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Page 1: Leadership

GOOD MORNING

Submitted By:- Vikram Pal MBA

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LEADERSHIP

Leadership is the process of influencing the behaviour of others to work willingly and enthusiastically for achieving predetermined goals.

According to TERRY

“Leadership is essentially a continuous process of influencing behaviour. A leader breaths life into the group and motivates it towards goals. The lukewarm desires for achievement are transformed into a burning passion for accomplishment.”

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FEATURES OF LEADERSHIP

Leadership is the continuous process of behaviour.

Leadership may be seen in terms of relationship between a leader and his followers.

Leaders tries to influence the behaviour of individuals or group of individuals around him to achieve common goals.

Leadership gives an experience of help to followers to attain common goals.

Leadership is exercised in a particular situation, at a given point of time, and under specific set of circumstances.

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IMPORTANCE OF LEADERSHIP AS INFLUENCE PROCESS

Leadership is an important factor for making any type of organisations successful. It helps in:-

Motivating Employees

Creating Confidence

Building Morale

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LEADERSHIP THEORIES

Various theories of leadership are:-

Charismatic Leadership Theory

Trait Theory

Behavioural Theory

Situational Theory

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Charismatic Leadership Theory

This theory is also known as Great Man Theory.

It is based on a principle “a leader is born and is not made”.

A leader has some charisma which acts as influencer.

Charisma is a God gifted attribute in a person which makes him a leader irrespective of the situations in which he works. Charismatic leaders are those who inspire followers and have a major impact on their organizations through their personal vision and energy.

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According to Robert House

“Charismatic leader has extremely high levels of self confidence, dominance, and a strong conviction in the normal righteousness of his/her beliefs, or at least the ability to convince the followers

that he/she possesses such confidence or conviction.”

Assumptions of Charismatic TheoryLeaders have some exceptional inborn leadership qualities which are bestowed upon them by the divine power.

Inborn qualities are sufficient for a leader to be successful.

These qualities can’t be enhanced through education and training.

These qualities make a leader effective and situational factors don’t have any influence.

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Trait Theory The weakness of charismatic theory gave way to more realistic approach to leadership.

Trait is defined as relatively enduring quality of an individual.

This theory accepted the fact that leadership traits are not completely inborn but can also be acquired through learning and experience.

This approach seeks to determine ‘what makes a successful leader’ from the leaders own personal characteristics.

It gives hypothesis on the qualities such as intelligence, attitudes, personality and biological factors for effective leaders.

Various traits are classified into innate and acquirable traits.

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1. Innate traits

Innate qualities are those which are possessed by various individuals since their birth. These qualities are natural and often known as god-gifted. On the basis of such qualities, it is said that ‘leaders are born and not made’. These qualities can not be acquired by the individuals. The following are the major innate qualities :

Physical features :- Physical features of a man are determined by heredity factors. Physical characterstics and rate of maturation determine the personality formation. To some extent, height, weight, physique, health and appearance are important for leadership.

Intelligence :- Intelligence is generally expressed in terms of mental ability. It, to a very great extent is a natural quality in the individuals because it is directly related with brain. Though, many psychologists claim that the level of intelligence in an individual can be increased through various training methods

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2. Acquirable traits Acquirable qualities of leadership are those which can be acquired

and increased through various processes. Such as, when a child is born, he learns many of the behavioural patterns through socialisation and identification processes. The following are the major acquirable qualities:-Emotional Stability:- A leader should have high level of emotional stability. He should be free from bias, is consistent in action, and refrains from anger. He must be self confident and believes that he can meet most situations successfully.Human Relations:- A leader should know how to deal with human beings. He should have intimate knowledge of people, their relationship to each other and their reaction to various situations.Empathy:- Empathy refers to observing the things or situations from others point of view. It is considered as very important aspect for successful leader. Empathy requires respect for the other persons, their rights, beliefs, values and feelings.Objectivity:- Objectivity implies that what a leader does should be based on relevant facts and information. The leader must be objective and doesn’t permit himself to get emotionally involved to the extent that he finds it difficult to make an objective diagnosis and implement the action required.

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Motivating Skills:- A leader must be self motivated and also has requisite quality to motivate his followers. Both the inner drive and external forces motivate a person for higher performance. The leader can play active role in stimulating the inner drives of his followers.Technical Skills:- Leader must have the ability to plan, organise, delegate, analyse, seek advice, make decision, control and win cooperation. The use of these abilities constitute technical competence of leadership.Communication Skills:- A successful leader knows how to communicate effectively. Communication has greater force in getting the acceptance from the receivers of communication. A leader uses communication skilfully for persuasive, informative, and stimulating purposes.Social Skills:- A successful leader has social skills. He understand people and knows their strengths and weaknesses. He has the ability to work with people and conducts himself so that he gains their confidence and loyalty, and people cooperate willingly with him.

