Qualities and Characteristics of Managers

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.

  1. 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.

  1. 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.

  1. 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.

  1. 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.

  1. 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.

  1. 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.

  1. 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.

  1. 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.

  1. 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.

  1. 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.

  1. 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.

  1. 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.

  1. 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.

  1. 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.

Managerial Skills

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.

Management Dynamics 1st Semester BU BBA SEP Notes

Unit 1
Concept of Management VIEW
Management as Art and Science and Profession VIEW
Management Vs Administration VIEW
Levels of Management VIEW
Functions of Management VIEW
Managerial Skills VIEW
Qualities and Characteristics of Managers VIEW
Quality Circle Meaning, Features and Objectives VIEW
Evolution of Management thought:
Early Contributions of Management thought VIEW
Taylor and Scientific Management VIEW
Fayol’s Management VIEW
Administrative Management VIEW
Bureaucracy of Management thought VIEW
Human Relations Management thought VIEW
Modern Approach Management thought VIEW
Social Responsibility of Managers VIEW
Horizontal and Vertical Fit in HR System VIEW
Unit 2
Concept of Planning, Significance of Planning VIEW
Classification of planning: Strategic plan, Tactical plan and Operational plan VIEW
Process of Planning VIEW
Barriers to effective Planning VIEW
MBO (Management by Objective) VIEW
Management by Exception (MBE) VIEW
Decision Making, Strategies of Decision Making VIEW
Steps in Rational Decision-making process VIEW
Factors influencing Decision Making process VIEW
Psychological Bias and Decision Support System VIEW
Organizing, Defining, Principles VIEW
Organizing Process VIEW
Types of Organizational Structure VIEW
Span of Control VIEW
Centralization vs. Decentralization of Authority VIEW
Informal organization VIEW
Unit 3
Staffing, Meaning and Definition, Concept, Objective VIEW
System approach to Staffing VIEW
Manpower planning VIEW
Controlling Meaning and Definition, Concept, Importance VIEW
Types of Control VIEW
Steps in Control Process VIEW
Directing Concept, Techniques VIEW
Techniques, Types of Supervision VIEW
Essential Characteristics of Supervisor VIEW
Unit 4
Leadership vs. Management VIEW
Leadership, Importance VIEW
Process of Leadership VIEW
Characteristics of an effective Leader VIEW
Modern Styles of Leadership:
Transactional Leadership VIEW
Transformational Leadership VIEW
Servant Leadership VIEW
Democratic Leadership VIEW
Autocratic Leadership VIEW
Laissez-Faire (Delegative) Leadership VIEW
Bureaucratic Leadership VIEW
Charismatic Leadership VIEW
Coaching Meaning and Concepts only VIEW
Motivation Concept, Forms, Need VIEW
Theories of Motivation:
Need for Motivation Theory VIEW
Theory of Herzberg VIEW
ERG Theory VIEW
Attribution Theory VIEW
Incentive Theory VIEW
Safety Theory VIEW
Unit 5
Ethics in Management, Meaning and Definition VIEW
Hindrances in Ethical decision VIEW
Impact of Policy matters in Ethical Decision Making VIEW
Ethical issues in implementing Government Norms and Organizational Policies VIEW
Managerial Ethics VIEW
Emerging Trends in Management:
Business Process Re-engineering, Objectives VIEW
Total Quality Management, Principles VIEW
Quality Circles, Objective, Benefits of Quality Circles VIEW
Benchmarking, Objective, Steps VIEW

Decision Making Skills

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.

Importance of Leader in Organisation Culture

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 versus Informal Leadership

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 versus Manager

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.

