Definition: - Leadership is defined as the process of influencing group activities towards

the accomplishment of goals in a given situation. Leadership is unanimously agreed as a

psychological process of influencing followers and providing guidance to them.
Leadership is essential to influence people to achieve mutually compatible objectives. In
fact, all organizational success can be attributed to leadership.
FUNCTIONS OF A LEADER
1. Leader develops team work
2. Leader is a representative of subordinates
3. Leader is an appropriate counsellor
4. He uses power properly
5. Leader manages the time well
6. He strives for effectiveness
FEATURES OF LEADERSHIP

The features of leadership are as follows:

• Leadership is the process of influencing behavior of individuals of an

organization.

• Leadership uses non-coercive methods to direct and coordinate the activities of

the individuals of an organization.

• Leadership directs the individuals to attain the tasks assigned to them by following
the instructions of their leaders.

• A leader possesses qualities to influence others.

• Leadership gives the individuals, a vision for future.

• Leadership is a group activity. Leader influences his followers and followers also
exercise influence over his leader.

• Leadership is meant for a given situation, given group for a pre-determined period
of lime.
• Leadership is continuous process of influencing behavior. It encourages liveliness
in the group.

Importance of Leadership

The following points can judge the importance of leadership:

• A leader should act as a friend of the people whom he is leading.

• A leader must have the capacity to recognize the potentials of the individuals and
transform them into realities.

• A leader should have the confidence of the individuals of the organization.

• A leader must be able to unite the people as a team and build up team spirit.

• A leader should be able to maintain discipline among his group and develop a
sense of responsibility.

• A leader must be able to build up a high morale among the individuals of the
organization.

• A leader should motivate his people to achieve goals.

• A leader should try to raise the morale of the individuals and should maintain
ethical standards among the individuals.

• A leader should act as a link between the work groups and the forces outside the
organization.

MANAGING AND LEADING

Leading and managing are not synonymous. The difference between these tow terms
‘leading’ and ‘managing are as under.

1. Relationships: The managerial relationship arises within the organizational

context, whereas leadership does not have to originate in the context of the
 organization. For example, a mob can have a leader but cannot have a manager.
Further, in an organization informal groups have leaders – not managers.

2. Sources of influences: Managers obtain authority from the organization and the
leader gets power from his followers.

3. Sanctions: A manager has control over the positive sanctions such as promotion
and awards for high task performance and the contribution to organizational
objectives. He is also in a position to exercise negative sanctions such as with
holding promotion or increments, demotion in some cases of extreme default or
mistakes, etc. In a sharp contrast, a leader has altogether different type of
sanctions to exercises and grant. He can grant or withhold access to satisfying the
very purpose of joining the groups – social satisfaction and related task rewards.
These sanctions are essentially informal in nature. These informal sanctions are
relevant to the individual with belongingness or ego needs; whereas the
organization sanctions granted or exercised by the manager are geared to the
psychological and security needs of individual.

4. Role continuance: A manager may contribute in office as long as his performance

is satisfactory and acceptable to the organization. On the contrary, leader
maintains his position through the wish of the followers i.e. how well he facilitates
his group in accomplishing their objectives.

5. Reasons for following: People follow managers because their job description,
supported by a system of rewards and sanctions, requires them to follow. On the
other hand, people follow leaders on voluntary basis. Further, if there are no
followers, leader cases to exist. But even if there are no followers managers may
be there.

6. Accountability: Managers are accountable for the job behavior of those managed
as well as their own behavior. Leaders are not accountable for the behavior of
their followers in the similar fashion of the manager’s accountability.
 THEORIES OF LEADERSHIP

A number of theories and approaches to study leadership have been developed. There are
broadly three theories of leadership.

• Trait Theory

• Behavior Theory

• Contingency Theory

(a) Trait Theory

This theory of studying leadership is taken into consideration to analyze the personal,
psychological and physical traits of strong leaders. The assumption made in this theory
was that some basic traits or set of traits differentiates leaders from non-leaders. For
example, the leadership traits might include intelligence, assertiveness, above average
height, self-confidence, initiative and understanding of interpersonal human relations.
The existence of these traits determines the importance of leadership. Possession of these
traits helps the individuals to gain possession of leadership. Since all individuals do not
have these qualities, only those who have them would be considered potential leaders.

