LEADERSHIP

INTRODUCTION
 The success of every industrial enterprise is
dependent upon the quality of its leadership.
 Tata Group – J. N. Tata
 Reliance – Dhirubhai Ambani
 Able leadership cab successfully frame –
 the objectives of the enterprise,
 designing the methods to achieve them,
 directing and coordinating the activities of various
departments, etc.
 Peter Drucker - Leadership is the lifting of man’s
visions to higher sights, the raising of man’s
performance to a higher standard, the building of
man’s personality beyond its normal limitations.
DIFFERENCE BETWEEN A LEADER AND A MANAGER

 Leader:  Manager:

 A person emerges  Person is appointed

as a leader  Possess – Positional
 Possess - Personal power
power  There is a clash of
 There is a mutuality objective
of objective  Believes in doing
 Believes in doing things right
right thing
CHARACTERISTICS OF LEADERSHIP
 Leadership implies the existence of followers
 Leadership involves a community of interest
between the leader and his followers
 Leadership involves an unequal distribution of
authority among leaders and group members
 Leadership implies that leaders can influence their
followers or subordinates in addition to being able to
give their followers or subordinates legitimate
directions
FUNCTIONS OF A LEADER
 Setting and Achieving Organisational Goals
 Goal-Setter
 Planner
 Executive
 Planning Operations of the Organisation
 Expert
 External Group Representative
 Surrogate for Individual Responsibility
 Controller of Internal Relationships within the Organisation
 Administrator of Rewards and Punishments
 Arbitrator and Mediator
FUNCTIONS OF A LEADER
 Symbolic Figure for the Group
 Exemplar
 Symbol of the Group
 Ideologist
 Father Figure
 Scapegoat
TRADITIONAL APPROACHES TO LEADERSHIP

 Three approached of Leadership:

 Traits approach,
 Behavioural approach, and
 Contingency approach.
TRAITS APPROACH
 Leaders are born, not made
 Personal qualities and abilities
 According to George R. Terry, traits generally found
associated with leadership are mental and physical
energy, emotional stability, knowledge of human
relations, empathy, objectivity, personal motivation,
communication skills, teaching ability, social skills
and technical competence.
 According to Fayol, the leader should have good
health and physical fitness, intelligence and mental
vigour, moral qualities, knowledge and managerial
ability.
TRAITS APPROACH
 Qualities of leader:
 Physical qualities – high degree of physical and nervous
energy
 Moral qualities – moral courage, fair play and justice,
integrity
 Qualities of head and heart - vision, emotional intelligence,
knowledge, decisiveness, empowerment, intution
TRAITS APPROACH

 Criticism:
 Failed to identify absolute traits
 Difficulties in measurement
 Ignore situational factors
BEHAVIOURAL APPROACH
 Assumes leader can not born but trained.
 They wondered if there was something unique in the
way that effective leaders behave i.e., the way they
deal with people—communicate, give direction,
motivate, delegate, plan, conduct meetings, and so
on.
 Motivation – can be motivate or negative
 Authority – autocratic, democratic and free-rein
AUTOCRATIC LEADERSHIP
 The leader alone determines policies and makes
plans.
 He tells others what to do and how to do it.
 He demands strict obedience and relies on power.
 An autocratic leader may sometimes be paternalistic
or benevolent also who uses rewards for obtaining
obedience from his employees.
AUTOCRATIC LEADERSHIP
 Merits
 increase efficiency, save time and get quick results,
 works well with employees who have a low tolerance
for ambiguity,
 Chain of command, and division of work (who is
supposed to do what) are clear and fully
understandable by all.
AUTOCRATIC LEADERSHIP
 Demerits
 One way communication without feedback
 The autocratic leader is alone in decision making
 massive resistance, low morale and low productivity.
DEMOCRATIC LEADERSHIP
 participative or person-oriented leadership.
 Give freedom of action
 A part of the leader’s task is to encourage and
reinforce constructive interrelationships among
members and to reduce intra-group conflict and
tensions.
DEMOCRATIC LEADERSHIP
 Merits:
 the participative leader has the critical factor of
built-in-personal motivation working for him.
 The leader consistently receives the benefit of the
best information, ideas, suggestions, and talent—
and operating experience—of his people.
 This style of leadership permits and encourages
people to develop, grow and rise in the organisation.
 Demerits:
 The participative style can take enormous amounts
of time and, may degenerate into a complete loss of
leader’s control. Subordinates may show greater
absenteeism and tardiness.
 Some leaders may use this style as a way of
avoiding responsibility.
FREE REIN
 Also called laissez faire leadership.
 The leader exercises absolutely no control.
 He only provides information, materials and facilities
to his men to enable them to accomplish group
objectives.
 This type can be a disaster if the leader does not
know well the competence and integrity of his
people and their ability to handle this kind of
freedom.
SPECTRUM OF LEADERSHIP STYLE
 The leader “tells” subordinates what his decision is.
 The leader “sells” his decision i.e., persuades
subordinates to accept it.
 The leader invites questions from subordinates to give
them a fuller explanation of his
 thinking.
 The leader presents only a tentative decision subject to
change
 The leader presents only the problem invites solutions
and then makes his decision.
 The leader presents the problem and lets the group make
a decision within certain limits of action.
 The leader permits the group to make decision within
limits def ined by the situation.
 Rensis Likert
 Exploitative authoritative
 Benevolent authoritative
 Consultative
 Participative
SUPERVISION
 Leadership style can be either employee-oriented or
production oriented.
 Ohio-state University model
 Management grid
THE OHIO STATE MODEL

