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.”

James Mc Gregor burn 1978

Leadership Theories:

The following are the important Leadership theories ;

 Contingency Theory.
 Situational Leadership Theory.
 Transformational Leadership Theory.
 Transactional Theories.
 Behavioral Theory. .
 Great Man Theory of Leadership.
 Trait Theory of Leadership.

Contingency Theory

- Situational Leadership Theory

- Transformational Leadership Theory

- Transactional Theories

- Behavioral Theory

- Great Man Theory of Leadership

- Trait Theory of Leadership

For decades, numerous studies have been focused on leadership, giving rise to several theories.
These theories are various schools of thought put forth by philosophers, researchers, and
cognitive experts to explain what goes into the making of a leader. These theories shed light on
the traits and behaviors that can help individuals cultivate their leadership abilities.

That said, here are some of the major leadership theories that every manager needs to know to
stay on top of their game.
1. Contingency Theory

This theory proposes that no one way or style of leadership may be applicable to all situations. In
other words, it recognizes that there might be variables influencing any particular situation, and a
leader must choose the right course of action, taking into account those variables.

In this regard, leadership researchers White and Hodgson state, "Effective leadership is about
striking the right balance between needs, context, and behavior." The best leaders have not only
the right traits but also the ability to assess the needs of their followers, analyze the situation at
hand, and act accordingly.

2. Situational Leadership Theory

Like the Contingency Theory, the Situational Theory stresses the importance of situational
variables and doesn't consider anyone's leadership style to be better than the others.

Put forward by US professor, Paul Hersey and leadership guru, Ken Blanchard, the situational
theory is a combination of two factors — the leadership style and the maturity levels of the
followers. According to this theory, different situations demand different styles of leadership and
decision-making. Leaders must act by judging the situation they are facing.

3. Transformational Leadership Theory

The Transformational Leadership theory, also known as Relationship theories, focuses on the
relationship between the leaders and followers. This theory talks about the kind of leader who is
inspirational and charismatic, encouraging their followers to transform and become better at a
task.

Transformational leaders typically motivated by their ability to show their followers the
significance of the task and the higher good involved in performing it. These leaders are not only
focused on the team's performance but also give individual team members the required push to
reach his or her potential. These leadership theories will help you to sharp your Skill.

4. Transactional Theories

Transactional Theories, also referred to as Management theories or exchange leadership theories,

revolve around the role of supervision, organization, and teamwork. These leadership theories
consider rewards and punishments as the basis for leadership actions. This is one of the oft-used
theories in business, and the proponents of this leadership style use rewards and punishments to
motivate employees.

Learn new trends, emerging practices, tailoring considerations, and core competencies required
of a Project Management professional with the PMP Certification course.

5. Behavioral Theory

In the Behavioral Theory, the emphasis shifts from the traits or qualities of leaders to their
behaviors and actions. In sharp contrast to the Great Man Theory and the trait approach to
leadership, this theory considers effective leadership to be the result of many learned or acquired
skills. It proposes that an individual can learn to become a good leader. This is one of the best
leadership theories.

6. Great Man Theory of Leadership

This is one of the earliest leadership theories and is based on the assumption that leadership is an
inborn phenomenon and that leaders are "born" rather than "made." According to this theory, a
person capable of leading has the personality traits of a leader — charm, confidence, intellect,
communication skills, and social aptitude — from birth, which set them apart. This theory
emphasizes leadership as a quality that you either possess or you don't; it isn't something that you
can learn.

While the theory sounds pretty discouraging to those wanting to learn the ropes of leadership,
you might take heart in the fact that most modern theorists dismiss it and even by some leaders
themselves. It's still an interesting take on leadership and one that highlights the qualities of great
leaders, which have more or less remained unchanged over time.

7. Trait Theory of Leadership

This theory walks in the footsteps of the Great Man theory in assuming that leaders are born with
traits that make them more suitable for the role of a leader than others who lack those natural-
born traits. As such, the theory pinpoints certain qualities such as intelligence, accountability,
sense of responsibility, and creativity, among others, that lets an individual excel at leadership.

One major flaw in the trait approach to leadership is that it doesn't offer a conclusive list of
leadership traits. However, the credibility of the theory lies in the fact that the significance of
 personality traits in leadership is well supported by research. Trait Theory of Leadership will
help you to improve your leadership theories.