(b) Behavior Theory

The behavioral theory assumed that effective leaders behaved differently from ineffective
leaders. It also identified the need of consistency of behavior of good leaders. This theory
can be more clearly understood with the help of following case studies.

• Job-centered leadership behavior: The first was called job-centered leadership

behavior, which focuses on performances and efficient completion of the assigned tasks.
A job-centered leader interacts with group members to explain task procedures and
oversee their work.

• Employee centered leadership behavior: The second behavior was identified as

employee centered leader behavior, which focuses on, high performance standards to be
accomplished. This can be done by developing a cohesive work group and ensuring that
employees are satisfied with their jobs. Thus, the leader's primary concern is the welfare
of the ordinates. The Michigan researchers thought a leader could show signs of one kind
of behavior, but not both.

• The Ohio State Studies: At about the same time, a group of researchers at Ohio
State also began studying leadership. The Ohio State leadership studies also identified
two major kinds of leadership behaviors or styles, which are as follows:

• Initiating-structure behavior: In initiating-structure behavior, the leader clearly

defines the leader-subordinate roles so that everyone knows what is expected. The leader
also establishes formal lines of communication and determines how tasks will be
performed.

• Consideration behavior: In consideration behavior, the leader shows concern for

subordinates feelings' and ideas. He attempts to establish a warm, friendly and
supportive.

(c) Contingency Theory

The main assumption of contingency theory is that the behavior of an appropriate leader
varies from one situation to another. The motive of a contingency theory is to identify
key situational factors and to specify how they interact to determine appropriate behavior
of a leader

The three most important and widely accepted contingency theories of leadership
are as follows:

•The LPC theory: The first contingency theory of leadership is Fred Fielder's
Least Preferred Co-worker (LPC) Model. Fielder identified two types of leadership:
task-oriented and relationship-oriented. Fielder believes that a leader's tendency to be
task-oriented or relationship oriented remains constant.
 In- other words, a leader is either task-oriented or relationship-oriented while
leading his group members. Fielder used the Least Preferred Co-worker (LPC) scale to
measure the type of leadership. A leader is asked to describe characteristics of the person
with whom he or she is least comfortable while working. They can do this by marking in
a set of sixteen scales at each end, by a positive or negative adjective.

Transactional and transformational theory

The transactional leader (Burns, 1978) is given power to perform certain tasks and
reward or punish for the team’s performance. It gives the opportunity to the manager to
lead the group and the group agrees to follow his lead to accomplish a predetermined
goal in exchange for something else. Power is given to the leader to evaluate, correct and
train subordinates when productivity is not up to the desired level and reward
effectiveness when expected outcome is reached.

The transformational leader (Burns, 2008) motivates its team to be effective and
efficient. Communication is the base for goal achievement focusing the group on the final
desired outcome or goal attainment. This leader is highly visible and uses chain of
command to get the job done. Transformational leaders focus on the big picture, needing
to be surrounded by people who take care of the details. The leader is always looking for
ideas that move the organization to reach the company’s vision.

Leadership Styles –

Leadership style is the manner and approach of providing direction, implementing

plans, and motivating people. Kurt Lewin (1939) led a group of researchers to identify
different styles of leadership. This early study has been very influential and established
three major leadership styles. The three major styles of leadership are:

• Authoritarian or autocratic •

Participative or democratic •

Delegative or Free Reign

Comparison Chart

BASIS FOR TRANSACTIONAL TRANSFORMATIONAL

COMPARISON LEADERSHIP LEADERSHIP

Meaning A leadership style that A leadership style in which the

employs rewards and leader employs charisma and
punishments for enthusiasm to inspire his
motivating followers is followers is Transformational
Transactional Leadership. Leadership.

