GOOD MORNINGSubmitted By:Vikram Pal MBA

LEADERSHIPLeadership 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.

FEATURES OF LEADERSHIPLeadership 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.

IMPORTANCE OF LEADERSHIP AS INFLUENCE PROCESSLeadership is an important factor for making any type of organisations successful. It helps in:Motivating Employees Creating Confidence Building Morale

LEADERSHIP THEORIESVarious theories of leadership are:Charismatic Leadership Theory Trait Theory Behavioural Theory Situational Theory

Charismatic Leadership Theory This theory is also known as Great Man Theory. It is based on a principle a leader is born and is notmade.

A leader has some charisma which acts as influencer. Charisma is a God gifted attribute in a person whichmakes him a leader irrespective of the situations in which he works.

Charismatic leaders are those who inspire followersand have a major impact on their organizations through their personal vision and energy.

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 cant be enhanced through education and training. These qualities make a leader effective and situational factors dont have any influence.

Trait TheoryThe 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.

1. Innate traitsInnate 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

2. Acquirable traitsAcquirable 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 doesnt permit himself to get emotionally involved to the extent that he finds it difficult to make an objective diagnosis and implement the action required.

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.

Behavioural TheoryBehavioural theory emphasises that strong leadership is the result of effective role behaviour. Leadership is shown by a persons acts more than by his traits. Researchers exploring leadership role come to the conclusion that to operate effectively, group needs to perform two functions: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. Group Maintenance Function:- It is also known as social functions, relates to action of mediating disputes and ensuring that individuals feel valued by groups.

(i) (ii)

For performing these two functions successfully two different type of leaders 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.

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 (Leaders behaviour) and the factor associated with the situation(Situational factors).

Factors affecting leadership effectivenessLeaders characterstics Leaders Hierarchichal position

Leaders behaviour

Leadership effectiveness

Group performance

SITUATIONAL

FACTORS

Subordinates characterstics

Leaders situation

Group factors

Organisational factors

Leaders BehaviourLeaders behaviour is further affected by two variables:Leaders 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. Leaders Hierarchical Position:-Leaders 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.

Situational FactorsThe 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. Leaders Situation:-The variables which determine the leaders situation are: (i)Leaders position power:-It helps in influencing others. High position power simplifies the leaders task of influencing others, while low position power makes the leaders task more difficult. (ii)Leaders 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.

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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LEADERSHIP STYLESLeadership 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

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 Orientation 2. Leadership As A Continuum 3. Employee-Production Orientation 4. Likerts Management System 5. Managerial Grid 6. Tri-Dimension Grid

BASED ON SITUATIONAL APPROACH:1. 2.

3.

Fiedlers Contingency Model Hursey and blanchards situational model Path-Goal Model

POWER ORIENTATION Power 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 Leadership 2. Participative Leadership 3. Free-Rein Leadership

AUTOCRATIC LEADERSHIP Autocrative 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 leaders authority. There are three categories of autocrative leadership:-

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.

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.

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.

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.

PARTICIPATIVE LEADERSHIP This 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.

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.

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.

FREE REIN It 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.

LEADERSHIP AS A CONTINUUM There 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.

AUTOCRATIC (BOSS-CENTRED LEADERSHIP) USE OF AUTHORITY BY MANAGER

FREE-REIN (SUBORDINATECENTRED LEADERSHIP)

AREA OF FREEDOM FOR SUBORDINATES

MANAGER PRESENTS MANAGER PER MITS SUBORD MANAGER PRESENTS PROBLEMS, GETS MANAGER MAKES IDEAS AND INVITES SUGGESTIONS AND INATES TO Fn DECISIONS AND SUGGESTIONS WITHIN LIMITS MAKES DECISIONS ANNOUNCES DEFINED BY MANAGER PRESENTS SUPERIORS TENTATIVE DECISION MANAGER DEFINES MANAGER SELLS SUBJECT TO CHANGE LIMITS, ASKS DECISIONS GROUP TO MAKE DECISION

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.

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.

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.

EMPLOYEE-PRODUCTION ORIENTATION In 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

Employees are taken as tools for accomplishing the jobs. This study identified two dimensions i.e. initiating structure consideration Initiating structure refers to the leaders 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.

HIGH CONSIDERATION AND LOW STRUCTURE LOW STRUCTURE AND LOW CONSIDERATION

HIGH STRUCTURE AND HIGH CONSIDERATION HIGH STRUCTURE AND LOW CONSIDERATION

THE OHIO STATE LEADERSHIP QUADRANTS

LIKERTS 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. Likerts four systems of management in terms of leadership styles may be referred as:-

LEADERSHIP SYSTEM I SYSTEM II SYTEM III SYSTEM IV VARIABLE Trust and confi-Has no trust Has condenscendSubstantial but Complete confiDence in subor-And confiden -ing confidence Not complete -dence and -dinates. Ce in subordi-And trust in suborConfidence andTrust In all -nates. -dinates, such as Trust still wishes matters. Master has in a To keep control Servant. Of decisions. Subordinates Feeling of Freedom.

