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LEADING

BEHAVIORAL APPROACHES TO LEADERSHIP STYLES


Leadership style is unique and different from other patterns.
There are several approaches used in classifying leadership styles.
They are as follows:
According to the ways leaders approach people to motivate
them.
According to the way the leader uses the power.
According to the leaders orientation towards task and
people.
Ways Leaders Approach People
1. Positive leadership
2. Negative leadership
When the leaders approach emphasizes rewards, the style used is
positive leadership. The reward may be economic, like an increase in
monthly salary, or it may be noneconomic like membership in an advisory
committee.
When punishment is emphasized by the leader, the style is said to be
negative leadership. The punishment may take the form of reprimand,
suspension, or dismissal.
Ways Leaders Uses Power
1. Autocratic Leaders
- Leaders who make decisions themselves, without consulting
subordinates.
- Effective in emergencies and when absolute followership is
needed.
- receives little
2. Participative Leaders
- Leaders who openly invites his subordinates to participate or
share in decisions, policy making and operation methods.
- It generates a lot of good ideas, increased support for decisions
and the reduction of the chance that they will be unexpectedly
undermined.

Time- consuming and frustrating to people who prefer to see a


quick decision reached.
3. Free- Rein Leaders
- Leaders who set objectives and allow employees or
subordinates relative freedom to do whatever it takes to
accomplish these objectives.
- If free- rein leadership fits the situation, there is a full managerial
delegation resulting to optimum utilization of time and resources.
- Weakness of free- rein leadership is that there is a very little
managerial control and a high degree of risk.
-

Leaders Orientation towards Task and People


1. Employee Orientation
- Leader is said to be employee- oriented when he considers
employees as human beings of intrinsic importance and with
individual and personal need.
2. Task Orientation
- Leader is said to be task- oriented if he places the stress on
production and the technical aspects of the job and the
employees are viewed as the means of getting the work done.

CONTINGENCY APPROACHES TO LEADERSHIP STYLE


Contingency approach is an effort to determine through research
which managerial practices and techniques are appropriate in specific
situations.
Fiedlers Contingency Model
- According to Fred Fiedler, Leadership is effective when the
leaders style is appropriate to the situation.
*Three Principal Factors
the relations between leaders and followers
the structure of the task
the power inherent in the leaders position
To be effective, the situation must fit the leader. If this is not so, the
following may be tried:
Change the leaders trait or behaviors.
Select leaders who have traits or behaviors fitting the situation.

Move leaders around in the organization until they are in positions


that fit them.
Change the situation.
Hersey and Blanchard Situational Leadership Model
- It is the development ( or maturity) level of subordinate.
*Maturity has two components:
1. Job skills and knowledge
2. Psychological maturity
Style 1: Directing~ is for people who lack competence but are enthusiastic
and committed. They
need direction and supervision to get them started.
Style 2: Coaching~ is for people who have some competence but lack
commitment. They need
direction and supervision because theyre still relatively
inexperienced. They also need
support and praise to build their self- esteem and involvement in
decision making to
restore their commitment.
Style 3: Supporting~ is for people who have competence but lack of
confidence or motivation.
They do not need much direction because of their skills, but support
is necessary to
bolster their confidence and motivation.
Style 4: Delegating~ is for people who have both competence and
commitment. They are able
and willing to work on a project by themselves with the supervision
or support.
Path- Goal Model of Leadership
- It is espoused by Robert J. House and Terence R. Mitchell,
stipulates that leadership can be made effective because
leaders can influence subordinates perceptions of their work
goal, personal goals, and paths to goal attainment.

