Introduction to Management

Chapter Summary

Leading is the process of influencing individuals so that they contribute to the organization and group goals. In this chapter, we have discussed some of the key concepts in the study of human nature. A manager has to take all these concepts into account so that he can effectively direct human resources towards the achievement of organizational goals.

Different ideas conceived of by various management writers were discussed in the chapter. Edgar H. Schein proposed four concepts to understand human behavior. These are based on rational-economic assumptions, social assumptions, self-actualization assumptions, and complex assumptions. McGregor's two perspectives (Theory X and Theory Y) have also been discussed. However, no single model is sufficient to explain the complexities of people. Therefore, a manager has to adopt an eclectic approach, drawing upon different models to understand human behavior.

Creativity is an important factor in managing people. It is the ability and power to develop new ideas, while innovation involves the practical implementation of such ideas. The creative process comprises of four overlapping stages - unconscious scanning, intuition, insight, and logical formulation. Of the various techniques that help to enhance creativity, two important techniques, brainstorming and synectics, have been discussed in the chapter. Finally, the chapter discusses the importance of innovation and entrepreneurship in an organization and a manager's need to understand human nature and harmonize individual goals and objectives with those of the organization.

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