Behavioral Theories;

The behavioral leadership theory focuses on how leaders behave, and assumes that these traits
can be copied by other leaders. Sometimes called the style theory, it suggests that leaders aren't born
successful, but can be created based on learnable behavior.
Behaviorist theories focus on what leaders basically deliver rather than on their characteristics or
traits.
These theories advocate that leadership is shown by acts rather than traits and that the leadership
is the result of effective role behavior. The behavioral theorists concentrated on the unique
behavioral aspects found in leaders that enabled them to attain effective leadership.
Behavioral theories of leadership are based upon the belief that great leaders are made not born.
According to this theory, people can learn to become leaders through teaching and observation.
Leadership styles based on authority can be 4 types:

 Autocratic Leadership,
 Democratic or Participative Leadership,
 Free-Rein or Laissez-Faire Leadership, and.
 Paternalistic Leadership.

Autocratic Leadership;

Autocratic leadership, also known as authoritarian leadership, is a leadership style

characterized by individual control over all decisions and little input from group members.
Autocratic leaders typically make choices based on their ideas and judgments and rarely accept
advice from followers.
An authoritarian leadership style is exemplified when a leader dictates policies and procedures,
decides what goals are to be achieved, and directs and controls all activities without any meaningful
participation by the subordinates. Such a leader has full control of the team, leaving low autonomy
within the group.
Democratic leadership;
 Democratic leadership is a type of leadership style in which members of the group take
a more participative role in the decision-making process. This style of leadership offers everyone
the opportunity to participate, exchange ideas, have their opinions heard, and encourages
discussions.
Democratic leadership is a very open leadership style that includes group members in the
decision-making process. It is also called shared leadership or participative leadership.
The democratic leadership style is very effective as it encourages quality contributions
from employees. It produces a cooperative spirit that motivates the team and improves group
morale. This, in turn, induces higher productivity.
Here are some qualities democratic leaders usually display:

 Courage. When it is time to choose a direction, leaders dare to explain why they think it is the
best decision. ...
 Creativity. ...
 Intelligence. ...
 Fairness. ...
 Increased job satisfaction and commitment. ...
 Increased innovation. ...
 Multiple opinions. ...
 Less absenteeism.
characteristics of democratic leadership are:
Encouraging group members to share their ideas: The leader asks and expects subordinates to
give their input regarding the job.

Making group members feel engaged: The leader involves members and encourages them to also
involve others.

Encouraging group members to share their ideas: The leader asks and expects subordinates to
give their input regarding the job.

Making group members feel engaged: The leader involves members and encourages them to also
involve others.

Democratic leaders traits;

 Courage  Intelligence
 Creativity  Fairness
Laissez –faire;
Laissez-faire leaders have an attitude of trust and reliance on their employees. They
don't micromanage or get too involved, they don't give too much instruction or guidance. ... They
give guidance and take responsibility where needed, but this leadership style means that subordinates
and team members have the real lead.

In this style, the leader allows the employees to make the decisions. However, the leader
is still, responsible for the decisions that are made. This is used when employees are able to analyze
the situation and determine what needs to be done and how to do it. You cannot do everything you
must set priorities and delegate certain tasks.
Characteristics of laissez-faire leadership:
 Very little guidance from leaders
 Complete freedom for followers to make decisions
 Group members are expected to solve problems on their own.
 Modern Theories :

In influencing the people in the organization towards the goals of the organization, there
have been various approaches adopted by different set of leaders, as one model may not be
suitable for different organizations with different set of objectives. Moreover, such models or
theories of leadership also depend on the qualities that a leader inherit or display in managing
her/his team. Some of the theories of leadership ranging from conventional theories to
contemporary theories have been dealt with over here, the chief of them being the following:
 Great Man Theory/Trait Theory
 Behavioural Theories
 Contingency/Situational Theories
 Transactional Theory of Leadership
 Transformational Theory of Leadership

