Individual characteristics

Individual characteristics are the unique qualities, traits, and features that make each person
different from others. These include aspects such as personality traits, temperament,
cognitive abilities, physical attributes, social skills, values, beliefs, and life experiences that
shape an individual's identity and behavior.
COMMUNICATION
Communication plays key role in the success of a manager. How much professional knowledge and
intelligence a manager possesses becomes immaterial if he is not able to communicate effectively
with his subordinates and create understanding in them. Directing abilities of a manager mainly
depend upon his communication skills. That is why organisation always emphasise on improving
communication skills of managers as well as employees. The word communication has been derived
from the Latin word ‘communis’ which means ‘common’ which consequently implies common
understanding. Communication is a social intercourse which is a two-way process which involves
exchanging information, ideas, thoughts, feelings, and messages between individuals or groups
through various methods, such as speaking, writing, gestures, or visual signals. It involves a sender
who conveys a message, a medium through which the message is transmitted, and a receiver who
interprets the message . communication is used a means to link people I an organisation to achieve
common goal . in other words Communication is the sum of all things one person does when he
wants to create understanding in the mind of another. It involves systematic and continuous process of
telling, listening and understanding.

IMPORTANCE -
Establishes effective leadership: Communication is the basis of leadership. Effective communication
helps to influence subordinates. While influencing people, leader should possess good communication
skills
Promotes cooperation and industrial peace: Efficient operation is the aim of all prudent management.
It may be possible only when there is industrial peace in the factory and mutual cooperation between
management and workers.two way communication promotes cooperation and mutual understanding
between the management and workers.
Acts as basis of decision making: Communication provides needed information for decision making.
In its absence, it may not be possible for the managers to take any meaningful decision. Only on the
basis of communication of relevant information one can take right decision.
Helps in smooth working of an enterprise: All organisational interactions depend on communications
It is only communication which makes smooth working of an enterprise possible
Motivates employees – open communication builds confidence among employees and help to reduce
misunderstanding and conflicts among employees which leads to high productivity . Communication
helps to boost morale of employees and managers.
TYPES-
Formal Communication
Formal communication flows through official channels designed in the organisation chart. This
communication may take place between a superior and subordinate, a subordinate and superior or
among same cadre employees or managers. The communications may be oral or written but generally
recorded and filed in the office. Formal communication may be further classified as – Vertical and
Horizontal. Vertical communication flows vertically, i.e., upwards or downwards through formal
channels. Upward communications refer to flow of communication from subordinate to superior
whereas downward communication indicates communication from a superior to subordinate. The
examples of upward communication are – application for grant of leave, submission of progress
report, request for grants, etc. Similarly, the examples of downward communication include – sending
notice to employees to attend a meeting, ordering subordinates to complete an assigned work, passing
on guidelines framed by top management to the subordinates, etc. Horizontal or lateral
communication takes place between one division and another. For example, a production manager
may contact marketing manager to discuss about schedule of product delivery, product design, quality,
etc.
The pattern through which communication flows within the organisation is generally indicated
through communication network. Different types of communication networks may operate in formal
organisation. Some of the popular communication networks are presented and discussed in given
figure.
Single chain: This network exists between a supervisor and his subordinates. Since many levels exist
in an organisation structure, communication flows from every superior to his subordinate through
single chain.
Wheel: In wheel network, all subordinates under one superior communicate through him only as he
acts as a hub of the wheel. The subordinates are not allowed to talk among themselves.
Circular: In circular network, the communication moves in a circle. Each person can communicate
with his adjoining two persons. In this network, communication flow is slow.
Free flow: In this network, each person can communicate with others freely. The flow of
communication is fast in this network.
Inverted V: In this network, a subordinate is allowed to communicate with his immediate superior as
well as his superiors superior. However, in later case, only prescribed communication takes place.
Informal Communication
Communication that takes place without following the formal lines of communication is said to be
informal communication. Informal system of communication is generally referred to as the
‘grapevine’ because it spreads throughout the organisation with its branches going out in all directions
in utter disregard to the levels of authority. The informal communication arises out of needs of
employees to exchange their views, which cannot be done through formal channels. Workers chit
chating in a canteen about the behaviour of the superior, discussing about rumours that some
employees are likely to be transferred are some examples of informal communications. The
grapevine/ informal communication spreads rapidly and sometimes gets distorted. It is very difficult
to detect the source of such communication. It also leads to generate rumours which are not authentic.
People’s behaviour is affected by rumours and informal discussions and sometimes may hamper work
environment. Sometimes, grapevine channels may be helpful as they carry information rapidly and,
therefore, may be useful to the manager at times. Informal channels are used by the managers to
transmit information so as to know the reactions of his/her subordinates. An intelligent manager
should make use of positive aspects of informal channels and minimise negative aspects of this
channel of communication.

