MMS DIV: A

SUBJECT: PERSPECTIVE MANAGEMENT

TAUGHT BY: Prof .Dr Sandeep Sawant

Member name Roll no.Anil kumar Mishra 08

Jitendra Gupta 22Ranjit Kakade 42

Abubakar Siddiquie 02 Fazlur Rehman 17

Q.1 What are the three major types of skills manager need to develop? Why is each essential to be an effective manager?

ANS:As a manager every person has to make decisions but it is quite difficult to certain decisions because of uncertainty and incomplete information. For that one has to take risk. So the person must have three managerial skills which are essential for take a risky decision. They are as follows:

1. Conceptual skills2. Interpersonal skills3. Technical skills

These skills plays very vital role as it reflects personal ability and position of a manager in organisation hierarchy.

1. Conceptual skills : Conceptual skills includes the ability of a manager to see organisation as a whole for that one should have proper, vision imagination and knowledge to maintain co-ordination between people and functions integrated with different factors. Also a manager should be more analytic to identify the problems and developing the proper alternatives to resolve the problems and one should also make use of available resource for the same.

2. Interpersonal Skills: Interpersonal skills mean the ability of a manager to work with different kind of people of different mind-sets. Understanding them effectively and getting work done by them in effective manner. These skills are also helpful to build trust among the subordinate’s at all organisational levels.

3. Technical Skills: To be an effective manager everyone should have technical skills which mainly encompasses on ability to apply specialized knowledge and expertise which helps managers to perform effectively and to get organisational goals and objectives. For egg: A civil engineer must know all the aspects terms and conditions to create better infrastructure.

Q.2 Why do managers need to be able to think globally and act locally?

ANS: One of the key premises in Global Literacy’s is that, in the borderless global marketplace, culture actually matters more, not less. “All business is global business, all customers are local customers, and competition comes from everywhere,” “The question is, how do you survive in this new multicultural marketplace? We really have to understand the importance of culture to make that happen. And that the world has changed, but the software inside of our heads for how to lead and conduct business hasn’t really changed.” Along with cultural understanding, the book reports that there are new “business literacy’s” that

managers and executives must learn in order to do business in the global marketplace. They are:

Personal literacy: understanding and valuing yourself. “This is about self-awareness, self-renewal, and having strong values, but being flexible enough to know that people from other cultures have different values and ethics,” “It also means being able to make fast decisions but balance that with thoughtful consideration. Asians are probably best at personal literacy. They’re able to live and work in contradiction and ambiguity, holding paradoxes and opposing forces in their heads at the same time.”

Social literacy: engaging and challenging other people. “We learn from the Japanese about this because…so much of what gets said is nonverbal, and they learn to read environments, contexts, and circumstances very well. We in the United States are big talkers.”

Business literacy: focusing and mobilizing your business. North American businesses, particularly those in the U.S., have perfected this skill. “We’re the world’s problem solvers,” he said. “The business of America is business. We’re a fast-paced, action-oriented society. We love building new things and tearing them down when they don’t work. We’re good at navigating through chaos and leading people through change.”

Cultural literacy: valuing and leveraging cultural differences. European business professionals possess this skill in abundance, Rosen explained. “These are people who understand their own cultural heritage, but they also recognize their own strengths and shortcomings,” he said. “They’re inquisitive internationalists, and they really try to build bridges across cultures.”

Because of all this reasons we have to think globally and act locally for achieving success.

Q.3 What is an entrepreneurial mindset & how does a manager develop & apply it?

ANS:At times, special organizational arrangements mend to be made for fostering & utilizing entrepreneurship. Frequently, entrepreneurship is thought to apply in managing small business, but many authors now expand the concept to large organization & to managers carrying out entrepreneurial roles through which they initiate change to take advantage of opportunities. Although it is common to look for the “entrepreneurial personality “in people. One should look for a commitment entrepreneurship is innovation that is goal oriented change to utilize the enterprise’s potential. As entrepreneurs, managers try to improve the situation. Entrepreneur is a person who does similar things but outside the organizational setting.Entrepreneur have the ability to see an opportunity, to obtain the necessary capital, labour & other inputs, & then put together an operation successfully. They are willing to take

personnel risk of success 7 failure. The term entrepreneur designates an enterprising person working either within or outside the organization. It is a managerial responsibility to create an environment for effective & efficient achievement of group goals, managers must promote opportunities for entrepreneur to utilize their potential for innovation.Enterpreneur take personnel risk in initiating change, & they expect to be rewarded for it. The taking of reasonable risk will at times result in failure, but this must be tolerated. Finally entrepreneurs need some degree of freedom to pursue their ideas, this in turn require that sufficient authority to be delegated. The personal risks for entrepreneur who have their own business are of different kind & failure may mean bankruptcy. It is common that these individuals are not well liked by their colleagues, & their contributions are often not sufficient lee appreciated. It is therefore surprising that many entrepreneurs leave large companies & start their own business.

Q.4 How do advance in technologies, globalization & entrepreneurship affect business?

ANS:To be successful in 21th century companies must take advantage of the new information technology especially the internet, globalisation, &entrepreneurship. Advance in technology: Technology & especially information technology has a preservative impact on both organization & individual .The world wide web & the internet connect people organization through a global network. Electronic commerce is increasingly used for transaction between individual & companies as well as business. The number of people connecting to internet varies among countries like America, Canada, Europe, China etc. have high network access rates, eg in china has a population of 18 million, and over 16 million are cell phone subscribers. Another trend is the use of m-commerce, that is mobile or wireless commerce for buying & selling goods using for example cellular telephones or personal digital assistants. Increasingly people can communicate without companies by using wireless devices.

Globalisation : The social major trend is globalization. Most major cooperation has an international presence. The gain from globalization not only benefited western cooperation but also result in higher incomes for people in other countries such as china. Clearly managers must develop an international perspective.

Enterpreneurship :An increasing focus on entrepreneurship as a national & organization imperative is unmistakably clear.Enterpreneurship is seen by government as a means to increase employment & prosperity among their population, while organization-large & small find that entrepreneurial innovation & expansion into new markets are essential to their success & survival in increasingly competitive markets that are linked globally through

sophisticated & ever present technologies.Enterpreneurship is a creative process that is centered in the notion of identifying market opportunities & unmet needs. It is a building solution that meets the needs & bring value to customers .Entrepreneurs build organization that provide produces that alleviate peoples pain(egg pharmaceutical companies )or provide the means for people to enhance their own lives through sophisticated telecommunication (egg information technology)

Q.5 Explain in detail the process of change? (Lewin’s Model)

ANS:The concept of “change management” is a familiar one in most businesses today. But, how businesses manage change (and how successful they are at it) varies enormously depending on the nature of the business, the change and the people involved. And a key part of this depends on how far people within it understand the change process.

One of the cornerstone models for understanding organizational change was developed by Kurt Lewin back in the 1950s, and still holds true today. His model is known as Unfreeze – Change – Refreeze, refers to the three-stage process of change he describes. Lewin, a physicist as well as social scientist, explained organizational change using the analogy of changing the shape of a block of ice.

Understanding Lewin’s Model

If you have a large cube of ice, but realizes that what you want is a cone of ice, what do you do? First you must melt the ice to make it amenable to change (unfreeze). Then you must mold the iced water into the shape you want (change). Finally, you must solidify the new shape (refreeze).

 

By looking at change as process with distinct stages, you can prepare yourself for

what is coming and make a plan to manage the transition – looking before you leap, so to speak. All too often, people go into change blindly, causing much unnecessary turmoil and chaos.

To begin any successful change process, you must first start by understanding why the change must take place. As Lewin put it, “Motivation for change must be generated before change can occur. One must be helped to re-examine many cherished assumptions about oneself and one’s relations to others.” This is the unfreezing stage from which change begins.

Practical Steps for Using the Framework:

Unfreeze

1. Determine what needs to change

Survey the organization to understand the current state 

Understand why change has to take place. 

2. Ensure there is strong support from upper management

Use Stakeholder Analysis and Stakeholder Management to identify and win the support of key people within the organization 

Frame the issue as one of organization-wide importance. 

3. Create the need for change

Create a compelling message as to why change has to occur 

Use your vision and strategy as supporting evidence 

Communicate the vision in terms of the change required 

Emphasize the “why”.

4. Manage and understand the doubts and concerns

Remain open to employee concerns and address in terms of the need to change.

Change

1. Communicate often

Do so throughout the planning and implementation of the changes 

Describe the benefits 

Explain exactly the how the changes will effect everyone 

Prepare everyone for what is coming.

2. Dispel Rumours

Answer questions openly and honestly 

Deal with problems immediately 

Relate the need for change back to operational necessities.

3. Empower action

Provide plenty of options for employee involvement 

Have line managers provide day–to–day direction.

4. Involve people in the process

Generate short-term successes to reinforce the change 

Negotiate with external stakeholders as necessary (such as employee organizations).

Refreeze

1. Anchor the changes into the culture

Identity what supports the change 

Identify barriers to sustaining change.

2. Develop ways to sustain the change

Ensure leadership support 

Create a reward system 

Establish feedback systems 

Adapt the organizational structure as necessary.

3. Provide support and training

Keep everyone informed and supported.

4. Celebrate success!

Q.7 In order to change your leadership capabilities, which element must you assess and which element requires action? Are leadership and management the same? Why or why not?

Ans: No, leadership and management both have essential roles in the function and effectiveness of organizations; they are not the same thing. They are, in fact, distinct and separate processes, serving different purposes. Management provides the organization with predictability, consistency and stability. Leadership positions people and organizations for change. The danger of failing to make the distinction between management and leadership is that people mistakenly begin to equate leadership — a process of influence — with a position of authority. And most of us in our careers have encountered the unfortunate situation where an individual charged with managing an organization has been placed in a position of authority but has lacked the ability to exercise effective leadership. Management and leadership represent different roles within an organization, but not different classes of people. In a fortunate organization, the same individual may be both an expert manager and a skillful leader. I hold the popular leadership press and some of its most well-liked authors responsible for the tendency to describe leaders and managers as different types of people and for the temptation to cast leadership in a positive light and management in a negative.