Manager

Leader

Origin A person becomes a manager by virtue of his position. A person becomes a leader on basis of his personal qualities.
Formal Rights Manager has got formal rights in an organization because of his status. Rights are not available to a leader.
Followers The subordinates are the followers of managers. The group of employees whom the leaders leads are his followers.
Functions A manager performs all five functions of management. Leader influences people to work willingly for group objectives.
Necessity A manager is very essential to a concern. A leader is required to create cordial relation between person working in and for organization.
Mutual Relationship All managers are leaders. All leaders are not managers.
Accountability Manager is accountable for self and subordinates behaviour and performance. Leaders have no well defined accountability.
Concern A manager’s concern is organizational goals. A leader’s concern is group goals and member’s satisfaction.
Role continuation A manager can continue in office till he performs his duties satisfactorily in congruence with organizational goals. A leader can maintain his position only through day to day wishes of followers.
Sanctions Manager has command over allocation and distribution of sanctions. A leader has command over different sanctions and related task records. These sanctions are essentially of informal nature.
Stability It is more stable. Leadership is temporary.
Followers People follow manager by virtue of job description. People follow them on voluntary basis.

Role of a Leader in Decision making

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:

  • Identifying the challenge: In this step, the manager discovers an issue and determines the circumstances that led to the situation.
  • 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.
  • 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.

Role:

Improve workplace productivity

Effective decisions can save time and propel work projects forward, increasing employee productivity. For example, employees at a small furniture store disagree about when to host the annual spring sale, which prevents them from promoting the sale and preparing the store for an influx of customers. The manager of the store announces the sale date in April. This decision starts the planning process and motivates employees to complete their associated occupational tasks.

Reduce conflict

The decision-making process can decrease conflict by setting clear expectations for employees, leaving little room for misunderstandings. As a manager, you can provide direction on how your team collaborates to achieve organizational goals. For example, you may assign teams for major projects to distribute the work evenly. Deciding what standards you want for your team can promote shared understandings instead of confusion.

Establish trust with the employees

Good decision-making can help managers show their employees that they value their work and have their best interests in mind. When a manager takes the time to evaluate, analyze and explain decisions, they also display thoughtfulness and trustworthiness. Employees may feel they can confide in their managers about their interests and concerns.

Create action plans in emergency situations

Emergency situations may require managers to make quick, impactful decisions to minimize damage and optimize benefits. For example, a small town experiences a power outage, and employees at a local grocery store become concerned with how this may affect their work hours.

The store manager decides to open the store operating on a generator and provide work hours for employees who can safely travel to the store. This ensures employees can work to earn income and the store receives business. When unexpected situations occur, it’s important for managers to assess organizational needs and decide how best to proceed.

Factors affecting Organizational Behaviour

Organizational Behaviour (OB) is the study of how individuals, groups, and structures interact within an organization. It focuses on understanding and predicting human behaviour to improve organizational effectiveness. OB explores key areas such as motivation, leadership, communication, decision-making, and organizational culture. By analyzing these elements, organizations can foster positive work environments, enhance employee performance, and manage change effectively. Drawing on psychology, sociology, and management principles, OB helps businesses create strategies that align employee behaviour with organizational goals.

Factors influencing Organisational Behaviour:

  • Individual Differences

Organizational behaviour is significantly influenced by individual differences, including personality, values, attitudes, perceptions, and emotions. These differences affect how employees interact, approach tasks, and respond to various situations. Understanding individual differences allows managers to effectively assign roles, motivate employees, and build cohesive teams. For example, an extroverted employee may excel in roles requiring social interaction, while an introverted individual might prefer solitary tasks. By accommodating these differences, organizations can enhance productivity, job satisfaction, and overall organizational harmony.

  • Organizational Culture

Culture encompasses shared values, beliefs, and norms within an organization. It shapes how employees behave and interact with one another. A strong organizational culture fosters a sense of belonging, consistency, and alignment towards common goals. Companies with positive cultures often experience lower turnover and higher engagement. Conversely, toxic cultures can lead to conflicts and dissatisfaction. Leaders play a vital role in maintaining or changing the culture by modeling appropriate behaviours and reinforcing desired values through rewards and recognition.

  • Leadership Style

Leadership significantly influences organizational behaviour by shaping the work environment and employee motivation. Different leadership styles—such as autocratic, democratic, and laissez-faire—impact decision-making, communication, and performance. For example, democratic leaders encourage participation and creativity, fostering innovation and morale. In contrast, autocratic leaders may achieve short-term efficiency but risk employee dissatisfaction. Effective leaders adapt their style based on situational needs, ensuring that they motivate employees while maintaining clarity and direction.

