Introduction:

Leadership may be defined as a process of influencing group activities towards the

achievement of certain goals. Thus, the leader is a person in a group who is capable of
influencing the group to work willingly. He guides and directs other people and
provides purpose and direction to their efforts. The leader is a part of the group that he
leads, but he is distinct from the rest of the group.

As defined by George R. Terry “Leadership is the activity of influencing people to

strive willingly for group objectives”. Leadership naturally implies the existence of a
leader and followers as well as their mutual interaction. It involves interpersonal
relation, which sustains the followers accepting the leader’s guidance for
accomplishment of specified goals.

Managers have to guide and lead their subordinates towards the achievement of group
goals. Therefore, a manager can be more effective if he is a good leader. He does not
depend only on his positional power or formal authority to secure group performance
but exercises leadership influence for the purpose. As a leader he influences the conduct
and behaviour of the members of the work team in the interest of the organization as
well as the individual subordinates and the group as a whole. But leadership and
management are not the same thing. Management involves planning, organising,
coordinating and controlling operations in achieving various organisational goals.
Leadership is the process which influences the people and inspires them to willingly
accomplish the organisational objectives. Thus, a manager is more than a leader. On the
other hand, a leader need not necessarily be a manager. For instance, in an informal
group, the leader may influence the conduct of his fellow members but he may not be a
manager. His leadership position is due to the acceptance of his role by his followers.
But, the manager, acting as a leader, has powers delegated to him by his superiors. His
leadership is an accompaniment of his position as a manager having an organised
group of subordinates under his authority. Thus, managerial leadership has the
following characteristics.

 It is a continuous process whereby the manager influences, guides and directs

the behaviour of subordinates.
 The manager-leader is able to influence his subordinates behaviour at work due
to the quality of his own behaviour as leader.
 The purpose of managerial leadership is to get willing cooperation of the work
group in the achievement of specified goals.
 The success of a manager as leader depends on the acceptance of his leadership
by the subordinates.
 Managerial leadership requires that while group goals are pursued, individual
goals are also achieved.

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Characteristics of leadership:

• Leadership indicates the existence of followers : one cannot imagine the

leadership without followers. The number of followers the leader has is an
indicator of his popularity and quality in an organizational formal structures, a
manager has to play a dual role of leader and follower in order to relate both
upward and downward.

• Leadership is reciprocal: Leadership is not dominating the followers. It is

mutual relationship based on give and take nature of leader and the follower.
Both a leader influence or in turns get influenced by followers.

• Leadership involves common interest: The objective of leader and his

subordinate should be same. It is the leader who defines the goals which are
common and makes them understand to all.

• Influencing behavior: Leadership envisages the idea of influence. The leader

should be able to influence the way the group behaves and also be able to mould
the behavior in a way which helps to attain the organizational goals.

Functions of a leader:

Functions performed by a leader are situation based, and he has to carry out set of
functions which are dependent on wide variety of factors:

1. Setting organizational goals and achieving them: The leader will set the goals,
prepare plans to achieve the objectives and is responsible for executing the plans.
2. Operational functions of the organization: A leader has to perform following
functions:
 As an expert in the principle activities of the organization.
 He is acting as a representative of a group.
 Role of a controller of internal relationships within the organizations.
 Should act as a administrator, arbitrator and mediator.
3. Symbolic figure of the group:
 The leader act as a role model for the group he represents.
 Leader provides the stability and security to the group.
 He act as an ideal, father figure to the group.

Types of Leaders

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 • Leader by the position achieved

• Leader by personality, charisma

• Leader by moral example

• Leader by power held

• Intellectual leader

• Leader because of ability to accomplish things

Leadership traits

• Intelligence

– More intelligent than non-leaders

– Scholarship

– Knowledge

– Being able to get things done

• Physical

– Doesn’t see to be correlated

• Personality

– Verbal facility

– Honesty

– Initiative

– Aggressive

– Self-confident

– Ambitious

– Originality

– Sociability

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 – Adaptability

THEORIES OF LEADERSHIP

There are a number of theories which provide explanations regarding various aspects of
the leadership
phenomenon. Let us examine some of the theories.

Trait Theory
This is the earliest theory based on a distinction between the personal qualities or traits
of successful leaders.

The theory suggests a list of personality traits or characteristics which must be present
in a person for his success as a leader. According to this theory, leaders must be
physically strong and well-built, intelligent, honest and mentally mature. He must have
initiative, self-confidence, ability to take decisions, and so on.

