CH 4.2 Leadership
CH 4.2 Leadership
“Leadership is
influencing people
to follow in the
achievement of
common
objectives.”
Leadership Theories
Trait Theory
• Trait theory suggests that an individual who
has traits relevant to leadership emerges as an
effective leader. A trait is a distinguishable
quality of an individual that affects his
behaviour. Researchers have concluded that for
being successful, a leader should have the
following traits (qualities):
• Physical features
• It includes height, weight, appearance, etc. These
include inborn features, positive features,
intelligence, etc.
• Knowledge
• Leader should have intimate knowledge of his
field so that when he discusses it with some
authenticity.
• Self confidence
• In order to develop confidence in his followers,
the leader himself should have confidence.
• Decisiveness
• The leader has to analyse the conflicting situations
rationally & take a stand on which he should remain
firm.
• Integrity
• Integrity refers to honesty & transparency in getting
things done. Leader’s integrity makes him a role
model whose behaviour is followed by others.
• Objectivity
• Objectivity implies that what the leader does should
be based on facts & information & not on his own
biases.
• Initiative
• A leader should have an initiative to take his actions
on proactive basis, that is taking actions in advance of
likely changes in the environment.
• Emotional stability
• A leader should have high level of emotional
stability: stability in behaviour, refraining from anger,
consistency in action & well-adjusted. He should not
be upset & should handle ups & downs with maturity.
• Empathy
• A successful leader has empathy which involves
observing the things or situations from others’ points
of view.
• Communication skills
• Leader gets things done by his followers through
communication. So he should have
communication skills.
• Social skills
• Leader should have social skills so that he can
understand others well in terms of their strengths
& weaknesses to get maximum out of them.
• Motivation skills
• It involves understanding his followers’ needs &
how these can be satisfied in the most desirable
way.
Behavioural theory
• Leadership is shown by a person’s acts more than
by his traits. Researchers have concluded that to
operate effectively, groups need someone to
perform two major functions: task-related functions
& group maintenance functions. Task-relating
functions relate to providing solutions to the
problems faced by the groups in performing jobs.
Group maintenance functions relate to actions of
solving disputes & ensuring that individuals are
treated as valued by the group. An individual who is
able to perform both these roles would be an
effective leader.
Situational theory
• Situational/Contingency theory suggests that the
leadership effectiveness depends on leader’s
behaviour & situation in which leadership is
exercised.
Leader’s behaviour: Leader’s behaviour is
affected by two variables:
1. Leader’s characteristics: An individual’s
behaviour is influenced by his characteristics like
his ability, personality, attitudes, motivation, &
physical characteristics.
2. Leader’s hierarchical position: It is important
because persons at different levels face different
kind of problems which affect the degree of
participation between the superior & his
subordinates in arriving at decisions to solve the
problems.
Situational Factors: Various situational factors
may be grouped into four categories:
Subordinates’ characteristics
Subordinates’ personal characteristics like their ability,
personality, attitudes, interest, motivation & physical
characteristics affect their behaviour.
Leader’s situation
The leader’s situation depends on two variables:
leader’s position power & leader-subordinate relation.
High-position power simplifies the leader’s task of
influencing others while low-position power makes the
leader’s task more difficult. If leader-subordinate
relation is good, leader is likely to be effective. In
alternative case, he will be ineffective.
Group factors
Various group factors like task design, group
composition, group norms & peer-group
relationship affect leadership effectiveness &
performance. If these factors are favourable,
the leader will be effective.
Organizational factors
Organizational factors like organizational
climate & culture affect leadership
effectiveness. If these are conducive, the leader
will be effective.
Systems theory
• Systems theory of leadership suggests that
leadership arises out of interactions of a leader &
his followers within the contextual variables lying
within an organization & outside it. Two
subsystems: technical & social –interact closely &
shape employee behaviour. Since the organization
continuously interacts with its environment, it
makes suitable changes in its working to meet
environmental requirements. As a result, four
types of leadership patterns emerge in
organisation in stages: formal, emergent, shared &
integrative.
