UNIT IV LEADERSHIP

DEFINITION AND MEANING;

Meaning and introduction:

Leadership can be defined as the ability of the management to make sound decisions
and inspire others to perform well. It is the process of directing the behavior of others towards
achieving a common goal. In short, leadership is getting things done through others.

Leadership styles are classifications of how a person behaves while leading a group.
Lewyn's leadership styles are authoritarian (autocratic), participative (democratic), and
delegative (laissez-faire).

Leadership in business is the capacity of a company's management to set and achieve

challenging goals, take fast and decisive action when needed, outperform the competition, and
inspire others to perform at the highest level they can.

DEFINITION;

Leadership is defined as the art of moving others to want to struggle for shared
aspirations. Therefore, a leader is an individual who possesses the ability to encourage, motivate
and/or influence others.

“Leadership is the inspiration and mobilization of others to undertake collective action in

pursuit of the common good”

Crosby & Bryson,2005

“Leaders’ influence will turn on their own qualities of character, expertise, prestige,
intelligence, charm and credibility, but these will have little impact unless they engage the
relevant needs and motivations of the persons being influenced.”
Importance of Leadership
Leadership is very important in a firm as it leads to higher performance by the team
members, it improves motivation and morale within the members, and helps to respond to
change.

Leadership facilitates organizational success by creating responsibility and accountability

among the members of the organization. In short, it increases value in an organization.

Qualities of a Leader:

1. Vision and foresight- A leader cannot maintain influence unless he exhibits that he is
forward looking. He has to visualize situations and thereby has to frame logical
programmes.
2. Intelligence- A leader should be intelligent enough to examine problems and difficult
situations. He should be analytical who weighs pros and cons and then summarizes the
situation. Therefore, a positive bent of mind and mature outlook is very important.
3. Communicative skills- A leader must be able to communicate the policies and
procedures clearly, precisely and effectively. This can be helpful in persuasion and
stimulation.
4. Objective- A leader has to be having a fair outlook which is free from bias and which
does not reflects his willingness towards a particular individual. He should develop his
own opinion and should base his judgement on facts and logic.
5. Knowledge of work- A leader should be very precisely knowing the nature of work of
his subordinates because it is then he can win the trust and confidence of his
subordinates.
6. Sense of responsibility- Responsibility and accountability towards an individual’s work
is very important to bring a sense of influence. A leader must have a sense of
responsibility towards organizational goals because only then he can get maximum of
capabilities exploited in a real sense. For this, he has to motivate himself and arouse and
urge to give best of his abilities. Only then he can motivate the subordinates to the best.
7. Self-confidence and will-power- Confidence in himself is important to earn the
confidence of the subordinates. He should be trustworthy and should handle the situations
with full will power.
Leadership Styles:

1. Autocratic leadership style:

In this style of leadership, a leader has complete command and hold over their
employees/team. The team cannot put forward their views even if they are best for the
team’s or organizational interests. They cannot criticize or question the leader’s way of
getting things done. The leader himself/herself gets the things done. The advantage of
this style is that it leads to speedy decision-making and greater productivity under
leader’s supervision. Drawbacks of this leadership style are that it leads to greater
employee absenteeism and turnover. This leadership style works only when the leader is
the best in performing or when the job is monotonous, unskilled and routine in nature or
where the project is short-term and risky.
 2. The Laissez Faire Leadership Style:

Here, the leader totally trusts their employees/team to perform the job
themselves. He just concentrates on the intellectual/rational aspect of his work and does
not focus on the management aspect of his work. The team/employees are welcomed to
share their views and provide suggestions which are best for organizational interests. This
leadership style works only when the employees are skilled, loyal, experienced and
intellectual.

2. Democrative/Participative leadership style:

The leaders invite and encourage the team members to play an important role in
decision-making process, though the ultimate decision-making power rests with the
leader. The leader guides the employees on what to perform and how to perform, while
the employees communicate to the leader their experience and the suggestions if any. The
advantages of this leadership style are that it leads to satisfied, motivated and more
skilled employees. It leads to an optimistic work environment and also encourages
creativity. This leadership style has the only drawback that it is time-consuming.

3. Bureaucratic leadership:

Here the leaders strictly adhere to the organizational rules and policies. Also,
they make sure that the employees/team also strictly follows the rules and procedures.
Promotions take place on the basis of employees’ ability to adhere to organizational rules.
This leadership style gradually develops over time. This leadership style is more suitable
when safe work conditions and quality are required. But this leadership style discourages
creativity and does not make employees self-contented.

