills are essential for decision-making because it allows managers and leaders to gather information and analyse it to extract critical data. These skills ensure that a leader’s decisions offer a desirable outcome and minimise the risk of errors that might disrupt the project or company’s growth. Critical thinking skills involve a lot of research and reflection on past scenarios to solve similar challenges.

Logical reasoning

Leaders evaluate all the data and facts presented for making critical business decisions. To ensure you make the right decision, it is essential to evaluate and review the advantages and disadvantages of your decision. When choosing between alternatives, consider every data point to guide decision-making. Decisions backed by data and reasoning help you stay committed to achieving organisational goals.

Creativity Skills

Decision-making isn’t just all facts and figures; it also requires creative thinking to brainstorm solutions that might not be so straightforward or traditional. Creative decision-makers think outside of what’s been done before and develop original ideas and solutions for solving problems. In addition, they’re open-minded and willing to try new things.

Collaboration Skills

Good decisions take into account multiple ideas and perspectives. Collaboration skills help you find a solution by working together with one or more teammates. Involving numerous people in the decision-making process can help bring together different skillsets, exposing you to other problem-solving methods and ways of thinking.

Leadership Skills

While collaboration is often crucial for good decision-making, someone must take the lead and make a final decision. Leadership skills can help you consider all perspectives and decide on a singular solution that best represents your team members’ ideas.

You don’t need to be a manager to take the lead in decision-making. Even if you don’t have the final say, speaking up and sharing your ideas will not only help you stand out at work but prove you can be an effective leader.

Leadership influences company culture heavily. Leaders can reinforce organisational values by helping their people grow and develop through goal setting, opportunities, and recognition. Elevate employees through frequent one-on-ones and regular two-way feedback. When employees have open and ongoing dialogue about their work, their trust in their leader strengthens.

Leadership culture is important to building organisational culture. Leadership culture is how leaders interact with one another and their team members. It’s the way leaders operate, communicate, and make decisions. And it’s about the everyday working environment: their behaviors, interactions, beliefs, and values.

Leaders must understand their role in shaping an organisation’s culture, and organisations must make intentional efforts to help develop their leaders. Effective leadership development goes beyond training classes, adding on to your organisational structure, or even determining the right cultural fit when hiring new leaders. The best way to ensure your leadership culture is positively contributing to your organisational culture is to create modern leaders.

Organizational Culture and Leadership is hand in hand together in building, controlling and enhancing organizational performance, but the question is how far the relation is between both.

The contingent reward of the transformational and transactional leadership is more prominent than culture. Also, some researchers supposed that leadership is a simple component of organizational culture, they assumed that by shaping the organizational values and constructing the social reality by leader an organization naturally became a strong organizational culture, Where In any organization, leaders create their tools to either evolve the current culture or to change the existing standard. The leadership patterns differs based on how the subordinates observe their organizational culture.

However if leadership and organizational culture can work together, then leadership can play a major role and be an effective factor in changing organization’s culture when needed, also to foster and impact it when there is a decision or plan by decision makers.

There are other theorists confirmed for being leadership a key of both organizational effectiveness and change.

traits of organization’s culture link to the organization’s performance. The performance of an organization depends on organizational culture values that been shared among its members. Comparatively, Successful organizations are often distinguished by the company’s ability to promote their strategies, which mean it relies on the power of their leaders.

After all, we can settle that both leadership and organizational culture can evolve the performance of organizational. Furthermore, leadership is part of an organizational culture and they are essential factors that work together to enhance and increase organizational performance. Accordingly, to the latter, we cannot separate between these three concepts since they fit at best.

Leadership traits and also skills are useful in promoting a healthy organizational culture.

There is no specific leadership characteristic to promote a healthy organizational culture. But to have a successful organization you have to combine between the organizational culture’s standards and the employees’ personal win. Therefore, a leader should have the skills of sharing his vision and motivating the subordinates to reach the desired goal altogether.

Knowing that a healthy organizational culture is linked to a healthy leader, below is a list of leadership traits from different leadership’s styles that contribute to maintaining and evolving subordinates:

Behavior for a successful leader:

• A leader should be directed toward providing psychological structure for subordinates which means giving subordinates a clear scope of work, scheduling and coordinating work, giving specific guidance, and clarifying organizational structure’s policies, rules, and procedures.
• Supportive directed toward the satisfaction of subordinates needs and preferences, such as displaying concern for subordinates’ aid and building a friendly and psychologically supportive work environment.
• Participative, directed toward encouragement of subordinate influence on decision making and works unit operations: discussing with subordinates and build decision by taking their opinions and suggestions into account.
• Achievement oriented, directed toward encouraging performance excellence: setting challenging goals, seeking improvement, featuring excellence in achievement, and giving confidence that subordinates will attain high standards of performance.