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Behavioural Theory

Behavioural theory emphasises that strong leadership is the result of effective role behaviour.

Leadership is shown by a person’s acts more than by his traits.

Researchers exploring leadership role come to the conclusion that to operate effectively, group needs to perform two functions:-

(i) Task Related Function:- It is also known as problem solving functions, relates to providing solutions to the problem faced by the group, in performing jobs and activities.

(ii) Group Maintenance Function:- It is also known as social functions, relates to action of mediating disputes and ensuring that individuals feel valued by groups.

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For performing these two functions successfully two different type of leader’s behaviour are required these are:-

Functional Behaviour:-Functional behaviour influences followers positively and includes such functions as setting clear goals, motivating employees for achieving goals, raising the level of morale, building team spirit, effective two way communication.

Dysfunctional Behaviour:-Dysfunctional behaviour is unfavourable to the followers and denotes ineffective leadership. Such a behaviour may be inability to accept employees ideas, display of emotional immaturity, poor human relations etc.

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Situational TheorySituational theory is also known as Contingency theory.

This theory was applied first time in 1920 in the armed forces of Germany with the objective to get good generals under different situations.

The prime attention in this theory is given to the situation in which leadership is exercised.

Effectiveness of leadership is affected by the factors associated with the leader (Leader’s behaviour) and the factor associated with the situation(Situational factors).

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Leader’scharacterstics

S I T U A T I O N A L F A C T O R S

Leader’sbehaviour

Leadershipeffectiveness

Leader’ssituation

Leader’sHierarchichal

position

Organisational factors

Subordinate’s characterstics

Group factors

Group performance

Factors affecting leadership effectiveness

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Leader’s BehaviourLeader’s behaviour is further affected by two variables:-

Leader’s Characteristics:-The behaviour of the individual is influenced by intelligence and ability, his characteristics like his personality characteristics, attitudes, interest, motivation, and physical characteristics such as age , sex, and physical features.

Leader’s Hierarchical Position:-Leader’s hierarchical position in the organisation is very important because persons at different levels face different kinds of problem which effect the degree of participation between the superior and his subordinates in arriving at decisions to solve the problems.

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Situational Factors

The various situational factors are grouped into four categories:-Subordinate Characteristics:-It includes personality characteristics, attitude, interest, motivation, physical characteristics such as age, sex, physical features.

Leader’s Situation:-The variables which determine the leaders situation are:

(i)Leader’s position power:-It helps in influencing others. High position power simplifies the leader’s task of influencing others, while low position power makes the leader’s task more difficult.

(ii)Leader’s Subordinate relation:-It is based on the classic exchange theory which suggests that there is two way influence in a social relationship. If the leader has good subordinates, and good relation with them, he is likely to be more effective.

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Group Factors:- Various group factors like task design, group composition, group norms, peer group relationship affect leadership effectiveness and performance. If these factors are favourable, the leader will be effective.

Organisational Factors:- Organisational factors like organisational climate and organisational culture affect leadership effectiveness. If these are conductive, the leader will be effective.

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THANKYOU

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LEADERSHIP STYLES

Leadership styles are the patterns of behaviour which a leader adopts in influencing the behaviour of his followers. These patterns emerge in the leader as he begins to respond in the same fashion under similar conditions; he develops help habits of actions that become leadership styles.

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These styles are either based on behavioural approach or situational approach of leadership. Some of the important theories or models prescribing leadership styles are given below:-

BASED ON BEHAVIOURAL APPROACH:-1. Power Orientation2. Leadership As A Continuum3. Employee-Production Orientation4. Likert’s Management System5. Managerial Grid6. Tri-Dimension Grid

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BASED ON SITUATIONAL APPROACH:-

1. Fiedler’s Contingency Model2. Hursey and blanchard’s situational

model3. Path-Goal Model

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POWER ORIENTATIONPower Orientation approach of

leadership styles is based on the degree of authority which a leader uses in influencing the behaviour of his subordinates. Based on the degree of use of power, there are three leadership styles:-

1. Autocratic Leadership2. Participative Leadership3. Free-Rein Leadership

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AUTOCRATIC LEADERSHIPAutocrative leadership is also known

as authoritarian, directive, or monothetic style. In autocrative leadership style, a manager centralises decision making power in himself. He structures the complete situation for his employees and they do what they are told. Here the Leadership may be negative because followers are uninformed, insecure, and afraid of the leader’s authority. There are three categories of autocrative leadership:-

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1. Strict Autocrat:- He follows autocratic styles in a very strict sense. His method of influencing subordinates behaviour is through negative motivation, that is, by criticising subordinates, imposing penalty etc.