Since all individuals did not have these qualities, only those who had them would be
considered potential leaders. Following are the limitations of this theory :
* The trait theory is not accepted as a valid theory.
* There is no universally agreed list of traits associated with successful leaders.
* It is difficult to measure the traits and, therefore it is not always possible to
distinguish between leaders and followers.

Behavioural Theory

The behavioural theories of leadership are based on the belief that leaders can be
identified by reference to their behaviour in relating to the followers. In other words, it
is suggested that leadership can be described in terms of what leaders do rather than
what they are. Behavioural theories have been presented mostly on the basis of research
studies. According to the studies conducted in the State of Michigan, USA, leaders who
treat their subordinates as human beings, are concerned about their well-being, and
encourage and involve them in goal setting, are more effective. They are described as
‘employee-centred’ leaders.

On the other hand, leaders who are ‘production-centred’ emphasize job performance in
conformity with prescribed standards. He exercises close control over the employees as
if they were tools of production. Such a leadership is associated with unsatisfactory
work performance due to the low morale of employees.

Studies conducted in Ohio State University showed two dimension of leader’s

behaviour viz., Initiating structure and Consideration. Initiating structure refers to the
leader’s behaviour in delineating the relationship between himself and members of the

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work group and in endeavouring to establish well defined pattern of organisation,
channels of communication and methods of procedure. Whereas, consideration refers to
behaviour indicative of friendship, mutual trust, respect and warmth in the relationship
between leader and the members of his staff.

Situational Theory
In the situational theory of leadership the success of leadership depends upon the
situation in which the leader operates.
According to leadership contingency model developed by Fred E. Fiedler, the leader’s
effectiveness depends upon three situational factors:
 Leader followers relations, that is the degree of follower’s trust, confidence and
respect for the leader.
 The extent to which the task performed by subordinates is routine or non routine
(known as task
structure).
 The position power of the leader, that is, the power associated with the rank and
position of the leader in the organisation. He defined favourableness of a
situation as the degree to which the situation enables the leader to exert his
influence over his group.

The most favourable situation for leaders to influence their group is one in which they
are well liked by the members, the task is highly structured (i.e. ,routinised and
predictable) and the leader has enormous power attached to his position. On the other
hand, the most unfavourable situation for leaders is one in which they are disliked, the
task is highly unstructured and he will have little position power.

Appropriateness of Leadership Behaviour for various

Group situations

Task Oriented Relationship Oriented Task Oriented

Very favourableleadership situation Intermediate favourableleadership situation
Very unfavourableleadership situation

Look at Figure which shows that task oriented leaders tend to perform best in group
situations that are either very favourable or very unfavorable to the leader. On the other
hand, relationship-oriented leaders tend to perform best in situations that are
intermediate (medium) in favourableness.

Another situational theory is the Path-Goal Theory. According to this theory, leaders
are effective due to their influence on followers’ motivation, ability to perform, and
their satisfaction. Subordinates are motivated by the leader to the extent he is able to
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influence their expectancies relating to the performance and attractiveness of the goal.
Further, individuals are satisfied with their job if they believe that (a) performance of
the job will lead to desirable outcomes, and (b) with hard work they will be able to
achieve the desirable outcomes.

LEADERSHIP STYLES

The dominant behaviour pattern of a leader-manager in relation to his subordinates is

known as leadership style. There are three basic styles of leadership as follows:
1) Autocratic or Authoritative Style
2) Democratic or Participative Style, and
3) Laissez-faire or Free-rein Style

Autocratic or Authoritative Style

An autocratic leader centralises power and decision making in himself and exercises
complete control over the subordinates. In this style subordinates are compelled to
follow the orders of the leader under threat or penalties. They have no opportunity to
take part in goal setting, or take initiative or make suggestions. They are subject to close
supervision and, thus have a tendency to avoid responsibility. The autocratic manager
has little concern for the well being of employees, who suffer from frustration and low
morale. They do not have any sense of belonging to the organisation and try to work as
little as possible.

Limitations: It should be clear from the above that there are several limitations of the
autocratic style of leadership.
 It results in low morale due to the inner dissatisfaction of employees.
 Efficiency of production goes down in the long run.
 It does not permit development of future managers from among capable
subordinates.

Despite the above limitations, autocratic leadership can be successfully applied in the
following situations:
* When subordinates are incompetent and inexperienced.
* The leader prefers to be active and dominate in decision-making.
* The company endorses fear and punishment for disciplinary techniques.
* There is a little room for error in final accomplishment.