Leadership has always been a topic of interest in the business world—the age old debate
is centered on whether leaders are born or made. For years, theorists have argued about what it is
that makes someone a great leader. History is full of examples of people who’ve left their mark
with exclusive leadership qualities. We view individuals like Martin Luther King, Subhash
Chandra Bose and Bhimrao Ramji Ambedkar as being extraordinary because of their feats.
Great Man Theory/Trait Theory:
In a nutshell, the Great Man Theory of leadership suggests that some people are born to
lead. Great leaders can't be made because leadership qualities are innate. Characteristics like
charisma, intelligence, political skills and wisdom are some of the natural qualities of a
successful leader.
Several individuals became great leaders without any formal training or practice. The Great Man
Theory proposes that people are born with innate qualities that make them successful leaders.
What is the Great Man Theory? Read on to understand this theory in detail.
WHAT IS GREAT MAN THEORY?
One of the earliest leadership theories, the Great Man Theory came to light in the 19th century. It
was attributed to a historian named Thomas Carlyle, who developed it to a great extent. He
believed that ‘the history of the world is the biography of great men’. Effective leaders are
‘heroes’ with intellectual superiority, courage and significant influence on the masses. These
individuals were often dubbed as being society’s role models.
In a nutshell, the Great Man Theory of leadership suggests that some people are born to lead.
Great leaders can’t be made because leadership qualities are innate. Characteristics like
charisma, intelligence, political skills and wisdom are some of the natural qualities of a
successful leader.
Therefore, the theory centers on two main assumptions:
EVERY GREAT LEADER IS BORN WITH TRAITS THAT PREPARE THEM TO RISE
AND LEAD
Inborn leadership qualities are enough for individuals to exercise influence over others.
Everyone can’t aspire to become a leader and achieve greatness. For example, Mahatma Gandhi
successfully led people through non-violent resistance because of his influence and tactful
approach.
PEOPLE BECOME GREAT LEADERS WHEN THERE’S A NEED
Individuals become leaders when they respond to critical situations. The Great Man Theory
examples include the torchbearers of the Indian Independence Movement. From Lala Lajpat Rai
to Annie Besant, various leaders championed the nation’s cause.
Managerial Grid Theory:
The Managerial Grid Model emerged during a prominent time in leadership studies. Developed
in the 1960s, it was proposed by Robert R. Blake and Jane S. Mouton, two management
theoreticians. The model was a product of their research findings at Exxon (a large multinational
oil and gas company), where they worked to improve leader effectiveness. They found out that a
leader’s behavior is influenced by:
The need to adopt different leadership approaches in accordance with situations
Their psychological makeup
Blake and Mouton went ahead to establish a ‘Managerial Grid’ in their book, The Managerial
Grid: The Key to Leadership Excellence (1964). The grid depicts two behavioral dimensions of
leadership:
CONCERN FOR PEOPLE (VERTICAL AXIS)
The degree to which a manager or a leader considers the needs of team members, their interests
and personal areas of development when deciding how best to complete a task.
CONCERN FOR PRODUCTION/RESULTS (HORIZONTAL AXIS)
The degree to which a manager or a leader prioritizes organizational efficiency, long-term
objectives and high levels of productivity when deciding how best to complete a task.
In a nutshell, the Managerial Grid Theory of Leadership is a framework that helps you determine
what leadership style you should pick. It solves a common dilemma faced by many managers,
‘should I focus on tasks or on people?’. If you have a project to manage, the grid helps you pick
between task-oriented and/or people-oriented approaches.