Grapevine Network
Grapevine communication may follow different types of network.
In single strand network, each person communicates to the other in sequence.
In gossip network, each person communicates with all on non-selective basis.
In probability network, the individual communicates randomly with other individual
. In cluster, the individual communicates with only those people whom he trusts. Of these four types
of networks, cluster is the most popular in organisations.
ADVANTAGES (FORMAL)
LONG TERM RECORD
QUICK PERFORMANCE OF TASK AS TIMELY TRANSMITION OF INFO.
MAINTAINS DISCIPLINE AND DECORUM IN ORGANISATION

DISADVANTAGE
Time consuming
No interpersonal relationship
Do not satisfy social needs of employees

Advantages ( INFORMAL)
satisfy social needs of employees
maintains interpersonal relationship
Quick transmittion of info.
Sometimes help the organistion to get out of the problem as subordinates are free to respond

DISADVANTAGE
Spread rumours
Hampers effective working environment
Leads to distortion of original msg
Info. Is unreliable

Johari window
Monetary Incentives
Monetary incentives are financial rewards given to employees to motivate and
enhance their performance. These incentives are tangible and directly related to the
compensation or financial benefits an employee receives.

Salaries and Wages

Explanation: Regular payments made to employees in exchange for their work and
services.
Importance: A primary motivator ensuring employees' financial stability and
satisfaction with their basic compensation.

Bonuses
Explanation: Extra payments given to employees for achieving specific targets or
exceptional performance.
Importance: Encourages employees to exceed performance expectations and
contributes to organizational goals.

Commissions

Explanation: Earnings based on a percentage of sales or revenue generated by an

employee.
Importance: Highly motivating for sales roles as it directly ties earnings to
productivity and success.

Profit Sharing

Explanation: A system where employees receive a share of the company’s profits.

Importance: Aligns employees’ interests with the company’s success, fostering a
sense of ownership and responsibility.

Stock Options

Explanation: Grants employees the option to buy company stock at a future date at
a predetermined price.
Importance: Motivates employees to contribute to the company’s long-term success
and can lead to significant financial gain.

Performance Incentives

Explanation: Financial rewards based on individual, team, or company-wide

performance metrics.
Importance: Directly links financial rewards to performance, encouraging employees
to meet and exceed objectives.

Retention Bonuses

Explanation: Payments given to key employees to retain them during critical times
or through organizational changes.
Importance: Helps in retaining top talent and ensures continuity and stability within
the organization.

Holiday Pay and Overtime

Explanation: Additional pay provided for working during holidays or beyond regular
working hours.
Importance: Compensates employees for their extra efforts and time, maintaining
morale and productivity.

Allowances and Perks

Explanation: Financial benefits such as travel allowances, housing allowances, and

meal subsidies.
Importance: Enhances overall compensation packages and meets specific needs of
employees, improving satisfaction and loyalty.