Types/Styles/Models of Leadership
• Leadership styles are the patterns of behaviour
which a leadership adopts in influencing the
behaviour of subordinates. Some of the
important theories/models showing leadership
styles are given below:
Based on behaviour approach
• Power orientation
• Leadership as a continuum
• Likert’s management system
• Employee-production orientation
• Managerial grid
• Tridimensional grid
Based on situational approach
• Fiedler’s contingency model
• Hersey-Blanchard’s situational model
• Path-goal model
Power Orientation
• Based on degree of use of authority, there
are three leadership styles: autocratic,
participative & free-rein.
Autocratic Leadership Style
• Autocratic/ Directive leadership style,
involves centralization of decision making
authority by the superior.
• Advantages
1. There are many subordinates who prefer
to work under centralized authority
structure & strict discipline. They get
satisfaction from this style
2. It provides strong motivation & reward
to a superior exercising this style
3. It leads to quick decision-making
4. Less competent subordinates also have
scope to work in the organization
• Disadvantages
1. People in the organization dislike it
specially when it is strict &
motivational style is negative
2. Employees lack motivation &
frustration, low morale & conflict
develop in the organization
3. Future leaders do not develop in the
organization
Participative Leadership Style
• Participative leadership style also
known as democratic or consultative
style, involves joint decision making
by the superior & his subordinates.
Along with joint decision-making,
the superior delegates adequate
authority to subordinates to
implement decisions.
• Advantages
1. It is quite motivating to employees when
their ideas & suggestions are given weight
in decision making
2. The employees’ productivity is high & they
implement the decisions whole-heartedly
3. They share the responsibility with the
superior & try to protect him also
4. It provides organizational stability by
developing future leaders
• Disadvantages
1. Complex nature of organisation
may not be understandable to
lower-level employees
2. This method is discouraging for
some people who want minimum
interaction with superior
3. Participation may be used secretly
to manipulate employees
Free-rein Leadership Style
Free-rein leadership style is based on
French term laissez-faire which means
without intervention. Thus, this style
involves giving complete freedom to
the subordinates. The superior just
decides the broad policies & limits of
actions & the entire process is left to
the subordinates.
• Advantages
1. Decision making burden of the superior is
lessened
2. This style is quite motivating to subordinates
because they enjoy considerable autonomy in
their functioning
3. Group members make the best possible efforts
to achieve group goals. This leads to higher
productivity
4. This style leads to development of leadership
quality of subordinates as they work
independently
• Disadvantages
1. There is minimum contribution of leader as he
assigns all the activities to his subordinates
and so his importance becomes questionable
2. Adoption of this leadership style requires
highly competent subordinates
3. This leadership style is effective only in a
favourable working environment in which
groups coordinate among them voluntarily,
otherwise there may be chaos in the
organization
Leadership as a continuum
• Tannenbaum & Schmidt have
depicted a broad range of
leadership styles on a continuum
with autocratic style at one end
free-rein at the other end as
shown in the figure below
• The left side shows a style where control is
maintained by the superior and the right side
shows the release of control. Now the question
which arises is at which point of the continuum
should a manager adopt his leadership style?
There is no readymade answer but it depends
on three factors:
1. Forces in the superior- his value system,
confidence in subordinates, his leadership
inclinations & his feeling of security in an
uncertain situation.
2. Forces in subordinates- their need for
independence, readiness to take responsibility
for decision making, level of tolerance,
understanding of goals, problems & knowledge
& experience to deal with the problems, and
ability to participate in decision-making.
3. Forces in the situation- type of organization,
group effectiveness, & nature of problems.
Likert’s Management Systems
• Likert has given a continuum of four systems of
management. He has taken seven variables to
differentiate one management system from others:
leadership, motivation, communication,
interaction-influence, decision-making process,
goal-setting & control process. Given below is
Likert’s management systems showing leadership
behaviour table and he has concluded that system
4 is the best system because of participation in
decision-making.
Employee-Production Orientation