  • Communication

Effective communication is essential for smooth organizational functioning. It facilitates information sharing, decision-making, and conflict resolution. Communication can occur through formal channels like meetings and reports or informal ones like casual conversations. Miscommunication, on the other hand, can lead to misunderstandings, errors, and reduced productivity. Organizations that encourage open communication foster trust, collaboration, and innovation. Technologies like email and instant messaging have further transformed communication patterns, making timely feedback and interaction more accessible.

  • Motivation

Motivation drives employee behaviour towards achieving organizational goals. Different employees are motivated by different factors, such as financial incentives, job security, recognition, or personal growth. Managers must understand what motivates their teams to maintain high morale and performance. Motivation theories, like Maslow’s hierarchy of needs and Herzberg’s two-factor theory, help explain how intrinsic and extrinsic factors impact employee engagement. Creating a supportive environment that fulfills these motivational needs is crucial for long-term success.

  • Group Dynamics

Groups and teams are integral to organizational life, and their dynamics significantly influence individual behaviour and overall productivity. Factors like group norms, cohesiveness, and conflict resolution determine how well teams function. A cohesive team with clear goals and effective communication is likely to perform better. Conversely, poorly managed conflict or unclear roles can hinder progress. Encouraging diversity and collaboration while minimizing groupthink helps organizations harness the potential of their teams effectively.

  • Organizational Structure

The structure of an organization defines roles, responsibilities, and authority, influencing how employees interact and behave. A hierarchical structure with rigid rules may lead to formal behaviour and limited creativity, while a flat structure encourages innovation and flexibility. Departments, reporting lines, and spans of control impact decision-making speed and clarity. Organizations must adopt structures that align with their goals, ensuring smooth workflow and adaptability to changes in the business environment.

  • External Environment

The external environment includes factors such as market trends, competition, economic conditions, and technological advancements that affect organizational behaviour. Changes in the external environment may require businesses to adapt quickly to remain competitive. For instance, during economic downturns, organizations may focus on cost-cutting, while during periods of growth, they may emphasize expansion. Staying attuned to environmental factors helps organizations stay relevant, innovate, and navigate challenges effectively. Managers must continuously monitor these factors and adjust strategies accordingly.

Extending Participative Decision making

Participative decision-making (PDM) is the extent to which employers allow or encourage employees to share or participate in organizational decision-making. According to Cotton et al., the format of PDM could be formal or informal. In addition, the degree of participation could range from zero to 100% in different participative management (PM) stages.

PDM is one of many ways in which an organization can make decisions. The leader must think of the best possible way that will allow the organization to achieve the best results. According to Abraham Maslow, workers need to feel a sense of belonging to an organization (see Maslow’s hierarchy of needs).

Styles:

Democratic Leadership. This is the type of leadership style in which members are encouraged to share their ideas and then synthesizes the available information into the best possible decision. Researchers have found that this style is usually the most effective and leads to better contributions from the group, as it produces a work environment that employees can feel good about because they know their opinion counts and they can bring a real difference to the organization.

Autocratic Style. Here, the leader takes the employees’ opinions, collects them and facilitates the conversation, but takes control and responsibility of the final decision. This is most effective during crises and emergencies where decisions have to be made quickly.

Consensus. In the consensus participative decision-making style, the leader gives up complete control of the decision and leaves it to the members of the group to conclude the majority decision. Doing this requires teamwork, trust, and communication (and time, because it takes a while) but it usually brings out the best decisions since it is well thought out. Consensus style improves goal-setting, problem-solving, and team-building among groups.

Delegated by Expertise. Of course, not everyone is an expert at everything. Everyone has their area of expertise. Here, the leader delegates the responsibility to the expert of their area of concern so they can arrive at the best outcome. This style of decision-making process can help the group feel more creative and engaged in the process.

Choosing the right style for your organization shouldn’t be a one-off. As HR practitioners, we always have to be mindful of the dynamics in our organization so we can decide on the right participative decision-making style (depending on the situation) that will improve our employee engagement and ensure that everyone in the company feels valued and respected.

Advantages

PM is important where a large number of stakeholders are involved from different walks of life, coming together to make a decision which may benefit everyone. Some examples are decisions for the environment, health care, anti-animal cruelty and other similar situations. In this case, everyone can be involved, from experts, NGOs, government agencies, to volunteers and members of public.

