CHAPTER- SIX

LEADERSHIP

6.1 Definition: Leading is the art or process of influencing people so that they will strive
willingly towards the achievement of group goals.
Leadership is the ability to secure desirable actions from a group of followers voluntarily without
the use of coercion.
The process of directing and inspiring workers to perform the task related activities of the group.

6.2 Leader versus Manager

Much has been written in recent years about the leadership role of managers. Management and
leadership are both important to organizations. Effective managers have to be leaders, too,
because distinctive qualities are associated with management and leadership that provide
different strengths for the organization, as illustrated in Figure 6.1. As shown in the exhibit,
management and leadership reflect two different sets of qualities and skills that frequently
overlap within a single individual. A person might have more of one set of qualities than the
other, but ideally a manager develops a balance of both manager and leader qualities. Aprimary
distinction between management and leadership is that management promotes stability, order,
and problem solving within the existing organizational structure and systems.
Leadership promotes vision, creativity, and change. In other words, a manager takes care of
where you are; a leader takes you to a new place. Leadership means questioning the status quo so
that outdated, unproductive, or socially irresponsible norms can be replaced to meet new
challenges. Leadership cannot replace management; it should be in addition to management.
Good management is needed to help the organization meet current commitments, while
good leadership is needed to move the organization into the future

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Figure 5.1: The most effective managers over the long term are also leaders

Leadership, as one of the four primary activities of the influencing function, is a subset of
management. Managing is much broader in scope than leading and focuses on non-behavioral
as well as behavioral issues. Leading emphasizes mainly behavioral issues. Figure 5.1 makes
the point that although not all managers are leaders, the most effective managers over the long
term are leaders.
Merely possessing management skills are no longer sufficient for success as an executive in the
business world. Modern executives need to understand the difference between managing and
leading and know how to combine the two roles to achieve organizational success. A manager
makes sure that a job gets done, and a leader cares about and focuses on the people who do the
job. To combine management and leadership, therefore, requires demonstrating a calculated and
logical focus on organizational processes (management) along with a genuine concern for
workers as people (leadership).

6.3 THEORIES OF LEADERSHIP

1. The trait theory of leadership: -
Traits are inborn and inherent personal qualities of individuals such as intelligence, appearance,
sociability, self-confidence etc. This theory believes that leaders possess certain specific inborn
traits (characteristics), which are inherited rather than acquired. It holds that leaders are born not
made (not acquired). It focuses in what leaders are rather than what they do.

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 The trait theory studies focused on the personal traits of leaders and attempted to identify a set of
individual characteristics that distinguished leaders from followers and also successful leaders
from unsuccessful ones.
In general the trait theory beliefs that effective leadership is dependent on the inborn personal
traits of individuals not dependent on behaviors which can be learned (acquired).

Drawbacks of this theory:

1. All traits are not identical with the important characteristics of a leader.
2. Some traits may be inherited and others can be acquired by training.
3. In identifying a successful leader, the theory does not distinguish the most important
traits of successful leader.
4. The traits required to attain leadership may not be the same that are acquired to sustain
leadership.
5. Traits exhibited by leaders are also found among followers, explaining as to why
followers could not become leaders.
Generally it hasn’t been a fruitful approach to explain leadership.

2. The behavioral theory of leadership: -

The behavioral theory of leadership-focused on what leader does rather than their traits. Studies
showed that one set of traits/leadership style might not be equally appropriate in all situations.
Followers of this theory believe that if individuals are trained in appropriate leadership behavior
they can lead more effectively,because the behavior (which can be learned) is more important
than trait (which is inborn). However it doesn’t mean that personal traits have influence on
leadership. So effective of leadership is a function of both inborn personal traits and acquired
behaviors. The effectiveness of leaders is mainly measured by the outcomes of individual
subordinates who are under the supervision of that person.

3. The Situation leadership theory: According to this approach no one trait was common to
effective leaders. No one style was effective in all situations. So there are different factors in
each situation that influence the effectiveness of a particular leadership style.
Leadership is not totally dependent on personal traits and behaviors, but also dependent on
situations. To lead effectively different traits or behaviors are required in different situations.
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6.4 LEADERSHIP STYLES
Managers in an organization shall relatively be consistent in the way they try to influence others
behavior.
The manager who dominates subordinates in one situation is not likely to use a high degree of
consideration and participation in another. This behavioral pattern of leaders is known as
leadership style.

