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CHAPTER-15

LEADERSHIP

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Introduction

• Success of a business concern is dependent upon the ability of its leadership. Whenever and in whatever situation if someone tries to influence the behavior of another individual, there is a leadership. It helps to attain the business goals of an organization.

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Does water flowing in a distant mountain think about its distance from

the ocean?

The distance between my current position and my desired goals is very big.

But I shall reach my goals.

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Definition

• Leadership is the ability to awaken in others the desire to follow a common objective.

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Importance of LeadershipPerfect Developing good

organization structure human relation

Promoting the spirit Reconciliationof coordination of goals

Directing group Source ofactivities motivation

Technologies economicand social changes Better Avoiding Fulfilling social

utilization of imbalance responsibilitiesmanpower

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Approaches or Theories of Leadership • According to this theory, leadership behaviouris is influenced by

certain qualities of a person. A successful leader has the following qualities.• Good Personality• Tirelessness• Ability to take quick decision• Courage to face competitors• Persuasion• Lesson out of experience • Intelligence• Different thinking• Reliability• Physical fitness

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Behavioral approach or theory

• This theory had popularity during 1950s. It assumes that people are lazy and irresponsible by nature. So there is need of an instrument to give motivation to workers.

• Autocratic, democratic or supervisory styles are some of the leadership styles. Behavioral approach developed these leadership styles which produce different and conflicting results.

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Situationalist approach or theory

• During 1970s this theory was developed where some traits and behaviours are effective in a particular situation and ineffective in another situation. Situation helps persons to develop their leadership qualities and emerge as leaders

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Follower’s theory or acceptance theory

• Here, only followers decide whether a person is a leader or not. Followers take decision on the quality of the leader who fulfills their needs. Traits and behavior are not considered as essential element of leadership. This is mainly applied in politics.

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System theory or a path goal theory

• This is focused on a person’s act rather than his traits or behavior. A leader coordinates the efforts of his followers. This considers all variables like leader, followers, situation, leadership traits, environment goals and group’s nature, characteristics and needs, role behavior of leader. It is also termed as modern theory of leadership.

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Functions of Leader

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LEADER

Integration

Planner Taking initiative

Guide

representation

Rewards and punishments

communication

Encouraging others

Production

Arbitrator and mediator

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Qualities of Leadership

• Physical appearance and strength• mental vigour• emotional stability• sense of judgment• goodwill• motivation• communication skill• guiding ability• sociability• technical knowledge

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Types of Leadership

• Autocratic leader• Intellectual leader• Liberal leader• Democratic leader• Institutional leader• Inducing leader• Paternal leader• Creative leader

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Techniques of Leadership

• Securing cooperation

• the use of power

• coordination

• discipline

• moraleWe Learn – A Continuous Learning Forum

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Characteristics of Leadership

• There must be followers• working relationship between leader and followers• personal quality• reciprocal relationship• community of interests• guidance• related to a particular situation• hard function• power relationship

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Leadership Styles

• Positive style

• Negative style

• Autocratic or authoritarian style

• Democratic style

• Free-rein styleWe Learn – A Continuous Learning Forum

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Positive style

• A leader motivates followers to work hard by offering them rewards like bonus and incentives

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Negative style

• Leader foresees his followers to work hard and penalize them if the work is not up to the standard. This has high human cost. Here everyone tries to shift responsibility over to others.

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Autocratic or authoritarian style

Advantages: • Leadership style provides strong motivation to

followers. • Quick decision is possible. • less talented followers can perform job

effectively• Followers do not take any decision• Decision making planning need no initiative

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Autocratic or authoritarian style

Disadvantages • Most dislike this style as it takes negative motivation

approach.• frustration, low morale and conflict develop easily• New ideas and creative ideas have no scope for

application• followers have no opportunity for development

Suitability: It is suitable to where followers are uneducated and unskilled.

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Democratic style

Advantages • Consultation give satisfaction to the followers• due reorganization is given to the followers• followers are aware of the activities• leader can improve decision making ability• followers get opportunity to show their ability

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Democratic style

Disadvantages • Taking decision and implementation require

more time.• Followers can dominate the leader• leader can easily shift the responsibility to his

followers for failure• it requires communicating skill on part of

leaders otherwise it may ruin the organization

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Free-rein style

Advantages • Morale and job satisfied of the followers are

increased to some extent.

• The talent of the followers is properly utilized.

• The followers get full opportunity to develop their talents.

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Free-rein style

Disadvantage • The leader does not care to motivate his

followers.

• The contribution of a leader is nothing.

• The leader does not support the follower and no guidance is available to the fanner.

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