Q.8 Identify a Business or sport leader who you think is highly effective, and explain why you think he or she is highly effective?

Ans: My most favourite business leader is BILL GATES.

A leader with vision of “every desk has computer and Microsoft’s software loaded on every computer”.

A leader with inborn high intellectual power because at the age of 13 he wrote the computer program. He has passion about computer .for that he left Harvard Business School and joined software development.

He has the some of the characteristic listed below……..

1. MAKE YOURSELF INTELLIGENT Bill Gates told that success also depends on your intelligence. Different people have different level of intelligence. Intelligence becomes a problem area for many a people because they think like physical strength all the people can’t be equal in it. True. But like physical strength any person can try to develop his intelligence. .

2. BE SINCERE IN YOUR EFFORTSIntegrity is always useful whether it is business or family life. Deceiving causes friction in human relations and hampers your progress. Try to be sincere in everything – in your efforts, relations, and business policies.

3. CREATE A GOOD TEAMCreating a team of talented people is necessary to rise fast in business. The motto of modern business world is ‘combine and succeed’. For a single person it has become very difficult to survive or succeed in big business jungle. Even Bill Gates understood the value of a good team when he was just a high school student. He joined hands with Paul Allen to find a company (Traf-o-Data) to sell traffic counting systems to state governments and help his school’s payroll system computerize.

4. LEAD YOUR PEOPLE TO VICTORY

Your team will work better if you are able to provide good leadership to them. For a businessman his workforce is like his family. He shares its joys and sorrows and motivates them time to time to better and achieve the targets. By proper rewards and punishment methods he keeps his workforce disciplined and united and lead them to big success. He always shares his gains with his employees or assistants by giving promotions, special

increments or other rewards.

Q.9 In what way might being an effective follower help to prepare person for become an effective leader? Ans: The effective leadership and fellowship for an organization to accomplish its goals. It’s impossible to be a leader without a following. To get things done, a leader must point the way to a common goal and the rest of the organization must follow. By the same token, a leader must earn the right to a following. It’s a two-way street, a complex dance, an equal partnership. So, because followship is equally as important as leadership. When you became effective follower you spend your time doing the things rather than complaining about what’s not right, they get involved in helping the cause. Many companies bulging with middle managers are finding that those who can follow a firm's leaders rather than compete to become leaders themselves are important for maintaining stability in the business. More and more firms are encouraging followership to improve company performance. It is said that "Effective followers maintain their independence as critical thinkers. They are team players, up to the point where they think something unwise or unethical is being done". The characteristics of effective leadership and effective followership are almost identical. you nor I cannot be a good leader unless we are or can be a good follower.

Q.10 What are elements of the seven S models? Discuss in detail?

Seven S model:

ANS:The seven S model is a framework for analysing organization and their effectiveness. It looks at the seven key elements that make the organization successful or not strategy, structure, system, style, skills, staff and shared values.

1. Shared Values:Shared values are commonly held beliefs, mind-set, and assumption that shape how an organizational behaves its corporate culture. They are interconnecting centre of the 7 S model.

2. Structure:Structure is the organizational chart and associated information that show who report to whom and how task are divided up and integrated. In other words structure describes the level of authority and accountability in an organization. Other dept. function division decentralised matrix, network. Holding, etc.

3. Strategy : It is a plan to reach identified goal and set a decision and action and sustainable advantages over the competitor.

4. System : System defines the flow of activity involved in daily operation of business including core process and its support system. System includea) Business system.b) Process management system c) Management information system.d) Innovation system.e) Performance management system.f) Financial system.g) Compensation system. h) Customer satisfaction monitoring system.

5. Style:It refers to cultural system of an organization how manager handles the organization to achieve the goals how managers save their time and utilise it for organization.

6. Skills:It refers to capability, soft skills, and other skills require for the organization.

Q.11 What does SWOT stands for?

ANS:Swot stands for strength, weakness, opportunities and threats. It is a way of summarizing the current state of a company and helping to devise a plan for the future, one that employs the existing strengths, redresses existing weakness, exploits opportunities and defends against threats.

Strengths:

1. Identify skills and capabilities that you have.2. What can you do particularly will relative to rivals.3. What resource do you have?

Weakness:

1. What do rival do better than you.2. What generate the most customer’s dissatisfaction and complaints.3. What process and activities can you improve?

Opportunities:

1. How are your customers and their needs changing?2. Are there new markets for your strengths?3. Are there new ways of producing your products?

Threats:

1. Are customers needed changing away from your product?2. What are your competitors developing?3. Is new competition coming?4. Are sales growing slower than the industry average?

Q.12) Explain BCG Matrix in detail?

Ans: The BCG Growth-Share Matrix is a portfolio planning model developed by Bruce Henderson of the Boston Consulting Group in the early 1970's. It is based on the observation that a company's business units can be classified into four categories based on combinations of market growth and market share relative to the largest competitor, hence the name "growth-share". Market growth serves as a proxy for industry attractiveness, and relative market share serves as a proxy for competitive advantage. The growth-share matrix thus maps the business unit positions within these two important determinants of profitability.

BCG Growth-Share MatrixThis framework assumes that an increase in relative market share will result in an increase in the generation of cash. This assumption often is true because of the experience curve increased relative market share implies that the firm is moving forward on the experience curve relative to its competitors, thus developing a cost advantage. A second assumption is that a growing market requires investment in assets to increase capacity and therefore results in the consumption of cash. Thus the position of a business on the growth-share matrix provides an indication of its cash generation and its cash consumption.Henderson reasoned that the cash required by rapidly growing business units could be obtained from the firm's other business units that were at a more mature stage and generating significant cash. By investing to become the market share leader in a rapidly growing market, the business unit could move along the experience curve and develop a cost advantage. From this reasoning, the BCG Growth-Share Matrix was born.The four categories are:

1) Dogs - Dogs have low market share and a low growth rate and thus neither generate nor consume a large amount of cash. However, dogs are cash traps because of the money tied up in a business that has little potential. Such businesses are candidates for divestiture.

2) Question marks - Question marks are growing rapidly and thus consume large amounts of cash, but because they have low market shares they do not generate much cash. The result is large net cash consumption. A question mark (also known as a "problem child") has the potential to gain market share and become a star, and eventually a cash cow when the market growth slows. If the question mark does not succeed in becoming the market leader, then after perhaps years of cash consumption it will degenerate into a dog when the market growth declines. Question marks must be analysed carefully in order to determine whether they are worth the investment required to grow market share.

3) Stars - Stars generate large amounts of cash because of their strong relative market share, but also consume large amounts of cash because of their high growth rate; therefore the cash in each direction approximately nets out. If a star can maintain its large market share, it will become a cash cow when the market growth rate declines. The portfolio of a diversified company always should have stars that will become the next cash cows and ensure future cash generation.

4) Cash cows - As leaders in a mature market, cash cows exhibit a return on assets that is greater than the market growth rate, and thus generate more cash than they consume. Such business units should be "milked", extracting the profits and investing as little cash as possible. Cash cows provide the cash required to turn question marks into market leaders, to cover the administrative costs of the company, to fund research and development, to service the corporate debt, and to pay dividends to shareholders. Because the cash cow generates a relatively stable cash flow, its value can be determined with reasonable accuracy by calculating the present value of its cash stream using a discounted cash flow analysis.

Under the growth-share matrix model, as an industry matures and its growth rate declines, a business unit will become either a cash cow or a dog, determined soley by whether it had become the market leader during the period of high growth.While originally developed as a model for resource allocation among the various business units in a corporation, the growth-share matrix also can be used for resource allocation among products within a single business unit. Its

simplicity is its strength - the relative positions of the firm's entire business portfolio can be displayed in a single diagram.The growth-share matrix once was used widely, but has since faded from popularity as more comprehensive models have been developed. Some of its weaknesses are:Market growth rate is only one factor in industry attractiveness, and relative market share is only one factor in competitive advantage. The growth-share matrix overlooks many other factors in these two important determinants of profitability.The framework assumes that each business unit is independent of the others. In some cases, a business unit that is a "dog" may be helping other business units gain a competitive advantage.The matrix depends heavily upon the breadth of the definition of the market. A business unit may dominate its small niche, but have very low market share in the overall industry. In such a case, the definition of the market can make the difference between a dog and a cash cow.While its importance has diminished, the BCG matrix still can serve as a simple tool for viewing a corporation's business portfolio at a glance, and may serve as a starting point for discussing resource allocation among strategic business units.

Q.13 What is the difference between primary activities in the values chain & support activities?

ANS:

Value Chain:

To analyse the specific activities through which firm create competitive advantage. It is useful to construct the firm as a chain of value. Michel potor identified a set of interrelated generic activities common to wide range of firms. The resulting model is known as the value chain.

Primary Value chain activities:

1. Inbound logistic2. Operation3. Outbound logistic.4. Marketing and sales5. After sales service.

The goal of these activities is to create value that exceeds the cost of providing the product or service. Thus generating a profile margin.

Primary Activities:

1. Inbound logistics: These are activities are concern with material from material suppliers storing. These externally sounded material handling them within the firm.

2. Operation: These are the activities related to the production of product and service.These areas can be split into more departments in certain organization. For example: In hotel industry includes receptions room service and kitchen.

3. Outbound Logistic: These are all the activities concerned with distribution of the final product or after sales service to customer. For example: In the case of hotel industry they provide home delivery service.

4. Marketing and Sales: This functional area essentially analyse the needs and wants of a customer and is responsible for creating awareness among the target audience.

5. Service: There is need to provide after sale service. Eg: Servicing in automobile industry. Reinstallation of software in computer business.

Support Activity:

a. ProcurementThis function is responsible for purchasing the materials that are necessary for the company’s operations. An efficient procurement department should be able to obtain the highest quality goods at the lowest price.

b. Human ResourceThis function relates with the work force of the company. Human resource are increasingly become an important way of attending good and sustainable staff.

c. Technology DevelopmentIt is concerned with the technological aspects in current business scenario.

d. Firm InfrastructureThis includes planning right from beginning to end. It also include control systems such as finance, corporate strategy etc.