*Path- goal model enhance subordinate motivation by:


Clarifying the s subordinates perception of work goals
Linking meaningful rewards with goal attainment, and
Explaining how goals and desired rewards can be achieved
Leadership Styles
The leadership styles which may be used by path- goal proponents
are as follows:
1. Directive Leadership~ where the leader focuses on clear task
assignments, standards of successful performance and work
schedules.
2. Supportive Leadership~ where subordinates are treated as equals in
a friendly manner while striving to improve their well- being.
3. Participative Leadership~ where the leader consults with
subordinates to seek their suggestions and then seriously considers
those suggestions when making decisions.
4. Achievement- oriented Leadership~ where the leader set
challenging goals, emphasizes excellence, and seek continuous
improvement while maintaining a high degree of confidence that
subordinates will meet difficult challenges in a responsible manner.
Vrooms Decision- Making Model
- It is the proper leadership style for various situations, focusing on
the appropriate degrees of delegation of decision- making
authority.

SYMBOL

A-1

DECISION- MAKING
STYLE
AUTOCRATIC LEADER
Leader solves the problem or makes the
decision
himself
using
available
information.

A-2

DEGREE OF
SUBORDINATE
PARTICIPATION

None
Low

Leader obtains necessary information from


subordinates, and then decides.
C-1

CONSULTATIVE LEADER
Leader approaches subordinates

Moderate

C-2

individually getting their ideas then makes


decision.

Moderate

Leader shares the problem with


subordinates as a group, obtaining their
collective ideas and suggestions, then
decides.
G-2

High
GROUP DIRECTED
Leader shares the problem with
subordinates as a group. Lets the group
generate and evaluate alternative
solutions and then collectively decides.

CONTROLLING
WHAT IS CONTROLLING?
Controlling refers to the process of ascertaining whether organizational
objectives have been achieved; If not, why not; and determining what activities
should then be taken to achieve objectives better in the future. Controlling
completes the cycle of management functions. Objectives and goals that are set
at the planning stage are verified as to achievement or completion at any given
point in the organizing and implementing stages. When expectations are not met
at scheduled dates, corrective measures are usually undertaken.

IMPORTANCE OF CONTROLLING
When controlling is properly implemented, it will help the organization
achieved its goal the most efficient and effective manner possible. Deviation,
mistakes, and shortcomings happen inevitably. When they occur in daily
operations, they contribute to unnecessary expenditures which increase the cost
of producing goods and services. Proper control measures minimize the ill effects
of such negative occurrences. An effective inventory control system, for instance,
minimize if not totally eliminates losses in inventory. The importance of
controlling maybe illustrated as it is applied in a typical factory. If the required
standards daily output for individual works is 100 pieces, all workers who do not
produce the requirement are given sufficient time to improve; if no improvements
are forthcoming, they are asked to resign. This action will help the company keep
its overhead another costs at expected levels. If no such control is made, the
company will be faced with escalating production costs, which will place the
viability of the firm in jeopardy.

STEPS IN THE CONTROL PROCESS


The control process consist of four steps, namely
1. Establishing performance objectives and standards
2. Measuring actual performance
3. Comparing actual performance to objective and standards, and
4. Taking necessary action based on the result of the comparisons.

Establishing Performance Objectives and Standards


In controlling, what has to be achieved must first be determined. Examples
of such objectives and standards are as follows:
1. Sales targets- which are expressive in quantity or monetary terms;
2. Production targets- which are expressive in quantity or quality;
3. Worker attendance- which are expressive in terms of rate of absences;
4. Safety record- Which is expressive in number of accidents for given periods;
5. Supplies used which are expressed in quantity or monetary terms for given
periods; once objectives and standards are established, the measurement of
performance will be facilitated. Standards offer among various organizations. In
construction firms, project completion dates are useful standards. In chemical
manufacturing firms, certain pollution measures form the basis for standards
requirements. After the performance objectives and standards are established,
the methods for measuring performance must be designed. Every standard
established must be provided with its owned method for measurement.
Measuring Actual Performance
There is a need to measure actual performance so that when
shortcomings occur, adjustments could be made. The adjustments will depend
on the actual findings. The measuring tools will differ from organization to
organization, as each have their own unique objectives. Some firms, for instance,
will use annual growth rate as standard basis, while other firms will use some
other tools like the market share approach and position in the industry.
Comparing Actual Performance to Objectives and Standards
Once actual performance has been determine, this will be compared with
what the organization seeks to achieve. Actual production output, for instance,
will be compared with the target output; this may be illustrated as follows: A
construction firm entered into a contract with the government to construct a 100
kilometre road within ten months. It would be, then, reasonable for management
to expect at least 10kilometer to be constructed every month. As such, this must
be verified every month, or if possible, every week.