It can be defined as the various patterns of behavior favored by leaders during the process of
directing and influencing workers; which is determined by leader’s personality, experience,
value system, nature of followers and environment.
There are three important leadership styles
a) Autocratic(I- Approach)
b) Democratic /Participative /We-Approach
c) Laissez-faire /free rein/They-Approach
a) Autocratic Leadership style
This leadership style is closely associated with the classical approach to management and it is
characterized by the following behavioral patterns of leaders.
 The leader doesn’t seek any opinions from subordinates, holds conflicts and with less
creativity.
 Exercises rigid control and close supervision, relies on punishments.
 Subordinates typically react by doing only what’s expected and by suppressing their
frustration.
 They structure the entire work situation in their own way and expect the workers to
follow their orders and do not tolerate deviation from their order.
 The autocratic lead is task-oriented, gives little value on showing consideration to
subordinates.
 Depends on one way communication downward only.
 They assume full responsibility for all actions.

Advantage
1. It is useful when subordinate is new and has no experience.
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 2. In the crisis or emergency situation it can increase efficiency and get quicker result.
3. It is useful when subordinates are not interested in seeking responsibility or feel insecure
at the job.
Disadvantage:
1. One-way communication without feedback leads to misunderstanding and communication
breakdown.
2. It fails to develop workers commitment to the accomplishment of objectives.
3. It is unsuitable when the workers are knowledgeable about their job.

b. Democratic /participate/ leadership style

This leadership style is characterized by the following behavioral patterns of the leader.
 Allows the group members to participate in decision making process, proposed actions
and encourages participation at all levels.
 The leader will develop two-way communications and promote team spirit.
 The democratic leader explains to the group members like reasons for personal decisions
when necessary and objectively communicates criticism and praise to subordinates.
Advantage
1. Active participation of workers and assures rising of productivity and satisfaction.
2. Workers develop greater sense of self-stem due to the importance given to their ideas.
3. Worker become more committed to change
4. It Results in higher employees moral
Disadvantage
1. The democratic leadership requires some favorable conditions. Workers must be literate,
informed and organized.
2. The assumption that all workers are genuinely interested in the organization and their
goals are successfully fused with the organization’s goals may not always be valid.
3. Some group members may feel alienated if their ideas are not accepted for action.
4. It is very time consuming and to many view points and ideas may make the solid
decision.
5. Some managers may be uncomfortable with the approach.

C. Laissez-fair/free rein/leadership style

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In this type of leadership style, the leader is just a figurehead and does not give any direction.
He acts principally as a liaison/contact between the group and the outside environment and
supplies necessary materials and provides information to group members. Their main role is
aiding /facilitating the operations of followers.

He let the subordinates plan and organizes and developstheir own techniques. For accomplishing
goals within the organizational policies and objectives the leader participate very little and
instead of leading and directing he becomes just one of the members.
This type of leadership is essential in research laboratories, where the scientists are fairly free to
conduct their research and make their decisions. These are some the behavioral patterns of
laissez-faire leader.
Advantage
1. It creates an environment of freedom, individually and the team spirit
2. It is highly creative, with a free and informal work environment
3. It is very useful where people are highly motivated and achievement oriented
Disadvantage
1. It may result in disorganized activities, which may lead to inefficiency and chaos
2. Insecurity and frustration may develop due to lack of specific decision making authority
and guidance
3. Some members may put their own interests over the interest of team

6.5 COMMUNICATION
Communication is the tool in which we exercise to influence others, bring about changes in the
attitudes and views of our associates, motivate them, establish and maintain relations with them
without communication there would be not interaction between persons. Literally
communication means sharing of ideas in common.
Definition: Communication is the transfer of information from one person/sender/to another
person /receiver/to achieve goals. It is process consisting of a sender transmitting a message
through media to a receiver who respond.

Importance of Effective Communication

Effective communication is important to managers for three primary reasons:
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  Communication provides a common thread for the management processes of planning,
organizing, leading and controlling.
 Effective Communications skills can enable managers to draw on the vast array of talents
available in the multicultural world of organizations.
 Managers spend a great deal of time by communicating face-to- face, electronic or
telephone communication with employees, supervisors, suppliers or customers.
The Communication process
Communication takes place in the relationship between a sender and a receiver.
A model of the communication process:

Transmit Message
Receive Message

Noise
Receiver Transmit
Feed back

A) Sender: An individual who transmits the message or signal to another person.

