This document summarizes key concepts around principles of management, leading, leadership, and leadership styles. It defines leading as influencing others toward organizational objectives. A leader is someone who influences a group toward achieving a goal. Leadership is defined as motivating a group to act toward a common goal. Effective leaders are self-aware, focus on developing others, encourage strategic thinking and action, and are ethical. Leadership styles discussed include democratic, autocratic, laissez-faire, strategic, transformational, transactional, coach-style, and bureaucratic. The document also distinguishes between formal and informal leaders, and between leaders and managers.

1. PRINCIPLE OF MANAGEMENT

2. 1.What is Leading?
2.Who is a Leader?
3.What is Leadership?
4.Qualities of Effective Leaders
5.Nature and Characteristics of Leadership
6.Formal and informal Leaders
7.Leadership Functions
8.Importance of Leadership
9.Process or Techniques of Effective Leadership
10.Leader Vs Manager
11.Leadership Styles
Outlines: Unit
04 Management-Leading, Leader & Leadership

3. 1.What is Leading?
 Leading involves influencing others through direction, inspiration, and
motivation toward the attainment of organizational objectives.
 Leading is influencing or prompting the organization member to work
together with the interest of the organization.
 Creating a positive attitude towards the work and goals among the members
of the organization is called leading.
LEADING refers to the function while, LEADERSHIP refers to the process.

4. 2.Who is a Leader?
A leader is "a person who influences a group of people towards the achievement
of a goal“
Leaders help themselves and others to do the right things. They set direction,
build an inspiring vision, and create something new. As well as providing
direction, inspiration, and guidance, good leaders exhibit courage, passion,
confidence, commitment, and ambition.
They nurture the strengths and talents of their people and build teams committed
to achieving common goals.

5. 3.What is Leadership?
Leadership is about mapping out where you need to go to "win" as a team or an
organization; and it is dynamic, exciting, and inspiring.
Leadership is the art of motivating a group of people to act toward achieving a
common goal. In a business setting, this can mean directing workers and
colleagues with a strategy to meet the company's needs.
Leadership is a process of social influence, which maximizes the efforts of
others, towards the achievement of a goal.
Leadership is about motivating people to work together and cooperate with
themselves and in some cases, other teams, to achieve a certain goal.
Leadership motivates the people to a higher level of performance through their
strong human relations.

6. 4.Qualities of Effective Leaders
Five Qualities of Effective Leaders:
• They are self-aware and prioritize personal development.
• They focus on developing others.
• They encourage strategic thinking, innovation, and action.
• They are ethical and civic-minded.
• They practice effective cross-cultural communication.
Effective Cross-Cultural Communication
•Maintain etiquette (Polite behavior)
•Avoid slang
•Speak slowly
•Keep it simple
•Practice active listening
•Take turns to talk
•Write things down
•Be supportive
•Be careful with humour
•Avoid closed questions

7. Maintain etiquette (Polite behavior)
Many cultures have specific etiquette around the way they communicate. Before
you meet, research the target culture, or if time allows, do some cross cultural
training.
Avoid slang
Not even the most educated non-native English speaker will have a
comprehensive understanding of English slang, idioms and sayings. They may
understand the individual words you have said, but not the context or the
meaning. As a result you could end up confusing them or at worst, offending
them.
Speak slowly
Even if English is the common language in a cross cultural situation it’s not a
good idea to speak at your normal conversational speed. Modulating your pace
will help, as will speaking clearly and pronouncing your words properly.
Keep it simple
In a cross cultural conversation there’s no need to make it harder for both of you
by using big words. Just keep it simple. one syllable(Move) words are better than
two syllable words. Say “Please do this quickly” rather than “Please do this in an
efficacious manner.”

8. Practice active listening
Active listening is a very effective strategy for improving cross cultural
communication. Restate or summarise what the other person has said, to ensure
that you have understood them correctly, and ask frequent questions.
Take turns to talk
Make the conversation flow more freely by taking it in turns to speak. Make a
point and then listen to the other person respond.
Write things down
If you’re not sure whether the other person has understood you properly, write it
down to make sure. This can be particularly helpful when discussing large
figures.
Be supportive
Effective cross cultural communication is about all parties feeling comfortable. In
any conversation with a non-native English speaker, treat them with respect, do
your best to communicate clearly and give them encouragement when they
respond. This will help build their confidence and trust in you.

9. Be careful with humour
Many cultures take business very seriously and believe in behaving
professionally and following protocol at all times. Consequently they don’t
appreciate the use of humour and jokes in a business context.
Avoid closed questions
Don’t phrase a question that needs a ‘yes’ or ‘no’ answer. In many cultures it is
difficult or embarrassing to answer in the negative, so you will always get a ‘yes’
even if the real answer is ‘no’.

10. 5.Nature and Characteristics of
Leadership
1.Leadership is a personal quality.
2. It exists only with followers. If there are no followers, there is no leadership.
3. It is the willingness of people to follow that makes person a leader.
4. Leadership is a process of influence. A leader must be able to influence the
behaviour, attitude and beliefs of his subordinates.
5. It exists only for the realization of common goals.
6. It involves readiness to accept complete responsibility in all situations.
7. Leadership is the function of stimulating the followers to strive willingly to
attain organizational objectives.
8. Leadership styles do change under different circumstances.
9. Leadership is neither bossism nor synonymous with; management.