Leadership characteristics a servant leadership should be:

• Listening, communicate by listening first, through listening they acknowledged the point of view of a follower and validated this perspective.
• Empathy, Is standing in the shoes of another person and attempting to see the world from that person’s point of view.
• Healing, the personal well-being of their followers.
• Awareness is a quality within servant leaders that makes them acutely attuned and receptive to their physical, social and political environments.
• Persuasion is a sharp and determined communication that convinces others to change.
• Refers to an individual’s ability to be a visionary for an organization, providing a clear sense of its goals and direction.
• Ability to foresee what is coming based on what is occurring in the present and what happened in the past.
• Is about taking responsibility for the leadership role entrusted to the leader.
• Commitment to the growth of people. It’s about treating each follower as a unique person with intrinsic value that goes beyond his or her tangible contributions to the organization.
• Building community. A collection of individuals who have shared interested and pursuits and feel a sense of unity and relatedness.

Leadership affects organizational culture

Managers can teach organizational culture through social interactions. Through their own actions, leaders show employees what behavior is acceptable and encouraged. Here are ways that leadership affects organizational culture and leadership:

Promotes a culture of recognition

When leaders let employees know that their contributions are valuable, they foster a culture of recognition. The task of the leader is to reward and incentivize hard work and good behavior. When leaders give positive praise, they help employees feel fulfilled and confident. Leadership fosters a culture of appreciation. Quality leaders encourage their employees to recognize other coworkers for their positive contributions. For instance, during a team meeting, a manager could ask coworkers to share specific instances of when a colleague excelled. A workplace culture where everyone celebrates success builds stronger teams.

Defines and teaches core values

You can define a strong business culture by its firmly held core values that are organized, shared and transmitted by employees. Leaders are role models who demonstrate behaviors that reflect the company’s core values. Effective leaders show their employees what actions they should take to fully embrace workplace values. It’s the duty of a leader to translate the mission of an organization into tangible results.

Fosters a desire to learn

A quality leader demonstrates a genuine interest in promoting the growth of their employees. For that reason, they freely share what they know with others. They help team members build a career path, then share the knowledge that the employee needs to follow it. Leaders promote the idea that employees can learn from any opportunity.

By encouraging employees to take risks in order to grow their knowledge base, effective leaders are able to foster a culture of learning and growth. Employees who feel safe to explore and learn may find their work more fulfilling and meaningful. They feel more inclined to collaborate and learn from others.

Changes the culture

Leaders understand that workplace culture continually grows and changes. Understanding the dynamic nature of the workplace helps them guide their team members through these changes.

When changes in company culture are necessary, leaders have a responsibility to communicate the information to employees effectively. Cultural changes require clear communication with every person in an organization. Leaders who value workplace culture understand that their duty is to keep actively creating a healthy organizational culture. They show their team members what behaviors align with the cultural changes and what behaviors they can alter.

Encourages a shared vision

Effective leaders define a shared goal for which everyone can strive. They promote a vision of the future that’s positive and value-based. By outlining detailed steps, they show team members how to successfully reach a goal. Employees receive a clear understanding of their role within any collective process and collaborate to achieve a shared vision of the future. Being able to describe a realistic vision inspires employees to be more productive. When they accomplish goals, employees feel fulfilled and valued. Seeing results helps them understand how they contribute to the company.

Formal leadership

Formal leadership is a circumstance in which an individual is the officially recognized head of a group or organization. This type of leadership relates to a job title, so it’s the professional responsibility of formal leaders to motivate their juniors and take charge of the factors that may lead to the success of the organization, such as resource allocation and decision-making.

The CEO of a corporation is an example of a formal leader. They’re responsible for directing all resources and operations and making decisions that lead the company to profitability. Also, as the highest-ranking executive of the organization, they officially have more authority than others within the company.

Informal leadership

Informal leadership is when an individual does not have official status as a group’s leader, but other group members see them as and consider them to be a leading force. Informal leaders tend to be experienced and knowledgeable, so they’re the ones people seek for answers and guidance. Often, they’ve earned the status of informal leader by developing strong relationships with the people around them and proving themselves, through actions, to be reliable and trustworthy.