Leader Behaviour Description Questionnaire (LBDQ)

MANAGERIAL GRID
 Describe five types of management style.
CONTINGENCY APPROACH
 The contingency approach to leadership views the
leader as a product of the times and the situation.
 Important among contingency leadership models
are:
 Fiedler’s model,
 Hersey and Blanchard’s model, and
 Robert J. House’s model.
FIEDLER ’S MODEL
 This model postulates that the effectiveness of
leadership style depends on situational
favourableness, i.e., the ease and difficulty with
which the leader can influence his subordinates.
 It depends on –
 leader-member relations,
 task structure,
 Position power
HERSEY AND BLANCHARD MODEL
 Believe that the relationship between a manager
and subordinates moves through four phases as
subordinates develop and “mature” and that
managers need to vary their leadership style with
each phase.
 Initial phase –
 subordinates first enter into the organisation
 they need to be instructed in their jobs and told about the
organisation’s rules and procedures.
 High task orientation and low relationship
 Second phase –
 Subordinate mature
 Increase relationship
 But still need high task orientation
 Third phase –
 Grow much maturity
 No need of high task oriented
 Mature, motivated and self – directed employee
 Life cycle model allow flexibility of leadership,
change with the situation.
ROBERT J. HOUSE’S MODEL
 According to Robert, there can be four style of leadership
 Directive – provide direction
 Supportive – friendly and concern for people and status
 Achievement orientation – set goal, confident in subordinates
 Participative - takes decisions after consultation with his
subordinates
 House theory- path goal theory
 Leadership can be motivating or satisfying to the extent
that the behaviour increases subordinate’s goal
attractiveness and clarifies the paths to these goals.
 Characteristics of subordinates:
 Internal – result occurs because of their behaviour
 External - result occurs because of their luck of chance
SITUATIONAL FACTORS DETERMINING CHOICE OF
LEADERSHIP STYLE

 There are four types of situational factors which are

significant to a manager while choosing his
leadership style:
 factors in the manager himself,
 factors in his subordinates,
 factors in the general situation, and
 factors in the organisational system.
FACTORS IN MANAGER
 The nature of the manager himself
 his attitudes, values, knowledge and skill, experience and
maturity, emotional flexibility
 a manager’s assumptions about human nature
determine his choice of style.
FACTORS IN SUBORDINATES
 Substitutes as leadership
 Experience, ability and training
 Who do not care about organisation
FACTORS IN THE GENERAL SITUATION
 Leadership style of the manager’s supervisors
 Job demands
 Pressure of time
FACTORS IN THE ORGANISATIONAL SYSTEM

 Division of work
 Organisation structure
 Production technology
NEW APPROACHES TO LEADERSHIP
 Contract exchange of rewards for employee efforts and
manage by exception i.e., intervene only if standards are not
met.
 Charismatic approach –
 Certain personal traits and skills which enable him to exercise profound
and extraordinary effects on his followers so that they voluntarily
identify with the organisation, its standards of conduct and willingly
seek to fulfi ll its purpose.
 The traits and skills of a charismatic leader include:
 Ideological vision
 Use of personal example
 Impression management
 Social sensitivity
 Empathy
 High expectation for subordinates and
 Self-confi dence and confi dence in subordinates
NEW APPROACHES TO LEADERSHIP
NEW APPROACHES TO LEADERSHIP
 Transformational approach defines a leader as one
who leads his organisation through successful
transformations by shifting the values, beliefs and
needs of his followers.
 He make necessary policy changes in their
recruitment, selection, promotion, training and
development, provides them high expectations,
vision and sense of mission, instills pride and trust,
promotes intelligence, rationality and careful
problem-solving, and gives personal attention and
coaching.
NEW APPROACHES TO LEADERSHIP
 Characteristics of transformational leader:
 He is charismatic.
 He identifies himself as a change agent.
 He is courageous.
 He is value driven.
 He believes in people and has strong confidence in their
ability.
 He is a life-long learner.
 He is a visionary.
 He can skillfully deal with ambiguity, complexity and
uncertainty.
LEADERSHIP ASSESSMENT
 Criteria to measure leader effectiveness:
 Satisfaction of group need
 Poll of individual needs
 Time required to achieve goal
 Work pattern profile