Q.14 Choose an organisation that you know and identify its strengths and weakness. What are its special opportunities and threats in the external environment?

ANS:

SWOT Analysis AppleThis SWOT analysis is about Apple.Strengths.

Apple is a very successful company. Sales of its iPod music player had increased its second quarter profits to $320 (June 2005). The favourable brand perception had also increased sales of Macintosh computers. So iPod gives the company access to a whole new series of segments that buy into other parts of the Apple brand. Sales of its notebooks products is also very strong, and represents a huge contribution to income for Apple.

Brand is all-important. Apple is one of the most established and healthy IT brands in the World, and has a very loyal set of enthusiastic customers that advocate the brand. Such a powerful loyalty means that Ample not only recruits new customers, it retains them i.e. they come back for more products and services from Apple, and the company also has the opportunity to extend new products to them, for example the iPod.

Weaknesses. It is reported that the Apple iPod Nano may have a faulty screen. The company

has commented that a batch of its product has screens that break under impact, and the company is replacing all faulty items. This is in addition to problems with early iPods that had faulty batteries, whereby the company offered customers free battery cases.

There is pressure on Apple to increase the price of its music download file, from the music industry itself. Many of these companies make more money from iTunes (i.e. downloadable music files) than from their original CD sales. Apple has sold about 22 million iPod digital music players and more than 500 million songs though its iTunes music store. It accounts for 82% of all legally downloaded music in the US. The company is resolute, but if it gives in to the music producers, it may be perceived as a commercial weakness.

Early in 2005 Apple announced that it was to end its long-standing relationship with IBM as a chip supplier, and that it was about to switch to Intel. Some industry specialists commented that the swap could confuse Apple's consumers.

Opportunities. Apple has the opportunity to develop its iTunes and music player technology

into a mobile phone format. The Rokr mobile phone device was developed by Motorola. It has a colour screen, stereo speakers and an advance camera system. A version of Apple's iTunes music store has been developed for the phone so users can

manage the tracks they store on it. Downloads are available via a USB cable, and software on the handset pauses music if a phone call comes in. New technologies and strategic alliances offer opportunities for Apple.

Podcasts are downloadable radio shows that can be downloaded from the Internet, and then played back on iPods and other MP3 devices at the convenience of the listener. The listener can subscribe to Podcasts for free, and ultimately revenue could be generated from paid for subscription or through revenue generated from sales of other downloads.

Threats. The biggest threat to IT companies such as Apple is the very high level of

competition in the technology markets. Being successful attracts competition, and Apple works very hard on research and development and marketing in order to retain its competitive position. The popularity of iPod and Apple Mac are subject to demand, and will be affected if economies begin to falter and demand falls for their products.

There is also a high product substitution effect in the innovative and fast moving IT consumables market. So iPod and MP3 rule today, but only yesterday it was CD, DAT, and Vinyl. Tomorrow's technology might be completely different. Wireless technologies could replace the need for a physical music player.

In 2005 Apple won a legal case that forced Bloggers to name the sources of information that pre-empted the launch of new Apple products. It was suspect that Apple's own employees had leaked confidential information about their new Asteroid product. The three individual’s prosecuted, all owned Apple tribute sites, and were big fans of the company's products. The blogs had appeared on their sites, and they were forced to reveal their source. The ruling saw commercial confidentiality as more important as the right to speech of individuals. Apple is vulnerable to leaks that could cost them profits.

Q.15 What are the key pros and cons for both centralized and decentralized in organizational structure?

ANS:

Advantages of centralization:

1. Effective utilization of talents on top management.2. It gives strong result and coordination. 3. Use of similar policy for organization.4. Proper use of the sources and it will help to reduce the cost.5. Disadvantages.6. Due to this process only top management able to make decision.

7. Does not give opportunity to lower level to develop managerial skills.8. Authority may be abuse.9. There is no motivation factor at lower level.

Advantages of decentralization.

1) It reduces the workload of the organization 2) It improves job solution and satisfaction.3) It gives chance to form new leader.4) It may mould according to needs 5) Control is possible.

Disadvantages of Decentralise structure

1) There might be lack of uniformity.2) It increases the expenses of each dept.

Q.16 What are the key advantages and disadvantages of functional structure?

ANS:Functional structure is most widely used basis for organizing activity and is present in almost every enterprise. The characteristic of the selling, production and finance function of enterprise are so widely recognised and thoroughly understood that they are basis of not only department organization but also most often depart mentation at the top level. Co-ordination among departments may be achieved through rules and procedure, various aspects of planning the organizational hierarchy, personal contacts. Functional depart mentation embodies what enterprise do because all enterprise undertake creation of something useful and desired by others. The basic enterprise functions are production, selling, customers, patients etc.

Advantages:

1. It is a logical reflection of function.2. Maintains power and prestige of major function.3. Follows principle of occupational specialization.4. Simplifies training procedure.5. Furnishes means of tight control at top level.

Disadvantages:

1. De-emphasizes overall companies objective.2. Over specializes and narrows viewpoints of key personal.

3. Reduces co-ordination between function.4. Responsibly for profits at top level.5. Slow adaptation to change in environment.6. Limit development of general managers.

Q.17. What are the key advantages and disadvantages of product structure?

ANS:Grouping activities on the basis of product or product line has been growing in importance in multiline, large scale enterprises. It can be seen as an evolutionary process. Typically enterprise adopting this structure are organised by enterprise function. With the growth of firm production, manager, sales, service encounter problem. The managerial job becomes more complex. The span of manager limits the manager’s ability to increase number of subordinate managers. So product division becomes necessary. This structure permits top management to delegate a division executive extensive authority over others. It is necessary to avoid over simplification. Product managers may be saddled with heavy overhead cost allocated experience of operating the headquarter. Product manager understand reason being charged with cost over which they have no control.

Advantages:

1. Places attention and effort on product line.2. Facilitates use of specialized capital, facilities, skills and knowledge.3. Permit growth and diversity of product and service.4. Improves co-ordination of functional activities.5. Places responsibility for profit at division level.6. Furnish measurable ground of training for managers.

Disadvantages:

1. Require more people with general manager abilities.2. Tend to make maintenance of economical central service difficult.

Q.18 Do you see any reasons why managing by objectives may result in increased use of matrix Organisational structure?

Ans - As the essence of matrix organisation normally is combining of functional and project or product patterns of depart mentation in the same organisation structure. There are functional managers in charge of engineering functions and an overly of project managers responsible for the end product .While this form is common in Engineering and in Research and Development, It has also been widely used, although seldom drawn as a matrix in product marketing organisation.

This kind of organisation occurs frequently in construction in Nero space, in marketing, in the installation of an Electronic data processing system or in management consulting firms where management’s experts work together on a project.

- Define the objectives of the project or task.

- Clarify the roles, authority, and responsibilities of managers and team members.

- Ensure that influence is based on knowledge and information rather than on rank.

- Balance the power of functional and project managers.

- Select an experienced manager for the project.

- Undertake organisation and team development.

- Install appropriate cost, time, and quality controls that report deviations from standards in a timely managers.

- Reward project managers and team members fairly.

Q.19 If you were the president of a company that was organized along functional lines and a consultant suggested you organize along territorial lines or product lines, what might concern you in following this recommendation?

ANS:Grouping activities on the basis of product lines has been growing in importance in multiline, large scale enterprises. It can be seen as an evolutionary process. Typically, companies and other enterprises adopting this form of depart mentation are organized by enterprise functions. The managerial job becomes complex and the span of management limit the manager’s ability to increase the number of immediate

subordinate managers. At this point, Reorganization on the basis of product division becomes necessary. This structures permits top management to delegate to a division executive extensive authority over the sales, service, manufacturing that relate to a considerable degree of profit responsibility from each manager.

While departmentation based on territory is common in enterprises that operate over wide geographic areas. Although territorial departmentation is especially attractive to large scale firms or other enterprises whose activities may assign the personal in its security department. Many government agencies the tax department, the central bank, the courts and postal service, among others – adopt this basis of organization in their efforts to provide like services across the nation. Territorial departmentation is most often used in sales and in production, it is not used in finance, which is usually concerned at the headquarters.

Q.20 What are the key differences between strategic, tactical and operational plans?

Ans - Comparison between Strategic, Tactical, Operational plans.

Strategic Plans:

- Long rang plan.

- Time frame: Three or more years.

- Top management responsibility.

- Concerned with brand objectives of the organisation.

- Focus on planning and forecasting.

Tactical Plans:

- Intermediate Plan.

- Time frame 2-3 years.

- Performed by managers at middle level.

- Concerned with integrating the work of various departments in the organisation

- Focus coordination.

Operational Plans:

- Short range plan.

- Time frame one year.

- One usually at lower levels.

- Covers day to day operations, implementations goals.

- Focus on control, primarily.

Q.21 What is bench marking? What role it plays in planning?

ANS:It is an approach for setting goals and productivity measures based on best industry practices. Bench marking can be developed out of the need to have data against which performance can be measured.

Example:

If a company needs 6 days to fill customers order and competitor needs only 5 days than 5 days cannot be a bench mark if an unrelated industry needs only 4 days. Then 4 days becomes a benchmark even if it first seemed to be a unachievable goal. The process of filling the order is than carefully analysed and creative ways are encouraged to achieve benchmark.

There are 3 types of benchmarking:

1. Strategic Benchmarking:Compares various strategies and identifies key strategies to success.

2. Operational Benchmarking:Compares relative cost or possibilities for product differentiation.

3. Management Benchmarking:Focuses on support functions such as market planning and information system.

The process of benchmarking begins with the identification of what is to be benchmarked. Then superior performers have to be selected. Data needed to be gathered and analysed on which basis are performance. During the implementation of new approach. Performance is periodically measured and corrective actions are taken at time.

Q.22 What is the different between defining requirements and assessing resources in the planning recourse? Ans: To define business objectives, one or more planning sessions must be held. These sessions should focus on the overall business objectives and not detailed functional or technical requirements (these requirements are defined in later phases). The following information should be prepared and distributed for review prior to the first session.