Taking Necessary Action


The purpose of comparing actual performance with the desired result is to
provide management with the opportunity to take corrective action when
necessary
If in the illustration cited above, the management of the construction firm found
out that only 15kilometers were finished after two months, then, any of the
following actions may be undertaken:
1. Hire additional personnel;
2. Use more equipment; or
3. Require overtime.

Steps in the Control Process

TYPES OF CONTROL
Control consists of three distinct types, namely:
1. Feed Forward Control
2. Concurrent Control, and
3. Feedback Control.
Feed Forward Control
When management anticipates problems and prevents their occurrence,
the type of control measure undertaken is called feed forward control. This type
of control provides the assurance that the required human and nonhuman
resources are in place before operations begin. An example is provided as
follow: The manager of a chemical manufacturing firm makes sure that the best
people are selected and hired to fill jobs. Materials required in the production

process are carefully checked to detect defects. The foregoing control measures
are designed to prevent wasting valuable resources. If these measures are not
undertaken, the likelihood that problems will occur is always present.
Concurrent Control
When operations are already ongoing and activities to detect variances
are made, concurrent control is said to be undertaken. It is always possible that
deviations from standards will happen the production process. When such
deviations occur, adjustments are made to ensure compliance with requirements.
Information on the adjustments is also necessary inputs in there-operational
phase. Examples of activities using concurrent control are as follows: The
manager of a construction firm constantly monitors the progress of the
companys projects. When construction is behind schedule, corrective measures
like the hiring of additional manpower are made. In a firm engaged in the
production and distribution of water, the chemical composition of the water
procured from various sources is checked thoroughly before they are distributed
to the consumers. The production manager of an electronics manufacturing firm
inspects regularly the outputs consisting of various electronics products coming
out of production line.
Feedback control
When information is gathered about a completed activity, and in order that
evaluation and steps for improvement are derived, feedback control is
undertaken. Corrective actions aimed at improving future activities are features
of feedback control. Feedback control validates objectives and standards. If
accomplishments consist only of percentage of standards requirements, the
standard may be too high or inappropriate. An example of feedback control is the
supervisor who discovers that continuous overtime work for factory workers
lowers the quality of output. The feedback information obtained leads to some
adjustments in the overtime schedule.

COMPONENTS OF ORGANIZATIONAL CONTROL SYSTEMS


An organizational control system consists of the following
1. Strategic plan
2. The long-range financial plan
3. The operating budget
4. Performance appraisals
5. Statistical Reports
6. Policies and Procedures
Strategic Plans
A strategic plan provides the basic control mechanism for the
organization. When there are indications that activities do not facilitate the
accomplishment of strategic goals, these activities are either set aside,

modified or expanded. These corrective measures are made possible with the
adoption of strategic plans.
The Long-Range Financial Plan
The planning horizon differs from company to company. Most firms will be
satisfied with one year. Engineering firms, however, will require longer term
financial plans. This is because of the long lead times needed for capital projects.
An example is the engineering firm assigned to construct the Light Rail Transit
(LRT) within three years. As such, the three-year financial plan will be very
useful. The financial plan recommends a direction for financial activities. If the
goal does not appear to be where the firm is headed, the control mechanism
should be made to work.
The Operating Budget
An operating budget indicates the expenditures, revenues, or profits
planned for some future period regarding operations. The figures appearing in
the budget are used as standard measurements for performance.
Performance Appraisals
Performance appraisal measures employee performance. As such, it
provides employees with a guide on how to do their jobs better in the future.
Performance appraisals also function as effective checks on new policies and
programs. For example, if a new equipment has been acquired for the use of an
employee, it would be useful to find out if it had a positive effect on his
performance.
Statistical Reports
Statistical reports pertain to those that contain data on various
developments within the firm. Among the information which may be found in
a statistical report pertains to the following:
1. labor efficiency rates
2. quality control rejects
3. accounts receivable
4. accounts payable
5. sales reports
6. accident reports
7. power consumption report
Policies and procedures
Policies refer to the framework within which the objectives must be
pursued. A procedure is a plan that describes the exact series of actions to be
taken in a given situation. An example of policy is as follow: Whenever two or
more activities compete for the companys attention, the client takes priority. An
example of a procedure is as follows: Procedure in the purchase of equipment:

1. the concerned manager forwards a request for purchase to the purchasing


officer;
2. the purchasing officer forwards the request to top management for approval;
3. when approved, the purchasing officer makes a canvass of the requested
item; if disapproved, the purchasing officer returns the form to the requesting
manager;
4. the purchasing officer negotiates with the lowest complying bidder. It is
expected that policies and procedures laid down by management will followed.
When theyre breached once in a while, management is provided with a way to
directly inquire on the deviations. As such, policies and procedures provide a
better means of controlling activities.

STRATEGIC CONTROL SYSTEMS


To be able to assure the accomplishment of the strategic objectives of the
company, strategic control systems become necessary. These systems consist
of the following:
1. financial analysis
2. financial ratio analysis

Financial Analysis
The success of most organizations depends heavily on its financial
performance. It is just fitting those certain measurements of financial
performance to be made so that whatever deviations from standards are found
out, corrective actions may be introduced.
Financial Ratio Analysis
Financial ratio analysis is a more elaborate approach used in controlling
activities. Under this method, one account appearing in the financial statement is
paired with another to constitute oration. The result will be compared with a
required norm which is usually related to what other companies in the industry
has achieved, or what the company has achieved in the past. When deviations
occur, explanations are sought in preparation for whatever action is necessary.
Financial ratios may be categorized into the following types:
1. liquidity
2. efficiency
3. financial leverage
4. profitability

Liquidity Ratios
These ratios assess the ability of a company to meet its current
obligations. The following ratios are important indicators of liquidity

1. Current ratio this shows the extent to which current assets of the
company can cover its current liabilities. The formula for computing
current ratio is as follows: Current ratio = current assets/current liabilities
2. Acid-test ratio this is a measure of the firms ability to payoff short-term
obligations with the use of current assets and without relying on sale of
inventories. Acid-test ratio = current assets inventories/current liabilities
Efficiency Ratios
The ratios show how effectively certain assets or liabilities are being used
in the production of goods and services.
1. Inventory turnover ratio this ratio measures the number of times an
inventory is turned over (or sold) each year. This is computed as follows:
Inventory turnover ratio = cost of goods sold/inventory
2. Fixed asset turnover this ratio is used to measure utilization of the
companys investment in its fixed assets, such as its plant and equipment.
Fixed asset turnover = net sales/net fixed assets

Financial Leverage Ratios


This is a group of ratios designed to assess the balance of financing
obtained through debt and equity sources. Some of the more important leverage
ratios are as follows:
1. Debt to total assets ratio this ratio shows how much of the firms assets
are financed by debt. It may be computed by using the following formula:
debt to total assets ratio = total debt/total assets
2. Times interest earned ratio this ratio measures the number of times that
earnings before interest and taxes cover or exceed the companys interest
expense. It may be computed by using the following formula: Times
interest earned ratio= profit before tax = interest expense/interest expense
Profitability Ratios
These ratios measure how much operating income or net income a
companys able to generate in relation to its assets, owners equity, and sales.
Among the more notable profitability ratios are as follows:
1. Profit margin ratio this ratio compares the net profit to the level of sales.
The formula used is as follows: Profit margin ratio = net profit/net sales
2. Return on assets ratio This ratio shows how much income the company
produces for every peso invested in assets. The formula used is as
follows: Return on assets ratio = net income/assets

Return on equity ratio this ratio measures the returns on the owners
investment. It may be arrived at by using the following formula: Return on equity
ratio = net income/equity

MANAGING PRODUCTION AND SERVICE OPERATIONS


OPERATIONS
It is an act or process of operating or functioning. A process or series of acts
involved in a particular form of work.