Concept Leader lays emphasis on Leader lays emphasis on the

his relation with values, ideals, morals and needs
followers. of the followers.

Nature Reactive Proactive

Best suited for Settled Environment Turbulent Environment

Works for Developing the existing Changing the existing

organizational culture. organizational culture.

Style Bureaucratic Charismatic

How many Only one More than One

leaders are there
in a group?

Focused on Planning and Execution Innovation

Motivational tool Attracting followers by Stimulating followers by setting

putting their own self- group interest as a priority.
interest in the first place.

How do Charismatic and Visionary Leaders Differ?

1. Charismatic leadership theory is an extension of attribution theory. (Example Martin
Luther king)
1) It says that followers make attributions of heroic or extraordinary leadership abilities
when they observe certain behaviors.
2.Several authors have attempted to identify personal characteristics of the
charismatic leader.
a) Robert House has identified three: extremely high confidence, dominance, and
strong convictions.
b) Warren Bennis found that they had four common competencies: they had a compelling
vision or sense of purpose;
 they could communicate that vision in clear terms that their followers could
readily identify with;
 they demonstrated consistency and focus in the pursuit of their vision; and
 They knew their own strengths and capitalized on them.

c)Jay Conger and Rabindra Kanungo at McGill University charismatic leaders have an
idealized goal that they want to achieve and a strong personal commitment to that
goal;
 they are perceived as unconventional;
 they are assertive and self-confident;
and they are perceived as agents of radical change rather than as managers of the
status quo.

3. Charismatic leaders influence followers by a four step process

a) Stating an appealing vision
b) Communicating high expectations and expressing confidence in followers
c) Conveying a new set of values and role models behaviors
d) Making self-sacrifices and engaging in unconventional behavior
4. Most experts believe individuals can be trained to exhibit charismatic behaviors.
5.There is an increasing body of research that shows impressive correlations
between charismatic leadership and high performance and satisfaction among followers.
a)Charismatic leadership may be most appropriate when the follower’s task
has an ideological component.
b)Second, charismatic leaders may be ideal for pulling an organization through
a crisis but become a liability to an organization once the crisis and the
need for dramatic change subside.
6. Visionary leadership goes beyond charisma.

.Visionary leadership is the ability to create and articulate a realistic, credible,

attractive vision of the future for an organization or organizational unit, that grows
out of and improves upon the present.
8. A vision differs from other forms of direction setting in several ways:
a) “A vision has clear and compelling imagery that offers an innovative way to improve,
which recognizes and draws on traditions, and connects to actions that people can take to
realize change.”

What is Trust?

. Trust is a positive expectation that another will not act opportunistically.

a) Most important, trust implies familiarity and risk.

2. Trust is a history-dependent process based on relevant but limited samples of

experience.

a)It takes time to form, building incrementally and accumulating.

(See Developing Your Trust-Building Skill.)

3. Trust is defined as the belief in the integrity, character and ability of the leader.
 4. Trust involves making oneself vulnerable.

A)By its very nature, trust provides the opportunity to be

disappointed or to be taken advantage of.

b) But trust is not taking risk per se; rather it is a willingness to take risk.

5. What are the key dimensions that underlie the concept of trust?

6. Recent evidence has identified five: integrity, competence, consistency, loyalty,

and openness.

a) Integrity refers to honesty, conscientiousness, and truthfulness.

(1)This one seems to be most critical when someone assesses another’s

trustworthiness.

b) Competence encompasses an individual’s technical and interpersonal

knowledge and skills.

c) Consistency relates to an individual’s reliability, predictability, and good

judgment in handling situations.

d) Loyalty is the willingness to protect and save face for another person.

e) The final dimension of trust is openness—can you rely on the person to give
you the full truth?

Why is it Important that Followers Trust Their Leaders?

1. Trust appears to be a primary attribute associated with leadership.

2.Research has shown that trust in leadership is significantly related to

positive job outcomes including job performance, organizational citizenship behavior,
job satisfaction, and organizational commitment

3.Part of the leader’s task has been, and continues to be, working with people to
find and solve problems, but whether leaders gain access to the knowledge and
creative thinking they need to solve problems depends on how much people trust
them.4.When followers trust a leader, they are willing to be vulnerable to the leader’s
actions.

