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OORRGGAANNIISSAATTIIOONNAALL 
BBEEHHAAVVIIOOUURR 
LLEEAADDEERRSSHHIIPP
DDeeffiinniittiioonn 
 Leadership is the ability to influence 
individuals or groups toward the 
achievement of goals. 
 Leadership, as a process, shapes the goals of 
a group or organization, motivates behavior 
toward the achievement of those goals, and 
helps define group or organizational culture. 
 It is primarily a process of influence.
Difference between A Manager & A Leader 
 A manager administers, but a leader innovates 
 A manager maintains, while a leader develops 
 A manager focuses on systems and structures, 
whereas a leader’s focus is on people 
 A manager relies on control, but a leader inspires 
trust 
 A manager keeps an eye on the bottom line, while 
a leader has an eye on the horizon 
 A manager does things right, a leader does the 
right thing
EEffffeeccttiivvee LLeeaaddeerrsshhiipp QQuuaalliittiieess aanndd SSkkiillllss 
 In order to become a leader, a person should be 
aware of nitty-gritty of the work that his team has to 
handle. Unless and until he knows about the work, 
he will not be able to lead the team in the right 
direction. 
 An effective leader needs to set example for his team 
members and become a role model for them. If he is 
lazy, dishonest and shirks from responsibilities, how 
can he expect others to be meticulous and sincere! 
 A leader should be totally unbiased. He should not 
have personal favorites in his team, to whom he 
gives more authority or less work. All the members 
in a team should be treated equally.
Patience is one of the most essential qualities needed in a 
leader. 
 Constructive feedback is one of the skills that a leader 
should possess. He should always praise his team members 
if they perform well. At the same time, if they do wrong, he 
should be there to tell them where they went wrong and 
how can they put things back in order 
A leader needs to motivate his team, so that they happily 
contribute towards the team work. He should be aware of 
the stimuli of different members and make judicious use of 
them. 
When a person becomes a leader, he needs to delegate his 
duties as well as responsibilities amongst his team 
members. For this, he should be aware of their strengths 
and weaknesses and delegate accordingly.
•Leader is the one who sets goal for the team and help 
them achieve it. He should possess the vision to aim right 
and at the same time, be able to mobilize people towards 
those goals. 
•A leader should always be receptive to new ideas. Just 
because he is the leader doesn’t mean that the suggestions 
made by others will be useless. He must accept the useful 
ideas of his team members. 
•An effective leader should have loads of understanding 
and always focus on the betterment of the group, as a 
whole, and not individual members. At the same time, he 
should be honest, trustworthy and easily approachable.
Successful TTrraaiittss ooff LLeeaaddeerrss 
(i) A strong desire for accomplishment 
(ii) Persistent pursuit of goals 
(iii)Creativity and intelligence used to solve problems 
(iv) Initiative applied to social situations 
(v) Self-assumed personality 
(vi)Willingness to accept behavioral consequences 
(vii) Low susceptibility to interpersonal stress 
(viii) High tolerance of ambiguity 
(ix)Ability to influence other people 
(x) Ability to structure social interactions
SSttyylleess ooff LLeeaaddeerrsshhiipp 
 1. Autocratic Leadership: Autocratic leadership is an extreme 
form of leadership, where leaders have absolute power over their 
workers or team. Staff and team members have little opportunity 
to make suggestions, even if these would be in the team's or the 
organization's best interest . Most people tend to resent being 
treated like this. Therefore, autocratic leadership usually leads to 
high levels of absenteeism and staff turnover. 
 2. Bureaucratic leadership: Bureaucratic leaders work "by the 
book." They follow rules rigorously, and ensure that their staff 
follows procedures precisely. This is a very appropriate style for 
work involving serious safety risks (such as working with 
machinery, with toxic substances, or at dangerous heights) or 
where large sums of money are involved (such as handling cash).