OPERATION MANAGEMENT
It is an area of management concerned with overseeing, designing, and
controlling the process of production and redesigning business operations in the
production of goods or services. It involves the responsibility of ensuring
that business operations are efficient in terms of using as few resources as
needed, and effective in terms of meeting customer requirements.

OPERATIONS AND THE ENGINEER MANAGER


The Operations Manager will be responsible for data entry, accounts payable,
payroll, grant report entry, managing the organizations HR, helping and creating
organizational and program budgets in collaboration with the ED and Program
Direct, and other misc. tasks.
Responsibilities:

Improve the operational systems, processes and policies in support of


organizations mission -- specifically, support better management
reporting, information flow and management, business process and
organizational planning.
Manage and increase the effectiveness and efficiency of Support Services
(HR, IT and Finance), through improvements to each function as well as
coordination and communication between support and business functions.
Play a significant role in long-term planning, including an initiative geared
toward operational excellence.
Oversee overall financial management, planning, systems and controls.
Management of agency budget in coordination with the Executive Director.
Development of individual program budgets
Invoicing to funding sources, including calculation of completed units of
service.

Payroll management, including tabulation of accrued employee benefits.


Disbursement of checks for agency expenses.
Organization of fiscal documents.
Regular meetings with Executive Director around fiscal planning.
Supervise and coach office manager on a weekly basis.

The engineer manager plans, direct, or coordinate activities in such fields as


architecture and engineering or research and development in these fields.
Responsibilities:

Confer with management, production, and marketing staff to discuss


project specifications and procedures.
Coordinate and direct projects, making detailed plans to accomplish goals
and directing the integration of technical activities.
Analyze technology, resource needs, and market demand, to plan and
assess the feasibility of projects.
Plan and direct the installation, testing, operation, maintenance, and repair
of facilities and equipment.
Direct, review, and approve product design and changes.
Recruit employees; assign, direct, and evaluate their work; and oversee
the development and maintenance of staff competence.

TYPES OF TRANSFORMATION PROCESS

Inputs to the transformation process

In order to make products and deliver services, a business needs


resources i.e. inputs. The textbooks often refer to these as factors of
production, which is a slightly boring way of describing real resources such as:
Labour
The time and effort of people involved in the business: employees, suppliers etc
Land
Think of this as the natural resources that are used by the
Capital
Capital includes physical assets such as machinery, computers, transport which
are used during production. Capital can also include finance.
Enterprise
Enterprise is the entrepreneurial fairy-dust that brings together or organizes the
other inputs. The entrepreneur takes the decisions about how much capital,
what kind of labour etc and how & when they are needed in the business.

High quality people are employed


(The best the business can afford at each stage of development) and that these
people are retained and invested in (training)
Capital investment is focused on efficiency and quality
Use of modern machinery or IT systems of the right kind can have a significant
effect whether a small business is able to compete.

Outputs to the transformation process

Sector

Business involved in

Primary

Extraction of natural resources (e.g. oil, gas) and farming


activities

Secondary

Production of finished goods and components (e.g. flat-screen


TVs, computer memory chips, games consoles, industrial
equipment, motor vehicles. The secondary sector is also often
referred to as the manufacturing sector.

Tertiary

Providing a service of some kind. E.g. health, travel, legal,


finance, building, security. The list of potential services is
endless. Think of this as any business activity that involves
people doing things for you! Retail businesses are in the tertiary
sector.

IMPORTANT PARTS OF PRODUCTIVE SYSTEMS

Inputs

It includes men, materials, machines, instructions, drawings, and paper work and
instructions.

Conversion process

It involves operations, mechanical or chemical, to change/convert inputs into


outputs. It also includes activities that assist conversion.

Output

Includes good and services (e.g. products, parts, paper work, served customers
etc.)