LEADERSHIP

INTRODUCTION : Leadership has originated and formed from the

verb ‘to lead’ means to provide direction. A person who directs, shows the path, motivates,

initiates is a leader. Successful managers should try to create a desire

to achieve goals, recognition, flexibility, and should instill a sense of co-operation.

If managers provide effective leadership, then employees are motivated, inspired and get the proper guidance.

Managers should themselves provide good leadership and it is very essential.

DEFINITION : “Leadership is an activity of controlling the

voluntary efforts of people achieving corresponding objectives.”

- Dr. George R. Terry “Leadership is such a behaviour through

which others are motivated to work.”- La Payere and Franceworth

“Leadership is an act influencing people so that they will strive willingly towards achievement of goals.”

- Koontz and O’Donnell

MEANING :

Continuous process stimulating others.

Includes leaders and subordinates An effort to direct and stimulate the

behaviour and efforts of employees and subordinates.

Interpersonal relations has to be used as a means of communication.

It is an objective to achieve the goals of an enterprise.

NATURE OF LEADERSHIP :o Desired result not possible without a

competant leader.o Leadership is required at economic,

commercial, social or national activities.o It is an art.o Without leadership qualities a manager will

not be able to reach the height of success.o As per Koontz and O’Donnell, “Every

manager should be a leader, every leader be a manager is not necessary”.

o Management is an art of doing things through the efforts of others.

o A competant leader is able to create a sense of unity and co-operation between groups.

o A leader is a part of the group but still he has a better status and recognition.

o Various meanings of leadership such as :• Focal point of any group activity• Stimulus for discipline• Providing direction• Tool for achieving desired goals• Tool for authority and power• Element of interpersonal behaviour, etc.

o “Leadership results from the qualities that are within a leader”.

o The qualities may be present when a person is born, but they can certainly be created.

o Leadership qualities can be acquired through training and competencies.

o The use of leadership qualities is always done in context with a group.

FUNCTIONS OF LEADERSHIP - LEADER1) Instructions2) Fulfillment of objectives3) Security4) Representative5) Motivator6) Recognition7) Problem Solver

LEADERSHIP STYLE :

A.Autocratic leadership :

- Leader doesnot give freedom to employees.- Gives orders and instructions- They have to be strictly deallt with- According to this style, it is believed that employees are unable to do work on their own.- This style becomes more necessary in case of untrained, uneducated and illiterate employees. This style is divided into three categories :

(1)Centralization of Authority :- Total authority retained by leader.- Subordinates are not given any power.- For untrained and illiterate employees.- Limitation : Leader has to face work overload.- Unable to concentrate on important decisions due to workload.- Labour turnover rate increases here.

(2) Lay stress on orders only :- Orders are issued to subordinates to get the work done.- Educated employees not interested and uneducated employees get bored of such orders.- No enthusiasm towards work.- When employees are not interested to take up any responsibility this technique is useful.- Detailed instructions given to perform work.- Employees cannot use their own creativity and skills.

(3) Main strict supervision :- It is one of the policies.- Where employees are uneducated, untrained, etc. such kind of leadership is suitable.- But if employed and trained than results don’t provide fruitful.

Benefits :i. Employees accustomed to receive

directions and orders can accept this style.

ii. Self motivates manageriii. Speedy decisions takeniv. No planning, organizing, so they can

concentrate on work

Demerits :i. Not favoured by employeesii. Employees get depressed and inactiveiii. Reduces morale and enthusiasmiv. No opinions and advicev. Misuse of power

When is this style useful ? Strict policy and regulations have to be

considered Emplopyees are uneducated, untrained

and irresponsible Emergency or critical situation Work has to be undertaken from less

efficient employees Employees are demotivated and

dissatisfied

B. Democratic Leadership approach :o Employees efforts are co-ordinated

with each other.o Their views and suggestions are

considered.o Through formal and informal

meetings, employees suggestions are taken into account.

o Formal meeting notice is given, whereas in informal meeting are called without any notice.

Benefits : Importance given to employees Productivity and efficiency increased Work harder Morale and enthusiasm increases

Demerits : If managers not able to use effectively

than this method donot show good benefits.

Sometimes employees themselves not interested to take decisions as they are confused.