3. Transformational leadership: People with this leadership style 
are true leaders who inspire their teams constantly with a shared 
vision of the future. While this leader's enthusiasm is often passed 
onto the team, he or she can need to be supported by "detail 
people.” The transformational leaders look after initiatives that 
add value. 
4. Charismatic leadership: A charismatic leadership style can seem 
similar to transformational leadership, because these leaders 
inspire lots of enthusiasm in their teams and are very energetic in 
driving others forward. However, charismatic leaders can tend to 
believe more in themselves than in their teams, and this creates a 
risk that a project, or even an entire organization, might collapse 
if the leader leaves. As such, charismatic leadership carries great 
responsibility, and it needs a long-term commitment from the 
leader.
5. Democratic leadership or participative Leadership: 
Although democratic leaders make the final decisions, 
they invite other members of the team to contribute to 
the decision-making process. This not only increases job 
satisfaction by involving team members, but it also helps 
to develop people's skills. Team members feel in control 
of their own destiny, so they're motivated to work hard 
by more than just a financial reward. Because 
participation takes time, this approach can take more 
time, but often the end result is better. The approach 
can be most suitable when working as a team is essential, 
and when quality is more important than speed to 
market or productivity.
FFoouurr KKeeyy LLeeaaddeerr BBeehhaavviioouurrss
The 
Manage 
rial Grid
Leadership 
Theories
TTrraaiitt TThheeoorryy 
 IInntteelllliiggeennccee 
 PPhhyyssiioollooggiiccaall ffaaccttoorrss 
 EEmmoottiioonnaall SSttaabbiilliittyy 
 IInntteennssee IInnnneerr MMoottiivvaattiioonnaall DDrriivvee 
 HHuummaann rreellaattiioonnss aattttiittuuddee 
 VViissiioonn && FFoorreessiigghhtt 
 EEmmppaatthhyy 
 FFaaiirrnneessss 
 TTeecchhnniiccaall SSkkiillllss 
 OOppeenn mmiinndd && AAddaappttaabbiilliittyy 
 AArrtt ooff CCoommmmuunniiccaattiioonn 
 SSoocciiaall SSkkiillllss
BBeehhaavviioorraall AApppprrooaacchh 
LLeeaaddeerrsshhiipp iinnvvoollvveess aann iinntteerrppeerrssoonnaall 
rreellaattiioonnsshhiipp bbeettwweeeenn lleeaaddeerr && ssuubboorrddiinnaatteess iinn 
wwhhiicchh bbeehhaavviioouurr ooff tthhee lleeaaddeerr ccoonnssttiittuuttee tthhee 
mmoosstt ccrriittiiccaall eelleemmeenntt.. 
 MMiicchhiiggaann SSttuuddiieess 
 OOhhiioo SSttaattee UUnniivveerrssiittyy LLeeaaddeerrsshhiipp SSttuuddiieess.. 
 IIOOWWAA SSttuuddiieess..
MMiicchhiiggaann SSttuuddiieess 
CCoonndduucctteedd bbyy IISSRR aatt UUnniivveerrssiittyy ooff MMiicchhiiggaann 
aafftteerr WWoorrlldd wwaarr IIII 
TThheessee ssttuuddiieess ddiissttiinngguuiisshheess bbeettwweeeenn 22 ddiissttiinncctt 
ssttyylleess ooff lleeaaddeerrsshhiipp 
11.. PPrroodduuccttiioonn CCeenntteerreedd LLeeaaddeerrsshhiipp 
22.. EEmmppllooyyeeee cceenntteerreedd LLeeaaddeerrsshhiipp
OOhhiioo SSttuuddiieess 
TThheessee ssttuuddiieess NNaarrrroowweedd tthhee ddeessccrriippttiioonn ooff lleeaaddeerr 
bbeehhaavviioouurr iinn ttwwoo DDiimmeennssiioonnss 
11..IInniittiiaattiinngg SSttrruuccttuurree 
22.. CCoonnssiiddeerraattiioonn
Leader Behaviours and Leadership 
Styles
IIOOWWAA SSttuuddiieess 
KKuurrtt LLeewwiinn iinnddeennttiiffiieess tthhrreeee mmaaiinn ssttyylleess.. 