The sender /source of message initiate the communication. In an organization the sender
will be a person with information, needs or desires and a purpose for communicating
them to one or more other people.
B) Receiver: is the person to whom the message is sent.
The person who senses the sender’s message. There may be a large number of receivers, as
when a memo is addressed to all members of an organization or there may be a large number
of receivers as when a memo is addressed to all members of an organization or there may be
just one, as when one discusses something privately with a colleague.
C) Message: is a content of information. Intended to be transmitted e.g. letter, report, order
etc. The encoded information sent by the sender to the receiver. The encoded information
sent by the sender to the receiver.
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 D) Encoding: It takes place when the sender translates the information to be transmitted in
to a series of symbols.
E) Decoding: The process by which, the receiver interprets the message and translates it
into meaningful information. It’s a two-step process.
F) Channel: is the vehicle used for the transmission of the message. It may be a face-to-
face conversation, telephone conversation, in written form. The medium of communication
between a sender and a receiver.
G) Noise: Any factor that disturbs confuses or interferes with communication. Noise can
arise along what is called the communications channel or method of transmission.
H) Feedback: It’s the response of the receiver to the sender, also passes through the some
process. It is the determination whether the message was clearly understood and the required
action taken.
Types of Communication
1. Based on the media used
a) Verbal Communication
* Written
* Oral
b) None Verbal Communication
* Symbols
* Gestures, etc
2. Based on Organizational Relationships (channels)
i. Formal Communication
It is a communication, which takes place through the formal channel of the organizational
hierarchy; it implies the flow of information along the lines of authority formally established in
the organization. The channels include:
a) Downward Communication Messages from higher authority levels to lower levels.
b) Upward Communication Messages from subordinates to supervisors and to higher levels.
c) Horizontal Communication that flows between persons/departments of equal status in the
organization.
d) Vertical Communication may be downward or upward communication.
Transmission of message is made as per the procedures specifically set up for the purpose in the
organization.But this channel has a problem of:
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 1. Creating bottleneck in the speed of the information
2. Due to several levels in the hierarchy much of the information is lost or distorted.
3. It can be distorted by “protective screening ’’ a subordinate is likely to report the
information which is favorable to him.
ii. Informal Communication
It does not follow lines of authority. It has no procedural basis. It is often associated with the
expression of gesture, smile, node, glance etc. without any formality. It is not official or
authoritative.
Informal Communication is also known as GRAPEVINE distribution of information.
Through the Grapevine dissemination is fast, but it suffers from series of distortion of
original facts. It can be considered as beneficial safety value capable of carrying important
information. It can be also considered as destructive focusing on its capacity to spread
rumors, destroy moral, misinform others.

Barriers of Effective Communication

1. Note barriers: It is an external factor, which interferes with the communication and
blocking a part of the message. (Such as, poor Timing, improper channel, in proper or in
adequate information, physical distortion. Like walk-in-visitors during Telephone call or
face-to-face communication etc.)
2. Language differences
3. Using jargons/technical words related to a specific field/
4. Inconsistent verbal and Nonverbal communication
5. Information Overload
6. Semitic Barriers, which occur due to difference in individual interpretation of words or
symbols
7. Feedback Barriers: the receiver may not return a feed back to the sender
8. Cultural barriers: Different people may define the message according to their culture.
9. Perception: differences in perception of the message between the sender and the
receiver, which creates misunderstanding.
10. Sender Credibility: - the information sent has to have high credibility in the eyes of the
receiver; otherwise it becomes barrier because of distrust.

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For effective Communication the following steps must be taken:
 Feedback and upward communication reduce misunderstanding of communication
 Improvement of listening skills
- Requires full attention\
- The language used tone of voice; expression and emotions should receive proper
attention.
- Ask, clarification
- Don’t prejudge value, the importance of message due to your previous knowledge and
experience
- Don’t jump to conclusion before the message is over
 Developing writing skills.
 Avoiding credibility gaps-openness and an atmosphere of trust builds good relationship
and close the gaps.

6.6 Motivation
 Motivation refers to the forces to a person that arouse desire. Motivating means to
stimulate people through different ways, for example by providing reward. The study of
motivation helps managers to understand what derives people to initiate an action, what
influence their choice of action and what are the persisting action overtime. People have
needs that translate in to an internal tension that motivate the specific behavior to fulfill
the need.
 Reward is a means of motivating other or satisfying the needs of others. To the extent the
behavior is successful (rewarded) the need is satisfied.
 The reward informs the person that the behavior was appropriate and can be used again in
the future. The ultimate objective (motive) of any individuals is a reward. Every behavior
is directed towards a reward. Reward can be intrinsic or extrinsic.
a) Intrinsic reward: - is the satisfaction of a person gets as a result of success.
b) Extrinsic reward: is the reward given by another (outsider) for the success (good
Performance) e.g. Promotion.
The Motivation Process
In motivating others (employees) the activities include:
 Analysis of the situation requiring motivation.
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  Preparing, selecting and applying a set of motivating tools
 Following upon the results of application.

