Unit – 3: Leadership

By RadhikaFaculty of Commerce and Management

JHBWC

What is Leadership?

Introduction Integral Part of work as well as Social Life

Leader is required to do any kind of work

Weather it is formal or informal, leader influences people to work towards common goals.

People have to be guided with Zeal and confidence

Meaning Leadership is a process by which a person influences others to

accomplish an objective and directs the organization more to make it more cohesive and coherent.

It is the ability to build confidence and zeal among people and create an urge in them to be led.

In corporate terms, leadership is the process by which an executive imaginatively directs, guides & influences the work of others in choosing attaining specified goals by mediating between individuals and the organization in such a manner that both obtain maximum benefit.

Definition 1. Leadership is an activity controlling the voluntary efforts of

people achieving corresponding objectives.-George R Terry

2. Leadership is an activity of skillful effort to be induced to achieve the general goals.

-Livingston

3. Leadership is an activity of influencing people so that they will strive willingly towards achievement of group goals.

-Koontz & O’Donnel

Nature of Leadership1. Depends upon personal traits2. It is situational3. Leadership vs. management4. It is function5. Role model6. Leaders are also followers7. Pervasive function8. It aims at goal achievement

Leadership StylesOn The Basis Of Rewards1. Positive Leaders2. Negative Leaders

On The Basis Of Power1. Autocratic Leaders2. Participative Leaders [Democratic]

Cont. On The Basis Of Rewards1. Positive Leaders Motivate their employees through rewards

2. Negative Leaders They use penalties and punishment s as means of motivation

NO LEADER CAN BE FULLY POSITIVE OR NEGATIVE

Cont. On The Basis Of Power1. Autocratic Leaders: Make decisions and issue orders by virtue of authority &

position Hold authority & responsibility Can use both positive & negative motivation When he wants how he wants what he wants Bossing people

2. Participative Leaders [Democratic] Involvement of employees in decision making Employees will respect instead of felt threat Mutual benefit

Trait theories• Trait theories: this theory was described by Kelly 1974. it was an

attempt to classify what personal characteristics such as physical, mental and relating to personality are associated with the success of leadership.

• Is there a set of characteristics that determine a good leader?– Personality?– Charisma?– Self confidence?– Achievement?– Ability to formulate a clear vision?

cont…• According to this theory, there are certain personal qualities &

traits which are essential to be a successful leader.• Psychologically better, good judgments and involve in social

activities. • Share more n more information.• This theory believes that leadership traits are inherited and

cannot be learned.

Behavioural Theory• The limitations of Trait Theory led to a significant change in the

leadership approach.• In this theory full focus is on the actual behavior and actions of

leaders instead of their personal qualities.• This theory emphasis on what the leaders do and how they behave

to become effective leaders.• According to trait theory leadership is inherited but according to

behavior theory leadership can be learned.• Several attempts have been made to identify the dimensions of

leader behavior. The most systematic and comprehensive studies in this direction were conducted in USA at Ohio State University and University of Michigan during 1945-47.

Fiedler’s Contingency Model of Leadership

• After a long and painstaking research Fiedler argued that effectiveness of leadership depends on the combination of a leader’s personality and the situation in which he functions. Situational variables are described by Fiedler in terms of following three dimensions:

1. Leader Member Relationship: the extent to which the leader is accepted, respected and trusted by members of his work group.

2. Task Structure: the extent to which the jobs of members of the work group are defined and known.

3. Position Power: the extent of formal authority commanded by the leader and also the rewards and penalties he can dispense to members.

Hersey & Blanchard’s Situational Theory

• This model is developed by Paul Hersey & Ken Blanchard. This theory has been used by nearly 500 companies. It has been widely accepted in all the military services.

• This theory focuses on the followers. Successful leadership is achieved by selecting the right leadership style, which is contingent on the level of followers readiness or maturity.

• Situational leadership uses the same two leadership dimensions that Fiedler identified: Task and relationship behavior.

• However Hersey & Balanchard go a step further by considering each as either high or low and then combining them into 4 specific leader behaviors; telling, selling, participating, delegating.

Contd…1. Telling (high-task-low relationship): the leader defines roles

and tells people what, how, when, and where to do various tasks. It emphasizes direct behavior.

2. Selling (high-task high relationship): the leader provides both supportive as well as directive behavior.

3. Participating (low-task-high relationship): the leader and follower share in decision making, with the main role of the leader being facilitating and communicating.

4. Delegating (low-task-low relationship): the leader provides little direction and support.

Contd…The final component in Hersey & Balanchard’s theory is defining

4 stages of follower readiness:1. R1: people are both unable and unwilling to take

responsibility to do something. They are neither competent nor confident.

2. R2: people are unable but willing to do the necessary job tasks. They are motivated but currently lack the apropriate skills.

3. R3: people are able but unwilling to do what the leader wnts.4. R4: people are both able and willing to do what is asked of

them.

Hersey & Blanchard's Situational Model

(High)

(Low)

Rel

atio

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p B

ehav

iorHigh Relationship & low task

High task &High Relationship

Low Relationship & low task

Low Relationship & High task(S

uppo

rtiv

e B

ehav

ior)

Task Behavior(Directive Behavior)

(High)

Mature Immature

High LowModerates

R4 R3 R2 R1

Managerial Grid• This theory is propounded by Robert R. black & Jane S. Mouton.• Managerial Grid is a graphic model of alternative combinations

of managerial styles or behaviors on a 2 dimensional space.• The 2 styles are :

1. concern for people2. concern for production

• According to this theory, leaders are most effective when they achieve a high & balanced concerned for people and for task.

• These are shown on vertical and horizontal dimensions of the Grid on a 1 to 9 scale or degree.

Managerial Grid Diagram1,9 9,9

5,5

1,1 9,1

987654321

1 2 3 4 5 6 7 8 9

Concern for Production

Con

cern

fo

r P

eopl

e

Contd…Although there can be 81 possible combinations (9*9), but for

illustrative purposes they have identified 5 combinations of styles. These are as follows:

• Impoverished leadership: 1,1 low concern for production as well as for people.

• Country club leadership: 1,9 low concern for production and high concern for people.

• Task leadership : 9,1 high concern for production and low concern for people.

• Middle of the row leadership: 5,5 moderate concern for production and people.

• Team Leadership: 9,9 high concern for production and people.

Likert’s Management Systems

• Rensis Likert of Michigan University USA and his associates made extensive research on management and leadership patterns in a large number of organizations.

• Likert evolved 4 models of management as systems of management. His system are:system 1 : Exploitative – authoritativesystem 2 : Benevolent – authoritativesystem 3 : Consultativesystem 4 : Participative – Democratic

• Likert found that most individual managers and organization fit into one or the other of his systems in terms of certain operating characteristics as goal setting, decision making, motivation, leadership, communication and control.