11.. AAuuttooccrraattiicc 
22.. DDeemmooccrraattiicc 
33.. FFrreeee RReeiinn ssttyyllee
SSiittuuaattiioonnaall CCoonnttiinnggeennccyy 
AApppprrooaacchh 
 FFiieeddlleerr mmooddeell 
 PPaatthh ggooaall
Leadership Effectiveness iinn tthhee CCoonnttiinnggeennccyy 
TThheeoorryy
TThhee PPaatthh--ggooaall TThheeoorryy ooff LLeeaaddeerrsshhiipp
Leader Behaviour Dimensions in Path-Goal Theory 
1. Leader Directiveness 
Letting subordinates know what’s expected. 
Providing specific guidance as to what should be 
done and how. 
Making leader’s part in the group understood. 
Scheduling work to be done. 
Maintaining definite standards of performance. 
2. Leader Supportiveness 
Showing concern for status and well-being of 
subordinates. 
Doing little things to make the work more 
pleasant. 
Treating members as equals.
3.Leader Participativeness 
Consulting with subordinates. 
Soliciting subordinate suggestions. 
Taking these suggestions seriously. 
Maintaining definite standards of performance. 
4. Leader Achievement-orientedness 
Setting challenging goals. 
Expecting subordinates to perform at their peak 
levels. 
Showing a high degree of confidence in 
subordinates.
Example of Applying Path-Goal 
Theory
The Situational Theory of 
Leadership
Situation – Style Match 
Situation Recommended Leadership Style 
1. People in a state of confusion or panic because of crisis High task and low relationship or 
such as materials shortage, equipment failure, or authoritarian. 
natural disaster. 
2. Complex technology, inexperienced employees. High task and low relationship at 
the outset 
3. Undesirable, repetitive jobs, average employees. High relationship and low task. 
4. Self-sufficient, capable workers performing job. Low task and low relationship 
5. Employees dislike working, job is undesirable. High relationship and high task. 
6. Start-up of new operation, job descriptions are vague. High relationship and high task. 
7. Group of people “doing time” until retirement. High relationship and low task. 
8. Inexperienced but well meaning employees. High relationship and high task. 
9. Repetitive work; employees with average motivation. High relationship and low task. 
10. Employees are performing independent tasks requiring High task; emphasis on relationship 
coordination by leader. depends on emotional maturity of 
employees. 
11. Emotionally immature employees; average skill level. High task and low relationship. 
12. Employees are child like or “prima donnas” but talented. High relationship and low task.
Behavioural Components of Charismatic and Non- 
Charismatic Leaders 
Non-charismatic Leader Charismatic Leader 
Relation to Status Quo Essentially agrees with status quo Essentially opposed to status quo and 
and strives to maintain it strives to 
change it 
Future Goal Goal not too discrepant from status Idealised vision which is highly discrepant 
quo from status quo 
Likableness Shared perspective makes him/her Shared perspective and idealized vision 
likable makes him/her a likable and 
honourable hero worthy of identification and imitation 
Trustworthiness Disinterested advocacy in persuasion Disinterested advocacy by incurring great 
attempts personal risk and cost 
Expertise Expert in using available means to Expert in using unconventional means to 
achieve goals within the framework of transcend the existing order 
the existing order 
Behaviour Conventional, conforming to existing Unconventional or counter normative 
norms 
Environmental Sensitivity Low need for environmental sensitivity High need for environmental sensitivity for 
to maintain status quo changing the status quo 
Articulation Weak articulation of goals and Strong articulation of future vision and 
motivation to lead motivation to lead 
Power Base Position power and personal power Personal power (based on expertise, 
(based on reward, expertise and respect and admiration for a unique hero) 
liking for a friend who is a similar other) 
Leader-Follower Egalitarian, consensus seeking, or Elitist, entrepreneur and exemplary. 
directive. Nudges or orders people to Transforms people to the radical changes 
share his/her views advocated
SSuummmmaarryy 
 Leadership refers to the process of influencing others to follow 
enthusiastically towards realisation of shared goals. Influence 
is a two – way process. The leader influences and is influenced 
by followers. 