An internal analysis of any existing web sites An inventory of top-level business functions

An analysis of any partner sites and the services they offer to their partnering businesses

A competitive analysis of web sites owned by the competition

Any case studies available that show how other companies in similar situations are using the web.

It may help to break the pre-reading material down into several sessions and plan the sessions around reviewing and discussing the impact of that material on what the business wants to achieve.

A common example is a customer service center that contains a record showing one version of a customer's status (orders, billing, payments, etc.), and a finance department in the same enterprise with different status information. This discrepancy may reflect a recent change made by the finance department, and the true status may not yet be available to other departments. As a result, customer service cannot serve accurate information.

ERP can eliminate these silos and reduce waste, allowing the organization to save time and repurpose information across the enterprise for greater efficiency.

Q.23 Compare strategic, tactical and operational control? Why are the boundaries between each not always clear?

ANS:Classifying of management as per totality of the organizational performance can be defined as a continuum of management levels ranging from strategic management on one end to operational management at the other hand.

Strategic Management:

Strategic management concentrates on the on the performance of the complete organization. Strategic management involves achieving balance between requirements of different functions and unit of the organization. It also involves balancing risk in short and long turn. Base on this consideration strategic management determines long term objectives to be pursuid by the organization and identifies the ways and means of achieving these objectives. One unique characteristic of strategic management is the absence of any higher level plans or objective to guide strategic management action.

Operational management:

Operational management lies at the other end of the continuum of management levels. It is concerned ensuring that the day to day operations of the organization are carried out effectively and efficiently.

Example: Operational management will concentrate on insuring that workmen on the shop floor are instructed correctly on the jobs to be performed by them at any particular time and that they are provided with required material tools and other facilities to get on with the work.

Tactical Management:

The level between the strategic and operational management is the middle management level also known as Tactical Management. This level of management is concerned with planning and control for individual organizational functions.

Q.24 How is the control function linked to other managerial functions?

Ans. The objective of objective function is to ensure that action contribute to goal accomplishment. It helps in keeping the organizational activities in the right path & aligned with plans & goals. It is measured & compared with that had been planned. If the measured performance had been found wanting, the manager must find reasons & take corrective actions. If the performance is not found to be wanting, some planning decision must be made, altering the original plans. If the controlling function is to be effective, it must be proceeded to other planning. Thus controlling includes four things:-

Setting standards of performance. Measuring actual performance. Comparing actual performance against the standards. Taking corrective actions to ensure goal accomplishment.

These functions are linked & most managerial functions use a combination of above four things simultaneously to solve the problems which are faced by the companies. All management function is interrelated to each other.

MMS DIV: A

SUBJECT: HIGH PERFORMANCE LEADERSHIP

TAUGHT BY: Prof .Dr Sandeep Sawant

Member name Roll no.Anil kumar Mishra 08

Jitendra Gupta 22Ranjit Kakade 42

Abubakar Siddiquie 02 Fazlur Rehman 17

Q1 What is leadership? Why it is characterized as social influence process?

Ans: Leadership has been described as the "process of social influence in which one person can enlist the aid and support of others in the accomplishment of a common task."

Leadership is "organizing a group of people to achieve a common goal." The leader may or may not have any formal authority. Students of leadership have produced theories involving traits, situational interaction, function, behavior, power, vision and values, charisma, and intelligence among others.

Conceptual Skill: Ability to work with abstractions and hypothetical notations, ability to deal with ideas and concepts that have potential to shape the organization in the future. People with conceptual skills have good imagination and ability to simulate their creativity with the process of synthesis and analysis. These are cognitive abilities, whether they are natural or learned/acquired with time.  Conceptual skills are central to creating a vision and strategic plans for an organization.

Human Skill: Human skills are people-skills; these are abilities of the leaders to effectively work with subordinates, peers and bosses. The soft skills can be considered as "traits" for people who have them naturally and "skills" for others who have to train themselves consciously to be more effective in dealing with others. The human skills have large extent and high complexity, one end is orator and communication skills while the other end is dealing with multi party negotiations.

Technical Skills: The job knowledge required for a particular leadership role can be termed as the technical skills. The leader must understand the output of the organization in terms of product or services, without which he cannot possibly utilize his conceptual skills to their maximum ability. The next step is to have good knowledge of organization management processes to boost the effectiveness.

Q. 2 Who can be expected to exhibit leadership in an organization?

ANS: Leadership is an art of motivating a group of people to act towards achieving a common goal.

Interpersonal Skill

Understanding people and groups (psychology and social psychology) can be learned, to some extent.

Encouragement

Motivation:-Motivation is getting people to do what you want them to do – or, better, what they ought to do – because they want to do it.

Relationships:- I read this somewhere: ‘Surface relationships based on function will lead to devalued people at war with the world.

Communication

Emotional Intelligence

Higher levels of emotional intelligence are associated with better performance in the following areas:

Self-Awareness Balance Between Personal Life and Work

Straight forwardness and Composure

Building and Mending Relationships

Doing Whatever it Takes

Confronting Problem Employees

Leadership in Today’s Business Environment

As a leader, we provide and maintain momentum within your company. While guiding our employees during recent times was easy, today you may find that the momentum is moving in the wrong direction.

In today’s market, increasing profitability is the issue for every company. Whether you are introducing ancillary businesses for additional revenue streams or redistributing marketing dollars from print to the Internet, having the buy-in of all your employees is critical. Following is a five-step system that will ensure your success. 

1. Analyze the Initiative 

             Before we attempt to move your company forward, you need to have a clear picture of where it stands today. For example, if you have successfully built a strong product line, you might believe the addition of a new product line makes sense. But we have to look a little closer. Will some employees walk from their established streams of revenue in order to try what may look like a new “magic pill” .

2. Build Team Support

In leadership terms, that phrase reminds us that we need to include everyone in the organization when we are planning any new venture. To begin, get input from the entire management team. Even if you have a single office or locations, you have people there who help you “manage” the organization—for example, the experienced employee who everyone respects and views as an informal leader or the longtime staff person that everyone trusts. Whoever those leaders are, you must include them in the initial phases.   

Next, bring in all staff personnel and tell them the plans. Whether you want to believe it or not, your staff is central to your success. Whatever the initiative, effective follow-up will be crucial. Our staff will be responsible for providing accurate data so you can gauge your progress. Finally, get employee buy-in, and don’t jump into this. Garnering buy-in is a process. Start by testing the idea on a very small group of the staff. Get their opinions and concerns.  

3. Introduce the Initiative

The two main elements to introducing an initiative are venue and format.  

First, never introduce an “extremely important” project in the same location you hold every other meeting. If the idea is important, then make sure the organization senses that from the beginning. You could hold the meeting at a local restaurant or a movie theatre (both are inexpensive during certain daytime hours).  

The format of the meeting should also be more powerful than your normal get-togethers. Leadership must be visible. The room must also reflect the message in terms of décor and music. If you are introducing a program to drive revenue, then make sure the music is upbeat and fills the room . 

4. Instill Follow-up Systems

            Always inspect that which you expect. Your follow-up systems need to have four elements. The first two are structuring the follow up and centralizing the reporting. Leaders must delegate efficiency. Therefore, you need to delegate both of these items to staff personnel. They will relish their part in the plan and also do a much better job than the management team on these items.   

5. Reward Success

Set realistic completion dates for goals. A goal without a timetable is nothing more than a dream. These times call for people who can actually achieve goals.

Evaluate success in stages. Do not wait until the end to start evaluating the results. Remember that facts do not cease to exist because you ignore them.

Remember the importance of recognition. Many people enter a sales profession for financial gain. Everyone enters for recognition..

Incentives versus Rewards. Never use incentives with people for things they are already accomplishing. You can reward them by recognizing them for their effort and success.. Understanding the difference between these two words is critical to the initiative’s success.

Q3.What is the locus of leadership ?

Locus of leadership is the part where 3leadership variables intersect each other.

1) Leader2) Followers3) Situation

1) Leader :- Leader is known by his Technical skills, Human skills, Conceptual skills. That how he deal with the situation and along with this he must have Emotional intelligence to motivate himself for handling relationship and Social intelligence to understand need of his employee, customers and also to understand social behavior.

Leader’s behavior is of 2types:

a) Task behavior in which leader is initiative, he schedules his work, he sets performance standards.

b) People behavior in which leader is friendly, supportive, shows trust and confidence in subordinates, gives recognition to subordinates for their accomplishment.

2) Followers: Leaders are their just because someone follow him. a) some people follow leader for his skills & abilities for e.g. Adi Godrej, followers

follow him just because his skills & abilities to turn around rundown plant into successful plant.

b) Some people follow because of personality of leader. For e.g. leaders like Martin Luther, Vijay Mallya, Steve Jobs.

c) Some people follow leader because of his beliefs and attitudes. For e.g. leaders like Mahatama Gandhi, Narayan Murthy.

Leader-Member Relationships

Relationship Characteristics

Relationship stage

Stranger acquaintance Maturity

Relationship building phase

Role finding Role-making Role implementation

Quality of leader-member exchange

Low Medium High

Amount of reciprocal influence

None Limited Almost unlimited

Focus of interest Self Team

Time3) Situation: Depending upon the situation leader has to perform. For e.g. what is the task

according to that he has to show his leadership style. Sometime he should be autocratic leader, so sometime he must be bureaucratic leader. He has to work as per organizational structure, as per HR policy of company

Q4) What is emotional intelligence and how does it differ from social intelligence?

Ans: Emotional intelligence (EI) is the ability, capacity, skill; or, in the case of the trait EI model, a self-perceived ability to identify, assess, and control the emotions of oneself, of others, and of groups. Different models have been proposed for the definition of EI and there is disagreement about how the term should be used Despite these disagreements, which are often highly technical, the ability-EI and trait-EI models (but not the mixed models) enjoy support in the literature and have successful applications in various domains.{

1) The ability-based model views emotions as useful sources of information that help one to make sense of and navigate the social environment The model proposes that individuals vary in their ability to process information of an emotional nature and in their ability to relate emotional processing to a wider cognition. This ability is seen to manifest itself in certain adaptive behaviors. The model claims that EI includes four types of abilities:

2) Perceiving emotions – the ability to detect and decipher emotions in faces, pictures, voices, and cultural artifacts—including the ability to identify one's own emotions.