Leadership Theories:

I. Behavioural theory:

In the 1940s as also undertaken on the behaviors demonstrated by leaders. The

earliest and most important research on leadership was conducted in 1939 by
psychologist Kurt Lewin and his team, who recognized distinct types of leadership,
namely authoritarian, democratic, and laissez-faire leadership
1. Ohio State University:

In 1945 AD, a group of researchers at Ohio State University conducted a series of

studies to find out the behaviors of leaders that make them effective. The goal was to identify
the independent dimensions of leaders’ behavior and to determine the effect of these dimensions
on work performance and satisfaction. They identified two types of leadership behaviors i.e.
initiating structure and consideration.

a. Initiating Structure:

Initiating structure defines a strong organizational structure i.e. a hierarchy of leader-

subordinate. It would not be wrong to call initiating structure leaders, task-oriented leaders.
Leaders with high initiating structures tend to follow the scalar chain strictly. They focus more
on job output instead of maintaining good human relations in the group.

b. Consideration:

Leaders with consideration behavior show concern for subordinates and attempt to maintain a
friendly and supportive working environment. These leaders are more democratic and focus on
building a good work culture in the team and then expect the work from their subordinates.
2. Michigan University

The Michigan Leadership Studies is a behavioral theory of leadership that was studied at
the University of Michigan in the 1950s. The study was led by the American Social
Psychologist, Rensis Likert, who conducted a series of research programs with a group of
researchers to find out the leader’s behavior. The main objective of the study was to find out the
principles and types of leadership styles that lead to greater productivity and enhanced job
satisfaction among workers. They described leadership behaviors in two dimensions – employee-
oriented and production-oriented.

a. Employee-Oriented

Leaders with an employee-oriented focus on interpersonal relationships and accept the

individual differences in the groups. Such leaders care about the needs of followers or
subordinates to satisfy them the most. Employee-oriented leaders believe the ultimate and best
way to get work done and achieve the desired company’s goal is through commitment and
satisfaction of employees. They consider the employee’s strengths and weaknesses and expect
the related tasks to do by them.

b. Production-Oriented

Production-oriented leaders emphasize the technical and task aspects of the job.
Such leaders care about output rather than employee satisfaction. Such production-oriented
leaders view employees as the means to get the job done, they do not concern about the feelings
and motivation of employees. As such, such leaders fail to increase employee job satisfaction in
the organization

3. Managerial Grid:

The managerial grid model is a self-assessment tool by which individuals and organizations
can help identify a manager's or leader's style. The grid was originally developed by Robert R.
Blake and Jane S. Mouton in the 1960s . (sometimes called leadership grid).

The grid depicted two dimensions of leader behavior, concern for people (accommodating
people’s needs and giving them priority) on y-axis and concern for production
The five resulting leadership styles are as follows:

1. Impoverished Management (1, 1): Managers with this approach are low on both the
dimensions and exercise minimum effort to get the work done from subordinates.The
leader has low concern for employee satisfaction and work deadlines and as a result
disharmony and disorganization prevail within the organization. The leaders are termed
ineffective wherein their action is merely aimed at preserving job and seniority.
2. Task management (9, 1):

The employees’ needs are not taken care of and they are simply a means to an end.
The leader believes that efficiency can result only through proper organization of work
systems and through elimination of people wherever possible.Such a style can definitely
increase the output of organization in short run but due to the strict policies and
procedures, high labour turnover is inevitable.

3. Middle-of-the-Road (5, 5):

This is basically a compromising style wherein the leader tries to maintain a

balance between goals of company and the needs of people.The leader does not push the
boundaries of achievement resulting in average performance for organization. Here
neither employee nor production needs are fully met.
 4. Country Club (1, 9): This is a collegial style characterized by low task and high people
orientation where the leader gives thoughtful attention to the needs of people thus
providing them with a friendly and comfortable environment.The leader feels that such a
treatment with employees will lead to self-motivation and will find people working hard
on their own. However, a low focus on tasks can hamper production and lead to
questionable results.
5. Team Management (9, 9): Characterized by high people and task focus, the style is
based on the theory Y of McGregor and has been termed as most effective style
according to Blake and Mouton.The leader feels that empowerment, commitment, trust,
and respect are the key elements in creating a team atmosphere which will automatically
result in high employee satisfaction and production

Modern Theories of Leadership:

1. Transformational Leadership:

Transformational leadership is a management philosophy that encourages and inspires

employees to innovate and develop new ways to grow and improve the path to a company's
future success

2. Transactional Leadership

It is also known as managerial leadership, is a leadership style where leaders rely on

rewards and punishments to achieve optimal job performance from their subordinates. The
transactional executive leadership model is based on an exchange or transaction.