Retirement Benefits

Explanation: Financial contributions made by the employer towards employees’

retirement savings plans.
Importance: Provides long-term financial security, making the job more attractive
and promoting long-term retention
NON MONETARY

Non-monetary incentives are rewards that do not involve direct financial compensation but
aim to enhance employees' motivation and satisfaction through other mean . Intangible

Recognition and Awards: Public acknowledgment of achievements, such as

employee of the month.
Career Development Opportunities: Training, professional development, and
career advancement opportunities.
Work-Life Balance Initiatives: Flexible working hours, remote work options, and
generous leave policies.
Job Enrichment: Adding meaningful tasks, increasing variety, and granting more
autonomy in job roles.
Positive Work Environment: Creating a supportive, inclusive, and engaging
workplace culture.
Employee Wellness Programs: Health initiatives like fitness programs, counseling
services, and health screenings.
Team Building Activities: Events and activities that promote teamwork and
strengthen relationships.
Autonomy and Empowerment: Granting employees control over their work and
decision-making processes.
Workplace Amenities: Providing amenities such as comfortable workspaces,
recreational facilities, and on-site services.
Social Recognition: Informal praise and acknowledgment from peers and leaders,
such as verbal praise or thank-you notes.

INTRINSIC MOTIVATION

ADV. INTRINSIC
Enhanced Creativity: When people are intrinsically motivated, they are more likely
to be creative and innovative, as they are more willing to explore new ideas and take
risks.

Higher Quality of Work: Intrinsically motivated individuals tend to produce higher

quality work because they care more about the process and outcome of their tasks.

Increased Job Satisfaction: Employees who are intrinsically motivated typically

experience higher job satisfaction because they find their work meaningful and
enjoyable.

Resilience to Failure: Individuals motivated by intrinsic factors are more resilient to

failure because they derive satisfaction from the effort rather than just the outcome.
Ethical Behavior: People driven by intrinsic motivation are less likely to engage in
unethical behavior, as their actions are guided by personal values and satisfaction
rather than external rewards.

EXTRINSIC

Increases Short-Term Motivation: When immediate results are needed, extrinsic

rewards can provide the necessary motivation to achieve short-term goals.

Versatile Application: Extrinsic rewards can be applied in various contexts, such as

education, workplace, and therapy, to motivate different types of behaviors.

Enhanced Productivity: In a work environment, extrinsic rewards can lead to

enhanced productivity, as employees are motivated by bonuses, promotions, and
other tangible benefits.

Attracting Talent: Competitive extrinsic rewards, such as high salaries and bonuses,
can attract skilled and talented individuals to an organization.

Effective for Routine Tasks: Extrinsic motivation is particularly effective for routine
or monotonous tasks where intrinsic motivation might be lacking.

DIS

INTRINSIC
Less Immediate: The effects of intrinsic motivation are often less immediate
compared to extrinsic motivation, which can offer quick rewards and recognition.

Potential for Burnout: Individuals who are highly intrinsically motivated may
overextend themselves, leading to burnout, especially if they do not balance their
passion with self-care.

Resource Intensive: Creating an environment that fosters intrinsic motivation can be

resource-intensive, requiring time, effort, and creativity from leaders and educators.
Less Tangible Measurement: Intrinsic motivation is harder to measure and quantify
compared to extrinsic rewards, making it challenging to assess progress and impact.

May Require External Triggers: Sometimes, intrinsic motivation needs an initial

push or trigger from external sources to get started, especially for tasks that are
initially perceived as uninteresting.

EXTRINSIC
Diminishing Returns: Over time, the effectiveness of extrinsic rewards can diminish,
requiring increasingly larger rewards to achieve the same level of motivation.

Undermines Intrinsic Motivation: Relying too heavily on extrinsic rewards can

undermine intrinsic motivation, reducing overall engagement and satisfaction with
the task.

Short-Term Focus: Extrinsic motivation often promotes a short-term focus on

immediate rewards rather than long-term goals and personal growth.

Creates Dependency: Individuals may become dependent on external rewards,

losing the ability to motivate themselves without them.

