Business

Definition: The Budget Deficit is the financial situation wherein the expenditures exceed the revenues. The Budget Deficit generally relates to the government’s expenditure and not the business or individual’s spending. The government’s collective deficits are termed as “National Debt”. In the case of a budget deficit, be it the Government or any business, it has to resort … [Read more...] about Budget Deficit

Definition: The Articles of Association or AOA are the legal document that along with the memorandum of association serves as the constitution of the company. It is comprised of rules and regulations that govern the company’s internal affairs. The articles of association are concerned with the internal management of the company and aims at carrying out the objectives as … [Read more...] about Articles of Association

Definition: The Memorandum of Association or MOA is the legal document that has to be filed with the registrar of companies at the time of incorporation of the company. It is often called as a memorandum and is comprised of fundamental conditions on the basis of which a company operates. The memorandum of association is the most important document that needs to be formulated … [Read more...] about Memorandum of Association

Definition: The Grid Training is the comprehensive organization development programme developed by Blake and Mouton, which focuses on the overall development of individuals, groups and the organization as a whole. The Grid Training programme is designed in such a way that it enables the individuals as well as the groups to ascertain their strengths and weaknesses and focus … [Read more...] about Grid Training

Definition: The Path-Goal Model of leadership is given by Robert House and others, who studied the relationship between the leadership styles and the situations. According to them, there is no single leadership style that fit in all the situations and therefore, they tried to predict the effectiveness of leadership styles in different situations. Robert House and Mitchell … [Read more...] about Robert House’s Path-Goal Model

Definition: Hursey and Blanchard’s Situational Model talks about the relationship between the leadership styles and the subordinate’s maturity. Here, the maturity means the ability and willingness of the subordinate directing his own behavior towards the job fulfillment. Thus, following are the two main considerations in Hursey and Blanchard’s model: Leadership style … [Read more...] about Hursey and Blanchard’s Situational Model

Definition: Fred Fiedler was the first amongst all the leadership theorists to talk about the situational variables. According to him, the effectiveness of the leadership style depends on the situation. Thus, he along with his associates identified the situational variables and studied about their relationship with the appropriateness of leadership styles. Fiedler’s … [Read more...] about Fiedler’s Contingency Model

Definition: The Three-Dimensional Grid or 3-D Leadership Model is developed by Professor Bill Reddin, who introduced the concept of “situational demands” which talks about the way in which the leader must behave to be most effective. The 3-D model has taken into the consideration the beliefs of the managerial grid and added one more dimension to it i.e. Effectiveness. The … [Read more...] about Reddin 3-D Leadership Model

Definition: Robert Blake and Jane Mouton have developed the Managerial Grid, also called as a leadership grid. According to them, the leadership styles can be identified on the basis of manager’s concern for people and production. Here, concern for people means the degree to which an individual is committed towards the goal achievement, maintaining self-esteem to workers and … [Read more...] about Blake and Mouton’s Managerial Grid

Definition: Rensis Likert along with his associates in Michigan University, USA conducted research to study the patterns and styles of managers over three decades, across 200 organizations and developed a four-fold model of the management system that helped in understanding the leadership behavior. Likert’s four systems of management are categorized as follows: … [Read more...] about Likert’s Four Systems of Management