3. Adaptive Leadership

The adaptive leadership model recognizes that organizations must adjust and adapt to
stay relevant in a complex and ever-changing marketplace. Adaptive leaders take the most
useful knowledge, skills and values from past situations, and use them to benefit future
ones. s a practical leadership framework that helps individuals and organizations adapt and
thrive in challenging environments. It is being able, both individually and collectively, to take on
the gradual but meaningful process of change. It is about diagnosing the essential from the
expendable and bringing about a real challenge to the status quo.

4. Servant Leadership:

Servant leadership is a leadership style and philosophy whereby an individual interacts

with others—either in a management or fellow employee capacity—to achieve authority rather
than power. The term “servant leader” was first coined by Robert K. Greenleaf in 1970 in
the essay “The Servant as Leader.” Basically, the servant leadership style was based on
the idea that leaders prioritize serving the greater good. Leaders with this style serve their
team and organization first. They don’t prioritize their own objectives .

5. Agile Leadership:

It is a form of management that values adaptability and Flexibility. Agile leadership

is based on the belief that individuals and teams are self-organizing and capable of making good
decisions when given autonomy and trust. Agile leaders empower their teams by providing a
clear vision and goals, encouraging collaboration, and removing obstacles.

6. Authentic leadership

This theory suggests that leaders who are true to themselves, their values, and their
beliefs can inspire and motivate their followers to achieve their full potential.

7. Emotional Intelligence Theory

Leader has to understand his emotions with other emotions. It is difficulty managing
and expressing emotions. You might struggle with acknowledging colleagues' concerns
appropriately or wrestle with active listening.

8. Power and Influence Theory

A) Power: It is using One authority to influence others.

1. Positional Power-A positional leader will lead from their position of power, not out of
influence stemming from their character and leadership qualities.
2. Reward power-Effective leadership can come in many forms. Reward power is an example
of a positive means to assist an employee or team to want to be better. As an employee, you
may have experienced earning a bonus, or winning a prize such as a gift card, for being a high
performer and meeting certain goals.

3. Coercive -a manager that intentionally intimidates employees, or uses threats of being fired
to try to get an employee to perform better or do things the manager’s way. Power in terms of
manipulative behaviors is called coercive power.

-Legitimate

Legitimate power builds the feeling of responsibility towards the management and team
members

B.Influence:

It is about changing how a person develops, behaves, or thinks. Influence can lead to respect.

New directions in Leadership:

 Initiating Action: Leadership starts from the very beginning, even before the work actually
starts. A leader is a person who communicates the policies and plans to the subordinates to
start the work.

 Providing Motivation: A leader motivates the employees by giving them financial and non-
financial incentives and gets the work done efficiently. Motivation is the driving force in an
individual’s life.

 Providing guidance: A leader not only supervises the employees but also guides them in their
work. He instructs the subordinates on how to perform their work effectively so that their
efforts don’t get wasted.

 Creating confidence: A leader acknowledges the efforts of the employees, explains to them
their role clearly and guides them to achieve their goals. He also resolves the complaints and
problems of the employees, thereby building confidence in them regarding the organization.

 Building work environment: A good leader should maintain personal contacts with the
employees and should hear their problems and solve them. He always listens to the point of
view of the employees and in case of disagreement persuades them to agree with him by
giving suitable clarifications. In case of conflicts, he handles them carefully and does not
 allow it to adversely affect the entity. A positive and efficient work environment helps in
stable growth of the organization.

 Co-ordination: A leader reconciles the personal interests of the employees with the
organizational goals and achieves co-ordination in the entity.

 Creating Successors: A leader trains his subordinates in such a manner that they can succeed
him in future easily in his absence. He creates more leaders.

 Induces change: A leader persuades, clarifies and inspires employees to accept any change in
the organization without much resistance and discontentment. He makes sure that employees
don’t feel insecure about the changes.