2. Benevolent Autocrat:- He also centralises decision-making power in him, but his motivation style is positive. He can be getting efficiency in many situations. Some people like to work under strong authority structure and they derive satisfaction by this leadership.

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3. Incompetent Autocrat:- Sometimes superiors may adopt autocratic leadership style just to hide their incompetence because in other styles, they may be exposed before their subordinates. However, this cannot be used for a long time.

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ADVANTAGES OF AUTOCRATIC STYLES

1. Workers get satisfaction.2. Mangers provide strong motivation

and reward to the workers.3. Quick decisions as many decisions

are made by only one person.4. Less competent subordinates also

have scope to work in the organisation under this leadership style as they do negligible planning, organising and decision making.

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LIMITATIONS OF AUTOCRATIC LEADERSHIP

1. People in the organisation dislike it specially when it is strict and the motivational style is negative.

2. Employees lack motivation as frustration, low morale and conflict develop in the organisation affects the organisational efficiency.

3. There is more dependence and less individuality in the organisation. As such, future leaders in the organisation do not develop.

Considering the organisational efficiency and satisfaction, autocratc style generally is not suitable.

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PARTICIPATIVE LEADERSHIPThis style is also known as

democratic, consultative, or ideographic. A participation is defined as mental and emotional involvement of a person in a group situation which encourages him to contribute to group goals and share responsibility in them. The process emerges from the suggestions and ideas on which decisions are based . The participation may be real.

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ADVANTAGES OF PARTICIPATIVE MANAGEMENT

1. Highly motivating technique to employees.

2. Employees productivity is high.3. They share the responsibility with

the superiors and try to safeguard him also.

4. It provides organisational stability by raising morale and attitudes of employees high and favourable.

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LIMITATIONS OF PARTICIPATIVE LEADERSHIP

1. Complex nature of organisation requires a thorough understanding of its problems which lower level employees may not be able to do. As such, participation does not remain meaningful.

2. Some people in the organisation want minimum interaction with their superiors or associates. For them, participation technique is discouraging instead of encouraging.

3. Participation can be used covertly to manipulate employees.

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FREE REINIt means giving complete freedom to

subordinates. In this style, manager once determines policy, programmes and limitations for action then the entire process is left to subordinates. Group members perform everything and the manager usually maintains contacts with outside persons to bring the information and materials which the group needs.

This type of style is suitable to certain where the manager can leave a choice to his group. This helps subordinates to develop independent personality. However, the contribution of manager is nil. Hence, this style is used very rare in business organisations.

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LEADERSHIP AS A CONTINUUMThere are a variety of styles of

leadership behaviour between two extremes of autocratic and free rein. TANNENBAUM and SCHMIDT have depicted a broad range of styles on a continuum moving from authoritarian leadership behaviour at one end to free-rein behaviour at the other end.

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USE OF AUTHORITY BYMANAGER

AREA OF FREEDOM FOR SUBORDINATES

AUTOCRATIC (BOSS-CENTRED LEADERSHIP)

FREE-REIN(SUBORDINATE-CENTREDLEADERSHIP)

MANAGER MAKESDECISIONS ANDANNOUNCES

MANAGER SELLSDECISIONS

MANAGER PRESENTSIDEAS AND INVITESSUGGESTIONS

MANAGER PRESENTSTENTATIVE DECISIONSUBJECT TO CHANGE

MANAGER PRESENTSPROBLEMS, GETSSUGGESTIONS ANDMAKES DECISIONS

MANAGER DEFINESLIMITS, ASKS GROUP TO MAKE DECISION

MANAGER PERMITS SUBORDINATES TO Fn WITHIN LIMITSDEFINED BYSUPERIORS

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However, neither extreme is absolute and authority and freedom are never without their limitations. Thus, a question is pertinent: at which point along the continuum, should a manager adopt his behaviour? In fact, there is no readymade answer, but it depends upon three factors:-

1. Forces in manager, that is, his value system, his confidence in his subordinates, his own leadership inclinations, and his feeling of security in an uncertain situation.