 Leadership is important to commit a group of people towards 
specific goals and to make use their potentials to realise the 
goals. Leadership has the ultimate aim of raising the level of 
human conduct and the ethical aspirations of people. 
 There is talk about formal leadership and informal leadership. 
Formal leadership occurs when a manager leads by exercising 
formal authority. Informal leadership arises when a person 
without formal authority is influential in directing the 
behaviour of others. 
 Different leadership styles are distinguished. In this book 
leadership styles are divided into four types : (i) those that are 
based on the amount of authority retained; (ii) those that place 
relative emphasis on people versus task; (iii) those that are 
based on leader’s assumptions about people; and (iv) 
entrepreneurship styles. 
 Among the theories of leadership, the most discussed theory is 
trait theory. According to this theory, certain characteristics
 Situational leadership theory propounded by Paul Hersey and Kenneth Blanchard, adds a 
new dimension to leadership, viz., maturity. The theory hypothesises that the leader’s 
style depends on the maturity level of the subordinate employees. 
 McGregor’s Theory X and Theory Y remind the leaders that contrary to popular belief, 
individuals are under Theory Y. Accordingly, leaders must adopt participative styles to 
influence the followers. 
 The discussion of theories is highly useful to leaders in more than one way. The traits 
theory underlines that an individual possessing the necessary qualities must be appointed 
as leader. 
 Behavioural theories postulate that the behaviour of leaders is more important than their 
qualities. These behaviours can be acquired unlike traits, which are generally inherited. 
 Contingency theories emphasise that the situation in which a leader operates is the most 
important determinant of his effectiveness. 
 Three contemporary issues on leadership should not be missed by any reader. First one 
relates to the need for transformational leadership and not mere transactional leadership. 
The se co nd issue relates to the women as leaders. Surprisingly, women are not inferior to 
men in skills and abilities but the latter are generally preferred for leadership positions in 
our male dominated society. The third issue relates to charismatic leadership which is 
needed when an organisation is introducing a totally new product.
KKeeyy TTeerrmmss 
 Authoritarian leadership 
 Contingency theory 
 Leadership 
 Least preferred co-worker 
 Managerial Grid 
 Leadership styles 
 Charismatic leadership 
 Free-rein style 
 Leadership match 
 Participative style 
 Transformational leadership

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Chapter 7 leadership

  • 2. DDeeffiinniittiioonn  Leadership is the ability to influence individuals or groups toward the achievement of goals.  Leadership, as a process, shapes the goals of a group or organization, motivates behavior toward the achievement of those goals, and helps define group or organizational culture.  It is primarily a process of influence.
  • 3. Difference between A Manager & A Leader  A manager administers, but a leader innovates  A manager maintains, while a leader develops  A manager focuses on systems and structures, whereas a leader’s focus is on people  A manager relies on control, but a leader inspires trust  A manager keeps an eye on the bottom line, while a leader has an eye on the horizon  A manager does things right, a leader does the right thing
  • 4. EEffffeeccttiivvee LLeeaaddeerrsshhiipp QQuuaalliittiieess aanndd SSkkiillllss  In order to become a leader, a person should be aware of nitty-gritty of the work that his team has to handle. Unless and until he knows about the work, he will not be able to lead the team in the right direction.  An effective leader needs to set example for his team members and become a role model for them. If he is lazy, dishonest and shirks from responsibilities, how can he expect others to be meticulous and sincere!  A leader should be totally unbiased. He should not have personal favorites in his team, to whom he gives more authority or less work. All the members in a team should be treated equally.
