Unit-5

Leading And
Communicating
Concept
Leadership is art of influencing subordiantes to their will, abilities and efforts for achievement of the
organizational goal or objectives. People who direct or command or lead subordinates are called
leaders and those who follow the direction or order or the leadership are called followers. In
organization, in general by hierarchy, managers are leaders of supervisors and supervisors are the
leaders of first line employees. Leader, followers and situation are the major components of leadership.
It's an important function of management.
Koontz and Weihrich: “Leadership is defined as an influence, which is art or process of influencing
people so that they will strive willingly and enthusiastically towards the achievement of group goal.”
Leadership, thus is the process of influencing the behaviors, activities and efforts of individual and of
individual for achieving organizational goal. It is the act of directing the people so that they boost up
their interest and efforts to their job. It is one of the most important management functions without
which no one can imagine for proper utilization of resources of the organization and hence the
organization success. To be a successful leader, a manager must possess qualities of foresight, initiative,
self-drive, confidence, positive attitude and personal integrity. General functions of leadership are
directing, developing, motivating, communicating, maintaining and mediating.
Some general features of leadership are:-
• Leaders and followers.
• Ability to influence
• Common objective
• Regular process.
• Unequal distribution of authority
• Situational activity
• Motivational function
• Communication function
Qualities of Good Leadership
Good leader must have a qualities like personal, psychological, conceptual, technical, behavioral and
managerial qualities. A leader must have clear vision, desire to learn new knowledge and capacity of
human behavior. Further, some qualities are:–
• Physical fitness.
• A clear sense of purpose.
• Good judgement
• Moral integrity
• Self confident
• Technical Competency
• Managerial qualities
• Situational adoptability
• Creativity
Transactional And Transformational Leadership
Transactional leadership style follows a managerial philosophy of reinforcement and exchanges, managing
employees by establishing specific goals and then offering a reward for achieving them. That’s the “transaction”
in transactional leadership. Effective transactional leaders recognize and reward a follower’s accomplishments
in a timely way. Transactional leaders are often found in manufacturing, where line workers
are expected to hit a set production quota per shift. Another area where a transactional
mindset is beneficial is sales, as the team and individual members are driving to hit
specific sales goals. Transactional leadership can also be most effective in situations
where teams are working under strict time constraints to deliver on a project and/or
where financial resources are limited. Transactional leadership often goes hand-in-hand
with maintaining a status quo of actions and processes that have proven successful. It
tends to work best with self-motivated employees who do not seek or need inspiration
from their managers or company executives, making it a leadership approach more often
used at established companies.
Transformational leaders are those who inspire their followers to change the existing interest for excelling their
own interest. It believes in self direction, self-effort and self-motivation to produce higher level productivity,
satisfaction and lower employee turnover. Transformational leader enhances the morale, performance and
motivation of employees, inspires change driven by strong purpose and is able to create culture of trust and
innovation within the organization. Here, leaders encourages , inspires and motivate employees and create
change that helps grow and shape future success of the organization. Transformational leaders encourages the
motivation and positive development of followers, exemplifies moral standards within the organization and
encourages the same of others , fosters an ethical work environment with clear values, priorities and standards,
builds company culture
by encouraging employees to move from an attitude of self interest to a mindset where they are
working for the common goal.
Characterstics of transformational leadership
• Idealise influence
• Inspirational motivation
• Intellectual stimulation
• Individualised consideration
• Control ego
• Self management
• Risk calculation
• Encourage new idea
• Procative
Leadership Styles
The different types of leadership styles are:
1.Autocratic or Task Management Leadership
2.Participative or Democratic Leadership
3.Laissez-faire or Free-rein Leadership and
4.Paternalistic Leadership.