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2. Forces in subordinates, that is, their need for independence, readiness to assume responsibility for decision making, level of tolerance for ambiguity, understanding and identifying organisational goals, interest in the problem, knowledge and experience to deal with the problems, and learning to expect share in decision making.

3. Forces in the situation, that is, type of organisational, group effectiveness, the problem itself and the pressure of time.

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“The successful manager of men can be primarily characterised neither as a strong leader nor as a permissive one. Rather, he is one who maintains a high batting average in accurately assessing the forces that determine what his more appropriate behaviour at any given time should be and in actually being able to behave accordingly. Being both insightful and flexible, he is less likely to see the problem of leadership as a dilemma.”

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EMPLOYEE-PRODUCTION ORIENTATIONIn the studies of the Survey Research

Centre at the University of Michigan, USA, an attempt was made to study the leadersip behaviour by locating clusters of characteristics that seemed to be related to each other and various indicators of effectiveness. The studies identifies the two concepts which were called

Employee-orientation:- it stresses the relationship aspects of employees jobs.

Production-orientation:- it emphasis on production and technical aspects of jobs and

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Employees are taken as tools for accomplishing the jobs. This study identified two dimensions i.e.

initiating structure considerationInitiating structure refers to the leader’s

behaviour in delineating the relationship between himself and members of the work group.

Consideration refers to the behaviour indicative of friendship, mutual trust, respect and warmth in the relationship between the leader and the members of his staff.

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HIGH CONSIDERATION

AND LOW STRUCTURE

HIGH STRUCTURE ANDHIGH CONSIDERATION

LOW STRUCTURE ANDLOW CONSIDERATION

HIGH STRUCTURE ANDLOW CONSIDERATION

THE OHIO STATE LEADERSHIP QUADRANTS

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LIKERT’S MANAGEMENT SYSTEM

Rensis Likert and his associates of University of Michigan, USA, have studied the patterns and styles of managers for three decades and have developed certain concepts and approaches important to understanding leadership behaviour. Likert’s four systems of management in terms of leadership styles may be referred as:-

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LEADERSHIPVARIABLE

SYSTEM I SYSTEM II SYTEM III SYSTEM IV

Trust and confi-Dence in subor--dinates.

Has no trust And confidenCe in subordi--nates.

Has condenscend--ing confidence And trust in subor--dinates, such asMaster has in a Servant.

Substantial but Not complete Confidence andTrust still wishesTo keep controlOf decisions.

Complete confi--dence and Trust In all matters.

SubordinatesFeeling of Freedom.

SubordinatesDo not feel atAll free do Discuss thingsAbout the jobWith their sup--erior.

Subordinates doNot feel very freeTo discuss things About the job withTheir superiors.

Subordinates Feel rather free to discuss thingsAbout the job With theirSuperiors.

SubordinatesFeel completeLy free to discUss things About their jobWith theirSuperiors.

Superior see--king involveMent withSubordinates.

Seldom gets Ideas and Opinions ofSubordinates inSolving job Problems.

Sometimes getIdeas andOpinions andUsually tries toMake constructiveUse of them.

Usually getsIdeas andOpinions andUsually tries toMake constructive Use of them.

Always getsIdeas and OpinionsAnd always Tries to makeConstructiveUse of them.

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Likert has also isolated three variable which are representative of the total concept of system 4. These are:-

(i)The use of supportative relationsip by managers.

(ii)The use of group decision making and group methods of supervision.

(iii)The high performance goals.

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MANAGERIAL GRID:It is developed by Blake and Mouton. They

emphasis that leadership style consists of factors of both task-oriented and relation-oriented behaviour. Their “concern for” phrase has been used to convey how managers are concerned for people or production, rather than ‘how much’ production getting out of group. Concern for production shows the attitude of superiors such as quality of decisions, procedures and processes, creativeness of research, quality of staff services etc. concern for people includes degree of personal commitment toward goal achievement, maintaining the self esteem of workers responsibility based on trust, and satisfying interpersonal relations.

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ConcernForpeople

HIGH

9 8 7 6 5 4 3 2 1

LOW

1,9(COUNTRYCLUB)

9,9(TEAM)

1,1(IMPOVER--ISHED)

9,1(TASK)

5,5(MIDDLEROAD)

LOW 1 2 3 4 5 6 7 8 9 HIGH

CONCERN FOR PRODUCTION

THE MANAGERIAL GRID

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BLAKE AND MOUTON have described the five styles as follows:-

1,1. Exertion of min. effort is required to get work done and sustain organisational morale.