However, organizations may benefit from the perceived motivational influences of employees. When employees participate in the decision-making process, they may improve understanding and perceptions among colleagues and superiors, and enhance personnel value in the organization.

Participatory decision-making by the top management team can ensure the completeness of decision-making and may increase team member commitment to final decisions. In a participative decision-making process each team member has an opportunity to share their perspectives, voice their ideas and tap their skills to improve team effectiveness and efficiency.

Participatory decision-making can have a wide array of organizational benefits. Researchers have found that PDM may positively impact the following:

  • Job satisfaction
  • Organizational commitment
  • Perceived organizational support
  • Organizational citizenship behavior
  • Labor-management relations
  • Job performance and organizational performance
  • Organizational profits

Outcomes

The outcomes are various in PDM. In the aspect of employees, PDM refers to job satisfaction and performance, which are usually recognized as commitment and productivity[9] In the aspect of employers, PDM is evolved into decision quality and efficiency that influenced by multiple and differential mixed layers in terms of information access, level of participation, processes and dimensions in PDM.

Research primarily focuses on the work satisfaction and performance of employees in PDM. Different measurement systems were applied to identify the two items and the relevant properties. If they are measured with different processes in PDM, the relationship is as described below:

  • Identifying problems: Do not have strong relationship with performance. Because even with full participation, participants may not explore their skills and knowledge in identifying problems, which is likely to weaken the desires and motivation then influence performance.
  • Providing solutions: Positive and “potentially strong” relations with performance. It is not only attributed to the skills and knowledge could be explored but also the innovative ways employees can provide and generate.
  • Selecting solutions: Positive to performance but not likely to enhance satisfaction. If the solutions generated are not acknowledged by the employees who are absent at the previous stage, the satisfaction could lessen.
  • Planning implementation: Positive and strong relationship with both performance and satisfaction. Participants are given the possibility to affect the achievement of a designed plan. As the “value attainment” is attached, the extent of performance and work satisfaction increase.
  • Evaluating results: Weaker relationship with performance, but positive relationship with satisfaction due to the future benefit.

There are a number of ways through which employees can participate in decision-making process of any organization.

  • Participation at the Board Level: Representation of employees at the board level is known as industrial democracy. This can play an important role in protecting the interests of employees. The representative can put all the problems and issues of the employees in front of management and guide the board members to invest in employee benefit schemes.
  • Participation through Ownership: The other way of ensuring workers’ participation in organizational decision making is making them shareholders of the company. Inducing them to buy equity shares, advancing loans, giving financial assistance to enable them to buy equity shares are some of the ways to keep them involved in decision-making.
  • Participation through Collective Bargaining: This refers to the participation of workers through collective agreements and by deciding and following certain rules and regulations. This is considered as an ideal way to ensure employee participation in managerial processes. It should be well controlled otherwise each party tries to take an advantage of the other.
  • Participation through Suggestion Schemes: Encouraging your employees to come up with unique ideas can work wonders especially on matters such as cost cutting, waste management, safety measures, reward system, etc. Developing a full-fledged procedure can add value to the organizational functions and create a healthy environment and work culture. For instance, Satyam is known to have introduced an amazing country-wide suggestion scheme, the Idea Junction. It receives over 5,000 ideas per year from its employees and company accepts almost one-fifth of them.
  • Participation through Complete Control: This is called the system of self management where workers union acts as management. Through elected boards, they acquire full control of the management. In this style, workers directly deal with all aspects of management or industrial issues through their representatives.
  • Participation through Job Enrichment: Expanding the job content and adding additional motivators and rewards to the existing job profile is a fine way to keep workers involved in managerial decision-making. Job enrichment offers freedom to employees to exploit their wisdom and use their judgment while handling day-to-day business problems.
  • Participation through Quality Circles: A quality circle is a group of five to ten people who are experts in a particular work area. They meet regularly to identify, analyze and solve the problems arising in their area of operation. Anyone, from the organization, who is an expert of that particular field, can become its member. It is an ideal way to identify the problem areas and work upon them to improve working conditions of the organization.
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