Lack of co-ordination

Under which situation this style is useful ? When employees are trained and

educated and they have logical reasoning to understand situations.

To take routine decisions Confident employees to take decisions

C. Free Reign Style of Leadership : Interference of top management is as

minimum as possible. Maximum freedom given to employees. Top managers only supervise. General guidelines provided wherever

necessary. Final decision taken by employee. Here employees should be trained and

educated, and should understand situations properly than only this method proves good.

The leader believes to create suitable environment to achieve goals.

Employees inner strength is developed.

Managers show trust and confidence in employees

But at times employees may also take wrong decision.

This style suitable for educated and well trained employees.

Benefits : Develops hidden talents of people Employees administrative skills are

developed Less interference of work is done of

employees

Demerits : Employees may take wrong decisions Lack of co-ordination Employees are sometimes confused to

take wrong decisions.

When is this approach benefitial ? Where employees have good knowledge Routine decisions are to be taken Employees are confident to take

decisions

Essential Qualities required in a LEADER :I. EnergyII. Emotional stabilityIII. Knowledge of human relationsIV. InterestV. Knowledge of communicationVI. Good teaching skillVII.Technical competenceVIII.Social competence

Required qualities in a leader :

Physical qualities

Psychological Qualities

Social Qualities Behavioural Qualities

Other Qualities

1) Physical Qualities :Healthy, Good appearance (Face, Physiqye, Appearance), Good and sweet voice.

2) Psychological Qualities :Self confidence, Efficient, Vision, Intellect, Competence, Skills, Patience.

3) Social Qualities :Communication, Interpersonal effectiveness, Presentation skills, Honesty, Humility, Co-operation, Popularity.

4) Behavioural Qualities :Interest, Honesty, Commitment,

Dedication, Creativity, Expectation.

5) Other Qualities :Education, Training, Leadership

Experiences.

There were 163 types of researches regarding leadership qualities conducted in America.

Till 1904 to 1947, 124 leadership surveys have been undertaken and given importance.

On that basis peculiar characteristics of leadership has been evolved :

1. Itellect 17. Decision making skills2. Education 18. Physical Height3. To participate in Social Activities

19. Technical competence

4. Self confidence 20. Strategic competence5. Acceptance of responsibility 21. Achievement motivation6. Social status 22. Physical weight7. Competence of interpersonal relations

23. Stable decisions

8. Good voice 24. Firm commitment9. Good physical appearance 25. Dedication10. Liability to complete responsibility

26. Humility

11. Co-operation 27. Force12. Knowledge 28. Honesty13. Impact 29. Mobility14. Recognition and Praise 30. Communication Ability15. Efficiency 31. Teaching skills16. Age

Leadership Continuum :

Under Autocratic leadership, all the power is kept by leader himself. He is task oriented and does not give importance to employees.

In the democratic style, employees are kept at the centre. Human relations are given much more importance.

In reality, manager adopts both the styles in different situations.

When centralization of authority reduces, then subordinates independency and freedom is increased.

1 2 3 4 5 6 7 8 9Autocratic leader People centred leader

Use of power among subordinates

Tannen Baum :o Researches conducted by Tannen

Baum and Schmidt is of much importance.

o Development opportunities can be created for employees and he have considered social changes to improve quality of decisions.

o 2 sides of the group : Left side – Authoritative leadership and Right side – Democratic leadership.

o 7 parts portraying 7 types of leadership are as under :

1. Leader takes decisions and presents it – Employees have to implement it.

2. Leader takes decisions and employees accept it, efforts are undertaken.

3. Leader presents his views in front of employees and invites querries. Possibilities of discussions.

4. Leader tries to present possible solutions or decisions. There is possibility of taking decisions.

5. Leader presents problems in front of Employees, gets querries and than take decisions

6. Leader entrust the employees to take decisions, but also explains the constraints.

7. Leader asks the employees to freely take decisions.Decisions are taken independently, so that it becomes effective in long run.Employees personal development takes place.In democratic leadership it becomes easy to accept goals in groups. Leadership qualities are developed in subordinates. More time is spent in taking decisions. Leader should be patient to take decisions. Leader should be effective in providing leadership skills.

Theories of Leadership

Fiedler’s contingency model leadership and its effectiveness principle.