Perceiving emotions represents a basic aspect of emotional intelligence, as it makes all other processing of emotional information possible.

3) Using emotions – the ability to harness emotions to facilitate various cognitive activities, such as thinking and problem solving. The emotionally intelligent person can capitalize fully upon his or her changing moods in order to best fit the task at hand.

4) Understanding emotions – the ability to comprehend emotion language and to appreciate complicated relationships among emotions. For example, understanding emotions encompasses the ability to be sensitive to slight variations between emotions, and the ability to recognize and describe how emotions evolve over time.

5) Managing emotions – the ability to regulate emotions in both ourselves and in others. Therefore, the emotionally intelligent person can harness emotions, even negative ones, and manage them to achieve intended goals.

Social intelligence can be described as a combination of abilities: the first is a basic understanding of people (ie. a kind of strategic social awareness) and the second is the skills needed for interacting successfully with them. In other words, the ability to get along with other and to encourage them to cooperate with you. Social intelligence can be thought of as encompassing five dimensions:

1) Presence – your external image or sense of self that is perceived by others, eg, confidence, self-respect or self-worth.

2) Clarity – your ability to express yourself clearly, explain concepts clearly and using language effectively, while persuading with ideas.

3) Awareness – your ability to understand social contexts that influence behaviour (ie. “read situations”) and to choose the behavioural strategies most likely to be successful.

4) Authenticity – the way of behaviour which gives a perception of honesty.

5) Empathy – your ability to create a sense of connection with others and to encourage them to cooperate with you, rather than work against you, as well as an appreciation for the emotions and experiences of others.

Emotional Intelligence is increasingly relevant to organizational development and developing people, because the EQ principles provide a new way to understand and assess people's behaviours, management styles, attitudes, interpersonal skills, and potential. Emotional Intelligence is an important consideration in human resources planning, job profiling, recruitment interviewing and selection, management development, customer relations and customer service, and more. Emotional Intelligence links strongly with concepts of love and spirituality: bringing compassion and humanity to work, and also to 'Multiple Intelligence' theory which illustrates and measures the range of capabilities people possess, and the fact that everybody has a value.

Q5) Do you think people are born leaders? Are there specific traits that can be seen early in a person life or career that indentify that person as leader? Can someone without this special trade go on to become leader?

Ans: Are leaders born or are they made? There is evidence to prove that there is a Personality Profile that exists that is a Natural Born Leader. In Fact there are 5 specific Personality Traits that define a Natural Born Leader. A Natural Born Leader is someone who is willing to lead and has the social ability, self confidence, assertiveness and boldness to take on team responsibilities and Lead others.

These profiles can be tested and proven. A Natural born leader will test extremely high in areas of Social ability, Self Confidence, Assertiveness, and Boldness. Leadership is another Personality Trait that comes into play but I will explain that later.

These definitions are specifically defined and can be tested and measured based on specific questions. Below are the definitions of Social ability, Self Confidence, Assertiveness and Boldness and Leadership.

1) Social ability - Good natured Extroverted, outgoing, friendly, gregarious, neighbourly, congenial. Warm-hearted individuals who enjoy interacting and participating with others. They greet strangers openly, are quick to form friendships, and enjoy careers dealing with people rather than things. They are rarely content in solitary work. People that rate a 8 or higher in Social ability out of a scale of 10 are usually happier people in general. This is a Personality trait that shows how well someone will interact with everyone in their sphere of influence (Spouse, Boss, Associate, Friend, and Employee).

2) Self Confidence- #1 Trait - Determines Success Self-assured, certain, secure, brave, fulfilled, poised, self-reliant. Believe they have the knowledge and ability to be successful at whatever they attempt. Cope successfully with challenges and are not easily discouraged. Handle unexpected situations well, make decisions with assurance, and are quick to express ideas and opinions.

3) Assertiveness -Aggressive, persuasive, influential, headstrong, opinionated, possibly argumentative and hostile. Believe that being assertive and taking the offensive is essential to attaining success. They make things happen, rather than waiting for them to happen, and are willing to be forceful in order to get a job done. May be authoritarian.

4) Boldness- Adventurous, daring, carefree, brave, courageous, audacious, fearless. Uninhibited individuals who are willing to try new and different experiences. They can function normally even in unfamiliar environments, and are quick to accept challenges and willing to take risks to accomplish their objectives. May be pushy and ignore warning signs.

5) Another Personality Trait that can be measured is actually called Leadership. It is defined as dominant, influential, controlling, dynamic, commanding, forceful, directing, and authoritative. Very strong desire to control, influence and direct others. Assume the role of leader naturally and enjoy the responsibility and challenge of being in charge. Have an active leadership style, and are quick to take control of situations.

Leaders are Always Made

Leadership can be learned by anyone with the basics. But an awful lot of leadership cannot be taught. That's because leadership is an apprentice trade. Leaders learn about 80 percent of their craft on the job. They learn from watching other leaders and emulating their behavior. They choose role models and seek out mentors. They ask other leaders about how to handle situations. Leaders improve by getting feedback and using it. The best leaders seek feedback from their boss, their peers and their subordinates. Then they modify their behavior so that they get better results. Leaders learn by trying things out and then critiquing their performance. The only failure they recognize is the failure to learn from experience. Effective leaders take control of their own development. They seek out training opportunities that will make a difference that will make a difference in their performance. Effective leaders look for training programs that will help them develop specific skills that they can use on the job. Then, they when they return to work, they devote specific, deliberate effort to mastering in real life what they learned in the classroom. If you're responsible for leadership development for your company, you should structure your support for your leaders to recognize that most leadership learning happens on the job. Help people develop leadership development plans. Help them select specific skills training and then work on transferring skills from the training to the job. Help them find role models, mentors and peers to discuss leadership issues. Help your leaders get feedback from their boss, peers and subordinates

There's no magic formula for developing quality leaders in your company. But if you select potential leaders with the essential traits, then support them with training, feedback, on-the-job learning and development experiences and hold them accountable for results, you'll have the leaders you need to shape your company's future.

Q6) Describe the four types of behaviour identified in situational leadership model. What are the components of each?

Ans : Situational leadership theory

The fundamental underpinning of the Situational Leadership Theory is there is no single

"best" style of leadership. Effective leadership is task-relevant and that the most successful

leaders are those that adapt their leadership style to the Maturity ("the capacity to set high but

attainable goals, willingness and ability to take responsibility for the task, and relevant

education and/or experience of an individual or a group for the task) of the individual or

group they are attempting to lead/influence. That effective leadership varies, not only with

the person or group that is being influenced, but it will also depend on the task, job or

function that needs to be accomplished.[4]

The Hersey-Blanchard Situational Leadership Theory rests on two fundamental concepts;

Leadership Style and the individual or group's Maturity level.

Leadership styles

Hersey and Blanchard characterized leadership style in terms of the amount of Task

Behaviour and Relationship Behaviour that the leader provides to their followers. They

categorized all leadership styles into four behaviour  types, which they named S1 to S4:

S1: Telling - is characterized by one-way communication in which the leader defines

the roles of the individual or group and provides the what, how, why, when, and where to

do the task

S2: Selling - while the leader is still providing the direction, he is now using two-way

communication and providing the socioemotional support that will allow the individual or

group being influenced to buy into the process.

S3: Participating - this is now shared decision making about aspects of how the task

is accomplished and the leader is providing less task behaviours while maintaining high

relationship behaviour.

S4: Delegating - the leader is still involved in decisions; however, the process and

responsibility has been passed to the individual or group. The leader stays involved to

monitor progress.

Of these, no one style is considered optimal for all leaders to use all the time. Effective

leaders need to be flexible, and must adapt themselves according to the situation.

Maturity Levels

The right leadership style will depend on the person or group being led - the follower. The

Hersey-Blanchard Situational Leadership Theory identified four levels of Maturity M1

through M4:

M1 - They generally lack the specific skills required for the job in hand and are

unable and unwilling to do or to take responsibility for this job or task.

M2 - They are still unable to take on responsibility for the task being done; however,

they are willing to work at the task.

M3 - They are experienced and able to do the task but lack the confidence to take on

responsibility.

M4 - They are experienced at the task, and comfortable with their own ability to do it

well. They are able and willing to not only do the task, but to take responsibility for the

task.

Maturity Levels are also task specific. A person might be generally skilled, confident and

motivated in their job, but would still have a Maturity level M2 when asked to perform a task

requiring skills they don't possess.

Developing people and self-motivation

A good leader develops “the competence and commitment of their people so they’re self-

motivated rather than dependent on others for direction and guidance.” (Hersey 91)[5] According to Hersey's "the situational book,"[6] the leader’s high, realistic expectation

causes high performance of followers; the leader’s low expectations lead low performance of

followers. According to Ken Blanchard, "Four combinations of competence and commitment

make up what we call 'development level.'"

D4:High competence and high commitment

D3:Moderate to high competence and variable commitment

D2:Some to low competence and low commitment

D1:Low competence and high commitment[7]

In order to make an effective cycle, a leader needs to motivate followers properly.

Q.7) In order to change your leadership capabilities, which element must you assess and which element require action? Are leadership and management the same ? Why or why not?

Ans: No, leadership and management both have essential roles in the function and effectiveness of organizations; they are not the same thing. They are, in fact, distinct and separate processes, serving different purposes. Management provides the organization with predictability, consistency and stability. Leadership positions people and organizations for change. The danger of failing to make the distinction between management and leadership is that people mistakenly begin to equate leadership — a process of influence — with a position of authority. And most of us in our careers have encountered the unfortunate situation where an individual charged with managing an organization has been placed in a position of authority but has lacked the ability to exercise effective leadership.

management and leadership represent different roles within an organization, but not different classes of people. In a fortunate organization, the same individual may be both an expert manager and a skillful leader. I hold the popular leadership press and some of its most well-liked authors responsible for the tendency to describe leaders and managers as different types of people and for the temptation to cast leadership in a positive light and management in a negative.