5. Autocratic Leadership Style

Here, authority is centralized into top level. Leaders control the full authority and responsibility for
making plans, policies. Leaders do not consult subordinates for any decisions. Leaders expect total
obedience of the followers without any delay and disagreement. They wish to have control in the
behavior of employees and use negative motivation techniques like punishment, demotion, threatening
etc. Generally, autocratic leadership is applicable in small organization with uneducated and unskilled
subordinates.
Characterstics
• All decisions are made by leaders without consultation of the followers.
• Expectation of obedience from subordinates
• Controls information and communication channel
• Expectation of desired output at fixed time.
• Strict supervision
• Negative motivational technqiues are used
• Perfomance evaluation on the basis of own judgement.
Advantages
• All task are done on strict descipline, which might increase output.
• Prompt decision making, as employees are not involved.
• Clear division of labour.
• Appropriate in blue color jobs.
• Strict chain of command. (employees are not supposed to reject the order0
Disadvantages:-
• Low motivation. As employees are not involved in decision making.
• High employee turnover ratio because of low career advancement.
• One way communications leads to demotivation and low performance.
• Poor sucession planning
• Poor human relations
• High chances of wastes of human resources
• Low employee commitment due to poor cordination.
• Might not be suitable for large and diversified organizations

2. Democratic or participative leadership style

Each and every decision are made with proper consent of followers or subordinates. Here, authority is
delegated to subordinates. Proper discussion, consultation and participation of followers or
subordinates are encouraged to demonstrative initiative and creativity. Here, leaders allow and
encourages subordinates to in formulation of plans, policies and procedures. In this type of leadership,
two way communication and positive motivational tools are used. Democratic leadership style is
suitable when their subordinates are educated, qualified and having decision making knowledge.
Characterstics
• Encourages to actively participate in decision making
• Focuses on two way communication
• Highly encouraged in creativity and initiation
• Employees are valued
• Team encouragement is focused.
• Motivational tools are used.
Advantages
• Effective decision making
• Easy implementation of strategy, plans and policies.
• Acceptance of change management by employees
• Improves career development of employees
• High level of job satisfaction
• Low employee turnover ratio
Disadvantages
• Slow decision making
• Problem of indiscipline
• In actual working scenario, leaders or managers might not follow this style.
• Conflict between different levels of organization
• Focuses on non monetary rewards, which always might not motivate employees
• Less experienced, unskilled and less committed employees might not make the effective decisions.
Difference between Autocratic and Democratic Leadership Style
S.N Autocratic Style Democratic Style
1. Decision making power is centered on top level Decision is made via consultation of subordinates.
2. Ideas and views of subordintes are dominated Ideas and views of subordinates are valued or respected.
3. Strict and negative motivation tools are used. Less strict and positive motivation tools are used.
4. One way communication Two way communication
5. Quick decision making Slow decision making
6. No chance of confict between mangers and emplyees Chances of conflict between employees and managers
7. Secrecy can be maintained Secrecy cannot be maintained
Managerial Ethics
Managerial ethics comprises the moral principles and standards that guide behavior in the world of
business. Now a days, ethical issues in business are frequently raised in different types of news and
medias. Business are criticised for their illegal means to gain competitive advantages. An organizational
ethics are generally derived from Societal ethics, Professional ethics and Individual ethics of manager.
1. Societal ethics
The values and standards embodies in a society’s law , custom, practices, norms and values.
2. Professional ethics
The values and standard that groups of managers and workers use to decide how to behave
appropriately.
3. Individual ethics
Personal values and standards that result from the influence of family, peers and involvement in social
institutions.
Further, managerial ethics are formal standards and rules, based on beliefs about right or wrong that
managers can use to help themselves make appropriate decisions. So, codes of ethics are a step in right
decision. Individual might have different ethical standards and expectations, so unified code of ethics
adopted by organization can be a guidelines for all its members.
Organization must carefully written and matched with the organizations philosophy. Most of ethics
address subjects like employee conduct, community and environment, shareholders, customer, suppliers,
political activities and competitors. For its effectiveness, below activities might be helpful:-
• Involve everyone who has to live with it while formulating the statements.
• Develop the corporate statement and allow every subordinates to participate
• Must be clear, easy to understand.
• Must make it important and realistic
• Commitment from top level to lower level employees.