Potential for Unethical Behavior: High-stakes extrinsic rewards can sometimes lead
to unethical behavior, such as cutting corners or manipulating results to achieve the
rewards

Reduces job satisfaction

Intrinsic rewards
Sense of meaningfulness. This reward involves the meaningfulness or importance of the
purpose you are trying to fulfill. You feel that you have an opportunity to accomplish
something of real value—something that matters in the larger scheme of things. You feel
that you are on a path that is worth your time and energy, giving you a strong sense of
purpose or direction.

Sense of choice. You feel free to choose how to accomplish your work—to use your best
judgment to select those work activities that make the most sense to you and to perform
them in ways that seem appropriate. You feel ownership of your work, believe in the
approach you are taking, and feel responsible for making it work.
Sense of competence. You feel that you are handling your work activities well—that your
performance of these activities meets or exceeds your personal standards, and that you are
doing good, high-quality work. You feel a sense of satisfaction, pride, or even artistry in how
well you handle these activities.

Sense of progress. You are encouraged that your efforts are really accomplishing
something. You feel that your work is on track and moving in the right direction. You see
convincing signs that things are working out, giving you confidence in the choices you have
made and confidence in the future.

Contemporary motivational practices

1. Employee Recognition Programs
Explanation: These programs acknowledge and reward employees for their achievements
and contributions, fostering a culture of appreciation and recognition.
Example: Companies use platforms like Bonusly or Kudos to allow peers and managers to
give real-time recognition and rewards.

2. Flexible Work Arrangements

Explanation: Providing employees with flexible working hours and remote work options to
accommodate their personal and professional needs, enhancing work-life balance.
Example: Tech companies like Google and Microsoft offer remote work options and flexible
schedules to boost employee satisfaction and productivity.

3. Professional Development Opportunities

Explanation: Offering continuous learning and development programs to help employees
grow their skills and advance their careers.
Example: Companies provide access to online courses, workshops, and training sessions
through platforms like LinkedIn Learning or Coursera.

4. Purpose-Driven Work
Explanation: Aligning work tasks with the company's mission and values to give employees
a sense of purpose and connection to a larger goal.
Example: Non-profit organizations and social enterprises emphasize the impact of their work
on society, motivating employees through a sense of meaningful contribution.

5. Performance Feedback and Coaching

Explanation: Regular, constructive feedback and personalized coaching to help employees
improve their performance and develop their potential.
Example: Implementing systems for continuous feedback rather than annual reviews, using
tools like 360-degree feedback and one-on-one coaching sessions.

6. Wellness Programs
Explanation: Promoting physical, mental, and emotional well-being through wellness
initiatives and programs.
Example: Companies offer gym memberships, mental health resources, mindfulness
programs, and wellness challenges to encourage a healthy lifestyle.

8. Employee Autonomy
Explanation: Allowing employees more control over how they complete their tasks and
make decisions, fostering a sense of ownership and responsibility.
Example: Implementing flexible project management approaches like Agile or Scrum, where
teams have more autonomy and self-management.

9. Collaborative Work Environment

Explanation: Creating an environment that encourages teamwork, collaboration, and open
communication.
Example: Using collaborative tools like Slack, Trello, or Microsoft Teams to facilitate
communication and project collaboration.
.
 Nature Leadership refers to the concept that leadership qualities and abilities are
innate. Proponents of this view argue that certain individuals are born with the traits
and characteristics that make them effective leaders. These inherent qualities might
include aspects such as intelligence, charisma, decisiveness, and confidence. This
perspective is often linked to the "Great Man Theory" of leadership, which suggests
that great leaders are born, not made.

Nurture Leadership posits that leadership skills are developed through experience,
education, and environment. This view emphasizes the role of learning, training, and
personal development in shaping a leader. According to this perspective, anyone can
become a leader through the acquisition of necessary skills and knowledge,
mentorship, and practice. The idea is that leadership is a result of external influences
and personal efforts rather than genetic predisposition.