5. Honesty consistently ranks at the top of most people’s list of characteristics they
admire in their leaders.

6.Now, more than ever, managerial and leadership effectiveness depends on

the ability to gain the trust of followers.

In times of change and instability, people turn to personal relationships for

guidance, and the quality of these relationships is largely determined by level of trust.

Developing Your Trust-Building Skill about the Skill Given the importance trust
plays in the leadership equation, today’s leaders should actively seek to build trust with
their followers.

Here are some suggestions for achieving that goal.

Steps in Practicing the Skill1.

1. Practice openness.

2. Be fair.

3. Speak your feelings.

4. Tell the truth.

5. Be consistent.

6. Fulfill your promises.

7. Maintain confidences.

8. Demonstrate confidence.
 Final Thought Regarding Leadership.

1.The belief that a particular leadership style will always be effective

regardless of the situation may not be true.

2. Data from numerous studies demonstrate that, in many situations, any behaviors
a leader exhibits are irrelevant.

3. Certain individual, job, and organizational variables can act as substitutes for
leadership, or neutralize the leader’s ability to influence his or her followers.

4.Characteristics of employees such as experience, training, professional

orientation, or indifference toward organizational regards can neutralize the effect of
leadership.

5.Jobs that are inherently unambiguous and routine or that are intrinsically
satisfying may place fewer demands on the leadership variable.

6. Organizational characteristics such as explicit formalized goals, rigid

rules and procedures, and cohesive work groups can substitute for leadership.

POWER & POLITICS

According to Stephen P.Robbins “Power is the ability to get things done in the
way one wants them to be done”.

Power is broader than authority. It includes organizational authority plus the

personal elements of the power holder. Power is the ability to influence and control
others in the organization. Power has both positive and negative aspects.

1. Power is interpersonal in nature

2. It is person-specific, time-specific and issue-specific.

3. Power includes dependency and reciprocal relationships

4. Power can expand and contract

5. Power is the most important dimension of any organizational activity.

6. It arises from a source. The greater and stronger the source, the greater is the
power.

7. If an authority or person does not exercise his power he is failing in his duty. May
be, somebody else will exercise that power.

SOURCES OF POWER

1. Legitimate power – It is based on position in the organization.

2. Random power – It is the ability to reward or punish.

3. Coercive power – It is the ability to pressurize others into obedience, indirect

methods of bringing about compliance.

4. Expert power – It arises from knowledge or skill of the boss.

5. Information power – It arises due to possession of valuable information.

6. Connection power – power that arises on account of ability to co-ordinate or liaise

with many people.

7. Apparent power – which the power holder shows, though he may not possess.

8. Reflected power – which a person exercises in the name of another authority.

POWER DYNAMICS

DISTRIBUTION – Power is never distributed equally across managers in an

organization. There are variations.

DEPENDENCY – Power is exercised in a situation of dependency. The more “y”

depends on “x”, the more “x” can exercise powers on “y”.
COMPLIANCE – People comply with legitimate power and expert power more often
than other forms.

UNCERTAINITY OF POWER – Power is uncertain like all other aspects of an

organization.

POLITICS

“When power is exercised for personal gains it is politics. It exists in all

organizations. Many times organizational decisions are made not in rational manner but
due to compromise, accommodation and bargaining”. Very often people feel that
politicking is necessary for advancement of career. Generally, greater the power, more
the politicking. That means more politics is involved at top management than in lower
levels.

DIMENSIONS OF POLITICAL BEHAVIOUR

1. Scapegoating others.

2. Passing the buck-not taking responsibility

3. Red herring tactics (giving false leads or ideas)

4. Sabotage.

5. Manipulation of information

6. Discrediting others – denying credit or robbing credit

7. Forming cliques and coteries

8. Building bad image / label on others

9. Creating quid-pro-quos, or reciprocal behavior.