The base of leader’s effectiveness, as per this model is : System or type of leadership Favourability of condition

1) System of leadership :- Here there are two types of leaders : Task oriented Relationship oriented- Task oriented leaders pay more importance

to the task rather than people.- Relationship oriented leaders believe in

maintaining healthy relations with their subordinates.

- Fiedler has developed a numerical table of “Least preferred co-worker” (LPC)

- LPC are those employees with whom the leader experiences most difficulty to work.

- Certain tests are used :

Intelligent ………… DullEfficient ………... InefficientCo-Operate ………… Non Co-

operative Interested …………

Disinterested If a leader adopts a positive attitude

towards subordinates, LPC rate would be high and vice versa.

If LPC ranking Is high, it denotes relationship centered leader and if low, task oriented.

2) Favourability of Situation :• Within 3 variables a leader has to

work :- Leader-member relations- Work-structure- Position-Authority

(i) Leader-member relations :• It is determined in which manner the

leader is accepted or rejected.• If co-operation between them, orders

are carried out properly and as per leaders desires.

(ii) Work-structure :- In a highly structured task leader’s ability to influence the group is restricted because task dilutes leaders ability and potential influence.- In an unstructured task, the leader has great potential to influence group as he has more knowledge than the followers.

(iii) Leader position power :- Power to have n fire, status symbols, power to give promotions, etc.

Condition / SituationAttitude 1 2 3 4 5 6 7 8Leader-member relations

Good Good Good Good

bad bad bad bad

Task structure

high high low low High high Low low

Position power

strong

weak strong

weak

strong

weak

strong weak

1,2,3 = favourable situation 4,5 = general favourability 6,7,8 = adverse situation Task structure is favourable in highly

favourable situation and highly unfavourable situations, In general conditions, relationship-based leader are good.

Evaluation :

More clear Derived this model after scientific

researches Depends on various situations This model is useful to select the

leader Related with different situations with

leadership system This model tells us that leadership is

based on situation

Criticisms :

Measuring rod quite confusing and unreliable. No direct relationship between combinations and style.

Fails to explain favourable and unfavourable situations.

Complex model based on small samples.

Table of LPC is unclear.

LIKERT’S SYSTEM OF MANAGEMENT The professor of Chicago University, Rensis Likert

has given the system of management. Important ideas have evolved related to the

leader’s behavior in his research. Likert is a pioneer of participative form of

management. In his research of effective leaders, he has noted

that : “Effective leaders adopted a humanly approach towards their subordinates and they were able to motivate and direct the efforts of their subordinates successfully.”

The following are the 4 management systems adopted by likert :

1) System – 1 : o System 1 is called “Exploitative

Authoritative form of management”.o Such leaders donot have any trust in

their subordinates.o They get their work done forcefully

through punishments and subordinates fear leaders.

o They believe in formal communication and they themselves take decisions.

2) System – 2 :o Such style is called “Benevolent

Authoritative”.o Such leaders are authoritative but still

they behave humanly with subordinates.o They trust their subordinates and try to

motivate them.o Try to know views of subordinates and

encourage participation in decision making process.

o But keep all the authority with themselves.

3) System – 3 :o This style is called “Consultative

leadership”.o They trust their subordinates.o They encourage and apply the ideas and

creativity of their subordinates.o They believe in motivation.o Communication is in the form of

dialogue.o The top order decisions are centralized

only the routine decisions are decentralized.

4) System – 4 :o This style is known as “Participative

style”.o Total trust and confidence is shown on

subordinates.o Their views and suggestions are given

importance.o Informal communication is encouraged.o Subordinates are made to participate in

decision making.o They work with subordinates in groups,

as they believe in group effort.

Likert’s research stated that managers adopted system-4 in their work practice.

System-4 is helpful to achieve the goals effectively.

It encourages participation and unity. Efforts are focussed over here.

IMPORTANCE OF LEADERSHIP An important organ of direction. Provides motivation. Directs activities of group. He creates unity, co-ordination and dedication among

his group members. Provides confidence, strength, will-power in his

subordinates. Helps to get best results through minimum wastage of

time and energy. A base for effective organization structure. Improves the effectiveness of teams and groups. Effective management of business is not possible

without an effective leader.