Q.8) Identify a Business or sport leader who you think is highly effective , and explain why you think he or she is highly effective.?

Ans: My most favourite business leader is BILL GATES.A leader with vision of “every desk has computer and Microsoft’s software loaded on every computer”.

A leader with inborn high intellectual power because at the age of 13 he wrote the computer program. He has passion about computer .for that he left Harvard Business school and joined software development.

He has the some of the characteristic listed below……..

5. MAKE YOURSELF INTELLIGENT Bill Gates told that success also depends on your intelligence. Different people have different level of intelligence. Intelligence becomes a problem area for many a people because they think like physical strength all the people can’t be equal in it. True. But like physical strength any person can try to develop his intelligence. .

2. BE SINCERE IN YOUR EFFORTS

Integrity is always useful whether it is business or family life. Deceiving causes friction in human relations and hampers your progress. Try to be sincere in everything – in your efforts, relations, and business policies.

3. CREATE A GOOD TEAM

Creating a team of talented people is necessary to rise fast in business. The motto of modern business world is ‘combine and succeed’. For a single person it has become very difficult to survive or succeed in big business jungle. Even Bill Gates understood the value of a good team when he was just a high school student. He joined hands with Paul Allen to find a company (Traf-o-Data) to sell traffic counting systems to state governments and help his school’s payroll system computerize.

4. LEAD YOUR PEOPLE TO VICTORYYour team will work better if you are able to provide good leadership to them. For a businessman his workforce is like his family. He shares its joys and sorrows and motivates them time to time to better and achieve the targets. By proper rewards and punishment methods he keeps his workforce disciplined and united and lead them to big success. He always shares his gains with his employees or assistants by giving promotions, special increments or other rewards.

Q.8) Identify a business or sport leader who you think is highly effective , and explain why you think he or she is highly effective.

Ans: My most favourite business leader is BILL GATES.

A leader with vision of “every desk has computer and Microsoft’s software loaded on every computer”.

A leader with inborn high intellectual power because at the age of 13 he wrote the computer program. He has passion about computer .for that he left Harvard Business school and joined software development.

He has the some of the characteristic listed below……..

1.MAKE YOURSELF INTELLIGENT Bill Gates told that success also depends on your intelligence. Different people have different level of intelligence. Intelligence becomes a problem area for many a people because they think like physical strength all the people can’t be equal in it. True. But like physical strength any person can try to develop his intelligence. .

2. BE SINCERE IN YOUR EFFORTS

Integrity is always useful whether it is business or family life. Deceiving causes friction in human relations and hampers your progress. Try to be sincere in everything – in your efforts, relations, and business policies.

3.CREATE A GOOD TEAM

Creating a team of talented people is necessary to rise fast in business. The motto of modern business world is ‘combine and succeed’. For a single person it has become very difficult to survive or succeed in big business jungle. Even Bill Gates understood the value of a good team when he was just a high school student. He joined hands with Paul Allen to find a company (Traf-o-Data) to sell traffic counting systems to state governments and help his school’s payroll system computerize.

4. LEAD YOUR PEOPLE TO VICTORY

Your team will work better if you are able to provide good leadership to them. For a businessman his workforce is like his family. He shares its joys and sorrows and motivates them time to time to better and achieve the targets. By proper rewards and punishment methods he keeps his workforce disciplined and united and lead them to big success. He always shares his gains with his employees or assistants by giving promotions, special increments or other rewards.

Q.9) In what way might being an effective follower help to prepare person for become an effective leader ?

Ans: The effective leadership and follow ship for an organization to accomplish its goals. It’s impossible to be a leader without a following. To get things done, a leader must point the way to a common goal and the rest of the organization must follow. By the same token, a leader must earn the right to a following. It’s a two-way street, a complex dance, an equal partnership. So, because follow ship is equally as important as leadership. when you became effective follower you spend your time doing the things rather than complaining about what’s not right, they get involved in helping the cause. Many companies bulging with middle

managers are finding that those who can follow a firm's leaders rather than compete to become leaders themselves are important for maintaining stability in the business. More and more firms are encouraging followership to improve company performance. It is said that "Effective followers maintain their independence as critical thinkers. They are team players, up to the point where they think something unwise or unethical is being done". the characteristics of effective leadership and effective followership are almost identical. you nor I cannot be a good leader unless we are or can be a good follower.

Q 10) What would be a boss of yours have to do to demonstrate that he or she is an effective leader or effective manager?

Ans: Boss would have to demonstrate being a good boss is really simple. He who wants to become one, has to think of all those managers and supervisors under whom he has worked in the past and list out which qualities they were woefully lacking. When he becomes a boss himself, he has to implement all those qualities in his managerial style. At the same time, he should not forget to follow the good managerial practices that your bosses followed too.

Here are some guidelines on how to be a good boss:Be Task Oriented and Not Personality Oriented-

An ideal boss defines the work to be done, specifies the boundaries of freedom to act, indicates the areas where the subordinates should consult him explain the goals and targets to be met and offers his help and support in attaining the goals.

Display a Fair Degree of Humane Qualities-

Being task-oriented need not mean that the boss should be heartless. Bad bosses frequently forget that those who work under them have a family to take care of, have physical bodies that can get sick, can have interests and passions to pursue after office hours and are given holidays to relax and rejuvenate. A good boss truly gives appropriate consideration to the human needs of his subordinates.

Possess a Fair Degree of Knowledge On the Subject Matter-

A good boss must carry with him some proven skills, expertise or knowledge, if not fully in his current area of responsibility (if he happens to be new to the current managerial position), at least in areas where he was operating earlier. He must be shrewd enough to grasp the basics, know where to seek help and rely on persons who know better.

Give Freedom in Proportion to the Responsibility given

When a boss wants his subordinates to use their knowledge, skills and authority to produce results; he should naturally allow them to take decisions within their limits without consulting him on every minor issue. He should give them the financial freedom appropriate to the their levels. A good boss has to display trust on his subordinates and intervene when something contrary to the trust or contrary to the expected results occur

Give Credit Where it is Due

An effective manager exposes a truly good and efficient subordinate to the higher echelons of management to ensure that his contribution is recognized and duly rewarded. This he does in the corporate meetings by openly acknowledging any specific and outstanding contribution of the subordinate. A good boss, by virtue of being the leader, should not take all the credits to himself for his team's performance. Annual performance appraisals should truly reflect the contributions and failings of each subordinate.

Don't be a Parasite in the Organization

Any boss, who is known to pocket commissions from suppliers, who enjoys special privileges from those who are affected by his power and influence, misuses office machinery and personnel to meet his personal needs, fraudulently siphons off money by manipulating his perks and privileges or intimidates the opposite sex can never get respect from his subordinates, however outstanding he may be in his job.

Value Time

A good boss values his time as well as his subordinates' time. There are some tasks where the time of the subordinates may be more valuable than the boss'. A good boss does not while away his time by conducting unnecessary meetings. He does not invite a busy subordinate to his cabin for a review and then keep him waiting indefinitely while he is busy attending phone calls.Be a Good “Assistant”-This may surprise many, but a good boss is really a good “assistant” to his subordinates; when the subordinate needs help in some area beyond his reach, the boss offers help. When the subordinate lacks knowledge, the boss assists him by educating him. Thus the boss functions as a dependable assistant to his subordinates in areas where the subordinates can't handle things all alone

Q.12. Visualize the least effective leader you know? Identify the traits, motives, and personal characteristics in which that person might be deficient.

Ans: Leadership is the art of getting someone else to do something you want done because he wants to do it Dhirubhai Ambani is referred as India's "Businessman of the Century". Founder of Reliance Group India Dhirubhai started off as a small time worker with Arab merchants in the 1950s and moved to Mumbai in 1958 to start his own business in spices. After making modest profits, he moved into textiles and opened his mill near Ahmedabad. Dhirubhai founded Reliance Industries in 1958. After that it was a saga of expansion

Reliance's story as a company has been a 'bitter-sweet' saga in India. While on one hand it

remains one the biggest Indian conglomerates but on the other hand it is also a company

known to evade taxes and being intransparent[2]. It has presence in various sectors like

petrochemicals, textiles and is involved in the production of crude oil and gas, to polyester

and polymer products. The companies refinery at Jamnagar accounts for over 25% of India's

total refining capacity and their plant at Hazira is the biggest chemical complex in India. The

company has further diversified into Telecom, Insurance and Internet Businesses, the Power

Sector and so on. Now the Reliance group with over 85,000 employees provides almost 5%

of the Central Government's total revenue

Dhirubhai was the second son of a school teacher and started his entrepreneurial career by selling "pakora" to pilgrims in Mount Girnar.

At the age of 17, Dhirubhai went to Aden (now part of Yemen) and worked for A. Besse & Co. Ltd., the sole selling distributor of Shell products.

Two years later Dhirubhai was promoted to manage the company’s filling station at the port of Aden.

In the year 1958,Dhirubhai Ambani returned to Mumbai and started his first company, Reliance Commercial Corporation, a commodity trading and export house.

The first office was set up at the Narsinathan Street in Masjid Bunder. It was a 350 Sq.in partnership with Champaklal Damani.

In the year 1965, Dhirubhai Ambani started his own company. In the year 1966, as a first step in Reliance's highly successful strategy of

backward integration, he started the textile mill in Naroda, Ahmedabad. Textiles were manufactured using polyester fibre yarn. Dhirubhai started the

brand "Vimal". Dhirubhai diversified his business with the core specialisation being in

petrochemicals and additional interests in telecommunications, information technology, energy, power, retail, textiles, infrastructure services, capital markets, and logistics.

Q13) Do you believe that the presence of a charismatic leader tends to enhance the job satisfaction of group members?