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Under conditions of stress when great speed and efficiency are required.
Since the leader manager takes all decisions in autocratic style, there is uniformity and
consistency in decision-making.

Democratic or Participative Style

The democratic style is also known as participative style. In this style, decisions are
taken by the leader in consultation with the subordinates and with their participation in
the decision-making process.

The participative leader encourages subordinates to make suggestions and take

initiative in setting goals and implementing decisions. This enables subordinates to
satisfy their social and ego needs, which in turn, lead to their commitment to the
organisational goals and higher productivity. Frequent interactions between the
manager and subordinates help to build up mutual faith and confidence.

Several benefits can be derived from the participative style of leadership as listed
below:
It helps subordinates to develop their potential abilities and assume greater
responsibilities.
It provides job satisfaction and improves the morale of employees.
The group performance can be sustained at a high level due to the satisfied and
cohesive nature of the group.

However, the democratic style cannot be regarded as the best style under all
circumstances. Its limitations
are as follows:
 Decisions taken through consultation may cause delay and require compromises
to meet different viewpoints.
 A few vocal individuals may dominate the decision-making process.
 No one individual may take the responsibility for implementing the decision
taken by the group as a whole.

Despite the above limitations, democratic style is suitable in the following situations:
* When subordinates are competent and experienced.
* The leader prefers participative decision-making process.
* Rewards and involvement are used as the primary means of motivation and
control.
* The leader wishes to develop analytical and self-control abilities in his
subordinates.
* The organisation has clearly communicated its goals and the objectives to the
subordinates.

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Laissez Faire Leadership Style

Laissez faire leadership style is just the opposite of autocratic style. A manager, who
adopts this style, completely gives up his leadership role. The subordinate group is
allowed to make decisions and it is left to the members of the group to do as they like.
The role of any leader is absent. The group members enjoy full freedom as regards goal
setting and acting on it. Hence, there is chaos and mismanagement of group goals.
However, laissez faire leadership is found to be quite suitable where the subordinates
are well-trained, competent and the leader-manager is able to fully delegate the powers
of decision-making and action to the subordinates.

Laissez faire style is suitable in the following situations:

when leader is interested in delegating decision-making fully.
Subordinates are well trained and highly knowledgeable.
Organisation goals have been communicated well.

Edit

Managerial Grid : The managerial grid refers to a diagrammatic representation of the

possible combinations of concern for people and concern for production which may be
reflected in the style of leadership. The concept of managerial grid was developed by
Blake and Mounton in 1964.

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As shown in the Figure 15.6 , there are nine degrees of concern each for people and
production. Combining ower degrees and higher degrees of concern, five basic styles of
leadership are presented as follows (No. 1 representing minimum concern, and No. 9
maximum concern):

 • 1,1 style, where the manager has minimum concern for people as well as
production, is known as impoverished management. This represents a casual
attitude of the manager towards his job and the organisation cannot be expected
to survive”.

 9,1 style reflects the manager’s highest concern for production but least concern
for people. It is known as task management.

 1,9 style in which the manager has the maximum concern for people and
minimum concern for production is described, as country club management. It
implies that the manager is inclined to keep people happy expecting that
happiness will make them more efficient, which is not true for business
enterprises.

 5,5 styles represents moderate concern for both people and production and
therefore known as middle of road management. This style of leadership is
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 preferred by many managers whose approach to management is that of “live and
let live”.

 9,9 style is the best combination of concerns for people and production with
maximum concern for both.

In this case, the manager tries to integrate the objectives of the organisation with
the objectives of the people employed. This style therefore represents team
management. It may be suggested that 9.9 management style is likely to be most
effective.

Effective and Ineffective Styles

Effectiveness depends on the situations demands of a specific environment. When the
style of a leader is appropriate to a given situation, it is termed effective. On the other
hand, when the style is inappropriate to a given situation it is termed ineffective. Look
at Figure 15.7 which shows the effective dimension of leadership.

The basic styles of leadership are further divided into eight styles according to their
degrees of effectiveness i.e., as more effective and less effective styles. The following are
regarded as more effective styles.

Executive : Used by a manager this style attaches maximum importance to work as well
as the people. Such a manager is able to motivate people and utilise the team effectively.
He sets high standards of performance and can accomplish the goals successfully.

Developer : The manager adopting this style attaches greatest importance to the people
at work and has minimum concern for work. He devotes maximum attention to the
development of individual subordinates and believes in their capability.