Subordinates Subordinates do Subordinates Subordinates Do not feel at Not feel very freeFeel rather free Feel complete All free do To discuss thingsto discuss things free to disc Ly Discuss things About the job with About the job Uss things About the job Their superiors. With their About their job With their supSuperiors. With their -erior. Superiors. Seldom gets Ideas and Opinions of Subordinates Solving job Problems.

Superior see-king involve Ment with Subordinates.

Sometimes get Usually gets Always gets Ideas and Ideas and Ideas and Opinions and Opinions and Opinions Usually tries to Usually tries to And always in Make constructive Make constructive Tries to make Use of them. Use of them. Constructive Use of them.

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.

MANAGERIAL GRID: It is developed by Blake and Mouton. They emphasis that leadership style consists of factors of both taskoriented 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.

HIGH 9 8 7 6 5 4 3 2 1 LOW

1,9 (COUNTRY CLUB) 5,5 (MIDDLE ROAD)

9,9 (TEAM)

Concer n For people

1,1 (IMPOVER-ISHED) 1 2 3 4 5 6 7 8

9,1 (TASK) 9 HIGH

LOW

CONCERN FOR PRODUCTION

THE MANAGERIAL GRID

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.

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, relationorientation, 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

HIGH RELATIONSHIPORIENTATION

RELATED SEPERATED LOW

INTEGRATED DEDICATED HIGH

LOW

TASK AND RELATIONSHIP ORIENTATION

MORE EFFECTIVE STYLES DEVELOPER EXECUTIVE BUREAUCRATIC BENEVOLENT AUTOCRAT

LESS EFFECTIVE RO

BASIC STYLES RELATED SEPERATED INTEGRATED DEDICATED TO

LESS EFFECTIVE STYLES MISSIONERY DESERTER COMPROMISER AUTOCRAT MORE EFFECTIVE

TRIDIMENSIONAL GRID

BASIC STYLE INTEGRATED DEDICATED RELATED SEPARATED

LESS EFFECTIVE STYLE COMPROMISER AUTOCRAT MISSIONARY DESERTER

MORE EFFECTIVE STYLE EXECUTIVE BENEVOLENT AUTO-CRAT DEVELOPER BUREAUCRAT

MORE AND LESS EFFECTIVE STYLES

FIEDLERS CONTINGENCY MODEL:Fiedler along his associates made an attempt to identify the situational variables and their relationship along with appropriateness of leadership styles. Fiedlers model consists of three elements: leadership styles, situational variables, and their interrelationship. LEADERSHIP STYLES It is based on two dimentions i.e. TASK DIRECTED (concerned with the achievement of task performance) and HUMAN RELATIONSORIENTED (concerned with the achieving good interpersonal relations)

SITUATIONAL VARIABLES Fiedler has identified three critical dimensions of situation which effect a leaders most effective style. These are leaders position power, task structure, and leader-member relationsLEADER-MEMBER RELATIONS GOOD POOR HIGH LOW HIGH LOW

TASK STRUCTURE

POSITION POWER

STRONG WEAK STRONG WEAK STRONG WEAK STRONG WEAK 2 3 4 5 6 7 VERY UNFAVOURAB 8

CELLS 1 VERY FAVOURABLE

INTERRELATIONSHIP RELATIONSHIP BETWEEN STYLE AND SITUATION Fielder 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

STYLE OF LEADERSHIP

TASK DIRECTED

O

HUMAN RELATIONS VERY + FAVOURABLE

FAVOURABLE 0

- VERY UNFAVO-UNFAVOURABLE -RABLE

FIEDLER MODEL OF LEADERSHIP

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 VROOMS 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.

LEADERSHIP IDENTIFIES SUBORDINATES NEEDS

APPROPRIATE GOALS ARE ESTABLISHED

LEADER CONNECTS REWARDS WITH GOALS

LEADER PROVIDES ASSISTANCE ON EMPLOYEE PATH TOWARDS GOALS

EMPLOYEES BECOMES SATISFIED AND ACCEPTS THE LEADER

EFFECTIVE PERFORMANCE OCCURS

BOTH EMPLOYEE AND ORGANISAT ION ARE BETTER ABLE TO REACH THE GOALS

PATH GOAL LEADERSHIP PROCESS

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