DIFFERENCE
Nature Leadership Theory believes that a leader is born with certain traits
and characteristics that make them suited for leadership, while Nurture
Leadership Theory focuses on developing qualities in individuals through
experience and training.

Nature Leadership Theory relies heavily on genetic factors to determine

one’s leadership potential, whereas Nurture Leadership Theory emphasizes
the importance of external factors such as education and social interactions
, personal development , environment etc. in the development of a strong
leader.

Nature Leadership Theory states that natural abilities play a dominant role
in determining leadership success, while Nurture Leadership Theory stresses
the importance of honing and sharpening one’s skills to become an
effective leader.

Nature Leadership Theory puts less emphasis on external motivational

factors such as rewards or incentives, whereas Nurture Leadership Theory
emphasizes these elements as essential catalysts for inspiring strong
performance from leaders.

Nature Leadership Theory emphasizes the potential that a person is born

with, while Nurture Leadership Theory recognizes the importance of
learning and growth
 Pros and Cons of Nature Leadership
Pros:

Early Identification: Since traits are innate, potential leaders can be identified early,
allowing for targeted development and opportunities from a young age.
Consistency: Natural leaders often exhibit consistent behavior and characteristics,
providing reliable leadership styles.
Innate Confidence: Individuals with natural leadership traits may exhibit high levels
of self-confidence, which can inspire and motivate others.

Cons:

Limited Pool: Relying on innate traits means the pool of potential leaders is limited
to those who are born with certain characteristics, potentially overlooking others who
could become effective leaders through development.
Fixed Mindset: This approach can promote a fixed mindset, discouraging the idea
that leadership skills can be developed and improved over time.
Bias and Inequality: It can lead to bias and inequality, as certain groups may be
favored based on perceived natural traits, rather than actual leadership abilities or
potential for growth.

Pros and Cons of Nurture Leadership

Pros:

Development Opportunities: Emphasizes that leadership skills can be developed,

providing opportunities for a broader range of individuals to become leaders.
Adaptability: Encourages continuous learning and adaptability, which are crucial for
effective leadership in a changing environment.
Diversity: Promotes diversity in leadership by recognizing that different experiences
and backgrounds contribute to effective leadership.

Cons:

Time and Resources: Developing leadership skills through nurture requires

significant time, effort, and resources, which might not be feasible for all
organizations or individuals.
Inconsistent Results: Not all individuals may respond equally to training and
development efforts, leading to varying outcomes in leadership effectiveness.
Overemphasis on Training: There is a risk of overemphasizing formal training
programs while neglecting the value of natural talent and intuition in leadership.
10 Key Differences Between a Leader and a Manager: Full
Explanations

Vision vs. Goals:

Leader: Leaders are visionaries who create a compelling picture of the future that
inspires others to follow. They focus on broad, long-term objectives and the overall
direction of the organization. For example, a leader might envision the company
becoming a market leader in sustainable products.
Manager: Managers set specific, measurable, and short-term goals. They break
down the vision into actionable tasks and ensure that these tasks are completed
efficiently. For instance, a manager might set quarterly sales targets to achieve the
broader vision of market leadership.

People vs. Processes:

Leader: Leaders prioritize the development and well-being of their people. They
invest time in understanding their team members' strengths, weaknesses, and
aspirations to help them grow and succeed. For example, a leader might mentor a
junior employee to prepare them for a future leadership role.
Manager: Managers focus on optimizing processes and systems to achieve
efficiency and effectiveness. They are concerned with organizing resources,
managing workflows, and ensuring that tasks are completed correctly. For example, a
manager might streamline a workflow to reduce production time.

Risk vs. Safety:

Leader: Leaders are willing to take risks to achieve their vision. They encourage
creativity and are open to new ideas, even if they involve uncertainty. For example, a
leader might invest in an unproven technology that has the potential to revolutionize
the industry.
Manager: Managers aim to minimize risks and ensure safety and predictability. They
prefer to stick with proven methods and avoid uncertainties that could disrupt
operations. For example, a manager might implement strict quality control measures
to avoid production errors.
.

