“Public” means the citizens of a given area – the people of a town, county, state, or country.
The word “public” also referes to activities administered by the state in the name of the entire community or for public interest.
State is a set of institutions that possess the authority to make the rules that govern the people in society, having internal and external sovereignty over a definite territory.
Sovereignty is the exclusive right to exercise supreme political (legislative, judicial, and executive) authority over a geographic region, group of people, or oneself.
State of Nature is a term in political philosophy used in social contract theories to describe the hypothetical condition that preceded governments.
“State of Nature”
is a term used in political phylosophy
was first posited by the 17th century English philosopher Thomas Hobbes in Leviathan
describes the hypothetical condition of humanity before the foundation of state,
is the condition before the rule of law,
is a synonym of anarchy,
leads to a "war of every man against every man“,
makes life "solitary, poor, nasty, brutish, and short."
“Social Contract”is an intellectual device intended to explain the appropriate relationship between individuals and their governments.
is a concept used in philosophy, political science, and sociology,
denotes an implicit agreement within a state regarding the rights and responsibilities of the state and its citizens,
more generally denotes a similar concord between individuals,
all members within a society are assumed to agree to the terms of the social contract by their choice to stay within the society.
Market Failures
public goods
externalities
transaction costs
imperfect information
imperfect competition
Public Goods are goods whose benefits are held in common (non-rivalness) and exclusion is not feasible.
It is difficult to exclude people (free-riders) who do not pay for the goods from enjoying the benefits they provide. Markets tend to under-supply public goods.
Public goods are both non-excludable and non-rival.
Negative Externalities - costs for another without one other’s permission or costs resulted from actions or exchanges between individuals or firms to people not involved in a given transaction.
Transaction Costs are incidental costs to buyers and sellers of making a transaction.
They include the costs of gathering information about markets, making decisions, negotiating a deal, writing contracts, etc.
Example: Anti-pollution agreement
Asymmetric Information exists in the situation when buyers or sellers are better informed about product characteristics then those with whom they trade.
Example: Drugs and Food products
Imperfect Competition or the situation in any market where the conditions necessary for perfect competition are not satisfied may result in monopoly.
What is Charismatic Leadership?
The sociologist Max Weber defined charismatic authority as "resting on devotion to the exceptional sanctity, heroism or exemplary character of an individual person, and of the normative patterns or order revealed or ordained by him.
The word charisma means “an inspired and divine gift”. Those who have the gift are divinely endowed with grace and talent to influence people.
Charismatic leaders capture the imagination and inspire their followers’ devotion.
Charismatic leaders
use personal charm to get things done; this article discusses the pros and cons of this approach, as well as leaders that used this style.
have a profound emotional effect on their followers.
inspire followers and their followers are loyal to them.
are often perceived as heroes and role models by their followers
This type of relationship is NOT typical of all leadership situations.
Three main elements in charismatic leadership:
Charismatic leader characteristics
Follower characteristics
Charismatic leadership situation
The difference between Ethical and Unethical leadership:
Unethical Leaders
use their power to advance their personal vision
exploit followers
censure opposing views and criticism
engage in one-way communication
megalomania
Ethical Leaders
use their power to achieve the common vision
serve others
develop and empower followers
accept criticism
open to communication with followers
heroic self-sacrifice
What is Management?
Management is the act of getting people together to accomplish desired goals and objectives using available resources efficiently and effectively.
Management involves power or formal authority given by a higher organizational authority.
With power comes responsibility for the use of organizational resources.
Managers are people who are responsible for planning, organizing, decision making, and controlling the work of other employees to achieve organization goals.
What is Leadership?
Leadership is an ability to persuade others to achieve defined objectives enthusiastically.
Leadership cannot be given by higher authority.
Leadership is based on the compelling personality of the leader rather than on formal position.
Leaders motivate, inspire people, mobilize people, get people to do things they have never done before (things that are not routine and involve risks).
Leaders provide people the vision of goals and guide them toward achievement of those goals.
Functions of Managers
Has a formal position
Does things by book and company policies
Implements policies and procedures
Must be obeyed
Focuses on the present
Maintains status quo
Is more rational
Remains aloof to maintain objectivity
Uses position power
Functions of Leaders
May not have a formal position
Does things by intuition
Creates a culture based on shared values
Is followed by people
Focuses on the future
Creates change
Is more emotional
Establishes an emotional link with followers
Uses personal power
Characteristics of Leaders |
|
1. |
They have a clearly articulated vision of what the knowledge agenda and knowledge management is about. |
2. |
They have enthusiastic knowledge champions who are supported by top management. |
3. |
They have a holistic perspective that embraces strategic, technological and organisational perspectives. |
4. |
They use systematic processes and frameworks (the power of visualisation). |
5. |
They "bet on knowledge", even when the cost-benefits cannot easily be measured. |
6. |
They use effective communications, using all the tricks of marketing and PR. |
7. |
There is effective interaction at all levels with their customers and external experts. Human networking takes place internally and externally on a broad front. |
8. |
They demonstrate good teamwork, with team members drawn from many disciplines. |
9. |
They have a culture of openness and inquisitiveness that stimulatesinnovation and learning. |
10. |
They develop incentives, sanctions and personal development programmes to change behaviours. |
Two sources of power
There are two sources of power: position power and personal power.
Position Power is derived from top management, and it is delegated down the chain of command.
Personal Power is derived from the follower based on the leader's behavior. Charismatic leaders have personal power. Friendship also gives personal power.
Seven types of power
The power possessed by leader implies a hierarchy of control of stronger over weaker. There are seven major bases of power:
Legitimate power is based on the follower’s perception that the leader has the legitimate right to exercise influence; (position power)
Reward power is based on the leader’s ability to mediate rewards for the follower;(position power)
Coercive power is based on the follower's fear that noncompliance with the leader will lead to punishment. (position power)
Information power is based on the user’s data desired by others. It involves access to vital information and control over its distribution to others. (position power)
Expert power is based on the perception that the leader possesses some special knowledge or expertise; (personality power)
Referent power is based on the follower’s liking, admiring, or identifying with the leader; (personality power)
Connection power is based on the user’s relationships with influential people. You rely on the use of contacts or friends who can influence the person you are dealing with. (personality & position power)
Position:
Legitimate Power
Reward Power
Coercion Power
Information Power
Personality:
Expert Power
Referent Power
Position and Personality:
Connection Power
Legitimacy is a characteristic of a social institution (government, organization, family, person) whereby it has both a legal and a perceived right to make binding decisions (to rule).