An example of an informal leader is a colleague who’s well known for their intelligence, wisdom and interpersonal qualities. This person isn’t necessarily a high-ranking member of the organization, but others respect them and typically go to them for advice and knowledge about procedures. In meetings, they might frequently offer actionable insights that lead to the resolution of problems. If they provide instruction, others often heed it willingly.

Authority of Formal Leadership

When you assign a leadership role to an individual, that person has decision-making authority. You expect employees to respect the position as much as the person who holds it. Formal leaders have the ability to help or hinder their subordinates’ career progress through performance reviews, recommendations to management and disciplinary action. Overall, formal leadership has a top-down feel. That is, the leader is at the top of an implied or explicit hierarchy.

Authority of Informal Leadership

An informal leadership style relies on camaraderie and shared self-interest. The informal leader motivates employees by pointing out the fate all employees will share if they work to reach a goal. This type of leader has the types of leadership traits that allow them to listen to all points of view before making decisions and gains respect from followers through a demonstration of reasoning ability and positive results, according to Tough Nickel.

Communication Styles

Communication from formal leaders tends to take the form of directives the leader expects employees to follow. Under this style of leadership, employees are seldom included in the process that leads up to the decision. After the decision is made and delivered, employees may have an opportunity to ask questions and offer opinions, but their input won’t change the decision. Informal leadership, however, involves employees in the decision-making process. Employees may offer ideas and suggestions for solving the problem, though the leader may make the ultimate decision. The sense under informal leadership is that employees can affect decision-making.

Work Relationships

Formal leaders tend to have boss/employee relationships. The hierarchy that exists in formal settings implies that in any disagreement with the leader, the leader’s view will prevail. Employees operate under formal leadership with the assumption that the leader is concerned about the company and may view employee desires as counter to what would benefit the operation. Informal leaders welcome disagreement and though such a leader may have authority to ignore opposition, this seldom happens, according to Leadership Inspirations. Informal leaders usually persuade the opposition to see the bigger picture and at least understand the reason the leader sticks with a point of view.

Advice vs. Approval

Under formal leadership, employees tend to seek approval from the leader. With informal leaders, employees often seek advice. The formal leader tends to judge employees and this makes communication somewhat intimidating. The informal leader is more likely to mentor employees and therefore may give guidance instead of reprimands.

Leader

Leadership as a general term is not related to managership. A person can be a leader by virtue of qualities in him. For example: leader of a club, class, welfare association, social organization, etc. Therefore, it is true to say that, “All managers are leaders, but all leaders are not managers.”

A leader is one who influences the behavior and work of others in group efforts towards achievement of specified goals in a given situation. On the other hand, manager can be a true manager only if he has got traits of leader in him. Manager at all levels is expected to be the leaders of work groups so that subordinates willingly carry instructions and accept their guidance. A person can be a leader by virtue of all qualities in him.

A leader refers to a person who leads others in a specific situation and is capable of heading the group towards the accomplishment of the ultimate goal by making strategies to pursue and reach the same.

A leader has a vision, who inspires people, in such a way that it becomes their vision.

Further, the leader can be any person having the potential to influence others, be it a manager of an organization, or head of the family, or a captain of a team, minister of a state, or leader in an informal group. He/She is the one who:

• Takes charge of and directs the activities of subordinates.
• Provide the group everything that is required to fulfill its maintenance and needs related to the task.
• Required at all levels to act as a representative of the organization
• Encourages the whole team to work together and supports them in accomplishing their tasks, as a guide.

Manager

A manager has to perform all five functions to achieve goals, i.e., Planning, Organizing, Staffing, Directing, and Controlling. Leadership is a part of these functions.

Managers are those individuals who are employed by the organization so as to direct and monitor the work of other employees working in the organization. They are the ones who get their work done by the employees and have the authority to hire or fire the employees.

He/She ensures that the tasks are completed within the stipulated time frame while complying with all the rules and policies of the organization and using the allocated resources.

Functions:

• Planning: The planning function encompasses setting up goals, formulation of strategies, and development of plans to coordinate the activities of the organization.
• Organizing: Organizing involves the arrangement of resources and scheduling of tasks so that activities can be performed in a sequential manner.
• Staffing: This function involves recruiting the right personnel for various positions in an organization.
• Directing: Directing involves providing direction, guidance, and supervision to the subordinates, so that they can perform the task effectively.
• Controlling: Controlling involves keeping a check on the activities performed by the employees so as to make certain that they are performed as planned, by making comparisons. And if there are any deviations then, measures should be taken to improve them.