Future vs. Present:

Leader: Leaders are future-oriented, always thinking about the long-term direction
and growth of the organization. They anticipate future trends and prepare the
organization to meet upcoming challenges. For example, a leader might develop a
strategic plan to enter new markets.
Manager: Managers are focused on the present, ensuring that current operations
run smoothly and efficiently. They address immediate tasks and issues to meet short-
term objectives. For example, a manager might resolve a customer complaint to
maintain satisfaction and loyalty.

Relationship Building vs. Task Management:

Leader: Leaders invest in building strong relationships with their team members.
They foster a sense of community and teamwork, creating a positive organizational
culture. For example, a leader might organize team-building activities to strengthen
bonds among employees.
Manager: Managers emphasize task management, ensuring that specific duties are
completed on time and to the required standard. They allocate tasks based on
individual strengths and monitor progress. For example, a manager might create
detailed project plans and assign tasks to team members.

Personal Development vs. Performance Management:

Leader: Leaders focus on the personal growth and development of their team
members. They provide opportunities for learning and career advancement,
recognizing that developing their people is key to long-term success. For example, a
leader might sponsor professional development courses for their team.
Manager: Managers are concerned with monitoring and improving team
performance and productivity. They use performance appraisals and feedback to
ensure that team members meet their objectives. For example, a manager might
conduct regular performance reviews to assess progress and provide corrective
actions if needed.

Innovation vs. Efficiency:

Leader: Leaders encourage innovative thinking and the exploration of new ideas.
They create an environment where creativity is valued and new solutions are sought.
For example, a leader might launch an innovation lab to develop cutting-edge
products.
Manager: Managers focus on achieving efficiency by optimizing existing workflows
and processes. They strive to make operations as smooth and cost-effective as
possible. For example, a manager might implement lean manufacturing techniques
to reduce waste and improve efficiency.
Team

A team is a cohesive unit of individuals who work collaboratively towards a common

goal or objective. Each member of a team typically has a specific role and
responsibilities, and the success of the team relies on the interdependence and
collective efforts of all its members. Teams are characterized by shared
accountability, structured communication, and a strong sense of purpose. Examples
include project teams, sports teams, and work units.

Group

A group is a collection of individuals who come together, often based on a

shared interest or characteristic, but not necessarily with the intent to achieve
a common goal rather they all have a different goals towards which they
collectively work . . Group members may interact and share information, but
they generally operate independently and are not as interdependent as a
team. they all have separate accountability . There are two types of
groups: informal groups and formal groups. Informal groups are
formed naturally around common interests, identities, or social
goals. Formal groups are created by company leaders to perform
a specific task for an organization.
Performance - team success(achievement of common goal)\\ individual
success
Roles and responsibilities- defined roles n \\ might not have specific
responsibilities
 responsibilities
Definition , accountability , interdependence , goals , synergy ,
performance , roles

QUALITIES OF A GOOD LEADER

Integrity and honesty

Physical appearance
Knowledge
Commitment
Delegation and empowerment
Decision making skills
God sense of humour
Good communication skills
Problem solving
Futuristic
Organisational structure
As an organisation grows, coordination becomes difficult due to the emergence of new functions and
increase in structural hierarchies. Thus, for an organisation to function smoothly and face
environmental changes, it becomes necessary to pay attention to its structure. The organisation
structure can be defined as the framework within which managerial and operating tasks are
performed. It specifies the relationships between people, work and resources. It allows correlation and
coordination among human, physical and financial resources and this enables a business enterprise to
accomplish desired goals. The organisation structure of a firm is shown in an organisation chart. The
span of management, to a large extent gives shape to the organisational structure. Span of
management refers to the number of subordinates that can be effectively managed by a superior. This
determines the levels of management in the structure. A proper organisation structure is essential to
ensure a smooth flow of communication and better control over the operations of a business
enterprise.