Significance
Organizations are integral parts of society, all activities are done in society in different way. Sigle unethical
behaviour shall directly or indirectly affect the business. Consumers will lose confidence in products, in
the same way shareholders, employees and other stakeholders loose confidence in such organization. So
organization must be aware of the significance of the ethical standards. Significance of the ethics in
business are:-
• Ethical behavior enhances the reputation and goodwill.
• Violation of ethical standards faces criticisms and hostility, which may result in penalty or boycott of
goods.
• Ethical standards of business helps in effective and efficient use of resources.
• Helps to maintain transparency.
• Helps to strength interest of society (like sustainable development, green economy, green taxonomy).
• Matter of pride for shareholders, employees, customers, suppliers and other stakeholders.

Motivation
Motivation is the process of rousing and sustaining goal-directed behavior. Motivation is one of the
more complex topics in organizational behavior. Leadership is a process of influence on a group.
Leadership is the ability of a manager to induce subordinates to work with confidence. Motivation acts
as catalyst for achieving goal of an organization. Motivation is inner state that stimulates energy and
creativeness to do something better. It is an activity that creates willingness and desire to do work
successfully. It is only that employees of the organization perform their task effectively and efficiently.
Motivation is the psychological process of creating willingness to work and cooperate for the
achievement of organizations goals.
According to S.W Gellerman, "(Motivation is) steering one's actions toward certain goals and
committing a certain part of one's energies to reach them."
In General common aspects of the motivation process:
1.What energizes human behavior?
2.What directs or channels such behavior?
3.How is this behavior maintained or sustained?
Motivation has certain underlying properties:
4.It is an individual phenomenon – Each individual is unique, and this fact must be recognized in
motivation research.
5.Motivation is intentional – When an employee does something, it is because he or she has chosen to
do it.
6.Motivation has many facets – Researchers have analyzed various aspects of motivation, including
how it is aroused, how it is directed, what influences its persistence, and how it is stopped.
7.The purpose of motivation theories is to predict behavior – The distinction must be made between
motivation, behavior and performance. Motivation is what causes behavior; if the behavior is
effective, high performance will result.
Importance of Motivation
• Higher efficiency
• Optimum utilization of resources
• Reduction in turnover
• Better industrail relations
• Easier selection
• Facilitates change

Types of Motivation
• Intrinsic Motivation:– This motivation is related to the job one is doing. When a skilled operative
performs a job well, he/she drives a sense of satisfaction. Example:- Self esteem, self actualization,
• Extrinsic Motivation:- This motivation is external to the job or task. Example:- financial incentives,
and other external motivators like praise, recognition, admiration, working conditions etc
Techniques of Motivation
Organizations want their employees to do their jobs better, more effeciently, and to take on more
challenges. In order to do this, an effective motivation program must be done. Movating employees is
no an exact science. Different methods of motivation may motivate people at different levels.
Someone might get motivated by money but other might not. Organizations and managers must find
out what factor boost up employees motivation. In order to find out different surveys in terms of
motivational factor can be done. In general, motivation program must include following:–
• Positive reinforcement along with higher expectation
• Fair treatment of employees with respect and honesty.
• Address employees need.
• Proper reward and incentive for creativity, learning and innovation.
• Guide employees to set goals
• Restructure jobs
• Must have reward system based on job performance

Further, reward system and participation system is also considerred as technique for employee
motivation.
Reward system to motivate performance
Today’s business world is very complex. Organizations and its employees must be proactive enough to
cope up with dynamic environment. Only way to make organization more competitive is employee
motivation. Motivated employees increases productivity and profitability. Reward system is the formal
or informal mechanism in which performance of employees is defined, evaluated and rewarded.
Reward system is set of rules, procedures and standard for defining, determining and allocation of
benefits and compensation to employees. Reward is defined broadly as “ the material and
psychological payoffs for performing task in the workplace”. Reward system can be classified into two
basic forms.
• Intrinsic and extrinsic rewards.
• Financial and non financial rewards.