1,9. Thoughtful attention to needs of people leads to a friendly and comfortable organisational atmosphere and work tempo.

9,9. Work accomplished is from commited people with interdependence through a common stake in organisational purpose with trust and respect.

9,1. Efficiency results from arranging work in such a way that human elements have little effect.

5,5. Adequate performance through balance of work requirements and maintaining satisfactory morale.

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TRIDIMENSIONAL GRID:-Reddin said a three dimensional grid also

known as 3-D management, borrowing some of the ideas from managerial grid. Its axis represents task-orientation, relation-orientation, and effectiveness.

TO is defined as the extent to which a manager directs his subordinates efforts towards goal attainment.

RO is defined as the extent to which a manager has personal relationships.

Either degree of TO or RO, or a combination of both, is used by leaders. On this basis, basically there are four styles

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RELATED INTEGRATED

SEPERATED DEDICATED

HIGH

LOW

LOW HIGH

RELATIONSHIP-ORIENTATION

TASK AND RELATIONSHIP ORIENTATION

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MORE EFFECTIVE STYLES

DEVELOPER EXECUTIVE

BUREAUCRATIC BENEVOLENTAUTOCRAT

BASIC STYLES

RELATED INTEGRATED

SEPERATED DEDICATEDRO

TOLESS EFFECTIVE STYLES

MISSIONERY COMPROMISER

DESERTER AUTOCRAT

MORE EFFECTIVE

LESS EFFECTIVE

TRIDIMENSIONAL GRID

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BASIC STYLE LESS EFFECTIVE STYLE MORE EFFECTIVE STYLE

INTEGRATED

DEDICATED

RELATED

SEPARATED

COMPROMISER

AUTOCRAT

MISSIONARY

DESERTER

EXECUTIVE

BENEVOLENT AUTO--CRATDEVELOPER

BUREAUCRAT

MORE AND LESS EFFECTIVE STYLES

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FIEDLER’S CONTINGENCY MODEL:-Fiedler along his associates made an attempt

to identify the situational variables and their relationship along with appropriateness of leadership styles. Fiedler’s model consists of three elements: leadership styles, situational variables, and their interrelationship.

LEADERSHIP STYLESIt is based on two dimentions i.e. TASK

DIRECTED (concerned with the achievement of task performance) and HUMAN RELATIONS-ORIENTED (concerned with the achieving good interpersonal relations)

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SITUATIONAL VARIABLESFiedler has identified three critical

dimensions of situation which effect a leader’s most effective style. These are leader’s position power, task structure, and leader-member relations

LEADER-MEMBERRELATIONS

TASK STRUCTURE

POSITION POWER

GOOD

HIGH LOW

STRONG WEAK STRONG WEAK

POOR

HIGH LOW

STRONG WEAK STRONG WEAK

CELLS 1 2 3 4 5 6 7 8

VERYFAVOURABLE

VERYUNFAVOURABLE

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INTERRELATIONSHIPRELATIONSHIP BETWEEN STYLE AND

SITUATIONFielder feels that the effectiveness of

leadership style depends on the situation. FOR EXAMPLE:- he says that

“The group performance will be contingent upon the appropriate matching of leadership style and the degree of favourableness of the group situation for the leader, that is, the degree to which the situation provides opportunities to the leader to influence his group members”

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STYLE OFLEADERSHIP

TASK DIRECTED

HUMANRELATIONS

O

VERY +FAVOURABLE

- VERYUNFAVOURABLEFAVOURABLE UNFAVO-

-RABLE

0

FIEDLER MODEL OF LEADERSHIP

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PATH-GOAL MODEL OF LEADERSHIP:-It is initially represented by EVANS. It was

presented in 1957. It is basically a combination of situational leadership and VROOM’S theory of motivation.

According to this model the main function of a leader is to clarify and set goals with subordinates, to help them to find the best path for achieving the goals, and to remove the obstacles to their performance and need satisfaction.

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LEADERSHIP IDENTIFIESSUBORDINATES NEEDS

APPROPRIATE GOALSARE ESTABLISHED

LEADER CONNECTSREWARDS WITH GOALS

LEADER PROVIDESASSISTANCE ONEMPLOYEE PATHTOWARDS GOALS

EMPLOYEESBECOMES SATISFIEDAND ACCEPTSTHE LEADER

EFFECTIVEPERFORMANCEOCCURS

BOTH EMPLOYEEANDORGANISAT-ION AREBETTER ABLETO REACHTHE GOALS

PATH GOAL LEADERSHIP PROCESS

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THANKYOU


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