MANAGERIAL GRID LEADERSHIP STYLES

The Blake-Bouton Managerial Model identified five leadership styles from various combinations
of the two dimensions of leadership behavior.
IMPOVERISHED LEADERSHIP
Leaders with this approach have minimal concern for people and production, putting in very
little effort to get work done. Blake and Mouton stated that this leadership style was the least
effective of all. Low employee satisfaction and business growth make it impossible for such
leaders to flourish.
TASK LEADERSHIP
Leaders with high concern for production but low concern for people are task leaders. Their
primary focus is on performance, which is why they plan and control the production
environment. In order to successfully achieve business objectives, everyone’s required to
perform tasks as per rules, deadlines and procedures. However, paying less attention to
employees can lead to an unhappy work environment, further leading to low retention rates.
COUNTRY CLUB LEADERSHIP
Opposite of Task Leadership, the Country Club Style is characterized by a low concern for
production and high concern for people. Such leaders intend to create a cordial and comfortable
working environment that increases job satisfaction. People get motivated to work harder
because their well-being is prioritized. However, paying less attention to business goals can lead
to unsatisfactory outcomes.
MIDDLE OF THE ROAD LEADERSHIP
As the title suggests, this leadership style places equal importance on organizational goals and
personal needs. Leaders focus on performance by balancing work requirements and employee
morale. However, neither production nor people’s needs are fully met.
TEAM LEADERSHIP
This leadership style is characterized by a high concern for both people and production and is
regarded as the most effective leadership style. It creates a highly encouraging workplace
culture, where people are motivated, productive and cooperative. They want to champion
business goals that are created by the leader.
USING THE MANAGERIAL GRID
You can analyze your leadership style by using the Managerial Grid Theory. You can break
down the process into these few simple steps.
IDENTIFY YOUR MANAGERIAL STYLE
Evaluate how you’ve acted in a recent situation in terms of tasks and team collaboration. Position
yourself on the Managerial Grid accordingly.
IDENTIFY AREAS FOR DEVELOPMENT
Identify from the five leadership styles and see what you associate most with. Does the style suit
your needs and context?
SITUATION-BASED CONTEXTUALIZATION
Some situations will require a task-oriented mindset and others will require a people-oriented
mindset. Either way, the Managerial Grid will enhance flexibility.
Learn how to improve self-awareness and personal development with Harappa
Education’s Leading Self course. The Performance Equation framework will teach you how to
recognize your true potential and overcome limiting beliefs. Additionally, the Ladder of
Learning framework will help you assess your competence and skills. Learn how to take
ownership and shine as an effective leader.
 Leadership Styles:

Knowing your leadership style is critical because it can help you determine how you affect those
whom are under your direct influence. How do your direct reports see you? Do they feel you’re
an effective leader?

It’s always important to ask for feedback to understand how you’re doing, but knowing your
leadership style prior to asking for feedback can be a helpful starting point. That way, when you
receive junior employees’ thoughts, you can automatically decide which new leadership style
would be best and adopt the style’s characteristics in your day-to-day management duties.

Knowing your leadership style may also remove the need for getting feedback. Each leadership
style has its pitfalls, allowing you to proactively remediate areas of improvement. This is critical
because some employees might hesitate to speak up, even in an anonymous survey.

Ready to find out which leadership style you might currently have? Check out the eight most
common ones below.

1. Democratic Leadership

2. Autocratic Leadership

3. Laissez-Faire Leadership
4. Strategic Leadership

5. Transformational Leadership

6. Transactional Leadership

7. Coach-Style Leadership

8. Bureaucratic Leadership

1. Democratic Leadership (Commonly Effective)

Democratic leadership is exactly what it sounds like — the leader makes decisions based on the
input of each team member. Although he or she makes the final call, each employee has an equal
say on a project's direction.

Democratic leadership is one of the most effective leadership styles because it allows lower-level
employees to exercise authority they'll need to use wisely in future positions they might hold. It
also resembles how decisions can be made in company board meetings.

For example, in a company board meeting, a democratic leader might give the team a few
decision-related options. They could then open a discussion about each option. After a
discussion, this leader might take the board's thoughts and feedback into consideration, or they
might open this decision up to a vote.

2. Autocratic Leadership (Rarely Effective)

Autocratic leadership is the inverse of democratic leadership. In this leadership style, the leader
makes decisions without taking input from anyone who reports to them. Employees are neither
considered nor consulted prior to a change in direction, and are expected to adhere to the
decision at a time and pace stipulated by the leader.

An example of this could be when a manager changes the hours of work shifts for multiple
employees without consulting anyone — especially the affected employees.

Frankly, this leadership style stinks. Most organizations today can't sustain such a hegemonic
culture without losing employees. It's best to keep leadership more open to the intellect and
perspective of the rest of the team.

3. Laissez-Faire Leadership (Sometimes Effective)

If you remember your high-school French, you'll accurately assume that laissez-faire leadership
is the least intrusive form of leadership. The French term "laissez-faire" literally translates to "let
them do," and leaders who embrace it afford nearly all authority to their employees.
In a young startup, for example, you might see a laissez-faire company founder who makes no
major office policies around work hours or deadlines. They might put full trust into their
employees while they focus on the overall workings of running the company.

Although laissez-faire leadership can empower employees by trusting them to work however
they'd like, it can limit their development and overlook critical company growth opportunities.
Therefore, it's important that this leadership style is kept in check.