  • 5. Patience is one of the most essential qualities needed in a leader.  Constructive feedback is one of the skills that a leader should possess. He should always praise his team members if they perform well. At the same time, if they do wrong, he should be there to tell them where they went wrong and how can they put things back in order A leader needs to motivate his team, so that they happily contribute towards the team work. He should be aware of the stimuli of different members and make judicious use of them. When a person becomes a leader, he needs to delegate his duties as well as responsibilities amongst his team members. For this, he should be aware of their strengths and weaknesses and delegate accordingly.
  • 6. •Leader is the one who sets goal for the team and help them achieve it. He should possess the vision to aim right and at the same time, be able to mobilize people towards those goals. •A leader should always be receptive to new ideas. Just because he is the leader doesn’t mean that the suggestions made by others will be useless. He must accept the useful ideas of his team members. •An effective leader should have loads of understanding and always focus on the betterment of the group, as a whole, and not individual members. At the same time, he should be honest, trustworthy and easily approachable.
  • 7. Successful TTrraaiittss ooff LLeeaaddeerrss (i) A strong desire for accomplishment (ii) Persistent pursuit of goals (iii)Creativity and intelligence used to solve problems (iv) Initiative applied to social situations (v) Self-assumed personality (vi)Willingness to accept behavioral consequences (vii) Low susceptibility to interpersonal stress (viii) High tolerance of ambiguity (ix)Ability to influence other people (x) Ability to structure social interactions
  • 8. SSttyylleess ooff LLeeaaddeerrsshhiipp  1. Autocratic Leadership: Autocratic leadership is an extreme form of leadership, where leaders have absolute power over their workers or team. Staff and team members have little opportunity to make suggestions, even if these would be in the team's or the organization's best interest . Most people tend to resent being treated like this. Therefore, autocratic leadership usually leads to high levels of absenteeism and staff turnover.  2. Bureaucratic leadership: Bureaucratic leaders work "by the book." They follow rules rigorously, and ensure that their staff follows procedures precisely. This is a very appropriate style for work involving serious safety risks (such as working with machinery, with toxic substances, or at dangerous heights) or where large sums of money are involved (such as handling cash).
  • 9. 3. Transformational leadership: People with this leadership style are true leaders who inspire their teams constantly with a shared vision of the future. While this leader's enthusiasm is often passed onto the team, he or she can need to be supported by "detail people.” The transformational leaders look after initiatives that add value. 4. Charismatic leadership: A charismatic leadership style can seem similar to transformational leadership, because these leaders inspire lots of enthusiasm in their teams and are very energetic in driving others forward. However, charismatic leaders can tend to believe more in themselves than in their teams, and this creates a risk that a project, or even an entire organization, might collapse if the leader leaves. As such, charismatic leadership carries great responsibility, and it needs a long-term commitment from the leader.
  • 10. 5. Democratic leadership or participative Leadership: Although democratic leaders make the final decisions, they invite other members of the team to contribute to the decision-making process. This not only increases job satisfaction by involving team members, but it also helps to develop people's skills. Team members feel in control of their own destiny, so they're motivated to work hard by more than just a financial reward. Because participation takes time, this approach can take more time, but often the end result is better. The approach can be most suitable when working as a team is essential, and when quality is more important than speed to market or productivity.
  • 11. FFoouurr KKeeyy LLeeaaddeerr BBeehhaavviioouurrss
  • 14. TTrraaiitt TThheeoorryy  IInntteelllliiggeennccee  PPhhyyssiioollooggiiccaall ffaaccttoorrss  EEmmoottiioonnaall SSttaabbiilliittyy  IInntteennssee IInnnneerr MMoottiivvaattiioonnaall DDrriivvee  HHuummaann rreellaattiioonnss aattttiittuuddee  VViissiioonn && FFoorreessiigghhtt  EEmmppaatthhyy  FFaaiirrnneessss  TTeecchhnniiccaall SSkkiillllss  OOppeenn mmiinndd && AAddaappttaabbiilliittyy  AArrtt ooff CCoommmmuunniiccaattiioonn  SSoocciiaall SSkkiillllss
  • 15. BBeehhaavviioorraall AApppprrooaacchh LLeeaaddeerrsshhiipp iinnvvoollvveess aann iinntteerrppeerrssoonnaall rreellaattiioonnsshhiipp bbeettwweeeenn lleeaaddeerr && ssuubboorrddiinnaatteess iinn wwhhiicchh bbeehhaavviioouurr ooff tthhee lleeaaddeerr ccoonnssttiittuuttee tthhee mmoosstt ccrriittiiccaall eelleemmeenntt..  MMiicchhiiggaann SSttuuddiieess  OOhhiioo SSttaattee UUnniivveerrssiittyy LLeeaaddeerrsshhiipp SSttuuddiieess..  IIOOWWAA SSttuuddiieess..