Benevolent Autocrat : The manager whose attitude and style are those of a benevolent
autocrat has high concern for work and low concern for people. But he is able to achieve
the goals without causing any resentment among the subordinates.

Bureaucrat : With a bureaucratic style the manager is able to control the work-situation
and achieve goals by means of rules and procedure. He has minimum concern for
people and work as such. The less effective (or ineffective) styles are stated to be those
which are not appropriate to the situation, these are as follows:

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Compromiser : A manager who is equally concerned with people and work in a
situation which requires emphasis on one of these, is a poor decision-maker due to
pressures on both counts. Thus, he is ineffective manager leader.

Missionary: The missionary manager is one who aims at harmonious relations among
people as an ideal and is little concerned with work, although the situation requires
greater emphasis on work. He is unable to get results.

Autocrat: An autocratic manager is interested only in work and results thereof, whereas
the situation requires relation-orientation. Such a manager lacks confidence in his
subordinates and depends on highhanded management. So his leadership fails in the
long-run.

Deserter : The manager who is concerned with neither people nor work reflects a
passive attitude towards his job. He is an escapist.

Factors Influencing Leadership Effectiveness

Taking an overall view of the question of effectiveness of leaders, some writers have
identified a number of factors that influence the leader and his effectiveness. These
factors are:
 The leader’s own personality, past experience and expectations.
 The expectations and behaviour of his superiors.
 The subordinates’ characteristics, expectations and behaviour.
 The requirements of tasks to be performed by subordinates. Expectations and
behaviour of fellow managers (peers).
 Organisational culture (climate) and policies.

QUALITIES OF AN EFFECTIVE LEADER

A leader cannot be effective unless he possesses certain qualities of head and heart.
Irrespective of the nature of the manager-leader’s own responsibilities of the job and the
style adopted by him, a number of qualities are generally found to be possessed by the
effective leader. The more important of these qualities are listed below:

 Mental and physical health: To be able to bear the pulls and pressures of
leadership, it is essential for the leader to have sound health both mental and
physical. Along with a balanced temperament and optimistic outlook, he must
possess stamina and sound health.

 Empathy: A leader must have the capacity to appreciate others and look at
things from his subordinates’ angle. This attitude of the leader motivates his
subordinates.

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  Self-confidence: Confidence about one’s leadership ability makes it possible for
a leader to analyse and face different situations and adopt a suitable style. Lack
of self-confidence often prevents managers to adopt participative style and
repose trust in his subordinates.

 Awareness of others’ opinion about himself : A leader having self-confidence

should not ignore how others perceive him as a leader. He must be aware of his
strength and weakness in relation to his subordinates.

 Objectivity: A leader who is effective does not get carried away by emotions. He
is fair and objective in his dealings with subordinates.

 Knowledge and Intelligence: A leader to be effective must have knowledge of

group behaviour, human nature, and activities involving technical and
professional competence. He must have intelligent perception of human
psychology and ability to think clearly and argue cogently on points of dispute.

 Decisiveness: Decision making is a necessary but difficult task for every leader.
A leader often has to take initiative, exercise mature judgement while taking
decisions. Besides, he has to have foresight, imagination and creative ideas for
effective decision making. Open mindness is yet another essential quality for that
purpose.

 Ability to Communicate: The skill of effective communication of goals and

procedure of work is extremely important in leadership. To achieve desired
results and coordination of efforts in a group, oral communication is of great
significant.

 Sense of purpose and responsibility: A leader must have clarity of purpose and
responsibility to be able to inspire his subordinates to achieve specific goals.

 Other Qualities : Enthusiasm, courage, sense of direction, judgement, tact,

courtesy and integrity are also regarded as necessary qualities for a leader to be
effective.

Emerging Leadership Qualities

As you must be aware that several changes like globalisation, liberalisation,
technological revolution,
increasing participative styles of functioning, decreasing hierarchical structure and
gradual transformation of organisation structure; etc. are taking place very fast. These
changes require new leadership quality to manage the dynamic situations. Pareek Udai
has grouped the characteristics of leaders of tomorrow into two categories : Personal
qualities and role related qualities. They are as follow.

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Personal Qualities include :
 Internality
 Maverick Mindset
 Optimism
 Self restraint
 Value orientation
 Social concern
 Rootedness; and
 Empowering

Role Related Qualities include :

 Envisioning
 Strategy
 An enabling structure
 Customer orientation
 Networking competence
 People first
 Synergy building; and
 Culture building

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