Motivation through employee participation

Participatory management is a philosophy in which employees are encouraged for active participation
in different functions of management like planning and decision making, staffing, organizing, leading
etc. Employee participation in management helps to enhance dignity, respect, honor, and job
satisfaction. This is the way to fulfill self esteem and self actualization needs of employees. Which
results in productivity of employees. There are two techniques , Quality of worklife (QWL) and self
managed teams for motivation.
1. Quality of worklife (QWL)
QWL refers to quality of relationship between employees and the total working environment. It aims
integrating the socio physiological needs of people in the organization, process and the existing socio-
cultural environment. Thus, it is concerned with quality of overall working climate in the organization.
This philosophy believes if the quality of work life of employees is good, they become more satisfied
and hardworking. QWL is to be maintained within organization by employees, where rules, guidelines
are set by management.QWL programes create a workplace that enhances employee wellbeing and
satisfaction. QWL programmes have following essential elements:-
• Adequate and fair compensation
• Safe and healthy envoronment
• Opportunities for developing human capabilites
• Opportunity for personal growth
• A social environment that encourages personal identity, group activites and upward mobility
• A work role that doesnot consume employees’ personal leisure time
• A work that provides personal freedom, rights and dignity.
2. Self Managed Work Teams
Self managed teams are autonomous self contained work units. They have the authority to
implemement solutions and thus have responsibility for action. These teams are basically treated as
replacement of managers because they perform all the funtions of management like planning,
organizing, leading and controlling etc. they measures their own performance. They are responsible for
planning and scheduling of work, task assignment to members, taking action to solve problems,
decision making about operation and collective control over performance. In todays era, self managed
teams are treated as one of the best and important instrument to get higher productivity from the
employees. It has significant positive impact on work environment and productivity. Self managed
teams are emerging and productive, cost effective, quality focused, service and quality oreinted. Self
managed teams are formed by ten to fifteen self motivated, desciplined and dedicated employees.
Some of their characters are:-
• Holds authority to determine working procedures, making work routine, handig task.
• Each member becomes more responsible for team performance.
• Each member will be accountable towards team.
• Responsible for completion of task.
• Each members are skillful and has different qualities.
Communication
In general, communication means to inform, to spread information and message to all the concerned
persons. It is process of transmitting message from one party to another needy party. An effective
communication is a process of sending a message in such a way that the messege is received is as close
in meaning as possible to message intended. Communication is essence of management and
organization. Managers spend most of time in communication with superiors, subordinates, peers and
other parties like customers, suppliers, community and other regulators or government authorties. Here,
a person or point where meaningful message is created and transmits to other is called sender and the
person who recieves the message with its actual meannig is called reciever.
According to R.W Griffen, “Communication is the process of transmitting information from one person to
another.”
Finally, communicaiton can be defined as the exchange of ideas, knowledge, information, facts, opinions
between two or more parties, levels of organization via appropriate medium.

Features of Communication
• Involvement of two or more parties.
• Two way process
• Pervasiveness
• Different forms
• Coding and decoding
• Channel based
• Noise

Importance of communication
Communication is indispensable function of management, without which the success of an organization
cannot be imagined. Communication helps in transmitting ideas, plans, policies, strategies, reprots,
commands. Individual and organizational performace can be improved through use of effective
communication. Importance of communication are:
• Basis of decision making
• Helps in cordination
• Effective leadership
• Increases managerial efficiency
• Motivation and control
• Smooth functioning
Communication process
Communication Network/Structure/Form
Types of Communication
In an organization, manager use different types of communication as per nature of organization, size
of organization, capability, skill of employees or reciever. Most common types of communication are:-
1. Formal Communication
1. Downwards Communication
2. Upwards communication
3. Horizontal Communicaiton
4. Daigonal Communication
2. Informal Communication
1. Grapevines
2. Rumors
3. Interpersonal Communication
1. Oral Communication
2. Written Communication
4. Non verbal Communication
Barriers to Effective Communication
Communication can be more effective when reciever can understand the messege with actual meaning
of it as set by sender. Due to various obstacle, it is always not possible. Such obstacle creates problem in
transmission which are called barriers in communication. Some of the barriers in effective
communications are:-
1. Filtering
2. Selective perception
3. Emotions
4. Language
5. Stereotyping
6. Status Difference
7. Use of conflicting signals
8. Reluctance to communicate
9. Projections
10. Other technological barriers