  • 16. MMiicchhiiggaann SSttuuddiieess CCoonndduucctteedd bbyy IISSRR aatt UUnniivveerrssiittyy ooff MMiicchhiiggaann aafftteerr WWoorrlldd wwaarr IIII TThheessee ssttuuddiieess ddiissttiinngguuiisshheess bbeettwweeeenn 22 ddiissttiinncctt ssttyylleess ooff lleeaaddeerrsshhiipp 11.. PPrroodduuccttiioonn CCeenntteerreedd LLeeaaddeerrsshhiipp 22.. EEmmppllooyyeeee cceenntteerreedd LLeeaaddeerrsshhiipp
  • 17. OOhhiioo SSttuuddiieess TThheessee ssttuuddiieess NNaarrrroowweedd tthhee ddeessccrriippttiioonn ooff lleeaaddeerr bbeehhaavviioouurr iinn ttwwoo DDiimmeennssiioonnss 11..IInniittiiaattiinngg SSttrruuccttuurree 22.. CCoonnssiiddeerraattiioonn
  • 18. Leader Behaviours and Leadership Styles
  • 19. IIOOWWAA SSttuuddiieess KKuurrtt LLeewwiinn iinnddeennttiiffiieess tthhrreeee mmaaiinn ssttyylleess.. 11.. AAuuttooccrraattiicc 22.. DDeemmooccrraattiicc 33.. FFrreeee RReeiinn ssttyyllee
  • 20. SSiittuuaattiioonnaall CCoonnttiinnggeennccyy AApppprrooaacchh  FFiieeddlleerr mmooddeell  PPaatthh ggooaall
  • 21. Leadership Effectiveness iinn tthhee CCoonnttiinnggeennccyy TThheeoorryy
  • 22. TThhee PPaatthh--ggooaall TThheeoorryy ooff LLeeaaddeerrsshhiipp
  • 23. Leader Behaviour Dimensions in Path-Goal Theory 1. Leader Directiveness Letting subordinates know what’s expected. Providing specific guidance as to what should be done and how. Making leader’s part in the group understood. Scheduling work to be done. Maintaining definite standards of performance. 2. Leader Supportiveness Showing concern for status and well-being of subordinates. Doing little things to make the work more pleasant. Treating members as equals.
  • 24. 3.Leader Participativeness Consulting with subordinates. Soliciting subordinate suggestions. Taking these suggestions seriously. Maintaining definite standards of performance. 4. Leader Achievement-orientedness Setting challenging goals. Expecting subordinates to perform at their peak levels. Showing a high degree of confidence in subordinates.
  • 25. Example of Applying Path-Goal Theory
  • 26. The Situational Theory of Leadership
  • 27. Situation – Style Match Situation Recommended Leadership Style 1. People in a state of confusion or panic because of crisis High task and low relationship or such as materials shortage, equipment failure, or authoritarian. natural disaster. 2. Complex technology, inexperienced employees. High task and low relationship at the outset 3. Undesirable, repetitive jobs, average employees. High relationship and low task. 4. Self-sufficient, capable workers performing job. Low task and low relationship 5. Employees dislike working, job is undesirable. High relationship and high task. 6. Start-up of new operation, job descriptions are vague. High relationship and high task. 7. Group of people “doing time” until retirement. High relationship and low task. 8. Inexperienced but well meaning employees. High relationship and high task. 9. Repetitive work; employees with average motivation. High relationship and low task. 10. Employees are performing independent tasks requiring High task; emphasis on relationship coordination by leader. depends on emotional maturity of employees. 11. Emotionally immature employees; average skill level. High task and low relationship. 12. Employees are child like or “prima donnas” but talented. High relationship and low task.
