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
Laissez-Faire Leadership Style
Definition: The Laissez-Faire or Free-Rein is the leadership style wherein the leader gives full freedom to his subordinates to act on their own. Here, the leader once defines the goals, policies, programmes and the limitations for action and then leaves the remaining process to be accomplished by the subordinates on their own. In Laissez-Faire leadership style, the leader … [Read more...] about Laissez-Faire Leadership Style
Participative Decision Making
Definition: In the Participative Leadership Style, the leader encourages his subordinates to contribute their ideas or opinion in the group situations and share responsibility in them. There are four major types of decision-making style that a leader adopts to get the group goals accomplished. These are: Collective Decision Making: Under this leadership style, all the … [Read more...] about Participative Decision Making
Participative Leadership
Definition: The Participative Leadership Style often called as Democratic or Ideographic style wherein, the leader decentralizes the decision-making process and encourages his teammates to contribute towards the goals and share responsibility in them. In participative leadership style, the leader motivates the team members to get physically and mentally involved in the group … [Read more...] about Participative Leadership
Autocratic Leadership
Definition: In the Autocratic Leadership Style, the leader centralizes the decision-making power in himself and give directions to his subordinates as to what they are supposed to do and how they are required to perform the given task. Thus, a leader enjoys the full authority and imposes his will on others. The autocratic leadership style is also known as authoritarian, … [Read more...] about Autocratic Leadership
Leadership Styles
Definition: The Leadership Styles are the behavioral patterns that a leader adopt to influence the behavior of his followers, i.e. the way he gives directions to his subordinates and motivates them to accomplish the given objectives. The leadership styles can either be classified on the basis of behavioral approach or situational approach. These approaches are comprised of … [Read more...] about Leadership Styles
Memorandum of Understanding (MoU)
Definition: The Memorandum of Understanding or MoU is the performance agreement between two or more parties wherein they agree on the common lines of action. Generally, the parties opt for a memorandum of understanding when they don’t want the agreement to be legally enforceable and just want written proof of their oral commitments to each other. However, whether the … [Read more...] about Memorandum of Understanding (MoU)
Sources of Long Term Finance
Definition: The Sources of Long Term Finance are those sources from where the funds are raised for a longer period of time, usually more than a year. Long term financing is required for modernization, expansion, diversification and development of business operations. Generally, the companies resort to the sources of long-term finance when they have an inadequate cash balance … [Read more...] about Sources of Long Term Finance
Debentures
Definition: Debentures are the debt instruments used to raise additional capital from the general public, usually backed by the integrity and the creditworthiness of the issuer. Debentures usually offer more flexibility than a term loan as there is more variety with respect to the maturity, security, interest rate, repayment and special features. Debentures are the … [Read more...] about Debentures
Term Loan
Definition: The Term Loan is the primary source of long-term debt raised by the companies to finance the acquisition of fixed assets and working capital margin. It is also called as a term finance which means the money raised through the term loans is generally repayable in regular payments i.e. fixed number of installments over a period of time. Advantages of Term Loan … [Read more...] about Term Loan