11. 6.Formal and Informal Leaders
From the view point of official recognition from top management, leaders may be
classified as formal and informal leaders.
Formal leader
A formal leader is one who is formally appointed or elected to direct and control
the activities of the subordinates.
He is a person created by the formal structure, enjoys organizational authority and
is accountable to those who have elected him in a formal way.
The formal leader has a two-fold responsibility. On the one hand, he has to fulfill
the demands of the organization, while on the other he is also supposed to help,
guide and direct his subordinates in satisfying their needs and aspirations.

12. Informal leader
Informal leaders are not formally recognized.
They derive authority from the people who are under their influence.
In any organization we can always find some persons who command respect and
who are approached to help, guide and protect the informal leaders have only one
task to perform, i.e., to help their followers in achieving their individual and
group goals.
Informal leaders are created to satisfy those needs which are not satisfied by the
formal leaders.
An organization can make effective use of informal leaders to strengthen the
formal leadership.

13. 7.Leadership Functions
Following are the important functions of a leader:
1.Setting Goals
2.Organizing
3.Initiating Action
4.Co-Ordination
5.Direction and Motivation
6.Link between Management and Workers
8.Importance of Leadership
1.It Improves Motivation and Morale
2.It Acts as a Motive Power to Group Efforts
3.It Acts as an Aid to Authority
4.It is Needed at All Levels of Management
5.It Rectifies the Imperfection of the Formal Organisational Relationships
(Formal
6.It Provides the Basis for Co-operation
Informal)

14. 9.Process or Techniques of Effective Leadership
1.The leader should consult the group in framing the policies and lines of action
and in initiating any radical change therein.
2.He should attempt to develop voluntary co-operation from his subordinates in
realizing common objectives.
3.He should exercise authority whenever necessary to implement the policies.
4.He should give clear, complete and intelligible instructions to his subordinates.
5.He should build-up confidence and zeal in his followers.
6.He should listen to his subordinates properly and appreciate their feelings.
7.He should communicate effectively.
8.He should follow the principle of motivation.

15. 10.Leader Vs Manager
Basis Manager Leader
Origin
A person becomes a manager by
virtue(Behavior) of his position
A person becomes a leader on
basis of his personal qualities.
Formal Rights
Manager has got formal rights in
an organization because of his
status.
Rights are not available to a
leader.
Followers
(Workers)
The subordinates are the
followers of managers.
The group of employees whom
the leaders leads are his
followers.
Functions
A manager performs all five
functions of management.
Leader influences people to
work willingly for group
objectives.
Necessity
A manager is very essential to a
concern.
A leader is required to create
cordial relation between person
working in and for organization.
Stability It is more stable. Leadership is temporary.

16. Mutual
Relationship
All managers are leaders. All leaders are not managers.
Accountability
Manager is accountable for self
and subordinates behaviour and
performance.
Leaders have no well defined
accountability.
Concern
A manager’s concern is
organizational goals.
A leader’s concern is group goals
and member’s satisfaction.
Followers
(People)
People follow manager by virtue
of job description.
People follow them on voluntary
basis.
Role continuation
A manager can continue in office
till he performs his duties
satisfactorily in congruence with
organizational goals.
A leader can maintain his
position only through day to day
wishes of followers.
Sanctions
Manager has command over
allocation and distribution of
sanctions.
A leader has command over
different sanctions and related
task records. These sanctions are
essentially of informal nature

17. 11.Leadership Styles
1.Democratic Leadership
A democratic leader makes decisions based on their team’s opinion and feedback.
In simpler words, they get everyone involved in the decision-making process.
2.Autocratic Leadership
This is precisely the opposite of democratic leadership. The opinions of team members are
not considered while making any business decision.
3.Laissez-faire Leadership
Laissez-faire means “let them do”. This leadership style is the least intrusive and
ensures that the decision-making authority lies with the team members.
This leadership style empowers team members and holds them accountable for
their work. This motivates many team members to put their best foot forward,
improving the organisation’s efficiency and productivity.
4.Strategic Leadership
Strategic leadership is when leaders use their skills and capabilities to help team
members and organisation achieve their long-term goals. Strategic leaders strive
to get the best out of people or situations.

18. 5.Transformational Leadership
Transformational leaders inspire others to achieve the unexpected. They aim to
transform and improve team members’ and organisations’ functions and
capabilities by motivating and encouraging them.
6.Transactional Leadership
This type of leadership is task-oriented, which means team members who meet
the leader’s expectations will be rewarded, and others will be punished. It is a
prevalent leadership style based on the action-and-reward concept.
7.Coach-Style Leadership
This leadership style focuses on identifying and nurturing a team member’s
strengths and weaknesses.
A coaching leader develops strategies that emphasise team members’ success.
Though this is similar to strategic and democratic leadership styles, the focus here
is more on the individual.
8.Bureaucratic Leadership
This kind of leadership style sticks to the rules. For example, they might listen to
their team members’ opinions while deciding.
Unit 05