4. Strategic Leadership(Commonly Effective)

Strategic leaders sit at the intersection between a company's main operations and its growth
opportunities. He or she accepts the burden of executive interests while ensuring that current
working conditions remain stable for everyone else.

This is a desirable leadership style in many companies because strategic thinking supports
multiple types of employees at once. However, leaders who operate this way can set a dangerous
precedent with respect to how many people they can support at once, and what the best direction
for the company really is if everyone is getting their way at all times.

5. Transformational Leadership(Sometimes Effective)

Transformational leadership is always "transforming" and improving upon the company's

conventions. Employees might have a basic set of tasks and goals that they complete every week
or month, but the leader is constantly pushing them outside of their comfort zone.

When starting a job with this type of leader, all employees might get a list of goals to reach, as
well as deadlines for reaching them. While the goals might seem simple at first, this manager
might pick up the pace of deadlines or give you more and more challenging goals as you grow
with the company.

This is a highly encouraged form of leadership among growth-minded companies because it

motivates employees to see what they're capable of. But transformational leaders can risk losing
sight of everyone's individual learning curves if direct reports don't receive the right coaching to
guide them through new responsibilities.
6. Transactional Leadership(Sometimes Effective)

Transactional leaders are fairly common today. These managers reward their employees for
precisely the work they do. A marketing team that receives a scheduled bonus for helping
generate a certain number of leads by the end of the quarter is a common example of
transactional leadership.

When starting a job with a transactional boss, you might receive an incentive plan that motivates
you to quickly master your regular job duties. For example, if you work in marketing, you might
receive a bonus for sending 10 marketing emails. On the other hand, a transformational leader
might only offer you a bonus if your work results in a large number of newsletter subscriptions.

Transactional leadership helps establish roles and responsibilities for each employee, but it can
also encourage bare-minimum work if employees know how much their effort is worth all the
time. This leadership style can use incentive programs to motivate employees, but they should be
consistent with the company's goals and used in addition to unscheduled gestures of
appreciation.
7. Coach-Style Leadership (Commonly Effective)

Similarly to a sports team's coach, this leader focuses on identifying and nurturing the individual
strengths of each member on his or her team. They also focus on strategies that will enable their
team to work better together. This style offers strong similarities to strategic and democratic
leadership, but puts more emphasis on the growth and success of individual employees.

Rather than forcing all employees to focus on similar skills and goals, this leader might build a
team where each employee has an area of expertise or skillset in something different. In the long
run, this leader focuses on creating strong teams that can communicate well and embrace each
other's unique skillsets in order to get work done.

A manager with this leadership style might help employees improve on their strengths by giving
them new tasks to try, offering them guidance, or meeting to discuss constructive feedback. They
might also encourage one or more team members to expand on their strengths by learning new
skills from other teammates.

8. Bureaucratic Leadership (Rarely Effective)

Bureaucratic leaders go by the books. This style of leadership might listen and consider the input
of employees — unlike autocratic leadership — but the leader tends to reject an employee's input
if it conflicts with company policy or past practices.

You may run into a bureaucratic leader at a larger, older, or traditional company. At these
companies, when a colleague or employee proposes a strong strategy that seems new or non-
traditional, bureaucratic leaders may reject it. Their resistance might be because the company has
already been successful with current processes and trying something new could waste time or
resources if it doesn't work.
New directions for leadership:

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.
Leader Vs Manager
A leader is someone whom people follow or someone who guides or directs others. A manager
is someone who is responsible for directing and controlling the work and staff in an
organization, or of a department within it.
The main difference between the two is that a leader works by example, while a manager
dictates expectations. If a manager goes against the rules, that will tarnish his position as a
manager. If a leader goes against the example he or she is trying to set, that will be seen as a
setback. Following are a few subtle differences between the two −
 A leader is an innovator and creator whereas a manager is a commander.
 A leader can’t be a manager but the opposite is possible, a manager is more than a leader.
 A leader does what is right, while the manager makes things right.
 A leader deals with change whereas a manager plans for a change.
 A leader gives direction to do something whereas the manager plans for everything that
is to be done.
 A leader encourages people whereas the manager controls people.
 A leader handles communication, credibility, and empowerment whereas a manager
deals with organizing and staffing.