Ans : Charismatic LeadershipCharismatic leaders have a combination of charm and personal magnetism that contribute to aremarkable ability to get other people to endorse to their vision and promote it passionately.Charisma Defined: Charisma has been defined various ways. Charisma is a Greek word meaning “divinely inspired gift”. In leadership, charisma is a special quality of leaders whose purposes, powers and extraordinary determination differentiate them from others.Charisma: A Relationship: Key to charismatic leadership is the interaction between leader and group members. Charismatic qualities must be attributed to the leader by group members and Charismatic leaders use impression management to cultivate their relationships with group members.• Charismatic leadership theory is an extension of attribution theory.• It says that followers make attributions of heroic or extraordinary leadership abilities when theyobserve certain behaviours.• Charismatic leaders have an idealized goal that they want to achieve and a strong personal commitment to that goal; they areperceived as unconventional; they are assertive and self-confident; and they are perceived asagents of radical change rather than as managers of the status quo.• There is an increasing body of research that shows impressive correlations between

charismaticleadership and high performance and satisfaction among followers.• Charismatic leadership may be most appropriate when the follower’s task has an ideologicalcomponent.• Second, charismatic leaders may be ideal for pulling an organization through a crisis butbecome a liability to an organization once the crisis and the need for dramatic change subside.There are a number of factors that play into this particular scenario---The "charismatic" individual is one who usually emits a great deal of self-confidence without being a "know-it-all" or a "wise and people, generally Love to follow after surety !!

The presence of a charismatic leader tends to enhance the job satisfaction of group members.

With people, generally, it starts at the earliest edges of their childhood when they learn rapidly to look to their parents (or whoever is in the guardian / protectorate role) for the comfort and security of their very existence!! Then, all through their formative years they are in the care of people who are constantly in the "taking charge" role and learn that if they depend on them generally they are going to be just fine!! So, it only serves to follow in due course that when these folks mature and start their careers and "work-life" they are going to be drawn to individuals that are confident--take charge--"do the right thing and I'll cover for you" kind of people!!The "group member satisfaction" with their job is enhanced ONLY when a charismatic leader is truly in touch with the needs of each member within the group-- if they are not---and the "self-confidence" thing is all for show-- it will come out soon enough and the workers will very rapidly start finding ways around such an individual and mutiny surely isn't too far behind!!

The qualities of a charismatic leaderCharisma is defined as, "The ability to inspire enthusiasm, interest, or affection in others by means of personal charm or influence." Leaders who have this special ability share four things in common:1) They Love LifeLeaders who attract a following are passionate about life. They are celebrators, not complainers. They're characterized by joy and warmth. They're energetic and radiant in an infectious way.

Look no further than the smile to illustrate the power of charisma. When people see a smile, they respond with a smile. If you're sceptical, try it. Smile at cashiers, waiters, co-workers, etc. You'll find your smile earns a reciprocate smile almost every time. We are hardwired to take on the energy of those around us. Leaders who love life have charisma because they fill the room with positive energy.

2) They Value the Potential in PeopleTo become an attractive leader, expect the best from your people. I describe this behaviour as

"putting a 10 on everyone's head." Leaders see people, not as they are, but as they could be. From this vantage point, they help others to build a bridge from the present to a preferred future.Benjamin Disraeli understood and practiced this concept, and it was one of the secrets to his charisma. He once said, "The greatest good you can do for another is not to share your riches but to reveal to him his own." When you invest in people and lift them toward their potential, they will love you for it.

3) They Give HopePeople have an inner longing to improve their future and their fortunes. Charismatic leaders connect with people by painting tomorrow brighter than today. To them, the future is full of amazing opportunities and unrealized dreams.Napoleon Bonaparte once said, "Leaders are dealers in hope." They infuse optimism into the culture around them, and they boost morale. While attentive to the current reality, they do not resign themselves to present circumstance.

4) They Share ThemselvesLeaders with charisma add value to people by sharing wisdom, resources, and even special occasions. They embrace the power of inclusion, inviting others to join them for learning experiences, brainstorming sessions, or simply a cup of coffee. Such leaders embrace team spirit and value togetherness. As a result, charismatic leaders are not lonely at the top.When it comes to charisma, the bottom line is other mindedness. For leaders, the greatest satisfaction is found by serving. They find great pleasure celebrating the successes of those around them, and the victory they enjoy the most is a team triumph.

Trait of a Charismatic Leader:_ Self-confidence_ A vision_ Strong conviction in that vision_ Out of the ordinary behaviour_ The image of a change agent

Followers feelings towards Charismatic Leaders• High Trust• Obedience• Emotional involvement• Satisfaction• Self-esteem• Motivation• Belief in likeliness of success

14) A concerned has been expressed that leaders who are charismatic are often incompetent. They simply get placed into key positions because they create such good impression. What do you think of this Argument?

Ans :Charismatic leadership is leadership based on the leader's ability to communicate and behave in ways that reach followers on a basic, emotional way, to inspire and motivate. We often speak of some sports and political leaders as charismatic (or not) -- an example being John F. Kennedy.

It's difficult to identify the characteristics that make a leader "charismatic", but they certainly include the ability to communicate on a very powerful emotional level, and probably include some personality traits.

Developing "charisma" is difficult, if not impossible for many people, but luckily charismatic leadership is not essential to be an effective leader. Many other characteristics are involved in leading effectively, and there is significant evidence to indicate that it simply is not necessary to have this elusive charisma to lead others well.

Relying on charisma to lead also can be problematic. For example, there have been many charismatic leaders who lack other leadership characteristics and skills (e.g. integrity) and lead their followers into situations that turn out horribly -- think political leaders such as Stalin, Hitler, and even business leaders (Enron).

Finally, in organizations lead by charismatic leaders, there is a major problem regarding succession. What happens when a leader who relies on charisma leaves? Often the organization founders because the ability to lead rested with one person's charisma.

Adolf Hitler and Charismatic Leadership

When Hitler came to power in 1933 it was not by a majority vote. In spite of this his strength as a leader lay in the German nation's ecstatic belief in the Fuehrer.

On 1st August 1934 the offices of Reich President and Reich Chancellor were merged to form the unique office of 'Fuehrer and Reich Chancellor' which was later shortened to 'Fuehrer'. According to its official Nazi conception Fuehrer power was 'free and independent, exclusive and unlimited'. This is in direct accordance with Weber's definition of charismatic leadership in that it rejected 'all ties to any external order in favor of the exclusive glorification of the genuine mentality of the prophet and the hero'.

Hitler as a VisionaryHitler gained this 'charismatic status' partially because of his political skill and magnetism. He had experienced considerable success in cutting the unemployment figures and this was essential. However, it was somewhat overshadowed by his unshakeable conviction in his own historical role. Hitler often spoke of a 'mission' and claimed 'I go with the certainty of a sleepwalker along the path laid out for me by Providence'. It was this 'mission' achievable only for Hitler that allowed him to transcend bureaucratic processes and become 'charismatic'.Hitler's Style of LeadershipThis is certainly in keeping with the way in which he clumsily handled legislative procedures. Edward Peterson has asserted that Hitler 'was bored by paper work which meant he usually signed papers on administrative and personnel matters without reading them'. Hitler was a visionary, not a natural head of state and this is how he perceived his role.Hitler's Restrictions as a Charismatic LeaderDespite Hitler's notionally limitless power as Fuehrer, he was in fact acutely aware of how his power could be circumscribed. In order for him to maintain his prophetic status Hitler required the support of the Party and more importantly the German nation. Peterson has stated that Hitler 'never ran counter to the opinion of his Gauleiter, his district commissioners. Each of these men was in his power, but together they held him in theirs

Similarly, Hitler was aware of his reliance on the German people and this affected the way in which he defined his role. He boldly declared 'I am not a dictator and never will be a dictator... as a dictator any clown can govern'. As such he conceived of his role in accordance with his unshakeable conviction of his mission; he did not dictate, he was Germany's guide. Unsurprisingly then, he did not believe in the existence of 'unlimited power'. However, he knew his weakness lay in his followers and this explains why in defeat he blamed Germany for his own military errors.

SummaryHitler conceived of his role in terms of a duty to restore Germany to a great power, and this belief in the importance of his historic mission, shared by the German nation, enabled him to take on the characteristics of Weber's 'charismatic leader'. Hitler's own perception was a romantic notion of an artist with a vision, rather than a politician with an aptitude for running a state machine. As such he could transcend official bureaucratic procedures in governing the country and he relied on German support to do so.Poor leadership surrounds us, it’s a fact of life and they seemingly find a way to keep their jobs. They are more focused on their personal needs and not of the professional needs of those below them. They have a hard time developing their employees because they lack the proper management techniques to do so. A leader is someone who you would follow to a place you would not go alone. Leadership is about action not status.

However, the question is, how do we know when we are dealing with these flaw ridden individuals. A lot of the time, a poor manager can make the perception that he/she is busy and organized. I have developed a small guideline that can help pinpoint these leaders.

Incompetent Leaders will:

1. Delegate work rather than balance workloads. This allows all attention to be diverted from them in case of failure. It may seem to them that are managing their people but in actuality they are creating work imbalances within the group. It can create unnecessary overtime for some and under utilization of others. A good manager is aware of the skill sets of all the people below them and should allocate work accordingly while trying to enhance the skills of everyone to be even more productive.

2. Reduce all answers to Yes or No rather than explaining their reasoning. This is an example of a crisis manager who cannot think farther than a few hours ahead. A yes/no manager find it a waste of time to find the real answer through intellectual thought. They are already thinking about the next crisis.

3. Not separate personal life from professional life. They will bring their personal problem to work. Working for these types of managers can be very dramatic. They are unable to separate their emotional imbalances while trying to manage people. They are less focused and will not give you the attention and direction you need for success.

4. Manage crisis. If you are a company that has crisis managers, then you can say goodbye to innovation and progression. Proactive thinking is critical to the success of any company. If you are not finding ways to stop or reduce the amount of crisis that has to be managed, then your competition will pass you by. Leaders have to think out of the box and make change.

5. Create an environment where mistakes are unacceptable. Being held accountable for wrong decisions is a fear for them. Making mistakes only helps you become a better person, manager, etc. I use the analogy of a basketball player that has no fouls. If they are not going for the ball and taking chances with their opponent, then they are trying hard enough. Take a chance and don’t be scared.