  • 28. Behavioural Components of Charismatic and Non- Charismatic Leaders Non-charismatic Leader Charismatic Leader Relation to Status Quo Essentially agrees with status quo Essentially opposed to status quo and and strives to maintain it strives to change it Future Goal Goal not too discrepant from status Idealised vision which is highly discrepant quo from status quo Likableness Shared perspective makes him/her Shared perspective and idealized vision likable makes him/her a likable and honourable hero worthy of identification and imitation Trustworthiness Disinterested advocacy in persuasion Disinterested advocacy by incurring great attempts personal risk and cost Expertise Expert in using available means to Expert in using unconventional means to achieve goals within the framework of transcend the existing order the existing order Behaviour Conventional, conforming to existing Unconventional or counter normative norms Environmental Sensitivity Low need for environmental sensitivity High need for environmental sensitivity for to maintain status quo changing the status quo Articulation Weak articulation of goals and Strong articulation of future vision and motivation to lead motivation to lead Power Base Position power and personal power Personal power (based on expertise, (based on reward, expertise and respect and admiration for a unique hero) liking for a friend who is a similar other) Leader-Follower Egalitarian, consensus seeking, or Elitist, entrepreneur and exemplary. directive. Nudges or orders people to Transforms people to the radical changes share his/her views advocated
  • 29. SSuummmmaarryy  Leadership refers to the process of influencing others to follow enthusiastically towards realisation of shared goals. Influence is a two – way process. The leader influences and is influenced by followers.  Leadership is important to commit a group of people towards specific goals and to make use their potentials to realise the goals. Leadership has the ultimate aim of raising the level of human conduct and the ethical aspirations of people.  There is talk about formal leadership and informal leadership. Formal leadership occurs when a manager leads by exercising formal authority. Informal leadership arises when a person without formal authority is influential in directing the behaviour of others.  Different leadership styles are distinguished. In this book leadership styles are divided into four types : (i) those that are based on the amount of authority retained; (ii) those that place relative emphasis on people versus task; (iii) those that are based on leader’s assumptions about people; and (iv) entrepreneurship styles.  Among the theories of leadership, the most discussed theory is trait theory. According to this theory, certain characteristics
  • 30.  Situational leadership theory propounded by Paul Hersey and Kenneth Blanchard, adds a new dimension to leadership, viz., maturity. The theory hypothesises that the leader’s style depends on the maturity level of the subordinate employees.  McGregor’s Theory X and Theory Y remind the leaders that contrary to popular belief, individuals are under Theory Y. Accordingly, leaders must adopt participative styles to influence the followers.  The discussion of theories is highly useful to leaders in more than one way. The traits theory underlines that an individual possessing the necessary qualities must be appointed as leader.  Behavioural theories postulate that the behaviour of leaders is more important than their qualities. These behaviours can be acquired unlike traits, which are generally inherited.  Contingency theories emphasise that the situation in which a leader operates is the most important determinant of his effectiveness.  Three contemporary issues on leadership should not be missed by any reader. First one relates to the need for transformational leadership and not mere transactional leadership. The se co nd issue relates to the women as leaders. Surprisingly, women are not inferior to men in skills and abilities but the latter are generally preferred for leadership positions in our male dominated society. The third issue relates to charismatic leadership which is needed when an organisation is introducing a totally new product.
  • 31. KKeeyy TTeerrmmss  Authoritarian leadership  Contingency theory  Leadership  Least preferred co-worker  Managerial Grid  Leadership styles  Charismatic leadership  Free-rein style  Leadership match  Participative style  Transformational leadership