Theories of Motivation
1. Hierarchy of needs theory (Abraham Maslow 1964 )
A humanistic psychologist, teacher and practicing manager-developed a need-based theory of
motivation Maslow’s theory is now considered central to understanding human motivations and
behavior. In 1943, in an article for psychological Review “A theory of human motivation
“Maslow identified and analyzed five basic needs which he believed underlay all human
behavior. These needs relate to:
1. Physiological Needs 4. Esteem Needs
2. Security or safety needs 5. Self-actualization needs
3. Love and social needs

Figure: Abraham Maslow’s hierarchy of human needs

a) Physiological Needs: - Basic needs such as food, water, clothing, shelter, sleep etc. these
are primary needs for sustaining human life itself. Until these needs are satisfied to the
extents necessary to sustain life these needs remain the motivating force.
b) Security or safety needs: - these needs include, being free from physical danger, fear of
losing job, property, food, clothing, or shelter. It is a need of securing primary needs.
c) Love and Social needs: - After the needs of the body and security are satisfied then a
scene of belonging and acceptance becomes prominent in motivating behavior. These
needs are, love, friend ship, social interaction (e.g. Love of Neighbor).
d) Esteem Needs: - this is the need to attain recognition, felling if self-worth and self-
confidence, prestige.
e) Self-actualization needs: this last need is the need to develop fully and realize one’s
capacities and potentials to the fullest extent possible. At his level the person seeks
challenging work assignments, and is creative, independent, etc.
Maslow’s theory is based on the following assumptions:
1. Only unsatisfied need can influence behavior, a satisfied need is not a motivator,

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 2. A person’s are arranged in a priority order of importance
3. A Person will at least minimally satisfy each level of need before feeling the need at the
next level.
4. If need satisfaction is not maintained at any level, the unsatisfied need will become a
priority once again. For example, for a person who is presently feeling social needs,
safety will become a priority once again if he or she is fired.
2. The Douglas McGregor Two alternative views about people
In his 1960 publishing - : "The Human side of Enterprise" McGregor explained that all earlier
managers operated from one or two basic assumptions about human behavior: theory X and
theory Y.
The first theory (theory– X ),the traditional view, viewed workers as being lazy, dislike work or
avoid it at all and so they should be coerced, controlled and directed or threaten with
punishments to put adequate effort in to achievement.

The Second (theory–Y) described people as McGregor thought them to be: responsible, willing
to learn and take proper initiatives, inherently motivated to exercise ingenuity and creativity.
They are self-controlled, motivated and they should be free.McGregor told managers that if they
give employees a chance to contribute and to take control and responsibility, they would do so.

3. The two factor theory (by Herzberg)

This theory suggested that factors that are associated with dissatisfaction are different from those
factors, which create satisfaction. These two factors are:
1. Hygiene factors (dissatisfies)
2. Motivation factors (Motivators/satisfiers)
1. Hygiene factors
These factors avoid dissatisfaction if they exist sufficiently. If they are absent they create
dissatisfaction. This indicated that the existence of hygiene factors don’t bring satisfaction, but
prevent dissatisfaction and maintain statuesque. The absence if these factors leads to
dissatisfaction. They don’t motivate people. They simply prevent dissatisfaction and maintain
statuesque. They produce no growth but prevent loss. The hygiene factors include.Money,
working condition, supervision, company policy and administration, status, interpersonal
relationship, security etc.
2. Motivators (Motivating factors)

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These are factors that bring satisfaction, if they exist. If they are absent there will not be
satisfaction, and also in dissatisfaction .i.e. there absence doesn’t lead to dissatisfaction. These
factors are related to the nature of work itself and are intrinsic to the job itself. These are - Work
itself, possibility of growth, recognition, responsibility, advancement achievement etc.
Hygiene factors (dissatisfies) Motivation factors (satisfiers)
 Exist: - no dissatisfaction - satisfaction motivation
 Absent: - dissatisfaction - no satisfaction (no dissatisfaction)
The roles of managers in this case are:
 Providing hygiene factors to prevent dissatisfaction
 Providing motivation factors to bring satisfaction ( motivation)
4) Vroom’s Expectancy Model:
According to this model, Motivation is strongly determined by an individual’s
perception/expectation that a certain type of behavior will lead to a certain type of outcome and
his personal preference for that type of outcome.

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