Limitations of a charismatic leader

Even though someone may meet all the criteria set for a charismatic leader, there are still a number of limitations inherent in the effectiveness of a charismatic leader. In creating a vision and inspiring followers, for example, a leader may create unrealistic expectations. Of course, it would be disadvantageous if a leader failed to fulfill the expectations he created. If the results do not match expectations, it is very likely the followers will feel betrayed. They will then become frustrated and furious. Some could even vent their anger at the individuals who seemingly betrayed these expectations.A strong leader can give different psychological responses to his followers. Some of them, or in a number of cases the whole organization, will be too dependent on the leader. Meanwhile, the other followers are not happy with the presence of someone who is strong and will spend their time and energy trying to show that the leader is wrong.In an organization (and a state) led by a charismatic leader, it is very difficult to find a successor. The followers, who are used to such a strong leader, will always compare their new leader with the old one. These followers will frequently require evidence that the present leader is as strong as the leader he replaced. And in many cases, this new leader will eventually fail because, as noted earlier, many aspects of charismatic leadership are personality traits that are difficult to build in someone who is in actual fact void of them.

Not the essence of effective leadership

A charismatic leader is a component that is needed by an organization (or a state) that requires effective transformation or reorganization.

However, there are still many other leadership characteristics required to lead effectively.Although a leader may be charismatic, his management ability in responding to various problems may be limited. This could be attributable to the limitations of time, energy, expertise and attention on the part of this charismatic leader. Therefore, if various problems turn up simultaneously and demand different skills (for example those related with the market, technology, products and finance), which the leader may not have, there will be a blunder. In fact, various types of strategic changes require different types of management and demand different personal characteristics as well.

Q .15: Explain detail Seligmans’s Theory of learned helpnesse.

Ans:- In early 1965, Martin E. P. Seligman and his collegues, while studying the relationship between fear and learning, accidentally discovered an unexpected phenomenon while doing experiments on dogs using Pavlovian (classical conditioning). As you may observe in yourselves or a dog, when you are presented with food, you have a tendency to salivate. Pavlov discovered that if a ringing bell or tone is repeatedly paired with this presentation of food, the dog salivates. Later, all you have to do is ring the bell and the dog salivates. However, in Seligman's experiment, instead of pairing the tone with food, he paired it with a harmless shock, restraining the dog in a hammock during the learning phase. The idea, then, was that after the dog learned this, the dog would feel fear on the presentation of a tone, and would then run away or do some other behaviour.Next, they put the conditioned dog into a shuttle box, which consists of a low fence dividing the box into two compartments. The dog can easily see over the fence, and jump over if it wishes. So they rang the bell. Surprisingly, nothing happened! (They were expecting the dog to jump over the fence.) Then, they decided to shock the conditioned dog, and again nothing happened! The dog just pathetically laid there! Hey, what's going! When they put a normal dog into the shuttle box, who never experienced inescapable shock, the dog, as expected, immediately jumped over the fence to the other side. Apparently, what the conditioned dog learned in the hammock was that trying to escape from the shocks is futile. This dog learned to be helpless! This result was opposite to that predicted by B.F. Skinner's behaviourism, which argued that the dog must have been given a positive was not a very good argument. One could alternately argue that when the shock went on while the dog was sitting, it was being punished for sitting. Reminds me of that old joke, "Q: Why did the man pound his thumb with a hammer? A: Because it felt so good to stop.) These observations started a scientific revolution resulting in the displacement of behaviourism by cognitive psychology. What you are thinking, determines your behaviour (not only the visible rewards or punishments).The theory of learned helplessness was then extended to human behaviour, providing a model for explaining depression, a state characterized by a lack of affect and feeling. Depressed people became that way because they learned to be helpless. Depressed people learned that whatever they did is futile. During the course of their lives, depressed people apparently learned that they have no control. Learned helplessness explained a lot of things, but then researchers began to find exceptions, of people who did not get depressed, even after many bad life experiences. Seligman discovered that a depressed person thought about the bad event in more pessimistic ways than a non depressed person. He called this thinking, "explanatory style," borrowing ideas from attribution theory. For example, lets say you fail a math exam. How do you explain why? You could think: 1) I am stupid. 2) I'm not good in math. 3) I was unlucky, it was Friday the 13th.4) The math teacher is prejudiced.

\5) The math teacher grades hard. 6) I was feeling ill that day. 7) The math teacher gave an especially hard test this time. 8) I didn't have time to study. 9) The teacher grades on a curve. Seligman found that these explanations could be rated along three dimensions: personalization: internal vs. external, pervasiveness: specific vs. universal, and permanence: temporary vs. permanent. He found that the most pessimistic explanatory style is correlated with the most depression: The statement "I am stupid" is classified as internal (use of I), universal, and permanent. This response conveys a sense of Discouragement, hopelessness, and despair. On the other hand, a more optimistic person would blame someone or something else, such as "The math teacher gave an especially hard test this time." The most optimistic explanatory style is external, specific and temporary. Conversely, for a good event, the explanatory style reverses. For example, for a perfect score on the math exam, the depressive would say: "I was lucky that day," discounting his intelligence. The optimist would say something much more encouraging, such as "I am smart." We often learn explanatory styles from our parents.There are advantages to both optimistic and pessimistic explanatory styles. Certain jobs call for an optimistic outlook, such as inventing or sales. Other jobs, such as accounting or quality control, call for a more pessimistic outlook.

Q16) Explain in detail Seligman’s Theory of Learned optimism

Ans: Seligman suggests in his book "Learned Optimism" that one can overcome depression

by learning new explanatory styles. This is the basis of cognitive therapy. In such therapies,

the counsellor challenges the client's beliefs and explanations of life's events. If you feel

depressed because you failed that last exam, then dispute the explanation, and learn or search

for a more optimistic one according to the above criteria. Or read a few jokes. The whole

self-help movement is based on the optimistic belief that we can change ourselves for the

better.

Optimism – reacting to setbacks from a presumption of personal power

Bad events are temporary setbacks

Isolated to particular circumstances

Can be overcome by my effort and abilities

Pessimism - reacting to setbacks from a presumption of personal helplessness:

Bad events will last a long time

Will undermine everything I do

Are my fault

Optimism psychology is in the field of cognitive science.  It is not magic.  But, the event-

explanations of optimism can be practiced and learned, even by those who have not

consistently used them previously.   

Optimism:

Inoculates against depression

Improves health

Combines with talent and desire to enable achievement

Q. 17. Take any leader whom ypou have studied through literature review in this semester in the subject of HPL analyze his leadership style.

Ans:- late Mr. Dhirubhai Ambani. Dhirubhai Ambani, was an Indian business tycoon and founder of Reliance Industries Limited. Known as Dhirubhai, was born on 28 December 1932, at Chorwad, Junagadh in the state ofGujarat, India, into a Modh family of very moderate means. When he was 16 years old, he moved to Aden,Yemen and worked there as a gas-station attendant, and as a clerk in an oil company. Ten years later, he returned to India and started a business (Reliance) with a capital of Rs. 15000.00 (US$ 375). Fables about him abound, many of which were recalled by the media when he passed away on July 6.The most-quoted one was the familiar rags-to-riches story, of a determined individual who ostensibly arrived in Bombay (now Mumbai) from Aden in the late 1950s with Rs.500 in his pocket and went on to build a Rs.65,000-crore empire. He had established himself as a legendary leader among industrial capitalists in India.Despite his almost Midas Touch, Ambani has known to have flexible values and an unethical streak running through him. There are stories of ruthlessness, when it came to bending the rules and winning the game that made him the success that he was.  Fables such as these, built often on a modicum of truth and sometimes from thin air, were testimony to the success of Dhirajlal Hirachand Ambani. Needless to say, as is true of all winners, in Dhirubhai’s case too, individual qualities – an acute mind, a sense of the other, a degree of cunning, an element of ruthlessness and a large dose of gumption that is required to make the dash to victory – would have contributed to the end result in no small measure. Reliance focussed on the domestic market where revenue opportunities were not lacking, and margins were much higher, permitting the generation of huge investible surpluses. In adopting this strategy, Ambani’s Reliance group acquired through outright purchase the best-practice technologies in the field. With world-scale plants, Reliance proved doubly competitive: not only was it able to displace both domestic producers and international suppliers from the market at prevailing customs duty rates, but in fact it could remain competitive even when duty rates were reduced. The strategy of ‘going it alone’, while investing in world-scale plants based on outright purchase of technology, obviously raised domestic financing requirements substantially.

Reliance under Ambani decided to enhance its equity strength to undertake new investments by tapping stock markets. It was here that Ambani exploited the other opportunity that the changing times offered. This was the possibility of mobilizing money from households through the stock market.

India’s stock markets were until the 1970s dominated by the financial institutions and a few large players, with trading activity being minimal and limited to a few shares. The first instance of equity serving as an option for investment of household savings arose when foreign companies, pressured by the Foreign Exchange Regulation Act (FERA), decided to dilute their equity through sale in small lots. Reliance made its first public issue in 1977, when it offered a chunk of Rs.10 shares to investors. The shares opened at Rs.23 reflecting the premium that Reliance was in a position to command. In the years to come, Reliance was to exploit the market through many routes to finance its breakneck expansion, garnering in the process huge premiums on the shares of existing companies. By the end of 1992, out of a total capitalization of Rs.34, 255 crores, share premium reserves and surpluses alone accounted for Rs.7,640 crores. Besides this, Reliance was to use the convertible debenture route and the American Depository Receipt (ADR) and Global Depository Receipt (GDR) issues to much benefit.By inclination and instinct, Dhirubhai was a fighter. Dhirubhai’s greatest acumen was in understanding finance. He earned the devotion of millions not because he was a great industrialist, but because he treated his shareholders very well. He was the first Indian entrepreneur to understand the importance of the ordinary investor.Dhirubhai realized that he would have no financing headaches if he could earn the trust of investors, and he took care to ensure that the investor earned a decent return. Not only by way of dividends, but by continuous appreciation of the Reliance scrip.He was a man who always dreamed big. At a time when capacities were fragmented and small, Dhirubhai dared to dream big. Instead of setting up capacities that would cater to current demand, he set up the capacity and then set about creating the demand. He knew where latent demand existed and decided to supply it. He made no compromises on quality, insisting that his machinery must be state-of-the-art.