Leadership

MODULE : III
 What is Leadership

• Leadership is a process by which an executive can direct,

guide and influence the behaviour and work of others towards
accomplishment of specific goals in a given situation.
Leadership is the ability of a manager to induce the
subordinates to work with confidence and zeal.
• Leadership is the potential to influence behaviour of
others. It is also defined as the capacity to influence a group
towards the realization of a goal. Leaders are required to
develop future visions, and to motivate the organizational
members to want to achieve the visions.
• According to Keith Davis, “Leadership is the ability to persuade
others to seek defined objectives enthusiastically. It is the
human factor which binds a group together and motivates it
towards goals.”
 Characteristics of Leadership
1.It is a inter-personal process in which a manager is into
influencing and guiding workers towards attainment of goals.
2.It denotes a few qualities to be present in a person which
includes intelligence, maturity and personality.
3.It is a group process. It involves two or more people interacting
with each other.
4.A leader is involved in shaping and moulding the behaviour of
the group towards accomplishment of organizational goals.
5.Leadership is situation bound. There is no best style of
leadership. It all depends upon tackling with the situations.
 Difference Between Manager and
Leader

• Discussed in next slide

 Basis Manager Leader
A person becomes a manager by virtue of his A person becomes a leader on basis of his
Origin
position. personal qualities.
Manager has got formal rights in an organization
Formal Rights Rights are not available to a leader.
because of his status.
The group of employees whom the leaders leads
Followers The subordinates are the followers of managers.
are his followers.
A manager performs all five functions of Leader influences people to work willingly for
Functions
management. group objectives.
A leader is required to create cordial relation
Necessity A manager is very essential to a concern.
between person working in and for organization.
Stability It is more stable. Leadership is temporary.
Mutual
All managers are leaders. All leaders are not managers.
Relationship
Manager is accountable for self and subordinates
Accountability Leaders have no well defined accountability.
behaviour and performance.
A leader’s concern is group goals and member’s
Concern A manager’s concern is organizational goals.
satisfaction.
People follow manager by virtue of job
Followers People follow them on voluntary basis.
description.
A manager can continue in office till he performs
Role A leader can maintain his position only through
his duties satisfactorily in congruence with
continuation day to day wishes of followers.
organizational goals.
A leader has command over different sanctions
Manager has command over allocation and
Sanctions and related task records. These sanctions are
distribution of sanctions.
essentially of informal nature.
 Types of Leadership:
Autocratic Leadership

Democratic Leadership

Transformational Leadership

Transactional Leadership

Servant Leadership

Laissez-faire Leadership

Charismatic Leadership
 1. Autocratic leadership style:

• The leader makes decisions independently, without

seeking input or feedback from the team.
• Leaders exercise significant control over all aspects of
the team’s work.
• Communication is typically top-down, with little room
for discussion or debate.
• Thisstyle is effective in situations that require quick
decisions or when leading inexperienced teams.
 2. Democratic Leadership:

• The
leader encourages participation from team
members in decision-making processes.
• Input
and feedback from the team are valued, and
consensus is sought before making decisions.
• While the leader maintains the final decision-making
authority, collaboration is key.
• Thisstyle fosters a more inclusive and transparent
environment.
 3. Transformational Leadership:

• Leaders inspire and motivate their teams through a

shared vision, often focusing on long-term goals.
• Emphasis is placed on personal development,
mentorship, and empowerment.
• Leaders work to stimulate creativity and innovation
by encouraging followers to exceed expectations.
• Focusis on transforming both the organization and
its employees, fostering change and growth.
 4. Transactional Leadership:

• Leadership is based on structured systems of

rewards and punishments to motivate employees.
• Emphasizes clear expectations, performance
monitoring, and goal-oriented tasks.
• The leader enforces discipline and ensures that
tasks are completed as expected.
• Focus is on maintaining stability and achieving
specific, short-term objectives.
 5. Servant Leadership:

• The leader focuses on serving the needs of the team,

prioritizing their well-being and development.
• Leaders emphasize empathy, listening, and ethical
behavior.
• The leader often acts as a mentor or coach, helping
team members grow both personally and
professionally.
• Theultimate goal is to build a strong, collaborative,
and community-oriented team.
 6. Laissez-faire Leadership:
• Leaders take a hands-off approach and allow
employees significant autonomy in how they complete
their tasks.
• The leader provides minimal direction or supervision,
trusting the team to make decisions and solve
problems.
• This
style works well when the team is highly skilled,
motivated, and capable of self-management.
• It can be challenging when the team lacks initiative or
requires clear guidance.
 7. Charismatic Leadership:
• Leadersrely on their personal charm, influence, and
enthusiasm to inspire and motivate others.
• Charismaticleaders often build strong emotional
connections with their followers, creating loyalty and
commitment.
• They articulate a compelling vision and use their
charisma to rally people around it.
• While effective in driving enthusiasm, this style can be
heavily reliant on the leader's presence and may not
foster long-term organizational sustainability.
 Theories Of Leadership:

• LMX Theory
• Trait Theory
• Bheavioural Theory – The Ohio State
University.
 LMX Theory:

• Leader-Member Exchange (LMX) Theory

is a relationship-based approach to leadership
that focuses on the dynamic and unique
interactions between leaders and followers.
• Itemphasizes that leaders do not treat all
subordinates the same but develop unique,
dyadic relationships with each team member.
 Key Components of LMX Theory

• Dyadic Relationships: LMX Theory is rooted

in the leader-member dyad (one-on-one
relationship).Each leader develops a unique
relationship with each follower, characterized
by mutual trust, respect, and obligation.
 Key Components of LMX Theory
• In-Group and Out-Group:
• In-Group: Members who share a strong, high-
quality relationship with the leader. They receive
additional support, opportunities, and resources.
The leader relies on them for critical tasks and
decisions.
• Out-Group: Members with a low-quality relationship
with the leader. They interact with the leader within
formal, task-oriented boundaries. These members
receive less support and fewer opportunities for
growth.
 Key Components of LMX Theory
• Phases of Relationship Development:

• LMX relationships develop through three stages:

• Stranger Phase: Initial interactions are formal,
task-based, and transactional.
• Acquaintance Phase: Trust begins to develop as
leaders and members test each other’s reliability
and compatibility.
• Mature Partnership: Relationships deepen,
marked by mutual respect, loyalty, and shared
responsibilities.
 Key Components of LMX Theory

• Role of Trust and Communication:

• Trust, open communication, and mutual
respect are central to high-quality LMX
relationships.
• Leaders
who foster trust encourage team
members to contribute beyond formal duties.
 Implications of LMX Theory
• Performance and Job Satisfaction:
• High-quality LMX relationships often lead to increased job
satisfaction, organizational commitment, and performance.
• Organizational Outcomes:
• Teams with strong LMX relationships show better teamwork, lower
turnover rates, and higher innovation.
• Bias and Fairness:
• LMX Theory acknowledges that unequal treatment can exist, which
may create perceptions of favoritism among team members.
• Leadership Focus:
• Leaders are encouraged to foster high-quality relationships with as
many team members as possible to create inclusivity and reduce
the size of the "out-group."